Finance sector found to be strongest lobby group in parliament

Finance representatives make up the most powerful lobby in the German parliament, with banks, insurance companies and fund management firms spending millions to influence legislation, a new analysis published on Friday suggests.

No other industry among the 100 most financially powerful lobby groups is as strongly represented as the finance sector, according to an assessment by the Finanzwende (Finance Turnaround) association based on the public parliamentary lobby register.

Ten of the 100 financial heavyweights in the register are banks, insurance companies and investment firms who spend a total of almost €40 million ($41.1 million) annually on lobbying and employ 442 listed lobbyists, it said.

The automotive industry, meanwhile, which traditionally has a strong footing in Germany, is only represented by six actors and a budget of some €18 million, while the chemical lobby is represented by five actors, spending €21 million annually on attempts to influence lawmakers.

The lobby register has been published on the website of the Bundestag, as the lower house of parliament is known, since 2022 in an attempt to provide transparency on who is exerting influence on political decisions and legislation.

Professional interest representatives are required to register there and provide information on, among other things their clients and topic area, as well as the personnel and financial resources of their lobbying activities with parliament and the federal government.

They are also obliged to adhere to a prescribed code of conduct.

Since March, lobbyists also have to specify which specific legislative proposal they want to influence and upload the key points of their demands to the lobby register.

In addition, they must state when they are not representing the interests of their actual client, but those of a third party. In the case of mandate and office holders switching to the lobbyist side, they must disclose their current and previous roles.

Almost 6,000 companies, associations, organizations, networks, individuals and other entities are currently registered as lobby actors in the German parliament, with more than 27,000 named lobbyists registered.

The tightening of the disclosure requirements has led to a “massive increase in transparency,” the Finanzwende association believes.

“Thanks to the improved lobby register, more of what used to take place in secret is finally becoming visible. We see the range of influence exerted by the financial lobby and, unfortunately, how successful it is,” said managing director Daniel Mittler. 

The association also believes that the process of politicians switching to the financial lobby is now more visible in some cases.

Lobbyists must now state whether they have worked in parliament, in the government or in the federal administration in the last five years. Well-known former politicians or staff members of lawmakers are extremely valuable to the financial lobby due to their insider knowledge of ministries and parliament.

According to the analysis, the German Insurance Association (GDV) continues to be the frontrunner when it comes to lobby spending.

“No one spends more money across all industries on influencing the Bundestag and the federal government than the umbrella organization of insurers,” said Finanzwende.

The GDV represents the interests of insurance companies and spends some €15 million annually on lobbying, employing 93 registered lobbyists who tried to influence 86 laws and ordinances between March and November.

“Anyone with as many resources as the finance lobby can support dozens of political processes at the same time. The lobby register shows the constant stream of information to members of parliament,” said Mittler. “It is quite clear that civil society organizations cannot afford a comparable effort.”

Finanzwende, which evaluated the industry’s lobbying work, is also listed in the register as a lobby actor, with a budget of €130,000 to €140,000 and 12 representatives.

Source: dpa