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Many faces of dismantling: hiding policy change in non-legislative acts in EU environmental policy

Jan Pollex (University of Osnabrück) & Andrea Lenschow (University of Osnabrück)

As new policy initiatives shuttle through the EU’s institutions, we expect policy-makers to chisel away at the language contained in these proposals to make sure that policies’ anticipated effects match policy-makers’ preferences before they are formally adopted. Yet, even once a policy successfully exits the legislative arena, its actual impact may be subject to change. In their article “Many faces of dismantling: hiding policy change in non-legislative acts in EU environmental policy” published in the Journal of European Public Policy, Jan Pollex and Andrea Lenschow argue that the EU’s regulatory legislation typically provides the European Commission with opportunities to shape the actual effects of policies after their adoption by designing specific implementation measures. In light of the Commission’s prioritisation of fostering economic growth in response to the economic crisis, Jan and Andrea provide case studies of the EU’s ecolabel and ecodesign policies and show that the Commission had used its powers of specifying implementing measures to ease the regulatory pressure in the EU’s environmental policy. Jan and Andrea’s analysis highlights that in order to evaluate the EU’s environmental policy it is necessary to pay close attention to the actual implementation of policy, as “we might see policy dismantling in disguise, effectively softening environmental regulatory pressure on producers within rather stable regulatory structures.”

The EU as a savior and a saint? Corruption and public support for redistribution

Monika Bauhr (University of Gothenburg) & Nicholas Charron (University of Gothenburg)

Strike a conversation with a stranger about the EU these days and you are (rather) unlikely to end up chatting about the EU’s Cohesion Policy. But why not actually? After all, development projects funded in the context of the Cohesion Policy account for roughly a third of the EU’s annual budget and the policy is the bloc’s key tool to address social and economic disparities both across and within its Member States. In their article “The EU as a savior and a saint? Corruption and public support for redistribution” published in the Journal of European Public Policy, Monika Bauhr and Nicholas Charron address the gap in our knowledge on European citizens’ support for the EU’s cross-border redistribution of resources. Drawing on original survey data tailored to capture public opinion on the EU’s Cohesion Policy in 15 Member States, Monika and Nicholas conclude that citizens generally express some sense of support for redistribution within the EU. However, their analysis shows that this support is shaped by citizens’ perceptions of domestic corruption. Monika and Nicholas find that those who perceive domestic institutions as performing poorly “are more likely to perceive the EU as both a potential ‘savior and saint’, that will ultimately ensure better public service delivery and governance systems less plagued by corruption and mismanagement of public funds.”

The state strikes back: industrial policy, regulatory power and the divergent performance of Telefonica and Telecom Italia

Fabio Bulfone (Max Planck Institute for the Study of Societies)

When the European Commission began pushing for the liberalisation of the telecommunications sector in the mid-1980s, EU Member States lacking the means and capacity to fuel an effective industrial policy faced an economic worry: Will their policies be enough to help key domestic telecommunications players survive the mergers and foreign acquisitions expected to unfold in the wake of European integration? In his article “The state strikes back: industrial policy, regulatory power and the divergent performance of Telefonica and Telecom Italia” published in the Journal of European Public Policy, Fabio Bulfone compares the fortunes of industrial policies implemented by the Italian and Spanish governments to aid the internationalisation of their main domestic telecommunications firms, Telecom Italia and Telefonica. Fabio explains why despite the similar styles of industrial policies pursued by Italy and Spain, Telefonica managed to transition from a monopolist focused on the Spanish market into a ‘European champion’, while Telecom Italia did not to follow the same trajectory. His analysis shows that the Italian government failed to convince key domestic investors of becoming the main shareholders of Telecom Italia during its liberalisation process. In Spain, on the other hand, the government was able to draw on the support of Spanish investors and “the strong hardcore of domestic banks created after privatisation gave Telefonica the ownership and managerial stability necessary to successfully expand abroad.”

The political economy of pension financialisation: public policy responses to the crisis

Anke Hassel (Institute of Economic and Social Research (WSI) of the Hans-Böckler-Foundation) & Tobias Wiß (Johannes Kepler University Linz)

By Tobias Wiß

Financialisation – the increasing reliance of society, the economy and politics on financial market solutions – has become a key feature of post-industrial economies. Pension reforms in recent decades reduced benefit levels of public pensions and expanded non-state – occupational and personal – pre-funded pensions, resulting not only in a process of privatisation but ultimately in the financialisation of pensions. As the result, pension policy is not only a social policy that affects retirement income, but also a financial one that impacts savings rates, corporate finance and, indirectly, corporate behaviour.

The first JEPP special issue in 2019 on “The political economy of pension financialisation: public policy responses to the crisis” edited by Anke Hassel and Tobias Wiß addresses how and why pension reforms came to rely more on financial markets and how public policy reacted to the financial crisis.

The collection of articles sheds light on pre-funded private pensions as one key component of financialisation, as they turn savings into investment via financial services providers. Public pension systems face financial pressures, resulting from ageing and rising public debt, while financial services are keen to move into the market of private pension provision. The financial crisis has triggered policy responses including shifts in investment strategies and also a re-assessment of the role of pre-funded private pensions as a complementary, rather than a superior, source of old-age income.

The special issue focusses on three main issues: The emergence of pension financialisation, reactions to financial crises and regulatory variation.

Politics and reform packages have mattered for the introduction of private pensions and especially minimum benefits in Germany. The overview of the historical development of pension financialisation in Denmark, the Netherlands and Sweden lays down how the social partners (trade unions and employer associations) managed to organise pre-funded pensions collectively allowing that financialised pensions serve social interests.

With regard to responses to financial crises, Germany, the Netherlands and the UK show processes of reinforcement instead of a weakening of pension financialisation.

A further set of articles looks more detailed at regulatory variation: The role of organised interests including adaptions of their strategies in times of financialisation, the influence of investment professionals promoting liability driven investment and the independent role of the state in shaping regulatory decisions. Apart from nation-states, the European Union does not promote a coherent pension financialisation agenda as one might expect. Instead, the EU’s pension strategy is rather accidental and multi-faceted, consisting of a mix of market creation, emulation and correction. In sum, it seems that pension financialisation and the broader financialisation of the economy are here to stay, despite negative developments during and after the financial crisis. Governments are quite aware that pre-funded pensions play a role for corporate finance, economic growth and financial markets in general.

Political and instrumental leadership in major EU reforms. The role and influence of the EU institutions in setting-up the Fiscal Compact

Sandrino Smeets (Radboud University Nijmegen) & Derek Beach (Aarhus University)

The crises that have beset the EU in the past decade have provided plenty of opportunities for actors populating the EU’s political system to step up and assume political leadership. A product of the eurozone and sovereign debt crises, the Treaty on Stability, Coordination and Governance – or short, the Fiscal Compact – has been widely attributed to the political leadership of the German chancellor, Angela Merkel. However, these accounts have unfairly overlooked the critical role EU institutions have played in ensuring a swift passage of the Fiscal Compact, say Sandrino Smeets and Derek Beach. In their article “Political and instrumental leadership in major EU reforms. The role and influence of the EU institutions in setting-up the Fiscal Compact” published in the Journal of European Public Policy, Sandrino and Derek employ a process-tracing design to highlight the leadership of EU institutions, such as the Legal Service of the Council Secretariat. The findings of their analysis have wider implications for our understanding of how the European Council’s enhanced presence in EU decision-making has affected the role of EU institutions. Sandrino and Derek’s work suggests that “the informal and ‘isolated’ character of decision-making at the European Council level, paradoxically, created more instead of less dependence on EU institutions to translate the broad […] priorities [of Heads of State and Government] into actual reforms.”

Analysing the trade-off between transparency and efficiency in the Council of the European Union

Stéphanie Novak (Ca’ Foscari University of Venice) & Maarten Hillebrandt (University of Bielefeld)

Negotiating behind closed doors allows policy-makers to speak their minds freely and secures the efficiency of decision-making processes. This argument has long served members of the Council of the European Union as a justification to refuse public disclosure of documents in ongoing decision-making procedures. In their article “Analysing the trade-off between transparency and efficiency in the Council of the European Union” published in the Journal of European Public Policy, Stéphanie Novak and Maarten Hillebrandt probe the veracity of claims that a trade-off exists between the public’s ability to follow negotiations in the Council and the latter’s efficiency. Drawing on data from the Council’s replies to citizens’ applications requesting access to undisclosed documents as well as interviews with Council members, Stéphanie and Maarten show that the effect of transparency on the Council’s efficiency is far from unidimensional. Their analysis calls into question “any reductive representation of the relation between transparency and efficiency as a ‘weighing scale’ trade-off and the idea that these two legitimating values would be unconditionally incompatible.”

The Europeanization of national judiciaries: definitions, indicators and mechanisms

Urszula Jaremba (University of Utrecht) & Juan A. Mayoral (University of Copenhagen)

Tasked with enforcing the rights derived from EU law in Member States, national judges play a critical role in the process of European integration. However, we still know very little about how European law shapes the functioning of EU Member States’ judiciaries, say Urszula Jaremba and Juan A. Mayoral. In their article “The Europeanization of national judiciaries: definitions, indicators and mechanisms” published in the Journal of European Public Policy, Urszula and Juan offer three solutions to foster our understanding of the Europeanization of national judiciaries: a conceptualisation of Europeanization that captures the attitudes and profiles of national judges, a range of indicators that allow us to measure changes in attitudes and behaviour among national judges, and a distinction between utility-driven and socialization mechanisms that can explain these changes. Due to its complexity, mapping the effect of EU law on Member States’ courts is an ambitious exercise. Taking a step towards achieving this goal, Urszula and Juan’s contribution “opens up a whole new stream in the socio-legal research agenda that is crucial for a more comprehensive understanding of the processes of Europeanization of national courts.”

EU environmental policy in times of crisis

Charlotte Burns (University of Sheffield), Peter Eckersley (Nottingham Trent University) & Paul Tobin (University of Manchester)

Ever since expanding supranational environmental policy in the 1980s, the EU has carefully crafted a reputation as a global environmental leader. Yet, a series of recent academic contributions claim that the post-2009 economic recession and a growing sense of Euroscepticism across Member States have left their mark on the EU’s environmental policy ambition. In their article “EU environmental policy in times of crisis” published in the Journal of European Public Policy, Charlotte Burns, Peter Eckersley and Paul Tobin analyse whether the past decade’s conglomerate of crises has effectively dismantled the EU’s environmental policy ambition. Identifying all environmental legislation proposed and adopted by the EU between 2004 and 2014, Charlotte, Peter and Paul show that the EU’s environmental policy output indeed dropped in the immediate aftermath of the 2009 economic crisis. Notwithstanding this short-term effect, evidence from interviews with 35 policy-makers in Brussels suggests that other factors, including an increasing diversity among EU Member States and the maturity of the acquis communautaire, played a much more consequential role in the slowing down of the EU’s environmental policy ambition. The evidence presented in Charlotte, Peter and Paul’s contribution challenges perceptions “of a crisis ridden Union intent upon rolling back its environmental ambitions, but of a surprisingly resilient environmental policy actor that in the face of enormous challenges managed to keep the show on the road.”

Victims of their own success abroad? Why the withdrawal of US transparency rules is hindered by diffusion to the EU and Canada

Bjorn Kleizen (University of Antwerp)

Existing research has provided ample evidence that in globalized markets, regulatory policies introduced by influential states often diffuse to other jurisdictions and stoke policy change beyond their own borders. In his article “Victims of their own success abroad? Why the withdrawal of US transparency rules is hindered by diffusion to the EU and Canada” published in the Journal of European Public Policy, Bjorn Kleizen argues that the diffusion of regulatory rules can come back to bite legislators seeking to change them in their original jurisdiction. Bjorn provides an in-depth case study of the Trump administration’s decision to withdraw payment transparency regulations for extractive industries, which had been introduced by the previous U.S. administration. He shows that the EU and Canada’s decision to emulate Obama-era practices meant that U.S. oil, gas and mineral multinationals were still faced with disclosure rules pursuant to EU and Canadian law, undermining the effectiveness of U.S. lawmakers’ attempts to reduce the regulatory burdens. Bjorn’s argument suggests that when “states co-operate to create rules that are applicable to each other’s companies, the layering of these various rules may create a difficult-to-remove multilateral framework.”

Seasons’ greetings from JEPP!

Dear members of the JEPP family:

As 2018 draws to a close, we want to use this opportunity to thank all of you – authors, reviewers, readers – for your continued support and commitment to our journal. This year, we introduced a Reviewer Prize to recognize the exceptional commitment of our reviewers and their selfless investment in helping to improve the work of our colleagues. Reviewing is the lifeblood of our profession, and we are extremely grateful to all of you for your excellent work.

We celebrated JEPP’s 25th anniversary this year, and we find it in a very healthy state: the number of submissions remains at a very high level, journal metrics continue to impress us, reaching new heights in 2018, establishing JEPP among the very top journals in the discipline. We thus very much hope to continue where we ended 2018, and are counting on your submissions, which we promise to process swiftly and fairly (which is our first and foremost goal).

Stay tuned for our upcoming issues, debate sections and special issues. Follow us on Twitter (@jepp_journal), read and subscribe to our newsletter.

Seasons’ greetings and all good wishes,
Your JEPP team


Akaroa Lighthouse (Christchurch, New Zealand) & Murphy (good boy & friend of the show)

Jeremy will, as usual, be spending Christmas with Sonia, Tessa , and Molly at their holiday home in Akaroa. Akaroa is a very pretty small seaside town, approx 75k from Christchurch (see photo). Jeremy has no intention of attempting paddle boarding again, but might kayak into the bay, simply to prove he is not really 76! This  annual ego trip will, no doubt, result in all sorts of aches and pains and a chorus of ‘we told you so’ from Sonia and the girls.

This year will be the first Christmas in Akaroa without Harvey the family dog, who passed away a few weeks ago, aged nearly 17. However, Murphy (see photo) the new family dog, will be part of the team, though seems not to be much of a beach dog. He has already shown interest in being a JEPP referee, following in Harvey’s footsteps (only joking folks!). We have no idea what type of dog he is (he was abandoned in town by his previous owner) but he is very loving and seems grateful that we adopted him.


Berthold, from JEPP’s situation room

This year, Berthold and Jess will trade Christmas under palm trees for the Swabian metropolis of Tübingen, Berthold’s home town, where they will be busy sampling regional specialties, such as g’schmelzte Maultaschen and Spätzle mit Zwiebelrostbraten.

JEPP’s situation room (photo) will be in recess for a few days over the holidays. Not that we don’t like our digs, but we believe that JEPP deserves a short break from us, too.

 

 


Michi & (hungry?) Kolja

Michi will celebrate Christmas twice: with his mother, sister and families in Bavaria and Olga’s family in Gatchina, St. Petersburg region, Russia. Most importantly, it will be Kolja’s “inaugural visit” to his Russian great-grandmother.

Apart from celebrating and eating, as usual, Michi will try to reduce his backlog of must-read fiction and continue wondering what Kolja was trying to tell him on this photo taken recently on his first birthday.

 

 


(Mesmerized) Philipp

Same procedure as every year, Philipp will swap London’s hustle and bustle for the family home in Munich over the holidays, devour the leftover Christmas cookies and do his best to get off the grid for a few days to reflect on an eventful year.

Clearly, he has also taken a recent interest in Christmas tree decorations and may (for the first time in his life!) take part in setting up the tree at home, that is if his parents trust him handling the precious Christmas baubles.