United in distinctiveness: the institutionalisation of differentiated integration in economic and monetary union during the sovereign debt crisis

Abstract

Differentiation has evolved into a systematic feature of European integration. Still, EU member states have been eager to maintain unity and not let differentiated integration (DI) be reflected in institutions and processes of EU governance. The sovereign debt crisis was a turning point, triggering an unprecedented reinforcement of euro area specific institutions and policies. So far, few contributions have studied the institutional implications of DI in the EU. This dissertation examines whether and, if so, how and with what implications DI has been institutionalised in EMU governance. It analyses the organisational inclusiveness of crisis management structures, the evolution of the Eurogroup and Eurogroup Working Group, procedural norms and elite ideas. The findings suggest that the distinction between euro area insiders and outsiders has become embedded in how member state representatives perceive political reality, determine mutual role expectations and organise governance processes. While this institutionalisation of DI in EMU was facilitated by particular circumstances of the sovereign debt crisis, its implications are evident in EMU governance and reform processes until today. The dissertation makes theoretical and empirical contributions to account for DI in institutional and political developments in EMU and, thus, aims to enrich institutionalist debates in EU studies.