European Union Policymaking in the Field of Air Traffic Management

Total Page:16

File Type:pdf, Size:1020Kb

European Union Policymaking in the Field of Air Traffic Management Zurich Open Repository and Archive University of Zurich Main Library Strickhofstrasse 39 CH-8057 Zurich www.zora.uzh.ch Year: 2012 European Union policymaking in the field of air traffic management :the endeavor to implement functional airspace blocks in light of fragmented national interests : a case study on the Functional Airspace Block Europe Central (FABEC) Ladenbauer, Siegfried Abstract: The provision of air navigation services (ANS) is a sovereign prerogative of individual na- tion states. As a result, today’s European air traffic management (ATM) system is highly fragmented, impeding smooth and efficient traffic flows and causing delays and additional costs for airspace users. As earlier attempts to integrate ATM in Europe did not overcome the problem of fragmentation, the European Commission launched the Single European Sky (SES) initiative in 1999. One key element of SES is so-called functional airspace blocks (FABs), which encompass the airspace of several states. However, due to their strong impact on national sovereignty, the successful implementation of FABs is difficult. This study attempts to identify the supporting and constraining elements affecting FABdevel- opment by analyzing one of the most significant FAB projects, the Functional Airspace Block Europe Central (FABEC). It reverts to two theories of political integration offering conflicting viewpoints on the factors that are supposed to be decisive for the progress of integration. The study concludes that, with regard to the implementation of FABs, the EU is considerably limited by the sovereign interests of states. Although supranational pressure is steadily growing as the European Commission makes extensive and intelligent use of its regulatory capacity, the legal basis is missing to allow it to take supranational decisions in respect of national airspace and infrastructure. Governments, in turn, are keen on main- taining national supremacy in military issues and do not support far-reaching steps of integration in ANS provision at this time. Moreover, national service providers find themselves in an environment dominated by competition rather than cooperation, as they may be faced with structural and financial losses. In order to achieve the goals of SES, the European Commission thus should consider measures to incentivize cooperative behavior between ANS organizations. Flugsicherung ist eine hoheitliche Auf- gabe. Die daraus resultierende Fragmentierung des europäischen Flugsicherungssystems behindert einen effizienten Verkehrsfluss und hat für die Luftraumnutzer Verspätungen und Mehrkosten zur Folge. Weil frühere Integrationsversuche erfolglos blieben, lancierte die Europäische Kommission im Jahr 1999 die Initiative zur Schaffung eines Single European Sky (SES). Wesentliches Element des SES sind sogenan- nte funktionale Luftraumblöcke (functional airspace blocks, FABs), die den Luftraum mehrerer Staaten umfassen. Die damit verbundene Beschneidung staatlicher Souveränität erschwert jedoch die erfolgreiche Umsetzung solcher FABs. Die vorliegende Studie identifiziert begünstigende und hemmende Faktoren für die Entstehung von FABs anhand eines der bedeutendsten FAB-Projekte, dem Functional Airspace Block Europe Central (FABEC). Sie greift dabei auf zwei politische Integrationstheorien zurück, welche konträre Auffassungen über die treibenden Kräfte in Integrationsprozessen vertreten. Die Studie kommt zum Schluss, dass die souveränen Interessen der Staaten die Handlungsfähigkeit der EU in Bezug auf die Errichtung funktionaler Luftraumblöcke stark einschränken. Obwohl die Europäische Kommission durch geschickte Wahrnehmung bestehender regulatorischer Kompetenzen stetig an Einfluss gewinnt, verfügt sie über keine rechtliche Grundlage um über nationale Lufträume und Infrastrukturen zu entscheiden. Die staatlichen Regierungen sind ihrerseits darauf bedacht, die nationale Hoheit in militärischen An- gelegenheiten zu bewahren und unterstützen gegenwärtig keine weitreichenden Integrationsschritte im Bereich der Flugsicherung. Darüber hinaus finden sich die nationalen Flugsicherungsorganisationen eher in einem auf Wettbewerb statt auf Zusammenarbeit ausgerichteten Umfeld wieder, da Integration mit strukturellen und finanziellen Verlusten einhergehen könnte. Zur Erreichung der Zielsetzungen desSES sollte die Europäische Kommission deshalb Massnahmen in Betracht ziehen, welche die Flugsicherungsan- bieter zu kooperativem Verhalten bewegen. Posted at the Zurich Open Repository and Archive, University of Zurich ZORA URL: https://doi.org/10.5167/uzh-164116 Dissertation Published Version Originally published at: Ladenbauer, Siegfried. European Union policymaking in the field of air traffic management : the endeavor to implement functional airspace blocks in light of fragmented national interests : a case study on the Functional Airspace Block Europe Central (FABEC). 2012, University of Zurich, Faculty of Arts. 2 European Union Policymaking in the Field of Air Traffic Management The endeavor to implement functional airspace blocks in light of fragmented national interests A case study on the Functional Airspace Block Europe Central (FABEC) Thesis presented to the Faculty of Arts of the University of Zurich for the Degree of Doctor of Philosophy by Siegfried Ladenbauer of Nürensdorf ZH Accepted in the spring semester 2012 on the recommendation of Prof. Dr. Dieter Ruloff and Prof. Dr. Dirk Lehmkuhl Zurich, 2012 For my parents and family in Austria and Sweden. I EXECUTIVE SUMMARY Background The provision of air navigation services (ANS) is a sovereign prerogative of individual na- tion states. As a result, today’s European air traffic management (ATM) system is highly fragmented, impeding smooth and efficient traffic flows and causing delays and additional costs for airspace users. As earlier attempts to integrate ATM in Europe did not overcome the problem of fragmentation, the European Commission launched the Single European Sky (SES) initiative in 1999. One key element of SES is the introduction of so-called func- tional airspace blocks (FABs), which are to be designed no longer to reflect national boundaries, but according to operational requirements, and encompassing the airspace of several states. As FABs have a strong impact on national sovereignty, the present study aims to answer the question of whether the European Union will be successful in promot- ing their implementation. The specific case analyzed for this purpose is the Functional Airspace Block Europe Central (FABEC). As it covers the area with the highest air traffic density in Europe, FABEC plays a paramount role for the Single European Sky. A first significant institutional step was taken when a treaty between FABEC member states was signed at the end of 2010. However, although bi- and multilateral collaboration between air navigation service providers in the FABEC area has intensified, major challenges pre- vail in terms of functional airspace redesign and in the attempt to find specific institutional arrangements that go beyond simple forms of cooperation. Theoretical and methodological approach To identify the supporting and constraining elements affecting FAB development, the study reverts to two theories of political integration offering conflicting viewpoints on the factors that are supposed to be decisive for the progress of integration. The liberal inter- governmentalist account proposes a ‘bottom-up’ perspective, in which domestic societal actors determine the need for enhanced cooperation in a specific policy area. This need is II Executive Summary subsequently accommodated by national governments and taken to an international nego- tiation setting, where the level of integration is ‘bargained’ between states. Supranational organizations only play a minor role in this context and merely serve as facilitators of ne- gotiation processes. Rationalist supranationalism identifies growing regulatory structures and ‘path dependencies’ at the supranational level, which nation states find increasingly difficult to escape from. Hence, integration is rather governed by supranational organiza- tions, leaving little room for unilateralist leanings of individual states. Based on the first theory, the study has compared the relative influencing power of various domestic stake- holders assumed to be relevant in the area of ATM in terms of their impact on governmen- tal preferences related to cooperation and integration: national defense authorities, air navigation service providers, major air carriers, and staff associations representing air traf- fic controllers. It has then attempted to determine differentiations in bargaining power be- tween FABEC states. Based on the second account, EU regulatory activity in the field of ATM was examined in relation to the evolution of competences assigned to the institu- tions of the European Union. Conclusions and possible way forward It can be concluded from the analysis that, with regard to the implementation of functional airspace blocks, the EU is considerably limited by the sovereign interests of states. The Union lacks the necessary legal basis to take supranational decisions with respect to na- tional airspace and infrastructure. However, supranational pressure is steadily growing and becomes harder for nation states to avoid. It was demonstrated that the European Commis- sion searches for ways to make extensive use of its regulatory capacity even in the absence of additional competences. The two subsequent timeframes under analysis, referred to as SES I and SES
Recommended publications
  • The Historical Development of European Integration
    FACT SHEETS ON THE EUROPEAN UNION The historical development of European integration PE 618.969 1. The First Treaties.....................................................................................................3 2. Developments up to the Single European Act.........................................................6 3. The Maastricht and Amsterdam Treaties...............................................................10 4. The Treaty of Nice and the Convention on the Future of Europe..........................14 5. The Treaty of Lisbon..............................................................................................18 EN - 18/06/2018 ABOUT THE PUBLICATION This leaflet contains a compilation of Fact Sheets provided by Parliament’s Policy Departments and Economic Governance Support Unit on the relevant policy area. The Fact Sheets are updated regularly and published on the website of the European Parliament: http://www.europarl.europa.eu/factsheets ABOUT THE PUBLISHER Author of the publication: European Parliament Department responsible: Unit for Coordination of Editorial and Communication Activities E-mail: [email protected] Manuscript completed in June, 2018 © European Union, 2018 DISCLAIMER The opinions expressed in this document are the sole responsibility of the author and do not necessarily represent the official position of the European Parliament. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the publisher is given prior notice
    [Show full text]
  • State Transformation and the European Integration Project Lessons from the Financial Crisis and the Greek Paradigm Evangelos Venizelos No
    State Transformation and the European Integration Project Lessons from the financial crisis and the Greek paradigm Evangelos Venizelos No. 130/February 2016 Abstract The financial crisis that erupted in the eurozone not only affected the EU’s financial governance mechanisms, but also the very nature of state sovereignty and balances in the relations of member states; thus, the actual inequalities between the member states hidden behind their institutional equality have deteriorated. This transformation is recorded in the case law of the Court of Justice of the European Union and the member states’ constitutional courts, particularly in those at the heart of the crisis, with Greece as the most prominent example. It is the issue of public debt (sovereign debt) of the EU member states that particularly reflects the influence of the crisis on state sovereignty as well as the intensely transnational (intergovernmental) character of European integration, which under these circumstances takes the form of a continuous, tough negotiation. The historical connection between public debt (sovereign debt) and state sovereignty has re-emerged because of the financial crisis. This development has affected not only the European institutions, but also, at the member state level, the actual institutional content of the rule of law (especially judicial review) and the welfare state in its essence, as the great social and political acquis of 20th century Europe. From this perspective, the way that the Greek courts have dealt with the gradual waves of fiscal austerity measures and structural reforms from 2010 to 2015 is characteristic. The effect of the financial crisis on the sovereignty of the member states and on the pace of European integration also has an impact on European foreign and security policy, and the correlations between the political forces at both the national and European level, thus producing even more intense pressures on European social democracy.
    [Show full text]
  • The European Monetary System and European Integration: Marriage Or Divorce?
    THE EUROPEAN MONETARY SYSTEM AND EUROPEAN INTEGRATION: MARRIAGE OR DIVORCE? by Patrick M. Crowley Saint Mary's University Halifax and McGill University Montreal Canada April 1995 Acknowledqements: I am grateful to my supervisors Robin Rowley, John McCallum and Vicky Zinde- Walsh at McGill University, Montreal for their help and guidance. This paper is culled from my Ph.D. thesis, and is therefore preliminary. All comments are welcome. Paper prepared for the May , 1995, European Community Studies Association Meetings in Charleston, South Carolina, USA. Abstract This paper presents the various economic approaches to achieving monetary union, particularly in the context of European Economic and Monetary Union (EMU). It also evaluates the implications of the Maastricht Treaty, in the light of the current state of economic convergence and given the economic convergence criteria embodied in the Treaty, in terms of economic policy for individual Member States and for the European Union (EU) as a whole. Comparisons are made with other more mature federations, and a case for greater fiscal federalism post-1999 is presented. The paper concludes by assessing the options for the EU at its scheduled inter-governmental conference in 1996, for amending or replacing the Treaty. Contents I. Background and Introduction II. The Road to EMU a) Generic Approaches b) The Transition Process c) Currency Stabilisation and the Role of the EMS III. Fiscal Federalism a) The Subsidiarity Principle b) Regional Disparities c) Budgetary Fairness and Convergence under Maastricht IV. The Maastricht Convergence Criteria a) The Criteria b) Regional Disparities c) Dynamic "let-outs" d) Credibility Issues V. The Maastricht Treaty and Evaluation of Feasible Alternatives a) A Critical Assessment of Maastricht b) Amending the Treaty c) Replacing the Treaty d) EMU - Economic Jingoism or Pyrrhic Victory? VI.
    [Show full text]
  • What Is European Integration Really About? a Political Guide for Economists
    NBER WORKING PAPER SERIES WHAT IS EUROPEAN INTEGRATION REALLY ABOUT? A POLITICAL GUIDE FOR ECONOMISTS Enrico Spolaore Working Paper 19122 http://www.nber.org/papers/w19122 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 June 2013 I am grateful to Jeff Frieden, Yannis Ioannides, Deborah Menegotto, Stelios Michalopoulos, Romain Wacziarg, and the editors of the Journal of Economic Perspectives (David Autor, Chang-Tai Hseih, and Tim Taylor) for their detailed comments. I also benefited from helpful feedback and conversations with many people, including Lorenzo Bini-Smaghi, Giancarlo Corsetti, Henrik Enderlein, Kai Konrad, Athanasios Orphanides, Lucas Papademos, and Daniela Schwarzer, and participants in the political economy discussion group at Harvard and a conference at the Condorcet Center for Political Economy in Rennes. Of course I am the only one responsible for all opinions and errors in this paper. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer- reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2013 by Enrico Spolaore. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. What is European Integration Really About? A Political Guide for Economists Enrico Spolaore NBER Working Paper No. 19122 June 2013 JEL No. F15,F50,F55,H40,H77,N44 ABSTRACT Europe’s monetary union is part of a broader process of integration that started in the aftermath of World War II.
    [Show full text]
  • EUROCONTROL History Book December 2010
    EUROCONTROL History Book December 2010 By John McInally Head of Organisational Development 1991 - 2010 EUROCONTROL Table of content Introduction 5 Executive summary 9 History of EUROCONTROL - Timeline 1910-2008 17 Part 1 1958-1966 25 Genesis of EUROCONTROL, original vision, sovereignty defined Part 2 1966-1986 75 EUROCONTROL continues with revised/reduced mandate Part 3 1986-1997 119 Amended Convention proves insufficient, matse takes key decisions, EUROCONTROL acts to revise Convention Part 4 1997-2008 191 Early Implementation, EUROCONTROL Adapts to Single European Sky, Growing Concentration on the Network Annex 1 Presidents and Vice-Presidents of the Permanent Commission 293 Annex 2 Presidents and Vice-Presidents of the Committee of management 295 Annex 3 Directors General of the Agency 298 Annex 4 Presidents and Vice-Presidents of the Provisional Council 299 Annex 5 Chairmen of the Civil-military Coordination Committee and military ATm Board 300 Annex 6 Ratification of the revised Convention 301 3 Introduction Introduction This History is a description of the key institutional, legal and organisational events and decisions that have determined the progress of the EUROCONTROL Organisation and its Agency through the past fifty years. It is a record, in one document, of the circumstances surrounding these events and the nature of the performance of EUROCONTROL against what was required of it. Who makes up the audience for this history? It is principally aimed at those past and present Eurocontrollers, including State representatives, as well as those who have been involved with EUROCONTROL at different times through the consultation groups and working arrangements. The reader should note therefore that this is a “History”.
    [Show full text]
  • The European Neighbourhood Policy: an Instrument for Security Community Building
    The European Neighbour- hood Policy: An instrument for security community building Pernille Rieker NUPI Working Paper 832 Publisher: Norwegian Institute of International Affairs Copyright: © Norwegian Institute of International Affairs 2014 Any views expressed in this publication are those of the author. They should not be interpreted as reflecting the views of the Norwegian Institute of International Affairs. The text may not be printed in part or in full without the permission of the author. Visiting address: C.J. Hambros plass 2d Address: P.O. Box 8159 Dep. NO-0033 Oslo, Norway Internet: www.nupi.no E-mail: [email protected] Fax: [+ 47] 22 99 40 50 Tel: [+ 47] 22 99 40 00 The European Neighbourhood Policy: An instrument for security community building Pernille Rieker Abstract The aim of this paper is to present a framework for investigating whether and how the EU manages to promote security and stability beyond its borders through its neighbourhood policy. There is general agreement that the European Union has been engaged in promoting democracy, human rights, and the rule of law in its Eastern and Southern neighbourhoods since the 1990s. Further, that this policy has been particularly successful for countries with membership prospects, and that the enlargement process has been viewed as an important security policy tool. Now that the enlargement process seems to be approaching a saturation point, it makes sense to investigate the role of the EU beyond candidate and potential candidate countries, asking whether the EU may have a security policy role to play in its neighbourhood. The overall ambition of this paper is to provide a better understanding of the functioning of the European Neighbourhood Policy (ENP) – a specific regional policy that might replace the enlargement process as the EU’s major instrument of security policy.
    [Show full text]
  • Global, Social and Political Europe
    GLOBAL, SOCIAL AND POLITICAL EUROPE by Loukas Tsoukalis July 2007 Copyright © 2007 HELLENIC FOUNDATION FOR EUROPEAN AND FOREIGN POLICY (ELIAMEP) All rights reserved ISBN 978-960-8356-23-8 GLOBAL, SOCIAL AND POLITICAL EUROPE by Loukas Tsoukalis OP07.04 ELIAMEP offers a forum for debate on international and European issues. Its non-partisan character supports the right to free and well- documented discourse. ELIAMEP publications aim to contribute to scholarly knowledge and to provide policy relevant analyses. As such, they solely represent the views of the author(s) and not necessarily those of the Foundation. EUROPEAN INTEGRATION AFTER THE TURN OF THE CENTURY European integration after the turn of the century So much has already happened in Europe in this new century, providing enough material for both optimists and pessimists to develop their preferred scenarios. It all started with the introduction of the new single currency, surely the most important act of integration since the very beginning. It has worked remarkably smoothly and has also served as a laboratory for economists to test their theories. True, the economic performance of many eurozone countries left much to be desired during most of the period, while those that had willingly stayed out saw few reasons to change their minds. But these are still early years and there is much learning by doing for new European institutions and also for national players who gradually need to adjust to a very different economic and political environment. The governance of the eurozone is a big and still open question. Regional integration has continued to expand in new areas following a trend established some decades back.
    [Show full text]
  • One Size Does Not Fit All: European Integration by Differentiation
    POLICYBRIEF ISSUE 3 | SEPTEMBER 2018 ONE SIZE DOES NOT FIT ALL: EUROPEAN INTEGRATION BY DIFFERENTIATION Maria Demertzis A BARE-BONES PLUS CLUBS EUROPE Deputy Director, Bruegel Common court system Jean Pisani-Ferry Mercator Senior Fellow at Club 1 Club 2 Club 3 Club 4 Bruegel Economic Migration, Security Other and Monetary Asylum and and foreign policies André Sapir Union Schengen policy Senior Fellow, Bruegel Common base (treaty, Council, Commission, Parliament) Thomas Wieser Non-resident Fellow, Source: Bruegel Bruegel THE ISSUE Guntram Wolff Reforming the governance of the European Union has become urgent for three reasons: Director, Bruegel to better deal with politically-sensitive topics, to manage greater external challenges and because future EU enlargement will increase the diversity of the bloc’s member- ship. The answer to disagreement typically has been qualified majority voting, but on sensitive topics, the EU has increasingly moved to unanimity and heavy European Council involvement, which has often not delivered results. The alternative answer has been a Europe of multiple speeds of integration with one shared goal for all, increasing political tensions. A different approach is now needed to move Europe forward. POLICY CHALLENGE Two options would be a Europe of concentric circles and a Europe of ‘clubs’, but the former would cement tensions between the inner and the outer circles, while the latter would lead to unclear structures and an end to cohesion. However, a governance model could combine the two approaches. The model would be based on a strong ‘bare-bones EU’ formed by the single market, trade and accompanying policies, the European institutions, treaties, rule of law and a commitment to fundamental EU values.
    [Show full text]
  • On the Meaning and Future of the European Monetary System
    ESSAYS IN INTERNATIONAL FINANCE No. 138, September 1980 ON THE MEANING AND FUTURE OF THE EUROPEAN MONETARY SYSTEM TOM DE VRIES INTERNATIONAL FINANCE 'SECTION DEPARTMENT OF ECONOMICS PRINCETON UNIVERSITY Princeton, New Jersey This is the one hundred and thirty-eighth number in the series ESSAYS IN INTERNATIONAL FINANcE, published from time to time by the International Finance Section of the Department of Economics of Princeton University. The author, Tom de Vries, is an Alternate Member of the Executive Board of the International Monetary Fund and teaches international monetary relations at the School of Ad- vanced International Studies, Johns Hopkins University. After service at the Netherlands' Central Bank, he was from 1964 through 1968 Director for Monetary Affairs of the European Economic Community and a member of its Mone- tary Committee. He has published widely on monetary questions. In this Essay, his second contribution to the series, he expresses his personal views only. The Section sponsors the Essays in this series but takes no further responsibility for the opinions expressed in them. The writers are free to develop their topics as they wish. PETER B. KENEN, Director International Finance Section ESSAYS IN INTERNATIONAL FINANCE No. 138, September 1980 ON THE MEANING AND FUTURE OF THE EUROPEAN MONETARY SYSTEM TOM DE VRIES INTERNATIONAL FINANCE SECTION DEPARTMENT OF ECONOMICS PRINCETON UNIVERSITY Princeton, New Jersey INTERNATIONAL FINANCE SECTION EDITORIAL STAFF Peter B. Kenen, Director Ellen Seiler, Editor Susan Ciotti, Editorial Aide Kaeti Isaila, Subscriptions and Orders Library of Congress Cataloging in Publication Data Vries, Tom de. On the meaning and future of the European monetary system.
    [Show full text]
  • Eastern Partnership After Riga: Rethink, Reforms, Resilience ECFR Riga Series Jana Kobzova
    Eastern Partnership after Riga: rethink, reforms, resilience ECFR Riga Series Jana Kobzova • The mixed enthusiasm with which More than a decade of investment of political, economic, its target countries greeted the and financial resources in the Eastern Partnership (EaP) EU’s Eastern Partnership offer region has brought some significant benefits both to the has prompted a mirror response from the EU: for much of the past European Union and to its eastern neighbours. These six years, Europe’s resources and include visa-free travel (or the real prospect of it) for political attention have shifted eastern neighbours, as well as easier trade. But the crisis and zigzagged in the region, in Ukraine, the EU’s increasingly frosty relations with depending on which country was Russia, and Europe’s questionable ability to defend what it at the time seen as being the most perceives as its core interests in the eastern neighbourhood pro-reform or pro-European. While are prompting a rethink of EU policy towards the region. this approach has still managed to bring some tangible benefits, The EaP has not delivered on the primary ambition of the it has also ensured that the EU’s EU’s neighbourhood policy: to help create a “democratic, overall picture of the region secure, and prosperous” neighbourhood. If anything, remained hazy. Its fragmented the region is now more unstable and more susceptible to focus has undermined its ability to further destabilisation than it was ten years ago. The goal act pro-actively and strategically, was always meant to be a decades-long marathon rather and the broader context, including than a quick win.
    [Show full text]
  • Divergence Tendencies in the European Integration Process: a Danger for the Sustainability of the E(M)U?
    Journal of Risk and Financial Management Article Divergence Tendencies in the European Integration Process: A Danger for the Sustainability of the E(M)U? Linda Glawe and Helmut Wagner * Faculty of Economics, University of Hagen, 58084 Hagen, Germany; [email protected] * Correspondence: [email protected] Abstract: The European integration process started with the aim of reducing the differences in income and/or living standards between the participating countries over time. To achieve this, a certain alignment of institutions and structures was seen as a necessary precondition. While the goal of this income and institutional convergence was successfully achieved over a long period of time, this convergence development has weakened or even turned into divergence in the last one to two decades. This paper provides an overview of the empirical evidence for these convergence and divergence developments and develops policy implications (the challenges and possible ways out). Keywords: European integration process; convergence dynamics; divergence; institutional quality; economic growth and economic development; European Union JEL Classification: F55; O10; O11; O43; O52 Citation: Glawe, Linda, and Helmut Wagner. 2021. Divergence Tendencies 1. Introduction in the European Integration Process: It is conventional wisdom that the larger and more complex a project is, the greater the A Danger for the Sustainability of the risk that it will fail. This also applies to the project of European integration. This project was E(M)U? Journal of Risk and Financial initially small and therefore manageable and also successful. Over time, however, more and Management 14: 104. https:// more extensions were made (in terms of scope, and in terms of areas of application/depth), doi.org/10.3390/jrfm14030104 so that it has become increasingly difficult and complex to keep the situation/project stable/sustainable.
    [Show full text]
  • Political and Economic Integration in the EU: the Case of Failed Tax Harmonization*
    bs_bs_banner JCMS 2013 pp. 1–16 DOI: 10.1111/jcms.12099 Political and Economic Integration in the EU: The Case of Failed Tax Harmonization* FABIO WASSERFALLEN University of Zurich Abstract The European Union (EU) tax mandate remains narrow. That there was only a limited transfer of tax authority to the EU exemplifies the failure of political and fiscal integration. Using a political economy framework, this article analyzes why the heads of state rejected tax harmonization proposals in the intergovernmental conferences. The presented findings of the original data on the Maastricht, Nice and Lisbon negotiations support the main hypothesis derived from the theoretical framework – namely that resistance against tax harmonization came predominantly from low-tax countries. Moreover, the results indicate that after the accession of the central and eastern European countries the prospects of harmonizing tax policy starkly decreased. The analysis shows that tax heterogeneity and the enlargements have negative effects on tax integration. Based on the empirical findings and the theoretical framework, the article concludes by discussing how the creation of the monetary union restructured the politics of tax Europeanization and fiscal integration. Introduction After the euro crisis started at the end of 2009, the following basic question of integration came again to the fore: should more political integration complement the deep economic integration that has culminated in the creation of the European monetary union? Com- pared to the creation of the single market and the European monetary union, which mark historically unprecedented levels of economic integration among nation-states, the achievements of political integration remain modest. Politically salient policy areas, such as taxation and welfare redistribution, are still largely nationalized and many consider the political modes of decision-making on the European level to be ineffective.
    [Show full text]