The Influence of EU Membership on Methods and Processes of Budgeting in Britain and France, 1970–1995

This article explores the impact European Union (EU) integration has had on methods and processes of budgeting in France and Britain from 1970 to 1995. It assesses whether convergence of budgetary institutions occurs and, if so, whether it is promoted by an obligation of compliance or by an hybridization effect. Compliance refers to changes in national budgetary institutions made compulsory by membership in the EU. Hybridization emphasizes that national and EU budgetary processes are increasingly interwoven and indivisible. Public budgeting is no longer purely national because part of the decision-making on national expenditure is made at the EU level and because the national budget is closely linked to the EU budget in financial and policy terms. Based on an institutional analysis, combined with elite interviewing, the article suggests that hybridization is a significant factor contributing to a convergence of budgetary practices in Britain and France. Underlying the argument is the fact that an increasingly important function of departmental actors involves negotiating with their EU counterparts at the EU level, in addition to the conventional budgetary game at the domestic level. Regarding compliance, there is an influence as testified by significant formal institutional convergence. However, compliance seems a less effective factor in influencing convergence than hybridization because it conveys a "negative" approach to convergence, based on enforcement and sanctions. The article suggests that the convergence of administrative systems is promoted by the growing similarity of administrative practices more than by the harmonization of rules.     

Regulatory capitalism and its discontents: Bilateral interdependence and the adaptability of regulatory styles

The expansion of global trade has produced new challenges for the effective governance of product safety. We argue that many of these challenges arise at the bilateral level from the interaction of more or less adaptable national regulatory styles. When regulatory styles are unadaptable they produce gaps in risk management, slow and contested resolutions to crises, and limited regulatory cooperation. To examine these claims empirically, we study bilateral food safety regulation in four major exporter–importer dyads: China–Japan; Canada–United States (US), China–European Union (EU), and the US–Japan. The China–Japan dyad is the most adaptable, combining China's “export segmentation” regulatory style with Japan's strongly “risk‐averse, interventionist” style. The Canada–US dyad operates effectively, bringing together Canada's “global market–conforming” regulatory style with the US strategy of “sovereign regulator.” The China–EU dyad is less adaptable because the EU's “harmonization” regulatory style makes it difficult for the EU to adapt to the weaknesses of the Chinese food safety system. Finally, the US's sovereign regulator style clashes with Japan's interventionist style, making them the least adaptable of the four dyads. The paper concludes with a discussion of the broader relevance of our findings for the development of regulatory capitalism.     

Globalization and legal change: The “Americanization” of European law?

Intensified global economic competition, economic liberalization, and the rise of EU governance have led some observers to argue that there has been a trend toward the “Americanization” of the European “way of law.” This article addresses that contention, focusing on legal change in European member states. It first describes ways in which the American legal tradition has differed most sharply from the national legal systems of Western Europe (including Great Britain) and the political and economic factors that account for this “American legal distinctiveness.” Similar political and economic factors currently are at work in Europe, the article acknowledges, creating incentives for legal convergence. But it also argues that European legal culture and the political organization of European national states generate path‐dependent forces that impede European movement toward American ways of law, and it discusses six important differences between European and American law that remain entrenched and are unlikely to disappear.     

International Capital Mobility and Domestic Institutions:Corporate Finance and Governance in Four European Cases

This article considers the impact of international capital mobility on thecharacter of corporate finance and corporate governance in four European countries (Germany, France, Spain, and Italy). We take issue with the widespread view that the growth of international financial markets and the lifting of capital controls will in themselves produce convergence in national systems of corporate finance and governance. Although we find evidence of convergence in specific aspects of financial regulation (e.g., the abandonment of selective credit regulation and the dismantling of barriers to universal banking), these regulatory changes have not produced any clear convergence toward either the Anglo-Saxon model of corporate finance and governance predicted in much of the literature or the alternative German bank-based model. The reasons for this, we suggest, have much to do with the way in which the politics of financialreform are likely to differ from those postulated in market-driven models of regulatory change and the fact that countries are susceptible to international pressures in different ways.     

Normative transformations in the European Union: on hardening and softening law

Abstract

Until the late 1980s, European integration was generally said to be based on ‘integration through law’. However, in the 1990s, a group of scholars observed that law seemed to be increasingly challenged and new modes of governance tended to distance themselves from legal integration. They were confronted with another group arguing that the EU was still subject to processes of judicialisation, juridification and Eurolegalism. Against this background, this special issue aims at understanding what triggers normative transformations, be it the hardening or the softening of law, at both EU and national levels. In this introduction, soft and hard law are given a definition based on obligation and enforcement. Then, normative transformations are situated in a framework which makes a distinction between processes, normative levels and political/administrative levels of transformation. Finally, three types of explanations are suggested to help us understand when and why transformations occur.     

Do markets enhance convergence on international standards? The case of financial regulation

Why do countries that did not participate in the establishment of international standards converge on them in the absence of external coercion? The market‐based perspective asserts that market forces enhance cross‐national convergence on international standards. This paper challenges the market‐based perspective, focusing on compliance with the 1988 Basel Capital Accord in South Korea and Taiwan. First, it argues that adoption of the Basel Capital Accord by these countries was mainly driven by their regulatory authorities’ concern about the potential risk of foreign market closure to noncompliant banks. Second, it demonstrates that enforcement by the two countries’ regulatory authorities was crucial in ensuring compliance. These findings suggest that national regulatory authorities are still key actors in voluntary convergence on international standards.     

The Europeanization of National Administrations: A Comparative Study of France and the Netherlands

Studies of the impact of European integration on the national administrations of the member states of the European Union (EU) have pointed towards an uneven process of "Europeanization." While there has unquestionably been a growing range and frequency of contacts between national administrations and the EU system, there is little evidence of an expected convergence towards a common institutional model. This uneven Europeanization is presently explained with reference to a neo-institutionalist framework, drawing primarily on the work of March and Olsen. It is argued that the politico-administrative systems of the member states differentially adapt to the pressures of European integration in a manner which reflects the preexisting balance of domestic institutionnal structures, as well as th broader matrices of values which define the nature of appropriate political forms in the case of each national polity. Distinctive national patterns of institutional adjustment, rather than appearing anomalous, emerge as corresponding to a basic logic of differentiation indissociable from the integration process itself. The general argument is illustrated by an extended comparative study of France and the Netherlands, examining both the making and the implementation of European policy in the two countries.     

The Political Foundations of the Eurocracy

This article explores the politics behind the design of EU regulatory institutions. The EU has established an extensive ‘Eurocracy’ outside of the Commission hierarchy, including over 30 European agencies and a number of networks of national regulatory authorities (NRAs). The article examines the politics of institutional choice in the EU, explaining why EU policy-makers create agencies in some policy areas, while opting for looser regulatory networks in others. It shows that the design of EU regulatory institutions – ‘the Eurocracy’ – is driven not by functional imperatives but by political considerations related to distributional conflict and the influence of supranational actors.     

United in diversity? The convergence of cultural values among EU member states and candidates

The European Union (EU) is considered to be a unique economic and political union that integrates most European countries. This article focuses on the cultural aspect of European integration, which has been increasingly debated over the course of deepening and widening integration and in the context of the legitimation crisis of the EU. Among the main goals of the EU is to promote certain values, which raises the question of whether it has been efficient in (or enabled) reducing cultural value gaps among the participating countries. World polity and institutional isomorphism theories suggest that cultural values may trickle down in a vertical manner from the institutions of the EU to its member states and candidates. Furthermore, hybridisation theory postulates that values diffuse horizontally through intensified interactions enabled by the EU. These two perspectives imply the possibility of cultural convergence among countries associated with the EU. By contrast, the culture clash thesis assumes that differences in cultural identity prevent value convergence across countries; growing awareness of such differences may even increase the pre-existing cultural value distances. To test these different scenarios, distances in emancipative and secular values are compared across pairs of countries using combined repeated cross-sectional data from the European Values Study and the World Values Survey gathered between 1992 and 2011. This study finds that the longer a country has been part of the EU, the more closely its values approximate those of the EU founding countries, which in turn are the most homogenous. Initial cultural distance to the founders’ average values appears irrelevant to acquiring membership or candidacy status. However, new member states experienced substantial cultural convergence with old member states after 1992, as did current candidates between 2001 and 2008. Since 1992, nations not participating in the integration process have diverged substantially from EU members, essentially leading to cultural polarisation in Europe. The findings are independent of (changes in) economic disparities and suggest the importance of cultural diffusion as one of the fundamental mechanisms of cultural change. This empirical study contributes to the literature on European integration, political and sociological theories of globalisation, and cross-cultural theories of societal value change.     

The Europeanization of national elections. The role of country characteristics in shaping EU issue voting

Research has shown that voting in European elections is affected by domestic politics. However, in the last years, and particularly after the European debt crisis, also the EU has gained relevance and salience in national politics. In this paper we address the Europeanization of national elections and assess to what extent the characteristics of countries condition the intensity of EU issue voting. Using data from the European Election Studies and the Comparative Manifestos Project, our results demonstrate the importance of congruence between citizens' and parties’ positions on the EU for the individual vote on the national level and show how this varies across countries. We provide evidence that EU issue voting is more intense in countries with more political influence in the EU as well as in countries that are net contributors to EU funds.     

Linking two levels of governance: Citizens’ trust in domestic and European institutions over time

This article puts forward a comprehensive framework for explaining the complex and dynamic relationship between trust in the domestic government and trust in the EU, considering time, country and individual-level variation. Using longitudinal comparative data from 32 Eurobarometer survey waves (2004–2018), we first establish that the link between attitude formation at the national and the EU supranational levels is present over time. Second, we show that during ‘extraordinary’ times of crisis the strength of that relationship intensifies. Third, we posit that the European sovereign debt crisis changed the mechanism for this relationship in two ways: during ‘extraordinary’ times, the link is much stronger in countries hardest hit by the crisis, and the relationship holds independent of individuals' political sophistication across all countries. Our findings have implications for understanding the drivers of EU support and theories of institutional trust.     

Europeans outside the EU: Telecommunications and Electricity Reform in Norway and Switzerland

Norway and Switzerland are two western Europe states that are not members of the European Union (EU), and they are among a number of small and economically open states in which reform of economic sectors is seen to be incremental and reactive. This article poses two questions about the reform of telecommunications and electricity in the two countries. First, what impact has nonmembership of the EU had on the reforms? Second, have their small and open economies and policymaking systems—conceptualized as “social corporatism” in Norway and “liberal corporatism” in Switzerland—had a decisive impact? Some influence from the EU is evident, particularly in telecommunications, but parallels with EU states indicate that nonmembership of the EU, though influential, is not decisive. Although national characteristics matter, social and liberal forms of corporatism are shown to have limited utility. The “actor‐centered institutionalism” approach, which allows a more nuanced analysis of actors and national institutions, is better at explaining the reforms.     

The Europeanisation of national party organisations: A conceptual analysis

Abstract.  The likely effects of the ongoing process of European integration on the internal workings of national political parties have hitherto attracted surprisingly little attention in comparative research. This conceptual article discusses how the increasing relevance of European-level decision making may have changed the balance of power within national political parties. It identifies two groups of party actors who are most likely to benefit from the process of Europeanisation of national political parties. First, the 'executive bias' of European Union (EU) decision making is likely to work in favour of party elites in general. However, while they may gain power in intra-party decision making, their control over the national policy agenda is likely to become increasingly eroded through a general shift of policy control to the European level. Second, EU specialists (i.e., those who specialise in EU affairs) are likely to have more access to resources and more control over policy decisions within national parties because of the growing importance of European integration. These propositions are discussed in detail and are then assessed with reference to the main findings from a major empirical study of the topic.     

Altered Europeanisation of Pension Reform in the Context of the Great Recession: Denmark and Italy Compared

This article analyses the Europeanisation of national pension systems in Denmark and Italy. Through the analytical framework of a ‘two-level’ game, it analyses pension reforms in the two countries, which, in the wake of the crisis, breached EU budgetary requirements, and shortly after reformed their pension systems. The EU affects pension reform in both cases, but in distinct ways. When Denmark’s economy was financially vulnerable, the EU’s excessive deficit procedure affected the decision to reform pensions indirectly, by triggering a rapid political decision to speed up a pension reform. By contrast, the Italian economy’s critical vulnerability and the consequent risk for the whole Eurozone led to a situation whereby the European actors entered the domestic political scene and thereafter more forcefully induced reforms. The findings from the two cases show that the EU’s role in pension reform has been significant during crises, but through interaction with domestic actors. Furthermore, from a theoretical perspective, the intervening variables – domestic and EMU vulnerability as well as EU and domestic politics – are crucial to understanding the reform decisions through two-level games.     

The regulatory style of environmental governance in China: the case of EIA regulation in Shanghai*

The body of literature that examines how institutional contexts affect environmental governance in advanced industrial countries finds that style of environmental regulation is country‐specific. In the pluralist form of democracy like the United States, environmental policy formulation involves bargaining and compromises among interest groups and regulation enforcement through relatively formal and legalistic means. In the corporatist form of democracy like Sweden and Great Britain, in contrast, environmental policies are more accommodating to divergent societal interests and tend to be less formal in their enforcement. These variations in regulatory style have been attributed to differences in basic constitutional structures, regime types and cultures. How do institutional contexts affect the style of environmental regulation in China, which is both a non‐democratic and developing country? This article examines China's regulatory style by focusing on environmental impact assessment (EIA) regulation in Shanghai. The Shanghai EIA system is analyzed in terms of policy ideology, policy content, regulatory process, public participation and policy consequences. It is shown that China's being a single‐party regime with a ‘rule of persons’ tradition has heavily shaped its environmental governance. Based on Shanghai experience, China's style can be characterized as formal in requirement, agency‐dominated in the regulatory process, legalistic in enforcement, and informal politics as the substance of regulation. Copyright © 2000 John Wiley & Sons, Ltd.     

The Europeanisation of Research and Higher Educational Policies: Some Reflections

This paper poses the following question: To what extent do European Union (EU) policies affect national policies? In essence this paper studies the Europeanisation of policy in the field of research and higher education (R&E). The field of R&E is largely neglected in the literature on European integration and Europeanisation. I argue that processes of Europeanisation of R&E mirror two interrelated processes: both the emergence of supranational policies at the EU level and national convergence towards these policies. The empirical scope of the paper is the relationship between the EU’s R&E policies and the corresponding Norwegian policies. Our empirical observations based on documentary data and existing bodies of literature reveal that the emergence of creeping supranational policies of R&E at the EU level has accompanied moderate convergence of Norwegian R&E policies. This moderate level of convergence, I argue, reflects a mix of moderate institutionalised linkages between Norwegian ministries and agencies and the EU, moderate adaptational pressures towards Norwegian R&E policies from the EU, and institutional path dependencies in Norwegian R&E policies.     

The politics of regulatory enforcement and compliance: Theorizing and operationalizing political influences

There is broad consensus in the literature on regulatory enforcement and compliance that politics matters. However, there is little scholarly convergence on what politics is or rigorous theorization and empirical testing of how politics matters. Many enforcement and compliance studies omit political variables altogether. Among those that address political influences on regulatory outcomes, politics has been defined in myriad ways and, too often, left undefined. Even when political constructs are explicitly operationalized, the mechanisms by which they influence regulatory outcomes are thinly hypothesized or simply ignored. If politics is truly as important to enforcement and compliance outcomes as everyone in the field seems to agree, regulatory scholarship must make a more sustained and systematic effort to understand their relationship, because overlooking this connection risks missing what is actually driving regulatory outcomes. This article examines how the construct of “politics” has been conceptualized in regulatory theory and analyzes how it has been operationalized in empirical studies of regulatory enforcement and compliance outcomes. It brings together scholarship across disciplines that rarely speak but have much to say to one another on this subject in order to constitute a field around the politics of regulation. The goal is to sharpen theoretical and empirical understandings of when and how regulation works by better accounting for the role politics plays in its enforcement.     

National interest versus the common good: The Presidency in European Council agenda setting

The European Council is an institution which brings together the Heads of State, or Governments of the European Union (EU) Member States. For the Presidency, preparing the agenda of European Council meetings involves a tension between loyalties. Existing research is divided over the question whether the Presidency pushes its domestic policy agenda on the EU level. Using empirical data on the Conclusions of European Council meetings, and national executive speeches presented annually in five Member States, this article investigates the relationship between the policy agendas of the EU and its constituent countries. It tests whether national issue attention of the Presidency holder dominates the European Council agenda. The findings suggest that having the Presidency does not provide a de facto institutional advantage for agenda setting power for any of the countries in the sample. The analysis points out that normative and political constrains limit the leeway of presiding Member States to push for domestic agenda preferences in the European Council.     

Is the EU held accountable for economic performances? Assessing vote and popularity functions before and after membership

The EU has become increasingly responsible for the state of national economies over the last decades. Meanwhile, many observers have claimed that this increased responsibility has not translated into more accountability. In this article, we revisit this literature and analyse vote-popularity functions before and after accession because it provides a situation when the EU is an incumbent and when it is not. Using Eurobarometer surveys from 2001 to 2011, which were carried out in the countries that joined the EU in 2004 and 2007, we first show that individuals do not hold the EU accountable for macroeconomic performances before accession, but that they do after accession. Using European Election Studies surveys, we also indicate that the incumbent European Peoples’ Party is held accountable for the state of the economy in countries that are ruled by the EU, but not in countries that have just become EU members.     

Agency Autonomy Actually: Managerial Strategies,Legitimacy, and the Early Development of the European Union's Agencies for Drug and Food Safety Regulation

ABSTRACT

In recent decades, a series of regulatory agencies has been created at the European Union (EU) level. The existing literature on EU agencies focuses either on autonomy as a reason for the creation of such agencies or on the autonomy that they are granted by design. As a result, we do not know much about how EU agencies' actual autonomy comes about. This article therefore probes into the early development of two specific agencies. On the basis of document analysis and interviews with agency staff members, national experts, EU officials, external stakeholders, and clients, it explores why, in practice, the European Medicines Agency (EMA) seems to have developed a higher level of autonomy than the European Food Safety Authority (EFSA), even though on paper EMA appears to be as autonomous as, or if anything, less autonomous than EFSA. The article demonstrates the importance of investigating the managerial strategies of EU regulatory agencies to understand the actual practice of their autonomy and points to legitimacy as a key condition affecting the early development of such agencies.