On Revolving Doors & Pantouflage: French Rules for Lobbying Transparency
Recently, Eva Rammeloo wrote an article in the Dutch Financial Times about former French minister Bruno Le Maire following his appointment as an external strategic advisor at ASML. Le Maire resigned from French politics in September 2024. The article also touched on the role of the French lobbying regulator HATVP, providing a reason to explore the rules in France for former politicians and civil servants taking on new roles.
Haute Autorité pour la Transparence de la Vie Publique
The Haute Autorité pour la Transparence de la Vie Publique (HATVP) was established in France in 2013. This followed a scandal involving former minister Jérôme Cahuzac, who was accused of tax evasion through secret foreign accounts. The scandal sparked public and political demands for greater transparency and stricter oversight of politicians and senior civil servants.
The HATVP was created under the “Loi relative à la transparence de la vie publique”, a law designed with the following objectives:
- Increasing transparency regarding the finances of public officials.
- Preventing conflicts of interest.
- Monitoring transitions from public to private roles, a practice known in France as “pantouflage” (literally “slippers”). A readable French word history can be found here.
The HATVP operates independently and is tasked with reviewing financial disclosure statements of ministers, parliamentarians, and other high-ranking officials, as well as monitoring their post-office activities.
Characteristics of Pantouflage & the Revolving Door
The revolving door phenomenon—commonly known internationally as the “revolving door”—can be characterized by:
- Transition from public to private sector: when a public official moves to a private organization (e.g., a corporation or industry group), leveraging their knowledge, experience, and contacts gained in government.
- Conflicts of interest: if the individual uses confidential information or policy insights acquired during public service.
- Focus on strategic sectors: this transition is more common in sectors closely linked to the government, such as defense, energy, infrastructure, finance, and technology.
Perceived risks associated with the revolving door include:
- Loss of public trust: the media and public may perceive blurred lines between public and private interests, potentially eroding trust in institutions.
- Unfair advantage: companies hiring former officials might seem to gain an unfair edge through access to policymakers or sensitive information.
- Policy influence: policymakers might make decisions during their term that later benefit their private-sector careers.
This discussion often focuses on former politicians transitioning to business or industry groups. However, the same risks apply to former officials joining NGOs, though these moves are often viewed more leniently due to their societal missions.
Image by Nouvelle étiquette
French Pantouflage Regulations
Former politicians and senior officials in France are subject to strict rules designed to prevent conflicts of interest, enforced by the HATVP.
- Cooling-off period (“période de cooling off”): politicians and senior civil servants are prohibited from taking roles directly related to their former responsibilities for three years. For example, they cannot engage in lobbying targeted at their previous ministries or government bodies.
- HATVP approval: before accepting a new role, former politicians must obtain approval from the HATVP, which assesses potential conflicts of interest.
- Reporting obligation: they must publicly disclose their new activities to ensure transparency.
- Ban on misuse of insider knowledge: they are forbidden from using confidential information acquired during their tenure.
Sanctions?
The HATVP has the authority to impose sanctions if former officials violate these rules, including:
- Fines: up to €60,000.
- Legal Action: in severe cases, criminal proceedings can be initiated.
- Public Disclosure: offenses are made public, risking reputational damage.
Sanctions may include repaying income earned from unauthorized activities or, in extreme cases, being barred from holding certain positions.
Notable Cases
Several cases in France have involved breaches of these rules, such as:
- François Fillon (former Prime Minister): accused of misusing public funds and conflicts of interest—though this case focused more on financial misconduct than lobbying violations.
- Thomas Thévenoud (former Secretary of State): caught failing to meet tax obligations.
- Former Civil Servants: some engaged in unauthorized advisory or lobbying roles during their cooling-off period, leading to HATVP sanctions.
The Value of Former Politicians
Despite these risks, engaging former politicians or civil servants can be beneficial if done transparently and ethically, particularly in enhancing a company’s public affairs strategy through:
- Policy expertise: providing deep knowledge of (European) economic policy, subsidies, and regulations impacting technology firms.
- Extensive networks: leveraging connections within the EU and national governments to advocate for company interests.
- Strategic guidance: advising on how to navigate evolving regulations and subsidies in industries like semiconductors.
- Reputation and credibility: a former official’s status can lend legitimacy and influence in policy discussions.
ASML highlighted this perspective in its statement to Reuters (December 19, 2024) regarding Le Maire’s appointment: “We believe that substantial investments in the European semiconductor ecosystem are necessary to strengthen its position in the global semiconductor value chain. <>. We recognise this mission is to be accomplished in a dynamic geopolitical and economic environment and, therefore, seek high-level advice on a consistent basis.”
"The HATVP operates independently and is tasked with reviewing financial disclosure statements of ministers, parliamentarians, and other high-ranking officials, as well as monitoring their post-office activities."
Public matters