EUROPE REVIEW | BY DR. DILEK YIGIT* HAS THE ACQUIRED MORE POWER DUE TO THE EURO AREA ?

By Dr. Dilek Yigit

he European Commission has be defined; Is the Commission a sui- always been the object of generis body of sui generis debates and analyses as to organisation? or can the Commission be what extent the European compared with a government in the TUnion (EU) political structure is member states as the EU is becoming democratic, since the structure of the more like a state? It can be argued that Commission and its relations with the the EU is becoming more like a state due have been to the continuous regarded by many scholars as the main process; nonetheless there is not a clear- reasons why the EU suffers from a cut answer on which scholars agree to “democratic deficit”. the question of how exactly the Commission can be defined or whether it After the global financial crisis broke should be a government in the out, measures taken to cope with the conventional meaning of the term. For implications of the euro area debt crisis example, S. Hix points out that the and to prevent another potential crisis Commission may be defined as sui have renewed the debates on generis through stating that “the democracy at EU level, in particular on Commission is neither a government nor a the European Commission’s role in the bureaucracy, and is appointed through new European economic governance. what appears to be an obscure procedure Why has the European Commission rather than elected directly by the votes or been a part of debates on a “democratic indirectly after a parliamentary election.”1 deficit” in the EU? The answer to this While F. Laursen underlines the question is complex and many-faceted. similarities between the Commission and Because the first aspect of this question is a national government by expressing “to related to how the a certain extent, the Commission can be and its executive body Commission can compared with a government in the

Political Reflection Magazine | Issue 11 | 61 REVIEW | BY DR. DILEK YIGIT

member states. It takes political initiatives, brought about further politicisation of it proposes legislation, it has a the Commission by defining the role of bureaucracy at its disposal, it gets the European Parliament in the involved in policy implementation.”2 nomination of the Commission President The second aspect of this question is explicitly. Article 17 of the Treaty of related to the democratisation of the Lisbon stipulates that European Union. In this context, the question of how the president and “Taking into account the elections to members of the Commission should be the European Parliament and after appointed/elected for a more democratic having held the appropriate Union has led to political and theoretical consultations, the , debates so far, and many scholars acting by a qualified majority, shall argue that the democratisation of the propose to the European Parliament European Union through the gradual a candidate for the President of the increase of power of the European Commission. This candidate shall be Parliament over the European elected by the European Parliament Commission has caused politicisation by a majority of its component of the Commission. The members...”

European Commission HQ

62 | Issue 11 | Political Reflection Magazine EUROPE REVIEW | BY DR. DILEK YIGIT

It can be argued that the Treaty of Lisbon identify the main economic issues which provides the Commission with greater the EU faces and give policy advices at democratic legitimacy. Nonetheless, the Spring Council. The salient aspect of after the Treaty of Lisbon, the is that the Commission is still an executive body European Council and the Council of that remains unfamiliar to both Ministers provide policy advice before parliamentarism and presidentialism, the member states’ draft budget for the which may arise more concerns following year are finalised. Although the especially in the light of Article 10 of the Commission’s role under the European Treaty stipulating that the functioning of Semester has received criticism on the the Union shall be founded on grounds that the Commission can give representative democracy. direction to national fiscal policies, the European Council, Council of the Furthermore, measures taken for European Union and the European strengthening fiscal discipline and Parliament are also given active roles introducing stricter fiscal and under the European Semester in order to macroeconomic surveillance in the EU provide legitimacy for this new due to the euro area debt crisis received mechanism.4 serious criticism on the grounds that these measures give greater role to the European Commission in the The salient aspect of the European Semester is that the surveillance of national economic and European Council and the Council of Ministers provide financial policies, that is the Commission policy advice before the member states’ draft budget acquires more powers although its for the following year are finalised. democratic legitimacy and democratic accountability have been questioned.

The aim of this article is to try to address The Six Pack which entered into force on more centrally the question of whether 13 December 2011 aims to reinforce the the Commission is becoming more preventive and the corrective arm of the powerful due to the measures taken after Stability and Growth Pact. The most the euro area debt crisis and if so, why it salient aspect of the Six Pack for the receives criticism from a democratic Commission is an introduction of reverse perspective. Let’s analyse each measure qualified majority voting, which means in and what they mean to the Commission the Commission’s words “ a in brief. recommendation or a proposal of the Commission is considered adopted in the The European Semester which was Council unless a qualified majority of approved by the member states on member States votes against it.”5 Similar September 2010 for stronger economic to the Six Pack, the Treaty on Stability, governance and coordination at EU level Coordination and Governance (TSCG) means ex ante coordination of member which was signed by twenty-five states budgetary and economic policies, member states on 2 March 2012 in order and it starts each year when the to strengthen fiscal discipline and Commission publishes the Annual introduce stricter surveillance within the Growth Survey. On the basis of the euro area also introduces the reverse Annual Growth Survey, member states qualified majority voting. Article 7 of the

Political Reflection Magazine | Issue 11 | 63 EUROPE REVIEW | BY DR. DILEK YIGIT

Treat stipulates that concerned, is opposed to the “While fully respecting the decision proposed or procedural requirements of the recommended.”6 Treaties on which the European Union is founded, the Contracting With regard to the TSCG, the Parties whose is the euro Commission underlines that commit to supporting the proposals or recommendations submitted by “..at each stage of the Excessive the European Commission where it Deficit Procedure (EDP), euro-area considers that a Member State of the Member States will support the European Union whose currency is Commission’s proposals or the euro is in breach of the deficit recommendations in the Council if criterion in the framework of an a euro-area Member State is in excessive deficit procedure. This breach of the deficit criterion, obligation shall not apply where it is unless a qualified majority of them established among the Contracting against it. In practice this means Parties whose currency is the euro that if a euro-area member State that a qualified majority of them, breaches the deficit criterion a kind calculated by analogy with the of reverse qualified majority voting relevant provisions of the Treaties on applies to all stages of the EDP, which the European Union is even if not foreseen in the Six founded, without taking into account Pack.”7 the position of the Contracting Party

64 | Issue 11 | Political Reflection Magazine EUROPE REVIEW | BY DR. DILEK YIGIT

The reverse qualified majority voting euro area debt crisis have raised envisaged in the Six Pack and the TSCG objections coming from a democratic raises questions in terms of democracy at perspective. That is why, the measures the EU level, because it means that only which are taken from an economic qualified majority in the Council should viewpoint and would lead to a more be able to stop sanctions, so it creates an powerful European Commission in the automatic sanction mechanism triggered European new economic governance by the Commission. The automatic should be paid more attention from the sanction mechanism may be criticised for perspective of democracy to prevent putting the member states in the hands of criticisms that new economic measures the Commission which is not accountable may undermine European democracy. to the European electorate directly, and for the lack of involvement of neither the Notes: European Parliament nor the European * Dr. Dilek Yiğit, Chief of Division, The Council. Undersecretariat of Treasury, Turkey. The opinions expressed in this article are The Two Pack on which discussions are those of the author and do not represent ongoing between the Commission, the the views of the Undersecretariat of Council and the Parliament envisages a Treasury. common budgetary timeline in which euro area Member States shall submit 1. S. Hix, What’s Wrong With The their draft budgetary plan for the European Union& How To Fix It, following year to the Commission and the (Cambridge:Polity Press, 2008), before 15 October and p.71 requires the Commission to analyse the 2. F.Laursen, “The Role of the draft budgetary plans based on the Commission”, in the European Stability and Growth Pact and the Union: How Democratic is It, edited recommendations from the European by S. S. Andersen, K. A. Eliassen, Semester. If the Commission assesses (London: Sage Publications, 1998), that the draft budgetary plans are not in p. 120. conformity with the Stability and Growth 3. Press Release, European Semester: Pact, the Commission may ask for a A new architecture for the new EU revised draft budgetary plan.8 The Two Economic Governance, 12 January Pack has not been adopted yet. When it 2011. enters into force it will likely be criticised 4. See the chart in The European for causing national budgetary policy Semester: Who does what and decisions to be taken out of the hands of when?, http://ec.europa.eu national parliaments and delivered to the 5. European Commission, Six-pack? European Commission, consequently for Two-pack? Fiscal Compact? A Short undermining democracy at both national guide to the new EU fiscal and supranational level. governance, 14.03.2012 6. Treaty on Stability, Coordination In sum, the measures taken for and Governance, http://european- strengthening fiscal discipline and council.europa.eu introducing stricter fiscal and 7. European Commission, Six-pack? macroeconomic surveillance in the EU in Two-pack?... order to prevent a crisis similar to the 8. Ibid.

Political Reflection Magazine | Issue 11 | 65