Why differentiated integration is such a common practice in Europe: A rational explanation
Katharina Holzinger and
Journal of Theoretical Politics, 2019, vol. 31, issue 4, 642-659
With Brexit imminent, the debate on the need for differentiated integration (DI) by means of opting-out has gained new momentum. At the same time, non-member states decide to adopt European Union (EU) rules as exemplified by the European Neighbourhood Policy. In light of these opposing observations, we examine the EUâ€™s disposition to supply DI. We outline the strategic interactions of the EU member states or non-members in the context of two forms of DI: opting-out and inducing-in. In the case of opting-out, EU member states can refrain from adopting EU rules; inducing-in refers to providing non-member states with incentives to adopt EU rules. We show that the information asymmetries inherent to the strategic interactions result in a situation in which the EU is likely to supply opportunities to opt-out for member states to a much greater extent than necessary. Furthermore, the EU is likely to offer more compensation to non-member states in exchange for adopting EU rules than it would actually need to.
Keywords: Differentiated integration; European Union; inducing-in; opting-out; signalling game (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jothpo:v:31:y:2019:i:4:p:642-659
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