Institutional competition versus centralization : Quo vadis Europe?

lots of steep and sometimes blind bends, with harsh speed limits, and frequent detours. But still it has been one that has attracted more and more traffic. After a successful period of shaping a customs union and a free trade area following the Treaty of Rome (1957), Europe became infected with Euro sclerosis in the seventies owing to an increased intensity of national regulation, especially in the labour market. The constructionist approach to harmonization from above slowed down the speed of integration almost to a halt. Only the change of two fundamental rules revitalized the European integration process, namely the introduction of majority voting in the EC Council and the mutual recognition of national regulations brought about by the 1979 ruling of the European Court. With the Single European Act and the launch of the Internal Market programme Europhoria blossomed, finally leading to the Maastricht Treaty, which aimed to be the masterpiece of European integration. Only very recently, the Danish 'No' and the unconvincing approval by the French voters cooled off hopes for a United States of Europe, signalling that European integration is at the crossroads once again.

[1]  Charles M. Tiebout A Pure Theory of Local Expenditures , 1956, Journal of Political Economy.

[2]  F. A. Hayek Der Wettbewerb als Entdeckungsverfahren , 1968 .

[3]  David Alan Aschauer,et al.  IS PUBLIC EXPENDITURE PRODUCTIVE , 1989 .

[4]  H. Verbon Social insurance and the free internal market , 1990 .

[5]  Europe '92: Environmental policy in an integrated market , 1989 .

[6]  M. Sarcinelli,et al.  The European Union: how to assign the functions of government , 1994 .

[7]  J. Tobey The Effects of Domestic Environmental Policies on Patterns of World Trade: An Empirical Test , 1990 .

[8]  Horst Siebert,et al.  Regional Economic Growth: Theory and Policy.@@@The Element of Space in Development Planning.@@@Regional Economics: Location Theory, Urban Structure and Regional Change. , 1971 .

[9]  M. Olson,et al.  The Logic of Collective Action: Public Goods and the Theory of Groups. , 1973 .

[10]  Barry Eichengreen,et al.  Is Europe an Optimum Currency Area? , 1991 .

[11]  J. Frankel,et al.  Quantifying International Capital Mobility in the 1980s , 1989 .

[12]  H. Siebert,et al.  Institutional competition : a concept for Europe? , 1990 .

[13]  A. Razin,et al.  International Tax Competition and Gains from Tax Harmonization , 1989 .

[14]  Albert O. Hirschman,et al.  Exit, Voice, and Loyalty , 1970 .

[15]  H. Siebert The harmonization issue in Europe: prior agreement or a competitive process? , 1989 .

[16]  M. Keen European integration: trade and industry: Corporation tax, foreign direct investment and the single market , 1991 .

[17]  H. Siebert The New Economic Landscape in Europe , 1991 .

[18]  Herbert Giersch Anmerkungen zum weltwirtschaftlichen denkansatz , 1989 .

[19]  J. Buchanan,et al.  The Power to Tax: Analytical Foundations of a Fiscal Constitution. , 1981 .

[20]  Robert Ford,et al.  Infrastructure and Private-Sector Productivity , 1991 .

[21]  A. Weber,et al.  Soziale Sicherung in Europa : die Sozialversicherung in den Mitgliedstaaten der Europäischen Gemeinschaft , 1989 .

[22]  A. Bovenberg Is There a Need for Harmonizing Capital Income Taxes within EC Countries? , 1990, Reforming Capital Income Taxation.

[23]  Sidney C. Sufrin,et al.  The Logic of Collective Action: Public Goods and the Theory of Groups. , 1966 .

[24]  Judith M. Dean Trade and the environment: a survey of the literature , 1992 .

[25]  C. Mclure TAX COMPETITION: IS WHAT'S GOOD FOR THE PRIVATE GOOSE ALSO GOOD FOR THE PUBLIC GANDER? , 1986, National Tax Journal.

[26]  H. Siebert,et al.  Institutional competition versus ex-ante harmonization: the case of environmental policy , 1989 .

[27]  W. Oates,et al.  Economic competition among jurisdictions: efficiency enhancing or distortion inducing? , 1988 .

[28]  P. Krugman Geography and Trade , 1992 .

[29]  A. Razin,et al.  International Fiscal Policy Coordination and Competition: An Exposition , 1991 .

[30]  G. Klepper Entry into the market for large transport aircraft , 1990 .

[31]  R. Soltwedel Wettbewerb zwischen Regionen statt zentral koordinierter Regionalpolitik , 1987 .

[32]  Stefan Sinn The taming of Leviathan: Competition among governments , 1992 .

[33]  A. Kopp International factor movements and trade: The basic issues , 1994 .

[34]  H. Sinn Tax Harmonization and Tax Competition in Europe , 1990 .

[35]  Olson Mancur,et al.  The Principle of "Fiscal Equivalence": The Division of Responsibilities among Different Levels of Government , 1969 .