Measuring and explaining regulatory reform in the EU: A time‐series analysis of eight sectors, 1984–2012

Over the last three decades, European Union regulation of the internal market has become highly pervasive, affecting practically all domains of European citizens' lives. Many studies have focused on understanding the process and causes of regulatory change, but with limited attempts to analyse the more general sources of regulatory reform. This article focuses on the determinants of stability and change in EU regulation. An original dataset of 169 pieces of legislation (regulations, directives and decisions) across eight different sectors is developed and the dynamics of regulatory reform in the EU are analysed. Using time‐series analysis of count data, evidence is found that the number of winning coalitions in the Council and the size of EU membership have a significant impact on regulatory reform in the EU. By contrast, the ideological composition of the EU's legislative bodies is not systematically related to regulatory reform.     

Institutional veto players and cabinet formation: The veto control hypothesis reconsidered

Are potential cabinets more likely to form when they control institutional veto players such as symmetric second chambers or minority vetoes? Existing evidence for a causal effect of veto control has been weak. This article presents evidence for this effect on the basis of conditional and mixed logit analyses of government formations in 21 parliamentary and semi‐presidential democracies between 1955 and 2012. It also shows that the size of the effect varies systematically across political‐institutional contexts. The estimated causal effect was greater in countries that eventually abolished the relevant veto institutions. It is suggested that the incidence of constitutional reform is a proxy for context‐specific factors that increased the incentives for veto control and simultaneously provided a stimulus for the weakening of institutional veto power.     

Institutional checks and corruption: The effect of formal agenda access on governance

Legislative checks give whoever wields them influence over policy making. It is argued in this article that this influence implies the ability not only to affect legislative content, but also to direct public resources toward private ends. Rational politicians should use access to checks to make themselves better off – for example, by biasing policy toward private interests or creating opportunities to draw directly from the public till. Disincentives exist only to the extent that those able to observe or block corruption do not themselves benefit from it. Political opponents thus can use checks to stymie each other, but legislative checks controlled by political allies create conditions for collusion and corruption. Testing this claim against data from a sample of 84 countries, the results presented in this article show strong support for the hypothesised relationship between institutional checks and corruption.     

Veto player theory and reform making in Western Europe

Veto player theory generates predictions about governments’ capacity for policy change. Due to the difficulty of identifying significant laws needed to change the policy status quo, evidence about governments’ ability to change policy has been mostly provided for a limited number of reforms and single‐country studies. To evaluate the predictive power of veto player theory for policy making across time, policy areas and countries, a dataset was gathered that incorporates about 5,600 important government reform measures in the areas of social, labour, economic and taxation policy undertaken in 13 Western European countries from the mid‐1980s until the mid‐2000s. Veto player theory is applied in a combined model with other central theoretical expectations on policy change derived from political economy (crisis‐driven policy change) and partisan theory (ideology‐driven policy change). Robust support is found that governments introduce more reform measures when economic conditions are poor and when the government is positioned further away from the policy status quo. No empirical support is found for predictions of veto player theory in its pure form, where no differentiation between government types is made. However, the findings provide support for the veto player theory in the special case of minimal winning cabinets, where the support of all government parties is sufficient (in contrast to minority cabinets) and necessary (in contrast to oversized cabinets) for policy change. In particular, it is found that in minimal winning cabinets the ideological distance between the extreme government parties significantly decreases the government's ability to introduce reforms. These findings improve our understanding of reform making in parliamentary democracies and highlight important issues and open questions for future applications and tests of the veto player theory.     

The time inconsistency of long constitutions: Evidence from the world

This article analyses the mechanisms establishing time consistency of constitutions. It explains why shorter and more locked constitutions are more likely to be time consistent (change less) and that long constitutions are more time inconsistent (change more, despite locking). Empirical evidence from all of the democratic countries in the world indicates that the length and locking of constitutions are not independent criteria, and that their combination leads to less time consistency. To address this inter‐relationship, a measure of time inconsistency (a combination of locking and amendment rate) is developed and it is demonstrated that it is connected with the length of constitutions. The article shows how time inconsistency is incompatible with theories of ‘constitutional amendment culture’ not only at the theoretical level, but also empirically. Finally, the article proves that the empirical finding that the length of constitutions is related to lower per capita income and higher corruption are not only in agreement with time inconsistency arguments, but this also extends beyond OECD countries to all democracies.     

Shall the law set them free? The formal and actual independence of regulatory agencies

Regulation by independent agencies, rather than ministries, is believed to result in better policy outcomes. Yet this belief requires one to accept a complex causal chain leading from formal independence to actual independence from politics, to policy decisions, and, ultimately, to policy outcomes. In this study, we analyze the link between the formal and actual independence of regulatory agencies in Western Europe. New data on the appointment of chief executives of these agencies is used to create a proxy for the actual independence of agencies from politics. The analysis demonstrates that formal independence is an important determinant of actual independence, but the rule of law and the number of veto players matter as well.     

The Reforms in the Institutional Structure of the European Union in Compliance With the Lisbon Treaty

The necessary adjustment to the political architecture in Europe is considered to happen with the Treaty of Lisbon. The treaty is an attempt to make adjustments to the decision-making process, ensuring democratic legitimacy, strengthening of the institutions, and enabling political action worldwide. With the Lisbon Treaty, a change has been made in the institutional structure of the European Union （EU）. The Treaty of Lisbon brings together more than a half-century history of integration, which began with the decision for establishing the European Coal and Steel Community （ECSC） on April 18, 1951. The view on the whole, more than 50 years of integration, shows that the European unification process all the time is not out of the spirit of all issues related to the details of common goals and values, but goes in the direction of one political vision of： peace and prosperity, freedom and mobility, knowledge of democracy, populism and tolerant coexistence. The Treaty of Lisbon is in the way to improve the capabilities for action of the democracy in Europe.     

Elected Second Chambers and Their Powers: An International Survey

In May 2011, Britain's Conservative/Liberal Democrat coalition government published proposals for reform of the House of Lords. In a White Paper and draft bill they set out detailed plans for a largely or wholly elected second chamber. These marked the latest stage in a long‐running debate on Lords reform. The government's proposals aim to change the composition of the second chamber, suggesting that there will be no change to its powers or the conventions governing relations with the House of Commons. But this expectation has been disputed. The House of Lords presently does not make full use of its powers, and many anticipate that it would if its members became elected. This paper reviews the composition of all second chambers internationally, showing that wholly directly elected chambers make up the minority, and that both mixed chambers and indirect election are common. It then reviews the formal powers of all largely and wholly elected chambers. This shows that amongst parliamentary systems the formal powers of the House of Lords are relatively great. But second chamber powers, as well as their composition, vary widely.     

Constitutional courts as veto players: Lessons from the United States,France and Germany

The number of constitutional courts and supreme courts with constitutional review rights has strongly increased with the third wave of democratisation across the world as an important element of the new constitutionalism. These courts play an important role in day‐to‐day politics as they can nullify acts of parliament and thus prevent or reverse a change in the status quo. In macro‐concepts of comparative politics, their role is unclear. Either they are integrated as counter‐majoritarian institutional features of a political system or they are entirely ignored: some authors do not discuss their potential impact at all, while others dismiss them because they believe their preferences as veto players are entirely absorbed by other actors in the political system. However, we know little about the conditions and variables that determine them as being counter‐majoritarian or veto players. This article employs the concept of Tsebelis’ veto player theory to analyse the question. It focuses on the spatial configuration of veto players in the legislative process and then adds the court as an additional player to find out if it is absorbed in the pareto‐efficient set of the existing players or not. A court which is absorbed by other veto players should not in theory veto new legislation. It is argued in this article that courts are conditional veto players. Their veto is dependent on three variables: the ideological composition of the court; the pattern of government control; and the legislative procedures. To empirically support the analysis, data from the United States, France and Germany from 1974 to 2009 is used. This case selection increases variance with regard to system types and court types. The main finding is that courts are not always absorbed as veto players: during the period of analysis, absorption varies between 11 and 71 per cent in the three systems. Furthermore, the pattern of absorption is specific in each country due to government control, court majority and legislative procedure. Therefore, it can be concluded that they are conditional veto players. The findings have at least two implications. First, constitutional courts and supreme courts with judicial review rights should be systematically included in veto player analysis of political systems and not left aside. Any concept ignoring such courts may lead to invalid results, and any concept that counts such courts merely as an institutional feature may lead to distorted results that over‐ or under‐estimate their impact. Second, the findings also have implications for the study of judicial politics. The main bulk of literature in this area is concerned with auto‐limitation, the so‐called ‘self‐restraint’ of the government to avoid defeat at the court. This auto‐limitation, however, should only occur if a court is not absorbed. However, vetoes observed when the court is absorbed might be explained by strategic behaviour among judges engaging in selective defection.     

De facto Veto? The Parliamentary Liberal Democrats

The parliamentary party of the Liberal Democrats is a symbol of the third party's growth in recent years. As a result of successful election targeting and an improvement in electoral reach, the party has seen its number of MPs at Westminster more than triple since 1992. It has been claimed that the increase in size of the parliamentary party has been accompanied by an increase in its power, so that the parliamentarians now have a de facto power of veto over policy despite the official policy-making structures as laid out in the Liberal Democrat constitution. This article investigates the make-up of the parliamentary Liberal Democrats and their contemporary influence over policy formation, and the parliamentary party's relationship with the conference and the party leader—and especially the events leading to the change of Liberal Democrat leader in 2006—to establish the veracity of this claim.     

When do autonomous banking regulators promote stability?

Can autonomous banking regulatory agencies reduce the odds that a country will suffer a crippling banking crisis? We investigate the impact that agencies charged with banking regulation and prudential supervision can have on financial stability in the banking sector. We argue that the potential benefits of autonomy are hard to realise because banking regulators face incentives to shirk in their mandate to secure banking stability. These incentives are strongest in political systems with high numbers of veto players, where the autonomy of a banking agency is difficult to undo even if the agency is derelict in promoting banking sector stability. We test an implication of this argument, namely, that the probability of bank crisis onset should diminish with the level of autonomy of the banking agency, but only in polities with low numbers of veto points. We base our analysis of this conditional hypothesis on an original dataset of 79 countries observed between 1971 and 2009 that captures the degree of autonomy of banking agencies from political principals. Our findings confirm that the impact of banking agency autonomy on the risk of bank crisis onset is conditional on the political structure in which the agency is embedded.     

Comment on Michael A. Stegman et al.’s “Preventive servicing is good for business and affordable homeownership policy”: What prevents loan modifications?

Abstract

After discussing the article by Stegman et al., this comment describes the barriers to preventive servicing for securitized residential loans and assesses the importance of loan modifications, given the recent increases in default and foreclosure rates for subprime loans. Several hurdles slow or reduce such modifications, even those that help borrowers and investors alike. For example, self‐interest may reduce servicers’ willingness to modify loans rapidly. In addition, underlying securitization agreements may impede servicers’ ability and discretion in this area. Further, tax laws that govern a common securitization entity may limit modifications, as may accounting standards. Finally, “tranche warfare,” the sometimes contradictory fiduciary duties servicers have toward investors holding different tranches of securitized pools, may decrease their ability or their willingness to modify loans.

This comment concludes that barriers to effective loan modifications should be reduced or eliminated where feasible, but that the securitization of subprime loans creates risks for borrowers.     

政府在社会信用体系建设中的作用探讨

本文从建设社会信用体系是发展市场经济的战略性制度安排入手,阐述了起步阶段的中国社会信用体系建设必须要由政府协调和引导,及政府在该体系建设中的具体作用.最后从政府也是社会信用活动参与者的角度出发,论证了政府守信和相关约束监督机制.     

Sophisticated Behavior under Majoritarian and Non-Majoritarian Voting Procedures

This study addresses the issue of sincere and sophisticated voting under majoritarian and non-majoritarian voting procedures. By conducting experimental voting games, we compared a common majoritarian procedure, Plurality Voting (PV) with a non-majoritarian procedure, Sequential Voting by Veto (SVV). We focused on two different aspects of the subject: the likelihood of sophisticated voting under each one of the voting procedures and the conditions that foster sincere and sophisticated voting under these procedures. The results highlighted the significant differences between majoritarian and non-majoritarian voting procedures as a key factor in determining the tendency of voters to use sincere or sophisticated voting. Clearly, the sincere model was dominant in SVV games while sophisticated voting dominated the PV games. The extent of sophisticated voting ran counter to the group size, a tendency that was stronger under SVV than under PV. By demonstrating the advantages of the minority principle, when voters are small in number, we hope to encourage the development of a solution that will enable the use of SVV in general elections.     

What's at stake? A veto-player theory of voter turnout

Turnout is theorized to reflect elections' policy stakes. All else equal, a highly constrained policymaking context is expected to lower the potential policy stakes of a given election. This study tests if such contexts, which are characterized by multiple veto players, reduce electoral participation. According to time-series cross-sectional autoregressive dynamic lag models of turnout in 311 elections in 21 advanced industrialized democracies, additional veto players decrease turnout in both the short and long run. Moreover, the results suggest veto players conceptually fine-tune and empirically contribute to existing models of cross-national turnout. Hence this study has crucial implications for the students of electoral participation and scholars interested in the democratic outcomes of institutional design.     

The role of civil society in European integration

This paper explores the concept of ‘civic society’ in Western political thought, charting the changing understanding of this concept through history and its manifestation in contemporary political and social life. The paper draws out the inferences for our understanding of the role of government, particularly with the European Union and its relationship with citizens and other representative community‐based and non‐governmental organisations. The paper argues that the fundamental values that are central to civic society underpin the proposed EU Charter on Fundamental Rights and maintains that effective European integration requires responsible participation by Europe's citizens. Copyright © 2001 Henry Stewart Publications