THE EUROPEAN UNION IN THE 21ST CENTURY PERSPECTIVES FROM THE LISBON TREATY EDITED BY STEFANO MICOSSI AND GIAN LUIGI TOSATO INTRODUCTION BY SABINO CASSESE CENTRE FOR EUROPEAN POLICY STUDIES BRUSSELS The Centre for European Policy Studies (CEPS) is an independent policy research institute based in Brussels. Its mission is to produce sound analytical research leading to constructive solutions to the challenges facing Europe today. CEPS Paperbacks present analysis and views by leading experts on important questions in the arena of European public policy, written in a style aimed at an informed but generalist readership. The views expressed in this report are those of the authors writing in a personal capacity and do not necessarily reflect those of CEPS or any other institution with which they are associated. Cover: Claude Monet, Impression, soleil levant, 1872 Musée Marmottan, Paris ISBN 978-92-9079-929-0 © Copyright 2009, Centre for European Policy Studies. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior permission of the Centre for European Policy Studies. Centre for European Policy Studies Place du Congrès 1, B-1000 Brussels Tel: 32 (0) 2 229.39.11 Fax: 32 (0) 2 219.41.51 e-mail: [email protected] internet: http://www.ceps.eu CONTENTS Preface............................................................................................................................ i 1. Introduction: Im Zweifel für Europa Sabino Cassese.......................................................................................................1 1. The European Union: Reasons for success ..................................................1 2. The crisis and its paradoxes...........................................................................2 3. A realistic agenda............................................................................................4 Part I. Economics and Consensus 2. Partisan Protectionism: Political Consensus, the Euro and Europe’s Response to the Global Crisis Carlo Bastasin .......................................................................................................7 1. A crisis in consensus.......................................................................................8 2. A crisis in politics..........................................................................................13 3. The euro as trigger – two examples: Germany and Italy ........................16 4. Protection versus protectionism .................................................................19 5. Welfare ...........................................................................................................23 6. Beyond partisan protectionism ...................................................................28 References .............................................................................................................30 3. A More Social EU: Issues of where and how Maurizio Ferrera & Stefano Sacchi...................................................................31 1. The need for a more social European Union.............................................31 2. How to build a more social EU ...................................................................34 3. Supplementing the internal market with social rights ............................36 4. Less rhetoric, more forward-looking initiatives .......................................43 References .............................................................................................................46 4. Economic Policy Coordination and Failures in Europe to counter Recession Fiorella Kostoris..................................................................................................48 Introduction..........................................................................................................48 1. When is coordination appropriate?............................................................49 2. Economic policy coordination under pressure.........................................52 3. A case study of the Stability and Growth Pace ........................................ 54 4. Effects of the financial crisis........................................................................ 61 5. Conclusions ................................................................................................... 62 References............................................................................................................. 65 Annex.................................................................................................................... 67 5. Market Integration and Competition Policy: The Challenges Ahead Ginevra Bruzzone & Luigi Prosperetti ............................................................ 72 1. Introduction................................................................................................... 72 2. Becoming closer to citizens ......................................................................... 76 3. Stable principles and integration of structural policies........................... 80 4. The proper degree of harmonisation......................................................... 81 4.1 Supranational regulation .................................................................. 81 4.2 Common rules for products ............................................................. 84 4.3 Commercial relations between business and consumers............. 86 4.4 Common rules for services ............................................................... 86 4.5 ...including network industries ........................................................ 87 5. Coordinated implementation..................................................................... 90 6. Conclusions ................................................................................................... 95 References............................................................................................................. 96 6. Energy and European Institutions Valeria Termini.................................................................................................... 98 1. Background ................................................................................................... 98 2. European Institutions: A necessary but insufficient precondition. From Euratom to the Lisbon Treaties........................................................ 99 3. European strategy and domestic policies: Goals, conflicts and proposals.............................................................................................. 105 4. Europe’s relationship with the rest of the world: Energy security and climate change..................................................................................... 111 5. Conclusions ................................................................................................. 116 References........................................................................................................... 118 Part II. The International Projection 7. Europe on the International Scene: A Union of necessity after a Union of choice? Cesare Merlini....................................................................................................120 1. The international context...........................................................................123 2. The Union’s Internal Context ....................................................................128 3. Suggested guidelines for a non-marginal common foreign policy......133 4. The instruments for the EU to achieve a high-profile foreign policy ..137 References ...........................................................................................................140 8. The Enlargement of the European Union Rocco A. Cangelosi & Ferdinando Salleo ......................................................142 1. European enlargement and vision............................................................142 2. Recent admissions and new candidates ..................................................144 3. The Western Balkans ..................................................................................147 4. Turkey...........................................................................................................149 5. The borders of Europe................................................................................152 6. Europe’s identity.........................................................................................154 7. Enlargement in 2009 ...................................................................................157 8. After the Lisbon Treaty ..............................................................................159 References ...........................................................................................................161 9. European defence or defence of Europe? Alessandro Pansa ..............................................................................................162 1. The institutions: A past of great hopes, a future with no illusions......162 2. The industry: Oligopoly, foreign policy and internationalisation .......168 3. Europe: Cooperation, inefficiency and nationalism...............................172 4. Governments, institutions and investors: A changing role ..................175 5. Industrial structures, control systems and the equity market ..............177 References