Hostname: page-component-cd9895bd7-hc48f Total loading time: 0 Render date: 2024-12-24T17:47:13.242Z Has data issue: false hasContentIssue false
  • English
  • Français

Embeddedness and Regional Integration: Waiting for Polanyi in a Hayekian Setting

Published online by Cambridge University Press:  13 July 2012

Martin Höpner  and
Armin Schäfer
Get access

Abstract

This article analyzes the social potential of regional integration processes by using the example of European integration. Recent case law from the European Court of Justice has led some observers to argue that judicial decisions increasingly provide European politics with a “Polanyian” drive. We test this claim by distinguishing three dimensions to European economic and social integration: market-restricting integration, market-enforcing integration, and the creation of a European area of nondiscrimination. We also identify two forms of integration that have different speeds, scopes, and potentials: political integration and judicial integration. The evidence shows that the EU has come closer to Hayek's vision of “interstate federalism” than is usually warranted because market-enforcing integration and European nondiscrimination policies have asymmetrically profited from “integration through law.” The opportunities for international courts to push ahead market-enforcing integration increase as the participants of regional integration processes become more diverse. In such “Hayekian” constellations, individual rights are increasingly relocated to the central level, at the cost of subordinating the decentralized capacity for solidarity and interpersonal redistribution.

Type
Research Article
Information
International Organization , Volume 66 , Issue 3 , July 2012 , pp. 429 - 455
Copyright
Copyright © The IO Foundation 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Alber, Jens. 2006. The European Social Model and the United States. European Union Politics 7 (3):393–419.CrossRefGoogle Scholar
Alesina, Alberto, and Wacziarg, Romain. 1999. Is Europe Going Too Far? Carnegie-Rochester Conference Series on Public Policy 51 (1):1–42.Google Scholar
Alter, Karen J. 2001. Establishing the Supremacy of European Law. The Making of an International Rule of Law in Europe. Oxford, UK: Oxford University Press.Google Scholar
Alter, Karen J. 2009. The European Court's Political Power. Selected Essays. Oxford, UK: Oxford University Press.CrossRefGoogle Scholar
Alter, Karen J., and Helfer, Laurence R.. 2010. Nature or Nurture? Judicial Lawmaking in the European Court of Justice and the Andean Tribunal of Justice. International Organization 64 (4):563–92.CrossRefGoogle Scholar
Anderson, Perry. 2009. The New Old World. London: Verso.Google Scholar
Bellamy, Richard. 2009. The Liberty of the Post-Moderns? Market and Civic Freedom Within the EU. Working Paper 1/2009. London: London School of Economics and Political Science. Available at ⟨http://eprints.ucl.ac.uk/19019/1/19019.pdf⟩. Accessed 25 April 2012.Google Scholar
Beramendi, Pablo. 2007. Inequality and the Territorial Fragmentation of Solidarity. International Organization 61 (4):783–820.CrossRefGoogle Scholar
Berezin, Mabel. 2009. Illiberal Politics in Neoliberal Times. Culture, Security and Populism in the New Europe. New York: Cambridge University Press.Google Scholar
Blauberger, Michael, and Töller, Annette E.. 2011. Competition Policy. In Policies Within the EU Multi-Level System. Instruments and Strategies of European Governance, edited by Heinelt, Hubert and Knodt, Michèle, 123–52. Baden-Baden, Germany: Nomos.CrossRefGoogle Scholar
Block, Fred, and Somers, Margaret R.. 1984. Beyond the Economistic Fallacy: The Holistic Social Science of Karl Polanyi. In Vision and Method in Historical Sociology, edited by Skocpol, Theda, 47–85. New York: Cambridge University Press.CrossRefGoogle Scholar
Brinegar, Adam P., and Jolly, Seth K.. 2005. Location, Location, Location. National Contextual Factors and Public Support for European Integration. European Union Politics 6 (2):155–80.CrossRefGoogle Scholar
Brunell, Thomas L., and Stone Sweet, Alec. 2010. Overriding the European Court of Justice? Qualitative Evidence from Cases in the Carruba, Gabel, and Hankla Dataset (1987–1997). Working Paper 217. New Haven, Conn.: Yale Law School.Google Scholar
Buchanan, James M. 1995. Federalism As an Ideal Political Order and an Objective for Constitutional Reform. Publius 25 (2):19–28.Google Scholar
Buchanan, James M. 1995/1996. Federalism and Individual Sovereignty. Cato Journal 15 (2-3):259–68.Google Scholar
Caporaso, James A., and Tarrow, Sidney. 2009. Polanyi in Brussels: Supranational Institutions and the Transnational Embedding of Markets. International Organization 63 (4):593–620.CrossRefGoogle Scholar
Carrubba, Clifford J., and Murrah, Lacey. 2005. Legal Integration and the Use of the Preliminary Ruling Process in the European Union. International Organization 59 (2):399–418.Google Scholar
Charnovitz, Steve. 2001. The WTO and the Rights of the Individual. Intereconomics 36 (2):98–108.Google Scholar
Dale, Gareth. 2008. Karl Polanyi's “The Great Transformation”: Perverse Effects, Protectionism and “Gemeinschaft.” Economy and Society 37 (4):495–524.CrossRefGoogle Scholar
Dammann, Jens C. 2003. The Future of Codetermination After Centros: Will German Corporate Law Move Closer to the U.S. Model? Fordham Journal of Corporate and Financial Law 8 (2):607–86.Google Scholar
Deakin, Simon. 2009. Reflexive Governance and European Company Law. European Law Journal 15 (2):224–45.Google Scholar
Dyevre, Arthur. 2010. Unifying the Field of Comparative Judicial Politics: Towards a General Theory of Judicial Behaviour. European Political Science Review 2 (2):297–327.CrossRefGoogle Scholar
Ebner, Alexander. 2011. Transnational Markets and the Polanyi Problem. In Karl Polanyi, Globalisation and the Potential of Law in Transnational Markets, edited by Joerges, Christian and Falke, Josef, 19–41. Oxford, UK: Hart.Google Scholar
Eichenberg, Richard C., and Dalton, Russell J.. 2007. Post-Maastricht Blues. The Transformation of Citizen Support for European Integration, 1973–2004. Acta Politica 42 (2-3):128–52.CrossRefGoogle Scholar
Esping-Andersen, Gøsta. 1990. The Three Worlds of Welfare Capitalism. Cambridge, UK: Polity Press.Google Scholar
ETUC. 2010. Trade Unions and Industrial Relations in EU Countries. Brussels: European Trade Union Confederation. Available at ⟨http://www.etuc.org/IMG/pdf_TURKISH_4.pdf⟩. Accessed 25 April 2012.Google Scholar
Eurostat. 2008. Recent Migration Trends: Citizens of EU-27 Member States Become Ever More Mobile While EU Remains Attractive to Non-EU Citizens. Eurostat: Statistics in Focus 98/2008.Google Scholar
Eurostat. 2010a. Europe in Figures. Eurostat Yearbook 2010. Luxembourg: Eurostat.Google Scholar
Eurostat. 2010b. Taxation Trends in the European Union: Data for the EU Member States, Iceland and Norway. Luxembourg: Eurostat.Google Scholar
Falkner, Gerda. 1998. EU Social Policy in the 1990s: Towards a Corporatist Policy Community. London: Routledge.Google Scholar
Falkner, Gerda, Treib, Oliver, Hartlapp, Miriam, and Leiber, Simone, eds. 2005. Complying with Europe. EU Harmonization and Soft Law in the Member States. Cambridge, UK: Cambridge University Press.Google Scholar
Fligstein, Neil. 2008. Euroclash. The EU, European Identity, and the Future of Europe. Oxford, UK: Oxford University Press.Google Scholar
Ganghof, Steffen, and Genschel, Philipp. 2008. Taxation and Democracy in the EU. Journal of European Public Policy 15 (1):58–77.CrossRefGoogle Scholar
Genschel, Philipp, Kemmerling, Achim, and Seils, Eric. 2011. Accelerating Downhill: How the EU Shapes Corporate Tax Competition in the Single Market. Journal of Common Market Studies 49 (3):585–606.CrossRefGoogle Scholar
Goetschy, Janine. 1999. The European Employment Strategy: Genesis and Development. European Journal of Industrial Relations 5 (2):117–37.CrossRefGoogle Scholar
Graetz, Michael J., and Warren, Alvin C. Jr. 2006. Income Tax Discrimination and the Political and Economic Integration of Europe. Yale Law Journal 115 (6):1186–255.CrossRefGoogle Scholar
Hall, Peter A., and Soskice, David. 2001. An Introduction to Varieties of Capitalism. In Varieties of Capitalism. The Institutional Foundations of Comparative Advantage, edited by Hall, Peter A. and Soskice, David, 1–68. Oxford, UK: Oxford University Press.CrossRefGoogle Scholar
Hayek, Friedrich A. 1980 [1948]. The Economic Conditions of Interstate Federalism. In Individualism and Economic Order, edited by Hayek, Friedrich A., 255–72. Chicago: University of Chicago Press.Google Scholar
Heidenreich, Martin. 2009. The Open Method of Coordination: A Pathway to the Gradual Transformation of National Employment and Welfare Regimes? In Changing European Employment and Welfare Regimes: The Influence of the Open Method of Coordination on National Reforms, edited by Heidenreich, Martin and Zeitlin, Jonathan, 10–36. London: Routledge.Google Scholar
Hooghe, Liesbet, and Marks, Gary. 1999. The Making of a Polity: The Struggle Over European Integration. In Continuity and Change in Contemporary Capitalism, edited by Kitschelt, Herbert, Lange, Peter, Marks, Gary, and Stephens, John D., 70–97. Cambridge, UK: Cambridge University Press.Google Scholar
Hooghe, Liesbet, and Marks, Gary. 2009. A Postfunctionalist Theory of European Integration: From Permissive Consensus to Constraining Dissensus. British Journal of Political Science 39 (1):1–23.CrossRefGoogle Scholar
Höpner, Martin. 2011. Der europäische Gerichtshof als Motor der europäischen Integration: Eine akteursbezogene Erklärung. Berliner Journal für Soziologie 21 (2):203–29.CrossRefGoogle Scholar
Höpner, Martin, and Schäfer, Armin. 2010. A New Phase of European Integration: Organised Capitalisms in Post-Ricardian Europe. West European Politics 33 (2):344–68.CrossRefGoogle Scholar
Joerges, Christian, and Rödl, Florian. 2009. Informal Politics, Formalised Law and the ‘Social Deficit’ of European Integration: Reflections after the Judgments of the ECJ in “Viking” and “Laval.” European Law Journal 15 (1):1–19.Google Scholar
Kilpatrick, Claire. 2009. Laval's Regulatory Conundrum: Collective Standard-Setting and the Court's New Approach to Posted Workers. European Law Review 34 (6):844–65.Google Scholar
Kriesi, Hanspeter, Grande, Edgar, Lachat, Romain, Dolezal, Martin, Bornschier, Simon, and Frey, Timotheos. 2008. West European Politics in the Age of Globalization. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Kröger, Sandra. 2009. The Open Method of Coordination: Underconceptualisation, Overdetermination, De-politicisation and Beyond. European Integration Online Papers 13 (special issue 1). Available at ⟨http://eiop.or.at/eiop/texte/EIoP_2009_SpecIssue_1.pdf⟩. Accessed 25 April 2012.Google Scholar
Leibfried, Stephan, and Pierson, Paul. 1995. Semisovereign Welfare States: Social Policy in a Multitiered Europe. In European Social Policy. Between Fragmentation and Integration, edited by Leibfried, Stephan and Pierson, Paul, 43–77. Washington, D.C.: Brookings Institution.Google Scholar
Leibfried, Stephan, and Pierson, Paul. 2000. Social Policy. Left to Courts and Markets? In Policy-Making in the European Union, 4th ed., edited by Wallace, Helen and Wallace, William, 267–92. Oxford, UK: Oxford University Press.Google Scholar
Maduro, Miguel Poiares. 1998. We, the Court. The European Court of Justice and the European Economic Constitution. A Critical Reading of Article 30 of the EC Treaty. Oxford, UK: Hart.Google Scholar
Majone, Giandomenico. 2005. Dilemmas of European Integration. The Ambiguities and Pitfalls of Integration by Stealth. Oxford, UK: Oxford University Press.Google Scholar
Martinsen, Dorte Sindbjerg. 2009. Conflict and Conflict Management in the Cross-Border Provision of Healthcare Services. West European Politics 32 (4):792–809.Google Scholar
McLaren, Lauren. 2007. Explaining Mass-Level Euroskepticism: Identity, Interests, and Institutional Distrust. Acta Politica 42 (2-3):233–51.CrossRefGoogle Scholar
Menéndez, Augustín José. 2009. European Citizenship After Martínez Sala and Baumbast. Has European Law Become More Human but Less Social? Working Paper 2009/05. Oslo: Centre for European Studies, University of Oslo. Available at ⟨http://www.reconproject.eu/main.php/RECON_wp_0905.pdf?fileitem=5456218⟩. Accessed 25 April 2012.Google Scholar
Obermaier, Andreas J. 2008. The National Judiciary—Sword of European Court of Justice Rulings: The Example of the Kohll/Decker Jurisprudence. European Law Journal 14 (6):735–52.Google Scholar
Persson, Torsten, and Tabellini, Guido. 2003. The Economic Effects of Constitutions. Cambridge, Mass.: MIT Press.Google Scholar
Polanyi, Karl. 1957. The Great Transformation. The Political and Economic Origins of Our Time. Boston: Beacon Press.Google Scholar
Pollack, Mark A. 1997. Delegation, Agency, and Agenda Setting in the European Community. International Organization 51 (1):99–134.Google Scholar
Pütz, Lasse, and Sick, Sebastian. 2011. Der deutschen Unternehmensmitbestimmung entzogen: Die Zahl der Unternehmen mit ausländischer Rechtsform wächst. WSI-Mitteilungen 64 (1):34–40.CrossRefGoogle Scholar
Ray, Leonard. 2004. Don't Rock the Boat: Expectations, Fears, and Opposition to EU-Level Policy-Making. In European Integration and Political Conflict, edited by Marks, Gary and Steenbergen, Marco R., 51–61. Cambridge, UK: Cambridge University Press.CrossRefGoogle Scholar
Rodden, Jonathan. 2003. Reviving Leviathan: Fiscal Federalism and the Growth of Government. International Organization 57 (4):695–729.CrossRefGoogle Scholar
Ruggie, John Gerard. 1982. International Regimes, Transactions, and Change: Embedded Liberalism in the Postwar Economic Order. International Organization 36 (2):379–415.CrossRefGoogle Scholar
Schäfer, Armin. 2006. A New Form of Governance? Comparing the Open Method of Co-ordination to Multilateral Surveillance by the IMF and the OECD. Journal of European Public Policy 13 (1):70–88.Google Scholar
Schäfer, Armin, and Leiber, Simone. 2009. The Double Voluntarism in EU Social Dialogue and Employment Policy. European Integration Online Papers 13 (Special issue 1): Art. 9. Available at ⟨http://eiop.or.at/eiop/texte/2009-009a.htm⟩. Accessed 25 April 2012.Google Scholar
Scharpf, Fritz W. 1988. The Joint-Decision Trap: Lessons from German Federalism and European Integration. Public Administration 66 (3):239–78.Google Scholar
Scharpf, Fritz W. 1994. Community and Autonomy: Multilevel Policy-Making in the European Union. Journal of European Public Policy 1 (2):219–42.CrossRefGoogle Scholar
Scharpf, Fritz W. 1999. Governing in Europe: Effective and Democratic? New York: Oxford University Press.CrossRefGoogle Scholar
Scharpf, Fritz W. 2006. The Joint-Decision Trap Revisited. Journal of Common Market Studies 44 (4):845–64.CrossRefGoogle Scholar
Scharpf, Fritz W. 2008. Individualrechte gegen nationale Solidarität. In Die Politische Ökonomie der europäischen Integration, edited by Höpner, Martin and Schäfer, Armin, 89–99. Frankfurt: Campus.Google Scholar
Scharpf, Fritz W. 2009. The Double Asymmetry of European Integration. Or: Why the EU Cannot Be a Social Market Economy. Working Paper 2009/12. Cologne, Germany: Max Planck Institute for the Study of Societies.Google Scholar
Schmidt, Susanne K. 2009. When Efficiency Results in Redistribution: The Conflict Over the Single Services Market. West European Politics 32 (4):847–65.Google Scholar
Stone Sweet, Alec, and Brunell, Thomas L.. 1998. Constructing a Supranational Constitution: Dispute Resolution and Governance in the European Community. American Political Science Review 92 (1):63–81.Google Scholar
Stone Sweet, Alec, and Caporaso, James A.. 1998. From Free Trade to Supranational Polity: The European Court and Integration. In European Integration and Supranational Governance, edited by Sandholtz, Wayne and Sweet, Alec Stone, 92–133. Oxford, UK: Oxford University Press.Google Scholar
Streeck, Wolfgang. 1995. From Market-Making to State-Building? Reflections on the Political Economy of European Social Policy. In European Social Policy. Between Fragmentation and Integration, edited by Leibfried, Stephan and Pierson, Paul, 389–431. Washington, D.C.: Brookings Institution.Google Scholar
Thatcher, Mark. 2007. Reforming National Regulatory Institutions: The EU and Cross-National Variety in European Network Industries. In Beyond Varieties of Capitalism. Conflict, Contradictions, and Complementarities in the European Economy, edited by Hancké, Bob, Rhodes, Martin, and Thatcher, Mark, 147–72. Oxford, UK: Oxford University Press.Google Scholar
Tholoniat, Luc. 2010. The Career of the Open Method of Coordination: Lessons from a “Soft” EU Instrument. West European Politics 33 (1):93–117.CrossRefGoogle Scholar
Van Apeldoorn, Bastiaan. 2009. The Contradictions of “Embedded Neoliberalism” and Europe's Multi-Level Legitimacy Crisis: The European Project and its Limits. In Contradictions and Limits of Neoliberal European Governance. From Lisbon to Lisbon, edited by van Apeldoorn, Bastiaan, Drahokoupil, Jan, and Horn, Laura, 21–43. Basingstoke, UK: Palgrave Macmillan.Google Scholar
Vauchez, Antoine. 2008. The Force of a Weak Field: Law and Lawyers in the Government of the European Union. International Political Sociology 2 (2):128–44.Google Scholar
Visser, Jelle. 2009. ICTWSS: Database on Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts in 34 Countries between 1960 and 2007. Version 2. Amsterdam: Amsterdam Institute for Advanced Labour Studies, University of Amsterdam. Available at ⟨http://www.uva-aias.net/208⟩. Accessed 25 April 2012.Google Scholar
Weiler, Joseph H.H. 1981. The Community System. The Dual Character of Supranationalism. Yearbook of European Law 1 (1):257–306.Google Scholar
Weiler, Joseph H.H. 1994. A Quiet Revolution. The European Court of Justice and its Interlocutors. Comparative Political Studies 26 (4):510–34.Google Scholar
Weingast, Barry R. 1995. The Economic Role of Political Institutions: Market-Preserving Federalism and Economic Development. Journal of Law, Economics, and Organization 11 (1):1–31.Google Scholar
Zeitlin, Jonathan. 2005. The Open Method of Co-ordination in Action. Theoretical Promise, Empirical Realities, Reform Strategy. In The Open Method of Co-ordination in Action. The European Employment and Social Inclusion Strategies, edited by Zeitlin, Jonathan, Pochet, Philippe, and Magnussen, Lars, 447–503. Brussels: P.I.E.-Peter Lang.Google Scholar
Zeitlin, Jonathan. 2008. The Open Method of Co-ordination and the Governance of the Lisbon Strategy. Journal of Common Market Studies 46 (2):436–46.CrossRefGoogle Scholar