MOONLIGHTING IN BRUSSELS SIDE JOBS AND ETHICS CONCERNS AT THE EUROPEAN PARLIAMENT Transparency International EU is part of the global anti-corruption movement, Transparency International, which includes over 100 chapters around the world. Since 2008, TI EU has functioned as a regional office of the global movement and closely works with the International Secretariat in Berlin, Germany. Transparency International EU leads the movement’s EU-focussed advocacy, in close cooperation with national chapters worldwide, but particularly with the 24 chapters in EU member states. Transparency International EU’s mission is to prevent and address corruption and promote integrity, transparency and accountability in the EU institutions and in EU internal and external policies, programmes and legislation. Authors: Daniel Freund, Head of Advocacy EU integrity Raphaël Kergueno, Policy Officer EU integrity Photo credits in order of appearance: Cover photo: Shutterstock Page 4: Public Domain Page 6: European Parliament / Pietro-Naj Oleari 2016 Page 10: European Union 2016 Page 14: Thomas Hawk 2014 Disclaimer: Every effort has been made to verify the accuracy of the information contained in this report. All information was believed to be correct as of 3 July 2018. Nevertheless, Transparency International cannot accept responsibility for the consequences of its use for other purposes or in other contexts. The latest information is available on EU Integrity Watch (www.integritywatch.eu) and in the declarations of financial interests of Members on the website of the European Parliament. Funding: EU Integrity Watch was first launched in October 2014 by Transparency International EU. The project is supported by a grant from the Foundation Open Society Institute in cooperation with the Open Society Initiative for Europe (OSIFE), with a contribution by the King Baudouin Foundation (KBF). This publication reflects the views only of the authors. Funders cannot be held responsible for any use, which may be made of the information contained therein. KEY FIGURES 18-41 million € Total outside income of Members of the European Parliament (MEP) during the current legislature (since July 2014) 31% 8,484 € MEPs with Monthly base salary of MEPs, paid side jobs not including other allowances. 9-30 24 MEPs with higher outside MEPs that have breached the Code incomes than their MEPEMBARGO salary of Conduct in the past 5 years 1,366 0 Total side activities MEPs that have ever been declared by MEPs sanctioned for ethics violations 1 EXECUTIVE SUMMARY Moonlighting a common practice interests. Three MEPs currently hold paid positions in organisations on the EU lobby register. Viviane “Moonlighting” – the practice of having a second Reding is a board member for the Bertelsmann job – is relatively common among politicians Foundation, Agnes Jongerius is on the supervisory in democracies. This also holds true for the board of PostNL and Paul Rübig holds a position European Parliament. 60% of the members have with the Austrian Chamber of Commerce (WKÖ), declared outside activities that can include regular representing the interests of Austrian businesses. employment, board memberships or other political Such roles may not involve lobbying their colleagues mandates. In total, the 751 MEPs have declared in the European Parliament, but the MEPs 1,366 activities, a 13% increase from the beginning of concerned should make it clear that this is the case, the mandate. 31% of MEPs now have paid side jobs. especially in view of the explicit ban on lobbying activities in the European Parliament’s Code of To gain a better overview of what members of Conduct. parliament are doing outside of their legislative and parliamentary activity, Transparency International 49 MEPs have started new activities since the EU has analysed over 2,000 declarations of financial beginning of the mandate, four of them earning interest to find out. The results provide a detailed more than 100,000 EUR extra per year. Activities picture of what outside activities sitting MEPs have started during the mandate can have higher risk had been engaged in since their election in 2014. of conflict of interests as these are potentially directly linked to an MEP’s activity in the Parliament. High incomes are particularly worrying when the Second job and conflicts descriptions of the activities in the declarations of interests are limited to “consultant”, “lawyer” or “freelancer”. The lack of detail makes it impossible for citizens, The common justification for second jobs is that journalists or civil society to monitor these activities they allow elected officials to stay in touch with their for potential conflicts of interests. profession and to return to a previous job when they leave office. Others say it allows them to keep links to the realities of their electorate1. Participation in Ethics risks with large outside unremunerated activities, by sitting on boards for incomes example, can be beneficial for maintaining close links with the society. But having an outside job By calculating the incomes declared by MEPs on top of a full-time activity as an elected member since they took office in July 2014, our research of parliament can also create conflicts of interests shows that MEPs have earned a total of 18 to 41 or prevent MEPs from devoting sufficient time and million EUR from side jobs. MEPs can only declare attention to their roles as elected representatives. monthly gross income in broad ranges, leading to a strong disparity between the lower and upper This is not an automatic consequence. Not all range of our calculations. 35 MEPs have earned paid outside activities lead to conflicts of interest. over 100,000 EUR on top of their official salaries However, activities that generate large amounts as MEPs. Between 9 and 30 MEPs have earned of income, or are conducted with registered more money from outside jobs than from the lobby organisations, or have started during the compensation that MEPs receive from the taxpayer. term in office present a greater risk of conflict of The monthly base salary of MEPs is 8,484 EUR, but 2 most MEPs receive between 10,000 and 12,000 sanctions. Only in one case has there been a EUR per month after taxes and expenses when reprimand2. Repeatedly, members have been found including allowances. not to declare activities, gifts over a certain value3 or invitations to events. MEPs have for example failed to declare trips paid by foreign government Moonlighting in the political organised under the guise of so-called friendship groups groups, as well as trips financed by the Azerbaijani government to observe the Presidential elections Our analysis shows that all political groups in of 20134. Both Presidents of the current legislature, the European Parliament are affected by MEPS Martin Schulz and his successor Antonio Tajani, engaged in outside activities. There is however a have consistently opted not to sanction violations strong disparity between the groups in terms of of the Code, despite the Advisory Committee the average income declared by MEPs and the having substantiated numerous breaches. When share of MEPs declaring outside income within revelations are made in the media or through the their respective groups. Outside incomes are, for investigations of watchdog organisations, members example, particularly high among members of the are simply invited to submit an updated declaration. Europe of Nations and Freedom (ENF), which has This situation, of course, gives little to no incentive the highest share of its members (54%) declaring to provide accurate declarations in the first place. paid activities. This system seems particularly weak in comparison to the ethics regimes in Canada, the US or France. Lessons from history In the United States for example, members of Congress are not allowed to have paid outside Outside incomes can potentially be used to activities in professions where there is a risk for channel payments to members in return for insider conflict of interests (banks, consultants, lawyers information or legislative action. They can also be used for illicit campaign or party funding. In 2011 etc…) and they cannot receive payments for three MEPs were caught by undercover journalists speeches or board memberships. Any outside accepting payments to table amendments. The income that exceeds 15% of their salary is paid into practice of moonlighting in the European Parliament the US federal budget. In France, an independent has been regulated since the so-called “cash-for- authority monitors ethics violations with far-reaching amendments” scandal in 2011. To prevent such investigative powers including, for example, access scandals in the future, the European Parliament to tax declarations. introduced a Code of Conduct designed to govern, among others, the practice of MEPs engaging in outside activities. The objective was to disclose Key recommendations any potential conflicts of interests that might In order to strengthen the ethics system in arise between outside activities and their work the European Parliament ahead of the 2019 as MEPs and to prevent them from receiving any European elections, Transparency International EU advantage in exchange for their activities as elected recommends to swiftly: representatives. 33enforce a ban on lobbying activities for sitting Weak ethics oversight MEPs 33improve the information that is provided in the Despite the ethics infrastructure that has been put declarations, including on clients and topic areas in place with the Code