Why multilevel governance

(and why the halting response to the

Eurozone crisis)?

Gary Marks

• Why the sovereign debt crisis? • Why status quo problem solving? • Where does support for fiscal union come from?

Incomplete explanations Moral hazard Economic interest Historical memory

Some Puzzles

A) Functional pressure B) Community C) Populism

Permissive Consensus to Constraining Dissensus

• Economies of scale Internal market; international negotiation; reserve currency

• Externalities National bank policies; fiscal policy

• Spillover Market EMU Fiscal Union

Functional pressure

“Only a stronger and more integrated Europe will be able to exercise political and economic leadership on a global scale in the period

ahead”. Council on Foreign Relations, February 1, 1999

• Setting for good governance • Heterogeneity of preferences • Desire for self-rule

“Centralize where necessary; decentralize where possible”

Community

Länder in Germany Regierungsbezirke in Bayern

Bezirke in München

Kreise in Oberbayern

The world . . . . . . Europe

MULTI-LEVEL GOVERNANCE

05

101520253035404550

Public Opinion

national only

national first,european second

european first,national second

european only

IDENTITY

Source: Public Opinion (Eurobarometer June 2010)

1

Exclusive National Identity

Education

Fiscal Transfer

National Attachment

Type of Capitalism

Personal Economic Prospects

Multiculturalism

FIGURE 1: EFFECTS OF INDEPENDENT VARIABLES SU

PPOR

T FO

R EU

ROPE

AN IN

TEGR

ATIO

N

70

80

60

IDENTITY

Source: Hooghe/Marks (EUP, 2005)

Public opinion on Europe

ECONOMIC INTEREST

-2

0

2

4

6

8

1019

50

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -1

0

0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -1

0 0 0 0 0 0 0

0

0 0 0 0 0 0 0 0

POPULISM!

EU Accession referendum EU treaty referendum

WON

LOST

2010

Party Positioning

Pro-EU

Anti-EU

Criticism on the radical right

Identity construction!

Source: Edwards and De Vries 2007

national identity only

national and European

weak strong

Populist right political party

• Why the sovereign debt crisis? Failure of neofunctionalism • Why status quo problem solving? Intergovernmental procrastination ECB into the vacuum • Where does support for fiscal union come from? Non-elected EU institutions Anti-populist parties

• Neo-functionalism? • Liberal intergovernmentalism? • Conceptions of community-not just economic

interest • Populism not elite/interest group politics • Identities are politically constructed • Multi-level politics!

Lessons for theories of the EU

Eurobarometer 1992-1998

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ECONOMIC INTEREST

26 Régions

100 Départements

342 Arrondissements

4,032 Cantons

36,680 Communes

. . . at a limited number of levels . . . across vastly different scales

Non-intersecting jurisdictions . . .

Different structure -- East