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.     

Reading the Ongoing Changes: European Identity

Europeans constituted their post‐Second World War political identities in terms shaped by the Cold War but matters took an unexpected turn when the events of 1989/91 required acknowledgement of the hitherto largely unremarked existence of the project of the European Union. The question of the identity of Europe/Europeans moved into mainstream debate: how can the variety of 'national pasts' be reconciled, how might ideas of Europe/Europeans fit within the range of identities affirmed by Europeans, and can the project present a clear image within the international community? The European Union is the only game in town for Europeans but it is also deficient; reform is made more difficult by the struggle to define the post bloc world: reform for what becomes the issue ‐ upgraded US ally, loose free trade area or federal polity? These are awkward questions but the continent is recovering from the catastrophe of its twentieth century and one can feel optimistic for the future.     

Beliefs of political leaders: conditions for change in the Eurozone crisis

Abstract

Leadership studies research reveals that political leaders’ beliefs affect their political and policymaking behaviour, especially in times of crisis. Moreover, the level of flexibility of these beliefs influences the likelihood that groups of leaders come to collective decisions. Insight into when and why political leaders do, in fact, change their beliefs is sorely lacking. This paper uses fuzzy-set Qualitative Comparative Analysis (fsQCA) to examine the antecedents of belief changes among 12 European leaders, all working in the realm of economic policy. Its findings reveal how increases in unemployment and unsustainable debt, as well as different government ideologies and increases in Euroscepticism lead to economic belief changes. In so doing, this paper begins to open the ‘black box’ of when, why, and under what conditions leaders change their beliefs.     

Regional Identity and Support for Europe: Distinguishing Between Cultural and Political Social Identity in France

Much has been written about the “crisis of the nation state” in Europe. The shifting of state competencies to the European and regional levels is expected to generate new loyalties to these levels, possibly at the expense of national solidarity. While numerous studies show that individuals with an exclusive national identity are less likely to support integration than those with an inclusive identity, much less is known about the interaction between regional identity and European identity. Using public opinion data collected in 16 French regions, I show that exclusive regionalists are less likely to feel attached to Europe and support the EU. However, I also find that the impact of regional identity on European identity varies by the type of identity invoked—cultural versus political. While cultural regional identity lowers support for European institutions, political regional identity has the opposite effect.     

The United States,Japan, and the European Union: comparing political economy approaches to China

Abstract

This paper examines US, Japanese, and European political economy approaches to China, and their effect on US–Japan and US–EU relationships. Great powers with a greater security concern in dealing with another major country care more about power while those with less of a concern are preoccupied with calculations for wealth. China's rise and its actions have posed a far greater security challenge to the United States and Japan and are driving the two countries closer together. The political economy game involving China reveals a dominant welfare motive among the advanced market economies. The ambition to transform China politically has diminished. China's integration into the global market makes a relative gains approach difficult to implement. Globalization simply limits the ability of a state to follow a politics-in-command approach in the absence of actual military conflict, which explains why the political economy approaches of the United States, Europe, and Japan are not that different in the scheme of things. China's own grand strategy to reach out to the world to outflank the US–Japan alliance has also contributed to a divergent European policy toward China although there are severe limitations to Beijing's ability to drive a wedge between the United States and Europe.     

The European Union and political behaviour: The shadow of the Great Recession

The symposium aims to analyse the politicisation of the European issue following the onset of the Eurozone crisis, in particular its impact on individual attitudes and voting both at the national and supranational level. By way of an introduction, we address the state of the art on the importance of the Eurozone crisis for EU politicisation, as well as outlining each article and its contribution. While our authors may sometimes focus on different dependent variables, they all speak to the question of whether the Great Recession made a lasting difference, and whether EU politicisation matters. Most articles are longitudinal, and test for changes due to the crisis (Dassonneville, Lewis- Beck and Jabbour; Ruiz-Rufino; Talving and Vasilopoulou; Jurado and Navarrete). But preoccupation with the Great Recession is also present in the articles assessing the political learning that unfolded from it (Ruiz-Rufino), or the ones which investigate whether EU effects can be detected during the post-crisis years (Talving and Vasilopoulou; Lobo and Pannico; Heyne and Lobo). Despite the diversity of approaches, and certain differences in findings, each article contributes to a major debate ongoing in the literature, especially three key debates which have arisen: the crisis’ impact on European party systems, economic voting, and the degree of legitimacy of democratic systems.     

Intergovernmental transfers and fiscal equalization across the north-eastern states of India: Evidence from panel data

While numerous studies have tried to analyze the impact of intergovernmental transfers in fostering fiscal equalization in India, there need to be more studies in the context of north-eastern (NE) states. Situating in a geographically isolated and economically backward region, the states of NE India depend heavily on central fiscal transfers to meet expenditures and to promote various economic activities in the region. One of the essential objectives of these transfers is to achieve fiscal equity. Hence, the study attempts to analyze the fiscal equalizing nature of the intergovernmental transfers across NE India during 1991–2019. The coefficient of variation (CV) analysis results indicates that although fiscal transfers reduced the magnitude of disparity in the own-source revenue across the NE states, a significant amount of disparity still exists in the resource base across these states. The regression analysis findings suggest that the transfers across these states need to be more fiscal equalizing. The per capita gross state domestic product emerges as a positive and significant in predicting per capita transfers, and hence it questions the progressivity of central transfers. When assigning the interstate share of transfers, more weight should be placed on fiscal equalizing factors such as per capita income. The Finance Commission of India should emphasize fiscal equalizing criteria when allocating weights and recommending transfers to the NE States. Additionally, states with low incomes should be recognized in plan schemes.     

Mind the (Mobilization) Gap: Comparing Climate Activism in the United States and European Union

The barriers to concerted political action on climate change mitigation are steep, especially in multilevel systems where power is diffused and authority contested. This article seeks to explain how mobilization—galvanizing resources and people to participate actively—occurs in complex multilevel systems. It compares two different polities—the United States and the European Union—to tease out the key features of multilevel systems and how they affect climate activism and mobilization. To capture this dynamic, it proposes a three‐staged model of mobilization: awareness building, alliance building, and network creation. The latter stage features “mobilization networks”—stakeholder networks able to transcend levels and institutional inertia and steer polities toward particular climate goals. The article demonstrates how each stage of mobilization is highly contingent on stakeholders' ability to exploit—or at least navigate—multilevel institutional barriers.     

Good governance and differentiated integration: Graded membership in the European Union

The study of European integration has traditionally focused on organisational growth: the deepening and widening of the European Union (EU). By contrast, this article analyses organisational differentiation, a process in which states refuse, or are being refused, full integration but find value in establishing in‐between grades of membership. It describes how the EU's system of graded membership has developed, and it explains the positioning of states in this system. The core countries of the EU set a standard of ‘good governance’. The closer European countries are to this standard, the closer their membership grade is to the core. Some countries fall short of this standard and are refused further integration by the core: their membership grade increases with better governance. Other countries refuse further integration because they outperform the standards of the core countries: their membership grade decreases as governance improves. These conjectures are corroborated in a panel analysis of European countries.     

‘Whatever it takes’: Polanyian perspectives on the eurozone crisis and the gold standard

Abstract

The parallels between the monetary politics of the gold standard and that of the eurozone crisis are striking and have informed contemporary debate about the future of European integration. The eurozone crisis has been widely interpreted as the result of a mismatch between international monetary integration and a concomitant lack of fiscal integration, or more broadly as the result of a European Union which is economically integrated, yet politically fragmented. The prospect of a 1930s-style descent into division and nationalism has formed the backdrop against which moves towards extensive integration at the supranational level have been made. Polanyi diagnosed the political effects of monetary integration through his analysis of the gold standard system in The great transformation, making it important that we unpack his analysis and consider carefully how a Polanyian perspective might apply to the eurozone today. I argue that Polanyi encourages us to look beyond ‘monetary vs. fiscal’ and ‘economic vs. political’ characterizations of European integration, and instead to examine how such oppositions are formed in the first place and how they constrain political debate, particularly in terms of how ‘sound money’ is established as the highest policy concern. Through a re-reading of Polanyi's distinction between ‘all-purpose’ and ‘special-purpose’ money, I highlight how, despite the huge efforts undertaken to preserve the identity of the euro as an all-purpose currency, the eurozone crisis has rendered visible a series of latent conflicts between the different functions of money. This analysis moves us away from the ‘monetary vs. fiscal’ integration view of the eurozone crisis and towards a more open study of how the various possible purposes of money are being articulated and challenged, offering some limited hope for alternatives to the current eurozone policy agenda.     

Exporting Security: Success and Failure in the Securitization and Desecuritization of Foreign Military Interventions

Alongside humanitarian motives, the pursuit of security is the main justification given by states for their foreign military interventions. This is constructed as an ‘export of security’, part of a strategy to combat material and ideological threats abroad in order to enhance the sending state’s security. Such securitized justifications are highly ambiguous, with the military intervention itself often becoming a source of insecurity. Given the Janus-faced nature of military securitization, what are the conditions for a successful securitization move leading to foreign military intervention? In response to this question, the following article compares separate cases of security exports undertaken by the United States (US), Germany and Japan. It is argued that a stable commitment to a military intervention on the part of a sending state is only possible if the pre-intervention securitization process includes a successful desecuritization move once there are boots on the ground. This argument underlines the fundamental ambiguity of securitization moves, as well as the importance of and conditions for audience acceptance. Furthermore, this article proposes a template for exploring the links between securitization and desecuritization.     

Domestic Institutions and regional representation in the European Union: the case of Austria

Multi-level governance in the European Union is a well-established model in the EU literature. An area of ongoing focus within that literature has been the regional representation offices that have proliferated in Brussels. This article addresses the research question of how domestic institutional arrangements affect the strategies of regions seeking representation at the European level. Based on the results of original interviews with directors and deputy-directors of Austrian regional representation offices in Brussels to illustrate the approach these offices take when interacting with other European institutions and with Austrian federal representatives, this study builds on the regional representation literature that has stressed the pre-eminence of state institutional structures in understanding the role of regional representation offices and argues that the importance of the offices is best examined through a focus on state level institutions and power arrangements rather than on office impact at the European level.     

Parties,the state and society in Greece: Continuity within change

The new Greek party system which emerged after the restoration of democracy in 1974 is characterised by a combination of features indicative of both continuity and change in comparison with the party system that existed before the military coup of 1967. This article concludes that in the present phase the contribution of parties to institutional consolidation and the stability of party identification, though not negligible, remains uncertain. It is likely to be influenced by variables both internal and external to the political system, relating to party interaction and to the relationship of parties with state and society.     

From capacity to sovereignty: Legislative politics and differentiated integration in the European Union

The literature suggests that legislative politics among European Union Member States is characterised by economic exchanges, and constrained by the social norms of a European community of legislators. Both views draw a clear line between the legislative process and the conflicts over sovereignty that have left their mark on treaty making and European public opinion since the 1990s. This article suggests revisiting this view, based on an analysis of why Member States have opted out of legislation from the 1970s to today. It argues that differentiation, while once a response to capacity problems of relatively poor countries, has recently become driven by sovereignty concerns of the Union's wealthy and nationally oriented Members that oppose the EU's intrusion into core state powers. The article presents evidence for the impact on legislative outcomes of factors so far thought not to matter. The results indicate greater European‐level legislative responsiveness towards national sovereignty demands than previously recognised. They underline that the nature of European politics has been changing with the EU's push into core state powers.     

Eastward Enlargement of the European Union and the Identity of Europe

The constitution of a European demos with a collective identity is one of the preconditions for adjusting the legitimacy problem of the European Union (EU). The analysis attempts to clarify empirically whether there is sufficient commonality regarding Europeans' political value orientations to substantiate a collective identity. Particularly in view of the European Union's eastward enlargement, the question arises whether widespread cultural heterogeneity in Europe allows the formation of a European demos at all. In Europe we can identify a West-East axis of political value orientations. Democratic attitudes decrease the further to the East while at the same time there is an increase in etatist orientations. Thresholds can be observed which distinguish Western European countries on the one hand and Central and Eastern European countries on the other. Within the group of Central and Eastern Europe a further distinction can be made between the three Slavic republics of the former Soviet Union and the rest of the countries. These findings support Huntington's theory of civilisations.     

The Planning and Implementation of the Rule of Law Mission of the European Union in Kosovo

Abstract

This article evaluates the planning process and initial implementation of the Rule of Law Mission of the European Union in Kosovo (EULEX). It shows that the original intention was to have a smaller presence than the predecessor United Nations Mission in Kosovo (UNMIK). Yet as a result of a lack of settlement on the international status of Kosovo, the European Union ended up with a robust mandate and it was unable to make a fresh start in order to distinguish itself from the United Nations. EULEX has, nonetheless, successfully established itself, but it remains too early for a final judgment.     

European elites and the narrative of the Greek crisis: A discursive institutionalist analysis

This article examines elite European discourses during the Greek financial crisis from its pre-history in September 2008 up to the arrival of the SYRIZA government in January 2015. The article employs the conceptual literature on Discursive Institutionalism (DI) and Historical Institutionalism (HI). Having coded 1,153 unique quotes drawn from a dataset of 15,354 news wires from Reuters, the authors argue that the communicative discourse of 63 senior European (and IMF) officials on the Greek crisis during that period demonstrates significant volatility. Four distinct narrative frames are identified: ‘neglect’, ‘suspicious cooperation’, ‘blame’ and ‘reluctant redemption’, punctuated by three discursive junctures in 2010, 2011 and 2012, which reflect the content of the changing communicative discourse of the Greek crisis. The article's contribution is twofold: empirically, it is the first to provide a systematic analysis of the protagonists’ communication of the Greek crisis; and theoretically, it combines DI and HI in an effort to conceptualise an important part of our understanding of ‘bail-out politics’ throughout the Eurozone crisis.     

The Lion and the Eunuch: National Identity and the British Genius

The Lion and the Eunuch challenges the failures of British politicians to adequately understand the complexities, and the subtleties, of British national identity, and goes on to define it for them. It also explains reasons for our current confusions over who we are in the world. In 1940 Orwell wrote The Lion and the Unicorn as a rallying cry for a richly identifying country that was still able to imagine itself, and re‐imagine itself, as the need arose. This essay suggests that without a radical change of government policy and thought, that power will continue to decline with far reaching consequences for the peoples of these islands.