Annexes to COM(2023)637 - Harmonised requirements in the internal market on transparency of interest representation carried out on behalf of third countries

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dossier COM(2023)637 - Harmonised requirements in the internal market on transparency of interest representation carried out on behalf of third ...
document COM(2023)637
date December 12, 2023
Annex 6 of the Impact Assessment accompanying this proposal (SWD(2023) 663 final).

2See accompanying Impact Assessment.

3OECD (2021), Lobbying in the 21st Century: Transparency, Integrity and Access, OECD Publishing, Paris, https://doi.org/10.1787/c6d8eff8-en, page 43.

4The term ‘foreign interference’ is used to differentiate influencing activities that are integral to diplomatic relations from foreign interference, that is, activities that are carried out by, or on behalf of, a foreign state-level actor, which are coercive, covert, deceptive, or corrupting and are contrary to the sovereignty, values, and interests of the Union.

5OECD (2021), Lobbying in the 21st Century: Transparency, Integrity and Access, OECD Publishing, Paris, https://doi.org/10.1787/c6d8eff8-en, page 44.

6OECD (2021), Lobbying in the 21st Century: Transparency, Integrity and Access, OECD Publishing, Paris, https://doi.org/10.1787/c6d8eff8-en, page 45.

7See Flash Eurobarometer 528 on Citizenship and Democracy.

8Since 2019, the European Parliament established two Special Committees INGE and INGE2 on foreign interference in all democratic processes in the European Union, including disinformation, and the strengthening of integrity, transparency and accountability in the European Parliament that adopted resolutions in this area. See European Parliament resolution of 9 March 2022 on foreign interference in all democratic processes in the European Union, including disinformation (2020/2268(INI)), European Parliament resolution of 13 July 2023 on recommendations for reform of European Parliament’s rules on transparency, integrity, accountability and anti-corruption (2023/2034(INI)), European Parliament resolution of 1 June 2023 on foreign interference in all democratic processes in the European Union, including disinformation (2022/2075(INI)).

9Council Conclusions “Complementary efforts to enhance resilience and counter hybrid threats”, 10 December 2019, 14972/19; Council Conclusion “Global approach to Research and Innovation - Europe's strategy for international cooperation in a changing world”, 28 September 2021, 12301/21; Council Conclusions “on Foreign Information Manipulation and Interference (FIMI)”, 18 July 2022, 11173/22.

10The Union consistently condemns any undue limitation on fundamental freedoms and restrictions on civic and political space in violation of international human rights law, including so-called ‘foreign agent laws’. See, for example, ‘Russia: Declaration by the High Representative on behalf of the EU on the 10th anniversary of the introduction of the Law on Foreign Agents’ available at: https://www.consilium.europa.eu/en/press/press-releases/2022/07/20/russia-declaration-by-the-high-representative-on-behalf-of-the-eu-on-the-10th-anniversary-of-the-introduction-of-the-law-on-foreign-agents/, ‘Georgia: Statement by the High Representative on the adoption of the Georgian “foreign influence” law’ available at: https://www.eeas.europa.eu/eeas/georgia-statement-high-representative-adoption-%E2%80%9Cforeign-influence%E2%80%9D-law_en, and ‘EU in BiH on recent developments in the RS’ available at: https://www.eeas.europa.eu/delegations/bosnia-and-herzegovina/eu-bih-recent-developments-rs_en?s=219

11Proposal for a Regulation of the European Parliament and of the Council on the transparency and targeting of political advertising (COM(2021) 731 final).

12Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EU (Digital Services Act) (OJ L 277, 27.10.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2065/oj).

13Proposal for a Regulation of the European Parliament and of the Council of 16 September 2022 establishing a common framework for media services in the internal market (European Media Freedom Act) and amending Directive 2010/13/EU (COM(2022) 457 final).

14Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive) (OJ L 95, 15.4.2010, p. 1, ELI: http://data.europa.eu/eli/dir/2010/13/oj).

15Regulation (EU, Euratom) No 1141/2014 of the European Parliament and of the Council of 22 October 2014 on the statute and funding of European political parties and European political foundations (OJ L 317, 4.11.2014, p. 1, ELI: http://data.europa.eu/eli/reg/2014/1141/oj).

16https://commission.europa.eu/strategy-and-policy/policies/justice-and-fundamental-rights/upholding-rule-law/rule-law/rule-law-mechanism_en

17In the 2022 Rule of Law Report, further recommendations on lobbying concerned DE, EE, IE, FR, HR, IT, LV, LU, HU, NL and PL.

18Further recommendations related to lobbying concern DE, CZ, DK, DE, IE, ES, FR, HR, IT, LV, LU, HU, NL, AT, PL, RO and SK.

19Proposal for a Directive on combating corruption, replacing Council Framework Decision 2003/568/JHA and the Convention on the fight against corruption involving officials of the European Communities or officials of Member States of the European Union and amending Directive (EU) 2017/1371 of the European Parliament and of the Council (COM(2023) 234 final).

20 https://commission.europa.eu/document/aa3bc4a8-50b7-425a-a81c-e7360e01a24d_en

21 https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/new-push-european-democracy/european-democracy-action-plan_en

22 https://ec.europa.eu/commission/presscorner/detail/en/speech_22_5493

23COM(2023) 630 final, C(2023) 8626 final and C(2023) 8627 final.

24Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (OJ L 305, 26.11.2019, p. 17, ELI: http://data.europa.eu/eli/dir/2019/1937/oj).

25Proposal for a Directive of the European Parliament and of the Council on European cross-border associations (COM(2023)516 final), which addresses the fragmentation of national rules for associations and non-profit organisations across the Union and facilitate their activities across borders in the internal market.

26Regulation (EU) 2022/2560 of the European Parliament and of the Council of 14 December 2022 on foreign subsidies distorting the internal market (OJ L 330, 23.12.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2560/oj), which aims to establish a harmonised framework to address distortions of competition on the internal market caused, directly or indirectly, by foreign subsidies.

27Regulation (EU) 2019/452 establishing a framework for the screening of foreign direct investments into the Union (OJ L 79I, 21.3.2019, p. 1, ELI: http://data.europa.eu/eli/reg/2019/452/oj) provides an Union framework for the screening of direct investments from third countries on the grounds of security or public order.

28Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 amending Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU, as regards corporate sustainability reporting (OJ L 322, 16.12.2022, p. 15, ELI: http://data.europa.eu/eli/dir/2022/2464/oj). It applies to all Limited Liability Companies (LLC) which are not SMEs as defined by the accounting directive, and all LLC companies listed on a regulated market (including listed SMEs) but excluding micro-enterprises.

1See judgement of 16 February 2022, Hungary v European Parliament and Council, Case C-156/21, ECLI:EU:C:2022:97, where the Court ruled that the European Union must be able to defend its values within the limits of its powers as laid down by the Treaties.

2See also judgment of 10 December 2002, British American Tobacco (Investments) and Imperial Tobacco, C-491/01, ECLI:EU:C:2002:741, paragraph 75.

1The study will be made available under https://commission.europa.eu/strategy-and-policy/policies/justice-and-fundamental-rights/eu-citizenship/democracy-and-electoral-rights/studies_en

2 https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/13744-Transparency-of-covert-interference-by-third-countries_en.

3Flash Eurobarometer 522 on Democracy.

4Flash Eurobarometer 528 on Citizenship and Democracy.

5See Accompanying Impact Assessment.

6European Parliament resolution of 9 March 2022 on foreign interference in all democratic processes in the European Union, including disinformation (2020/2268(INI)).

7 See, for example, Council Conclusions of 10 December 2019 on complementary efforts to enhance resilience and counter hybrid threats (14972/19), Council Conclusions of 28 September 2021 on the Global approach to Research and Innovation ‒ Europe’s strategy for international cooperation in a changing world (12301/21), Council Conclusions of 18 July 2022 on Foreign Information Manipulation and Interference (FIMI) (11429/22) and Council Conclusions 10 March 2023 on the application of the EU Charter of Fundamental Rights; The role of the civic space in protecting and promoting fundamental rights in the EU (7388/23).

8Such as the OECD Principles for Transparency and Integrity in Lobbying, or the Council of Europe’s Recommendation of the Committee of Ministers to member States on the legal regulation of lobbying activities in the context of public decision making, CM/Rec(2017)2.

9SWD(2023) 663 final.

10SEC(2023) 637.

11See, to that effect, judgments of 20 May 2003, Österreichischer Rundfunk and Others, C‑465/00, C‑138/01 and C‑139/01, EU:C:2003:294, paragraphs 73 to 75 and 87 to 89; of 9 November 2010, Volker und Markus Schecke and Eifert, C‑92/09 and C‑93/09, EU:C:2010:662, paragraphs 56 to 58 and 64; and of 2 October 2018, Ministerio Fiscal, C‑207/16, EU:C:2018:788, paragraphs 48 and 51).

12Judgment of the Court of Justice of 22 November 2022, Luxembourg Business Registers, joined cases C-37/20 and C-601/20, EU:C:2022:912, paragraphs 42 to 44.

13Judgment of 22 November 2022, Luxembourg Business Registers, joined cases C-37/20 and C-601/2, EU:C:2022:912, paragraphs 45-63 and the case-law cited.

14As stated by the Venice Commission, “lobbying activities fall (…) in between the political party activities and ordinary NGO activities. (…) The public has a clear interest in knowing the lobbying actors who have access to government decision making process for the purpose of influence, including their financial sources whether domestic or foreign”. Venice Commission Report on Funding of Associations CDL-AD(2019)002, paragraph 105.

15See by analogy judgment of 18 June 2020, Commission v Hungary (Transparency of associations), C-78/18, EU:C:2020:476, paragraph 79.

16Judgment of 18 June 2020, Commission v Hungary (Transparency of associations), C-78/18, EU:C:2020:476, paragraph 112.

17Judgment of 18 June 2020, Commission v Hungary (Transparency of associations), C-78/18, EU:C:2020:476, paragraph 114.

18Venice Commission Report on Funding of Associations CDL-AD(2019)002, paragraph 147.

19Judgment of 18 June 2020, Commission v Hungary (Transparency of associations), C-78/18, EU:C:2020:476, paragraph 79.

20Venice Commission Report on Funding of Associations CDL-AD(2019)002, paragraph 105.

21 An anti-circumvention clause is included in the proposal to avoid abuses (for example covert remuneration for a representation service, the setting up of companies with a view to obfuscating links to third country governments, or the artificial distribution of activities across multiple entities with a view to falling short of the thresholds established by the Directive).

22Upon registration, these entities would only be required to provide their registration number in their contacts with public officials, not the wider public.

23During the registration the precise amount would not be requested. Concerned entities would have to indicate in which bracket (e.g.: EUR 25 000 to <50 000; or EUR 50 000 to <100 000) the annual amount would fall. Information on the annual amounts declared would be made public using wider brackets, corresponding to the level of detail necessary for the purpose of informing citizens, their representatives and other interested parties.

24Bonn Declaration on Freedom of Scientific Research of 20 October 2020.

25Judgment of the Court of Justice of 22 January 2013, Sky Österreich GmbH v Österreichischer Rundfunk, C-283/11, EU:C:2013:28, paragraph 46.

1Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (OJ L 305, 26.11.2019, p. 17, ELI: http://data.europa.eu/eli/dir/2019/1937/oj).

2OJ C […], […], p. […].

3OJ C […], […], p. […].

4Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EU (Digital Services Act) (OJ L 277, 27.10.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2065/oj).

5 Regulation (EU) XXXX/XXXX of the European Parliament and of the Council of XXXX establishing a common framework for media services in the internal market (European Media Freedom Act) and amending Directive 2010/13/EU (OJ L XX, XX.XX.XXXX, p. XX, ELI: XXX).

6Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive) (OJ L 95, 15.4.2010, p. 1, ELI: http://data.europa.eu/eli/dir/2010/13/oj).

7Regulation (EU) 2018/1724 of the European Parliament and of the Council of 2 October 2018 establishing a single digital gateway to provide access to information, to procedures and to assistance and problem-solving services and amending Regulation (EU) No 1024/2012 (OJ L 295, 21.11.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1724/oj)

8Regulation (EU) No 1024/2012 of the European Parliament and of the Council of 25 October 2012 on administrative cooperation through the Internal Market Information System and repealing Commission Decision 2008/49/EC (‘the IMI Regulation’) (OJ L 316, 14.11.2012, p. 1, ELI: http://data.europa.eu/eli/reg/2012/1024/oj).

9Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (OJ L 305, 26.11.2019, p. 17, ELI: http://data.europa.eu/eli/dir/2019/1937/oj).

10OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj

11Directive (EU) 2013/34 of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 17, ELI: http://data.europa.eu/eli/dir/2013/34/oj).

12Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1, ELI: http://data.europa.eu/eli/reg/2016/679/oj).

13Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39, ELI: http://data.europa.eu/eli/reg/2018/1725/oj).

14Regulation (EU) 2022/2560 of the European Parliament and of the Council of 14 December 2022 on foreign subsidies distorting the internal market (OJ L 330, 23.12.2022, p. 1, ELI: http://data.europa.eu/eli/reg/2022/2560/oj).

15OJ C 369, 17.12.2011, p. 14.

16XXXX.

17Regulation (EEC, Euratom, ECSC) No 259/68 of the Council of 29 February 1968 laying down the Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Communities and instituting special measures temporarily applicable to officials of the Commission (OJ L 56, 4.3.1968, p. 1, ELI: http://data.europa.eu/eli/reg/1968/259(1)/oj).

18Agreement on the European Economic Area (OJ L 1, 3.1.1994, p. 3, ELI: http://data.europa.eu/eli/agree_internation/1994/1/oj).

0As referred to in Article 58(2)(a) or (b) of the Financial Regulation.

0Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.

0EFTA: European Free Trade Association.

0Candidate countries and, where applicable, potential candidates from the Western Balkans.

0The proposed actions will be financed within the envelopes allocated to the relevant spending programme for the period 2021-2027 and will not require any additional financial resources from the Union budget.

0Future financial implications of this initiative for the years post 2027 are without prejudice to the MFF after 2027.

0Technical and/or administrative assistance and expenditure in support of the implementation of Union programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

0Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).

0As described in point 1.4.2. ‘Specific objective(s)…’

0Technical and/or administrative assistance and expenditure in support of the implementation of Union programmes and/or actions (former ‘BA’ lines), indirect research, direct research.

0Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).

0Year N is the year in which implementation of the proposal/initiative starts. Please replace "N" by the expected first year of implementation (for instance: 2021). The same for the following years.

0As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20 % for collection costs.

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