Changes from report parliamentary committee draft to plenary report

Foreign influence in EU decision-making has increasingly become a subject of concern. A 2023 Eurobarometer found that 81% of Europeans worry about foreign actors influencing democratic processes. Numerous cases of demonstrated foreign interference have created the need for clearer rules and higher transparency regarding interest representation activities conducted on behalf of third countries.

While this draft report does not in any way aim to discourage any legitimate representation activities, it introduces more harmonised transparency standards across Member States. Given the fragmented national approaches—where some Member States have established robust transparency registers while others lack any framework—the intention of the report is to create a standard, ensuring legal certainty and a level playing field for all entities engaging in interest representation.

This Directive is not a restriction on interest representation activities but a transparency measure designed to increase accountability, reduce regulatory arbitrage, and enhance trust in public decision-making processes.

The Rapporteur recognises the need for a clear and harmonised framework to enhance transparency in interest representation services carried out on behalf of third countries, while ensuring that obligations remain proportionate and do not impose unnecessary administrative burdens. The draft report introduces a unified definition of such activities, aiming to create legal certainty across the EU. This definition is designed to ensure that only relevant activities—those involving the provision of information, knowledge, or expertise with the aim of influencing policy, legislative, or public decision-making—fall within its scope. The rapporteur emphasizes that this approach prevents overreach and safeguards legitimate professional and diplomatic activities, such as legal representation and media reporting, which remain outside the directive’s scope.

The current regulatory fragmentation, in which some Member States have strict registration requirements, while others have voluntary systems or no specific framework, results in an uneven playing field. The Rapporteur supports the introduction of minimum harmonisation in this context, ensuring that transparency obligations apply uniformly when it comes to interest representation carried out on behalf of third countries, while allowing Member States to maintain existing national registers where they meet the Directive’s requirements. This balanced approach upholds regulatory consistency without forcing Member States with well-established transparency frameworks to lower their standards.

The draft report further introduces a central access point for national transparency registers, facilitating public access to relevant information while avoiding duplicative administrative procedures. Many Member States currently maintain multiple registers at different levels of governance, making access to information complex and fragmented. The Rapporteur considers the interconnection of national registers through an EU-level public access system to be a pragmatic solution that enhances transparency while preserving national autonomy. This measure ensures that transparency mechanisms serve their intended purpose rather than becoming bureaucratic obstacles for both public authorities and regulated entities.

The Rapporteur supports reducing unnecessary administrative burdens, particularly for small and medium-sized enterprises (SMEs). Compliance costs must remain proportionate to the objectives of transparency, and reporting obligations should be streamlined. The draft report ensures that entities are not required to disclose unrelated funding sources or duplicate reporting obligations already covered under other regulatory frameworks. By applying the "once-only" principle, the directive minimizes administrative complexity, allowing for efficient data reuse while maintaining the integrity of transparency requirements.

Addressing concerns regarding the potential stigmatization of entities engaging in interest representation services on behalf of third countries was of outmost importance for the Rapporteur. Transparency must not lead to undue reputational risks, nor should it be misused to undermine legitimate activities. The rapporteur underlines the importance of ensuring that supervisory authorities have the necessary expertise to assess compliance with this Directive fairly and impartially. The draft report includes safeguards to prevent discriminatory application and to ensure that the requirement to register does not create automatic suspicion regarding the nature of the activities conducted.

In terms of enforcement, the Rapporteur acknowledges the need for effective yet flexible sanctions. The draft report allows Member States to determine appropriate sanctions, ensuring that penalties are proportionate to the severity of non-compliance while remaining dissuasive. The requirement for prior warnings before imposing sanctions ensures that entities have the opportunity to rectify compliance issues before facing penalties. Additionally, national authorities are given the power to request additional information in cases involving substantial foreign financing, allowing for targeted oversight without creating excessive administrative constraints.

The Rapporteur considers this draft report to be a necessary and balanced step toward enhancing transparency in the internal market while preserving the legitimate role of interest representation services. The draft report intends to ensure that transparency obligations do not become a deterrent to lawful engagement, nor do they hinder the exchange of information and expertise that is fundamental to democratic decision-making. By establishing a uniform but flexible framework, the proposal aims to contribute to greater legal certainty, strengthen public trust in decision-making processes, and ensure that interest representation services on behalf of third countries are conducted in a transparent and accountable manner.