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Forging a new Mittelstand compromise : lobbying strategies and business influence after the financial crisis

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  • Keller, Eileen

Abstract

How did business interests succeed in influencing the post-crisis financial sector reform agenda? The present article draws on a remarkable instance of lobbying success in the process of reforming the Capital Requirements Directive (CRD4-CRR), which regulates banking within the European Union. Business lobbyists from Germany, supported by representatives from other countries, obtained a more favourable regulatory treatment of bank lending to small- and medium-sized corporations (SMEs) compared to the stipulations of the internationally agreed upon Basel III framework. An in-depth study of the formation of this new so-called SME compromise shows that existing approaches, which either highlight the special role of business in shaping public policies or the constraining effects of increased political salience and the politicisation of an issue cannot account for the dynamics of business influence in the case in question. Whereas an inside evidence-based strategy of influence failed, lobbying was successful because business representatives actively increased the salience of the issue through an outside lobbying strategy.

Suggested Citation

  • Keller, Eileen, 2015. "Forging a new Mittelstand compromise : lobbying strategies and business influence after the financial crisis," Economics Working Papers MWP2015/19, European University Institute.
    • Handle: RePEc:eui:euiwps:mwp2015/19
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    References listed on IDEAS

    as
    1. Ernesto Dal Bo´, 2006. "Regulatory Capture: A Review," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(2), pages 203-225, Summer.
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    5. Patrick Bernhagen & Thomas Bräuninger, 2005. "Structural Power and Public Policy: A Signaling Model of Business Lobbying in Democratic Capitalism," Political Studies, Political Studies Association, vol. 53, pages 43-64, March.
    6. Anne Binderkrantz, 2005. "Interest Group Strategies: Navigating Between Privileged Access and Strategies of Pressure," Political Studies, Political Studies Association, vol. 53, pages 694-715, December.
    7. repec:cup:cbooks:9780521134132 is not listed on IDEAS
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    More about this item

    Keywords

    SME compromise; business influence; lobbying strategies; CRD4-CRR; Basel III; capital requirements; regulatory reform; financial crisis; banking regulation;
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