Week 5: EU agencies, The Court of auditors, and Ombudsman Flashcards
Roles of EU Agencies
The crucial functions are:
- Information-gathering
- Standard-setting
- Behaviour modification
Agencification
- Describing the rapid creation of EU agencies (also called agency fever and mushrooming)
- Delegation of extensive responsibilities and powers to agencies which are remote from political institutions.
Regulatory state
Zoek definitie nog op in het boek
Reliance on regulation - rather than public ownership, planning, or centralized administration - characterizes the methods of the regulatory state.
The Meroni Doctrine
prohibiting the delegation of discretionary decision-making powers to agencies created through secondary legislation.
That is why agencies posses limited formal discreationary powers.
Due to the Meroni doctrine, do the agencies face contested legitimacy and limited de jure powers.
In practice, agencies provide technical information and scientific advice that influence EU decisions (informal agency powers).
Majone’s regulatory approach
- Due to limited powers, EU agencies developed a regulatory approach based in information and persuasion
- Regulation by information is a powerful mode of governance, with EU institutions relying heavily on this data.
The role of the European Supervisory Authorities (ESA’s)
A significant shift in EU agencification:
- ESA’s represent a major change in the regulation of European financial markets compared to earlier agencies
Unprecedented powers:
- Wide ranging powers and independence comparable to powerful US authorities (Busuioc, 2013).
- Unique authority to make direct binding decisions to national supervisory authorities and override them when necessary.
- (Quasi-) rule-making powers:
- Can adopt guidelines, recommendations, and prepare technical standards that inform binding EU law.
- The European Commission is discouraged from deviating from ESA drafts.
Challenges faced by EU agencies
Operating environment:
- Eu agencies function in a complex multilevel governance structure.
Legitimacy issues:
- Agencies may gain de facto powers, but their legitimacy remains contested.
Institutional theory
Key Research questions (1/3)
Theory that looks at how the structure of an organisation (such as an EU agency) affects its functioning and decision-making.
Organizational theory
Key Research questions (2/3)
Development of de facto powers beyond legal mandates
Interest group theories
Key Research questions (3/3)
Theory that looks at the influence of interest groups on decision-making and power relations within organisations.
Functional explanations via the institutional theories why Agencies were created.
- Functional necessity argument: Agencies perform technical and scientific tasks to support policymaking.
- Credible policy commitments: Agencies use high-quality data and scientific knowledge to provide credible solutions.
- Output legitimacy: Agencies legitimize themselves by delivering effective policies.
Organizational approach to EU agency behaviour.
1/3
Definition: focuses on individual actors’ organizational characteristics and context to explain their behaviour, interests and identities.
Key argument: The impact of institutions on actors’ mindsets depends on their arrangement and structure.
Key factors influencing agency behaviour
2/3
- Organizational structure: How the organization is designed.
- Organizational demography: Characteristics of individualss within the organization.
- Organizational Locus: Where the organization operates.
- Institutionalization: The extent to which processes are established.
The institutions of economic and monetary union (EMU)
- The European Central Bank (ECB)
- The European Commission
- The Council of the European Union (the economic and financial Affairs Council (ECOFIN))
The ECB
The central bank for the eurozone, responsible for monetary policy and maintaining price stability in the EU.
- Monetary policy price stability above all other goals for the ECB. -> ECB defined it as pursuing inflation rates “below, but close to, 2 percent over the medium term”.
- Economic policy: The treaty is even more opaque about how the ECB should support economic policy (Only stating that such effort should contribute to the objectives of the Union.)
Climate cahnge and the ECB; name the three current ECB strategies.
- Managing climate-related risks: both undertsnading climate-related risks in monetary policy and risks associated with climate-related policy.
- Supporting green transition: transition to green economy and promoting sustainable finance
- Fostering wider action: improving understanding of climate-related risks; working with EU and international partners; improving transparency of activities and reducing environmental impact.
