European Ombudsman raises red flag over Barroso’s Goldman Sachs job

Ombudsman wants revision of the Code of Conduct to so that it reflects Treaty rules on how former Commissioners should behave and proposed sanctions for breaches of the Code

José Manuel Barroso
José Manuel Barroso

The European Ombudsman has called on the European Commission to strengthen rules allowing former Commissioners to drift straight into the private sector after leaving office, to take up jobs related to their portfolios.

The most recent appointment was that of former Commission president José Manuel Barroso, who took up a post at Goldman Sachs to advise on the effects of the United Kingdom’s departure from the EU.

Referencing this recent appointment after the ‘cooling-off’ period stipulated in the Code of Conduct for Commissioners, Emily O’Reilly asked whether the rules are sufficient to protect the public interest.

“Former Commissioners technically need to notify the Commission only if they plan to engage in an occupation within 18 months after their term of office so that potential conflicts of interests can be assessed.

“But technical adherence to rules drawn up and implemented by the Commission itself may or may not fully conform to Treaty Article 245 which deals with the need for Commissioners to behave with integrity, including after leaving office. The Article makes no reference to a timescale in this regard,” O’Reilly said.

“Any suggestion that the spirit of the law is being ignored risks undermining public trust in the EU. It also undermines the positive steps the Commission has taken so far on ethical issues and does a great disservice to every conscientious and hard working EU official. The ‘right to work’ has to be balanced with the public’s right to an ethical administration and particularly when it comes to those holding, or having held, very senior positions.”

Article 245 of the Treaty of the EU requires Commissioners to “behave with integrity and discretion as regards the acceptance, after they have ceased to hold office, of certain appointments or benefits.”

“Just as citizens expect the highest standards when it comes to the conduct of public officials, they need clarity on what precisely this means in practice,” O’Reilly said.

The Ombudsman has called on the Commission to revise the Code of Conduct to so that it reflects the Treaty rules on how former Commissioners should behave and proposed sanctions for breaches of the Code.

The Ombudsman said the Barroso Commission had failed adequately to deal with a former Commissioner’s breach of the Code of Conduct and had not properly investigated the compatibility of the Commissioner’s contract with the EU treaty, despite concerns raised by the advisory committee that deals with these matters.