IDEAS home Printed from https://ideas.repec.org/p/use/tkiwps/1809.html
   My bibliography  Save this paper

Enlargement and Exit:: The Origins of Article 50

Author

Listed:
  • M. Huysmans

Abstract

Many international organizations and the vast majority of federations lack exit clauses. Existing theoretical explanations of this stylized fact focus on issues of credible commitment, signaling, and the risk of strategic exploitation. However, such accounts are unable to explain the adoption by the European Union (EU) of Article 50, which allows withdrawal. I theorize and demonstrate empirically that in the case of the EU, an exit-voice logic lies at its origin during the 2002-2003 European Convention. As a protection to undesired policy changes post entry, countries of the 2004 Eastern accession demanded an exit right. Underlying the fear for policy changes was their much lower level of economic development and corresponding differences in policy preferences. As a mirror image, rich outliers like the UK and Denmark also supported Article 50, which likely contributed to its final adoption through the Treaty of Lisbon.

Suggested Citation

  • M. Huysmans, 2018. "Enlargement and Exit:: The Origins of Article 50," Working Papers 18-09, Utrecht School of Economics.
    • Handle: RePEc:use:tkiwps:1809
    as

    Download full text from publisher

    File URL: https://dspace.library.uu.nl/bitstream/handle/1874/374926/18_09.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gordon Tullock, 1969. "Federalism: Problems of scale," Public Choice, Springer, vol. 6(1), pages 19-29, March.
    2. Christophe Crombez & Simon Hix, 2011. "Treaty reform and the Commission’s appointment and policy-making role in the European Union," European Union Politics, , vol. 12(3), pages 291-314, September.
    3. Mark A. Pollack, 2000. "The End of Creeping Competence? EU Policy‐Making Since Maastricht," Journal of Common Market Studies, Wiley Blackwell, vol. 38(3), pages 519-538, September.
    4. Rainer, Helmut, 2007. "Should we write prenuptial contracts?," European Economic Review, Elsevier, vol. 51(2), pages 337-363, February.
    5. repec:bla:jcmkts:v:46:y:2008:i::p:337-363 is not listed on IDEAS
    6. Athanassiou, Phoebus, 2009. "Withdrawal and expulsion from the EU and EMU: some reflections," Legal Working Paper Series 10, European Central Bank.
    7. Kathryn E. Spier, 1992. "Incomplete Contracts and Signalling," RAND Journal of Economics, The RAND Corporation, vol. 23(3), pages 432-443, Autumn.
    8. Yan Chen & Peter Ordeshook, 1994. "Constitutional secession clauses," Constitutional Political Economy, Springer, vol. 5(1), pages 45-60, December.
    9. James M. Buchanan, 1991. "An American Perspective on Europe's Constitutional Opportunity," Cato Journal, Cato Journal, Cato Institute, vol. 10(3), pages 619-629, Winter.
    10. Stefanie Bailer & Mikko Mattila & Gerald Schneider, 2015. "Money Makes the EU Go Round: The Objective Foundations of Conflict in the Council of Ministers," Journal of Common Market Studies, Wiley Blackwell, vol. 53(3), pages 437-456, May.
    11. Bordignon, Massimo & Brusco, Sandro, 2001. "Optimal secession rules," European Economic Review, Elsevier, vol. 45(10), pages 1811-1834, December.
    12. Buchanan, James M & Faith, Roger L, 1987. "Secession and the Limits of Taxation: Toward a Theory of Internal Exit," American Economic Review, American Economic Association, vol. 77(5), pages 1023-1031, December.
    13. Giovanni Maggi & Massimo Morelli, 2006. "Self-Enforcing Voting in International Organizations," American Economic Review, American Economic Association, vol. 96(4), pages 1137-1158, September.
    14. Vaubel, Roland, 2002. "Die Politische Ökonomie des Europäischen Verfassungskonvents," Wirtschaftsdienst – Zeitschrift für Wirtschaftspolitik (1949 - 2007), ZBW - Leibniz Information Centre for Economics, vol. 82(10), pages 636-640.
    15. Steven Van Hecke, 2012. "Polity-Building in the Constitutional Convention: Transnational Party Groups in European Union Institutional Reform," Journal of Common Market Studies, Wiley Blackwell, vol. 50(5), pages 837-852, September.
    16. Jonathan B. Slapin, 2009. "Exit, Voice, and Cooperation: Bargaining Power in International Organizations and Federal Systems," Journal of Theoretical Politics, , vol. 21(2), pages 187-211, April.
    17. Putnam, Robert D., 1988. "Diplomacy and domestic politics: the logic of two-level games," International Organization, Cambridge University Press, vol. 42(3), pages 427-460, July.
    18. Crombez, Christophe & Hix, Simon, 2015. "Legislative Activity and Gridlock in the European Union," British Journal of Political Science, Cambridge University Press, vol. 45(3), pages 477-499, July.
    19. Rosendorff, B. Peter & Milner, Helen V., 2001. "The Optimal Design of International Trade Institutions: Uncertainty and Escape," International Organization, Cambridge University Press, vol. 55(4), pages 829-857, October.
    20. Hug, Simon & König, Thomas, 2002. "In View of Ratification: Governmental Preferences and Domestic Constraints at the Amsterdam Intergovernmental Conference," International Organization, Cambridge University Press, vol. 56(2), pages 447-476, April.
    21. Thomas Apolte, 1997. "Secession Clauses: A Tool for the Taming of an Arising Leviathan in Brussels?," Constitutional Political Economy, Springer, vol. 8(1), pages 57-70, March.
    22. Thomas König & Stephanie Daimer & Daniel Finke, 2008. "The Treaty Reform of the EU: Constitutional Agenda‐Setting, Intergovernmental Bargains and the Presidency's Crisis Management of Ratification Failure," Journal of Common Market Studies, Wiley Blackwell, vol. 46(2), pages 337-363, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martijn Huysmans, 2019. "Enlargement and exit: The origins of Article 50," European Union Politics, , vol. 20(2), pages 155-175, June.
    2. Martijn Huysmans, 2018. "Heterogeneity, Vetoes, and Exit Clauses in Federal Systems," CESifo Working Paper Series 7178, CESifo.
    3. Martijn Huysmans & Christophe Crombez, 2020. "Making exit costly but efficient: the political economy of exit clauses and secession," Constitutional Political Economy, Springer, vol. 31(1), pages 89-110, March.
    4. Bordignon, Massimo & Brusco, Sandro, 2001. "Optimal secession rules," European Economic Review, Elsevier, vol. 45(10), pages 1811-1834, December.
    5. Gradstein, Mark, 2004. "Political Bargaining in a Federation: Buchanan meets Coase," CEPR Discussion Papers 4188, C.E.P.R. Discussion Papers.
    6. Libman, Alexander Mikhailovich, 2009. "Эндогенные Границы И Распределение Власти В Федерациях И Международных Сообществах [ENDOGENOUS BOUNDARIES AND DISTRIBUTION OF POWER In the Federation]," MPRA Paper 16473, University Library of Munich, Germany.
    7. Apolte Thomas, 2018. "Sezessionsklauseln: Ein Instrument zur Förderung von Freiheit und Wohlstand?," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 69(1), pages 366-382, July.
    8. Jeffry Frieden & Stefanie Walter, 2019. "Analyzing inter-state negotiations in the Eurozone crisis and beyond," European Union Politics, , vol. 20(1), pages 134-151, March.
    9. Grégoire Rota Graziosi, 2009. "On the Strategic Use of Representative Democracy in International Agreements," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(2), pages 281-296, April.
    10. Daniel Finke, 2017. "Underneath the culture of consensus: Transparency, credible commitments and voting in the Council of Ministers," European Union Politics, , vol. 18(3), pages 339-361, September.
    11. Eerola Essi & Määttänen Niku & Poutvaara Panu, 2004. "Citizens Should Vote on Secession," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-22, October.
    12. Philippe van Gruisen & Martijn Huysmans, 2020. "The Early Warning System and policymaking in the European Union," European Union Politics, , vol. 21(3), pages 451-473, September.
    13. Kumar, Vikas, 2011. "Negotiating constitutions for political unions," International Review of Law and Economics, Elsevier, vol. 31(1), pages 58-76, March.
    14. Gerald Schneider & Daniel Finke & Stefanie Bailer, 2010. "Bargaining Power in the European Union: An Evaluation of Competing Game‐Theoretic Models," Political Studies, Political Studies Association, vol. 58(1), pages 85-103, February.
    15. Fabio Franchino & Camilla Mariotto, 2021. "Noncompliance risk, asymmetric power and the design of enforcement of the European economic governance," European Union Politics, , vol. 22(4), pages 591-610, December.
    16. Rohner, Dominic & Esteban, Joan & Flamand, Sabine & Morelli, Massimo, 2018. "A Dynamic Theory of Secession," CEPR Discussion Papers 12398, C.E.P.R. Discussion Papers.
    17. Leonardo Baccini, 2010. "Explaining formation and design of EU trade agreements: The role of transparency and flexibility," European Union Politics, , vol. 11(2), pages 195-217, June.
    18. Barbara Dluhosch & Nikolai Ziegler, 2011. "The paradox of weakness in the politics of trade integration," Constitutional Political Economy, Springer, vol. 22(4), pages 325-354, December.
    19. Thomas Apolte, 1997. "Secession Clauses: A Tool for the Taming of an Arising Leviathan in Brussels?," Constitutional Political Economy, Springer, vol. 8(1), pages 57-70, March.
    20. Grégoire Rota Graziosi, 2004. "La fragmentation politique, une revue de la littérature," Revue Française d'Économie, Programme National Persée, vol. 18(4), pages 193-223.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:use:tkiwps:1809. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marina Muilwijk (email available below). General contact details of provider: https://edirc.repec.org/data/eiruunl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.