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What Kind of Europe?$

Loukas Tsoukalis

Print publication date: 2003

Print ISBN-13: 9780199266661

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199266662.001.0001

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What Kind of Europe?
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Chapter 1. What Kind of Europe?

Writing on Europe, and European integration in particular, has been a popular pastime for authors from different academic disciplines and occupations, covering a very wide range from the general and abstract to the pedantic. The bibliographical references given below are therefore only an indicative list chosen from an extremely rich literature.

For a fascinating history of Europe, from the ice age to the cold war, see Norman Davies, A History of Europe (Oxford: Oxford University Press, 1996). For an extremely well‐written study of the twentieth century, see Mark Mazower, Dark Continent (London: Allen Lane, 1998); and for a comprehensive history of ideas about Europe and European identity, see Anthony Pagden (ed.), The Idea of Europe: From Antiquity to the European Union (Cambridge: Cambridge University Press, 2002).

On federalism, the literature is rich in number but of highly uneven quality. One of the better works is Dusan Sidjanski, The Federal Future of Europe: From the European Community to the European Union (Ann Arbor: The University of Michigan Press, 2000).

There are many introductory books on European integration. Among the better ones are John Pinder, The Building of the European Union, 3rd edn (Oxford: Oxford University Press, 1998); and Desmond Dinan, Ever Closer Union: An Introduction to European Integration (Basingstoke: Macmillan, 1999). See also the special fortieth anniversary issue of the Journal of Common Market Studies, 40/4 (2002), one of the leading journals in the field.

Larry Siedentop, Democracy in Europe (London: Allen Lane, 2000) offers a fresh look by an outsider, arguing that the process of integration poses a serious threat to democracy in Europe. The reader may also want to consult the web site of the European Convention for the current debate on the future of Europe, although trying to separate the wheat from the chaff may prove to be an extremely time‐consuming exercise: <http://www.european‐convention.eu.int>.

Two French authors provide a tentative political answer to the question ‘What kind of Europe?’: see Pascal Lamy and Jean Pisani‐Ferry, The Europe We Want (London: Arch Press, 2002).

Donald Puchala is the author of the highly perceptive article ‘Of Blind Men, Elephants and International Integration’, Journal of Common Market Studies, 10/3 (1972), which points out the difficulties and risks of going for the overall picture as opposed to narrow specialization. It could have served as a warning to the author of this book.

(p.224) Chapter 2. The Gap Between Politics and Economics—Or, Perception and Reality

For a political economy study of European integration, see Loukas Tsoukalis, The New European Economy Revisited (Oxford: Oxford University Press, 1997). See also Jacques Pelkmans, European Integration: Methods and Economic Analysis, 2nd edn (Harlow: Pearson, 2001), and Wilhelm Molle, The Economics of European Integration: Theory, Practice, Policy, 4th edn (London: Ashgate, 2001).

For the earlier history, see Alan Milward, The Reconstruction of Western Europe 1945–51 (London: Methuen, 1984), and Nicholas Craft and Gianni Toniolo (eds), Economic Growth in Europe Since 1945 (Cambridge: Cambridge University Press, 1996).

Two comprehensive and highly informative books on the European political system and EU decision‐making are Helen Wallace and William Wallace (eds), Policy‐Making in the European Union, 4th edn (Oxford: Oxford University Press, 2000), and Simon Hix, The Political System of the European Union (Basingstoke: Macmillan, 1999). For a study of the effects of integration on national political systems, see Klaus Goetz and Simon Hix (eds), Europeanised Politics? European Integration and National Political Systems (London: Frank Cass, 2001), and Yves Mény, Pierre Muller, and Jean‐Louis Quermonne (eds), Adjusting to Europe: The Impact of the European Union on National Institutions and Policies (London: Routledge, 1996).

For a sophisticated application of political theory to European integration, see Andrew Moravscik, The Choice for Europe: Social Purpose and State Power from Messina to Maastricht (Ithaca: Cornell University Press, 1998); and for a critical approach from a social democratic perspective, see Fritz Scharpf, Governing in Europe: Effective and Democratic? (Oxford: Oxford University Press, 1999). Joseph Weiler has written extensively on the link between law and politics in European integration; a collection of essays can be found in Joseph Weiler, The Constitution of Europe (Cambridge: Cambridge University Press, 1999).

The ‘democratic deficit’ of the EU has attracted a great deal of attention. Representative examples of works in this area are Jack Hayward (ed.), The Crisis of Representation in Europe (London: Frank Cass, 1995) and Andrew Moravscik (2002), ‘In defence of the “Democratic Deficit”: Reassessing Legitimacy in the European Union’, Journal of Common Market Studies, 40/4 (2002). See also Siedentop, Democracy in Europe.

The reader may also consult the website on the findings of Eurobarometer surveys of public opinion: <http://europa.eu.int/comm/public_opinion/>.

Chapter 3. Winners and Losers . . . 

A classic on the relationship between the state and the market in Europe is Karl Polanyi, The Great Transformation (Boston: Beacon Press, 1957). See also Andrew Shonfield, Modern Capitalism (Oxford: Oxford University Press, 1965). Some of the references mentioned above are also relevant here, such as Crafts and Toniolo, (p.225) Economic Growth in Europe Since 1945; Tsoukalis, The New European Economy Revisited; and Moravscik, The Choice for Europe.

For the ex ante study of the effects of the internal market, see Commission of the EC, ‘The Economics of 1992’, European Economy, No. 35 (March 1988); and for the popular version, Paolo Cecchini, The European Challenge: 1992 (Aldershot: Wildhouse, 1988). For the ex post study, see European Commission, ‘Economic Evaluation of the Single Market’, European Economy, Reports and Studies No. 4 (Luxembourg: Office for Official Publications of the European Communities, 1996); and European Commission, The Single Market Review (London: Kogan Page, 1996).

For centre—periphery theories, see Dudley Seers and Constantine Vaitsos (eds), Integration and Unequal Development: The Experience of the EEC (New York: St Martin's Press, 1980). Two good examples of subsequent works on Europeanization and modernization effects on the periphery are José‐Maria Maravall, Regimes, Politics and Markets (Oxford: Oxford University Press, 1997); and George Pagoulatos, Greece's New Political Economy: State, Finance and Growth from Postwar to EMU (Basingstoke: Palgrave, 2003).

On economic inequalities, the reader may consult Amartya Sen, On Economic Inequality (Oxford: Clarendon Press, 1997); Daniel Cohen, Thomas Piketty, and Gilles Saint‐Paul, The Economics of Rising Inequalities (Oxford: Oxford University Press, 2002); Michael Forster and Mark Pearson, ‘Income Distribution and Poverty in the OECD Area: Trends and Driving Forces’, OECD Economic Studies (Paris: OECD, 2002).

For the distributional effects of EU policies, see Ronald Hall, Alasdair Smith, and Loukas Tsoukalis (eds), Competitiveness and Cohesion in EU Policies (Oxford: Oxford University Press, 2001). Among official EU publications, the reader may consult the first and second cohesion reports of the European Commission: European Commission, First Report on Economic and Social Cohesion (Luxembourg: Office for Official Publications of the European Communities, 1996); and European Commission, Unity, Solidarity and Diversity for Europe, its People and its Territory—Second Report on Economic and Social Cohesion, vols 1 and 2 (Luxembourg: Office for Official Publications of the European Communities, 2001); and the regular reports on The Social Situation in the European Union. A critical study of the effects of EU regional policies can be found in Michele Boldrin and Fabio Canova, ‘Inequality and Convergence in Europe's Regions: Reconsidering European Regional Policies’, Economic Policy, 16/32 (2001).

Chapter 4. . . .  and the Rest of the World: Americans and Others

On the common commercial policy and external trade of the EU, see H. Paemen and A. Bensch, From the GATT to the WTO: The European Community in the Uruguay Round (Leuven: Leuven University Press, 1995); and I. Macleod, I. D. Hendry, and S. Hyett, The External Relations of the European Communities (Oxford: Clarendon Press, 1996).

A good introductory book to the new world trading system is Bernard Hoekman and Michel Kostecki, The Political Economy of the World Trading System: The WTO (p.226) and Beyond, 2nd edn (Oxford: Oxford University Press, 2001). Financial services deserve separate study: see, for example, Geoffrey Underhill (ed.), The New World Order in International Finance (New York: St Martin's Press, 1997).

Relations with the privileged partners and the subject of regionalism are discussed in M. Lister, The European Union and the South (London: Routledge, 1997); Martin Holland, The European Union and the Third World (Basingstoke: Palgrave, 2002); and Richard Pomfret, The Economics of Regional Trading Arrangements (Oxford: Oxford University Press, 2001). On EU external aid, see the Commission annual reports in <http://europa.eu.int/comm/europeaid/reports/index_en.htm>

For an informative historical survey of the CFSP, see Anthony Forster and William Wallace, in Wallace and Wallace, Policy‐Making in the European Union. For a critical approach, emphasizing the gap between expectations and capabilities, see Christopher Hill, ‘The Capability–Expectations Gap, Or Conceptualising Europe's International Role’, Journal of Common Market Studies, 31/3 (1993); and also Stanley Hoffmann, ‘Towards a Common European Foreign and Security Policy?’, Journal of Common Market Studies, 38/2 (2000). The transatlantic dimension of the CFSP is also dealt with below in Chapter 7.

For a collective work on the prospects of a European defence policy, see François Heisbourg et al., European Defence: Making It Work, Chaillot Papers No. 2 (Paris: Institute for Security Studies, 2000); and Gilles Andréani, Charles Bertram, and Charles Grant, Europe's Military Revolution (London: Centre for European Reform, 2001).

On recent developments in home and justice affairs, see Jörg Monar, ‘The Dynamics of Justice and Home Affairs: Laboratories, Driving Factors and Costs’, Journal of Common Market Studies, 39/4 (2001).

Robert Cooper was the first to refer to EU states as postmodern states; see Robert Cooper, The Postmodern State and the World Order (London: Demos and Foreign Policy Centre, 1996).

Chapter 5. Economic Governance and Policy Choices

For an interesting recent book on persisting different models of capitalism in Europe and their comparative advantages, see Peter Hall and David Soskice (eds), Varieties of Capitalism (Oxford: Oxford University Press, 2001); and Vivien Schmidt, The Futures of European Capitalism (Oxford: Oxford University Press, 2002). Michel Albert wrote a widely read book on the subject in 1991: Capitalisme contre capitalisme (Paris: Le Seuil, 1991); for the English translation, Capitalism against Capitalism (London: Whurr, 1993). For the old classics, see Polanyi, The Great Transformation and Shonfield, Modern Capitalism.

One of the best books on European regulation has been written by Giandomenico Majone, Regulating Europe (London: Routledge, 1996). The Centre for Economic Policy Research, Making Sense of Subsidiarity: How Much Centralization for Europe? (London: CEPR, 1993) remains one of the most enlightening works on the subject, seen from an economic perspective.

(p.227) For a rather agnostic conclusion on the effects of the internal market, see Paul Geroski and Klaus Peter Gugler, Corporate Growth Convergence in Europe, CEPR Discussion Paper 2838 (London: CEPR, June 2001). The European Commission publishes a regular scoreboard concerning the implementation of internal market measures by member countries. See <http://europa.eu.int/comm/internal_market/en/update/score>

Gallons of ink have been spilled on the reform of the CAP, so far with limited effect. Among the better examples, going in the direction of a rural policy, is the article by Louis Pascal Mahé and François Ortalo‐Magné, ‘Five Proposals for a European Model of the Countryside’, Economic Policy, April, 28 (1999); and, for the longer version, Politique Agricole: Un Modèle Européen (Paris: Presses de Sciences Po, 2001). See also Elmar Rieger in Wallace and Wallace, Policy‐Making in the European Union.

Michelle Cini and Lee McGowan, Competition Policy in the European Union (Basingstoke: Macmillan, 1998) is a general introductory book on the subject. For a more specialized study of the application of merger legislation, see Edurne Navarro and Andres Font, Merger Control in the EU (Oxford: Oxford University Press, 2002).

On financial services, the reader may consult Geoffrey Underhill, The New World Order in International Finance for broad and mostly critical coverage of the main issues. In a similar vein, and written in a more provocative style, see Susan Strange, Mad Money (Manchester: Manchester University Press, 1998). The annual reports of the Bank for International Settlements (BIS) contain rich information and analysis of the main developments in the international financial system; an official view, although hardly complacent <http://www.bis.org>. The very interesting 2001 report of the Group of Ten, Report on Consolidation in the Financial Sector, can be found on the same site. For developments in the EU, one may consult <http://europa.eu.int/comm/internal_market/en/finances/actionplan/>

Gøsta Esping‐Andersen, Three Worlds of Welfare Capitalism (Princeton: Princeton University Press, 1990), has written the standard book on different models of welfare state in Europe. For more recent works on the challenges of reform, see also Martin Rhodes and Yves Mény (eds), The Future of European Welfare: A New Social Contract? (London: Macmillan, 1998); G. Bertola, T. Boeri, and G. Nicoletti (eds), Welfare and Employment in a United Europe (Cambridge: MIT Press, 2001); and Gøsta Esping‐Andersen et al., Why We Need a New Welfare State (Oxford: Oxford University Press, 2002). A recent work on immigration in Europe is Tito Boeri, Gordon Hanson, and Barry McCormick, Immigration Policy and the Welfare System (Oxford: Oxford University Press, 2002).

On tax harmonization, see Ruding Committee, Report of the Committee of Independent Experts on Company Taxation (Brussels: European Commission, 1992); and Sijbren Cnossen (ed.), Taxing Capital in the European Union: Issues and Options for Reform (Oxford: Oxford University Press, 2000). Clear and informative accounts of the EU budgetary process and the operation of Structural Funds can be found in the chapters by Brigid Laffan and Michael Shackleton, and David Allen respectively in the book edited by Wallace and Wallace, Policy‐Making in the European Union.

(p.228) Chapter 6. EMU: A Unifying Factor

There is a rich and rapidly growing literature on EMU with contributions from both academics and practitioners. EMU offers a real‐world laboratory for economists and other social scientists to test their theories, and many of them have risen to the challenge. As the big day approached, there was growing recognition of the fact that that this was no mere economic project for which traditional economic theories would suffice. This has been reflected in the more recent literature on the subject.

For the history of European monetary integration, see Loukas Tsoukalis, The Politics and Economics of European Monetary Integration (London: Allen & Unwin, 1977); Peter Ludlow, The Making of the European Monetary System (London: Butterworths, 1982); Tommaso Padoa‐Schioppa, The Road to Monetary Union: The Emperor, the Kings, and the Genies (Oxford: Clarendon Press, 1994); and Kenneth Dyson and Kevin Featherstone, The Road to Maastricht (Oxford: Oxford University Press, 1999).

For a comprehensive study of the economics of EMU, see Paul de Grauwe, Economics of Monetary Union, 4th edn (Oxford: Oxford University Press, 2000). See also Daniel Gros and Niels Thygesen, European Monetary Integration, 2nd edn (Oxford: Oxford University Press, 1998); and the special issue of the Oxford Review of Economic Policy, 14/3 (1998), especially the articles by Christopher Allsopp and David Vines, and Barry Eichengreen.

For an in‐depth political economy approach to EMU, the reader may consult Kenneth Dyson, Elusive Union: The Process of Economic and Monetary Union in Europe (Oxford: Oxford University Press, 2000); also Jeffry Frieden, Daniel Gros, and Erik Jones (eds), The New Political Economy of EMU (Oxford: Rowman & Littlefield, 1998); Kenneth Dyson (ed.), European States and the Euro: Europeanization, Variation, and Convergence (Oxford: Oxford University Press, 2002); and the book edited by Colin Crouch, After the Euro (Oxford: Oxford University Press, 2000), especially the article by Robert Boyer.

For a catastrophe theory of EMU, see Martin Feldstein, ‘EMU and International Conflict’, Foreign Affairs, 76/4 (1997); on the legitimacy issue, Dermot Hodson and Imelda Maher, ‘Economic and Monetary Union: Balancing Credibility and Legitimacy in an Asymmetric Policy‐Mix’, Journal of European Public Policy, 8/3 (2002); and, on policy coordination, Iain Begg (ed.), Europe: Government and Money (London: The Federal Trust, 2002).

Two representative works with a critical approach and proposals for reform are: Paul De Grauwe, ‘Challenges for Monetary Policy in the Euroland’, Journal of Common Market Studies, 40/4 (2002); and Jean‐Paul Fitoussi and Jérôme Creel, How to Reform the European Central Bank (London: Centre for European Reform, 2002). See also Monitoring the European Central Bank, a series published by the Centre for Economic Policy Reform (London). Closer to the official view from the ECB is Otmar Issing et al., Monetary Policy in the Euro Area (Cambridge: Cambridge University Press, 2001).

The effects on banking are examined in Edward Gardener, Philip Molyneux, and Barry Moore (eds), Banking in the New Europe: The Impact of the Single European Market Programme and EMU on the Banking Sector (Basingstoke: Palgrave, 2002).

(p.229) Thomas Friedman has introduced the idea of the ‘Golden Straitjacket’ in The Lexus and the Olive Tree (London: Harper Collins, 2000).

Chapter 7. Extending Pax Europea

The subject of further enlargement has been directly linked to the general debate about the future of Europe, since it touches on literally every aspect of European integration. Thus, many of the bibliographical references mentioned above also deal with different aspects of enlargement. The annual reports of the Commission on the whole process, as well as on each candidate country, contain useful material: see <http://europa.eu.int/comm/enlargement/report2002>

For a clear overview of eastern enlargement and the problems raised by it, see Alan Mayhew, Recreating Europe: The European Union's Policy towards Central and Eastern Europe (Cambridge: Cambridge University Press, 1998); and Peter Mair and Jan Zielonka (eds), The Enlarged European Union: Diversity and Adaptation (London: Frank Cass, 2002).

On transition economies, there is a good though somewhat dated book: Daniel Gros and Alfred Steinherr, Winds of Change: Economic Transition in Central and Eastern Europe (Harlow: Longman, 1995). See also the annual reports of the European Bank for Reconstruction and Development (EBRD) <http://www.ebrd.org/pubs/index/htm> as well as the World Bank reports <http://www.worldbank.org>, including most notably, World Bank, Transition: The First Ten Years (Washington, DC: World Bank, 2002). A good case study of the communist legacy in transition countries can be found in Abby Innes, Czechoslovakia: The Short Goodbye (New Haven and London: Yale University Press, 2001).

Mark Mazower has written a very good short history of The Balkans (London: Weidenfeld & Nicholson, 2000). See also Misha Glenny, The Balkans 1804–1999: Nationalism, War and the Great Powers (London: Granta, 1999). On the role of the EU in the region and the prospects for membership, see Wim van Meurs and Alexandros Yannis, The European Union and the Balkans: From Stabilisation Process to Southeastern Enlargement, Hellenic Foundation for European and Foreign Policy/Centrum für angewandte Politikforschung (Gütersloh: Bertelsmann Foundation, 2002). See also the excellent article by Ivan Krastev on the absolute despair of electorates in Balkan countries: ‘The Balkans: Democracy Without Choices’, Journal of Democracy, 13/3 (2002).

A recent book on Turkey is Brian Beeley (ed.), Turkish Transformation (London: Eothen, 2002). See also Heinz Kramer, A Changing Turkey: The Challenge to Europe and the United States (Washington, DC: Brookings Institution Press, 2000).

On the Cyprus problem and EU accession, see Michael Emerson and Nathalie Tocci, Cyprus as Lighthouse of the East Mediterranean: Shaping Reunification and EU Accession Together (Brussels, CEPS, 2002); and Thomas Diez (ed.), The European Union and the Cyprus Conflict (Manchester: Manchester University Press, 2002).

(p.230) On EU‐Russia relations, see Dmitriy Danilov and Stephan De Spiegeleire, From Decoupling to Recoupling: A New Security Relationship Between Russia and Western Europe?, Chaillot Papers No. 31 (Paris: Institute for Security Studies, 1998); and Michael Emerson et al., The Elephant and the Bear: European Union, Russia and their Near Abroads, CEPS Working Paper (Brussels: CEPS, 2001). The effects of enlargement on the Union's near abroad to the east are discussed in Stephen White, Ian McAllister, and Margot Light, ‘Enlargement and the New Outsiders’, Journal of Common Market Studies, 40/1 (2002).

The link between globalization and European integration has been discussed extensively. Some of the better works on the subject include: Henryk Kierzkowski (ed.), Europe and Globalization (Basingstoke: Palgrave, 2002); and François Bourguignon et al., Making Sense of Globalization, CEPR Policy Paper No. 8 (London: CEPR, 2002). For a critical approach to globalization from a historical perspective, see Harold James, The End of Globalization: Lessons from the Great Depression (Cambridge: Harvard University Press, 2001); also Joseph Stiglitz and Pierre‐Alain Muet (eds), Governance, Equity, and Global Markets (Oxford: Oxford University Press, 2001); and for fundamental differences between US and European perspectives, see Stanley Hoffmann, ‘Clash of Globalizations’, Foreign Affairs, 81/4 (2002).

After the arrival of George Bush Jr to power, and even more so after the events of 11 September 2001, much has been written on the growing divergence between US and European policies and the reasons for it, the use of ‘hard’ and ‘soft’ power in today's world, and the unilateral tendencies of the strong in contrast to the internationalism of the weak. Some of the more interesting studies are: Joseph Nye Jr, The Paradox of American Power (Oxford: Oxford University Press, 2002); David Calleo, Rethinking Europe's Future (Princeton: The Century Foundation, 2001); and, a very different approach, Henry Kissinger, Does America Need a Foreign Policy? (New York: Simon & Schuster, 2001). Two short and cogently argued pieces of work are: Robert Kagan, ‘Power and Weakness’, Policy Review, No. 113 (2002); and Pierre Hassner, The United States: The Empire of Force or the Force of the Empire?, Chaillot Papers No. 54 (Paris: Institute for Security Studies, 2002).

Chapter 8. What Is at Stake?

There have been several attempts to develop scenarios for the future development of the enlarged EU, usually with an element of voluntarism included. For a piece of official wisdom, one may consult European Commission, Scenarios Europe 2010: Five Possible Futures for Europe (Brussels: European Commission, Forward Studies Unit, 1999). For a short and cogently argued piece, see Charles Grant, EU 2010: An Optimistic Vision of the Future (London: Centre for European Reform, 2000).

The ongoing debate on the future of Europe can be followed on the web site of the European Convention <http://www.european‐convention.eu.int>. The web sites of the rotating presidencies of the Council usually also contain interesting information. On (p.231) issues of governance and democracy in the EU, see also European Commission, Enhancing Democracy: A White Paper on Governance in the European Union (Brussels: European Commission, 2001).

On the continuing relevance or otherwise of the left–right division in contemporary European politics, a very good book is by Norberto Bobbio, Left and Right, translated from Italian (Cambridge: Polity Press, 1996). See also Anthony Giddens, The Third Way: The Renewal of Social Democracy (Cambridge: Polity Press, 1998). On left versus right and EU politics, the reader may also consult the website <http://www.eustudies.org/LeftRightForum.htm> for an interesting ongoing debate among academics.

Siedentop, Democracy in Europe, has developed the argument that Europe is not yet ready for federalism, although this may be the right goal. For a more constructive approach, emphasizing the need for strengthening of the popular pillar of European democracy, see Yves Mény, ‘De la démocratie en Europe: Old Concepts and New Challenges’, Journal of Common Market Studies, 41/1 (2003).