Row flares over EU commission's link with business group

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By Martin Banks
- 23rd October 2008
Yes, we have a close relationship with DG trade – they need us but, equally, we need them. I make no secret of that

Philippe De Buck, director general of Businesseurope, responding to allegations about the organisation's relationship with the commission by Swedish MEP Jens Holm

A furious row has flared over allegations of an “intimate” relationship between the commission’s trade directorate and the organisation representing European SMEs.

It follows claims by a left-wing Swedish MEP of a possible conflict of interest between the influential directorate and Businesseurope. GUE/NGL member Jens Holm sets out his allegations in a letter to new EU trade commissioner Catherine Ashton.

But Philippe De Buck, director general of Businesseurope, hit back on Thursday, telling this website, “What is the problem?

“Yes, we have a close relationship with DG trade – they need us but, equally, we need them. I make no secret of that.

“However, I want to stress that all dealings between my organisation and the commission are done openly, publicly and transparently, and I object to these comments,” said De Buck, formerly the organisation’s secretary general.

The organisation, based in Brussels, represents more than 20 SMEs and has been active in EU affairs since 1958.

In his letter to the commission, Holm, a trade committee member, voices concern about the role De Buck’s organisation has on shaping EU trade policy.

He says, “The EU is fond of speaking about the conditions and priorities of poor countries. But actions speak louder than words. The EU’s current trade policy is clearly contrary to sustainable development, and stresses the commercial interests of big business over the fight against poverty and for fair trade rules.

“A significant part of the reason for this is the presence of Businesseurope and its influence on the setting of EU trade policies.

“The intimate relationship between the trade DG and Businesseurope has long been a cause for concern. But the fact that the collaboration has now advanced and been made more concrete is more than a little worrying.

“It is, in fact, very distressing that Businesseurope is organising the conference ‘Going Global’ on 28 October in the commission’s own premises in Brussels, with the participation of several commissioners.

“This sends dangerous signals to the citizens of Europe at a time when the EU’s legitimacy is already questioned by many with diverse perspectives.”

The MEP urges new EU trade commissioner Cathy Ashton to “treat Businesseurope as the lobbying organisation that it is”.

In his letter, he asks the commission to “remove Businesseurope from your premises at the Charlemagne building. They can afford to rent an office on the local property market.”

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