Europeanization and the mechanics of economic policy adjustment

Europeanization, differentiated from European integration as the impact of European policies on national policies, practices, and politics, has had differing effects on EU member states, depending upon a number of independent variables. These include the constraints imposed by EU decisions in any given policy area, that is, whether the decisions demand that countries follow highly specified rules of implementation, less specified rules, suggested rules, or no rules at all. But adjustment also depends upon certain mediating factors, including countries' vulnerability to global as well as European economic pressures, their political institutional capacity to respond as necessary, the 'fit' of European policies with national policy legacies and preferences, and the discourses that influence policy preferences by changing perceptions of economic vulnerabilities and policies and thereby enhance capacity. Only by putting the decision constraints together with the mediating factors can we adequately explain countries' differential policy outcomes, whether inertia, absorption, or transformation. To illustrate, this paper considers three countries, France, Britain, and Germany, across a representative range of economic policy areas, including monetary policy, financial services, telecommunications, electricity, transport, and mutual recognition.