Archive | October 2010

Is EU rational?

According to the revived version of the intergovernmentalist theory described by Moravcsik’s, the principle of domestic preference formation would force governments to act on European level only when they pursue common interests or when a given inefficiency may be resolved more easily by coordination. These acts are rational, since without significant reasons for transfer of competencies, any assignment of inefficient competencies would not take place.

For instance the Single European Act (SEA) was implemented mainly for purposes of economies of scale with a very little encroachments to those policies, where these economies would be insignificant or impossible. The SEA limits itself on removing barriers and increasing thus only procedural freedom as described by Amartya Sen and circumvent any redistributive actions. Its impact is completely Pareto-efficient and very few arguments may be raised from national-interest positions to oppose it. Moreover, the theoretical principle of subsidiarity, which was introduced thereafter in the Maastricht Treaty, has transformed this principle into a rule. It is hence explicitly given that the transfer of competences takes place only in situations where necessary and rational. Read More…