An Alternative Economic Governance for the European Union


Book Description

The main goal of this report is to analyse those elements underpinning the economic governance in the European Union. In light of the current economic crisis, re-thinking the economic EU architecture, and in particularly that of the euro zone, appears more needed than ever. 0Vence argues that the crisis hitting the EU since 2007 is not only economic, but is, to a great extent, political. To him it represents the failure of a certain model of European integration which has proved to be all too fragile. 0Analysing the current financial, economic and political structure of Europe it becomes clear that there is an important choice to be made in terms of crises-exit policies: (1) continuing with the existing exit strategy, which will very probably lead to an economic impasse in the short to medium term, or (2) accepting the need to adopt a new paradigm, implementing deep institutional changes that steer up European economies.




Wage bargaining under the new European Economic Governance


Book Description

Within the framework of the new European economic governance, neoliberal views on wages have further increased in prominence and have steered various reforms of collective bargaining rules and practices. As the crisis in Europe came to be largely interpreted as a crisis of competitiveness, wages were seen as the core adjustment variable for ‘internal devaluation’, the claim being that competitiveness could be restored through a reduction of labour costs. This book proposes an alternative view according to which wage developments need to be strengthened through a Europe-wide coordinated reconstruction of collective bargaining as a precondition for more sustainable and more inclusive growth in Europe. It contains major research findings from the CAWIE2 – Collectively Agreed Wages in Europe – project, conducted in 2014–2015 for the purpose of discussing and debating the currently dominant policy perspectives on collectively-bargained wage systems under the new European economic governance.




European Economic Governance


Book Description

In the course of its development the EU has had to deal with an expanding policy agenda, covering ever more subjects and an increased diversity of instruments. It has also had to deal with an increased number of member states and an extended range of partners (regional authorities, non governmental organisations). These developments have greatly increased the risk of inconsistencies between the various policies pursued and between the various levels of competence for the same policy. Inconsistent policies are less effective than they ought to be. So, they imply a welfare loss. The EU has tried to cope with the challenge of consistency by adapting its governance. Traditionally it uses mainly the regulatory method. The effectiveness of this method has recently come into question. So alternative methods are now favoured. One is the financial method; which implies more expenditure via the EU budget. The other is coordination. The application of both methods has certain advantages and disadvantages. The problem for policy makers is then to determine the choice between the modes first and the optimal level of budgetary and coordination efforts next. Notwithstanding its obvious policy relevance the problem has got little attention from academia. This book sets out to contribute to a solution by following two approaches. The first is a systematisation of the theoretical and conceptual underpinnings of the financial and coordination methods. The second is an empirical investigation into a range of European policy processes, implying to different degrees budgetary outlays and coordination.




Governance in the European Union


Book Description

A fresh alternative to traditional state-centred analyses of the process of European integration is presented in this book. World-renowned scholars analyze the state in terms of its component parts and clearly show the interaction of subnational, national and supranational actors in the emerging European polity. This `multi-level politics′ approach offers a powerful lens through which to view the future course of European integration. The contributors′ empirical exploration of areas such as regional governance, social policy and social movements underpins their broad conceptual and theoretical framework providing significant new insight into European politics.




New Modes of Governance in Europe


Book Description

Based on the research of the EU-6th framework funded research consortium on 'New Modes of Governance in the European Union', this volume explores the roots, execution and applications of new forms of governance and evaluates their success.




Exacerbated Economic Governance in the European Union - Or When Did We Forget About Democratic Legitimacy?


Book Description

This paper explores how legitimate are the new governance mechanisms adopted in the context of the Economic and Monetary Union for addressing the economic crisis. To that aim, the relation between governance mechanisms and democratic legitimacy is explored, distinguishing between governance as effective implementation, governance as a complement of democratic legitimacy and governance as an alternative to democratic legitimacy. When compared against the original design of the Economic and Monetary Union in Maastricht, the new institutional arrangements and decision-making mechanisms, resulting either from a supranational strategy (the 'Six Pack', strengthening the coordination of national economic policies) or an intergovernmental strategy (the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union), seem to get the European Union further away from the theoretical assumptions of democratic legitimacy. In particular, concerns from a constitutional perspective, in both national and European levels, are raised.




A triumph of failed ideas: European models of capitalism in the crisis


Book Description

The current crisis in Europe is being labelled, in mainstream media and politics, as a ‘public debt crisis’. The present book draws a markedly different picture. What is happening now is rooted, in a variety of different ways, in the destabilisation of national models of capitalism due to the predominance of neoliberalism since the demise of the post-war ‘golden age’. Ten country analyses provide insights into national ways of coping – or failing to cope – with the ongoing crisis. They reveal the extent to which the respective socio-economic development models are unsustainable, either for the country in question, or for other countries. The bottom-line of the book is twofold. First, there will be no European reform agenda at all unless each country does its own homework. Second, and equally urgent, is a new European reform agenda without which alternative approaches in individual countries will inevitably be suffocated. This message, delivered by the country chapters, is underscored by more general chapters on the prospects of trade union policy in Europe and on current austerity policies and how they interact with the new approaches to economic governance at the EU level. These insights are aimed at providing a better understanding across borders at a time when European rhetoric is being used as a smokescreen for national egoism.







Economic Governance in the European Union - Fiscal Policy Discipline versus Flexibility


Book Description

This contribution examines fiscal policy co-ordination in the Economic and Monetary Union (EMU) and discusses whether the amendments of the Stability and Growth Pact proposed in the past, some of which have since been implemented, enhance budget discipline. In doing so, it provides a detailed analysis of the legal provisions on multilateral surveillance and the excessive deficit procedure based on the concepts of open and closed method of coordination. Arguably, it is the mixing of these two distinct concepts which stands at the heart of the current controversies. This has to be taken into account when assessing the recent proposals to introduce greater flexibility. Indeed, rather than introducing more flexibility, the analysis of the current system presented in this contribution suggests that those elements of economic coordination which prevent the existing rules from being implemented properly should be amended, thereby to some extent depoliticising economic coordination. The contribution begins with a discussion of the fiscal policy rules previously in place, followed by a political-economy analysis of these rules. Thereafter the reform proposals of the Commission, as well as other proposals for institutional reforms, including those originally foreseen in the Treaty establishing a Constitution for Europe, are examined. It is concluded that the reforms of the pact do little to redress the failure of some Member States to consolidate their public finances in times of economic prosperity.