The Reform of EU Economic Governance

The Reform of EU Economic Governance

Gheorghe H. Popescu (Dimitrie Cantemir Christian University, Romania)
Copyright: © 2015 |Pages: 19
DOI: 10.4018/978-1-4666-7521-6.ch005


The main objective of this chapter is to explore and describe the EU's management of the economic and financial crisis, the leading role of the European Council in economic governance, the governmental and parliamentary institutions involved in EU economic governance, and the democratic character of the new system of economic governance. Applying new conceptual and methodological approaches, this study advances to the next level research on the political relevance of EU-level coordination in the area of economic governance, the new governance of fiscal discipline, the dynamic of building sovereignty at the EU level, and the economic governance of the Euro area. This chapter discusses the major trends in scholarship about the evolution of EU economic governance, the changing decision-making agenda of EU economic governance, the deficiencies in EU economic governance exposed by the crisis, and the slowness of the European measures on the regulation and governance of finance. The authors is specifically interested in how previous research investigated the categorization and exercise of EU competences, the economic government of the Euro area, supranational modes of policymaking, and the tendency of EU economic governance towards intergovernmental policy coordination.
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2. The Framework Of Eu Economic Governance

The new European system of economic governance has basically modified the framework requirements for national collective agreement and has generated a new European interventionism in the sphere of wage policy: the EU’s road map for change is a decentralized system of collective agreement (European market integration did not automatically cause a convergence of national collective agreement systems). The new European interventionism generated a direct assault on established systems of multi-employer agreement, and must be regarded as a political undertaking to mitigate European trade unions. (Schulten and Müller, 2013) EU economic governance has been generated by inter-state coordination as a method to take action on the currency area’s advances and to improve merging. Policy-makers and political leaders should consider a set of realistic modifications that could augment the record of EU economic governance. As a response to the euro area crisis, EU leaders should have readjusted the institutional basis of European Monetary Union (EMU). EU governance assigns a priority to merging in terms of fiscal and competitiveness aggregates (fiscal discipline and market elasticity may disunite EU economic frameworks). EU economic coordination is politically sensitive. More energy should be spent on enhancing the coordination of national policies immediately. National welfare policies and wage-setting systems are an outstanding determinant of EU convergence or divergence. (Thillaye, 2013)

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