More Integration, less Federation The European Integration of Core State Powers

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1 More Integration, less Federation The European Integration of Core State Powers Philipp Genschel, EUI & Markus Jachtenfuchs, Hertie School Paper prepared for presentation at the Scuola Superiore Sant'Anna, Pisa, 21 April 2016

2 Argument The EU is undergoing fundamental change Institutional: the New Intergovernmentalism (Bickerton et al.) Territorial: differentiated integration (Schimmelfennig et al.) Political: the rise of Euroscepticism and the constraining dissensus (Hooghe & Marks) The change is caused by the integration of core state powers (CSP)

3 Core state powers (CSP) CSPs are the constitutive powers of the nationstate Legitimate coercion Public finance Public Administration CSPs are resources not policies related to but different from High Politics high symbolic and distributive significance

4 Structure of the Presentation 1. Pattern and extent of CSP integration Formal authority EU capacity building EU regulation 2. Institutional and political correlates of CSP integration Institutional fragmentation Territorial differentiation Political segmentation 3. Drivers of CSP integration State elites Mass Publics

5 I. Pattern and extent of the integration of Core State Powers (CSPs)

6 EU formal authority in CSP: expanding Scope : expansion of EU treaty mandate since Maastricht (CFSP, EMU, JHA) Depth: increasing involvement of supranational actors and QMV Market integration: Economic External Relations; Environmental &Consumer Protection; Occupational Health; Labour; R&D; Economic Freedoms; Competition & Industry; Energy & Transport; Agriculture; Social & Territorial Cohesion CSP: Political External Relations; Criminal and domestic security; Macroeconomic & Employment; Money; Tax

7 EU capacity in CSP: slow growth No European army Minimal joint command & control facilities EU military missions No European tax Small EU budget Emergency funds & limited power to issue debt ECB No (sizeable) European public administration EU civil servants Information infrastructures (VIES, SIS, etc.)

8 EU Regulation of CSP: extensive Mobilize national CSPs for EU purposes European Administrative Space (hard) Single defense market (hard) Military force planning (soft) Constrain externalities of national CSPs Fiscal Surveillance (hard?) Dublin Regulation (hard?)

9 Take-home messages The European integration of CSPs is happening Strong expansion of EU formal authority Strong expansion of EU regulation Weak EU capacity building The main difference to federal state building is NOT the extent of integration BUT the pattern (mostly regulatory)

10 II. Institutional and political correlates of the integration of core state powers

11 Institutional fragmentation Constitutional fragmentation Fragmentation of Treaty law: CSP-specific Treaty rules and procedures (CFSP, EMU, JHA) Fragmentation of legal sources: International law treaties and MoUs (e.g. Emergency Funds) Organizational fragmentation Proliferation of de novo bodies for CSP-issues Intergov. (European Council, Eurogroup, PSC, etc.) Supranat. (High Rep, EEAS, ECB, regul agencies, etc.) Involvement of IOs in CSP IMF in EMU NATO in CFSP

12 Territorial Differentiation Opt outs Uncommon in market integration Common in CSP integration EMU Defense JHA Opt outs vary in integration instrument High in capacity building Low in regulation

13 Political Segmentation CSP integration associated with EU politicization EU politicization is not associated with a shift of mass loyalties to the European level the emergence of European mass organizations and public discourses The emergence of transnational cleavage EU politicization is associated with The rise of Euroscepticism Principled rather than conditional opposition to EU policies The reinforcement of inter-national cleavages Greece v. Germany rather than left v. right

14 Take-home messages The European integration of core state powers differs from historical state building associated with centralized capacity building and the institutional, territorial and political consolidation of the state European market integration associated with the institutional consolidation, territorial inclusiveness and de-politicization of EU institutions

15 III. The drivers of the integration of core state powers

16 Main drivers? Three main differences to market integration Sectoral interests state elites rather than business actors Mass publics high likelihood of mobilization Government preference formation balancing rather than aggregation

17 State elites Officials responsible for and deriving income and status from the management of national core state powers have stable institutional & policy interests support integration if (and in modes that) serve these interests: General skepticism (strong home base) Regulation rather than capacity building Intergovernmental rather than supranational arrangements Sector-specific arrangement rather than multipurpose institutions

18 Mass Publics Politicization likely because CSP integration often affects collective identities and distributive interests Politicization is unstable and volatile Politicization does not imply Euroskepticism National versus cosmopolitan identities Net-payers versus net-recipient Cosmopolitans & net-recipients: More integration/ capacity buiding/ supranationalism Nationalists & net-payers: less integration/more regulation/ more intergovernmentalism

19 Government preference formation I Sectoral interests Pro Contra Mass public Pro Contra Permissive consensus Technocratic integration Constraining dissensus Sectoral Resistance Overselling Integration General Opposition Underselling integration Veto or Opt-out

20 National preference formation II Sectoral interests Pro Contra Mass public Pro Defense market, Administrative space Defense planning, Fiscal surveillance Contra Emergency funds, OMT Eurobonds, Migration

21 Conclusions? Trends and patterns in the integration of core state powers will continue Problems emerge where common policies depend on European capacities (fiscal, military, administrative) Capacities are not forthcoming: deficient outcomes refugee crisis, Eurobonds Capacities are forthcoming: political conflict Emergency funds CSP integration increases risk of disintegration Difference to national federations

More integration, less federation: The European integration of core state powers

RSCAS 2015/33 Robert Schuman Centre for Advanced Studies EUDO - European Union Democracy Observatory More integration, less federation: The European integration of core state powers Philipp Genschel and