This is the golden age of professional lobbying in the State

MadridThere is a sector in the State that is living a golden age, which is growing without yet having comprehensive regulation and which is increasingly relevant in the decision-making process of governments and Parliaments: public affairs consultancies. A type of bridge between the public and private world, which is unknown territory for a large part of the population and which in recent years has been proliferating strongly in Madrid, but also in Barcelona, as a result of political fragmentation, the increasing complexity of decision-making processes and the rise of economic and geopolitical crises. What do these companies do, however? Is it a professionalized sector? Why is it fertile ground for former politicians? El ARA has taken a snapshot of the main companies established in the State, speaking withpeople from within the sector, professional associations, politicians, and also experts who point to the lack of regulation as the main problem.

If you want to investigate the galaxy in more detail, open the high-resolution version in another tab.To the question of what these companies do, the answer is to influence the public sector, especially governments and Parliaments, on behalf of a third party, usually companies. They do not engage in traditional lobbying, as they are not the directly affected sector, but rather it is a professionalization of this task. They work for different companies at the same time and are located close to power. That is why many have been established in the capital of the State, where the decisions of the Boletín Oficial del Estado (BOE) are made.They bring to companies advice, market strategies, "contact lists" or innovative methods of public impact. They offer a new, more "proactive" culture to influence the public sector rather than a "reactive" response to a problem that may arise from administrative decisions. For example: "It is different to go and knock on a politician's door to have a proposal considered, than to do so after they have seen an opinion piece in a newspaper or attended a debate forum," says a person linked to the sector. That is to say, there are opinion leaders who, without saying so, agree to be paid by these consultancies to defend private interests, with fees of 2,000 euros per month, according to knowledgeable sources. A task that is far removed from the informative task carried out by traditional media.Who are we talking about?

The names heading the crown jewels –at least by seniority– of public affairs consultancies are Estudio de Comunicación (founded in 1983), Llorente y Cuenca (1995), the Swedish Kreab (1979), the American McKinsey (also landed in Spain about forty years ago), Atrevia (1988), Roman (1989), or Omnicom Public Relations Group (1989). The so-called Spanish Big Four of auditing –Deloitte, PricewaterhouseCoopers, Ernst & Young, and KPMG– have also opened business lines in this area. Apart from these large corporations, in recent years what are called boutiques have appeared, which are small-format, with more direct contact with the client. "Less excel and more coffee," says a sector professional. Veterans of the political world have dared to launch their own projects. The great example in Madrid is the consultancy Acento, launched in 2019 by former ministers José Blanco (ex-PSOE) and Alfonso Alonso (ex-PP) and recently acquired by Havas Group. It has a strong Public Affairs department through which Fernando Moraleda (ex-PSOE) has passed, as senior advisor, or now the former official of the Generalitat Miquel Gamisans (ex-ERC). Specialists in the sector confirm that the people in charge send a message of direct line with Moncloa, whoever governs. Of recent creation, Bebarlet also stands out for new communication strategies and new politics, driven by Adrià Jofre and Nacho Corredor, who was an advisor to the Spanish government. Also from Catalonia, projects have been launched such as Pascal and Partners, by former PDECat coordinator Marta Pascal; SIMA Consulting, whose promoter is Raül Múrcia, a former ERC official in the Ministry of Interior, and which has recently hired former police chief Eduard Sallent; or former ERC minister Roger Torrent, who has founded Dualys, with former police director Pere Ferrer, to advise Catalan companies on defense. Vinces (founded in 2009) can also be considered one of the most relevant boutiques –if we consider the footprint of former politicians or former senior officials–. Behind it is David Córdoba and it has former senior officials from ERC such as Joan Capdevila and Carolina Telechea, or from the PP, Ricardo Riquelme. Córdoba, in parallel, has launched a media outlet focused on parliamentary proceedings, where he has also involved former PSOE senior official Francisco Gómez Loarte from Moncloa. Vinces specializes in influencing regulation –ensuring that what is legislated does not harm its client–. On the other side of the boutiques is the historic Roman, led by Silvia Alsina, which has great prestige for achieving a good reputation for its clients. There are also those focused on a specific territorial area because some autonomous communities have their own competencies: this would be the case of Catalonia, with Moodin; the Basque Country, with Silvan&Miracle; or the Canary Islands, where 22Grados stands out.

Large firms also often incorporate former public officials as senior advisors. Joan Navarro and former minister Jordi Sevilla, linked to the government of José Luis Rodríguez Zapatero (PSOE), or José Luis Ayllón, former chief of staff to Mariano Rajoy (PP), have been linked to Llorente y Cuenca. Former minister Àngels Chacón (exPDECat) is in charge of the firm in Barcelona. At Atrevia, the former mayor of Barcelona from the PSC, Joan Clos, stands out; or at Harmon, the former socialist Eduard Madina; while Josep Antoni Duran i Lleida (ex-CiU) has worked for Burson. At Kreab, there have been names such as former Minister of Justice Rafael Catalá (ex-PP), Xavier Cima (ex-CiU), or Miguel Ferre (former Secretary of State for Finance under the PP), who left the job following his indictment in the Montoro case, at the center of which is the consultancy Equipo Económico. Nor do the Big Four do without people from the administration. For example, Andoni Ortuzar, former leader of the PNB, worked at PwC as an external advisor. Why is the profile of a former politician interesting for these companies? The sources consulted assure that they know how ministries and the legislative procedure work, they have the experience and know the informal codes, in addition to the ideal moment to act. Politics also provides them with transversal knowledge for public affairs. But not only that?: they have the contact list, and this is what generates more controversy, as some boutiques –critics from the sector itself– sell the former politician's name more than their concrete experience.

“The problem arises when the former politician uses this network capital in gray areas that can border on influence peddling,” states Irene Matías, vice president of the Association of Public Relations Professionals (APRI). For this reason, APRI has been demanding government and parliamentary regulation of lobbyists —a registry— for almost two decades, which is currently non-existent at the state level, although it does exist in some autonomous communities, such as Catalonia, which was a pioneer. They consider it essential to “normalize the profession,” ensure access for all entities on “equal terms,” and provide transparency about who influences and engages in this activity. To do so, one tool would be regulatory fingerprinting, to know which interests have intervened in a regulation. “And what do current politicians think of this sector? Several consulted deputies assure that these public affairs consultancies usually act as intermediaries to put them in contact with companies so that they can explain their problems, interests, and proposals. They are also interested in having extra information on the status of parliamentary proceedings, as this is key to knowing when public campaigns should be intensified. A good lobbyist, argues one deputy, is someone who knows who to approach, who submits amendments to parties that may have ideological alignment. However, another parliamentarian reflects: “Companies could also contact me directly. My email is public.”The lack of regulation

To control revolving doors, the Office of Conflict of Interest (OCI) is responsible for ensuring there is no incompatibility regarding former government officials. By law, they must wait two years before taking a job that could generate a conflict of interest. However, it has been common for this body to validate all these hires. In the case of deputies, the OCI does not operate and there is no body that controls what they do afterwards because "they have not managed" as government officials do, according to Joan Ridao, a lawyer in the Parliament and a specialist in the field. Only during the parliamentary term does the Deputy's Statute Commission examine possible incompatibilities. Ridao considers it essential to move forward with regulation to bring transparency to the sector. Currently, the bill on public integrity is being processed in Congress, but it is stalled.Matías (APRI) notes that the business has grown significantly in the last twenty years, driven by the wave of lobbyists in Brussels. "Growth occurs in the most regulated sector," he clarifies. The price of services also varies depending on the company and location. "In Madrid, you pay more than in Barcelona. It's the capital effect," says one of the professionals in the sector, who jokes: "The rip-offs are easier" in the Spanish capital, to the point of talking about a possible "bubble." Another voice, however, normalizes the growth of consultancies as a global trend, also in the Catalan capital. Laia Bosch, APRI coordinator in Catalonia, explains that the regulatory advances of the Generalitat in areas such as housing, tourism, and mobility have highlighted the need for specialized consultancies. She also points to the most important economic sectors such as industrial, healthcare, and digital.

A clear indicator of the sector's boom is that specific training is beginning to emerge, such as that promoted by AP Institute, an academic entity chaired by Joan Navarro, for many years a recognized professional in public affairs. This same entity notes a 25% growth in the sector, with a state-level forecast of 200 million euros in business volume by 2030 and about 5,000 active professionals.