Input Through Consultation – Explaining EU Agencies’ Acceptance of Industry Stakeholder Input

In the European Union (EU), expert based decision making is a major part of how regulation is established. The technical complexity of regulatory issues requires EU institutions to have specific knowledge and expertise. As some of this knowledge has to come from the actors that are regulated, questions are often raised as to whether the input in EU regulatory decision-making is influenced by business interests. Existing research found that Commission consultations often result in such business biases. However, research has not considered biases in consultations of other EU institutions; EU agencies. These have become increasingly prevalent and relevant in EU policymaking. Situated all over Europe, these agencies assist the Commission in preparing regulation and even adopt binding decisions of their own. As they are expected to have a high level of independence and base their decisions on scientific expertise, they should be free from any business bias. But as of now, EU agencies base much of their output on what they are supplied with by the industry they regulate. Additionally, the broad involvement of stakeholders (including, but not limited to regulated industry) is argued to be of major importance for EU agencies in gaining information and increasing their organizational capacity. Consequently, business bias may also be found in EU agencies. As industry input is currently a necessary asset for EU agencies, it is vital to know when this information provides them with useful expertise and when it is merely a way for industry to influence them. This paper therefore explores whether agency acceptance of industry stakeholders’ input can be explained by the expertise of the industry or by their lobbying efforts. It asks: What explains whether input from industry stakeholders is accepted by EU agencies? To that aim, this paper looks at the consultations that EU agencies organize and the responses that industry stakeholders provide. Using a novel dataset on the consultations organized by EIOPA and EASA, we establish which suggestions from industry stakeholders are accepted and used by these agencies in their decision-making. Combined with data on the lobbying efforts and expertise of industry stakeholders that provide these suggestions, we test whether acceptance of industry input can be explained by either of these factors. In doing so, this paper adds to lobbying literature and to our understanding of the conduct between EU agencies and the actors they are tasked with regulating.