Europe's Parliament Takes a Stand

Long a backwater, the institution has begun to flex its muscles on issues central to the transatlantic relationship. America should listen up.

BY HENRY FARRELL, ABRAHAM NEWMAN | FEBRUARY 26, 2010

Most Americans, if they think about the European Parliament at all, probably imagine a bunch of left-wing backbenchers goofing off in Brussels or Strasbourg with little of value to say on international security. But Americans may have to update their opinion -- and their approach to transatlantic cooperation -- now that the European Parliament has made a most unparliamentary gesture: blocking a deal on sharing bank data with the United States. U.S. policymakers saw this deal as a cornerstone of international counterterrorism efforts, but now, those efforts are on hold. The EU Parliament's move is a sign that it wants to be a player in transatlantic security decisions -- and the United States will just have to accept it.

The current conflict concerns data sharing between a European banking consortium called SWIFT and U.S. security agencies. After the September 11 attacks, the U.S. Treasury Department and the CIA began secretly requiring that SWIFT provide the U.S. government with information on all international banking transfers.

In 2006, the New York Times ran an exposé uncovering the program. As SWIFT is based in Belgium and European privacy laws prevent such data transfers, this sparked an international controversy that led to negotiations between the European Union and the United States. The Treasury Department argued that the program was invaluable for counterterrorism operations, as it allows U.S. intelligence agencies to pinpoint suspicious financial flows and has in fact prevented terrorist incidents. In the end, an agreement was reached between the United States and Europe that allowed for the sharing of some bank data. In particular, it specified the conditions under which information could be accessed and set up several mechanisms to prevent the wonton abuse of data by U.S. authorities.

But the European Union didn't quite reckon with the European Parliament, which has grown increasingly powerful over the last two decades as an important proving ground for up-and-coming politicians. More importantly, the European Union's Lisbon Treaty, which entered into force in December, gave the European Parliament new powers over homeland security -- including oversight over ad hoc deals such as this one.

EU member states tried to play it clever by finalizing the bank-data deal the day before the Parliament's new powers on homeland security went into effect. But they were too clever by half. To give the agreement the patina of legitimacy, the European Union put it before the Parliament as an up-or-down vote. The attempt to weasel the deal past the Parliament only succeeded in enraging parliamentarians who were already unhappy about the compromise worked out with the United States. In a stunning rebuke to the EU presidency that negotiated the deal and flexing their new powers under the Lisbon Treaty, the Parliament voted to kill the deal by a significant majority (378 to 196).

The Parliament's stand has broad repercussions for transatlantic politics, signaling that the days of quiet backroom handshakes between European and U.S. officials are over. If the United States wants to avoid a series of confrontations and public controversies with Europe, it needs to pay attention to its legislature and understand the two key concerns that drive it.

First, the Parliament wants to become a real player in foreign policy -- not just a rubber stamp. As the Parliament has sought new powers within Europe, it has again and again proved itself willing to block policy deals if it is not consulted. However, after it has won a place at the table, it has shown itself willing to play a constructive role.

GEORGES GOBET/AFP/Getty Images

 

Henry Farrell is associate professor of political science and international affairs at George Washington University. Abraham Newman is assistant professor at Georgetown University's Edmund Walsh School of Foreign Service and author of Protectors of Privacy: Regulating Personal Data in the Global Economy.

DAVID E. CONNOLLY JR.

5:14 AM ET

February 27, 2010

With Patriot Act in Tow, America Seeks Foreign Surveillance

Now that congress has reauthorized the Patriot Act, without any privacy concerned having been addressed, we suggest that America form a privacy oversight commission for the Europeans? With our track record, and the administration's recent frenzy of anti banker, anti investor rancor bubbling up, it is no wonder Europeans are aghast to find the CIA in their bank transactions. This administration has forced the Swiss to break their own banking privacy laws, which had been in effect for centuries, to reveal the names of private account holders for the purpose of vengeant class warfare, and sour grapes. The United States government has also landed shady deals with Microsoft for back door codes, that would allow government snoops into all computers using Microsoft windows, for the purpose of "information gathering." Then there is the massively scaled domestic eavesdropping program, and the carnivore software... If people really knew how much the government disrespected their privacy, there might well be a second revolution.

 

NORBOOSE

4:36 PM ET

February 27, 2010

Ignore Him

Attention everyone, dont legitamize this hodge podge of paranoia, irrelevence, and poor argument construction.

 

NORBOOSE

4:40 PM ET

February 27, 2010

Finally

I hope the EU does start to take stands. The EU likes to think we overbear it while we like to think that the EU's impotence forces us to get involved. I would love to have a Europe that can actually do stuff. Unfortunatley, Europe has already shown itself to be good at snipping at us in petty ways, so Im, not sure if this means anything.

 

MR. SNIPS

10:10 PM ET

February 27, 2010

Wrong

I'm sorry. I mean no disrespect to the authors, who I am sure did their research and fact checking. But, seriously, I am supposed to sit here and listen to an argument that's premise is 'the europeans denied CT financial information, they are now international players?' To be frank the Europeans have no say in CT policy as their decisions in CT matters abroad (Afghanistan in particular) continues to be sub par. If I was the United States Foreign Service I would do two things. The first would be to negotiate with European nations directly and behind closed doors.. Why?Because it is in both the America's and Europe's interests to safeguard financial abuse at the hands of international terrorists. And EU leaders know this. Second, this option is harsh, but let the Europeans deal with their own security. The US needs this information as much as the Europeans need to give it. This is politicking at it's finest and won't last more than 6 months.