This is an assessment of how an established, federal constitutional framework can adapt to meet the challenge posed by the achievement of German unity and the deepening of european Unity.

The book tackles a key issue for the European Union: Fiscal Federalism. It evaluates the applicability of this theoretical perspective for the EU. Conversely, it pinpoints ways in which the diversity of existing fiscal settings and organisations, both at national and European levels, can throw light on the theory. The study analyses two of the most important European policies: Cohesion Policy and the Stability and Growth Pact. It compares the episode of German Unification to the 2004 European Enlargement. It pioneers a cross-country analysis of the various national fiscal settings. Finally, it highlights the close links between the dynamics of decision-making related to the main budgetary choices and the integration process. The questions raised are crucial in the current context of economic and institutional uncertainty: How should we apprehend the Cohesion Policy, the main expression of European solidarity? How can the coordination of national fiscal policies be improved? How are European countries and their regions organised in fiscal and budgetary terms? What lessons can the EU draw from its own fiscal past and from that of its Member States? Over and above the originality of the answers provided by the authors, the book suggests that it would be difficult to take the integration process further without first clarifying what Europe can, should or wants to do.

This is an assessment of how an established, federal constitutional framework can adapt to meet the challenge posed by the achievement of German unity and the deepening of european Unity.

The constitutional and institutional development of the European Union, and federalism in particular, are widely and intensively debated. The issue of federalism has proved to be divisive and misunderstood. This book provides a critical reappraisal of the political, economic, and socio-cultural potential of current federal political-institutional arrangements. It includes both an analysis of their necessary preconditions as well as an evaluation of their advantages and disadvantages compared with other forms of state organization. The authors examine the issue at the level of the Union, the member states, and the states of Central and Eastern Europe, reflecting the increasing interdependence and interplay of these three levels: nation states in all parts of Europe influencing one another and the Union, and being influenced by it. The book concludes with an overall assessment of the federalizing processes at work in Europe, both at the Union and the nation state level, and points out the problems, paradoxes, and likely outcomes of these processes.

The hidden federal features of the European Union help explain the challenges of legitimacy, democracy and freedom that face an unfinished political community. Ideas about federalism and the reality of existing federal states cannot be sharply divided in an analysis of the EU’s multilevel political order, but so far, both scholars and major decision makers have shown interest only in the normal functioning of federal systems: ignoring the dilemma of the federation’s legitimate authority has resulted in an existential crisis for the EU which has become ever more manifest over recent years. This book employs a combination of political philosophy and political science, of federal philosophic ideas and their traces in real federal institutions, in order to achieve the task of understanding the federal features of the EU governance system. The first part of the work focuses on building an appropriate theoretical framework to explain the new meanings attached to familiar notions of democracy, legitimacy and citizenship in the context of a political community like the EU. In the second part the federal features of the EU’s political system are examined in comparison to other current and historical federal perspectives like the US, Switzerland, Yugoslavia and Germany. Through an analysis of the hidden federal aspects of the EU and the links between hidden federalism and the EU’s legitimacy crisis, this book reveals the patterns that should be avoided and gives us guidelines that should be followed if the EU is to become democratic and politically united without jeopardising the state character of its members.

Discussing what we may learn from thinking about the EU in federal terms represents a two-fold challenge. It is on the one hand a matter of establishing ‘how federal’ the EU is (the EU’s federal challenge). On the other, the EU has federal features but is not a state, thus raising the question of whether federal theory and practice may have to be adapted to take proper account of the EU (the EU’s challenge to federalism). The contributions to this collection supplement and extend existing scholarship through focusing on two important lines of inquiry. The first focuses on the relationship between federalism and democracy, with particular emphasis on how federal systems respond to and deal with citizens’ interests and concerns, within and outside the political system. Representation is explored both in the process of federalization, and as a feature of established systems. The second line of inquiry places the emphasis on the relationship among the governments of federal systems. The focus is on intergovernmental relations, and the particular merits that emanate from studying these from a federal perspective. This book was originally published as a special issue of Journal of European Public Policy.