An ethics panel has cleared the former European commission chief José Manuel Barroso of breaking an EU integrity code for taking a job at Goldman Sachs, but questioned his judgment in moving to the bank.



An independent panel said that Barroso had not shown the considerate judgment expected of someone who had held high office for many years, but concluded there were “not sufficient grounds” to determine that he had broken the commission’s ethical code.



The former Portuguese prime minister led the European commission for a decade until 2014. His move to Goldman Sachs to advise the bank’s clients on Brexit triggered an avalanche of criticism.

More than 150,000 people signed a petition drafted by EU staff criticising his decision as “morally reprehensible”, a French government minister rebuked him on the floor of the national assembly, and the commission launched an unprecedented ethics inquiry into the move.



The investigation centred on whether Barroso had violated the EU’s code of conduct that requires senior officials to “behave with integrity and discretion” once they have ceased to hold high office. The petition drafted by EU staff alleged their former boss had broken the code by working for a bank that was implicated in the global financial crash and the Greek debt crisis, thus sullying the reputation of the entire European project at a time when it was rocked by the vote for Brexit.



But in an eight-page report, published on Monday, the independent panel concluded there were “not sufficient grounds to establish a violation of the duty of integrity and discretion” and accepted Barroso’s assurances that he would not be lobbying on behalf of the bank’s clients.

The panel did not reach a conclusion on whether the EU’s reputation had been damaged by Barroso’s move. Whether fears of reputational harm were justified or not, “this damage has now been done”, the committee said, adding that its remit was not to assess the wisdom or blameworthy nature of Barroso’s actions.

The panel said former commissioners had a right to work in the private sector, adding: “Goldman Sachs may be considered at the vanguard of aggressive capitalism but as long as it respects the rule of law, it is in itself not against the law to accept a position at the bank.”



Goldman Sachs made no comment on the panel’s decision. Photograph: Richard Drew/AP

The three-person panel consisted of the former MEP Dagmar Roth-Behrendt, the former European court judge Christiaan Timmermans and the former commission official Heinz Zourek.



A spokesperson for Goldman Sachs said neither the bank nor Barroso would be commenting on the report. In a recent letter to Brussels, the former commission chief accused his successors of “baseless and wholly unmerited” discriminatory action against him and his new employer. The bank has said that it follows rules set by global regulators.



But the case may not be completely closed. The EU ombudsman, who is responsible for upholding standards in the European institutions, said she could launch an inquiry.

“Given the concern that continues to be expressed about Mr Barroso’s appointment and the existing code of conduct, the ombudsman will now reflect on the next steps, including a possible inquiry,” her office said.

Emily O’Reilly, who served as Ireland’s ombudsman before taking the EU job in 2013, told the Guardian recently that the Barroso case would make the commission “deal with the revolving doors issue in a more serious way”.

The campaign group Transparency International described the ethics panel’s conclusions as very disappointing and questioned the independence of the body.



“Barroso’s move is just one of several revolving door cases in the last few months which point to a wider problem of integrity for the EU institutions,” said Daniel Freund of Transparency International. “It’s time for Brussels to up its game on ethics.”

The campaign group wants to reform the code of conduct for European commissioners, including extending cooling-off periods to three years. Current rules require ex-commissioners to have new jobs vetted for 18 months after leaving office. Barroso took up his bank position 20 months after leaving the commission.