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Explaining Informal Policy-Making Patterns in the Eurozone Crisis: Decentralized Bargaining and the Theory of EU Institutions

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  • Magnus Schoeller
  • Mattia Guidi
  • Yannis Karagiannis

Abstract

During the Eurozone crisis, the so-called ‘Merkozy duumvirate’ emerged as an informal, but highly visible EU policy-making pattern. This article asks why such forms of decentralized bargaining emerge and what this implies for the theory of EU institutions. According to an approach based on negotiation theory, the article argues that Merkozy is a strategic tool used by Germany to realize its preferences on EU crisis management. Based on an incomplete contracts theory of EU institutions, instead, the article analyses Merkozy as an informal institution created by France and Germany to avoid being discriminated by supranational institutions. Both approaches are employed to assess Merkozy’s role in the decision-making process leading to the adoption of the Fiscal Compact.

Suggested Citation

  • Magnus Schoeller & Mattia Guidi & Yannis Karagiannis, 2017. "Explaining Informal Policy-Making Patterns in the Eurozone Crisis: Decentralized Bargaining and the Theory of EU Institutions," International Journal of Public Administration, Taylor & Francis Journals, vol. 40(14), pages 1211-1222, December.
    • Handle: RePEc:taf:lpadxx:v:40:y:2017:i:14:p:1211-1222
    DOI: 10.1080/01900692.2017.1295266
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    Cited by:

    1. Isti Andini & Achmad Djunaedi & Deva Fosterharoldas Swasto & Ahmad Sarwadi, 2021. "White Misconducts: Informal Acts in Crossborder Primary Health Service Delivery (Case of Panggang, Central Java, Indonesia)," International Journal of Research and Scientific Innovation, International Journal of Research and Scientific Innovation (IJRSI), vol. 8(12), pages 83-89, December.

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