Diane Fromage

Democratic legitimation of EU economic governance: challenges and opportunities for European Legislatures

Abstract This introduction sets the context of the analysis conducted in this special issue. In particular, it examines the issue of the democratic legitimacy of the European Union (EU) Economic Governance, the role of national parliaments and of the European Parliament in the European integration process. It also addresses the question of throughput legitimacy within the EU that guides all contributions. This serves as basis to study the urgency of the democratic challenge in the EU economic governance, as well as its specificity. After the contributions to this special issue are briefly presented, this introduction examines what they bring to the overall debate on democratic legitimacy in this policy domain, among others in terms of the difficulties that have arisen across Member States. At the same time, perspectives of possible future developments are also spelt out, in particular in the context of an EU-27 post Brexit.

The ‘Banking Dialogue’ as a model to improve parliamentary involvement in the Monetary Dialogue?*

Abstract The newly established European Banking Union has introduced a unique accountability framework of the European Central Bank vis-à-vis the European Parliament (EP), but also vis-à-vis national parliaments, in the form of Banking Dialogue. The ECB was thus far held to account for its monetary policy actions by the EP in the framework of the long-existing Monetary Dialogue. However, some shortcomings have become apparent in this procedure, especially with the economic crisis. Beyond this, the recent attribution of new competences to the ECB calls for a reflection as to the accountability mechanisms in place to control its actions. Based on an empirical and normative analysis of both types of dialogues, we contend that the Banking Dialogue could serve as a model to reform the Monetary Dialogue to enhance the legitimacy of the ECB’s actions and of the EU as a whole.

The European Parliament in the post-crisis era: an institution empowered on paper only?

Abstract Following the adoption of Eurocrisis Law, the European Parliament (EP) has been strongly empowered in the Economic and Monetary Union. It may intervene mostly in three ways: by the means of control mechanisms around Euro summits, during Economic Dialogues and in the framework of the European Parliamentary Week and the Interparliamentary conference on Stability, Economic Coordination and Governance. An analysis of the practice reveals however that thus far this empowerment has remained largely theoretical; The EP could still better exploit the potential of its newly attributed capacities. The reform proposals currently under discussion were found to bear some potential if adequately used, despite being (still) of a soft nature like the ones currently existing.

Fiscal Councils: Threat or Opportunity for Democracy in the Post-Crisis Economic and Monetary Union?

After the Eurozone crisis, European Union (EU) Member States have the obligation to establish independent fiscal institutions (IFIs)—also known as fiscal councils—composed of recognised experts responsible for the monitoring of the compliance with fiscal rules in accordance with European norms. Eurozone Countries are the first addressees of this obligation and are bound by stricter legal constraints than States outside the Euro area. The form these IFIs take varies from one Member State to the other and so do their powers. In any event, in requiring their creation, the European norms have potentially led to a reorganisation and a change in the institutional balance at national level. At the same time, they may have participated to the improvement of democracy in ensuring more independent expertise, transparent and public information, and knowledge that Parliaments can use to control and scrutinise their Government’s actions, although the fiscal councils themselves remain weak. In this context, this contribution aims to answer the following research question: Do IFIs, according to the new European and national rules of implementation, constitute a threat to democracy or, rather could they, in fact, enhance democracy?