At the heart of the Defence of the democracy package adopted by the Commission on the 12 December 2023 is the proposal for a directive on transparency of interest representation on behalf of third countries.

Covert foreign interference is recognized as a serious problem by 81 % of EU citizens according to a recent Eurobarometer survey.  Interest representation activities are increasingly used by third country governments alongside formal diplomatic channels to promote their policy objectives. Commission's proposal brings forward harmonised rules for a high level of transparency across the EU in relation to lobbying campaigns performed by entities on behalf of a third country government, when carried out in the internal market. 

The proposal is build along four chapters. Chapter I sets out general provisions, including the scope of the proposed directive, and the key definitions. Chapter II lays down the provisions on the transparency and registration obligations applicable to interest representation activities carried out on behalf of third country entities. Chapter III sets out rules on supervision and enforcement. Chapter IV contains the rules on the delegated acts, as well as the framework on the review of the proposed directive, and the provisions regarding the transposition and entry into force of the proposal.

The proposal foresees the following transparency requirements: 

Entities carrying out interest representation activities on behalf of a third country would have to register in a transparency register, with the exception of activities connected with the exercise of official authority, such as diplomatic or consular relations . Key elements of the data on such lobbying activities (annual amounts received, the third countries concerned and the main goals of the activities) will be publicly available.

Member States should set up a national registry for ensuring the transparency of such interest representation activities, and should mandate for the registration at the latest at the moment when such representations would start. Annex I to the proposal defines the information to be registered: a) a set of general information such as the name, address and  legal status of the entity, b) a set of information on the representation activities carried out, including the identification of the third Country on whose behalf such activities are conducted, the annual amounts covering all the relevant tasks carried out.

Following the registration, the entity would receive a European interest representation number and a digital copy of the information included in the digital register.

Records on main activities should be kept for a period of four years after the end of this activity. In order to avoid registration requirements being misused to limit fundamental rights, such as the freedoms of expression or of association, the proposal includes proportionate rules and safeguards.

On 25 January 2024, in the European Parliament the file was referred to IMCO committee as the committee responsible, with  BUDG, and JURI, appointed to deliver an opinion. 

The EESC adopted an opinion on the defence of democracy package, which includes the proposed directive, on 25 April 2024, during its plenary session of April 2024. Christian Moos (Civil Society Organisations – GR III, Germany) has been appointed rapporteur. The opinion supports the proposal' objectives but not the obligations included. It considers in particular the definition of interest representation activities to be too complex to be handled by individuals or small and business enterprises. It considers also that the proposal would not ensure the right harmonisation of the national obligations already in force or currently under examination. 

On 25 June 2024, Member States have discussed the proposal during the General Affairs Council. Whilst supporting the objective of the proposed directive, they have stressed the need to provide a set of definitions underpinned by objective criteria, as well as strong safeguards to fundamental freedoms. 

On 30 September 2024, the IMCO committee discussed the analysis of the proposed directive prepared  by the Policy Department for Economic, Scientific and Quality of Life Policies. 

The file was identified among the unfinished business, which examination should continue, according rule 250 of the Parliament rules of procedure. On 18 October 2024, Adina Ioana Vălean was appointed rapporteur (IMCO).

On 6 December 2024, COREPER II has discussed the state of play of the proposal examination. 

On 28 January 2025, IMCO coordinators are expected to discuss and agree on a indicative calendar for the examination of the proposal. 

References:

• EP Legislative Observatory, Procedure file on Establishing harmonised requirements in the internal market on transparency of interest representation carried out on behalf of third countries, 2023/0463(COD)
• European Parliament, Analysis of the proposal for a directive on transparency of third-country interest representation, 2024
• Council of the EU, General Affairs Council - meeting of 25 June 2024, 2024
• European Economic and Social Committee, defence of democracy package, 2024
• European Commission, Proposal for a Directive of the European Parliament and the Council establishing harmonised requirements in the internal market on transparency of interest representation carried out on behalf of third countries and amending Directive (EU) 2019/1937, COM(2023) 637 final, 12 December 2023
• Council of the EU, 'Defence of European Democracy’ legislative package - Policy debate, 19 January 2024

Author: Clément Evroux, Members' Research Service, legislative-train@europarl.europa.eu