The European Union: A Politically Incorrect View

Alberto Alesina and Roberto Perotti ()

No 10342, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper, we present our view of the recent evolution of European integration. We first briefly describe the main features of the institution and decision making process in the European Union, with particular attention to the debate between federalists and super nationalists. We then identify two key issues in the process of European integration: 1) an emphasis on institutional balance' based on a complex web of institutions with overlapping jurisdiction; 2) A conflict between a dirigiste versus a more laissez faire approach to government. We argue that the first problem leads to a lack of clarity in the allocation of powers between European institutions, confusion in the allocation of prerogatives between national governments and EU institutions, and lack of transparency and accountability. This dirigiste culture produces verbose rhetoric, which moves the European policy debate in the wrong direction. We then study how these problems play out in four important areas: employment policies, culture and scientific research, foreign and defense policies, and fiscal policy. Finally, we study the implications of the recently proposed European Constitution as a potential solution of these two problems.

JEL-codes: E0 H0 (search for similar items in EconPapers)
Date: 2004-03
New Economics Papers: this item is included in nep-eec, nep-mac, nep-pke and nep-pol
Note: EFG ME PE
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (58)

Published as Alesina, Alberto and Roberto Perotti. "The European Union: A Politically Incorrect View," Journal of Economic Perspectives, 2004, v18(4,Fall), 27-48.

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Journal Article: The European Union: A Politically Incorrect View (2004)
Working Paper: The European Union: A Politically Incorrect View (2004)
Working Paper: The European Union: A Politically Incorrect View (2004)
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