Advertisement

The European Parliament in Economic Governance

  • Adrienne HéritierEmail author
  • Katharina L. Meissner
  • Catherine Moury
  • Magnus G. Schoeller
Chapter
Part of the European Administrative Governance book series (EAGOV)

Abstract

In this chapter, we investigate the EP’s institutional role in economic governance during the Eurozone crisis and its aftermath. The Lisbon Treaty restricts the EP’s right to co-legislation in economic governance primarily to the area of multilateral surveillance. The entry into force of the Lisbon Treaty, however, coincided with the onset of the Eurozone crisis. Hence, we examine the extent to which the EP has been able to increase its own power in the reform of the Economic and Monetary Union. Further, we analyse under which conditions the EP succeeded and failed in expanding its powers beyond the provisions of the Lisbon Treaty. We found that—contrary to conventional wisdom—the EP obtained some (in)formal institutional changes to its benefit. It did so by employing a multitude of strategies such as arena-linking or inventing and implementing new rules unilaterally (‘moving first’). However, whenever the EP’s institutional demands affected core state powers, for instance national budgetary control in the case of member state bailouts, its strategies failed.

Keywords

Economic governance Eurozone crisis European Parliament Multilateral surveillance 

References

  1. Alcidi, C., Giovannini, A., & Piedrafita, S. (2014). Enhancing the Legitimacy of EMU Governance, Study for the ECON Committee, European Parliament. Directorate-General for Internal Policies, Policy Department A: Economic and Scientific Policy, Brussels. http://www.europarl.europa.eu/RegData/etudes/STUD/2014/536312/IPOL_STU(2014)536312_EN.pdf. Accessed 19 Sept 2017.
  2. Allemand, F., & Martucci, F. (2014). The Democratic Legitimacy of European Economic Governance: Change in the Role of Parliament. OFCE Debates and Policies, 134, 111–126.Google Scholar
  3. Barker, A. (2013, June 27). EU Reaches Deal on Failed Banks. Financial Times. https://www.ft.com/content/9d667e18-debb-11e2-b990-00144feab7de. Accessed 6 Nov 2017.
  4. Barker, A., Fontanella-Kahn, J., & Spiegel, P. (2013, June 3). Brussels Bank Resolution Blueprint Sets Up Clash with Germany. Financial Times. https://www.ft.com/content/56eb3e32-cc6f-11e2-9cf7-00144feab7de. Accessed 19 Sept 2017.
  5. Bartolini, S. (2006). Should the Union Be ‘Politicised’? Prospects and Risks. Politics: The Right or the Wrong Sort of Medicine for the EU? (Notre Europe Policy Paper, 2006(19)). Paris.Google Scholar
  6. Bouwen, P., & Fischer, J. (2012). Towards a Stronger EU Surveillance of Macroeconomic Imbalances: Rationale and Design of the New Procedure. Reflets et Perspectives de la vie économique, 2012(1), 21–31.CrossRefGoogle Scholar
  7. Bressanelli, E., & Chelotti, N. (2016). The Shadow of the European Council: Understanding Legislation on Economic Governance. Journal of European Integration, 38(5), 511–525.CrossRefGoogle Scholar
  8. Collignon, S., & Diessner, S. (2016). The ECB’s Monetary Dialogue with the European Parliament: Efficiency and Accountability During the Euro Crisis? Journal of Common Market Studies, 54(6), 1296–1312.CrossRefGoogle Scholar
  9. Darnstädt, T. (2011, December 16). The Pitfalls of the Merkozy Fiscal Pact. Spiegel. http://www.spiegel.de/international/europe/more-problems-than-answers-the-pitfalls-of-the-merkozy-fiscal-pact-a-803923.html. Accessed 24 Apr 2017.
  10. De la Parra, S. (2013). The Two Pack on Economic Governance: An Initial Analysis. Brussels: European Trade Union Institute (ETUI).Google Scholar
  11. De Witte, B. (2011). The European Treaty Amendment for the Creation of a Financial Stability Mechanism. European Policy Analysis, Swedish Institute for European Policy Studies SIEPS, 2011(6), Stockholm.Google Scholar
  12. De Witte, B., & Beukers, T. (2013). The Court of Justice Approves the Creation of the European Stability Mechanism Outside the EU Legal Order: Pringle. Common Market Law Review, 50(3), 805–848.Google Scholar
  13. EP. (2011). Parliament Approves Treaty Change to Allow Stability Mechanism. Press Release. http://www.europarl.europa.eu/news/en/news-room/20110322IPR16114/parliament-approves-treaty-change-to-allow-stability-mechanism. Accessed 25 Apr 2017.
  14. EP. (2012a). Conclusions of the European Council Meeting (8–9 December) on a Draft International Agreement on a Fiscal Stability Union, European Parliament Resolution of 18 January 2012, P7_TA(2012)0002. http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//NONSGML+TA+P7-TA-2012-0002+0+DOC+PDF+V0//EN. Accessed 19 Sept 2017.
  15. EP. (2012b, March 24). Report on the Proposal for a Regulation of the European Parliament and of the Council on the Strengthening of Economic and Budgetary Surveillance of Member States Experiencing or Threatened with Serious Difficulties with Respect to Their Financial Stability in the Euro Area. Brussels: Committee on Economic and Monetary Affairs.Google Scholar
  16. EP & Council. (2013a). Regulation (EU) No. 472/2013 of the European Parliament and of the Council of 21 May 2013 on the Strengthening of Economic and Budgetary Surveillance of Member States in the Euro Area Experiencing or Threatened with Serious Difficulties with Respect to Their Financial Stability. http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:32013R0472. Accessed 19 Sept 2017.
  17. EP & Council (2013b). Regulation (EU) No. 473/2013 of the European Parliament and of the Council of 21 May 2013 on Common Provisions for Monitoring and Assessing Draft Budgetary Plans and Ensuring the Correction of Excessive Deficit of the Member States in the Euro Area. http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32013R0473. Accessed 19 Sept 2017.
  18. EP/TNS Opinion. (2015). European Parliament Eurobarometer (EB/EP 84.1): Parlemeter 2015—Part II. http://www.europarl.europa.eu/pdf/eurobarometre/2015/2015parlemeter/eb84_1_synthese_analytique_partie_II_en.pdf. Accessed 24 Apr 2017.
  19. Euractiv. (2011a, December 15). Europe’s New Treaty: Towards a Multi-speed Union. Euractiv. http://www.euractiv.com/section/future-eu/linksdossier/europe-s-new-treaty-towards-a-multi-speed-union/#ea-accordion-positions. Accessed 24 Apr 2017.
  20. Euractiv. (2011b, December 13). PES Leader: ‘Golden Rule’ Should Not Be Imposed. Euractiv. http://www.euractiv.com/section/euro-finance/interview/pes-leader-golden-rule-should-not-be-imposed/. Accessed 24 Apr 2017.
  21. European Commission. (2013, July 10). Commission Proposal for a Regulation Establishing Uniform Rules and a Uniform Procedure for the Resolution of Credit Institutions and Certain Investment Firms in the Framework of a Single Resolution Mechanisms and a Single Bank Resolution Fund and Amending Regulation (EU) No. 1093/2010 of the European Parliament and of the Council, COM(2013) 520 Final. Brussels: European Commission.Google Scholar
  22. European Council. (2011, December 9). Statement by the Euro Area Heads of State or Government. Brussels: European Council.Google Scholar
  23. European Council. (2012a, October 19). Conclusions. Brussels: European Council.Google Scholar
  24. European Council. (2012b, December 14). Conclusions. Brussels: European Council.Google Scholar
  25. European Council. (2012c, January 10). Draft: Treaty on Stability, Coordination and Governance in the Economic and Monetary Union. Brussels: European Council.Google Scholar
  26. European Council. (2012d, January 19). Draft: Treaty on Stability, Coordination and Governance in the Economic and Monetary Union. Brussels: European Council.Google Scholar
  27. Fasone, C. (2014). European Economic Governance and Parliamentary Representation. What Place for the European Parliament? European Law Journal, 20(2), 164–185.CrossRefGoogle Scholar
  28. Fontanella-Khan, J. (2013, March 19): EU Agrees on ECB Regulatory Role. Financial Times. https://www.ft.com/content/076a3880-90a2-11e2-862b-00144feabdc0. Accessed 6 Nov 2017.
  29. Gino, F., & Moore, D. (2008). Using Final Deadlines Strategically in Negotiation. Negotiation and Conflict Management Research, 1(4), 371–388.CrossRefGoogle Scholar
  30. Héritier, A. (2007). Explaining Institutional Change in Europe. Oxford: Oxford University Press.CrossRefGoogle Scholar
  31. Héritier, A., Moury, C., Schoeller, M., Meissner, K. L., & Mota, I. (2015). The European Parliament as a Driving Force of Constitutionalisation. Brussels: European Parliament.Google Scholar
  32. Howarth, D., & Quaglia, L. (2014). The Steep Road to European Banking Union: Constructing the Single Resolution Mechanism. Journal of Common Market Studies, 52(s1), 125–140.CrossRefGoogle Scholar
  33. IA. (2013). Interinstitutional Agreement Between the European Parliament and the European Central Bank on the Practical Modalities of the Exercise of Democratic Accountability and Oversight Over the Exercise of the Tasks Conferred on the ECB Within the Framework of the Single Supervisory Mechanism, 2013/694/EU. https://www.ecb.europa.eu/ecb/legal/pdf/celex_32013q113001_en_txt.pdf. Accessed 9 Nov 2017.
  34. Interview 1. (2015, February 2). European Parliament, Senior Official. Brussels, Belgium.Google Scholar
  35. Interview 2. (2015, February 4). European Parliament, MEP, Brussels, Belgium.Google Scholar
  36. Interview 3. (2015, February 6). European Parliament, Senior Official. Brussels, Belgium.Google Scholar
  37. Interview 4. (2015, February 9). General Secretariat of the Council. Brussels, Belgium.Google Scholar
  38. Interview 5. (2015, February 10). European Parliament, Senior Official. Brussels, Belgium.Google Scholar
  39. Interview 6. (2015, February 11). EU Officials. Brussels, Belgium.Google Scholar
  40. Interview 7. (2015, February 11). General Secretariat of the Council, Senior Official. Brussels, Belgium.Google Scholar
  41. Interview 8. (2015, February 12). European Parliament, Senior Official. Brussels, Belgium.Google Scholar
  42. Interview 9. (2010): European Commission. Brussels, Belgium.Google Scholar
  43. Interview 10. (2011). European Commission. Brussels, Belgium.Google Scholar
  44. Karagiannis, Y., & Héritier, A. (2013). Interstitial Institutional Change in Europe: Implications of the Financial and Fiscal Crisis. In B. de Witte, A. Trechsel, & A. Héritier (Eds.), The Euro Crisis and the State of European Democracy (pp. 83–100). Florence: European University Institute.Google Scholar
  45. Kreilinger, V. (2012). The Making of a New Treaty: Six Rounds of Political Bargaining (Policy Brief Notre Europe, 32).Google Scholar
  46. Laffan, B., & Schlosser, P. (2016). Public Finances in Europe: Fortifying EU Economic Governance in the Shadow of the Crisis. Journal of European Integration, 38(3), 237–249.CrossRefGoogle Scholar
  47. Lax, D. A., & Sebenius, J. (1986). The Manager as Negotiator: Bargaining for Cooperation and Competitive Gains. New York: Free Press.Google Scholar
  48. Maurer, A. (2013). From EMU to DEMU: The Democratic Legitimacy of the EU and the European Parliament (IAI Working Papers, 2013(11)). Rome.Google Scholar
  49. O’Keeffe, M., Salines, M., & Wieczorek, M. (2016). The European Parliament’s Strategy in EU Economic and Financial Reform. Journal of European Public Policy, 23(2), 217–235.CrossRefGoogle Scholar
  50. Poptcheva, E. (2013). Parliament’s Role in Anti-crisis Decision-Making. Library Briefing, Brussels.Google Scholar
  51. Rehn, O. (2011, June 22). Going the Last Centimeter for Reinforced Economic Governance. Joint Debate on Economic Governance in the European Parliament, Brussels. http://europa.eu/rapid/press-release_SPEECH-11-468_en.htm?locale=en. Accessed 17 Apr 2019.
  52. Rehn, O. (2012, June 12). Input to Parliamentary Debate, Strasbourg. http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+CRE+20120612+ITEM-005+DOC+XML+V0//EN&language=GA. Accessed 10 Apr 2016.
  53. Rittberger, B. (2014). Integration Without Representation? The European Parliament and the Reform of Economic Governance in the EU. Journal of Common Market Studies, 52(6), 1174–1183.CrossRefGoogle Scholar
  54. Scharpf, F. W. (2016). De-constitutionalization and Majority Rule: A Democratic Vision for Europe (MPIfG Discussion Paper, 2016(14)). Cologne.Google Scholar
  55. Schimmelfennig, F. (2015). Liberal Intergovernmentalism and the Euro Area Crisis. Journal of European Public Policy, 22(2), 177–195.CrossRefGoogle Scholar
  56. Schlosser, P. (2016). Resisting a European Fiscal Union: The Centralized Fragmentation of Fiscal Powers During the Euro Crisis. Florence: European University Institute.Google Scholar
  57. Schoeller, M. G. (2017). Providing Political Leadership? Three Case Studies on Germany’s Ambiguous Role in the Eurozone Crisis. Journal of European Public Policy, 24(1), 1–20.CrossRefGoogle Scholar
  58. Tsebelis, G., & Hahm, H. (2014). Suspending Vetoes: How the Euro Countries Achieved Unanimity in the Fiscal Compact. Journal of European Public Policy, 21(10), 1388–1411.CrossRefGoogle Scholar
  59. Weidmann, J. (2013, September 30). Stop Encouraging Banks to Buy Government Debt. Financial Times. https://www.ft.com/content/81a505a4-278c-11e3-8feb-00144feab7de. Accessed 31 Nov 2017.

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Adrienne Héritier
    • 1
    Email author
  • Katharina L. Meissner
    • 2
  • Catherine Moury
    • 3
  • Magnus G. Schoeller
    • 4
  1. 1.Department of Political and Social Sciences and Robert Schuman Centre for Advanced StudiesEuropean University InstituteSan Domenico di Fiesole, FlorenceItaly
  2. 2.Centre for European Integration Research, IPWUniversity of ViennaViennaAustria
  3. 3.Universidade Nova de LisboaLisbonPortugal
  4. 4.Centre for European Integration Research, IPWUniversity of ViennaViennaAustria

Personalised recommendations