The Evolution of the European Economic Governance System

The project addresses the particularities of the European economic governance system uncovering reasons for the emergence of different modes of cooperation. Why are some economic policies such as business taxation regulated by soft forms of coordination whereas monetary policy is subject to a supranational mode of governance? Building on a discursive institutionalist approach, the project draws attention to the role of issue specific knowledge and political communication in the EU. Although previous research endeavours in this field have contributed to a better understanding of how ideas and communication facilitate the emergence of a consensus among supranational elites, they neglect addressing reasons for the emergence of different modes of European cooperation. The project builds on this shortcoming and investigates the particularities of European economic governance based on a comparative and overtime case study of business taxation and monetary policy, cases that involve soft and supranational forms of governance.
The project shows that reform ideas are crucial for the emergence of different governance outcomes as they determine whether a reform is perceived as relevant and feasible at all. Moreover, the findings reveal several particularities of European political communication: first, market-liberal reforms are generally advantaged in the decision-making process as more intervention requires a broader consensus, which can be difficult in a Union with heterogeneous political cultures and governments. Furthermore, the public discourse is dominated by the Commission’s official agenda missing to offer left- and right-wing policy alternatives. However, this appears to be a crucial element to tackle problems of economic policy frustration and to create a more sustainable and legitimate Community.