Compound Polity Research Articles

A Very European Way Out: Polity Maintenance and the Design of Article 50

Abstract Multilevel polities do not typically facilitate secession, so why did the European Union adopt Article 50? Revisiting formative debates from the 2003 Convention on the Future of Europe, we combine archival research with an original dataset of delegate debates over two levels: the existence and procedural operation of an exit article. This reveals essential new detail on the genealogy of Article 50. We locate this institutional innovation within a Rokkanian–Hirschmanian theoretical framework which treats exit closure as necessary for loyalty and resilience. Further refining this ‘polity’ perspective, we find many participants showed awareness of the potentially disruptive implications of an exit article. Yet, given extant tensions around ‘ever closer union’, a Eurocentric procedural design prevailed as a safety valve, granting EU authorities default control over any exit process. This European logic of ‘controlled opening' offers a potential blueprint for other integrating compound polities and international organizations facing backlashes from member states.

Money Makes the World Go Round: How Much Difference Do Recovery and Resilience Plans Make to EU Reform Governance?

AbstractThe Next Generation EU (NGEU) package transformed European economic governance. This article examines the implications of this change in terms of EU polity formation and in terms of social policy content. It asks whether the temporary availability of large funds increases the leverage of the Commission in the European Semester and how this innovation affects sensitive policies. In the tradition of Stein Rokkan, the article advances a conception of the EU as a compound polity that needs to reconcile dispersed authority with second‐order loyalty. We then contrast our theoretical expectations with traditional reform surveillance and experimentalist governance theories. The drafting of Recovery and Resilience Plans for Italy and Spain provides the empirical basis for assessing these expectations. The analysis shows a dual effect: adding fiscal capacity to the European Semester enhances the Commission's hierarchical power whilst the need to ensure member states' loyalty leaves room for national executives to insist on their priorities.

Revisiting Early Fiscal Centralisation in the European Coal and Steel Community in Light of the EU’s Transfer Budget

The last few years have resulted in substantial changes for the EU’s fiscal powers, primarily through the introduction of the Next Generation EU funds. This article argues that the assessment of these developments as federalisation processes is based upon a central misunderstanding of the EU budget as a public goods budget in a federal state. The EU is a compound polity comprising of mature states, and its budget may be termed a “transfer budget,” which allows member states to predict budgetary costs and benefits. To understand the transfer-oriented nature of the budget, this article adopts a historical institutionalist lens. Revisiting the fiscal centralisation in the European Coal and Steel Community allows us to understand how the six delegations agreed to combine economic and social aims in this budget, which was intended to serve the European Coal and Steel Community with similar elements to a public goods budget. Revenue consisted of debts and a levy on coal and steel produce, whereas expenditure ranged from investments to payments to individual workers. The Treaty of Rome, with its anti-supranational basis, triggered a critical juncture in Europe’s budgetary history: Since 1957, a transfer budget evolved. Revisiting the European Coal and Steel Community budget system allows us to understand the fiscal federal appearance of the Next Generation EU funds: While the EU makes new attempts to use its budget for the provision of common goods, its functions are limited by the institutional structure of the transfer budget.

Maintaining the EU’s compound polity during the long crisis decade

ABSTRACT The EU is still fragile after its long decade of crises since 2008, and its durability remains an open question. New capacities were created during this time. But it is not clear how robust they are and whether developing them further will encounter insurmountable obstacles, including resentment by citizens. Over time, tensions and disagreements unleashed three foundational conflicts: conflicts over sovereignty (who decides), solidarity (who gets what when and why) and identity (who we are). The crisis politics that was deployed to deal with such tensions has often constrained policy responses in scope and effectiveness. Against the odds, however, the destructive spiral stopped short of driving the Union into self-destruction: a circumstance that calls for an explanation. We summarize empirical research that shows three ways in which this unexpected resilience can be explained: public rhetorical action, externalization strategies, and the paradoxical strengths of a weak centre in achieving polity maintenance.

Towards an Antifederalist Theory of the EU: Democratic Federal Lessons for the European Union

AbstractSeveral recent crises and the increasing populism and Euroscepticism across member states have intensified debates on the nature of the EU. While researchers have looked to US federal experience and theory, a bias remains towards the federalism of the Federalists and ‘Madisonian' lessons for the EU. In contrast, we argue that the federalism of the Antifederalists provides an alternative, more appropriate frame for assessing the EU's federal challenges. First, we revisited their political thought on democratic federalism and their opposition to the US Constitution. We derived three basic lines of federal‐democratic critique of the power of elites, and losses to state sovereignty and to democracy and popular control. Subsequently, we transferred them to the EU to analyse the corresponding challenges. Finally, we drew Antifederalist lessons for the EU. They may inform not only research on multilevel governments but also the search for a balance between governance, integration and popular rule in a compound polity.

Dilemmas of political legitimacy in the European Union: a contractarian analysis

ABSTRACTThe European Union (EU) is a compound polity, which requires its member states to make credible commitments about their complying with the terms of their inter-state contract. Using contemporary social contract theory, the paper analyses what conditions of inter-state credibility are necessary in order for such a contract to be successful. However, since member states make their commitments as representatives of their peoples, those same commitments must also be acceptable at the domestic level, but the domestic political accountability of collective agents calls into question the extent to which inter-state commitments can be credible. Since the domestic legitimacy is tied up with the overall advantages of the international contract, and no government can irrevocably bind its successors, the level of inter-state commitment required by any agreement may be impossible to achieve. The central problem of political legitimacy for the EU arises therefore from the conflict between inter-state commitment and the principle that political authority derives from the people, which can at best only justify a delegated, instead of a transferred, authority to supra-state institutions. This is especially true in the case of the monetary union, in which some national key powers are subjected to irrevocable and time unlimited inter-state commitments and limitations. Conversely, the conditions for direct normative legitimacy from the peoples of Europe to the EU do not exist. Alongside the monetary construction flaws of the EMU, this is the core of its structural political flaws, for which no way out has yet been found.

American lessons: legitimacy, federalism and the construction of a European compound polity

ABSTRACTThis paper aims to reaffirm the viability of the federalist option for a united Europe, comparing nowadays Europe with the building of the USA. It shows how the scenario that the American people experienced when their federation was framed is similar to present-day Europe: social and cultural differences between the states, dissent among the political elite, an ineffective constitutional framework and doubts about the federal model. Those differences were settled by means of institutional mechanisms that established a project of reasonable consensus. Contrary to the ventilated fear of a European super-state, federalism does not imply that members of the federation merge into a homogenizing political structure. Instead, it allows different political entities to be bound into a common whole. Such a union must have a gravity centre to hold them together, but implies also a wide set of complementary powers. The federation is a system of joint political action, that should combine a brief constitution stating common values and purposes, and a method for ratification similar to the one adopted in the USA (special ratifying state conventions). A truly federal system would allow Europe to integrate its social and cultural diversity in a system of political procedures with popular legitimation.

Internal Crisis of Compound Polities: Understanding the EU’s Crisis in Light of the Ex-Yugoslav Federation’s Failure

The paper draws on a particular conceptual framework for the interpretation of the current European Union (EU) crisis. Famously, the EU has been classified as an organization existing in between or beyond the modern state and international organizations. The constitutionally undefined political aim of the EU contributes mostly to its vague classification. Nevertheless, the escalation of the Eurozone crisis has revealed the inherent relation between the politically unfinished design of the EU and the inability of its actors to confront the major social and economic challenges of today. This paper argues that this systemic failure of the EU replicates another historical example, the Yugoslav federation. Beyond substantial differences between the two, there is an important similarity. They both have, embedded in their very nature, the character of an unfinished political construction. Furthermore, both the EU and Yugoslavia followed the same path from an emancipative process of federalism to an existential crisis, both moving from legitimate to very questionable polity.

Discursive institutionalism and policy stasis in simple and compound polities: the cases of Estonian fiscal policy and United States climate change policy

Discursive institutionalism is the ‘newest’ of the new institutionalisms. The majority of work employing discursive institutionalism as a framework has so far focused on how it contributes to understanding policy change. Until now, however, little attention has been paid to how discursive institutionalism can help to explain the equally significant phenomenon of policy stasis. This imbalance is addressed here through a discursive institutionalist analysis of two cases of policy stasis: Estonian fiscal policy and United States climate change policy. It is argued that policy stasis – far from being a passive and inactive state – actually involves a large amount of discursive activity by multiple actors. This activity creates, legitimates and perpetuates policy discourses, which ultimately entrench governmental commitments to policy stasis. The article proceeds in three parts. First, a theoretical model is advanced which builds on existing discursive institutionalist literature to modify the theory towards explaining policy stasis. This model is then applied to the two case studies and it is shown how, and to what extent, ‘discourse’ operates as a causal factor. Finally, it is shown how different institutional contexts affect the causal processes whereby the policy discourse becomes streamlined or complexified depending on the ‘simple’ or ‘compound’ characteristics of the polity. It is concluded that discursive institutionalism is a useful theory for understanding policy stasis in its various forms in both simple and compound polities, and that the role of ‘discourse’ in explaining such situations is deserving of greater scholarly attention.

Europeanization and multi-level governance in south-east Europe: the domestic impact of EU cohesion policy and pre-accession aid

This article considers the extent to which European Union (EU) cohesion policy and related pre-accession instruments are contributing to the development of more compound polities in south-east Europe and, specifically, promoting multi-level governance. In this respect, the article has two points of departure: the first is the argument by Schmidt (2006) that the EU is a highly compound polity that tends to pull member states in this direction; the second is the considerable literature that links EU cohesion to the promotion of multi-level governance. In addressing the core question, we draw on the new institutionalist strand of the Europeanization literature to offer insights into the domestic responses to EU incentives and pressures.

COMPLEX LEGITIMACY IN COMPOUND POLITIES: THE EU AS EXAMPLE

Compound polities such as the EU combine multilevel governance (MLG) and multilevel polities (MLPs). They are said to suffer from serious democracy deficits. I argue that legitimacy is more complex and propose to clearly distinguish and acknowledge serious trade‐offs between constitutional (liberal), democratic and output legitimacy. It is urgent to inquire whether it is possible and, if so, how to make compound polities both more constitutional and more democratic (more transparent, open and inclusive, easier to control, more representative and politically legitimate), without sacrificing effectiveness and efficiency as a result.

DEMOCRACY IN THEORY AND PRACTICE

1. Democracy in Theory and Practice Stephen Elstub, University of the West of Scotland 2. Complex Legitimacy in Compound Polities: The EU as Example Veit Bader, University of Amsterdam 3. Democratic Theory and Practice in Deeply Divided Societies Ian O'Flynn, Newcastle University 4. A Tension Between Ideal and Practice: Re-evaluation of Micro and Macro Models of Deliberation Zsuzsanna Chappell, London School of Economics 5. Linking Micro Deliberative Democracy and Decision-Making: Trade-Offs Between Theory and Practice in a Partisan Citizen Forum Stephen Elstub, University of the West of Scotland 6. Citizen Participation in East Manchester: From Practice to Theory Georgina Blakely and Brendan Evans, Open University 7. Making Democracy Spectacular Nick Mahony, Open University

Europeanization and F.Y.R. Macedonia: towards a compound polity?

This contribution considers whether European Union (EU) pre‐accession aid is contributing to the development of a more compound polity in F.Y.R. Macedonia and, specifically, the extent to which there is a process of Europeanization characterized by emergent features of multi‐level governance. After examining the state of play concerning governance and politics, the different EU pre‐accession instruments are discussed with a focus on the Instrument for Pre‐Accession Assistance. The main argument advanced is that F.Y.R. Macedonia is a simple polity that is quickly evolving into a compound polity and that the EU accession process and the requirements of pre‐accession aid are important factors in this evolution process. However, alongside EU‐induced changes are other initiatives and processes that are often promoting change in the same direction that make it increasingly difficult to isolate the independent effect of EU pressures.

Building multi‐level governance in Southeast Europe?

Drawing on the contributions to this volume, this concluding analysis reflects on the extent to which European Union (EU) cohesion policy and related pre‐accession instruments are contributing to the development of more compound polities in Southeast Europe and, specifically, promoting multi‐level governance. It argues that these EU policies have created more compound polities but that system‐wide multi‐level governance remains weak in the case study states and central governments remain prominent. However, there are interesting and potentially important developments in relation to particular features of multi‐level governance, not least in states whose engagement with the EU in this sphere is relatively new. As such, a large part of this story appears yet to unfold.

Europeanization and new patterns of multi‐level governance in Romania

This study considers whether EU cohesion policy and related pre‐accession instruments have contributed to the development of a more compound polity in Romania and, specifically, considers the extent to which there is a process of Europeanization characterized by emergent features of multi‐level governance. In particular, it brings forward a number of explanatory factors which account for the process of regions' creation in a centralized unitary post‐communist state such as Romania. It shows that the regional reforms and regionalization have occurred in a very functional way and mostly as a means of accessing and managing regional‐level structural funds. It concludes by illustrating the emergence of new patterns of multi‐level governance in the context of socialization and engagement with the EU's cohesion policy.

Europeanization and multi‐level governance in Slovenia

This study considers whether EU cohesion policy has contributed to the development of a more compound polity in Slovenia and, specifically, considers the extent to which there is a process of Europeanization characterized by emergent features of multi‐level governance. After providing a brief background on the nature of domestic governance and politics, it reviews the development of cohesion policy instruments in Slovenia and, then, discusses the scope and the nature of changes that have taken place in the last decade. The main finding is that despite the pre‐existing corporatist tradition suggesting a greater openness to cross‐sectoral engagement than in most new member states, this tradition has little impact on the domestic approach to governing the structural funds. Only a weak system of multi‐level governance has been developed, meeting the letter rather than the spirit of EU requirements, with central government ministries dominating both planning and implementation processes.

Europeanization and nascent multi‐level governance in Croatia

This contribution considers whether the EU's pre‐accession instruments of cohesion policy are contributing to the development of a more compound polity in Croatia and, specifically, considers the extent to which there is a process of Europeanization characterized by emergent features of multi‐level governance. It argues that while some features of multi‐level governance are emerging in Croatia, the emphasis of EU programmes is at this stage on national implementation and central government has to date proved adept at shaping and steering the partnerships and networks induced at national level. Sub‐nationally, there is greater activity independent of central government, and some evidence of a deeper learning taking place, with EU‐inspired activities and practices being transferred to other spheres.

Europeanization and multi‐level governance: EU cohesion policy and pre‐accession aid in Southeast Europe

This opening contribution provides the framework for discussion for the case studies that follow. It outlines the key concepts employed – simple and compound polities, Europeanization and multi‐level governance – and explains the origins and development of EU cohesion policy and related pre‐accession instruments. It concludes by summarizing the main themes and issues addressed in the subsequent contributions.

The domestic effects of EU cohesion policy in Greece: islands of Europeanization in a sea of traditional practices

This contribution considers whether European Union (EU) cohesion policy has contributed to the development of a more compound polity in Greece and, specifically, considers the extent to which there is a process of Europeanization characterized by emergent features of multi‐level governance. After providing a brief background on the nature of domestic governance and politics, it reviews the development of cohesion policy instruments in Greece and, then, discusses the scope and the nature of changes that have taken place in the last decade. The main finding is that, while the effects of EU cohesion policy on Type I multi‐level governance remain limited, its impact on Type II multi‐level governance is more pronounced. However, change is neither omnipresent nor linear. The overall picture is one of an emerging archipelago of ‘islands of Europeanization’ within a sea of traditional institutions and practices.

Europeanization and multi‐level governance in Turkey

This study considers whether European Union (EU) pre‐accession instruments relating to cohesion policy are contributing to the development of a more compound polity in Turkey and, specifically, assesses the extent to which Europeanization promotes features of multi‐level governance. Empirical findings suggest that the implementation system for EU pre‐accession aid is centralized with signs of a limited shift towards multi‐level governance. Empirical findings also reveal that the implementation structures designed for national policy in response to EU requirements represent a greater degree of shift towards multi‐level governance. The argument developed is that the latter is potentially transformative in character as far as regional development policy‐making is concerned, though the Turkish polity is to date only slightly more compound as a consequence.