ECPR

Install the app

Install this application on your home screen for quick and easy access when you’re on the go.

Just tap Share then “Add to Home Screen”

ECPR

Install the app

Install this application on your home screen for quick and easy access when you’re on the go.

Just tap Share then “Add to Home Screen”

Rethinking the Policy-Making in the Economic and Monetary Union: The Institutional Social Responsibility and the Fiscal Reform Act

European Union
Governance
Policy Analysis
Political Economy
Europeanisation through Law
Eurozone
Policy-Making
Matteo Laruffa
LUISS University
Matteo Laruffa
LUISS University

Abstract

The purpose of this paper is to answer to the following research questions: How has European economic governance changed during the years of crisis (2007-2013)? What is the impact of constrained government budgets and their automatic mechanisms of policy-making? The first part of the paper describes the effects of the reforms of the European fiscal discipline implemented to date. It analyses the institutional design of the European economic governance, the principles of the European Semester, the trade-off between rules and politics, their effects on social responsibilities of the EU, and political participation/representation. Part two discusses four main paradoxes of the current model of governance and their impact on effectiveness of policies, conditions of democracy, well-being of person (in terms of socio-economic conditions and political rights), and equality of member states. The third part challenges the quantitative parameters of finance in the Fiscal Compact and lays out some proposals to move towards a different governance which does not tie the hands of policy-makers unconditionally. Finally, the last part of the paper illustrates some proposals for improving the quality of the model of governance with the Fiscal Reform act and a new policy analysis model based on the principles of the Institutional social responsibility. The conclusion summarizes some analytical indications concerning the consequences of the reforms on the European democracies in terms of representation, political rights, policy effectiveness, and social contract.