The Brussels issue in Belgian politics

Belgium is one of the few countries that has been able effectively to accommodate major divisions along linguistic, cultural, ethnic and territorial lines within the fabric of a unitary government. However, one major issue which it has been unable to resolve is the status of its capital city, Brussels, within its devolution reforms. The status of Brussels encapsulates all aspects of the major community divisions in Belgium and has led to numerous unsuccessful legislative proposals, endless parliamentary debates, and the fall of several governments. It was not until 1980 that the Belgian government was able to deal ‘constructively’ with this issue. It did so by removing it from the national political agenda. It is likely that the status of Brussels as a non‐issue is the only resolution possible.     

THE FINANCIAL MANAGEMENT STRATEGY OF THE VICTORIAN COALITION GOVERNMENT

Abstract: This article reviews the budget sector financial management strategy of the Victorian Coalition government in the crucial period from its election in October 1992 up to the 1993–94 budget. The twin goals set by the Coalition were the elimination of the current account deficit, and the reduction of debt levels. Given infrastructure pressures, the debt reduction goal will be a difficult one to achieve. More precisely, it will be a difficult one to achieve without relying upon instruments such as assets sales, which the Coalition has viewed as artificial debt reduction techniques. The capital expenditure plans embodied in the 1993–94 state budget were not consistent with the debt reduction plans specified only months earlier by the Coalition. Victoria's debt levels are quite moderate even by OECD standards. What makes debt levels a real issue for the state is the narrowness of the tax bases of the Australian states, and the fact that Victoria is taxing at something like its maximum levels (at least, without coordinated multi-state tax increases). It is argued that, if the states could be confident that their revenue positions would hold firm (concretely, that revenue and grants as a proportion of GSP would remain constant), the appropriate debt policy goal for Victoria would be stabilisation — rather than reduction — of its debt/GSP ratio. However, the foreshadowed trend reduction of real commonwealth grants, as part of the so-called national savings campaign, makes it appropriate for Victoria — given the circumstances in which it finds itself — to target the reduction of debt/GSP levels.     

Special Issue: Deliberately Democratizing Multilateral Organization

In Economy and Society , Max Weber posits that bureaucracies that are not reined in by either democratic controls or market discipline will eventually start to pursue public policies that are detrimental to those whose lives these policies should enable or improve. During the last ten years, a number of scholars, activists, parliamentarians, journalists and whistleblowers have come to argue that Weber's hypothesis has often held up for the functioning of multilateral organizations, such as the World Bank, the International Monetary Fund, and the World Trade Organization. At least, it appears that little democratic control or market discipline has been imposed on multilateral organizations. Moreover, critics from both the left and the right have severely criticized such multilateral policies as development lending, deregulation of financial markets, and structural adjustment programs. Yet it remains difficult to agree upon appropriate remedies. Many proposals—ranging from outright abolishment of large international organizations to the establishment of global parliaments at the United Nations—have been tabled, but little consensus reigns and various disadvantages (as well as advantages) cling to each of these proposals. This special issue of Governance considers yet another way in which to make multilateral organizations more democratic and pluralistic: by making these organizations more deliberatively democratic. This introduction clarifies what is meant by deliberative decision–making and why it is worthwhile to consider making multilateral organizations more deliberative. It also sets out the other contributions to the issue, which offer different justifications for increased deliberation and discuss alternative forms in which multilateral organizations can be made more deliberatively democratic.     

Political and social rights for second country nationals: freedom of movement and citizenship in Australasia

Agreements allowing regional freedom of movement inevitably raise questions about the citizenship status and rights of those who exercise regional mobility. In the case of the European Union, such questions have received considerable academic attention, particularly since the creation of European citizenship in 1992. Little attention has been paid to Australasia, where a long-standing freedom of movement agreement, the trans-Tasman Travel Arrangement (TTTA), permits New Zealanders and Australians to live and work indefinitely in each others' country. As the two countries pursue a single economic market, the TTTA has played a central role in facilitating the creation of a regional labour market. Changes to Australian social security and citizenship legislation, however, have meant that many New Zealanders permanently resident in Australia have limited social and political rights, and no access to citizenship. This article extends debates about whether the political and social rights of citizenship ought to be granted to second-country nationals into the Australasian context. It examines a range of arrangements by which citizenship could be protected during the current period of intense economic integration in Australasia, asking which provides the best fit with existing constitutional and political arrangements.     

Political strategies of large companies and their significance for the implementation of the European single electricity market: the examples of France and Germany

Electricity supply in the European member states has been a closed national public sector service without competition for a long time. Currently, the European electricity industry is subject to radical change resulting from the European directive establishing common rules for the internal market in electricity, which came into force in 1997. This paper attempts to explain the varying forms of implementation of the internal electricity market in France and Germany. First, it clarifies the special characteristics of electricity supply and European electricity policy. Secondly, the paper shows the divergent sectoral arrangements of the French and German electricity industries. Thirdly, it points out that the different degrees of linkage between the public players and the electricity companies in France and Germany produce different political strategies which are followed by the companies at the European level, especially those strategies which seek direct influence on the European Commission. Finally, the paper reveals the significance of these strategies in Brussels in terms of the implementation of the single electricity market in both member states. Copyright © 2003 Henry Stewart Publications     

Does the UK Have Influence in the EU Legislative Process?

The UK has influenced some major EU policies, such as the creation of the single market and enlargement. But how influential are the UK government and British MEPs in the day‐to‐day EU legislative process? To answer this question, this article analyses recent data from the Council of the European Union and the European Parliament. The evidence is mixed. In the Council, in recent years the UK government has been outvoted more often than any other EU government, yet UK officials remain well connected ‘behind the scenes’. In the European Parliament, British MEPs are now more likely to be on the losing side than are the MEPs of any other member state, yet British MEPs still win key committee chairs and rapporteurships. The evidence suggests that if the UK votes to remain in the EU, Britain's political elites will need to re‐engage with Brussels politics if the UK is to avoid becoming further marginalised from mainstream EU politics.     

The Status of the Budget Constraint,Federalism and the Relative Size of Government: A Bureaucracy Approach

We develop a model along the lines of Niskanen,articulating that under a soft government budgetconstraint the full production cost of the public goodis not reflected in the tax price as perceived by theconsumer-taxpayer-voter. Various proportions ofnon-tax financing and different degrees of votermyopia with respect to discounting the future taxliabilities are taken into account. It can be shownthat both the actual level of public output and theamount of slack resources are lower under a hardbudget constraint than under a soft budget regime.Lower levels of government typically operate under ahard budget constraint when compared with the federallevel since they have only limited (public) borrowingopportunities and no access to money creation(seignorage). In a federalist setting more governmentdecisions are taken under a hard budget constraintthan in a unitary state. Hence one would expect thatthe overall size of government is relatively smallerin a structure with fiscal federalism. An empiricaltest for 19 OECD-countries (1990–1992) seems tosupport this hypothesis.     

Creating Public Value and Institutional Innovations across Boundaries: An Integrative Process of Participation,Legitimation, and Implementation

Public value creation has become a critical challenge, but existing approaches have limitations and it is unclear how they can be integrated. This article addresses this issue by analyzing four best‐practice cases in which public value was created through the integration of community indicators and government performance management. It identifies an iterative process of participation, legitimation, and implementation, with institutional innovations across boundaries between civil society, politics, and administration. These institutional innovations help integrate the often fragmented arenas of participation, legitimation, and implementation.     

Budgetary constraints and municipal revenue forecasting

Conclusion The objective of this research has been to determine whether key budget participants see forecasting as making significant contributions to the budgetary process. The issue is important for at least two reasons. Budgetary tools will be used to the degree budget players perceive them as providing net budgettary benefits. Moreover, the continuing trend toward technological sophistication gives governments opportunities, red herrings or not, to incorporate the technology into the budget process. The issue is also very timely; with the demise of packaged budget reforms but not the values of budget reforms, there may be new opportunities for improving budgeting on a less grandiose, more piecemeal basis, such as using forecasts to analyze budgetary options. The findings here provide some insight into two questions concerning governmental forecasting. First, why do governments use complex methods? In support of previous research, since cities most dependent on intergovernmental aid tend to use complex forecasting, such methods may indeed be seen as a way to help cope with fiscal stress. Also, reflecting the ambiguity of current research, since cities tend to use relatively simple techniques regardless of the revenue source being forecasted, the source is at best a partial determinant of complexity. The most important predictor of complexity, however, was budget format; cities that emphasize reform methods, especially planning, tend to use the most complex forecast methods. The forecasting process was not as important as expected.Second, so what? Does forecasting influence budgetary choices? The evidence from the second part of the study suggest that it can, but within definable limits. Budget directors are more likely than councils to value outyear estimates, but both actors are much less likely to value long-term estimates. The survey results also indicate that revenue forecasts are not as useful for making political decisions as for making management decisions: the forecast is usually used as an internal document, is only sometimes intended to affect council decisions, and is not usually included in the budget. In short, the forecast may be most useful for making managerial decisions since that is what most cities want out of it. It also tends to be more useful if the budget format is less traditional. Finally, the findings indicate that forecasting may be more useful to management to the degree the council finds it politically useful. This is extremely important since it suggests that as powerful as technology may be, budgetary tools that do not meet political needs will be managerially confined.Clearly, more research is needed in this area. Does forecasting actually shape long-range plans? In the long run, will the forecasting effort change the ways cities budget? Can the availability of forecasting information strengthen one actor relative to another? These are important questions that need answering to clarify the impact of forecasting and other technologies on the budget process.     

New Community Associations for Established Neighborhoods

From 1980 to 2000, 50 percent the new housing in the United States was located in a development project where it was subject to the governance of a private community association. The creation of a community association requires unanimous consent, which is achieved in practice by requiring home owner agreement as a condition of initial purchase in new developments. In an established neighborhood of existing homes and other properties, however, it is for practical purposes impossible at present to create a private community association. This paper proposes that state governments enact legislation to allow for retroactive creation of private community associations in established neighborhoods with a vote of less than unanimous consent. In this way, the same advantages of private neighborhood government that have proven so attractive to such large numbers of suburban homeowners in recent years could be extended as well into inner city areas.     

The Decline of Citizenship in an Era of Globalization

This article seeks to identify the linkages between traditional conceptions of citizenship based on affiliation with a territorial state and the rise of global market forces. The basic argument set forth is that the erosion of state autonomy and the emergence of arenas of decision and power beyond the control of the state have been weakening traditional bonds of identity between individuals and the state. This pattern is particularly pronounced in the liberal democratic states of the West, which were the main settings within which citizenship in its modern forms emerged. The latter parts of the article consider the prospects for new forms of political identity that are reshaping the meaning of citizenship, creating multiple loyalties and superseding the monolithic conception of citizenship associated with a Westphalian system of world public order. It is, as yet, too soon to depict the contours of post-Westphalian citizenship, but its essence will be shaped by an allegiance to shared values and to the experience of community, a dynamic that will increasingly diminish the reductive association of the citizen exclusively with a particular sovereign state.     

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.     

The Pending Revolution in Federal Accounting Standards

Accounting standards constitute the body of guidance needed to provide coherence and direction to accountants on how to keep the books. They inform the accountant about the logic of the way that accounting data should be organized and displayed in order to maximize its value to the prospective user. (The prospective users, in the case of federal accounting, range from the president and Congress through agency managers to the general public.) Federal accounting standards are the equivalent, for accounting, of budget concepts for the federal budget. After a long genesis, federal accounting standards are in the midst of a revolution which, if it succeeds, will transform the way accounting reports on federal fiscal activities and how it relates to the federal budget. This article, written from the perspective of a budget concepts technician who has participated in this effort, reviews these developments and where they seem to be heading.     

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.     

The theologies of transparency in Europe: the limits and possibilities of ‘fusion’ in the EU transparency regime

• The consideration of a transparency regime for the European Union has stimulated considerable response from the Brussels lobbying community. Somewhat predictably, the responses have congregated about two poles: one represented by a strident group of reform activists calling for complete openness with a strong legal component, the other taking a minimalist self‐regulatory approach to the most fundamental issues. The basic positions of the competing sides seem to be immovable; embraced with all the fervour of religious ‘true believers’. At first blush the possibility for a meaningful compromise seems remote. However, the submissions may offer a limited way forward based on a fusion of principles held by many on both sides of the issue.

Copyright © 2007 John Wiley & Sons, Ltd.     

Regional lobbying and Structural funds: Do regional representation offices in Brussels deliver?

In recent years regional representation offices have proliferated in Brussels. Among the many aims of these offices are influencing the allocation and securing the transfer of European Structural and Cohesion funds. However, our knowledge about whether they have succeeded in this goal is limited. In this paper, we assess whether regional offices in Brussels have managed to affect the commitment and payment of Structural and Cohesion funds beyond the officially stated economic criteria of eligibility. The paper uses a custom-made survey of Brussels offices, complemented by economic, institutional, and political data. The results of the analyses for 123 regions over the period 2009–13 highlight that the capacity – proxied by the budget and staff of the office – of the regional offices to influence the commitment and payment of Structural and Cohesion funds has been negligible, when not outright negative. Regional lobbying in Brussels does not lead to more funds or to an easier disbursement of regional development funds.     

The creation of neo-liberal corporate bias in transnational medicines control: The industrial shaping and interest dynamics of the European regulatory state

Abstract. Drawing on the political theories of corporatism, neo–liberalism and pluralism, and on comparative empirical research in Brussels, Germany, Sweden and the UK, this article conceptualises the nature of Europeanised medicines regulation. It argues that a marketisation of regulation has been established in the European Union as a result of competition between national regulatory agencies for 'regulatory business' from the pharmaceutical industry. In the pharmaceuticals sector the Europeanised regulatory state is a product of three key factors: (a) the European Commission's commitment to an 'efficiency' regime which would meet the political objectives of a single European market and the commercial agendas of transnational pharmaceutical companies, (b) the endemic corporate bias associated with medicines regulation in the most influential member states, and (c) the considerable success of neo–liberal politics across a number of major member states, including Germany, Sweden and the United Kingdom.     

The use of EU soft law by national courts and bureaucrats: how relation to hard law and policy maturity matter

Abstract

Soft law instruments account for a sizable share of EU legal acts, with growing importance over time. Yet, while the implementation of hard EU law has been widely studied, little is known about the use of EU soft law at the national level. In the article, it is firstly argued that the type of soft law instrument will affect national usage. Administrators and judges may welcome interpretative guidelines to complicated pieces of legislation, while more open-ended instruments may be ignored. It is further argued that the maturity of the policy field matters. National actors in mature policy fields will be routinely exposed to EU rules and they are socialized into responding to impulses from Brussels. The article probes the plausibility of these expectations in case studies on the use of EU soft law instruments by German administrations and courts in four policy fields: financial market regulation, competition, environmental protection and social policy.     

Two reversals in Israeli politics: why 1992 was not 1977

Twice elections caused sharp changes in Israeli politics—once in 1977, and again in 1992. The 1992 shift was smaller, but the major difference was that the 1977 election put an end to the era dominated by Labor. It climaxed a realigning electoral era which was grounded in ethnicity and established new and durable election groupings. The issue of the territories was significant in the 1977 reversal, but in the 1992 turnover it was central and the elections were predominantly issue-based. There was an increased willingness to compromise on the territories; disaffection with the Likud's performance rose: and the Likud government expenditures on the settlements in the territories served as a powerful wedge issue.     

Adjusting to New Ways of Working: Experiments with Service Delivery in the Public Sector

In response to the perceived failure of both the state and market models of service delivery, governments have embarked on a reform program that draws on the community sector to expand the suite of available policy and service delivery arrangements. This paper explores and identifies the nature of changed relationships between government and the community sector. It uses a case study that examines the operation of a new type of community organisation, and analyses the affectivity and outcomes from the experience of a community based networked arrangement. Although there is evidence of a shift to more relationship‐ oriented models of operation because of either mandate or preference both community and government sectors have found it difficult to make the necessary adjustments to these new ways of working. Community has begun the shift to this new relational approach but finds it difficult to sustain the momentum and tends to revert to more independent and competitive modes. Governments find it difficult to make the necessary adjustments to power‐sharing and resource allocation and continue to operate as ‘business as usual’ through the traditional bureaucratic authority of command and control. In this way, the rhetoric of collaboration and partnership between government and the community sector is not necessarily matched by policy and action supporting the practice of ‘new ways of working’ although these ‘experiments in service delivery’ have opened the way for adopting more innovative and effective approaches to service delivery.