Lobbying – theory and practice

dr. Ferenc Nyujtó general-director of department MoAR Department of Strategic Issues
Budapest, 2009. August 31,.

Outline
1.Introductory words 2.Lobbying in theory 3.Lobbying by countries 4.Regulation of lobbying in Hungary 5. Features of lobbying practice in Hungary before and after the accession

Preface
• Economist • Research Institute for Agriculture Economics (1973 – 1983) • Assistant to the minister of agriculture (1983 – 1987) • Head of department for agriculture budgetary policy, subsidies, credit policy, statistics, World Bank’s projects (1988 -1999) • Desk officer for the MoARD in Prime-ministerial Office (1999 – 2002) • Chef of the Cabinet to the minister of agriculture (2002 – 2003) • Deputy state secretary, responsible for the EU accession and acting as a member state (2003 – 2006)

self-governments too. .Preface Lobbying is an ancient art. as old as government itself. National government and local governments.

Mother of all parliaments .

The House of Commons .

The Hungarian Parliament .

The Hall of the Plenary Sessions .

it is then mafia. . it is called lobbying activity.I) Introduction (1) A Hungarian saying • If I’m involved. if I am left out.

having parliamentary democracy (1990) • Opening doors to market economy and inviting foreign investments. expertise • Joining the European Union (2004) . capital.Introduction (2) • Hungarian delay in socio-economic development – now we are catching up • Changing the political regime and introducing the democratic institutions.

. We are looking for WHOM not WHAT. too. when we initiate the solution of a task or problem. • This approach is very often CHARACTERISTIC OF the public affairs.Introduction (3) • An average Hungarian first of all looks for a helping hand in the office instead of studying the adequate rules.

when we were ruled by the Habsburgs. • The same old story was going on in the administration of the Habsburg-Monarchy later. bribery (in Turkish “bakshish”) was needed to settle things. • The Austro-Hungarian Monarchy’s government had its weaknesses in this regard.Introduction (4) Historical heritage (1) • Hungary was a part of the Ottoman (Turkish) empire for centuries – presents. . always alliances were needed to shape a regulation in a “proper” way or reach a better political compromise (in extreme cases the lobby activity extended to the so-called national freedom-fightings ).

• In a soviet-block country transparency was not the most important matter. it was the area of politically motivated lobby activity. . industrial lobby for more state-provided investment sources etc. • After the accession to the EU we have to certify the highest level of transparency in compliance with the EU regulations at least in the cases of spending common subsidies. the Hungarian Kingdom between the two world wars lacked full transparency in administration.Introduction (5) Hungarian heritage (2) • Also. like agrar-lobby for more state aid. public procurement rules etc. implementing market regulation. • We arrived in 1990 at the epoch of parliamentary democracy with the highest degree of transparency we had ever had in Hungary.

. This situation necessitates to set up requirements of reshaping our national legal regulation. too.Introduction (6) • Hungary is a member state of the Union and all the rules of the community are in force in our country.

Chapter I. Chapter II.: what is the Hungarian regulation like nowadays. The task was how to regulate it in transparent forms in order to strengthen our democratic institutions. mainly the Anglo-Saxon one.Introduction (7) Great traditions of lobby activity are alive in our society regarding the former information. . considers the Hungarian practice: both in the frame of national regulation before the accession and how we implement the rules now in the EU programmes. I will present this topic in chapter III. tells us about the regulation of the countries’ and the EU regulation and chapter IV. gives us the theory.

. its theory extends for only about two centuries.II) LOBBYING in THEORY Although we know that the severalthousand-year-old social history is about „lobbying”.

. constituents. It includes all attempts to influence legislators and officials.Definition: lobbying is the practice of influencing decisions made by government (in groups or individually).Lobbying in theory (1) By Wikipedia. . the free encyclopaedia . or organized groups. whether by other legislators. Governments often define and regulate organized group lobbying.A lobbyist is a person who tries to influence legislation on behalf of a special interest or a member of a lobby.

what does it mean? By the American Heritage® Dictionary of the English Language. the labor lobby. such as a hotel or theater. Fourth Edition © 2009 by Houghton Mifflin Company 1) A hall. foyer.Lobbying in practice (2 ) • • • • Lobby . or waiting room at or near the entrance to a building. 3) A group of persons engaged in trying to influence legislators or other public officials in favor of a specific cause: the banking lobby. . 2) A public room next to the assembly chamber of a legislative body.

for example): lobbied the bill through Congress. .Lobbying in theory (3 ) • • Lobbying – what does it mean?(Heritage Dictionary) • 1) To try to influence public officials on behalf of or against (proposed legislation. 2) To try to influence (an official) to take a desired action. lobbied the bill to a negative vote.

Lobbying in theory (4) „Friend or Foe? Lobbying in British Democracy” A discussion paper by Philip Parvin Text and graphics © Hansard Society 2007 • It is an important and ground-breaking study in a number of ways .

although as the report indicates their target audiences (politicians and policy makers) view their effectiveness very differently. the report is able to look at the totality of what influences and shapes the political debate and ultimately today’s government policy. the elected politicians and the public affairs industry in one single study. by examining the media. • Secondly. . • Finally. corporate and NGO lobbying today pursue very similar tactics and strategies to achieve them. although their objectives are very different.Lobbying in theory (5) • Firstly it concludes that lobbying is a broad activity and not a narrow one.

2) Public affairs activity is becoming more professionalised. . 3) Ensuring that all those organisations who engage in lobbying do so transparently and ethically is crucial to the future health of our democratic system. but also a COMMERCIAL one.Lobbying in theory (6) The paper demonstrates that: 1) Lobbying is more widespread than it is often assumed to be by its critics and supporters. Organisations not only have an ETHICAL reason to be transparent and open in their dealings.

5) As a result of wider social and political change. but also in its delivery. as well as government policy.Lobbying in theory (7) 4) Although lobbying organisations are. Those which have the greatest success are not necessarily from the sectors that many people expect. . they have varying degrees of success in doing so. lobbying organisations across different sectors are occupying an increasingly central role not only in the development of policy. on the whole. becoming much more professional in their approach to engaging with policy-makers and MPs.

• This sentiment would appear to run deep among many activists and campaigners who have suggested that some of our most basic freedoms and liberties are in jeopardy as a result of big businesses seeking to maximise their profits. • Many see lobbying as antithetical to democracy. because: • Opinions about the legitimacy and usefulness of lobbying are not unanimous. Lobbying in theory (8) . not in the interests of those with the money to buy influence and power. a corruption of the basic democratic principle that government should be in the public interest.• What is against it? The recent report by the Power Commission argues that lobbyists should be forced to disclose their contact with politicians.

1984-1985 / UK 3)Broader frame in supplying information for legislators . and if he considers that his case can be better advanced with professional assistance he has every right to avail himself of that assistance.Lobbying in theory (9) • What is pro? 1)It is surely the case that the power and access the media has to influencing policy is vastly more than that of the whole lobbying industry.” – First Report of Members Interests Committee. 2) „It is the right of any citizen to lobby his Member of Parliament.

Lobbying in theory (10) • Two terms ‘lobbying’ and ‘public affairs’ • Effectively influencing policy-makers requires a wide range of diverse techniques and practices • Lobbyists are keen to emphasise that ‘lobbying’ is only one part of what they do • Effective political communication involves not merely direct contact with MPs. but . ministers. and civil servants.

• raising issues with the press. economic.Lobbying in theory (11) a range of other related activities including • building partnerships with other organisations. • engaging with user-groups. and social developments. • monitoring and predicting political. and so on. • providing political intelligence and strategic advice. . • market research. • mobilising grassroots support. legal. • managing reputations.

lobbying and public affairs activity involves not merely the development of vertical relations between organisations and government. but the fostering of horizontal relationships among all those different groups involved in policy development (including government). . • The term ‘public affairs’ has emerged to capture all these different activities under one profession or label.Lobbying in theory (12) • To put it another way.

Lobbying in theory (13) • Lobbying = implementation of overlapping lobbying techniques which different organisations use to try to influence the political process. . • The rise of single-issue politics has meant that formal political engagement (through the traditional channels of joining associations like political parties and trade unions. and voting in elections) has declined and has been supplanted by newer forms of political activity.

. it seems that they are willing to look to non-governmental organisations (NGOs) and interest groups to represent their views on certain issues within the democratic system.Lobbying in theory (14) The Democratic Context of lobbying • Recent research suggests that people seem less willing to engage in the formal mechanisms of representative politics.

books like Fast Food Nation by Eric Schlosser and No Logo by Naomi Klein. But lobbying and big business are not synonymous. There is some truth in this. and popular polemics rage at government corruption and financial scandal. • Films such as The Corporation. of course: businesses do indeed lobby politicians in order to increase their profits. Supersize Me. and Thank You For Smoking.Lobbying in theory (15) • Lobbying is often seen as the means by which big businesses seek to influence politicians in order to increase their profits. .

and one another in the interests of promoting (or resisting) change. and subject to a great many influences from a diverse range of organisations hoping to shape policy decisions by communicating with Parliament. . This direct or indirect lobbying of policy-makers and other stakeholders is widespread and deeply ingrained in a developed democratic system. government.Lobbying in theory (16) • In a developed country the policy-making process is dynamic. fragmented. Indeed it is symbolic of a healthy pluralist democracy.

Lobbying in theory (17) • Who are lobbyists? What kinds of organisations are in the business of shaping and influencing policy in a country? • companies .corporate lobbying • charities and interest groups • trade unions • trade associations • professional bodies • think tanks • Government • The Media .

trade associations. but a ‘horizontal’ relationship between a range of organisations. interest groups.of Lobbying in theory (18) what public affairs practitioners (whether consultants. Public affairs represents a wide and diverse range of activities. many of which do not involve direct lobbying of government or parliamentarians at all. think tanks. or trade unions) do in the name of raising agendas and issues with decision-makers and other key stakeholders. Consequently. NGOs.‘Lobbying’ is only one part – and a relatively small part . when viewed in this broader way. or working for companies. the ‘lobbying’ process must be viewed not as a top down or ‘vertical’ relationship between external organisations and government. including government. .

III) LOBBYING by COUNTRIES Recent regulations and practice of countries .

or the right of the people peaceably to assemble.abridging the freedom of speech." ... a legitimate activity protected by the First Amendment to the Constitution of the United States of America: "Congress shall make no law. • It is.. and to petition the government for a redress of grievances...Lobbying by countries (1) USA Although lobbying is an ancient art — as old as government itself — it is still frequently viewed with suspicion.. in fact.

• 3) A third story states that the term originated at the Willard Hotel in Washington. • 2) Another version of the story describes the lobby of the Willard Hotel as the meeting site for both legislators and favor-seekers during the early 1800s. where it was used by Ulysses S. although stories of its origin vary. • 1) One account describes "lobby-agents" as the petitioners in the lobby of the New York State Capitol waiting to address legislators. Grant to describe the political wheelers and dealers frequenting the hotel's lobby in order to access Grant. enjoying a cigar and brandy. who was often found there.Lobbying by countries (2) USA The term "lobbyist" came into usage early in the 19th century. (Why?– his wife prohibited him from smoking at home) . DC.

S. Capitol. cigar-smoking men who wine and dine lawmakers while slipping money into their pockets. public interest or environmental groups. either by groups or individuals. • The caricature is as familiar as the name: portly. lobbying is advocacy of a point of view.Lobbying by countries (3) USA • Either way. charities. While most people think of lobbyists only as paid professionals. there are also many independent. churches. though frequently pejoratively. A special interest is nothing more than an identified group expressing a point of view — be it colleges and universities. . by 1835 the term had been shortened to "lobbyist" and was in wide usage in the U. volunteer lobbyists — all of whom are protected by the same First Amendment. senior citizens´ organizations. local or foreign governments. • Simply put. even state.

. Public officials cannot make fair and informed decisions without considering information from a broad range of interested parties. All sides of an issue must be explored in order to produce equitable government policies.Lobbying by countries (4) USA • Lobbying is a legitimate and necessary part of the American democratic political process. Government decisions affect both people and organizations. and information must be provided in order to produce informed decisions.

in response to concerns of corruption. • Since 1995. § 1601–1612). they are susceptible to criminal charges and harsh penalties. • If lobbyists neglect to register. under the federal Lobbying Disclosure Act (2 U. .C.S. require the formal registration of lobbyists who come in contact with government representatives. most people who are paid to make direct "lobbying contacts" with members of Congress and officials of the federal executive branch are required to register and file reports twice a year.Lobbying by countries (5 ) USA • Many jurisdictions.

" Although promoted as a regulation on "lobbyists.000 Executive Branch officials to report into a public database nearly any "significant contact" from any "private party. unless the communicator is another government official or government staff person. under the proposal. . .Lobbying by countries ( 6) USA • A controversial bill." . State.R. or local government official or a person representing such an official. the "Executive Branch Reform Act”." • Thus. 985. H. The bill defines "significant contact" to be any "oral or written communication (including electronic communication) . would require over 8. anyone who contacts a covered government official is in effect deemed to be a lobbyist. in which the private party seeks to influence official action by any officer or employee of the executive branch of the United States." the bill defines "private party" as "any person or entity" except "Federal.

Department of Justice has raised constitutional and other objections to the bill." but other groups oppose it as an infringing on the right to petition by making it impossible for citizens to communicate their views on controversial issues without having their names and viewpoints entered into a government database. Supreme Court has rejected congressional efforts to regulate grassroots communications as a form of "lobbying. . • In an other regulatory case the U.Lobbying by countries (7) USA • The bill is supported by some organizations as an expansion of "government in the sunshine." on constitutional grounds.S. The U.S.

companies. others are employed by trade associations. DC. . and state and local governments.Lobbying by countries (8 ) USA • The American League of Lobbyists has adopted the "Code of Lobbying Ethics" to provide basic guidelines and standards for lobbyists' conduct. • Currently. there are over 17. While many of these lobbyists are employed by lobbying and law firms and retain outside clients.000 federal lobbyists based in Washington.

by one of their constituents or by any outside organisation. • Currently the term often refers to the more narrow usage of the operation of "lobbyists" hired to represent the views of an organisation. though "there is no neat way of defining what is generally acknowledged to be a porous concept." • The professional lobbying industry has been steadily growing in recent years and was estimated by the Hansard Society in 2007 to be worth £1. . • Their report also suggested that some MPs are approached over 100 times a week by lobbyists.9 billion and employ 14.000 people.Lobbying by countries ( 9) UK • In the United Kingdom lobbying traditionally referred to the attempt to influence an MP's vote by either their fellow parliamentary colleagues.

.Lobbying by countries (10 ) UK • The House of Commons Public Administration Select Committee held an investigation into lobbying. and its 2009 report called for "a statutory register of lobbying activity to bring greater transparency to the dealings between Whitehall decision makers and outside interests.„ • It also concluded that the self-regulation of the professional lobbying industry was "fragmented" and appeared to "involve very little regulation of any substance".

Lobbying by countries (11 ) UK • There are two self-regulatory bodies which UK public affairs companies can join: • the Association of Professional Political Consultants (APPC) and the Public Relations Consultants Association (PRCA) • the Chartered Institute of Public Relations (CIPR) which registers individual lobbyists. .

political parties have been accused of trying to raise campaign funds by offering peerages and other honors. • The rules of Parliament do. it is alleged that some contributions thus solicited. These issues were also the focus of a Public Administration Select Committee investigation. To circumvent this law. are given not as outright gifts but as loans.Lobbying by countries (12 ) UK • In addition to "open" lobbying. . The 'sale' of peerages is a criminal offence. require participants in debates to 'declare their interest'. however. the United Kingdom.

5 billion • The 30% of that was estimated to be the professional lobbying industry in 2007 to be worth £1. the UK PR industry is worth around £6.9 billion and employ 14.000 paid staff. and wider NGO sector represents an important and growing locus of lobbying and public affairs activity. The UK charity sector employs around 600.000 charities are currently registered with the UK Charity Commission.Lobbying by countries (13) UK • The corporate business is estimated to employ 48000 people in PR activity.4 per cent of total GDP. interest group. • The charity. with a combined annual income of £38 billion – equivalent to 3. 190. .000 people.

5 million people. The CBI. has around 2.Lobbying by countries (14) UK • 67 Trade Unions currently make up the Trade Union Congress. . plus a further six million employed by companies whose trade associations are members. Labour Party records show that the trade unions still contribute to the majority of the party’s funding (around 75 per cent) • Trade Associations occupy an important place in the policy-making process. The Trade Association Forum claims that there are around 3000 bodies in the UK which might be described as trade associations. together representing almost 6. for example. and around 100 have ‘major full-time staff and government affairs teams’.000 individual company members employing around four million people. Around 600 of these lobby in a ‘meaningful way’.

for example. . and [provides] support for MPs and Peers in Westminster.5 billion. The ABPI – Association for the Pharmaceutical Industry – represents almost 150 full or affiliated members who together produce 80 per cent of the medicines prescribed through the NHS and have an annual UK trade surplus of around £3. lobbies on ‘several Government Bills each year . represents around 116.3 million people and have an annual turnover of over £10 billion.Lobbying by countries (15) UK • The Federation of Small Businesses (FSB) represents 195.000-strong membership in the UK . which together employ 1. • Professional Bodies: The Law Society.’27 The Royal Institute of British Architects (RIBA) has a 30. .000 members employed across a range of sectors.000 professional solicitors in England and Wales.

000. policy institutes. and research centres committed to strengthening political debate and forging new policy solutions. • Government: Lobbying and public affairs activity involves not merely the development of ‘vertical’ relations between organisations and government. effort. .Lobbying by countries (16) UK • The British Medical Association represents doctors from all branches of medicine all over the UK. and resources engaging in those kinds of activities labelled ‘public affairs’. but the fostering of ‘horizontal’ relationships between all those groups and organisations involved in policy development. • Think Tanks: thriving industry of over 100 organisations. And these include government. It has a total membership of over 138. It is an often overlooked fact that government itself invests a considerable amount of time.

Lobbying by countries (17) UK • The Media cannot be left out of any analysis of lobbying in the UK. . • The media is free to act without any significant regulation or the need for accountability and. moreover. it is able to claim that this untrammelled freedom is not a laissez-faire vice but instead is a democratic virtue. They often take up causes and use their considerable influence to persuade public opinion on a variety of issues from Sarah’s Law (tighter controls on child sex offenders) to dangerous dogs.

the Council. . The Commission has a monopoly on the initiative in Community decision-making. it makes it ideally suited as an arena for interest representation. There are three main channels of indirect lobbying of the Council.Lobbying by countries (18) EU • The fragmented nature of EU institutional structure provides multiple channels through which organized interests may seek to influence policy-making. Lobbying takes place at the European level itself and within the existing national states. Since it has the power to draft initiatives. and the European Parliament. The most important institutional targets are the Commission.

Lobbying by countries (19) EU • First. interest groups routinely lobby the national delegations in Brussels. As a consequence of the codecision procedures. . The third means of influencing the Council is directly via national governments. The second indirect means of lobbying the Council is for interest groups to lobby members of the many Council-working groups. the European Parliament attracts attention from lobbyists who target the rapporteur and the chairman of the committee. The rapporteurs are MEPs appointed by Committees to prepare the parliament’s response to the Commission’s proposal and to those measures taken by the Parliament itself.

national associations (10%). NGOs etc. corporations.Lobbying by countries (19) EU • There are currently around 15. international organizations (5%) and think tanks (1%). NGOs (11%). companies (13%). Some 2.) seeking to influence the EU’s legislative process. regional representations (6%).600 special interest groups have a permanent office in Brussels. . consultants (20%).000 lobbyists in Brussels (consultants. Their distribution is roughly as follows: European trade federations (32%). associations. lawyers.

the European Commission launched a draft Green Paper on the European Transparency Initiative. . the Commission states that “compliance with the highest standards of transparency is an essential condition for the legitimacy of any modern administration”. • In this draft.Lobbying by countries (20) EU • On 23 March 2006.

Lobbying by countries (21) EU Its main Principles to be improved • provide easy access to existing information about the beneficiaries of projects and programmes. „Codex of conduct for lobbyists” • Feedback on the Commission’s minimum standards for consultation • Mandatory disclosure of information about the beneficiaries of EU funds under shared management . • The Commission’s coverage of its register of documents • the rules and standards on professional ethics of public office holders in the European institutions • a review of the “access to documents” legislation revision of the legal framework for the EU’s Anti-Fraud Office (OLAF) • more structured framework for the activities of interest representatives (lobbyists).

starting with the National Assembly. as it can only contribute to meeting the transparency requirement. „ . which is a key principle for preserving modern democracy. • „France has every interest in embracing this principle and applying it to the regulation of its own institutions. the mandatory registration for representatives of interest groups who wish to have access to its premises was introduced.Lobbying by countries (22) EU • In the European Parliament.

. There is no requirement to provide any financial information. composition of the board of management and directors.Lobbying by countries (23) EU • The German Bundestag is the only parliament that has adopted specific formal rules on registration of lobbyists. The register is available on the internet. number of members. sphere of interest. • Each year a public list is drawn up of all groups wishing to express or defend their views. Interest groups are required to provide the following information in order to register: their name and seat. names of their representatives and the address of their office.

Lobbying by countries (24) EU • Other European countries • Only countries where lobbying is regulated in parliament bills are: Georgia (1998). . There were many attempts. Lithuania (2001) Poland (2005) and Hungary (2006). but with no satisfactory results. All require registration of professional lobbyists. So far. there is no complex lobbying regulation in other European countries.

IV) HUNGARIAN REGULATION OF LOBBYING What is our legal system like? .

to define the rules governing the relations between decision-makers and lobbyists and to lay down the fundamental guidelines for these activities • Lobbyist is a subject to registration .Hungarian regulation of lobbying (1) • Act XLIX of 2006 on Lobbying Activity • „this Act shall govern activities attempting to influence legislative or administrative action under contract for economic consideration” • Its objective: to ensure publicity for lobbying activity.

Hungarian regulation of lobbying (2) • • • • • The register Application seeking admission into register The entitled office keeping the register Person may not engage in lobbying activity The issue of numbered lobby licenses to lobbyists (for a fee) • Legal consequences of cancellation from register • Fundamental rules of lobbying (what shall and may and may not) • Report on lobbying activities. penalties .

the procedural rules for imposing the penalty • Government decree (176/2006. VIII.Hungarian regulation of lobbying (3) • „This Act shall have no effect on the provisions of other legislation concerning fostering interests and interest representation” • Government is authorized to decree about the designation of the office operating register.) . 14. the detailed regulations regarding the lobby licenses. the amount of fee.

Hungarian regulation of lobbying (4)
• Every ministries, local governments issue orders, decrees on implementation of „lobby act” • Who are entitled to receive lobbyists? • Preparation of the agreed minutes is recommended • Quarterly report is prescribed etc.

V) FEATURES of LOBBYING PRACTICE in HUNGARY before and after THE ACCESSION
What was it like and what are our challenges?

Features of lobbying (1) HU
• In the eighties and before, heads of the „agrarian lobby” –they were high ranked functionaries of the ruling party and managers of large farms at the same time – negotiated valuable deals on a political level; • The government and the MoARD administered only; • The politicians - not the open market - decided on the allocations and investments; • Results: economic blunders, distortions, losses and collapse;

• We needed an open society (George Soros). . • Making reforms in economic deals was not enough to introduce the „open market”. • Parliamentary democracy – 1990.Features of lobbying (2) HU • Reform measures aimed to open those kinds of secret deals (transparency). too.

Features of lobbying (3) HU • But old habits remained alive • Socio-cultural changes come more slowly • Socially conditioned reflexes survived in society • New Parliament MP put a question to me in the Ministry in 1990 .

MPs.Features of lobbying (4) HU • The story of the MP • Are the regulations in force obligatory for us. I had to reject his repeated support claim and say NO! • MP’s reaction: old-fashioned people in the ministry can’t understand our destination. Let’s fire them! (a kind of lobbying) . too? We are now the ruling force! • As a public service man explained: according to the standing rules I will be punished if I disregard the rules! So.

was passed by the Parliament in 1990 • Ministry prepared 24 versions of the bill and the 25th was adopted • Negotiation of the representatives of parties • Supporters of compensation in kind • Negotiation of interest-representing groups • Solicitors´ Association • Financial institutions • Foreign lobby groups (emigrants. investors etc.) .Features of lobbying (5) HU • Land law.

it was approved • Minister came back and then calculated his own upcoming value.) • Long and overall negotiating procedures • Minister of Agriculture submitted the bill to the government. workshops. plot. political captivity etc. assets.Features of lobbying (6) HU • Compensation law in 1991 • It stood in the limelight of the public interest of the whole country • Majority of people suffered confiscation by the state in the 50s (land. captivity in war. house. turned out it is too small • The whole procedure was restarted .

Features of lobbying (7) HU • Law on the agriculture cooperatives • The government submitted. wishful to corrupt them (political bill) • Cooperative share and member fee • Standing coops were obliged to pay in cash for every disclosing owner in a dictated price • Constitutional Court repealed the complete bill .

fragmentation in agro-business . 70% of the industry in foreign ownership.Features of lobbying (8) HU • Law on privatisation (1990) • Wide range of activities were performed by different lobby-groups in the legislation and in the implementation (examples) • Privatisation of the food-industry • Agricultural producers vs financial investors vs professionals • The result: short term interests.

Features of lobbying (9) HU • Privatisation of the state-owned wholesale and retail sectors (1989 – 1995) • Why and how? • 60% of the food procurement in the hands of 3 purchasing companies • They are the real players in „shaping” the agrar-policy in Hungary • The question of the president of the French Agricultural Chamber .

derogations. ARDOP.8% fat content of milk • Financial frame (25% or more. standards) • Protection of the market of agriculture land by 2011 • Quantities of production (milk. cattle etc) • Standards: 2. ARDP) • Intervention of maize • Sugar reform .Features of lobbying (10) HU • Negotiation process at the accession (quotas.

Features of lobbying (11) HU Programming PHARE ARDOP ARDP New Hungarian Rural Development Programme .

the debate around it Landowners lobby Producers lobby The desintegrated agrar-lobby The outcome: Constitution Court .Features of lobbying (12) HU • • • • • • • Standard vs SAPS Lobbying for the differentiated TOP UP system Introduction of SPS.

Thank you for your attention! .