Institutions and democratic governance

Abstract

Recent instruments used to govern the euro and to induce fiscal discipline in member states have increased EU interference in national economic policy making; broadened the heterogeneity of supranational strategies to achieve these objectives; and led to greater differentiation among the sets of countries adhering to the different governance schemes. National electorates, ever more sceptical with how these instruments and policies are justified in their own countries, are likely to challenge further intergovernmental strategies and instruments such as the European Parliament. These voters are likely to view EU institutions, political parties and citizens’ initiatives as weak legitimising devices. Despite signs of a more efficient handling of the fiscal and monetary crises, we observe growing negative spill-over effects concerning legitimacy and support of member states by the EU and vice versa. The EU faces a midterm political predicament that requires innovative solutions to link new instruments of governance to citizens and popular support.