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March 2012 Master Course Spring 2012 Dr.

Mary Papaschinopoulou
EU Business Regulation,
does it matter? A Public
Affairs Perspective

Dr. Mary Papaschinopoulou
Head of Association of Northern
German Chambers of Commerce and
Industry Brussels
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou

I. Introduction

II. Lobbying

a) Historical Background
b) Definition
c) Added Value

III. Working as a Lobbyist

a) Different Ways
b) Tasks
c) Tools
d) Profile
e) Stakeholders



Contents
IV. Lobbying in Brussels

a) Relevance
b) International Comparison
c) EU Lobby Scene
d) EU Political System
e) Effectiveness

V. Lobbying: Conclusions & Key
Messages

VI. Case Study: EU Commission
Proposal on Sulphur Emissions
from Maritime Transport

a) The Case
b) The Facts
c) The EU Decision-Making
Process

VII. Case Study: Evaluation & Key
Messages


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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou

I. Introduction

II. Lobbying

a) Historical Background
b) Definition
c) Added Value

III. Working as a Lobbyist

a) Different Ways
b) Tasks
c) Tools
d) Profile
e) Stakeholders



Contents
IV. Lobbying in Brussels

a) Relevance
b) International Comparison
c) EU Lobby Scene
d) EU Political System
e) Effectiveness

V. Lobbying: Conclusions & Key
Messages

VI. Case Study: EU Commission
Proposal on Sulphur Emissions
from Maritime Transport

a) The Case
b) The Facts
c) The EU Decision-Making
Process

VII. Case Study: Evaluation & Key
Messages


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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
I. Introduction
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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I. Association of Northern German CCIs
IHK Nord
Association of Northern German CCIs

comprising 13 Northern German CCIs from
5 Northern German Federal States
(Lnder)
within a strong economic area
including more than 650.000 member
companies
representing 18 % of Germanys GDP
with its own representation in Brussels
since 1959
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
I. IHK Nord Representation in Brussels
Our Services
Micro-Lobbying
(MIL)

Proactive Corporate Diplomacy
Monitoring of EU legislation
Support in case of problems
with EU tenders
Anti-Dumping register and
newsletter
Intervention in case of trade
barriers and restrictions to
market access
Providing high-level contacts to
EU decision-makers
Workshops and Seminars
Macro-Lobbying
(MAL)

Proactive
monitoring of political
developments and EU
legislation
(Focus: maritime economy
& logistic, foreign trade)
Institution Building
in the CCIs
Creating strategic networks
Public relations
IHK Nord CCIs and Member Companies
C
u
s
t
o
m
e
r
s

P
r
o
d
u
c
t
s

EU-Funding
Programs

Screening of possibilities
Negotiation in
international consortium
Claims
Project management
Accounting
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou

I. Introduction

II. Lobbying

a) Historical Background
b) Definition
c) Added Value

III. Working as a Lobbyist

a) Different Ways
b) Tasks
c) Tools
d) Profile
e) Stakeholders



Contents
IV. Lobbying in Brussels

a) Relevance
b) International Comparison
c) EU Lobby Scene
d) EU Political System
e) Effectiveness

V. Lobbying: Conclusions & Key
Messages

VI. Case Study: EU Commission
Proposal on Sulphur Emissions
from Maritime Transport

a) The Case
b) The Facts
c) The EU Decision-Making
Process

VII. Case Study: Evaluation & Key
Messages


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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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II. Lobbying
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
a) Lobbying Historical Background
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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Lobbying for business is

manipulative at best
and sleazy at worst ?
b) Lobbying for Business Definition
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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Lobbying for business is
Professional representation
of private and public interests
towards decision makers

Proactive shaping
of the political environment
b) Lobbying for Business Definition
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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b) Lobbying for Business Definition
Public Relations
Filter / Issues-Management
Monitoring / Intelligence
Roadmap / Lobby Plan
Procedural
& Strucutral
Tools

Lobbying
=
Public
Affairs

March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
c) Lobbying for Business Added Value
Systematic analysis and proactive shaping of the
business environment
More solid planning basis
create
Risks Chances
minimise maximise
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
Lobbying for Business

increases success
enlarges and secures room for manoeuvre
optimises planning
creates best possible framework conditions

Power Lobbying is value for money!
c) Lobbying for Business Added Value
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou

I. Introduction

II. Lobbying

a) Historical Background
b) Definition
c) Added Value

III. Working as a Lobbyist

a) Different Ways
b) Tasks
c) Tools
d) Profile
e) Stakeholders



Contents
IV. Lobbying in Brussels

a) Relevance
b) International Comparison
c) EU Lobby Scene
d) EU Political System
e) Effectiveness

V. Lobbying: Conclusions & Key
Messages

VI. Case Study: EU Commission
Proposal on Sulphur Emissions
from Maritime Transport

a) The Case
b) The Facts
c) The EU Decision-Making
Process

VII. Case Study: Evaluation & Key
Messages


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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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III. Working as a Lobbyist
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
a) Different Ways
Internal External Personal
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
b) Tasks
Monitor relevant developments
Identify the problem
Consequences for your business?
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Implement objective & strategy
Action / Advocacy
Define objective & strategy
Lobby Plan
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
c) Tools
Conferences /
Workshops
Networks &
Alliances
Events
(Lunch briefings,
on-site visits)
Written Briefings Media & Press
Meetings
National Associations
European Associations
Consultancies
Law firms
Structural Tools Procedural Tools
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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d) Profile
Soft Skills
Negotiation
Skills
Communication-
Skills
Management
Skills
Representation
Skills
Emotional
Intelligence /
Body Language
Strategic Thinking
Expertise /
know-how
Expertise /
Know-How
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
e) Stakeholders

C
O
M
P
A
N
Y

Competitors
Customers
Suppliers
Holders, shareholders,
investors
Employees
Public
Associations
NGOs
Media
Political decision makers
on local, national, European &
international level
Direct Stakeholders Indirect Stakeholders
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou

I. Introduction

II. Lobbying

a) Historical Background
b) Definition
c) Added Value

III. Working as a Lobbyist

a) Different Ways
b) Tasks
c) Tools
d) Profile
e) Stakeholders



Contents
IV. Lobbying in Brussels

a) Relevance
b) International Comparison
c) EU Lobby Scene
d) EU Political System
e) Effectiveness

V. Lobbying: Conclusions & Key
Messages

VI. Case Study: EU Commission
Proposal on Sulphur Emissions
from Maritime Transport

a) The Case
b) The Facts
c) The EU Decision-Making
Process

VII. Case Study: Evaluation & Key
Messages


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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
IV. Lobbying in Brussels
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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a) Relevance
84%
Regulation
Budget/Funding
Possibilities
Budget 2012:
147,2 billion
~ 46% Sustainable growth
~ 41% Natural resources
~ 6 % EU as a global player
~ 6% Administration
~ 1% Citizenship, freedom, security
and justice
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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Source: Graphic DIPA (2006)
b) International Comparison
Lobbying in
Brussels
Lobbying in
Berlin




15.000 estimated
Lobbyists

3.050 offices




35.000 estimated
Lobbyists

16.000 offices


Lobbying in
Washington D.C.




4.500 estimated
Lobbyists

2.026 offices




March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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Source: European Parliament (2008)
c) EU Lobby Scene
Accredited lobbyists in the
European Parliament:

4.570

Total estimated amount of
full-time
lobbyists in Brussels:

~ 15.000
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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c) EU Lobby Scene
Type ~ Number
Associations and other business representations 1.200
Companies 500
NGOs 750
Regional representations 200
Law firms 200
Consultancies
Think Tanks (Research on European topics)
150
50
In total 3.050
Source: Gugen (2007)
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
c) EU Lobby Scene: German Representation
of Interests in Brussels
Source: Permanent Representation of the Federal Republic of Germany to the European Union (2009)
154
93
82
15
13
0
20
40
60
80
100
120
140
160
180
Representatives of German Companies
Representatives of German Associations
Representatives of European Associations
Offices of the German Lnder
Representatives of Municipal Offices
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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c) EU Lobby Scene: German Companies in
Brussels
Source: Permanent Representation of the Federal Republic of Germany in the EU (2009)
42
39
34
24
15
0
5
10
15
20
25
30
35
40
45
Industry
Consultancies
Law Firms
Services
Banks and Financial
Services
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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d) EU Political System
Subnational /
regional level
European
level
(EU institutions)
National level
(27 Member
States)
European
Commission
European
Parliament
Council of the
EU
Court of
Auditors
European Court
of Justice
Economic and
Social Committee
Committee of
the Regions
National
Governments
People
e
l
e
c
t

r
e
p
r
e
s
e
n
t
e
d

i
n

Regional
Governments
r
e
p
r
e
s
e
n
t
e
d

i
n

Decision
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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5%
11%
16%
21%
21%
20%
1%
0% 5% 10% 15% 20% 25%
1
2
3
4
5
6
7
8
9
10
e) Effectiveness of Lobbying (EU Commission)
Extremely
useful
Not
useful
at all
Source: Burson-Marsteller (2003)
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
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5%
3%
7%
7%
15%
19%
19%
19%
5%
0% 5% 10% 15% 20%
1
2
3
4
5
6
7
8
9
10
e) Effectiveness of Lobbying (EU Parliament)
Source: Burson-Marsteller (2001)
Extremely
useful
Not
useful
at all
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou

I. Introduction

II. Lobbying

a) Historical Background
b) Definition
c) Added Value

III. Working as a Lobbyist

a) Different Ways
b) Tasks
c) Tools
d) Profile
e) Stakeholders



Contents
IV. Lobbying in Brussels

a) Relevance
b) International Comparison
c) EU Lobby Scene
d) EU Political System
e) Effectiveness

V. Lobbying: Conclusions & Key
Messages

VI. Case Study: EU Commission
Proposal on Sulphur Emissions
from Maritime Transport

a) The Case
b) The Facts
c) The EU Decision-Making
Process

VII. Case Study: Evaluation & Key
Messages


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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
V. Lobbying: Conclusion & Key
Messages
Lobbying is a legitimate and
necessary element of democracy
Public Affairs are a strategic core function
for business developments
Lobbying requests pronounced
management, strategic and
communication skills
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou

I. Introduction

II. Lobbying

a) Historical Background
b) Definition
c) Added Value

III. Working as a Lobbyist

a) Different Ways
b) Tasks
c) Tools
d) Profile
e) Stakeholders



Contents
IV. Lobbying in Brussels

a) Relevance
b) International Comparison
c) EU Lobby Scene
d) EU Political System
e) Effectiveness

V. Lobbying: Conclusions & Key
Messages

VI. Case Study: EU Commission
Proposal on Sulphur Emissions
from Maritime Transport

a) The Case
b) The Facts
c) The EU Decision-Making
Process

VII. Case Study: Evaluation & Key
Messages


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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
VI. Case Study: EU Commission
Proposal on Sulphur Emissions
from Maritime Transport
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
Background: Regulation, International
Maritime Organisation (IMO)
a) The Case
SECAs (Sulphur

Emission Control
Areas):
(North Sea, Baltic Sea & the
English Channel):
Starting 2015 max. 0,1%.
Worldwide:
Starting 2012 max. 3,5 %;
Starting 2025 max. 0,5 %.
Legal basis: MARPOL Convention, Annex
VI (Air Pollution from Ships), 2008
Contents: Limits on Sulphur Content in
Marine Fuels
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
The Aim of the European Commission:

Alignment of Directive 1999/32 with the most recent
IMO rules on fuel standards notably on prevention of
air pollution from ships, as well as to strengthen the
EU monitoring and enforcement regime.

Accordingly: revision of the EU Directive on the
sulphur content in marine fuels (1999/32/EC)

EU
a) The Case
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
Movie (http://www.epa.gov/international/fuelswitch.html )
The United States Environmental Protection Agency:










Reducing Emissions from Ships
U.S.-Mexico Fuel Switching Demonstration
The U.S. Approach
b) The Facts
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
The shipping industry is currently a major source of SO2 in the EU;
it is responsible for 75% of the total land-based emissions.
(Source: Communication from the European Commission "A European Union strategy to reduce atmospheric emissions from seagoing ships", 2002)


The Baltic and North Sea are among the most overloaded seas;
80% of shipping occurs near the coast.

b) The Facts
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
Source: World Health Organization European Center for Environment and Health
(Journal of Toxicology and Environmental Health, part A, vol 68, p 1301)
Sulfur
Dioxide and
its Effects:
Health
b) The Facts
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
Source: Atmospheric Chemistry and Physics Journal, 2009
Sulfur Dioxide and
its Effects:
Environment
Ship emissions worldwide:
Responsible for 5% of sulphur
dioxide-induced acid rain.

Emissions from ships in coastal
regions: Responsible for acid rain
and for more than 25% of
tropospheric ozone.

.
50% of acid rain in North European coastal regions is attributed to ship emissions.
b) The Facts
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
The shipping industry is a small contributor to the total volume of atmospheric
emissions compared to road vehicles and air transport.
In terms of CO2 emissions per ton of cargo transported one mile, shipping is
recognized as the most efficient form of commercial transport.



Comparative exhaust gas emissions




Shipping Compared to Other Modes of
Transport regarding Atmospheric Pollution


Comparative CO2 emissions


b) The Facts

Source: NTM (Swedish Network for Transport and the Environment)
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
In terms of energy consumption, shipping compares very favorably with other
transport modes.
Sea Freight is the cheapest transport mode.
Shipping Compared to Other Modes of Transport
regarding Energy and Cost Efficiency
b) The Facts
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
(According to the study of the Bremen Institute of Shipping Economics and Logistics)
Costs Increase: rising prices for currently used fuels from 400
per ton to more than 700 per ton for low-sulfur fuel and the
following increase of the cost of freight.
Modal shifts from road to sea caused by rising costs.
Volume losses of 820,000 standard containers (TEUs) per year
for seaports.

New business opportunities for marine equipment industry
("scrubber" / sulfur treatment equipment), shipyards (adjustment of
vessels), refineries (production of new fuels) and classes
(certification of new vessel components).

Reduction of sulphur emissions and health risk.



Possible Economic Impacts
b) The Facts
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
b) The Facts
Improving Air Quality: Sulphur Emission Control Areas on
the Planet
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
Who are the
different stakeholders
in this case
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
Lobbyists:
(Shipbuilding) suppliers
Classification societies
Shipowners
Ports
Shipyards
Paper industry
..
EU Commission:
DG ENV
DG CLIMA
DG MOVE
DG ENTR
DG RTD
DG MARE
..

Regional Representations:
Dutch Provinces
Region of Venice
Stockholm Region
Barcelona City
Association of Finnish Local &
Regional Authorities (AFLRA)
South East England Development Agency
(SEEDA)
..

Third Countries / Embassies:
Norway
Russia
27 Member States / Permanent Representations:
Member States bordering the Baltic Sea, North Sea and English Channel
Member States not bordering the Baltic Sea, North Sea and English Channel
EU Parliament:
Political Groups
(Conservatives, Socialists,
Liberals, the Greens, the Left)
Parliamentary committees
(ENVI, TRAN)
Parliamentary Intergroups (Baltic
Europe, Seas and Coastal Areas)
Brussels Sulphur
Stakeholders
b) The Facts
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
How and when
can stakeholders influence
the EU decision-making process

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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
European
Parliament
European
Commission
European
Council
Lobby
Lobby
Lobby
Lobby
Lobby
Lobby
c) The EU Decision-Making Process
Institutional Triangle of the EU
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
c) The EU Decision-Making Process Co-Decision Procedure
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
Lobby
Lobby
Lobby
Lobby
Lobby
c) The EU Decision-Making Process
Co-Decision Procedure
Commission
Proposal
Conciliation
Committee
EP
First Reading
Council
First Reading
A: Act
adopted
B: Act not
adopted
EP
Second
Reading
..
B:
Act not
adopted
A: Act
adopted
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
Stakeholder-
Consultation
Impact
Assessment
Procedure
Inter-service
consultation
Internal Commission Work

Duration: 1-3 Years
The College
of
Commissioners
Legislative
Proposal
EU Legislative Procedure
(so-called Co-Decision Procedure)

Duration: 1-3 Years

1st Reading
EP &
Council
2nd Reading
EP &
Council
Conciliation
Committee

COM
Idea
Comitology
&
Implementation
at national level

Adoption
I
n
f
l
u
e
n
c
e

0%
100%
c) The EU Decision-Making Process
Time Line

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52
Proposal on
Sulphur Emissions
from Maritime
Transport 15
th
July 2011

Draft Report,
MEP Satu Hassi,
ENVI
Committee of the
European Parliament
Draft Opinion,
MEP Savisaar-
Toomast,
TRAN
Committee of the
European Parliament
March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou

I. Introduction

II. Lobbying

a) Historical Background
b) Definition
c) Added Value

III. Working as a Lobbyist

a) Different Ways
b) Tasks
c) Tools
d) Profile
e) Stakeholders



Contents
IV. Lobbying in Brussels

a) Relevance
b) International Comparison
c) EU Lobby Scene
d) EU Political System
e) Effectiveness

V. Lobbying: Conclusions & Key
Messages

VI. Case Study: EU Commission
Proposal on Sulphur Emissions
from Maritime Transport

a) The Case
b) The Facts
c) The EU Decision-Making
Process

VII. Case Study: Evaluation & Key
Messages


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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
IV. Case Study: Evaluation & Key
Messages
No sector can afford to ignore regulation
lobbying is indispensable!
Lobbying anticipates and manages
regulatory risks for business!
Lobbying gives business a competitive edge
regulation can be proactively shaped!
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March 2012 Master Course Spring 2012 Dr. Mary Papaschinopoulou
Thank you for your attention!

Dr. Mary Papaschinopoulou

Representation of IHK Nord
Avenue des Arts 19 A-D
B-1000 Brussels
Telephone: +32 2 209 12 80
Telefax: +32 2 209 12 89
E-mail: mary.papaschinopoulou@bruessel.ihknord.de

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