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30 March 2011

“Cash for laws” scandal engulfs European Parliament

The “lobbygate” scandal that involves the three members from the European Parliament who agreed to propose amendments to consumer protection legislation in return for money continues to deepen. Following the ‘forced’ resignation of socialist Romanian member, one week after his two colleagues, the EU anti-fraud office OLAF started an internal investigation.

Three European MPs Romania’s Severin, Austria’s Ernst Strasser and Zoran Thaler of Slovenia – had allegedly arranged “to sell their services” and give support on the adoption of several amendments in exchange for EUR 100,000 offered by Britain’s Sunday Times journalists, who pretended to be financial lobbyists. The deal that the three MEPs have apparently accepted have led to two socialist MEPs Strasser and Thaler immediate resigning, and third being expelled from his party for not resigning, while it is not yet known what will happen with a fourth MEP.   Severin denied any wrongdoing and refused to resign from the European Parliament, although he has been expelled from the S & D group, he continues to sit as an independent MEP.

Austrian centre-right MEP Ernst Strasser and Slovenian socialist Zoran Thaler resigned soon after the first reports emerged.

Spanish EPP MEP Pablo Zalba assumed he had been "deceived by the Sunday Times undercover reporters" and had not accepted their offer of cash, but he did amend draft legislation at the request of the posed lobbyists the BBC advanced.

As reported in EL Pais, “he assumed to have submitted the second amendment because he thought it would help small investors”. But the team of Sunday Times said that it was clear that he would be paid for his services.

Socialist chair Martin Schulz also admitted that the "cash for laws" scandal of the parliament "has been very damaging" for the image of the institution and said that Parliament's group leaders will meet on Thursday to talk about the issue but the campaign group, ALTER-EU, has called on the MEP to resign immediately and for parliament's leadership to commit to "far-reaching ethics and transparency reforms".

On Monday, OLAF said that after the Sunday Times report a formal investigation should take place without delay as there is a “potential damage to the reputation of the European institutions”.

Two days after the diffusion of the report, OLAF investigators tried to collect proofs from the MEPs offices in the European Parliament, but the institution authorities declined the demanded access and defended these would be protected by European Parliament security personnel.

On the following day EP President Buzek sent a letter to OLAF declaring to be against an investigation on the building of the European Parliament and asking for a more accurate explanation about the competences of OLAF’s search. According to the concerned organization, on the day after a legal justification (article 325 of the TFEU) of its mandate to conduct an investigation at the European Parliament was sent and OLAF has been instantaneously informed that the European Parliament would also carry an internal consultation of the case.