EU Regulation between Uniformity, Differentiation, and Experimentalism: Electricity and Banking Compared

23 Pages Posted: 19 Apr 2022

See all articles by Jonathan Zeitlin

Jonathan Zeitlin

University of Amsterdam; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); Centre for a Digital Society; Scuola Normale Superiore

Bernardo Rangoni

University of York - Department of Politics

Multiple version iconThere are 2 versions of this paper

Date Written: April 19, 2022

Abstract

This paper examines how far and under what conditions experimentalist governance (XG), defined as a recursive process of provisional goal setting and revision, based on comparative review of implementation in different local contexts, may be an effective and legitimate means of responding to diversity among EU member states, in comparison both to conventional uniform regulation (UR) and to differentiated integration (DI). The paper tackles this question through a comparative analysis of EU regulatory governance in two major policy domains, where the dilemma of how to accommodate national diversity has arisen prominently: electricity and banking. Our findings show that in these two cases the conjunction of high interdependence with high uncertainty has resulted in the emergence of a distinctive type of XG architecture, combining synchronic uniformity with diachronic revisability. Under these conditions, uniform rules and practices can be accepted as effective and legitimate by EU Member States, provided they are applied in contextually sensitive ways and regularly revised on the basis of implementation experience, through deliberative review processes in which national officials themselves participate. Our findings thus suggest that far from uniformity and experimentalism being antithetical to one another, diachronic experimentalism may be a necessary condition for synchronic uniformity of regulation within a heterogeneous polity like the EU. Our findings on EU banking regulation, where non-euro Member States may opt out of the Single Supervisory Mechanism (SSM), but where both the SSM and the European Banking Authority (EBA) operate along experimentalist lines, further suggests that XG and DI may be complementary, but asymmetrically so, in that the latter depends on the former to accommodate diversity within and across Member States, but not vice versa.

Keywords: Differentiated integration, European Union, experimentalist governance, electricity, banking

Suggested Citation

Zeitlin, Jonathan and Rangoni, Bernardo, EU Regulation between Uniformity, Differentiation, and Experimentalism: Electricity and Banking Compared (April 19, 2022). Amsterdam Centre for European Studies Research Paper No. 2022/03, Available at SSRN: https://ssrn.com/abstract=4087483

Jonathan Zeitlin (Contact Author)

University of Amsterdam ( email )

Amsterdam Roeterseilandcampus
Nieuwe Achtergracht 166
Amsterdam, 1018 WV
Netherlands

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); Centre for a Digital Society ( email )

Scuola Normale Superiore ( email )

Piazza dei Cavalieri, 7
Pisa, 56126
Italy

Bernardo Rangoni

University of York - Department of Politics ( email )

York YO10 5DD
United Kingdom

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