POLITICAL ECONOMY OF EUROPEAN INTEGRATION

POLITICAL ECONOMY OF EUROPEAN INTEGRATION
Module
“Regions in Globalization: Europe”
Lecturer:
Prof. em. Dr Hartmut Elsenhans
Time:
Tuesday, 9 am – 11 am,
Place:
NSG 329
Participation:
Choice
Examination:
Presentation and Essay
Moodle:
COURSE DESCRIPTION
This course describes the contradictions of European integration and the institutional set-up, arguing
that there is an overarching process of maintaining European integration, with the consequence that in
any crisis elites react by intensifying the networks of supranational governance. The institutional setup and the main policy area are points of departure for this reflection. Some areas of major importance
for thickening the ties are focussed on. European integration is an elite-driven process based on the
conviction of a large enough segment of European elites on the necessity of unification for
maintaining European independence in a world of increasingly continental states or empires. Starting
from the historical process and its embeddedness in political and economic contradictions of the preunification European state system, the hybrid institutions of the Union are analysed in their dynamics.
Key social and political fields are analysed regional homogenisation are analyzed in their relation to
the deepening of the integration process also via commitment of increasingly large groups in the
integration process. Standard theory of European integration is confronted with the actual process of
elite-led identity creation. Socially uncontroversial policy fields such as foreign policy behaviour are
instrumentalized, as are highly controversial issues of such as the actual Euro crisis. The course brings
together the different layers of the integration issue by constantly keeping in mind that there is an
overarching consensus of European elites about the desirability of the integration process. As a result
the issue is not whether integration is deepened, but how emerging divisive issues and opposing
political coalitions can be instrumentalised for further enhancing and deepenening the integration
process
Suggested introductory reading:
Elsenhans, Hartmut: "Two Superpowers in the Making: Dangerous Misunderstandings for Their
Trajectories: The Idealism/Realism Debate and the Perceptions of the EuroCrisis*", in: Foreign Policy
Research Centre Journal, 13 (2013); pp 127-156.
Elsenhans, Hartmut: "European Union’s External Relations: Nature, Priorities, and Issues", in: Amin,
Jayaraj (ed.): The European Union in a Changing International Order (New Delhi: Kaveri, 2013);
pp. 125-173.
Schmidt, Siegmar; Schünemann, Wolf: Europäische Union. Eine Einführung (Baden-Baden: Nomos,
2009).
Wallace, Helen; Wallace, William: Policy-Making in the European Union (Oxford: Oxford University
Press, 1996).
Warleigh, Alex: Understanding European Union Institutions (London; New York: Routledge, 2002).
MacCarthy, Patrick: France - Germany in the 21st Century (New York: Palgrave Macmillan, 2001).
Corner, Mark: The European Union: An Introduction (London: I. B. Tauris. 2014.
Pinder, John; Usherwood, Simon: The European Union: A Very Short Introduction
(Oxford: Oxford University Press, 2013)
1. European integration in a long-term perspective: Permanent challenges and 1945 insights:
How it started
7 April 2015
There is a definitive European geopolitics with the Rhine Valley from the eastern part of the North Sea
and the access to the Baltic Sea via the Rhine to the Western Alp passes in northern Italy. This is the
core region of Europe after the end of the Roman Empire. The struggle over its control is the central
aspect of interstate conflict since the late 15th century. There were several solutions with at the centre
the status to be given to Germany. European integration is one solution to the issue combining equality
for Germany without German hegemony.
Literature:
Gehler, Michael; Kaiser, Wolfram: "Transnationalism and Early European Integration: The Nouvelles
Equipes Internationales and the Geneva Circle 1947-1957", in: Historical Journal, 44, 3 (2001); pp.
773-796.
MacLean, Iain: "Two Analytical Narratives about the History of the EU", in: European Union Politics,
4, 4 (December 2003); pp. 499-506.
Milward, Alan S.: The European Rescue of the Nation-State (London; New York: Routledge, 1992);
119-223.
Wallace, William: Regional Integration: West European Experience (Washington: Brookings
Institution, 1994); 11-30.
2. The Nature of the “Beast”: A state, a confederation, a federation, or what else? Institutions
between supranationality and intergovernmentalism: The basic structures and their origins
14 April 2015
From its very beginning European unification was considered an irreversible process aiming at the
creation of supranational institutions which could impose the will of the majority of the states on a
particular state so that even a powerful state could be put into minority. Europe is not is not a
federation, but unlike a confederation there is a unique decision-making centre which can impose its
will on member states and is not only the result of intergovernmental coordination. This is a unique
process of state/nation-building.
Literature:
Aalberts, Tanja E.: "The Future of Sovereignty in Multilevel Governance Europe – A Constructivist
Reading", in: Journal of Common Market Studies, 42, 1 (March 2004); pp. 23-46.
Caporaso, James A.: "The European Union and Forms of State: Westphalian, Regulatory or PostModern", in: Journal of Common Market Studies, 34, 1 (May 1996); pp. 29-51.
Eberlein, Burkard; Kerwer, Dieter: "New Governance in the European Union: A Theoretical
Perspective", in: Journal of Common Market Studies, 42, 1 (2004); pp. 121-142.
Moravcsik, Andrew: "Negotiating the Single European Act: National Interests and Conventional
Statecraft in the European Community", in: International Organization, 45, 1 (Winter 1991); pp. 1956.
3. Institutions: The Council of Ministers and the Commission
21 April 2015
The Council of Ministers and especially the European Council are the more intergovernmental of the
community institutions but they a major area of identity building. In the Council of Ministers the
heads of departments the national administrations of the member states interact. The Commission is
the most supranational institution of the community, a supranational institutions without direct
electoral legitimacy, which refers to the purposes of the treaties in order to pretend to an overarching
role.
Literature:
Bostock, David: "Coreper Revisited", in: Journal of Common Market Studies, 40, 2 (June 2002); pp.
215-234.
Cini, Michelle: The European Commission. Leadership, Organisation and Culture in the EU
Administration(Manchester: Manchester University Press, 1996), pp.11-34, 79-179
Neyer, Jürgen: "Justifying Comitology: The Promise of Deliberation", in: Neunreither, Karlheinz;
Wiener, Antje (eds.): European Integration After Amsterdam. Institutional Dynamics and Prospects
for Democracy (Cambridge, Mass.; London et al.; New Delhi et al.; Oxford: Oxford University Press,
2000); pp. 112-128.
4. Norms and law making in the European Union and the role of the Parliament, the hierarchy
of law: Ordinances, directives, the Principle of Subsidiarity
28 April 2015
As the Parliament has no power on issues which constitute cleavages in European public opinions, the
parliament tries to increase its participation in the legislative process in order to represent such
interests and to become a partner for social forces which try to influence and various levels decisionmaking processes. In order to avoid majority decisions not being accepted by substantial minorities
national governments in close contact with regional public opinions mediate majority will. The
directive is the formal Institute to allow his mediation. The process of unification takes the form of
imposing warrant more strictly the obligation to governments to transform directives international
laws.
Literature:
Beach, Derek: "The European Parliament in the 2000 IGC and the Constitutional Treaty Negotiations:
From Loser to Winner", in: Journal of European Public Policy, 14, 8 (2007); pp. 1271-1292.
Burns, Charlotte; Rasmussen, Anne; Reh Christine: "Legislative Codecision and Its Impact on the
Political System ofthe European Union", in: Journal of European Public Policy, 20, 7 (2013); pp. 941952.
Häge, Frank; Naurin, Daniel: "The Effect of Codecision on Council Decision-making:
Informalization,Politicization and Power", in: Journal of European Public Policy, 20, 7 (2013);
pp. 953-971.
Thomson, Robert: "Same Effects in Different Worlds: The Transposition of EU Directives", in:
Journal of European Public Policy, 16, 1 (2009); pp. 1-18.
5. The Court
5 May 2015
The court is one of the most typical institutions and the European integration process. The court is
removed from society, an elitist institutions, and is therefore able to push the integration process to
levels beyond what society would be actually able to.
Literature:
Gerstenberg, Oliver: "Expanding the Constitution Beyond the Court: The Case of EuroConstitutionalism.", in: European Law Journal, 8, 1 (March 2002); pp. 172-192.
Kennedy, Tom: "The European Court of Justice", in: Peterson, John; Shackleton, Michael (eds.): The
Institutions of the European Union (Cambridge, Mass.; London et al.; New Delhi et al.; Oxford:
Oxford University Press, 2006); pp. 125-143.
Wessels, Wolfgang: Das politische System der Europäischen Union (Wiesbaden: VS Verlag für
Sozialwissenschaften, 2008); pp. 237-277. [Ebook via UB]
6. Coping with Inequality: The threat of polarisation and the politics of cohesion: the Common
Agricultural Policy, regional policy, the politics of cohesion
12 May 2015
European integration was expected from its beginning to increase polarisation. A first instrument of
coping with this problem has been the common agricultural policy. As it turned out that growth does
not depend on the accumulation of physical capital but on more complex processes of mediation, more
complex policies where added. These policies are basically supply side policies. They are not fitted in
macroeconomic policies of favouring catching up. This explains the loss of competitiveness of the
European South.
Literature:
Barry, Frank: "Economic Integration and Convergence Processes in the EU Cohesion Countries", in:
Journal of Common Market Studies, 41, 5 (December 2003); pp. 897-921.
Beugelsdijk, Maike; Eijffinger, Sylvester C.W.: "The Effectiveness of Structural Policy in the
European Union: An Empirical Analysis for the EU-15 in 1995-2001", in: Journal of Common Market
Studies, 43, 1 (2005); pp. 37-51.
Neven, Damien: "Regional Convergence in the European Community", in: Journal of Common
Market Studies, 33, 1 (March 1995); pp. 47-65.
7. How much social policy in order to converge? Wages and employment policies
19 May 2015
Europe avoids to promote policies which appear normal within nations in order to become a nation or
something similar. As Europe is not a nation, the usual process of convergence within a nation,
migration to the better paid jobs, and redistribution of population has to be avoided, as has to be
avoided artificial alignment of wages to union wide averages. Wage differences are thought of as a
major instrument of allowing backward regions to catch up. Social policy is therefore restricted to the
institutional conditions for the class struggle, for example the representation of unions within
companies, etc.
Literature:
Alber, Jens: "The European Social Model and the United States", in: European Union Politics, 7, 3
(September 2006); pp. 393-419.
Andersen, Torben M.: "European Integration and the Welfare State", in: Journal of Population
Economics,16 (2003); pp. 1-19.
Franzese Jr., Robert J.; Hays, Jude C.: "Strategic Interaction among EU Governments in Active Labor
Market Policy-making: Subsidiarity and Policy Coordination under the European Employment
Strategy", in: European Union Politics, 7, 2 (June 2006); pp. 167-189.
8. Business lobbies, business culture and the convergence of norms, management, and industrial
policies. A European homogeneous market and a European sphere of business culture
Supplementary session scheduled 22 May 2015, 11 am to 1 pm, Room TBA
The European Union is the major arena where societies and economies try to improve their
competitiveness by adopting institutional settings of competitors. The European Union is therefore the
major arena for checking the argument about homogenisation in major areas of rules through
globalisation. This process is linked to Europe as a neoliberal project as long as there is no European
body politic. The European Union works through deregulation, as destroying national norms is more
easy than politically agreeing on new union norms which replace existing national norms. European
integration is therefore supported especially by business. In order to support this process business is
better organised at the European Union level than labour.
Literature:
Coen, David: "The Evolution of the Large Firm as a Political Actor in the European Union", in:
Journal of European Public Policy, 4, 1 (1997); pp. 91-108.
Drezner, Daniel: "Globalization, Harmonization, and Competition: The Different Pathways to Policy
Convergence", in: Journal of European Public Policy, 12, 5 (October 2005); pp. 841-859.
Jäger, Kai: "Sources of Franco-German Corporate Support for the Euro: The Effects of Business
Network Centrality and Political Connections", in: European Union Politics, 14, 1 (2013); pp. 115139.
Nollert, Michael: "Lobbying for a Europe of Big Business: The European Roundtable of
Industrialists", in: Bornschier, Volker (ed.): State-Building in Europe. The Revitalization of European
Integration (Cambridge et al.: Cambridge University Press, 2000); pp. 187-209.
Pageaut, Audrey: "La genèse de la European Round Table of Industrialists (ERT). Un investissement
politique à l'échelle européenne d'élites économiques dans les années 1980", in: Michel, Hélène (ed.):
Représenter le patronat européen. Formes d'organisation patronale et modes d'action européenne
(Brüssel et al.: Peter Lang, 2013); pp. 178-208.
9. Sources of identity and support: Public opinion, European parties, European pressure groups
Supplementary session scheduled, 22 May 2015, 1 pm to 3 pm, Room TBA
There is a complex process of creation of identity through the political process. Parties and pressure
groups are thought of as agents of such identity formation. This represents a particular aspect of the
theory of civil society being able to replace national parochial identities.
Literature:
Faust, Jörg; Garcia, Maria Melody: "With or Without Force? European Public Opinion on Democracy
Promotion", in: Journal of Common Market Studies, 52, 4 (2014); pp. 861-878.
Hakhverdian, Armen; Elsas, Erika van; Brug, Woulter van; Kuhn, Theresa: "Euroscepticism and
Education: A Longitudinal Study of 12 EU Member States, 1973-2010", in: European Union Politics,
14, 4 (2013); pp. 522-541.
Johansson, Karl Magnus: "The Emergence of Political Parties at European Level: Integration
Unaccomplished", in: Gustavsson, Sverker; Oxelheim, Lars; Pehrson, Lars (Eds.): How Unified Is the
European Union? European Integration between Visions and Popular Legitimacy (Berlin et al.:
Springer, 2009); pp. 157-178.
Serricchio, Fabio; Tsakatikas, Myrto; Quaglia, Lucia: "Euroscepticism and the Global Financial
Crisis", in: Journal of Common Market Studies, 51, 1 (2013); pp. 51-64.
Usherwood, Simon; Startin, Nick: "Euroscepticism as a Persistent Phenomenon", in: Journal of
Common Market Studies, 51, 1 (2013); pp. 1-16.
10. Theories of integration: Functionalism, liberalism, constructivism
26 May 2015
Theories of European integration are sociological theories of community building. They insist on the
construction of identity in the minds of people, either on the emergence of common interests.
Literature:
Checkel, Jeffrey T.: "'Going Native' in Europe? Theorizing Social Interaction in European
Institutions", in: Comparative Political Studies, 36, 1/2 (February/March 2003); pp. 209-231.
Elsenhans, Hartmut: "Théories économiques pour l'étude de l'intégration européenne", in: Lasok,
Dominik; Soldatos, Panayotis (eds.): Les Communautés Européennes en fonctionnement (Paris:
Bruylant, 1981); pp. 571-593.
Kelemen, R. Daniel: "The Structure and Dynamics of EU Federalism", in: Comparative Political
Studies, 36, 1/2 (February/March 2003); pp. 184-208.
Risse-Kappen, Thomas: "Exploring the Nature of the Beast: International Relations Theory and
Comparative Policy Analysis Meet the European Union", in: Journal of Common Market Studies, 34,
1 (May 1996); pp. 53-80.
Mitrany, David: "The Functional Approach in Historical Perspective", in: International Affairs, 47, 3
(September 1971); pp. 532-543.
11. The Euro as an instrument of convergence, integration, and identification
2 June 2015
A common economic area is difficult to achieve if exchange rates float. Since the breakdown of the
Bretton Woods system Europe was trying to find stable exchange rates. The more regulations
disappeared, the more dominant the German currency beating. The Euro is therefore an application of
the principle of gaming Germany by integration. The euro makes national boundaries disappear for the
large public. In a Toennies type of society being the area of exchange, the Euro homogenises this area
of exchange as all participants receive unique prices across the union territory. It is assumed therefore
that the euro is a major instrument of identity building.
Literature:
Banducci, Susan A.; Karp, Jeffrey A.; Loedel, Peter H.: "Economic Interests and Public Support for
the Euro", in: Journal of European Public Policy, 16, 4 (2009); pp. 564-581.
Crum, Ben: "Saving the Euro at the Cost of Democracy?*", in: Journal of Common Market Studies,
51, 4 (2013); pp. 614-630.
Elsenhans, Hartmut: "The Euro in the World Economy", in: Elsenhans, Hartmut; Jain, Rajendra K.;
Narang, Amarjit S. (eds.): The European Union in World Politics (New Delhi: Radiant Publishers,
2006); pp. 73-99.
Risse, Thomas: "The Euro Between National and European Identity", in: Journal of European Public
Policy,10, 4 (August 2003); pp. 487-505.
12. The International Dimension: An Atlanticist Versus a European Union, a Civilian Power?
An Economic Power of Civilising the World? The Common Foreign Policy: Evolution, Types,
Areas, Institutions
9 June 2015
As Europe is no major world power and as there is a major convergence of Europe's nations to the
shape of the United States, foreign policy can be an area where agreement on common action can be
found. Foreign policy is an area where important issues are dealt with by nations and symbolic issues
by the Common foreign policy. This allows to see how the process of European integration uses the
symbolic aspect of politics in order to transform realities supposed to exist in the minds of the people.
Literature:
Andonova, Liliana B. ; Tuta, Ioanna: "Transnational Networks and Paths to EU
EnvironmentalCompliance: Evidence from New Member States", in: Journal of Common Market
Studies, 52 (2014); pp. 775-793.
Dover, Robert: "From CFSP to ESDP: The EU's Foreign, Security, and Defence Policies", in: Cini,
Michelle; Nieves Pérez-Solórzano Borragán (eds.): European Union Politics (Cambridge, Mass.;
London et al.; New Delhi et al.; Oxford: Oxford University Press, 2010); pp. 239-257.
Elsenhans, Hartmut: "European Union’s External Relations: Nature, Priorities, and Issues", in: Amin,
Jayaraj (ed.): The European Union in a Changing International Order (New Delhi: Kaveri, 2013);
pp. 125-173.
Hoffmann, Stanley: "Europe's Identity Crisis Revisited", in: Daedalus, 123, 2 (Spring 1994); pp. 1-36.
Hoffman, Stanley: "Towards a Common European Foreign and Security Policy?", in: Journal of
Common Market Studies, 38, 2 (2000); pp. 189-198.
13. Global liberalism and the Southern dimension
16 June 2015
The link between liberalism and integration because of less necessity to positively formulate new rules
at the political levels has influenced the external profile of the European Union in areas that matter
less. Global liberalism in the relation with the South is one aspect.
Literature:
Elsenhans, Hartmut: "India, Europe, and Globalisation", in: Jain, Rajendra K. (ed.): India and the
European Union in the 21st Century (New Delhi: Radiant, 2002); pp. 213-240.
Young, Alasdair R; Peterson, John: "The EU and the New Trade Politics", in: Journal of European
Public Policy, 13, 6 (2006); pp. 795-814.
14. The Eastern Enlargement of the European Union
23 June 2015
The Eastern enlargement has been a complex process of transnational coalition building on the basis
of liberalism, embodied in the acquis communautaire. The dynamics unleashed did not necessarily
correspond to the expectations of those who promoted economic liberalism in order to get political
liberalism. Some cases are however fulfilling the expectation.
Literature:
Bailey, David; Propris, Lisa de: "A Bridge too Phare? EU Pre-Acession Aid and Capacity-Building in
the Candidate Countries.", in: Journal of Common Market Studies, 42, 1 (March 2004); pp. 77-98.
Lippert, Barbara: The Discussion on EU Neighbourhood Policy- Concepts, Reform Proposals and
National Positions. International Policy Analysis (Berlin: Friedrich-Ebert-Stiftung, July 2007).
15. As a Conclusion: The Euro Crisis and Establishing Deeper Integration
30 June 2015
The exciting aspect of the current crisis of the Euro is that it has to result in more integration. The
problem had probably been expected and even accepted because at the time the completion of more
political integration was out of reach of the politicians who promoted the Euro. Short-term interests of
the dominating economies in Europe impose actually new regulations for pushing member states into
the direction of more savings and budget austerity. This will create mechanisms of managing in the
European economy, which comprises of coordination in wage policies, the leading countries having to
expand their internal markets, sharing of public debts which had been instrumental for the more
competitive economies being able to solve their employment problems by export surpluses, burden
reduction for the weaker economies in order to allow them also be expand their internal markets. This
possibly but not necessarily will lead to new transnational alliances, in this case possibly by labour.
The conditions for such a process have to be discussed. Papers to this issue will be presented to the
course in due time.
Literature:
Araghi, Farshad: "Political Economy of the Financial Crisis: A World-Historical Perspective", in:
Economic and Political Weekly, 43, 45 (November 2008); pp. 30-32.
Bofinger, Peter; Habermas, Jürgen; Nida-Rümelin, Julian: "Plus que jamais, l'Europe", in: Le Monde
(August 2012); p. 12.
Elsenhans, Hartmut: "Endlose Eurokrise?", in: WeltTrends, 21 (2013); p.85-88.
Crotty, James: "Structural Causes of the Global Financial Crisis: A Critical Assessment of the 'New
Financial Architecture'", in: Cambridge Journal of Economics, 33, 4 (July 2009); pp. 563-580.