Transparency International EU (TI EU) has expressed concerns that the European Commission’s recently announced Defence of Democracy Package falls short of the level of transparency needed to effectively counter malign influence in EU democracies. The organization believes that the current proposal’s focus on interest representatives receiving certain types of foreign funding is not comprehensive enough to address the full spectrum of threats.

“This proposal will not only be ineffective, but it will also be dangerous,” stated Vitor Teixeira, Senior Policy Officer at TI EU. “The Commission has rightly criticized these types of laws in the past, not least in Georgia and Hungary. Its new proposal now puts this international position at risk.”

TI EU advocates for a more ambitious “EU Interest Representatives Act” that would extend transparency requirements to all organizations seeking to influence policymaking, regardless of their funding sources or legal structures. Such an approach would address the shortcomings of the current proposal by capturing both internal and external malign interference, making it a more effective tool in safeguarding democracy.

“If the Commission truly wants to protect democracy, it would cast the net wide and raise transparency standards for all interest representatives – foreign funded or not – rather than proposing a misguided foreign agent law that may well cause more problems than provide solutions”, Teixeira added.

The organization has urged the European Parliament and EU Member States to actively revise the current proposal to ensure greater transparency for all interest representatives. TI EU pledged to work closely with all legislators to achieve this goal.

“Only an EU Interest Representatives Act will demonstrate the EU’s commitment to addressing both external and internal threats to democracy,” Teixeira concluded.

Background

The European Commission’s proposed Defence of Democracy Package aims to address the growing threat of malign influence in EU democracies. The package includes a Directive on transparency of interest representation on behalf of third countries, which would require organizations receiving funding from certain third countries to disclose their funding sources and activities.

TI EU’s Concerns

Transparency International EU (TI EU) has raised concerns that the proposed Directive is too narrow and could be counterproductive. TI EU argues that the Directive should apply to all organizations seeking to influence policymakers, regardless of their funding or legal structure. This would ensure that the Directive captures both external and internal malign interference.

TI EU’s Proposed Approach

TI EU proposes an “EU Interest Representatives Act” that would apply to all organizations seeking to influence policymakers in the EU. This Act would require all organizations to disclose their funding sources, activities, and any conflicts of interest. The Act would also establish an independent register to hold organizations accountable and enable journalists and researchers to investigate potential malign influence.