The European Parliament wants to make it more difficult for financial groups to get advisory contracts from the EU Commission. On Monday, the Budget and Budgetary Control Committees will be over corresponding demands vote in a joint meeting. Since the major political groups have agreed on a compromise, adoption is considered certain. After that, the plenary session of Parliament has to wave through these suggestions for amending the EU’s Financial Regulation.
The background is the displeasure with Blackrock, the largest asset manager in the world. Last year the Commission commissioned the Americans to study how the EU could incorporate green and social goals into banking regulation. Blackrock outpaced eight competitors in the tender, also because the offer was very cheap at 280,000 euros. MEPs attacked the decision because Blackrock holds stakes in many climate-damaging companies and numerous banks. There was a conflict of interest if such an investor advised the Commission on climate-friendly financial regulation, according to the criticism. The EU Ombudsman, Emily O’Reilly, suggested, following an investigation into the case, that the conflict of interest review rules be revised.
In the spring, the Commission announced that it was actually considering such changes. The MEPs now set out in their demands how they envision these adjustments. The parliamentarians demand, among other things, that the concept of conflicts of interest be defined more precisely in the Financial Regulation. Bidders with economic interests in certain policy areas should be able to be excluded from consulting contracts in these areas. In addition, as a matter of principle, no consulting jobs should go to corporations that are also involved in activities that contradict the EU’s climate, environmental and social goals.
One of the initiators of the initiative is the Green MEP Rasmus Andresen. He is “very satisfied” with the cross-party compromise. The demands showed “that there is great dissatisfaction in the European Parliament with the current Financial Regulation”.