Experimentalist governance in the EU: The emperor's new clothes?

Most students of the EU agree by now that it is best described as a governance system. There is far less consensus on what kind of governance the EU actually features: modern, postmodern, network, cooperative, innovative or simply new? Sabel and Zeitlin have advanced yet another concept. This paper discusses the added value of their “experimentalist governance” (EG), as presented in an edited volume published in 2010, for understanding and explaining the nature of EU policymaking, addressing four questions: First, to what extent is EG distinct from existing concepts of governance? Second, how pervasive is EG in the EU when compared to alternative forms of governance? Third, what is the effect of EG on EU policy outcomes, on the one hand, and the overall architecture of the EU, on the other? Finally, does EG solve or exacerbate the EU's democratic deficit?     

Is experimentalist governance self-limiting or self-reinforcing? Strategic uncertainty and recursive rulemaking in European Union electricity regulation

Is experimentalist governance (XG) self-limiting or self-reinforcing by virtue of its relationship to strategic uncertainty as an essential scope condition? This article tackles this important but understudied question by elaborating a series of idealtypical pathways for the temporal evolution of XG in specific policy domains, ranging from reversion to hierarchical governance through endogenous reduction of strategic uncertainty at one extreme to institutionalization of experimentalism as a multipurpose governance architecture at the other. It then goes on to test the empirical validity of these contrasting theoretical expectations about the long-term relationship between XG and strategic uncertainty through a process-tracing analysis of electricity regulation in the European Union over a series of policy cycles since the 1990s. Building on and extending previous research in this domain, this article's findings strengthen empirical confidence in the theoretical expectation that XG is self-reinforcing, while diminishing confidence in the claim that it is self-limiting.     

The rewards of cooperation: The effects of membership in European regulatory networks

Networks famously epitomize the shift from ‘government’ to ‘governance’ as governing structures for exercising control and coordination besides hierarchies and markets. Their distinctive features are their horizontality, the interdependence among member actors and an interactive decision‐making style. Networks are expected to increase the problem‐solving capacity of political systems in a context of growing social complexity, where political authority is increasingly fragmented across territorial and functional levels. However, very little attention has been given so far to another crucial implication of network governance – that is, the effects of networks on their members. To explore this important question, this article examines the effects of membership in European regulatory networks on two crucial attributes of member agencies, which are in charge of regulating finance, energy, telecommunications and competition: organisational growth and their regulatory powers. Panel analysis applied to data on 118 agencies during a ten‐year period and semi‐structured interviews provide mixed support regarding the expectation of organisational growth while strongly confirming the positive effect of networks on the increase of the regulatory powers attributed to member agencies.     

Does regulating remuneration affect the market value of European Union banks? Large versus small/medium sized banks

The aim of this paper was to analyze equity market reactions to the mandatory European Union regulation of remuneration policies in financial institutions. Using event study methodology, we investigated market reactions to the first European Directive on compensation policies after the financial crisis using a sample of 124 banks operating in the European Union. We divided the sample into two groups according to bank size considering four criteria: the US Dodd‐Frank Act 2010, the Liikanen Report 2012, Global Systemically Important Banks 2011, and the European Central Bank 2014. We found strong evidence of an average negative market reaction to compensation regulation. Moreover, this negative reaction is stronger for large banks than for small/medium sized banks.     

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.     

Domestic scrutiny of European Union politics: Between whistle blowing and opposition control

Some European law proposals are subject to scrutiny by national parliaments while others go unchecked. The analysis in this article indicates that the opposition scrutinises European Union law to gather information on the proceedings inside the Council of Ministers and the European Parliament. Yet whereas strong opposition parties scrutinise highly politicised law proposals, weak opposition parties tend to scrutinise those proposals that are negotiated under the non‐transparent fast‐track procedure. In addition, there is ample evidence that the leading minister initiates scrutiny in order to strengthen his or her intergovernmental bargaining leverage. Yet, this Schelling Conjecture presumes that the party of the minister is located between the expected bargaining position in the Council and the coalition partner. Any other domestic interest constellation could lead to scrutiny motivated by whistle blowing. However, an issue's salience helps us to separate the whistle blowing from the Schelling Conjecture.