Former Commission President cleared of ethics breach over Goldman Sachs job

An ethics panel has cleared former European Commission chief José Manuel Barroso of breaking an EU integrity code for taking a job at Goldman Sachs, but questioned his judgement in moving to the bank.

An independent panel said that Barroso had not shown the considerate judgement expected of someone who had held high office for many years, but concluded there were “not sufficient grounds” to determine that he had broken the Commission’s ethical code.

The eight-page report, published on Monday, found that there were “not sufficient grounds to establish a violation of the duty of integrity and discretion” and accepted Barroso’s assurances that he would not be lobbying on behalf of the bank’s clients.

The panel did not reach a conclusion on whether the EU’s reputation had been damaged by Barroso’s move. Whether fears of reputational harm were justified or not, “this damage has now been done”, the committee said, adding that its remit was not to assess the wisdom or blameworthy nature of Barroso’s actions.

Barroso, who is also Portugal’s former Prime Minister, led the European Commission for 10 years until 2014.

The panel said former commissioners had a right to work in the private sector, adding that “Goldman Sachs may be considered at the vanguard of aggressive capitalism, but as long as it respects the rule of law, it is in itself not against the law to accept a position at the bank.”

His move to Goldman Sachs to advise the bank’s clients on Brexit triggered waves of criticism. More than 150,000 people signed a petition drafted by EU staff criticising his decision as “morally reprehensible”, with a French government minister reportedly rebuking him on the floor of the national assembly.

The European Commission launched an unprecedented ethics inquiry into the move, focusing on whether Barroso had violated the EU’s code of conduct that requires senior officials to “behave with integrity and discretion” once they have ceased to hold high office.

The three-person panel consisted of the former MEP Dagmar Roth-Behrendt, the former European court judge Christiaan Timmermans and the former commission official Heinz Zourek.

European Ombudsman Emily O’Reilly had argued in a letter to EC President Jean-Claude Juncker that Barroso’s appointment has raised questions over the adequacy of the code of conduct.

“Barroso’s move has generated concern at a very challenging time for the EU and particularly in relation to citizen trust in its institutions … the appointment, which the Commission has argued is in compliance with the code of conduct, raises question marks over the adequacy of the code itself,” she had said.