The political storm around Goldman Sachs’ decision to hire former European Commission president José Manuel Barroso intensified on Tuesday, after the EU’s ethics watchdog raised concerns about guidance he might give the bank on Brexit.
The head of the conduct agency, known as the European Ombudsman, has written to the commission warning that the case has called into question whether current rules for former eurocrats are fit for purpose, adding that the Barroso appointment had shaken public trust at a “very challenging time for the EU”.
News that Mr Barroso, a former Portuguese prime minister, had taken a job as non-executive chairman of Goldman Sachs’ London-based investment bank sparked outcry in some European countries, notably France.
François Hollande, French president, branded the move “legally possible but morally unacceptable”, while Jean-Claude Juncker, Mr Barroso’s successor at the commission, has also made veiled criticisms of the step, saying “one has to choose one’s employer well”.
More than 120,000 people have signed a petition on the Change.org website protesting at the appointment and calling for Mr Barroso’s EU pension to be withdrawn. The preamble of the petition says it was started by “EU employees”.
The US bank has been criticised for arranging complex financial instruments to help the Greek government massage its public finances at a time when Mr Barroso led the commission.
The commission has said Mr Barroso’s decision cannot be challenged under EU conflict-of-interest rules as 18 months have already passed since he left his old post.
This is a significant public-interest issue and must be openly and comprehensively addressed by the commission .
However, Emily O’Reilly, head of the European Ombudsman, said in her letter to the commission that these assurances were now insufficient given signs that Mr Barroso would be advising his new employer on Brexit, which she said would add to “public unease”.
She said Brexit raised specific issues regarding Mr Barosso’s appointment, given his in-depth knowledge of the commission and the sensitivity of the issue.
“This is a significant public-interest issue and must be openly and comprehensively addressed by the commission,” she wrote. “I find it particularly relevant that EU staff have also launched their own petition in protest.”
Ms O’Reilly specifically asked whether the commission would issue guidance to Michel Barnier, the EU’s chief Brexit negotiator, and his team on “how and whether they will engage” with Mr Barroso in his new role.
While the letter is an embarrassment for Brussels, Ms O’Reilly cannot force the commission to revisit its decision on Mr Barroso or to change its code of conduct. A commission spokesman said the institution’s ethics rules were “the strictest in the world,” adding: “The rules were respected.”
Goldman Sachs said in a statement that Mr Barroso would “advise our clients in Europe and around the world on a range of issues. That decision had nothing to do with the outcome of the Brexit vote.”
The bank added that it began talks with the former commission president “at a time when the prevailing view was that the Remain campaign would succeed, an outcome we would have preferred and publicly supported.”
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