The role of the EU institutions in establishing the banking union. Collaborative leadership in the EMU reform process. Issue 9 (2nd September 2018)

• Record Type: Journal Article
• Authors: Nielsen, Bodil; Smeets, Sandrino
• Is Part Of: Journal of European public policy. Volume 25:Issue 9(2018)
• Page Start: 1233
• Page End: 1256
• Publication Date: 2018-09-02
• Subjects: Banking union -- economic and monetary union -- EU institutions -- European integration -- leadership -- principal-agent theory; European Union countries -- Politics and government -- Periodicals; Political planning -- European Union countries -- Periodicals; Politique publique -- Pays de l'Union européenne -- Périodiques; Pays de l'Union européenne -- Politique et gouvernement -- Périodiques; 361.61094
• DOI: 10.1080/13501763.2017.1285342
• Languages: English
• ISSNs: 1350-1763

Abstract

ABSTRACT: This article analyses the role of the EU institutions in guiding the EMU reform process. Many have argued that the institutions have had to adapt to a 'constraining' environment in which EU negotiations are highly salient and touch upon 'core state powers'. To explain how they have been adapting, we provide a detailed process tracing analysis of their role in setting up the banking union. We use insights from principal-agent (PA) theorizing, but extend this framework to account for situations in which there are multiple agents. The analysis shows that in spite of overlapping interests, functional imperatives and a crisis atmosphere, there was nothing inevitable about the banking union. It came about through new patterns of institutional collaboration at different stages and between different levels of decision making. We explore the implications of this type of collaborative leadership at the level of agents, arenas, process and substance.