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The Euro

Crisisand theStateofEuropeanDemocracy

Contributions from the

2012 EUDO DISSEMINATION CONFERENCE

Edited by

Bruno de Witte, Adrienne Héritier & Alexander H. Trechsel

ROBERT SCHUMAN CENTRE FOR ADVANCED STUDIES

is e.Book has been published by the European University Institute, Robert Schuman Centre for Advanced Studies, European Union Democracy Observatory - EUDO

is eBook includes revised papers which were initially presented at the conference “2012 EUDO Dissemination Conference: e 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

e 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 scientic 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. e 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:

EUDO.secretariat@eui.eu

Website:

www.eudo.eu e European Commission supports the EUI through the European Union budget. is publi- cation reects 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.

Co-funded by the

Lifelong Learning Programme

of the European Union

CONTENTS

Foreword

Bruno de Witte

SECTION I: THE IMPACT OF THE EURO CRISIS ON THE EU'S

INSTITUTIONAL BALANCE

1. e Eurozone Crisis and the Legitimacy of Dierentiated Integration

?omas Beukers ........................................................................t................................7

2. Legal Issues of e 'Fiscal Compact'. Searching or Mature Democratic Gov-

ernance f e Euro

Roberto Baratta

3. Contradiction, Circumvention and Conceptual Gymnastics: e Impact of the

Adoption of the E Treaty on the State of European Democracy

Jonathan Tomkin

SECTION II: AT THE MARGINS OF THE UNION: INSTITUTIONAL

EXPERIMENTS IN THE EURO CRISIS

4. Interstitial Institutional Change in Europe: Implications of e Financial and

Fiscal Crisis

Yannis Karagiannis

5. e Outcomes f Intergovernmentalism: e Euro Crisis and the Transforma-

tion of the Eur opean Union

Sergio Fabbrini........................................................................t..............................101

6. Reverse Majority Voting in Comparative Perspective: Implications for Fiscal

Governance in the E

Wim Van Aken & Lionel Artige

7. Unions ithin e Union: Contested Authority ver Regulatory Responses to

the Financial Crisis in Europe

Karolina Zurek

SECTION III: THE EURO CRISIS AND THE EUROPEAN CENTRAL BANK

8. e Crisis of the Euro and the New Role of the European Central Bank

Giulio Peroni ........................................................................t.................................183

9. e Euro Crisis, Institutional Change and Political Constraints

Francisco Torres ........................................................................t............................193

10. La prise d'autorité de la Banque centrale européenne et les dangers démocra-

tiques de la nouvelle gouvernance économique dans l'Union européenne

Cécile Barbier

SECTION IV: THE EURO CRISIS AT THE NATIONAL LEVEL

11. e Euro Crisis and New Dimensions of Contestation in National Politics

Alexia Katsanidou ........................................................................t........................242

12. Can Fiscal Councils Enhance the Role of National Parliaments in the European

Union? A Comparative Analysis

Cristina Fasone & Elena Griglio

13. Governing Portugal in Hard Times: Incumbents, Opposition and International

Lenders

Elisabetta De Giorgi, Catherine Moury & João Pedro Ruivo ............................306

14. National Fiscal Responses to the Economic Crisis: Domestic Politics and Inter-

national Organizations

Klaus Armingeon

15. e Discursive Double Game of E Reform: the Clash of Titans etween

French White Knight and German Iron Lady

Amandine Crespy &Vivien Schmidt

SECTION V: EUROPEAN CITIZENSHIP IN TIMES OF CRISIS

16. EU Citizenship and Intra EU Mobility: a Virtuous Circle Even in Times of Crisis

Anna Triandafyllidou & Michaela Maroufof .....................................................37

17. Crisis and Trust in the National and European Governmental Institutions

Felix Roth, Felicitas Nowak-Lehmann D. & ?omas Otter ...............................39

18. Crumbling or Coping? European Citizenship in (the) Crisis

Ulrike Liebert ........................................................................t...............................40

4The Euro Crisis & the State of European Democracy

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FOREWORD

Bruno de Witte

Professor of European Union Law at

Maastricht University (The

Netherlands), and co-director of

the Maastricht Centre for European

Law. Part-time Professor at the

Robert Schuman Centre of the

European University Institute,

Florence, and co-director of the EUDO Observatory

on Institutional Change and Reforms. Previously, from 2000 to 2010, professor of European Union Law at the European University Institute, Florence. Main fields of research: Constitutional reform and

Treaty revision in the European Union; Relations

between international, European and national law; Protection of fundamental rights in Europe; Rights of minorities, language law and cultural diversity in Europe; Internal market law; Decision-making and legal instruments of EU law.EUDO - the European Union Democracy Observatory - is an interdisci- plinary academic organization based at the Robert Schuman Centre of the EUI in Florence (www.eudo.eu). It aims at fostering a broad debate among academics and policy makers on current issues relating to the functioning of democracy in the European Union and in its member states. One of the instruments for this debate is the organisation of an annual dissemination conference, bringing together a large number of scholars from various disci- plines with policy-makers from the European institutions and with represen- tatives of European civil society. What better topic could have been chosen for the 2012 Dissemination Con- ference, which took place on 22 and 23 November 2012 in Florence, than the way in which the Euro crisis has a?ected the state of European democ- racy? ?e Conference was organised by Alexander Trechsel (the director of EUDO) and by Adrienne Héritier and Bruno de Witte (the co-directors of EUDO's sub-observatory on Institutional Change and Reforms, which is the group within EUDO whose work is most directly related to the theme of the

2012 conference). ?e role of Valentina Bettin, the project coordinator of

EUDO, was central both in organising the Dissemination Conference and in preparing the publication of this book.

5The Euro Crisis & the State of European Democracy

Go to Contents?is book contains contributions that were origi- nally presented at the November 2012 conference. It follows on a previous e-book entitled Inclusive

Democracy in Europe

(edited by Kristen Je?ers) which contains contributions to the EUDO Dis- semination Conference of the previous year 2011. ?e authors of the e-book that we now present to you contributed to the 2012 dissemination confer- ence. Most of them are academics, but they also include some civil society actors. ?eir disciplin- ary homes range from political science, via sociol ogy and law, to economics. ?e book is divided in ?ve sections. ?e ?rst two sections explore the diverse ways in which the institutional system of the European Union has been a?ected by the unfolding Euro crisis and the e?orts to contain that crisis. ?e contributions look at the impact on the relations between the EU institutions (for example, was there an increase of the power of the intergovernmental institutions?), the innova- tions in EU decision-making (such as the 'inven tion' of reverse majority voting in the Council), the experiments with the use of so? law instru- ments and with greater di?erentiation (between

the EU-27 and sub-groups such as the EURO-17), and the use of international agreements situated outside the EU legal framework, which were used to adopt the Fiscal Compact and the European Stability Mechanism. ?e third section looks spe-

ci?cally at the prominent but rather secretive and, democratically speaking, somewhat anomalous role played by the European Central Bank in con- taining the Euro crisis. In the fourth section, the focus of analysis shi?s from the European to the national level. ?e contributions to that section examine political and institutional changes that are taking place at the national level, and the way in which national elites have tried to accommo- date the new demands from 'Europe' or to in?u- ence the decisions taken in the European arena. ?e authors of the ?h section present contrast- ing views on how the crisis has a?ected the sig- ni?cance of European citizenship and the rights attached to it, as well as the attitudes of European citizens towards the European Union and towards each other.

Our hope is that the contributions to this e-book

will be useful both in clarifying the variety of ways in which democratic institutions and prac-

tices have been shaken by the turmoil of the Euro crisis, and in showing ways in which the crisis of-

fers routes towards the renewal of democracy. ?e 'state of European democracy', which is the central concern of this book, is rather worrying, but there is also hope that the experiments and con?icts which we are witnessing in reaction to the Euro crisis may lead to a more solid European democ- racy that combines e?ective multilevel decision- making with a greater concern for participation by its citizens and for solidarity among them.

SECTION I:

THE IMPACT OF THE

EURO CRISIS ON THE

EU"S INSTITUTIONAL

BALANCE

7The Euro Crisis & the State of European Democracy

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1. THE EUROZONE CRISIS AND THE LEGITIMACY

OF DIFFERENTIATED INTEGRATION

?omas Beukers 1

Thomas Beukers is a Max Weber

Fellow in Law at the European

University Institute. Before

joining the EUI, he conducted his

Ph.D. research at the Law Faculty

of the University of Amsterdam from

2004 until 2009, after which he

became a lecturer in European law at Utrecht

University. He is an Editor of the European

Constitutional Law Review (Asser/CUP). His

research interests include the relationship between law and politics as well as the constitutional law of the European Union. His recent research focuses on the constitutional development and structure of the EU"s economic and monetary union as a result of the Eurozone crisis.

1. Max Weber Fellow in LAW, European University Institute. ?e author is grateful to

the Dutch Niels Stensen Foundation ('Niels Stensen Stichting') for providing ?nancial support to conduct postdoctoral research at the EUI.

8The Euro Crisis & the State of European Democracy

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1. Introduction

?e Eurozone crisis has led to important new forms of di?erentiated integration, both within the EU Treaties and outside. Existing and new in- struments for di?erentiated integration have been used for the deepening of economic governance, for rules on increasing budgetary discipline and for the creation of emergency funds. ?ese in novations apply to the member states of the Eu- rozone, but sometimes include also others. ?us, the so-called 'Six-Pack' of EU legislation, which entered into force in December 2011 intends to strengthen economic governance and applies partly to all member states and partly only to the

Eurozone. ?e Fiscal Compact (FC) was conclud-

ed in March 2012 by 25 member states mainly in order to strengthen budgetary discipline. 2

In Sep

tember 2012 the European Stability Mechanism (ESM Treaty) establishing a permanent rescue fund entered into force for the member states of the Eurozone, succeeding the earlier EFSF, which originated in May 2010. ?ese new forms of dif

2. Treaty on Stability, Coordination and Governance in

the Economic and Monetary Union.quotesdbs_dbs18.pdfusesText_24

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