Jonathan Goldsmith
Monday, 11 March 2013

Solicitors have been one of the beneficiaries and promoters of globalisation in legal services. It is not a success that could reasonably have been predicted back in the 1960s. I suppose that its causes lie in multiple factors, including: the removal of the cap on the number of partners in a law firm; the rise to dominance of the English language; and the structure of the solicitors’ profession, which is not specifically tied to court work but includes non-contentious matters (and in particular commercial transactions).

The outstanding success of the large English law firms abroad might blind us to the fact that globalisation poses overwhelming challenges to us as individuals and nations. For instance, our regulatory bodies – and this is not a criticism of them – are unable to deal with the problems alone, because many of them lie outside their governing reach. The regulation of multi-jurisdictional law firms is no longer a matter of one bar alone, since it gives rise to deciding which ethical rules will govern a cross-border transaction. My organisation, the Council of Bars and Law Societies of Europe, CCBE, has a code of conduct which our members must adopt to regulate cross-border practice in Europe.

The International Bar Association has its own International Principles on Conduct for the Legal Profession, which are not binding. The American Bar Association has recently been struggling with the notion of alternative business structures which might stray into their territory, where ABSs are not allowed. And that doesn’t begin to take account of the problems arising through the use of electronic media – how to regulate government access to lawyers’ data stored via cloud computing on everyday electronic devices, or how to regulate virtual law firms.

As with regulatory bodies, so with European nations. I wrote last week about the internet giants whom the EU finds it difficult to control. This set me to thinking about other challenges now facing the UK. Too many of them can be solved only by collective effort, or, as with those bankers’ bonuses which took up headlines last week, by a global solution. Let me list them (apart from new IT developments and financial services, already touched on): dealing with the economic giants like the US and China, climate change, energy security, money laundering, terrorism, trade liberalisation, free competition - the list goes on. The European nation state is outflanked by problems which it cannot solve alone.

The question is: when global challenges face us, is it better at least to find a regional solution, and use the power of the region to come (hopefully) more quickly and easily to a satisfactory global solution; or is it better to say ‘well, with no global solution on the table, then I will retreat to my nation state without any solution at all’? Of course, my wording of the dilemma shows which I prefer, with particular reference to the UK government and bankers’ bonuses. But I have a serious point as well. Indeed I have a big idea, which I am thinking of selling at a high price to the EU as its new slogan, as follows.

It is no news to say that the EU is currently adrift and losing both meaning and support because it lacks a persuasive narrative to persuade citizens to support it into the future. There have been previous periods where the narrative worked to bind us together. First, we had the post-war need for reconciliation, and the collective political and economic effort to recover from war (second world war phase). Next, we had to win, and then recover from, the cold war and its outcome (cold war phase). Now, we are in the third phase, which seems to me to be the era of the global problems that I have described above (globalisation phase). No nation state in Europe is able to flourish any longer on its own.

In the UK, the only pro-EU argument seems to be support for the single market, which is of course of great benefit to us. But it is largely achieved, and on its own has lost its persuasive power after so many years of implementation. We need a new and future story. Although one is staring us in the face, no one is telling it in an articulate and compelling way. We see it as lawyers through the challenges faced by our national regulatory bodies, and we see it as citizens and European nations through the global challenges I have listed.

The EU should look away from the second world war, away from the cold war, away from the single market. It should describe the world as it currently is – full of challenges which do not respect national borders and which can only be resolved collectively. It should then explain to us how it can assist with speedier and more effective resolutions on our behalf. The new EU slogan: ‘Coping with the global for you.’

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 4 March 2013

Although we are distracted by daily news of crime (for instance, Oscar Pistorius) or sex (Jimmy Savile and others), we all know that there are more important developments changing our world. An example is the way the huge internet barons – Amazon, Google, Facebook – are altering our physical and virtual landscapes in a way that seems out of our control. Interestingly, the only tool which seems able to grapple with them is, of all things, EU law. Here are some examples from the areas of data protection and competition, which show that the battle ebbs and flows, and is not yet won.

First, data protection. There was a hearing a few days ago in a case involving Google and Spain before the European Court of Justice. Spain claims to have over 180 ‘right-to-be-forgotten’ cases involving Google. This case (C-131/12) is based on a complaint by a man who found a newspaper announcement on Google from several years earlier saying a property he owned was up for auction because of non-payment of social security contributions. Spain's data regulator asks whether EU citizens have to go to US courts to exercise their privacy rights, and whether Google ‘is responsible for the damage the diffusion of personal information can cause for citizens’. Google argues it should not have to erase lawful content which it did not create. The advocate-general will publish an opinion on June 25, with a ruling expected by the end of the year.

Then there is the EU data protection package, about which I wrote recently. I called it ‘Becoming excited about data protection’, and that was prescient, because the internet monsters have become very excited about it indeed. It has been called the most intense lobbying campaign ever of the European Parliament, with the monsters mounting overwhelming exercises. Someone has been tracking the effect of amendments from companies like Amazon and eBay, alleging that, among others, well-respected UK Conservative MEP, Malcom Harbour, took up to 25% of his proposed amendments directly from monsters’ briefings – a cut-and-paste-job effectively – which he has tried subsequently to justify. The future of our data protection will be decided in this legislation.

And finally the EU is worried about Google’s data collection policy, which was changed last year, allowing it to collect data from across all its properties, including Gmail and YouTube, into a single data store. Google is now to be summoned to explain why it has not yet satisfied EU concerns.

Second, competition. The EU’s competition authority is continuing to consider action against Google. The US Federal Trade Commission recently limply let off Google from the complaint that its search engine favours the company’s commerce and other services in search queries, so frustrating competition. But the EU is still looking at the same issue, and has the potential to impose a large fine. Different standards apply between the US (conduct can be justified in the name of efficiency) and the EU (where abuse of a dominant position is the test). Of course, this is partly the case of monsters fighting among themselves, since Microsoft is one of the complainants against Google.

If you tap ‘EU and Google’ into Google’s own search engine, you can find out much of this information. Thank you, Google. In fact, the monstrosity does not go all one way. Google’s own latest Transparency Report, released late in January, showed that requests by European governments for the browsing history, email communications, documents and IP addresses of Google's users have boomed over the last three years. Countries in the EU made 7,254 requests about 9,240 users or accounts between July and December 2012, averaging over 1,200 requests a month. This represents over a third of all requests made by governments worldwide over the period, and a 100% increase over the past three years. So the very governments which are clubbing together in the EU, supposedly to protect our interests against the monsters, are using the same monsters for their own interests.

If you tap ‘UK and Google’ into the same search engine, however, you can see only one substantive interaction. When ‘Don’t be evil’ Google’s executive chairman, Eric Schmidt, was told that the natives were restless in one of his minor colonies, the UK, about the fact that Google was paying less tax than might be expected, he effectively gave us the finger: ‘It’s called capitalism.’

My point is that the UK alone, through no fault of its own, is not in a position to look after us against the monsters. We have borders, they do not. Group action by a number of countries is obviously more effective. As we have seen, that is not a perfect solution. But I believe it is better than the alternative. If EU law does not save us from the monsters, nothing will.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 25 February 2013

Last week, I wrote about how EU funding has helped lawyers, through the creation of a Find-A-Lawyer database (some welcomed the money, others saw it is a waste). I should have called it EU funding - part 1. This week comes part 2, which tells how EU funding is supporting lawyers in the field of legal training.

The European Commission has begun to take the training of lawyers seriously. You might wonder why it is its business. Well, it has an interest in seeing EU law properly implemented by practitioners, whether they are judges, prosecutors, lawyers, notaries, bailiffs or court staff. It also has an interest in ensuring that, in the single market, practitioners have appropriate knowledge of other member states’ law and legal systems. It published a Communication in 2011, called ‘Building trust in EU-wide justice - a new dimension to European judicial training’, about which I wrote at the time.

Now it has just published a ‘Report on judicial training 2011’. That might seem out of date, but it is the first year after the launch of the Communication for which a snapshot could be produced of just how many practitioners were being trained. The Commission set itself a goal of ensuring that 700,000 of them – half of all legal practitioners in the EU – were trained in European law or the law of another member state by 2020. In this first report, it announces proudly that at least 87,000 legal practitioners - more than expected - were trained in EU law or the national law of another member state in 2011; the training of 10 000 of those participants was (co-)funded by the EU.

The figure regarding lawyers, though, is not high. Although lawyers formed the grouping with the highest absolute number of people trained in that year (26,664), this as a percentage of the profession - 4% - was among the lowest because of the high number of lawyers. Judges and prosecutors did better at 25% and 18% apiece.

The commission is putting its money where its mouth is, and has recently awarded two sums of money to improve lawyer training at EU level. The first tranche has been granted to the organisation for which I work, the Council of Bars and Law Societies of Europe (CCBE), and is intended for the construction of what we call a European Training Platform. It is a simple idea: the creation of a single website, or electronic platform, on which training courses for lawyers around the EU will be advertised, to allow lawyers to find a suitable training course easily.

It is principally aimed at assisting in the training of EU law and the law of another member state, but will also be able to be used incidentally by national practitioners looking for national training. We are still in the process of refining the concept, but the search fields are likely to include the title of the course, venue, date, language, continuing education accreditation and practice area. Clearly, we will be reaching out to training providers as the system is being designed – indeed, the end product should be a very useful tool for them to reach a wider audience, including beyond national borders.

Second, the commission has just awarded a tender for a research project into the training of European lawyers. The successful consortium is led by the European Institute of Public Administration (EIPA), assisted by the CCBE. The project has three main objectives: establishing the state of play of training of EU lawyers on EU law, developing exchanges of good practice, and drafting recommendations on how to increase the quality and quantity of training courses. The project will include the creation of detailed factsheets on each national training system, a survey of training providers, a description of existing training activities which include aspects of EU law, and the development of a toolkit for dissemination of good practice. Each bar will appoint a contact point, and once more the input of national training providers will be important.

The crowning glory of all this activity will be a conference taking place on 10 April in Brussels, called ‘Stimulating European Judicial Training - Supporting judicial training of European legal professionals’. It is aimed at training providers and bars, among others. Registration is by invitation only.

I know that none of this will change minds. Eurosceptics and cynics will see it as the usual waste of time and money. But I - ever the Euro-optimist and enthusiast - am pleased that the EU is rightly investing some money in improving lawyer training.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 18 February 2013

The European budget discussions which ended just over a week ago might have left you puzzled as to whether EU funds impact lawyers. Do you benefit, and if so how? Here is a little insight into how a tiny part of the cash has been used to help the legal profession.

The European Commission is now building an online search facility, whereby citizens will be able to look for lawyers in other member states in their own language. So, if you are a Hungarian-speaking personal injury solicitor, and a citizen of Hungary who does not speak English trips over while on holiday in your town, that citizen will be able to find you for the purposes of making a claim. (Actually, if you are a solicitor, this might not apply to you – see below.) Obviously, although not intended to be a professional tool, the facility can also help lawyers find lawyers in other member states, to help with local work.

The search engine is based on a project carried out by my organisation, the Council of Bars and Law Societies of Europe (CCBE), with European funding. We built a prototype which the commission is now using to build a working model on the European e-justice portal. It is expected to go live later this year.

It has raised some interesting implementation issues, which were not foreseeable when I first wrote about it over three years ago. For instance, the system gathers languages spoken by lawyers, as mentioned, but of course most bars do not gather information on lawyers speaking the native tongue of their own country. Imagine if you searched on the Czech Republic and found no lawyers speaking Czech. Of course, that is easily remedied, by assuming, almost certainly correctly, that they all do speak Czech.

The new system will also have to resolve different means of referring to the same place, for instance Brussels, Bruxelles or Brussel, depending on your language, or Baden-Württemberg and Baden Württemberg, depending on your use of hyphens. And postal codes, which are not at all harmonised around the EU, have led to more difficulty than you can imagine.

To return to my fictional Hungarian citizen, he or she will also have to know – for the purposes of the UK – in which jurisdiction the accident took place (England and Wales, Scotland or Northern Ireland), and which of the legal professions (solicitor or barrister, or advocate for Scotland) is the appropriate lawyer. All this has had to be explained to the poor IT technicians building the search engine, so that it can be made as easy as possible for the citizen by way of drop-down boxes, maps or text.

The UK is not alone with its complications. Ireland and Poland both have two legal professions (in the case of Poland, it is based on the former Soviet-era distinction between advocates and legal advisors, which has been swept away in other former communist countries). Belgium has two bars, based on the language grouping of the lawyers, French or Flemish – although there is a small German-speaking community, which goes together for bar purposes with the French. So, presumably, citizens will have to decide whether they want a French or Flemish lawyer to handle their case.

And Germany has, for these purposes, the most unusual distinction of all, since it consists of two overlapping groups, one the membership of the regulatory body (BRAK), and the other that of the representative or trade union body (DAV), although this issue has not yet been addressed for the purpose of the search engine. However, it is true that the UK is the only member state with separate geographical jurisdictions within the same country.

Not all bars collect all search fields, although they are encouraged to do so. So not all bars collect languages spoken by their lawyers, or even practice areas. We have developed 20 practice areas, which were agreed after vigorous discussion among our member delegations. Some bars have to funnel their 60 or 100 own practice areas into our 20.

As for the UK, not all the bars and law societies have yet joined up. One not yet signed up is the Law Society of England and Wales. I am writing this on my knees, begging and praying that it will join, so that you, too, will appear when our Hungarian friend is looking for a lawyer in your area. In this way, even solicitors will be beneficiaries of EU funding.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 11 February 2013

Well, at least one of my predictions from last week for 2013 has come true: the draft of the fourth money laundering directive was published a few days ago, as reported by the Gazette last week. It will have important consequences for lawyers. I will just flesh out a few of those possible consequences now, since it is still too early to be certain of the exact meaning and impact of the new articles.

Two proposals were published at the same time, one the expected directive, and the other a regulation on information accompanying transfers of funds to secure "due traceability" of those transfers. Both are based on the latest Recommendations of the Financial Action Task Force (FATF), and – worryingly – the European Commission boasts that it goes further than the FATF in a number of fields. The EU has always been the keenest pupil in the FATF’s class, for instance introducing lawyer reporting when other important FATF members, like Japan, Canada and the US, have resisted it. This time it is proud that it has gone beyond the FATF by lowering the limit of cash allowed for payment of goods (like furs or diamonds) before triggering the provisions of the directive, from €15,000 to €7,500.

The commission says that the new directive will, among other things, improve clarity and consistency of the rules across the member states, provide a clear mechanism for identification of beneficial owners, and extend the scope of the directive (for instance to gambling, and to cover tax crimes).

There are some interesting new aspects regarding lawyers and our reporting duties. I make no approving or disapproving comments at this stage, because the organisation I represent, the Council of Bars and Law Societies of Europe (CCBE), is still crawling through the clauses carefully.

The main new article relating to lawyer reporting is Article 33.2, which corresponds to the old Article 23.2 of the third money laundering directive, and lays out the scope of the reporting duty. Much of it appears to be the same as before. However, words have been added to highlight that the exemption to reporting in relation to lawyers applies ‘only to the strict extent that such exemption relates to information’ acquired in the listed ways, which appears to be more stringent than before. And it now also becomes mandatory for member states, and not just optional, to apply this exemption for lawyer reporting.

The most interesting aspect of the draft directive for lawyers might turn out to be the attempt by the commission to codify the recent Michaud case (12323/11) before the European Court of Human Rights. That was the case which raised the question of whether a lawyer’s duty to report suspicious transactions under the money laundering legislation breached the European Convention of Human Rights, in particular Article 8 (right to respect for private and family life). The Court found, in the particular circumstances of France, that - among other things - the reporting which took place through the filter of the president of the bar was sufficient protection for professional secrecy.

Just to clarify for those unfamiliar with the French system: in France, lawyers do not report suspicious transactions directly to the Financial Intelligence Unit (FIU), but rather to the president of their bar, who decides whether the report should be transmitted onwards to the FIU. Now recital 27 of the draft directive states that: ‘In line with the case law of the European Court of Human Rights, a system of first instance reporting to a self-regulatory body constitutes an important safeguard to uphold the protection of fundamental rights as concerns the reporting obligations applicable to lawyers.’ And there is an article which captures the point later in the new draft.

The question – and it is no more than that at this stage – is whether the French system of reporting suspicious transactions through the president of the bar will now spread to other bars. It is already in use beyond France. Would the UK, for instance, think of implementing it? Is it safer all round, more protective of professional secrecy, than direct lawyer reporting? Does it put what might turn out to be an unbearable responsibility on the president of the bar? Of course, the exceptionally high number of reports in the UK compared to other member states might make this way forward in any way impractical, regardless of the principle of whether it is a good thing.

As you can see, there is likely to be a spirited struggle ahead, as happened with previous directives on the same topic. We will need time to absorb and discuss its nuances. Lawyers, be warned.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 4 February 2013

I have been reading Robert A. Caro’s masterpiece on the life of US president Lyndon Johnson, which I cannot recommend enough. It is not short (four gigantic volumes so far), but is compulsive and brilliant. The relevance of this to EU legal affairs is in its exposure of how the southern US states used states’ rights for decades to defend their inexcusable behaviour towards their black citizens. Each time a national civil rights bill came before the south’s national political representatives, they did not talk about racism and white supremacy, but about how the federal government had no right to interfere with precious states’ rights, and that the states should be able to manage their own business. In this way, they dodged reform.

Does that sound familiar to the EU debate? My point is not to compare traditional Euroscepticism to the awful reality that the southerners were defending - that would be totally wrong, and I apologise for any offence caused in advance - but to point out that states’ rights can be used to avoid positive reform, albeit of a gentler sort. Much good has come from European legislation, and to avoid it because of states’ rights is to use a formal position regardless of substance.

So what is coming up this year in the field of EU legal affairs to make Eurosceptics reach for their states’ rights arguments? I know it is already February, and I should have presented a timetable of 2013 activities at the start of the year. Last week, I outlined the current activities of the European Commission in trying to make the legal services market more competitive. This week, I add to the list by reporting what is coming in new substantive legislation affecting the legal profession.

Within a few days, we are expecting two important documents. The first will be the draft fourth anti-money laundering directive. Given the excitement around the last two, we are gearing up for action. The commission will be holding an opening conference on the directive on 15 March. At the same time, the Financial Action Task Force - not an EU body, I realise - is preparing an exercise on the points at which lawyers are vulnerable with respect to money laundering, and it expects to prepare, in due course, best-practice guidelines.

The second important document is a report on European judicial training (‘judicial’ is Euro-speak for all legal professionals), which we hope will highlight the imbalance in attention and funding paid towards the training of lawyers at EU level. Judges and prosecutors are easy to deal with, since they are government responsibilities, but lawyers, being private actors, have so far received a smaller size of the cake. This is despite the fact that lawyers are the first port of call for citizens with EU problems. We anticipate that the communication will point out this old imbalance, and maybe in time to lead to a correction.

Within weeks, we expect an announcement about an EU-US free-trade agreement. We don’t yet know what it will include, but if legal services are part of the eventual deal then the long-awaited goal of easier entry to all parts of the US legal market might finally be in sight. New York and California, to take two examples, have been open to foreign lawyers for some while, and are obviously attractive states. But equal access to other states has required so far a patient state-by-state negotiation – and there are fifty of them. A single agreement will make lawyers’ lives easier, but will not in itself be simple to accomplish. For instance, it will need to overcome the longstanding problem that the deal will be with the federal government while regulation of lawyers is dealt with at state level, usually by the State Supreme Court.

Also coming soon is legislation establishing a European Public Prosecutors Office (EPPO). The aim is to improve the protection of the financial interest of the European Union, which everyone - even Eurosceptics worried about fraud and other abuses against EU funding - can agree to in principle. But the EPPO raises potential worries, especially around its structure. It it is to be decentralised within the member states’ current legal systems that would be of less concern than if a supranational structure able to intervene in national courts is the outcome.

Towards the end of the year, a criminal law package is scheduled. This will cover three different proposals: legal aid in criminal law, the protection of vulnerable suspects, and the presumption of innocence.

There are continuing, existing legislative preoccupations (professional qualifications directive, data protection package, regulation on cross-border e-identification and trusted services). And of course the current struggle over what is called Measure C - in other words, the harmonised right of a crime suspect or defendant to access to a lawyer in any member state - continues, although the Irish presidency of the EU hopes to settle it during its six-month leadership.

States’ rights or EU rights? The debate has been opened by the prime minister, and my plea is that we look at the substance of the measures in question rather than just shielding behind the formality of a states’ rights position.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Friday, 25 January 2013

One of the main themes of David Cameron’s recent speech seemed to be deep regret that the EU was just not good enough for the UK. If only it were, he would be delighted to recommend staying. And so he gave poor Johnny Foreigner an ultimatum to pull up his socks for once and all. The UK government requires the EU to be more competitive, more flexible, more fair – just like in Britain. You wouldn’t have guessed from his speech that there had been recent major upheavals and scandals in the UK caused by the banking and newspaper industries, to take just two, for failing those same criteria, with his government having to be pushed to deal with their fall-out.

I want to test the truth of his speech against the sector I know best, that of legal services. When you examine it, you find that the EU has a powerful range of new initiatives trying to make legal services more competitive, some under the heading of ‘Justice for Growth’, which the commissioner for justice, Viviane Reding, is pushing hard. Here are some examples. (I should add that reciting the list does not signify my approval of its content. This is all about showing how active the EU is in the areas where it is being condemned for being – sigh – just not up to the UK’s standards.)

The EU is currently reviewing the working of the lawyers’ sectoral directives, to be sure that they are modern and relevant. This will cover all forms of cross-border legal practice, including also legal structures. The European Commission will publish in March a major piece of research into this evaluation. At the same time, it has commissioned a study into alternative business structures in the field of legal services, among others. The commission has indicated that it will take action to change the current legislative framework, if necessary.

The commission is just completing yet another study, called ‘The functioning of judicial systems and the situation of the economy in the European Union member states’, undertaken by a committee of the Council of Europe. It will be followed by a communication in March or April of this year, containing a ‘Justice scoreboard’ which will gauge the various strengths and weaknesses of each member state by benchmarking judicial ‘strength, efficiency and reliability’. (One of the points made in the report was that a number of countries have, in the view of the authors, too many lawyers.)

The Annual Growth Survey 2013 was published on 28 November 2012, encouraging member states, among other things, to improve the implementation of the Services Directive by reviewing the necessity and proportionality of regulation of professional services, in particular fixed tariffs, and limitations on company structures and capital ownership.

The Entrepreneurship 2020 Action Plan was published on 9 January 2013, which foresees the setting up of a working group to assess the specific needs of liberal profession entrepreneurs in relation to issues such as simplification, internationalisation or access to finance.

Finally, work is continuing on a major EU-funded project to enable cross-border electronic transactions in the future across the EU, which will give European lawyers a significant competitive edge.

At the recent EU Justice Council, Commissioner Reding drew attention to two items which had made progress under her ‘Justice for Growth’ agenda – the data protection package and the modernisation of rules in cross-border insolvencies. She includes other topics in this area, such as a possible future European contract law (which I know is not popular in the UK). And there have been steps recently to agree to the establishment of a streamlined new European patent regime.

It should not need pointing out that the legal services group which will doubtless benefit most from these various measures are solicitors of England and Wales, who have already taken advantage of the single market to grow their presence in most, if not all, European countries.

This does not look to me like a sector which needs to be shamed into action by the prime minister. Of course, legal services might be exceptionally active in just those fields that the prime minister highlights as being necessary for the UK to agree to stay. Or the prime minister might be creating Aunt Sallies for purposes not related to the functioning of the EU but rather to the needs of his own party. In legal services at least, Johnny Foreigner’s socks are right up to the knee.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 21 January 2013

I often avoid writing about sensitive topics, out of cowardice. One of these has been the hyper-sensitive subject of governmental lobbying by lawyers, which is of interest both in the UK and in the EU.

There are opposing sides in the debate: government authorities and transparency NGOs want full disclosure of all lobbying activities, including by lawyers; while bars and law societies, whether my own organisation - the Council of Bars and Law Societies of Europe (CCBE) - or the Law Society, argue that confidentiality and legal professional privilege (‘professional secrecy’) mean that lawyers cannot disclose their clients’ details (in this case, the client’s name, and overall fees obtained from lobbying) on a public register.

The argument has been batted backwards and forwards over the last few years, with – in the EU at least – the public affairs consultancies joining the side against lawyers, on the grounds that, if they are under pressure to register, why should competitor law firms be able to escape the need?

According to the most recent annual report of the EU lobbying register, six member states have what is called ‘interest representation regulation’ at the national level, among which are France and Germany. The UK is listed in the group of a further six that are considering it. The UK coalition government has promised legislation by the end of this parliament.

At EU level, there has been a voluntary register for over a year now, run jointly by the European Parliament and the European Commission. The EU claims that it is in line with international standards, such as the Recommendation of the OECD Council on Principles for Transparency and Integrity in Lobbying. Many current EU registrants (not the CCBE) want the register to be made compulsory, but the commission and Euro parliament argue that that would mean pursuing nearly-impossible objectives, since it would require either a change to the Treaty or a decision by unanimity of the European Council. So, it looks as if the register will remain voluntary for the time being.

Solutions are being suggested by the register’s authorities to some of the problems faced by lawyers. On the question of professional secrecy, one idea - apparently already adopted in Quebec - is that a lawyer faced by such a question would request a confidentiality order from the registration authority. If the authority is persuaded that there would be a material risk of damage to the interests of the client or the lawyer, then the information can be made exempt from registration.

This brings us to another issue faced by lawyers. The CCBE has in the past emphasised the principle of professional self-regulation, which would be breached if the government – or here the commission or parliament – were able to impose a sanction on a lawyer in case of non-compliance with the rules of the register. I have just suggested above that the commission might be able to make a decision on the relationship between a lawyer’s ethical code and the register’s code of conduct – would it not be worse if the commission could sanction a lawyer who is properly sheltering behind the bar’s ethical rules?

A compromise being discussed is that the lawyer involved could ask his or her bar for a ruling, which the commission (or other authority) would take into account in its final decision.

This is one of those areas – cropping up more frequently these days – where everyone can agree with the objective of the initiative (‘Transparency is a good thing’, ‘Fighting money laundering and corruption is a good thing’), but the specific implementation relating to lawyers rubs up against long-agreed core principles of the legal profession. In this case, compromises are being advanced, and the question for the bars – which the CCBE will soon examine – is whether the compromises are acceptable.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 14 January 2013

Another six months has elapsed, and so another presidency of the EU Council of Ministers begins. For the next half-year, the Irish government is in charge, the seventh time that they have led in the past 40 years. The budget for their presidency is, not surprisingly, less than when they undertook the function last time. Nevertheless, some attention has been paid in Euro-circles to the symbolism of their leading Europe at a time of the beginning of an apparent Irish economic recovery.

(If this recovery continues, it will be a challenge to those opposed to the euro, since it has been achieved without Ireland being able to devalue its currency, while the UK, which is able to devalue, does not seem yet to have escaped its economic difficulties. Solve that, you economic geniuses.)

In the announced priorities for their presidency, only two issues are of direct interest to lawyers – data protection and external trade.

Briefly, on data protection, the European Parliament committee reporters on the two measures which make up the data protection package issued their reports last week. For the general citizen-focused measure (as opposed to the one specifically targeted at law enforcement, which has lower standards), the reporter concluded that web-based firms that exploit users’ personal data for different purposes - including advertising - will have to obtain the users’ consent.

The highlight in the news coverage is that the modern day robber-barons, Google and Facebook, are not happy with the outcome. I am tempted to say: the EU must be doing something right then. But there are also concerns that, because this report sets such high and harmonised standards, it will adversely affect small businesses. The Irish presidency will try to advance the legislation during its period in charge.

Secondly, the new presidency also announced the following: ‘Given the close links between Ireland and the US, we are going to push forward with the idea of an EU-US free trade agreement.’ I wrote over a year ago about this idea, and in the manner of all trade deals, it has hardly moved forward at all since then. There are doubtless good reasons, such as the uncertainty over the US presidential election result. But the Irish government wants to speed up matters now. First, a High-Level Working Group between the EU and US needs to report (expected last month, but delayed by the presidential election). A 2% rise in EU GDP is expected to follow such a deal when finalised, which is good enough reason to proceed speedily.

The US is a market which interests solicitors a great deal. In the past, the Law Society has expended huge effort in trying to obtain easier requalification and practice rights there. In a previous incarnation, I was involved in trying to negotiate better practice rights for solicitors around the world. The UK embassies were always helpful, but power lay with the EU representation. It is evident that more negotiating power lies with a collection of 27 countries, many of them major players on the world’s economic stage.

The two priorities above feed directly into the debate which is going to consume us in the coming months – in or out of the EU? I see that business leaders and the US government are urging us to stay in, even not to have a referendum which might lead to an uncontrollable out. But that will not convince the out-ers. Nothing will convince them.

However, it is obvious: when dealing with Google and Facebook on the one hand (data protection), and the US government on the other (free trade agreement), will the UK obtain better deals on its own, or in conjunction with the 27 member states? Surely there can be only one answer - look at how Switzerland has been tossed about in relation to its banking secrecy - but some would prefer the UK all the same to be worse off, but on its own.

We each have a responsibility in the coming months to advance arguments which will further the good of the UK and of Europe as a whole.

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs



Jonathan Goldsmith
Monday, 7 January 2013

From a European and a lawyer’s point of view, there were some surprises when reading the latest new year’s honours list. I have therefore decided to suggest alternative nominees.

I was pleasantly startled to see that some members of the European Parliament were awarded honours, one from each of the main parties. (I cannot go through all the old honours lists or all MEPs past and present to see how common this might be.) Two received the award ‘for public and political services’, which I believe is the term for long and faithful execution of duties: Fiona Hall (a plain-old OBE), who is leader of Liberal Democrat MEPs, and Michael Cashman (CBE), who is from Labour and co-founder of Stonewall (and former EastEnders actor). Neither of them is particularly high-flying in the parliament.

The third is Malcolm Harbour (CBE and a Conservative), who was a leading player in the legislative passage of one of the most important recent pieces of EU law – the Services Directive – and is also the only one of the three who is a chair of a parliamentary committee, and an important one at that: the internal market and consumer protection committee. Interestingly, his citation reads ‘For services to the UK economy’.

There are other prominent UK MEPs, who have not been given any award. The most obvious is Sharon Bowles, a patent attorney who is the Liberal Democrat chair of the economic and monetary affairs committee, which is playing a leading role in regulation of the European financial markets and generally coping with the aftermath of the economic crisis. She was on the recent shortlist for the vacancy for the governor of the Bank of England. But I suppose the government cannot give an award to someone who is trying to help resolve the EU crisis in a responsible way - since then the euro might be saved and we would no longer be able to say how lucky we were to stay out of it, and, worse, the City of London might actually have to face some serious new regulation. (There is also, by the way, Arlene McCarthy (Labour) who is a former chair of the internal market and consumer protection committee.)

One can overdo reading between the lines of honours lists, but my interpretation of the trio of awards given is that the government is signalling that what really matters to it in the EU is the single market, and it is happy to drop the rest – thank you, Malcolm Harbour for delivering what is important (‘services to the UK Economy’ and a CBE, not just ‘public and political services’ and an OBE). This is a small part of the campaign for renegotiation or withdrawal – who knows how it will turn out? – which hots up week by week. I see that the justice commissioner, Viviane Reding, intervened over the holiday season with an interview in the Daily Telegraph, in which she said, in lines I support: ‘You have to make up your mind, either you belong to it or you don’t belong. There is no cherry picking.’

That is the European part of the honours list. Then we come to the lawyers’ part. As the Gazette has mentioned, there was a thin line-up of solicitors. There was only one solicitor listed in what are called the higher awards, David Wootton, and his was for being Lord Mayor of London. Precisely one person received an honour – it was an OBE - for ‘services to the legal profession’ and that was Diane Burleigh, chief executive of the Chartered Institute of Legal Executives. She is a solicitor, but was not honoured for her services to our profession. There was a scattering of other publicly-employed lawyers, many involved in the management of the Olympic Games. And that’s it.

Actors – yes. Sportsmen – of course, yes. Politicians – plenty. But lawyers? Usually only if they are notable for something else, as if being a lawyer were in itself a potential disqualification.

I have three lawyers to nominate for awards (in case it might be thought that there is a dearth of lawyers deserving an honour in 2012). About the biggest story last year was the revelation of the UK state-within-a-state run by parts of the Murdoch press, more or less strong-arming the government into whom to fire and which policies to adopt, even if sometimes carried out by a smiling face at a glamorous party or on horseback. It showed a profound corruption of our political life, among the worst cases in our democratic history.

The UK owes a debt of gratitude to those lawyers who helped uncover the plot, particularly since two faced problems in their roles from that same press. The two lawyers are, of course, Charlotte Harris and Mark Lewis. And, just to show that I am not biased in favour of solicitors, I nominate Robert Jay QC, counsel to the Leveson inquiry, as the third deserving lawyer. Surely their contribution to the UK is as great, or greater, than the droves of actors, sports people and politicians who received awards?

Jonathan Goldsmith is secretary general of the Council of Bars and Law Societies of Europe, which represents about one million European lawyers through its member bars and law societies. He blogs weekly for the Gazette on European affairs