ROBERT SCHUMAN CENTRE FOR ADVANCED STUDIES The Euro Crisis and the State of European Democracy Contributions from the 2012 EUDO DISSEMINATION CONFERENCE Edited by Bruno de Witte, Adrienne Héritier & Alexander H. Trechsel This e.Book has been published by the European University Institute, Robert Schuman Centre for Advanced Studies, European Union Democracy Observatory - EUDO This eBook includes revised papers which were initially presented at the conference “2012 EUDO Dissemination Conference: The Euro Crisis and the State of European Democracy”, co-funded by the Lifelong Learning Programme, EACEA decision no. 2012-2718/001-001 © European University Institute 2013 Editorial matter and selection © Bruno de Witte, Adrienne Héritier and Alexander H. Trechsel Chapters © authors individually The European Union Democracy Observatory (EUDO, www.eudo.eu ) is an independent and interdisciplinary organisation fully-integrated within the Robert Schuman Centre for Advanced Studies (RSCAS) at the European University Institute. Its declared goals are: to translate scientific and academic research on the key issues of European democracy into policy relevant and publicly-understandable outputs, to produce a permanent and periodic evaluation of democratic practices within the EU and to develop practical suggestions for improving democratic performance in the EU. EUDO wants to serve as a forum where research results, experiences, ideas, and good practices can be exchanged between scholars and policy-makers. The mission of EUDO is above all to gather documentation and data, to provide basic and applied research reports for EU institutions, and to foster dialogue between policy-makers, academics and EU citizens. Via dei Roccettini, 9 I-50014 San Domenico di Fiesole (FI) – Italy E-mail: [email protected] Website: www.eudo.eu Co-funded by the Lifelong Learning Programme of the European Union The European Commission supports the EUI through the European Union budget. This publi- cation reflects the views only of the author(s), and the Commission cannot be held responsible for any use which may be made of the information contained therein. CONTENTS Foreword 9. The Euro Crisis, Institutional Change and Political Constraints Bruno de Witte ......................................................................................................... 4 Francisco Torres .................................................................................................... 193 SECTION I: THE IMPACT OF THE EURO CRISIS ON THE EU’S 10. La prise d’autorité de la Banque centrale européenne et les dangers démocra- INSTITUTIONAL BALANCE tiques de la nouvelle gouvernance économique dans l’Union européenne 1. The Eurozone Crisis and the Legitimacy of Differentiated Integration Cécile Barbier ........................................................................................................ 212 Thomas Beukers ........................................................................................................ 7 SECTION IV: THE EURO CRISIS AT THE NATIONAL LEVEL 2. Legal Issues of the ‘Fiscal Compact’. Searching for a Mature Democratic Gov- 11. The Euro Crisis and New Dimensions of Contestation in National Politics ernance of the Euro Alexia Katsanidou ................................................................................................ 242 Roberto Baratta ...................................................................................................... 31 12. Can Fiscal Councils Enhance the Role of National Parliaments in the European 3. Contradiction, Circumvention and Conceptual Gymnastics: the Impact of the Union? A Comparative Analysis Adoption of the ESM Treaty on the State of European Democracy Cristina Fasone & Elena Griglio .......................................................................... 264 Jonathan Tomkin .................................................................................................... 64 13. Governing Portugal in Hard Times: Incumbents, Opposition and International SECTION II: AT THE MARGINS OF THE UNION: INSTITUTIONAL Lenders EXPERIMENTS IN THE EURO CRISIS Elisabetta De Giorgi, Catherine Moury & João Pedro Ruivo ............................ 306 4. Interstitial Institutional Change in Europe: Implications of the Financial and 14. National Fiscal Responses to the Economic Crisis: Domestic Politics and Inter- Fiscal Crisis national Organizations Yannis Karagiannis & Adrienne Héritier.............................................................. 83 Klaus Armingeon .................................................................................................. 329 5. The Outcomes of Intergovernmentalism: the Euro Crisis and the Transforma- 15. The Discursive Double Game of EMU Reform: the Clash of Titans between tion of the European Union French White Knight and German Iron Lady Sergio Fabbrini...................................................................................................... 101 Amandine Crespy &Vivien Schmidt .................................................................... 350 6. Reverse Majority Voting in Comparative Perspective: Implications for Fiscal SECTION V: EUROPEAN CITIZENSHIP IN TIMES OF CRISIS Governance in the EU 16. EU Citizenship and Intra EU Mobility: a Virtuous Circle Even in Times of Crisis Wim Van Aken & Lionel Artige ........................................................................... 129 Anna Triandafyllidou & Michaela Maroufof ..................................................... 370 7. Unions within the Union: Contested Authority over Regulatory Responses to the Financial Crisis in Europe 17. Crisis and Trust in the National and European Governmental Institutions Karolina Zurek ...................................................................................................... 162 Felix Roth, Felicitas Nowak-Lehmann D. & Thomas Otter ............................... 392 SECTION III: THE EURO CRISIS AND THE EUROPEAN CENTRAL BANK 18. Crumbling or Coping? European Citizenship in (the) Crisis Ulrike Liebert ....................................................................................................... 408 8. The Crisis of the Euro and the New Role of the European Central Bank Giulio Peroni ......................................................................................................... 183 FOREWORD Bruno de Witte Professor of European Union Law at EUDO – the European Union Democracy Observatory - is an interdisci- Maastricht University (The plinary academic organization based at the Robert Schuman Centre of the Netherlands), and co-director of EUI in Florence (www.eudo.eu). It aims at fostering a broad debate among the Maastricht Centre for European academics and policy makers on current issues relating to the functioning Law. Part-time Professor at the of democracy in the European Union and in its member states. One of the Robert Schuman Centre of the instruments for this debate is the organisation of an annual dissemination European University Institute, conference, bringing together a large number of scholars from various disci- Florence, and co-director of the EUDO Observatory plines with policy-makers from the European institutions and with represen- on Institutional Change and Reforms. Previously, tatives of European civil society. from 2000 to 2010, professor of European Union Law What better topic could have been chosen for the 2012 Dissemination Con- at the European University Institute, Florence. ference, which took place on 22 and 23 November 2012 in Florence, than Main fields of research: Constitutional reform and the way in which the Euro crisis has affected the state of European democ- Treaty revision in the European Union; Relations racy? The Conference was organised by Alexander Trechsel (the director of between international, European and national law; EUDO) and by Adrienne Héritier and Bruno de Witte (the co-directors of Protection of fundamental rights in Europe; Rights EUDO’s sub-observatory on Institutional Change and Reforms, which is the of minorities, language law and cultural diversity group within EUDO whose work is most directly related to the theme of the in Europe; Internal market law; Decision-making 2012 conference). The role of Valentina Bettin, the project coordinator of and legal instruments of EU law. EUDO, was central both in organising the Dissemination Conference and in preparing the publication of this book. The Euro Crisis & the State of European Democracy 4 Go to Contents This book contains contributions that were origi- and the use of international agreements situated crisis, and in showing ways in which the crisis of- nally presented at the November 2012 conference. outside the EU legal framework, which were used fers routes towards the renewal of democracy. The It follows on a previous e-book entitled Inclusive to adopt the Fiscal Compact and the European ‘state of European democracy’, which is the central Democracy in Europe (edited by Kristen Jeffers) Stability Mechanism. The third section looks spe- concern of this book, is rather worrying, but there which contains contributions to the EUDO Dis- cifically at the prominent but rather secretive and, is also hope that the experiments and conflicts semination Conference of the previous year 2011. democratically speaking, somewhat anomalous which we are witnessing in reaction to the Euro role played by the European Central Bank in con- crisis may lead to a more solid European democ- The authors of the e-book that we now present to taining the