Policy-Making in the European Union

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1 Policy-Making in the European Union 2008 AGI-Information Management Consultants May be used for personal purporses only or by libraries associated to dandelon.com network. Fifth Edition Edited by Helen Wallace, William Wallace and Mark A. Pollack OXPORD UNIVERSITY PRESS

2 Detailed contents Preface List of Figures List of Boxes List of Tables Abbreviations and Acronyms List of Contributors Table of Cases Table of Secondary Legislation Editors' Note xv xviii xix xxi xxiii xxx xxxi xxxiii xl Parti Institutions, Process, and Analytical Approaches i 1 An Overview 3 Introduction 3 The EU and its predecessors 4 Some preliminary observations 5 The EU in context i The EU as a unique arena or perhaps not 9 2 Theorizing EU Policy-Making 13 Introduction 14 Theories of European Integration is Neo-functionalism 15 Intergovernmentalism 17 Liberal intergovernmentalism 17 The 'new institutionalisms' in rational choice 19 Constructivism, and reshaping European identities and preferences 22 Integration theory today 25 EU policy-making in comparative perspective 26 The horizontal separation of powers: the EU as a federal system 28 The vertical separation of powers 30 Toward normal science? 35 The governance approach: the EU as a polity 36 Governing without government 37 Multi-level governance and EU policy networks 39 Globalization, Europeanization, and the question of democratic legitimacy 41 Argument, persuasion, and the 'deliberative turn' 42 Legitimate governance? 45 Conclusions 45

3 Vlii DETAILED CONTENTS 3 An Institutional Anatomy and Five Policy Modes 49 The institutional design of the European Union 50 The European Commission 50 The Council of the European Union 56 The European Council 64 The European Parliament 65 The European Court of Justice 67 The wider institutional setting 74 National institutions 77 One Community method, or several policy modes? 77 A traditional Community method 79 The EU regulatory mode 80 The EU distributional mode 82 Policy coordination 85 Intensive transgovernmentalism 87 Part II Policies 91 4 The Single Market: A New Approach to Policy 93 Introduction 94 Background 95 Harmonization and its increasing frustration 95 The emerging reform agenda 97 The single European market programme 98 The Single European Act 100 Squaring the theoretical circle 100 Subsequent institutional reform 101 The politics of policy-making in the SEM 102 Negative integration 102 Positive integration 103 Opening up the policy space 106 The regulatory policy mode 107 Substance and impact 107 Policy linkages 109 The single market in an enlarged EU 110 Conclusions: a new approach to policy Competition Policy: Challenge and Reform 113 Introduction: competition policy and the European market 114 The salience of competition policy 115 The substance of policy 117 Antitrust: restrictive practices 118 Antitrust: abuse of dominance 119 Merger control 120 State aid 123 The liberalization of utilities 125

4 DETAILED CONTENTS IX Agencies and implementation: DC COMP 126 DGCOMP in context 129 Modernization of European competition policy 131 Competition policy as regulatory policy 134 Policy-making after modernization 135 Conclusion Economic and Monetary Union: Innovation and Challenges for the Euro 141 Introduction 142 Historical development and motivations 143 Laws and institutions 148 The legal basis of EMU 148 The institutions of EMU 149 Policy processes and substance 151 Economic governance in comparative perspective 155 Fiscal governance 155 Exchange-rate policy 157 Conclusion: looking to the future Agricultural Policy: Constrained Reforms 161 Introduction 162 Between negative and positive integration 164 Defensive modernization: the CAP qua welfare state institution 167 Income maintenance and the income security of farmers 168 The CAP as a safe haven 169 The social and political dynamics of the CAP 170 Political control of supranationalism 172 The national dimension of the CAP 174 Permutations of the CAP 175 Unresolved issues: intra-sectoral inequalities and the environment 179 The WTO and the politics of agriculture 180 The primacy of domestic welfare 180 Saving the CAP: the politics of enlargement 182 Making the new members safe for the CAP 186 Conclusions The Budget: Who Gets What, When and How? 191 Introduction 192 A thumbnail sketch of the budget 193 The major players 196 Budgetary politics overtime 197 Phase 1: the dominance of budgetary battles 197 Phase 2: ordered budgetary decision-making 198 A new style of budgetary politics? 202 Negotiating the new financial perspective 203 The Commission's proposal 203

5 X DETAILED CONTENTS Key cleavages and core issues 205 The Constitutional Treaty 207 Managing a larger budget 208 Conclusions Cohesion and the Structural Funds: Competing Pressures for Reform? 213 Introduction 214 The structural funds, The establishment of the European Regional Development Fund 217 The Single European Act and Delors The Treaty on European Union and Delors Agenda 2000 and the Berlin Agreements 222 Pre-accession aid 224 Implementation of the structural funds 225 Concentration 226 Programming 226 Additionality 230 Partnership 230 The structural funds post-enlargement, The impact of enlargement 232 Continuing pre-accession aid, The fourth financial perspective 235 The further reform of cohesion policy, Conclusions Social Policy: Left to the Judges and the Markets? 243 Introduction 244 The limited success of activist social policy 246 European integration and dejure market compatibility requirements 256 Freedom of movement for workers 262 Freedom of services and the European competition regime 264 European integration and de facto pressures on national welfare states 269 Social policy in Europe's emerging multi-tiered system Employment Policy: Between Efficacy and Experimentation 279 Introduction 280 The three pillars of policy 283 Employment policy-making before Amsterdam 285 Pillar one: between the 'Community method' and the EU regulatory model 285 Pillar two: the social dialogue and law via collective agreement 288 Employment policy post-amsterdam 290 Pillar three: the EES and the OMC 290 Origins and institutional development 291 The EES as a 'new mode of governance' 292 Actors and the EES policy process 293 Efficacy versus experimentation 298 Conclusions: assessing European employment policy 300

6 DETAILED CONTENTS Xi 12 Environmental Policy: Contending Dynamics of Policy Change 305 Introduction 306 History 306 Key players 312 The Commission 312 The Council of Ministers 313 The European Parliament 315 The European Court of Justice 317 Environmental interest groups 318 Regulatory policy-making at the crossroads 319 The regulatory policy mode under siege? 319 Is there a distributive agenda? 322 The EU as an international actor 323 Conclusions Biotechnology Policy: Between National Fears and Global Disciplines 329 Introduction 330 Regulating GMOs: three challenges 330 A multi-sectoral challenge 331 A multi-level process: three arenas 332 Risk regulation and legitimacy 333 Historical origins of EU biotech policy 334 The 'Deliberate Release' Directive 90/ The Novel Foods Regulation 338 The problem of implementation: member-state revolt and international reaction 339 Reform of EU policy since January The international context 347 Conclusions Fisheries Policy: Letting the Little Ones Go? 353 Introduction 354 How fisheries policy came onto the EU agenda 355 The impact of enlargements 355 The issue of conservation 357 Extended national territorial waters 357 Between Brussels and national and local territories: opposing interests 358 The territorial dimension 359 The Commission as a promoter of expertise 362 Council negotiations 362 Parliamentary scrutiny 363 Operating through the courts 364 Common management of resources and differences in implementation 364 Setting limits on catches 365 Efforts to make controls effective 366 Limits to the common regime 367

7 XII DETAILED CONTENTS The CFP between redistribution and globalization 369 Financial support for the fishing industry 369 International trade and Community preference 370 Negotiating with third countries 372 Conclusions Trade Policy: From Uruguay to Doha and Beyond 377 Introduction 378 The treaty provisions 379 The evolution of policy: towards a more proactive and outward orientation 380 The policy process 383 Multilateral negotiations 383 Negotiating bilateral agreements 386 Instruments of commercial defence 387 The key players 389 EU trade policy and the Doha Development Agenda 391 Agriculture 391 Non-agricultural market access 393 Services 394 The Singapore issues 394 The main criticisms of EU policy 396 Factors shaping EU trade policy 397 Conclusions Eastern Enlargement: Towards a European EU? 401 Introduction 402 Enlargement as a composite policy 402 The EU's reactions to the political changes in the CEECs 406 Towards a longer term policy framework: the Europe Agreements 409 An accession perspective for the CEECs 412 Sketching the path towards enlargement 414 The pre-accession strategy 414 The White Paper on regulatory alignment 416 Towards an enlargement policy 416 Institutional reform 417 Internal policy reforms 420 Towards accession 421 Wider Europe 424 Conclusions Foreign and Security Policy: The Painful Path from Shadow to Substance 429 The Atlantic context for European foreign and security policy 430 European political cooperation:

8 DETAILED CONTENTS XIII European transformation and political union: Learning by doing: The Amsterdam Review 441 After Amsterdam: Britain and France as leaders 444 FromCFSPtoESDP 448 Unity over Afghanistan, discord over Iraq 451 After Iraq 452 Conclusions Justice and Home Affairs: Towards a'european Public Order'? 457 Introduction 458 How justice and home affairs moved onto the EU agenda 459 Maastricht's 'third pillar* 461 Uneasy communitarization: the Treaties of Amsterdam and Nice 463 Key actors 467 Organization and capacities of EU institutions 467 The proliferation of semi-autonomous agencies and bodies 470 The flow of policy 472 Substantive policy devlopments 472 The agenda for reform 477 Conclusions 479 Part III Conclusions 48i 19 Post-sovereign Governance: The EU as a Partial Polity 483 A stable system, or one under continuous negotiation? 484 The flow of policy 486 Ideas and identities 490 Governance without statehood: post-sovereign politics 491 The EU as a partial polity 494 European government between national policy-making and global negotiation 497 The persistence of the provisional 501 References 505 Index 549

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