ABSTRACT
Government and business interact in the European Community across a structure that consists of three EC institutions—the Commission of the European Communities (Commission), European Parliament (Parliament) and the Council of Ministers (Council)— and, on the business side, the entire range of companies and representative organizations. The latter, which play an important role in the interaction, include sector-specific bodies and bodies dealing with broader issues, in both cases present at the Community and national level.
The government-business relationship in Europe differs from the U.S. model in four significant ways. First, the process is less transparent and formal than in the United States. Second, much of the interaction takes place out of public sight. Third, the tone of the relationship is more consensual and less confrontational. And fourth, because of the European parliamentary system, there is no equivalent to the strong and direct role played by the U.S. Congress.
The interplay between the EC Commission and the private sector is crucial because of the Commission’s power to initiate legislation. On the whole, the relationship is balanced in that each side needs the other. Although informal and rather personalized, there is intense interaction between business and the Commission in most areas. The Commission frequently uses the support of business, or 31a particular sector, to further its objectives, and business does the same.
At the level of the European Parliament the interaction to a great extent revolves around proposed amendments to draft legislation produced by the Commission. However, the mechanisms of Parliament are relatively undeveloped, thus the input of the private sector is far less extensive and structured than with the U.S. Congress.
The relationship between the Council and business is largely carried out at national level, since the Council consists of the member state representatives. The nature of the relationship varies considerably from one country to another, although in general it is quite close, with governments on the whole attentive to the concerns and demands of the private sector.
European business has closely followed the Uruguay Round trade negotiations, largely through contacts with national governments but also through the dialogue between the Commission and the European confederation of industry and employers federations.
U.S. business actively participates in this interaction between government and business in the EC. On the whole, it has been accepted as an equal in this process. At EC level, it enjoys good access and influence, directly and through the EC Committee of the American Chamber of Commerce and other bodies.
