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Publications

Working Papers
Academic Year 2002-2003


European Integration and National Social Citizenship: Changing Boundaries, New Structuring? (134kb .pdf file)
Maurizio Ferrera, Professor, Department of Political and Social Studies, University of Pavia, Italy
June 1, 2003

With the creation of EMU, European Welfare States have entered a new phase of development. The margins for manoeuvring public budgets have substantially decreased, while the unfolding of the four freedoms of movement within the EU have seriously weakened the traditional coercive monopoly of the state on actors and resources that are crucial for the stability of redistributive institutions. The article explores these issues adopting a Rokkanian perspective, i.e. building on Rokkan’s pioneering insights on the nexus between boundary building and internal structuring.

The first part of the paper briefly presents the theoretical perspective. The second part sketches the development of national welfare institutions from their origin up to the early 1970s, discussing their implications in terms of boundary building and internal structuring. The third part describes the challenges that have emerged in the last couple of decades to the “social sovereignty” of the nation state: challenges that are largely linked to the process of European integration, but that are partly reinforced by endogenous developments as well. The final part offers some more speculative remarks of the potential de-structuring of the traditional architecture of social protection, with some hints at cross-national variations and possible developments at the EU level.

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Institutions for Fiscal Stability (Prepared for the Munich Economic Summit, 2-3 May 2003) (333kb .pdf file)
Barry Eichengreen, George C. Pardee and Helen N. Pardee Professor of Economics and Political Science; Director, Institute of European Studies, University of California, Berkeley
May 3, 2003

This paper reviews the controversy over Europe’s Stability and Growth Pact and offers a proposal for its reform. It argues that Europe would be best served by focusing on the fundamental problems for fiscal policy — public enterprises that are too big to fail, unfunded public pension schemes that are too big to ignore, inefficient and costly labor market and social welfare problems, and budget making institutions that create common pool and free-rider problems — rather than on arbitrary numerical indicators like whether the budget deficit is above or below 3 per cent of GDP. It proposes defining an index of institutional reform with, say, a point for pension reform, a point for labor market reform, and a point for revenue sharing reform. Countries receiving three points would be exempt from the Pact’s numerical guidelines, since there is no reason to think that they will be prone to chronic deficits. The others, whose weak institutions render them susceptible to chronic deficits, would in contrast still be subject to its warnings, sanctions and fines.

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Whither Europe? (210kb .pdf file)
Barry Eichengreen, George C. Pardee and Helen N. Pardee Professor of Economics and Political Science; Director, Institute of European Studies, University of California, Berkeley
May 2003

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Fundamentalist Terrorism -- The Assault on the Symbols of Secular Power (48kb .pdf file)
Jost Halfmann, Professor of Sociology, Institute of Sociology, University of Dresden. Visiting Professor, Dept. of International and Area Studies, UC Berkeley
April 17, 2003

Jost Halfmann argues that fundamentalist terrorism is an extreme expression of protest against the separation of state and religion; this form of protest is motivated by a utopian vision of society as a community of the faithful. The protest against secular states arises in states with forced modernization politics (such as Iran or Egypt), but also in states which base national identity on religion (such as Israel) and in states with high popular religiosity (such as the US). The terrorist form of protest exhibits an extreme form of self-ascribed marginality. Terrorism seems to be the only expression of protest when the enemy is considered overwhelmingly powerful, the struggle must, however, not be lost. Fundamentalist terrorists view themselves as being engaged in a cosmic war enforced on them by the enemy. Terrorist assaults are, therefore, symbolic acts of violence against symbols of the enemy's power to demonstrate emporarily the enemy's weakness.

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The Euro-Med Partnership and Sub Regionalism: A Case of Region Building? (325kb .pdf file)
Stephen C. Calleya, Deputy Director and Senior Lecturer of International Relations at the Mediterranean Academy of Diplomatic Studies, University of Malta
February 4, 2003

In emphasising the significance of international regions as an intermediate level of analysis between the nation-state and the global international system, this research paper seeks to assist in identifying the changes taking place in Euro-Mediterranean international relations at the start of the twenty-first century and the potential for future cooperation in the Mediterranean basin. Are the obstacles blocking regionalism across the Mediterranean insurmountable? What can be done to trigger sub regional cooperation? What time-frames should be adopted to carry out the necessary political changes to cope with regional demands? Should there be a more concerted effort to institutionalise regional relations? This is probably an essential measure if regional working programmes are to be implemented in the foreseeable future. Since the end of the Cold War, regionalism has been carried forward by the most powerful states as a means of promoting their own interests. Governments have recognised that regionalism is an effective political tool that can assist in the management of domestic and external pressures.

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Why Has There Been Less Financial Integration in Asia Than in Europe? (318kb .pdf file)
Barry Eichengreen, George C. Pardee and Helen N. Pardee Professor of Economics and Political Science; Director, Institute of European Studies, University of California, Berkeley; and Yung Chul Park, Korea University
January 2003

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Tax Reforms and "Modell Deutschland": Lessons from Four Years of Red-Green Tax-Policy (345kb .pdf file)
Achim Truger and Wade Jacoby
December 9, 2002

When the red-green (SPD-Bündnis90/DieGrünen) coalition took over the federal government from the Christian-Democrat/Free-Democrat (CDU/CSU/FDP) coalition in 1998, tax reforms had a very high political priority. And, in fact, the government pushed through an astonishing number of far-reaching tax reforms/tax changes within a period of little more than two years. This paper follows two aims. First, it gives a short description of the measures taken and evaluates them with respect to tax theory and the German tax reform debate of the 1990s. Second, it explicitly addresses the question whether the tax changes were influenced by the wish to reform the Modell Deutschland, i.e. whether something substantial was done to change Germany´s status as a perceived high tax country and if so, whether the attempt was successful. It will be shown that even though the problem of high taxes might have been many observers´ and, indeed, also the government´s dominant concern, there was much more to the German debate. The chapter will also ask whether generously cutting taxes was the right thing to do. It demonstrates that under Germany´s peculiar economic and institutional circumstances at the end of the 1990s, the attempt to cut taxes led to serious problems for fiscal policy, growth, and employment.

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Back to the Nest? Europe’s Relations with the African, Caribbean and Pacific Group of Countries (358kb .pdf file)
John Ravenhill, Chair of Politics, University of Edinburgh
December 1, 2002

Europe’s association with African, Caribbean and Pacific (ACP) countries was the first of its interregional relationships. In the nearly half century since the signature of the Treaty of Rome, it developed into Europe’s most institutionalized and multidimensional interregional relationship. It embraces not only trade and investment issues but also a development “partnership” that includes what has traditionally been the EU’s largest single aid program, a joint parliamentary assembly, meetings of organizations representing civil society, and a dialogue on human rights. This chapter examines the factors that have shaped this relationship over the last four decades. The principal focus is on the trade regime, not just for consistency with the other contributions to this volume but also because it is in its trade dimension that the relationship has changed most dramatically over time.

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The Development of Europe’s Linkages with East Asia: Hybrid Trans-Regionalism? (354kb .pdf file)
Julie Gilson, Lecturer in Japanese Studies at the University of Birmingham Deputy Director of Asian Studies, University of Birmingham
December 1, 2002

This chapter argues that the EU-Asia trans-regional relationship is still very hard to measure but that there is developing both a notion of economic Asia, a desire to collectivise responses in the face of differentiated resource allocation and a growing dominance of the form of regionalism demonstrated by the EU.

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Lessons of the Euro for the Rest of the World (221kb .pdf file)
Barry Eichengreen, George C. Pardee and Helen N. Pardee Professor of Economics and Political Science; Director, Institute of European Studies, University of California, Berkeley
December 1, 2002

Europe’s single currency is widely invoked as a potential solution to the monetary and exchange rate problems of other regions, including Asia, Latin America, North America and even Africa. This lecture asks whether the Europe’s experience in creating the euro is exportable. It argues that the single currency is the result of a larger integrationist project that has political as well as economic dimensions. The appetite for political integration being less in other parts of the world, the euro will not be easily emulated. Other regions will have to find different means of addressing the tension between domestic monetary autonomy and regional integration. Harmonized inflation targeting may be the best available solution.

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The Worried Friend, or: Hegemony vs. Globalization (164kb .pdf file)
Claus Leggewie, Professor of Political Science, Giessen University
November 8, 2002

How real is American hegemony, given that only a few years ago talk about the decline of American power dominated discussion? How do allied states deal with a superpower that is no longer so benign? Does the United States still provide security for Western Europe and the rest of the world at all? And is a transnational world in need of Pax Americana, or what should, from a European and transatlantic perspective, take its place?

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The European Union’s Trade Policy towards MERCOSUR (241kb .pdf file)
Jörg Faust, Institut für Politikwissenschaft, Johannes Gutenberg-Universität Mainz
November 2, 2002

Interregional relations between the European Union and MERCOSUR reflect a general trend of governments and firms to institutionalise their relations not only within but also across regions. As the global liberalization process within the WTO has been stagnating in recent years, transregional strategies have become attractive as next-best strategies. Against this background, the following analysis focuses on the institutional development of EU-MERCOSUR relations and the driving forces behind this development from a European perspective. This, because shedding some light on the political economy of relations between two of the most ambitious integration mechanisms of the 1990s should deepen our understanding of the forces shaping the growing importance of transregional and interregional trade relations. Rather than trying to explain the course of EU-MERCOSUR relations by one dominant hypothesis, I make an appeal for a multi-causal framework, highlighting three aspects of particular importance from a bottom up perspective. Firstly, one can observe that the interplay of economic interest groups has strongly influenced the course of interregional institutionalisation between the EU and MERCOSUR. ) Secondly, political actors have not acted as mere agents of private interest but also have followed their own political agendas. Thirdly, the European Union’s interregional trade strategy towards MERCOSUR has not been independent of the international context.

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What Ever Happened to Portuguese Euroscepticism? The Depolicitization of Europe and its Consequences (376kb .pdf file)
Pedro C. Magalhães, Instituto de Ciências Sociais da Universidade de Lisboa
November 2, 2002

In the following sections, I will argue that although opinions about Portuguese membership in the EU have ceased to play a crucial role both in party appeals and electoral behavior, that is not the case in what concerns their impact on other forms of political behavior and attitudes. More specifically, I will suggest that the decline in electoral turnout currently experienced in Portugal, particularly since 1995, cannot be fully understood with exploring the combination between resilient Euroscepticism among a minority of the population and the depoliticization of Europe at the level of political élites. Furthermore, I will also suggest that, under the present conditions, anti-Europeanism may have developed into a more permanent and disturbing set of political attitudes of mistrust in, and disengagement from, domestic political institutions.

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Where is Portuguese Agriculture Headed? An Analysis of the Common Agricultural Policy (290kb .pdf file)
Dulce Freire, Universidade Nova de Lisboa, Centro de Estudos de Etnologia Portuguesa
Faculdade de Ciências Sociais e Humanas; and Shawn Parkhurst, University of Louisville, Humanities Division
November 2, 2002

In the first part of this paper we analyze the conditions in of a shifting emphasis from the politics of prices to a social-structural policy. We also ask how well the CAP has adjusted to the ecological and social characteristics of the countries of southern Europe and whether it has actually supported the agriculture and rural citizens of these countries. In the second part of the paper, we present some of the results of the application of the CAP in Portugal, and discuss what role agriculture might have in developing the rural sections of the country. Broadly, our goal is to determine to what extent attempts to shift the CAP’s focus from agriculture to the rural world and from productivity to quality can benefit Portugal and the other countries of southern Europe. Different countries and interest groups received the intercalary revision with a varying mixture of fear, caution and hope, and have opened a serious debate. Our paper is a contribution to this debate.

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The Uneasy Triangle (212kb .pdf file)
Lloyd Ulman, Professor of Economics and Industrial Relations, Emeritus, University of California, Berkeley; and Knut Gerlach, Professor of Labor Economics, Institute of Quantitative Economic Research, Faculty of Economics, University of Hannover
November 1, 2002

"…It is impossible for any community to have very full employment and completely free collective bargaining and stable prices. Either one of the three will be completely sacrificed, or else all three will have to be modified.

"…In the last resort the answer will be given not by economists or by administrators but by the public opinion. At each corner of the triangle, the limiting factor is what public opinion will stand, and the degree of comprehension that public opinion will show for an economic policy that tries to preserve balance between competing objectives."
-- The Economist, August-October, 1952: 376, 435

Can Germany in the 1990s provide a contemporary example of the “uneasy triangle” posited by The Economist in the early 1950s? As the millennium approached, Germany’s inflation rate was very low; its unemployment rate unacceptably high; and its system of collective bargaining arguably the strongest to be found in any major industrial country. Public opinion appears to have played a more limiting role in the first of these corners of Germany’s triangles than in the other two.

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The European Union and North America (303kb .pdf file)
Edward A. Fogarty, Department of Political Science, University of California, Berkeley
October 19, 2002

This paper assesses the past, present, and future of transatlantic commercial relations in terms of EU trade strategies. After surveying the medium-term trajectories of the relationships with the United States, Mexico, and Canada -- both separately and as a group -- it will consider several possible sources of European Union trade preferences vis-à-vis NAFTA, including interest groups’ incentives to seek to capture national and European governing institutions, the balance between the European Commission and the Council of Ministers, European leaders’ desire to balance against overweening American power, and possible attempts to construct either a common Western identity or, alternatively, a European identity in contradistinction what the United States seems to represent. The hope is that these different approaches provide a contrasting set of interpretations whose comparison side-by-side allows new insights into the dynamics governing EU-North American trade relations.

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