Masaryk University Faculty of Economics and Administration Field of Study: European Economy, Administrative and Cultural Studies LOBBYING IN THE EU: THEORETICAL AND PRACTICAL ASPECTS Bachelor Thesis Supervisor: Author: doc. Mgr. Jiří Špalek, Ph.D. Veronika Slezáková Brno 2012 Masarykova univerzita Ekonomicko-správní fakulta Katedra ekonomie Akademický rok 2010/2011 ZADÁNÍ BAKALÁŘSKÉ PRÁCE Pro: SLEZÁKOVÁ Veronika Obor: Evropská hospodářská, správní a kulturní studia Název tématu: LOBBYING IN THE EU: THEORETICAL AND PRACTICAL ASPECTS Zásady pro vypracování Problem Area: In the whole Europe, lobbying has become highly discussed issue, especially because of the very thin border between lobbying and corruption. It is important to emphasize that lobbying itself is not an illegal or anti-social activity. In democratic society, all subjects have the right to be heard even when their interests do not reflect the interests of a broad society. Executing lobbying might be percept as controversial. It is therefore essential to conscientiously examine its ethical foundations and legality. Objective: The objective of this thesis is to examine the European Union and the Czech Republic legislation in the area of lobbying, and to compare lobbying practises in the Czech Republic and a selected EU country. Furthermore, the paper will focus on formulating impacts of lobbying, especially economic ones. Contents: 1) Introduction 2) Theoretical aspects 3) Legislation in the EU and in the Czech Republic and their comparison 4) Case Studies of lobbying in the Czech Republic and a selected EU country 5) Comparison of lobbying practises in the countries chosen and formulation of their economic impacts 6) Conclusion Rozsah grafických prací: (Předpoklad cca 10 tabulek a grafů) Rozsah práce bez příloh: 35 – 40 stran Seznam odborné literatury: Jackson, P. M. - Brown, C. V. Public Sector Economics. 4th ed. Oxford: Blackwell Publishing, 1990. 622 pages. ISBN 0631162089. Mueller, Dennis C. Public choice. III. 1st ed. Cambridge: Cambridge University Press, 2003. 768 pages. ISBN 0-521-89475-1. Van Schendelen, Rinus. Machiavelli in Brussels. The Art of Lobbying the EU. 1st ed. Amsterdam: Amsterdam University Press, 2002. 344 pages. ISBN 90 5356 5795. Worldwide web sources: http://europa.eu http://www.transparency.org/ http://www.vlada.cz/ Vedoucí bakalářské práce: Mgr. Jiří Špalek, Ph.D. Datum zadání bakalářské práce: 22. 11. 2010 Termín odevzdání diplomové práce a vložení do IS je uveden v platném harmonogramu akademického roku. …………………………………… ………………………………………… vedoucí katedry děkan V Brně dne 22.11.2010 Name and Surname: Veronika Slezáková Thesis Title: Lobbbying in the EU: Theoretical and Practical Aspects Thesis Title in Czech language: Lobbing v EU: teorie a praxe Department: Department of Economics Supervisor: doc. Mgr. Jiří Špalek, Ph.D. Year of Submission: 2012 Annotation The bachelor thesis ‘‘Lobbying in the EU: theoretical and practical aspects‘‘ analyses lobbying regulation legislation in the European Union and in the Czech Republic and their comparison. Furthermore, it focuses on the practical aspects of lobbying – case studies of lobbying for solar policy in the Czech Republic and in the United Kingdom. Interest groups, their roles in the legislative processes and used lobbying practices are studied. In the final part, the thesis formulates the impacts of lobbying, especially economic ones. Anotace Bakalářská práce na téma ‘‘Lobbing v EU: teorie a praxe‘‘ analyzuje legislativní regulaci lobbingu v Evropské Unii a v České republice a provádí jejich vzájemnou komparaci. Dále se zaměřuje na praktické aspekty lobbingu – případové studie lobbingu z oblasti solární politiky v České republice a ve Spojeném království. Jsou studovány především zájmové skupiny, jejich role v legislativních procesech a konkrétní pratiky lobbování. V závěrečné kapitole jsou formulovány dopady lobbingu, především ekonomické. Keywords Lobbying, interest group, regulation of lobbying, case study, lobbying practices, solar policy Klíčová slova Lobbing, zájmová skupina, regulace lobbingu, případová studie, praktiky lobbování, solární politika Declaration I declare that I have written this bachelor thesis independently under the supervision of doc. Mgr. Jiří Špalek Ph.D. and I have enlisted all the literal and other references in accordance with the current legislation, internal regulations of Masaryk University and internal managing acts of Masaryk University and the Faculty of Economics and Administration of Masaryk University. In Brno, May 14, 2012 ............................ signature Acknowledgement I would like to thank to the supervisor of the thesis, doc. Mgr. Jiří Špalek Ph.D., for his insightful comments, willingness during consultations and his professional guidance. I also want to express my thanks to my sister for her advice and encouragement. Contents Introduction............................................................................................................................. 10 1 Theoretical Aspects of Lobbying ........................................................................................ 12 1.1 Theory of Interest Groups and Definition of Lobbying ........................................................... 12 1.1.1 Theory of Interest Groups ........................................................................................ 12 1.1.2 Definition of Lobbying ............................................................................................. 13 1.2 Types of Lobbying and Lobbyists.................................................................................................. 15 1.3 Lobbying and Corruption ................................................................................................................. 17 1.5 Ethical Aspects of Lobbying ........................................................................................................... 20 2 Legislation in the EU and in the Czech Republic and their Comparison....................... 25 2.1 Legislation in the European Union ................................................................................................ 25 2.2 Legislation in the Czech Republic ................................................................................................. 26 2.3 Comparison of the European Union and in the Czech Republic Legislation .................... 29 3 Selected Case Studies of Lobbying in the Czech Republic and in the United Kingdom .................................................................................................................................................. 32 3.1 Solar Lobby in the Czech Republic ............................................................................................... 32 3.1.1 Introduction to Solar Policy ..................................................................................... 32 3.1.2 Solar Interest Groups ................................................................................................ 33 3.1.3 Solar Lobby Groups and their Influence on Policy-making ..................................... 35 3.1.4 Solar Lobby in the Czech Republic – Summary ...................................................... 38 3.2 Solar Lobby in the United Kingdom ............................................................................................. 39 3.2.1 Regulation of Lobbying in the United Kingdom ...................................................... 39 3.2.2 Solar Policy in the United Kingdom ........................................................................ 41 3.2.3 Solar Lobby Groups ................................................................................................. 41 3.2.4 Solar Lobby Groups and their Impact on Policy-making ......................................... 43 3.2.5 Solar Lobby in the United Kingdom – Summary ..................................................... 44 4 Comparison of Lobbying Case Studies and their Impacts .............................................. 45 4.1 Lobbying Practices in the UK and in the Czech Republic – Comparison .......................... 45 4.2 Impacts in the Czech Republic ........................................................................................................ 45 4.3 Impacts in the United Kingdom ...................................................................................................... 46 4.4 Summary ................................................................................................................................................ 47 Conclusion ............................................................................................................................... 48 References ................................................................................................................................ 50 List of Charts ........................................................................................................................... 58 List of Abbreviations .............................................................................................................. 59 List of Attachments ................................................................................................................. 59 Introduction In democratic society, lobbying is a natural part of governance. After all, an individual is granted the right to participate at the government of his country by the United Nations Universal Declaration of Human Rights, Article 21. Lobbying can be therefore considered