This cluster focussed on areas of regulation where EU involvement is new and where at the national level existing modes of governance have been called into question - either because they are or appear to be ineffective, or because they are challenged by (mostly international, sometimes domestic) developments.
This is the case of economic and monetary government, tax policy and corporate governance. Thus, renewal at the national and European level is called for, with improved interaction between levels (and experimenting and learning about where and how best to create governance capabilities) and between policies 2) experimenting, learning and evolution of modes of governance, at the societal level, within specific policy clusters (pacts and partnerships) and locally. Here the question is how these (different) modes of governance emerge and evolve, to what extent this takes the form of experimenting, via policy learning and mimicking and how we should understands complex and evolving outcomes, with a specific focus on the hybridisation of governance forms.
Each of the projects was conducted at the boundaries of political science and economics. Visser-Rhodes-Avdagic looked at the role of pacts and partnerships at the national level in forging new institutional approaches to the resolution of distributive conflict, while Ferrera’s team analysed the same issues in the context of local level partnerships. Shelkle, Begg and Jabko examined the issues of economic policy co-ordination across the multiple levels of EMU. Hancké-Innes engaged in a highly innovative project to explore the transformation of national governing modes of the emerging and fast-evolving new capitalist economies of the CEE economies, comparing their evolution with the ‘models’ of the longer-existing, advanced capitalist systems of the west. Renneboog and his team pursued the same line of analysis in the EU economies to examine how their complex and embedded systems of corporate governance perform under rapidly changing economic conditions and how they are transforming in response to endogenous and external pressures for change and reform. Radaelli and his collaborators looked at the critical area of tax competition and regulation at the national, supranational and internationals, exploring the changes occurring in the form and orientation of governing modes under Europeanisation and globalisation. Crouch focussed on the local level, where new hybrid, recombinant modes of local economic governance and organization are emerging in response to technological change, competitive pressures and entrepreneurial initiative, on the part of both political and economic actors. The project led by Obradovic, meanwhile, centred on the accountability implications of the participation of interest groups in the new forms of social and economic governance within an enlarged European Union. This ultimately established whether the involvement of civil society groups in European social and economic governance enhances or hinders accountability/answerability in the Union, and identified new mechanisms for ensuring the accountability/answerability of civic groups engaged in governance. This project also set out guidelines for the design of new accountability/answerability mechanisms.
Together, these studies meshed to form a novel and innovative set of studies on the European political economy and its emerging new, and hybrid (“old-new”) governing modes.