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The future of the European Union: Towards a functional federalism

Author

Listed:
  • Marek Dabrowski

    (Bruegel, Brussels
    Higher School of Economics, Moscow
    CASE – Center for Social and Economic Research, Warsaw)

Abstract

The series of adverse shocks of both economic and political character that Europe has suffered since 2008, the last of them coming from the Brexit referendum, revealed numerous institutional gaps and asymmetries in the EU integration architecture. They originate from the voluntary nature of the EU project and the necessity to obtain unanimous approval of all member states to take new integration steps. To increase the resilience of the EU project against current and future shocks, its major institutional gaps and asymmetries should be addressed as quickly as possible. In this paper, we use the theory of fiscal federalism and subsidiarity principle to set the agenda of the EU reform. This includes the identification of areas such as completing the EMU and Schengen projects, foreign, security, and defence policies, environmental and climate change policies where further integration can offer substantial returns to scale and better provisions of global and pan-European public goods. On the other hand, there are also areas such as agriculture policy, products, services and labour standards, and fiscal surveillance rules, where deregulation in favour of market forces could ease business environment and make EU regulations less bureaucratic. Developing integration beyond the traditional economic sphere will also have an impact on the size of the EU budget, balance of power between the EU governing bodies (a bigger role of the European Parliament) and the democratic legitimacy of the EU project.

Suggested Citation

  • Marek Dabrowski, 2016. "The future of the European Union: Towards a functional federalism," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 66(supplemen), pages 21-48, December.
  • Handle: RePEc:aka:aoecon:v:66:y:2016:i:supplement1:p:21-48
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    Citations

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    Cited by:

    1. Markéta Novotná, 2017. "Currernt Development In Schengen: A Proof Of Its Crisis Or Flexibility?," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 15(4), pages 407-434.
    2. Gregorz W. Kolodko & Marta Postula, 2018. "Determinants and Implications of the Eurozone Enlargement," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 68(4), pages 477-498, December.
    3. Ľubomír Čech, 2017. "Stredoázijskí Islamisti V Sýrskom Konflikte A Ich Vplyv Na Radikalizáciu Domovských Krajín," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 15(4), pages 344-357.
    4. Marek Dabrowski, 2022. "Towards a New Eastern Enlargement of the EU and Beyond," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 57(4), pages 209-212, July.
    5. G. W. Kolodko & M. Postula., 2018. "Determinants and implications of the Eurozone enlargement," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 7.
    6. Alexandar Dashtevski & Jana Ilieva, 2017. "International Legal Framework For Dealing With Hate Speech," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 15(4), pages 358-370.
    7. Margaréta Nadányiová, 2017. "Zmyslový Marketing Ako Nástroj Budovania Značky Na Medzinárodnom Trhu," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 15(4), pages 371-389.
    8. Pavel Neumann, 2017. "Hospodářská Politika Trumpovy Administrativy Jako Kontroverzní Faktor Změn Globalizační Dynamiky," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 15(4), pages 390-406.

    More about this item

    Keywords

    European integration; European Union; theory of fiscal federalism; subsidiarity principle; EU budget; democratic legitimacy;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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