Dominance Through Segmentation
This chapter deals with vertical differentiation and how the Eurozone has developed into a segment. Before the 2008 financial crisis, differentiated arrangements were not considered a defining trait of the system, since exemptions and opt-outs could be seen as temporary. However, this changed after the Eurozone crisis. The chapter starts by analysing some specific traits of the institutional development of the Eurozone regime. The high level of vertical differentiation involves an incongruence between the Single Market and the single currency as well as between debtors and creditors in the Eurozone. The chapter lays out some dominance effects of segmentation, namely decisional exclusion and pre-emption of choice. Lastly, it presents the analytical advantages of this approach and discusses why segmentation in itself is unstable and self-defeating.
KeywordsSegmentation Eurozone crisis Dominance Loose couplings Fiscal compact
- Avbelj, Matej. 2013. Differentiated Integration—Farewell to the EU-27? German Law Journal 14 (1): 191–212.Google Scholar
- Collignon, Stefan. 2003. The European Republic. London: The Federal Trust, Bertelsmann Foundation.Google Scholar
- Craig, Paul. 2014. Economic Governance and the Euro Crisis: Constitutional Architecture and Constitutional Implications. In The Constitutionalization of European Budgetary Constraints, ed. Maurice Adams, Federico Fabbrini, and Pierre Larouche, 19–40. Oxford: Hart Publishing.Google Scholar
- Dawson, M. 2015. The Legal and Political Accountability Structure of ‘Post-Crisis’ EU Economic Governance. Journal of Common Market Studies 53 (5): 976–993.Google Scholar
- Dehousse, Renaud. 2015. The New Supranationalism. Paper Prepared for Presentation at the ECPR General Conference Panel P298. Reflections on the Euro—Crisis and the Future of Representative Democracy, Montreal, 26–29 August 2015.Google Scholar
- European Commission. 2017. The European Semester: Why and How. https://ec.europa.eu/info/strategy/european-semester/framework/european-semester-why-and-how_en. Accessed on 8 May 2017.
- European Council. 2012. Treaty on the Stability, Coordination and Governance in the Economic and Monetary Union [TSCG or The Fiscal Compact]. https://www.consilium.europa.eu/media/20399/st00tscg26_en12.pdf. Accessed on 28 November 2018.
- European Council. 2017. Eurogroup. http://www.consilium.europa.eu/en/council-eu/eurogroup/. Accessed on 8 May 2017.
- European External Action Service (EEAS). 2018. Permanent Structured Cooperation—PESCO: Deepening Defence Cooperation Among EU Member States. EEAS Factsheet, November. https://cdn5-eeas.fpfis.tech.ec.europa.eu/cdn/farfuture/wM5QZfoVgVbC4zSzD-u–4o8E9TqYoThT3aNfAC6TQA/mtime:1542983709/sites/eeas/files/pesco_factsheet_november_2018_en_0.pdf. Accessed on 28 November 2018.
- European Parliament. 2011. European Parliament Resolution of 1 December 2011 on the European Semester for Economic Policy Coordination 2011/2071(INI). http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-2011-0542&language=EN. Accessed on 10 May 2017.
- European Parliament. 2013. European Parliament Resolution of 12 December 2013 on Constitutional Problems of a Multitier Governance in the European Union. http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&reference=A7-2013-0372&language=EN. Accessed on 16 February 2016.
- European Parliament. 2014. Review of the ‘Six-Pack’ and ‘Two-Pack’. European Parliamentary Research Service, 5 December. http://www.europarl.europa.eu/EPRS/EPRS-AaG-542182-Review-six-pack-two-pack-FINAL.pdf. Accessed on 9 May 2017.
- European Parliament and Council of the European Union. 2014. Regulation (EU) No. 806/2014 of the European Parliament and of the Council of 15 July 2014 Establishing Uniform Rules and a Uniform Procedure for the Resolution of Credit Institutions and Certain Investment Firms in the Framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No. 1093/2010, L225/1. http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014R0806&from=en. Accessed on 8 May 2017.
- European Union. 2007. Treaty of Lisbon Amending the Treaty on European Union and the Treaty Establishing the European Community, Signed at Lisbon, 13 December 2007, 2007/C 306. http://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A12007L%2FTXT. Accessed on 10 February 2017.
- European Union. 2012. The Consolidated Versions of the Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU), 2012/C 326. http://eur-lex.europa.eu/legal-content/en/TXT/?uri=CELEX%3A12012M%2FTXT. Accessed on 10 February 2017.
- Fischer-Lescano, Andreas. 2014. Human Rights in Times of Austerity Policy: The EU Institutions and the Conclusion of Memoranda of Understanding. Schriftenreihe des Zentrums für Europäische Rechtspolitik (ZERP), 68. Bremen: ZERP.Google Scholar
- Joerges, Christian, and Maria Weimer. 2013. A Crisis of Executive Managerialism in the EU: No Alternative? In Critical Legal Perspectives on Global Governance: Liber amicorum David M. Trubek, ed. Grainne de Búrca, Claire Kilpatrick, and Joanne Scott. Oxford: Hart Publishing.Google Scholar
- Kant, Immanuel. 1996 . Toward Perpetual Peace. In Practical Philosophy, ed. Mary Gregor. Cambridge: Cambridge University Press.Google Scholar
- Keppenne, Jean-Paul. 2014. Institutional Report. In The Economic and Monetary Union: Constitutional and Institutional Aspects of the Economic Governance Within the EU, ed. Ulla Neegaard, Catherine Jacqueson, and Jens Hartig Danielsen, 179–257. Copenhagen: DJOF Publishing.Google Scholar
- Menéndez, Agustín J. 2013. The Existential Crisis of the European Union. German Law Journal 14 (5): 453–525.Google Scholar
- Menéndez, Agustín J. 2015. From the Social and Democratic Rechtsstaat to the Authoritarian and Consolidating State of Governance. The Triple Crisis of Law in Europe. Paper Presented at ARENA Tuesday Seminar, Oslo, 3 November.Google Scholar
- Munchau, Wolfgang. 2017. Look to Greece’s Example for How to Negotiate Brexit. Financial Times, 25 June. https://www.ft.com/content/9763be78-5832-11e7-9fed-c19e2700005f. Accessed on 13 July 2017.
- Scharpf, Fritz W. 2014. No Exit from the Euro-Rescuing Trap? MPlfG Discussion Paper 14/4. Cologne: Max-Planck-Insitut für Gesellschaftsforschung.Google Scholar
- Schelke, Waltraud. 2014. Fiscal Integration by Default. In Beyond the Regulatory Polity? The European Integration of Core State Powers, ed. Philipp Genschel and Markus Jachtenfuchs. Oxford: Oxford University Press.Google Scholar
- Thompson, James D. 1967. Organizations in Action: Social Science Bases of Administration Theory. New Brunswick, NJ: Transaction Publishers.Google Scholar
- Tooze, Adam. 2018. Crashed: How a Decade of Financial Crises Changed the World. London: Allen Lane.Google Scholar
- Tuori, Kaarlo. 2012. The European Financial Crisis—Constitutional Aspects and Implications. EUI Law Working Papers, 28.Google Scholar
- Tuori, Kaarlo, and Klaus Tuori. 2014. The Eurozone Crisis: A Constitutional Analysis. Cambridge: Cambridge University Press.Google Scholar