Economic globalization and the fracturing of business interest representation in the European Union

Abstract

Individual firms have become the dominant lobby actors in the European Union, while associational business interest representation has declined. This is alarming because individual firms tend to overlook the long-term interests of society by focusing on what is important in the short term for their own survival. How can we explain this trend? This article argues that globalization is a key driver of firm-level lobbying and that it fractures business interest representation. The study employs an original dataset of almost 14,000 lobby contacts between senior staff of the European Commission, business interests, and NGOs. It finds support for the argument that globalization spurs individual firm lobbying in the European Union. This complicates the already challenging task of business associations aggregating and channeling the interests of their members.