Table Of ContentThe eurozone Crisis and The
TransformaTion of eu GovernanCe
The EU is once again in transformation, experimenting with reforms of its internal and
external governance in response to the Euro crisis. No one knows yet how this reform
process will play out, but its consequences are sure to be momentous, not only for the EU
itself, but also for the wider global order. To analyse these developments, Rodrigues and
Xiarchogiannopoulou have assembled a stellar group of scholars, whose kaleidoscopic
reflections will be of compelling interest to anyone concerned with the future of European
governance.
Jonathan zeitlin, university of amsterdam, The netherlands
Connecting the Euro crisis and EU governance issues, this book is as timely as social
science volumes get!
Gerda falkner, university of vienna, austria
There could be no better moment for the publication of a book like this. Europe is in deep
transformation and this edited volume presents a collection of outstanding assessments of
the different transformation processes that are currently on their way. The authors present
a fascinating mix between the analysis of current policy debates in the context of the recent
crisis and theoretical considerations related to scholarship on the European multi-level
governance. The chapter selection is impressive: the strength of the volume is that it brings
together scholarship at the border between politics, economics, social politics, welfare
analysis, and international relations.
henrik enderlein, Professor of Political economy,
director of Jacques delors institut, hertie school of Governance, Berlin
Globalisation, europe,
multilateralism
institutionally supported by the institute for european studies at the
université libre de Bruxelles
mario TeLÒ, series editor ([email protected])
International Editorial Board
salma Bava, Jnu, new delhi
shaun BresLin, university of Warwick
Theofanis eXadaKTYLos, university of surrey
andrew GamBLe, university of Cambridge
Peter KaTzensTein, Cornell university
robert o. Keohane, Princeton university
Christian LeQuesne, Ceri, Paris
Leonardo morLino, Luiss-Guido Carli, rome
Ben rosamond, university of Copenhagen
vivien sChmidT, Boston university
Beth simmons, harvard university
Karen smiTh, Lse, London
Jan zieLonKa, university of oxford
michael zÜrn, WzB, Berlin
zhu Liqun, Cfau, Beijing
frederik PonJaerT, uLB, series manager ([email protected])
The institut d’etudes européennes de l’université Libre de Bruxelles (iee-uLB) is a
leading research institution, with a large global collaborative university network. as part
of successful research consortia, the iee-uLB was awarded two eu funded programmes.
The first is an international multidisciplinary doctoral programme in Globalisation, Europe,
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year period, this programme will fund up to 50 Phd students as well as hosting Phd school
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and in global governance. volumes in this series share innovative research objectives around
Globalisation, the eu’s evolution within it, the changing multilateral cooperation, and the
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The series includes collaborative volumes, research based monographs and textbooks
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board members. other titles in the series can be found at the back of this book.
The eurozone Crisis and the
Transformation of eu Governance
internal and external implications
Edited by
maria JoÃo rodriGues
Université Libre de Bruxelles, Belgium
eLeni XiarChoGiannoPouLou
Université Libre de Bruxelles, Belgium
© maria João rodrigues, eleni Xiarchogiannopoulou and the contributors 2014
all rights reserved. no part of this publication may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise without the prior permission of the publisher.
maria João rodrigues and eleni Xiarchogiannopoulou have asserted their right under the
Copyright, Designs and Patents Act, 1988, to be identified as the editors of this work.
Published by
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British Library Cataloguing in Publication Data
a catalogue record for this book is available from the British Library
The Library of Congress has cataloged the printed edition as follows:
The eurozone crisis and the transformation of eu governance : internal and external
implications / edited by maria João rodrigues and eleni Xiarchogiannopoulou.
pages cm.—(Globalisation, europe, multilateralism series)
includes bibliographical references and index.
isBn 978-1-4724-3307-7 (hardback)—isBn 978-1-4724-3310-7 (pbk)—isBn 978-
1-4724-3308-4 (ebook)—978-1-4724-3309-1 (epub) 1. european union countries—
economic conditions—21st century. 2. european union countries—Politics and
government—21st century. 3. Global financial Crisis, 2008–2009—Political aspects—
european union countries. 4. european union countries—economic policy.
5. financial crises—european union countries. i. rodrigues, maria João, author, editor
of compilation. ii. Xiarchogiannopoulou, eleni, author, editor of compilation.
hC240.e895 2014
337.1’42—dc23
2013045819
isBn 9781472433077 (hbk)
isBn 9781472433107 (pbk)
isBn 9781472433084 (ebk – Pdf)
isBn 9781472433091 (ebk – ePuB)
V
Printed in the united Kingdom by henry Ling Limited,
at the dorset Press, dorchester, dT1 1hd
Contents
List of Figures and Tables vii
List of Contributors ix
List of Abbreviations xv
Introduction 1
Maria João Rodrigues and Eleni Xiarchogiannopoulou
Part I EuroPEan ModEs of GovErnancE:
concEPts, rEcEnt trEnds and
IntErnatIonal IMPlIcatIons
1 A Good or a Bad Crisis for the European Union? 11
Zoe Lefkofridi and Philippe C. Schmitter
2 Economic Crisis and the Internationalisation of
EU Competition Policy 29
Michelle Cini
3 The Transformation of EU Governance, the Open Method of
Coordination and the Economic Crisis 41
Susana Borrás and Claudio M. Radaelli
Part II thE transforMatIon of EuroPEan
EconoMIc GovErnancE
4 Beyond Intergovernmentalism: The Puzzle of European
Economic Governance 59
Sergio Fabbrini
5 Europe Waiting for Hamilton: Assumption of State Debts,
the Federal Leap 71
Christian Stoffaës
6 Political Lessons from the Economics of the Euro-crisis 85
Stefan Collignon
vi The Eurozone Crisis and the Transformation of EU Governance
7 EU Financial Market Regulation and Stakeholder Consultations 107
Rainer Eising, Daniel Rasch and Patrycja Rozbicka
Part III thE transforMatIon of EuroPEan socIal
PolIcy GovErnancE
8 EU Social Policy Content and Governance: A Complex
Relationship with EU Economic Integration Over Time 123
Janine Goetschy
9 The Euro-Crisis – Welfare State Conundrum 137
Anton Hemerijck
10 Game Change in EU Social Policy: Towards More
European Integration 157
Caroline de la Porte and Elke Heins
Part Iv thE IntErnatIonal dIMEnsIon of thE
transforMatIon of Eu GovErnancE
11 The Eurozone Crisis and the Transformation of EU Economic
Governance: From Internal Policies to External Action 173
Maria João Rodrigues
12 Assessing the EU’s ‘Social’ Trade Policy from an External
Europeanization Perspective: The Case of the Generalised
System of Preferences 191
Eleni Xiarchogiannopoulou
13 European Re-Regulation Meets Global Financial Governance:
Constraint or Complement? 203
Daniel Mügge
Conclusion 215
Maria João Rodrigues
Appendices 223
Bibliography 229
Index 253
List of Figures and Tables
Figures
1.1 Alternative actor strategies 13
1.2 Crisis-induced decision-making cycles 14
1.3 The ‘fourth’ or ‘transcending’ cycle of crisis decision-making 17
6.1 Debt-to-GDP ratios 92
6.2 Unit labour cost indices 98
6.3 Competitiveness index for selected Eurozone countries 99
7.1 The number of articles on the AIFM, DGS, ICS proposals in
national newspapers 117
7.2 The types of actors involved in the formulation of the AIFM,
DGS and ICS directives 118
9.1 Employment/population ratio, 1980–2007 143
9.2 Activity rates of women (1987–2007) 144
9.3 Employment rates of older workers (55–64), 1987–2007 144
9.4 Social investment spending and social (insurance) protection
based spending in 1997 (top panel) and 2007 (bottom panel),
per cent of GDP 145
Tables
3.1 Scope conditions for OMC usages 50
5.1 Champions of public debt in Europe (per cent of GNP) 80
5.2 Deterioration of public debt (per cent of GNP) 81
6.1 Over- and undervaluation of unit labour costs 100
9.1 Core differences between EMU’s social retrenchment policy
regime and social investment policy 152
10.1 Typology of ‘integration’ 159
10.2 Excessive Deficit Procedures starting before 2008 162
viii The Eurozone Crisis and the Transformation of EU Governance
10.3 Excessive Deficit Procedures started after 2008 166
10.4 Integration effects of main EU fiscal and social instruments
before and after the crisis 169
Conc.1 The central problems of the Eurozone 215
List of Contributors
Susana Borrás is a professor on innovation and governance. She conducts research
on the interaction between governments and innovation. As a social scientist expert
on public policy, two of her leading questions concern what governments can do to
foster and to improve socio-technical innovation in the economy, and what makes
some decisions regarding socio-technical and innovation change democratically
legitimate and others not. Her comparative analyses show the importance that
socially and governmentally defined institutions have on innovation performance
and on democratic legitimacy of science and technology. Her main attention is in
the European Union, both at the supra-national level as well as national and local
(cluster) levels. In particular she studies the complex interactions between public
and private realms, which have been called ‘new modes of governance’.
Susana Borrás has a part-time affiliation at CIRCLE, Lund University, Sweden,
as Visiting Professor. She is a serving member of the Danish Research Policy
Council and is the advisor to the Danish Minister. She is a board member of the EU-
Spri Forum academic association, and a board member on the Danish European
Community Studies Association (ECSA-DK), and the FORFI programme at the
Norwegian Research Council. She was previously Director of the Jean Monnet
Centre of Excellence at the Copenhagen Business School (2010–13).
Michelle Cini is Professor of European Politics in the School of Sociology,
Politics and International Studies at the University of Bristol. She is co-editor
of the Journal of Common Market Studies, and co-edits the Oxford University
Press textbook, European Union Politics. Her research has focused, among other
things, on the politics of the European Commission and EU competition and state
aid policy. Her current research is on public ethics and institutional change in
EU institutions.
Stefan Collignon has been Ordinary Professor of Political Economy at Sant’Anna
School of Advanced Studies, Pisa, since October 2007, and International Chief
Economist of the Centro Europa Ricerche (CER), Roma, since July 2007. He is
the founder of the Euro Asia Forum at Sant’Anna School of Advanced Studies.
Previously, he was Centennial Professor of European Political Economy at
the London School of Economics and Political Science (LSE) from January 2001
to 2005. During 2005 to 2007 he was Visiting Professor at Harvard University,
Faculty of Arts and Sciences, Government Department, and an associate of the
Minda de Gunzburg Centre for European Studies at Harvard. He has also taught
