Political and institutional determinants of fiscal policy in the European Community

In recent theoretical and empirical research the variation in political and institutional arrangements which may affect the process of national policy formation is examined, in order to explain cross-country differences with respect to fiscal policies pursued. In this paper we build upon this literature and examine whether and how cross-country differences in debt accumulation and public sector size of Member Countries of the European Community during the 1980s can be explained. We conclude that the growth of government debt is positively related to the frequency of government changes and negatively to sound budgetary procedures. In countries with left-wing governments the growth of the share of government spending in total output generally tends to be higher.     

The first supranational policy in the European Union: Competition policy

Abstract. Competition policy has become a salient issue in the last decade. The purpose of this article is to widen discussion amongst political scientists of an issue that has been dominated by the disciplines of economics and law. The concept of a competition policy is the foundation stone of the entire European Union. It lies at the very heart of efforts to establish a common market and within the EU competition policy arena the decision making powers have laid firmly with the supranational institutions. This article provides an overview of the issue; it traces the constitutive foundations of policy and discusses the functions of the core EU competition policy actors. It is primarily concerned with the European Commission, in particular, DGIV. The paper accounts for DGIV's metamorphosis in the 1980s and the myriad of problems now confronting its procedures and efficiency in the 1990s. Whether these defects can be resolved will ultimately determine the fate of DGIV. Arguments for institutional reform are raging through the European institutions and DGIV provides no exception. The paper concludes with a discussion on the plausibility of the creation of an independent European Competition Office, modelled on the role of the German Federal Cartel Office.     

Competition policy and institutional politics in the European Community: State aid control and small business promotion

Abstract. The article examines EC competition policy from a political science perspective, analyzing the political and institutional considerations which inform the development of the Commission's controlling capacities in competition. It concentrates on policy towards small businesses in manufacturing. We argue that the Commission's general capacities in the formation and the administration of competition policy have been growing in both the merger-controlling aspects and in the control of state subsidization. Against this background, the handling of state aid to small businesses presents us with a paradox: the more developed the enforcement system in competition, the less the Commission applied it to national subsidization of small-scale production. The role of EC competition policy and particularly the subtle handling of state subsidies should be analyzed as part of the developing system of Community policy vis-à-vis small business, encompassing measures at the EC and national levels. Community policy has emerged as a result of an accommodation between different EC institutional and domestic political objectives, and to some extent this accommodation has been achieved at the expense of policy content. The article traces the development of Community policy in this area from the early 1970s to the adoption of the first-ever detailed policy guidelines in 1992, and suggests an analytical scheme for explaining the emergence of small business promotion as an issue in EC institutional politics.     

The social dimension of the Single European Market: National versus transnational regulation

Abstract. Labour market regulation in the 1980s was subject to transnational pressures for deregulation, especially in the form of 'flexibilisation'. The 'Single European Market' project (SEM) promises further development in this direction. At the same time, proposals for a 'Social Charter' are meant to introduce a European level of regulation to counteract the SEM's potential destabilizing consequences. However, regulatory disputes and pressures contrary to convergence are likely to be intensified by the SEM. Still further uncertainty will be created by changes in Eastern Europe, as well as by greater opportunities for cross-border production shifts. Neoliberal and neocorporatist variants of the 'competition state' will be increasingly at odds at both state and Community level, with the future of 'social Europe' at stake. To the extent that market integration means a globalisation of the European economy, it may effectively disintegrate its component parts, dividing those which have more solid foundations for growth - the well-regulated, high pay/high productivity areas - from those which do not. The market logic of the Single European Market programme will manifestly contradict the efforts of the Community to avoid this future.     

The use and non-use of policy appraisal tools in public policy making: an analysis of three European countries and the European Union

The increasing complexity of policy problems, coupled with the political desire to base new policies on the foundation of firm evidence, has accelerated the development of policy assessment tools. These range from complex computer models and cost benefit analysis through simple checklists and decision trees. In the last decade, many governments have established formal policy assessment systems to harness these tools in order to facilitate more evidence-based policy making. These tools are potentially widely available, but to what extent are they used by policy makers and what becomes of the evidence that they generate? This paper addresses these questions by studying the empirical patterns of tool use across 37 cases in three European countries and the European Commission. It uses a simple classification of tools into advanced, formal and simple types. It finds that even when tools are embedded in policy assessment systems, their use is differentiated and on the whole very limited, in particular when it comes to more advanced tools. It then explores these patterns from contrasting theoretical perspectives to shed light on why, when and how different policy assessment tools are used in the policy process.     

The European Community: A Balancing Act

The European Community has traditionally been analyzed usingtheories and concepts drawn from international relations ratherthan from federalism. This article emphasizes the balance betweenthe representation of territorial and nonterritorial interestsin the Community and argues that concepts drawn from federalismcan be useful in analytically understanding the Community aslong as the American model of federalism is not viewed as thenecessary federal referent. It describes the relative importanceof the territorial dimension within the major Community institutions—theCommission, the Council of Ministers, the European Council,the European Parliament, and the European Court of Justice.The Court of Justice, it is argued, is particularly importantin giving the Community a "federal" contour. However, its methodof operation differentiates it in important ways from the Americanjudiciary. The role of territorial politics within the Communityis such that the Community's policymaking process, while unique,is certainly recognizable to students of comparative federalism.     

European Community politics and electoral representation: Evidence from the 1989 European Elections Study

Abstract: In spite of the fact that the European elections were, in most countries, not fought over the issue of Community building and European integration, this article shows that only a few parties take positions towards the Community which are clearly out of line with the average position of their voters. The parties involved are the orthodox-Protestant combination in the Netherlands, the Workers Party in Ireland, the Italian MSI, and the greens in Germany, the Netherlands, Ireland and, to a somewhat lesser extent, Luxembourg. The discrepancies between these parties'positions and the attitudes of their electorates - in combination with their generally successful electoral performance - underscores what is known from other analyses: Parties do not acquire votes on the basis of European issue concerns, but on the basis of national political concerns. The result of the European elections may still, however, be considered as an ex post facto , endorsement and legitimation of parties'policies towards European integration.     

Scientific opinion in policymaking: the case of climate change adaptation

The urgent need for policy decisions often outpaces scientific discovery. At such times, policymakers must rely on scientific opinion. This is the case with many aspects of current climate policy, especially those involving untested but potentially necessary adaptations to reduce vulnerability to climate change. Unfortunately, scientific opinion is not currently defined, measured, or used in a standardized way, which often allows for the accidental or intentional dissemination of misinformation and the marginalization of science where science could be most beneficial. In this article, we argue that scientific opinion can be usefully measured by systematic surveys of scientists that employ standards similar to those that govern public opinion surveys, including systematic decisions about target populations, sampling frames, and sampling techniques. We demonstrate this approach with the methodology for a study of scientific opinion on a potential adaptation to climate change, the managed relocation of species. We show that survey results may be used to corroborate other types of information, refine or contradict other information, and offer novel insights into emerging issues, such as adaptations to climate change, that are currently not addressed with any other type of available information.     

Environmental policy and equity: The case of superfund

This article analyzes the equity implications of the EPA's Superfund program by examining the geographic distribution of sites, who pays for cleanup, and cleanup pace. Although the “polluter pays” principle is used to justify Superfund policy, it is a goal that is not—and indeed usually cannot—be attained for past contamination. Further, the geographic distribution of Superfund sites suggests that the likely beneficiaries of program expenditures live in counties that are on average both wealthier and more highly educated than the rest, and also have lower rates of poverty. The pace of the EPA's cleanups, however, depends mostly on the sites' potential hazard, and is not apparently motivated by the localities' socioeconomic characteristics or political representation. The program is found in several respects to be both inefficient and inequitable, yet Superfund enjoys considerable support for reasons beyond these traditional public policy goals, including its political and symbolic appeal.     

European monetary policy and the ECB rotation model

This paper analyses the voting power of individual members of the ECB Governing Council and, in particular, that of the Executive Board in the light of recent information published by the ECB. Using the randomization scheme based on the multilinear extension of games, we modify the standard analysis in three ways. First, we include heterogeneous preferences of the Governing Council members. Second, we address the agenda-setting power of the ECB president. Third, we take into account the dynamic decision setting. We show that the rotation model is able to stabilize the position of the core countries of the euro area.     

Five Danish referendums on the European Community and European Union: A critical assessment of the Franklin thesis

Abstract. Denmark had five referendums in the period from 1972 to 1998 dealing with Danish membership in the European Community, the Single European Act, the Maastricht Treaty, the Edinburgh Agreement and the Amsterdam Treaty. Did the Danes really address these issues and involve themselves actively in the policy–making process on a vital issue or did they merely vote for or against the current government? The latter option represents the 'second order' elections argument advanced by Mark Franklin and others (see Franklin's article in this issue). If correct in this instance, it may have important and negative consequences for the potential of referendums to involve citizens more directly in the way they are governed. In this article, the Franklin thesis is assessed on the basis of data on voting behaviour in five Danish referendums on Europe and the democratic implications of these findings are discussed.     

A Primer on the Budget of the European Community

The integration of twelve Western European countries into a single market in 1992 will make the European Community (EC) a major force in world affairs. To familiarize the reader with the EC, this article examines the EC budget-how is it prepared, what it includes, and how it is financed. Some selected comparisons with U.S. institutions and processes are also offered in order to facilitate understanding.     

Problems,politics, and policy streams in policy implementation

We apply Kingdon's multiple streams framework (MSF) to policy implementation to reflect a nested process separate from but interdependent with policymaking. Then, we generate a hypothesis concerning the conditional nature of problems, policies, and politics stream impacts on policy implementation. We test our hypotheses with state‐level implementation of the Clean Air Act, Clean Water Act, and Resource Conservation and Recovery Act, using a pooled data set of 10 years of toxic releases data. Findings suggest an important interaction occurs among problems, policies, and politics during the policy implementation process. More specifically, when any of the three is held at median levels, only marginal differences in outputs occur; however, when all three are increased to extreme levels, substantive differences emerge. Conclusions connect policy implementation to larger issues of MSF theoretical development and suggest implications for governance.     

Environmental policy and the reduction of hazardous waste

Environmental policy encouraging hazardous waste reduction began in 1976 with an Environmental Protection Agency statement promoting source reduction as the preferred method of hazardous waste management. In 1984, Congress included a policy statement supporting waste reduction in the Hazardous and Solid Waste Amendments (HSWA). However, the cornerstone of HSWA was the land disposal restrictions (LDRs)—a command and control policy prohibiting land disposal of untreated hazardous waste. Consideration of the hazardous waste generation decision in the aggregate would suggest that the price effect resulting from the LDR program and increased hazardous waste management prices in general would lead to source reduction. Although at the firm level there may be interdicting factors, statistical analysis of generation data for Tennessee support this hypothesis. Both the institution of the LDRs and waste management prices have significant negative effects on the level of generation. The analysis, however, reveals the existence of large industry and firm effects, indicating that the response to public policy may exhibit significant variance, especially at the individual generator level.