Economic and Monetary Union: Pillar of a Federal Polity

The Masastricht Treaty commitment to the economic and monetaryunion (Emu) follows a lengthy process of building up monetaryintegration, starting with the European Monetary System (1979),then, in the 1980s, the free movement of capital and integrationof financial markets. Emu, representing the final stage of thisprocess, is seen by most federalists as a pillar in the structureof the European Union, contributing to its development by stagesinto a federal polity. With the economic and monetary union,the European Union's economic and environmental powers are becomingcomparable to those of some federations, and with institutionsthat have over time acquired substantial federal elements, furtherreforms may well make the European Union into a federal system.This article identifies the forces, interests, and methods involvedin an incremental process that may be called a new federalism.     

Brussels between Bern and Berlin: Comparative Federalism Meets the European Union

In the current debate on the future European order, the European Union (EU) is often described as an "emerging federation." This article claims that federalism is not exclusively useful in deliberating about the future of the EU. Non-statecentric conceptions of federalism provide a better understanding of the current structure and functioning of the European system of multilevel governance than most theories of European integration and international relations do. We combine political and economic perspectives of federalism to analyze the "balancing act" between effective political representation and efficient policy-making in the EU. Drawing on the examples of Germany and Switzerland in particular, we argue that the increasing delegation of powers to the central EU level needs to be paralleled by strengthened patterns of fiscal federalism and an empowered representation of functional interests at the European level. Without such "rebalancing," the current legitimacy problems of the EU are likely to intensify.     

Federalism and the European Parliament

The European Parliament has been a source of controversy sinceits inception. Its direct election was seen as endorsing a federalstructure and political future for the European Community (laterEuropean Union). Changes in its authority and legislative powerswere seen as symptomatic of creeping federalism and the emasculationof member states' national sovereignty. The European Parliament'sconscious contribution to developing federalism and constructinga federal Europe relate to its direct election, its powers,and its proposals to hold a constitutional convention. The Anglo-Saxonmisconception of federalism is analyzed, the role of a billof rights examined, and the failures of democratic legitimacyexposed with a view to see what contribution federal bargainsmay make to close the democratic deficit and to impel a reviewof the current institutional arrangements.     

How Europe Shapes the Nature of the Belgian Federation: Differentiated EU Impact Triggers Both Co-operation and Decentralization

This paper disentangles the impact of various dimensions of European integration on different aspects of the Belgian federal polity. We discern two opposite trends. While the institutional embeddedness of Belgium as an EU member state results in domestic centralizing tendencies and co-operative political practices, economic integration stimulates political pressures for regional autonomy, contributing to further divergence and hollowing out of the federal level. We conclude by arguing that the EU clearly affects territorial politics in Belgium, but, as the European causes are multidimensional, that also the effects, albeit substantial, will be diverse.     

The Eurozone crisis and the European corporate elite: bringing corporate actors into focus

This paper uses a framework referred to as the ‘corporate reconstruction of European capitalism theory of integration’ to analyse the European Union’s response to the Eurozone crisis. Most political economy analyses of the Eurozone crisis have focused on political leaders, clashes between creditor and debtor member states and public opinions in analysing the handling of the crisis. This paper focuses instead on the input of corporate actors. It is argued that both the setting up of the European Monetary Union (EMU) and the handling of its crisis were congenial to corporate preferences. Europe’s nascent corporate elite was concerned with eliminating currency risk when the EMU was set up and therefore did not push for fiscal federalism. When the flawed architecture of the Eurozone transformed that currency risk into sovereign credit risk, corporate preferences adapted and now favoured fiscal liability pooling and ultimately the setting up of a fiscal union.     

Varieties of Capitalism and the Euro Crisis

This article examines the role played by varieties of capitalism in the euro crisis, considering the origins of the crisis, its progression, and the response to it. Deficiencies in the institutional arrangements governing the single currency are linked to economic doctrines of the 1990s. The roots of the crisis are linked to institutional asymmetries between political economies. Northern European economies equipped to operate export-led growth models suitable for success within a monetary union are joined to southern economies whose demand-led growth models were difficult to operate successfully without the capacity to devalue. The response to a tripartite crisis of confidence, debt, and growth is explained in terms of the interaction of institutions, interests, and ideas, and its importance for the future of European integration is explored.     

Europäisierung regionalen Regierens: Mit Sinatra zum „autonomieorientierten Systemwechsel“ im deutschen Bundesstaat?

Within the last years integration theory is focusing on studies analysing the impact of Europeanization on national and regional governance. This contribution demonstrates that the German Länder till the mid 90’ies have developed and still follow a twofold strategy in representing their interests in the European interactive system: interest representation through the German federal system and direct interest representation at the European level. Since some years the guiding ideas of the Länder have changed. Thus, the further development of co-operative and interactive policy-making was no longer on top of the agenda. Despite, the Länder asked for a clear cut of competence within the multi-level system — what is called here Sinatra-strategy, according to the song “I did it my way …”. This discussion at the European level is linked with the demand for reforming German federalism in the sense of “competitive federalism”. The contribution asks whether the Sinatra-strategy at the European level could have an impact on the German co-operative federalism and could help to transform it towards a more “autonomy oriented system”.     

Constitutional political economy in the European Union

This article surveys recent research in constitutional political economy in Europe. Although not all of the works discussed necessarily focus only on European constitutional issues or are written by Europeans, European constitutional issues figure importantly in each area surveyed. The article examines the literatures linking constitutional institutions to economic growth, government size, government deficits and corruption, bicameralism, direct democracy and federalism. Three exclusively European topics also are covered: constitutional issues in the transition countries, the structure of the European Union and the draft constitution for the European Union.     

Zur Politisierung der Europäischen Union

The constitutional treaty of the EU failed. Why so? Does this failure indicate the end of European integration and the beginning of re-nationalization of European politics? This contribution argues that the failure of the constitutional treaty is due to a process of politicization of the EU. As a result, political processes beyond the nation state are judged increasingly not just on the basis of their effectiveness, but also in terms of the criteria for good political order, such as fairness and legitimacy. The respective governments of the EU member states, however, publicly still take an instrumental approach to the EU. This is doomed to failure and thus the future of the European project is open. Either politics adapts to the new evaluation criteria for European integration or a partial re-nationalization of European politics is indeed likely.     

Using the "F" Word: Federalism in Indonesia's Decentralization Discourse

Indonesia cast off Dutch-imposed federalism in favor of a unitarystate. Soeharto's centralization made federalism taboo in theNew Order. In the current reform period, however, the conceptis re-emerging, but federalism has yet to be discussed in anopen, inclusive, and balanced manner. Decentralization policyis focused on the district, neglecting the political demandsof the larger province. This policy is accompanied by a confusedand misleading official discourse that is consistent with theideology of power retention and maintenance of patrimonial governance.As a result of greater democratization of the polity, federalismis slowly entering official discourse. Although its prospectsin the short term remain dim, support may grow for federal principleswithin Indonesia's unitary structure.     

Between deepening and widening: Role conflict in Germany's enlargement policy

Although Germany is the principal proponent of the EU's eastern enlargement, it has at times found it difficult to reconcile this aim with its desire to promote deeper EU integration. The use of role theory illustrates these conflicting priorities. West Germany's post‐war role in European politics was that of a promoter of deeper integration; the deepening of West European integration thus became part of the self‐conception of West German foreign policy‐making élites. The changed situation after 1990 placed new demands on German foreign policy makers. West Germany's traditional self‐conception as an integration deepener conflicted with the desire on behalf of unified Germany to press for EU enlargement. However, although German policy makers employed a variety of strategies in order to pursue their incongruous foreign‐policy aims, their principal concern remained with the deepening of western integration.     

Recasting German federalism? The politics of fiscal decentralization in post-unification Germany

Why did the ideas of fiscal decentralization gain such political currency in Germany in the late 1990s but meet such a relatively dismal political fate by the Summer of 2001? In answering this question, I propose a framework centered around the interaction of ideas and state institutions to study the politics of fiscal decentralization in advanced democratic nation-states. First, I show that the new set of politically-charged ideas of fiscal decentralization which gained political weight in Germany in the late 1990s were driven by economic problems associated with German unification, the increasing popularity of “fiscal federalism” in German policy circles, and a centerperiphery conflict within German political parties. Second, my analysis explains the political failure of these ideas despite their apparent popularity among political and policy elites. Here, I focus on the role of the upper house of the German parliament in order to explain why these ideas have had such little policy success. After demonstrating that the long-standing tradition of “cooperative” federalism has largely survived German unification, the paper concludes by discussing the potential impact of the European Union’s 1997 Growth and Stability Pact on German federalism.     

Economic globalization, job insecurity and the populist reaction

A striking change in the political party systems of many established democracies in recent years has been the rise to electoral and political prominence of right-wing populist parties. Moving beyond the usual anti-statism and racism attitudinal explanatory foci, this article posits that popular support for these parties is associated with the job insecurity that populist party leaders have attributed to deepening international economic integration, or economic globalization. The conceptualization of job insecurity is discussed and its expected relationship to the mercantilism of right-wing populist parties clarified. The hypothesis is tested in the specific context of support for Pauline Hanson’s One Nation Party in the 1998 election to the Australian federal House of Representatives. The article concludes with a consideration of the wider implications of its findings.     

Political yardstick competition, economic integration, and constitutional choice in a federation:

This paper investigates the behavior of rent-seeking politicians in an environment of increasing economic integration. The focus of the paper is on the implications of globalization-induced political yardstick competition for constitutional design with a view to the current discussion in the European Union. In contrast to the established literature, we carefully portray the double-tiered government structure in federal systems. The number of lower-tier governments and the allocation of policy responsibilities to the two levels of government are subject to constitutional choice.     

The Meaning of Federalism in The Federalist: A Critical Examiniation of the Diamond Theses

Language poses a serious problem in political discourse whenterms like federalism come to mean anything, everything, andnothing. An issue of some importance is how "confederation"was conceptualized in The Federalist, how that conceptualizationwas subject to critical analysis, especially in Federalist 15and 16, and how the resolution of that critique contributedto the conceptualization of a federal system of governance.This essay was written in response to a re-reading of MartinDiamon's essay on "The Federalist's View of Federalism." Theposition taken is that the theory of constitutional choice usedto articulate the arguments in The Federalist provides the appropriatelogic for construing the meaning of federalism despite the ambiguitiesof language contained in The Federalist.     

The European constitution project from the perspective of constitutional political economy

Three topics of a European constitution are discussed. First, basic arguments from constitutional political economy that aim at restricting representatives’ potential misuse of powers in a European Union with extended competencies are summarized. Since a European demos does not yet exist, an extension of competencies of the European Parliament is not sufficient in order to legitimate political decisions at the EU level. The introduction of elements of direct democracy in the European constitution would shape the creation of such a demos and lead to a stronger control of the European legislature and executive. Second, the introduction of direct democracy in the European constitution is proposed in order to reduce the European democratic deficit. Third, the creation of a European federation requires a more transparent assignment of competencies and rules to resolve conflicts between different centers of power. A European federation should be organized according to the principles of competitive federalism.     

The Literature on Nigerian Federalism: A Critical Appraisal

There is a large body of literature on federalism in Nigeriacovering such major issues as the origins of Nigerian federalism,requisites of federalism, federalism versus other forms of association,the number of state units in the federal system, fiscal issues,political parties, distributional issues, and intergovernmentalrelations. However, a number of issues have received relativelylittle scholarly attention, including the economic aspects ofNigerian federalism, population movements and the federal arrangement,language policies, federal ethics, and various critical governmentaland nongovernmental institutions. There is a need to establishinstitutions for the study of federalism in Nigeria and to reduceethnic and ideological biases in research on Nigerian federalism.     

Responding to the crisis: Eurosceptic parties of the left and right and their changing position towards the European Union

At the time of the election of the European Parliament (EP) in 2014, the European Union (EU) was heavily affected by a multifaceted crisis that had – and still has – far-reaching implications for the political system of its member countries, but also for the European level of governance. Against the background of the strong Eurosceptic vote in the 2014 EP elections, this study aims to investigate in which way Eurosceptic parties of the left and the right respond to the multiple crises of the EU. Using data from the Euromanifesto Project from 2004/2009 and 2014, changes in the party positions towards the EU are analysed in the shadow of the multiple crises and the reasons thereof are explored. The findings show a general anti-European shift among the two types of Eurosceptic parties. Nevertheless, the changes in the EU polity tone are not determined by issue-based repercussions of the multiple crises, but by the EU-related evaluation – the polity mood – of the national citizenry. For far-right Eurosceptic parties, the shift is moderated by the level of public support for EU integration in their national environment. Among far-left Eurosceptic parties, by contrast, it is moderated by the more specific public attitudes about the monetary union policy of the EU. Consequently, political parties when drafting their manifestos for EP elections are not so much guided by the objective severity of political problems or by the evaluations of these problems by the citizenry. What matters in the end is the link that citizens themselves are able to establish between the severity of political problems, on the one hand, and the responsibility of the EU for these problems on the other. This has important consequences for understanding of the nature and substance of political responsiveness within the EU system of multilevel governance.     

Democratic 'Misfit'? Conceptions of Civil Society Participation in France and the European Union

The European Union's attempts to improve its democratic character increasingly often lead to debates about how to include civil society organizations in its decision-making processes. However, this interpretation of participatory democracy seems at odds with democratic traditions in a number of member states. Among those, France is said to be at the diametrically opposite end of the EU democratization debate spectrum. French democratic thought is based on government through electoral representation. The aim of this article is to analyze both theoretically and empirically the discourse and participatory processes in both the EU and France. While normative approaches to democratic patterns in the EU and French political debate show important differences, empirical evidence suggests that the misfit between the European and French conception of democracy is less developed than one might believe.