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European Governance by The Emergence of a new Type of Package Deals

Author: NILS C. BANDELOW, DIANA SCHUMANN, and ULRICH WIDMAIER
Published in GPS, Vol. 1 No. 1

European integration is a fluent process which couples decisionmaking
to power distribution between the political institutions. In this
system it is of prime concern for the European Commission to find
partners in order to accelerate European integration. Under these
circumstances European integration provides grounds for a new type of
governance. The article claims that within the institutional setting of the
EU package deals which involve different policy domains are
increasingly likely to occur between private (firms) and a specific type of
public actors (European Commission). In two sample business sectors –
biotechnology and electrical energy – the emergence of package deals
between the Commission and large firms involving different policy
domains can be described as an analogous form of governance in spite of
conspicuous sectoral differences. The following expositions will show
that package deals may have positive effects on the progress of European
policies. Nonetheless, we will evaluate the welfare effects of package
deals between the European Commission and large firms on the European level. Finally we suppose institutional reforms to keep package
deal’s risks within limits.

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