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Home»World»Europe»France
France

Regulation of consulting firms: “The government completely undermined the project”

May 17, 2024No Comments3 Mins Read
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More than three years after the McKinsey scandal, the French government has still not learned the lessons from the consulting firms scandal. Senators Eliane Assassi (French Communist Party) and Arnaud Bazin (The Republicans), who were behind the report that denounced the “tentacular” influence of consultants on the state machine in 2022, have concluded that the executive branch lacks the will to truly change its relationship with consultants. Their proposed law to regulate consultant interventions will return to the Senate for a second reading on May 28.

The senators are concerned about the lack of willingness from the government to truly change its relationship with consultants. They have accused the government of hindering their efforts to better regulate consulting firms. They point to various incidents that have shown the government’s lack of support for their proposed law, including a circular from Jean Castex in January 2022 aimed at reducing consulting expenses, which came just before their report was released, as well as Minister Stanislas Guerini’s refusal to prioritize their proposed law in the National Assembly.

During the examination of the proposed law in the National Assembly in February, the government showed a strong determination to weaken the law. The senators are particularly concerned about the amendments that were passed, which they believe have significantly watered down the original intent of the proposed law. For example, certain public institutions like Ademe or UGAP were excluded from the scope of the law, and the power of control and sanctions by the High Authority for Transparency in Public Life over consultants was eliminated. The concept of trade secrets was also introduced to prevent the publication of basic information on consulting contracts with the state.

The inclusion of local authorities in the scope of the future law has also been criticized by the senators, as these entities were not part of the original investigation and therefore not included in their proposed law. While they are not opposed to better regulation of consulting firms in local authorities, they believe that introducing this measure through an amendment without reliable data on the subject is premature. They argue that a proper investigation should be conducted before legislating on the matter.

Despite the challenges faced by the senators in pushing for better regulation of consulting firms, they remain committed to their cause. They believe that more transparency, ethics, and control are needed to address the influence of consultants on the state machinery. With the proposed law returning to the Senate for a second reading, they hope to make progress in ensuring that the government takes concrete steps to address the issues raised in the McKinsey scandal and prevent similar incidents in the future.

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