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Widening and Deepening: Reforming the European Union

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Author Info
Berglöf, Erik
Burkart, Mike
Friebel, Guido
Paltseva, Elena

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Abstract

This short paper analyses the tension between "widening" and "deepening" of organizations such as the European Union. Members have the same consumption benefit of reform but weak and strong members differ in their cost of exerting reform efforts. As decisions are taken by unanimity, the reform level is determined by the weakest member. However, strong members can coerce weak members to exert more effort by threatening to form a "club-in-the-club". Widening (bringing in additional members into the Union) can have different effects on deepening (more reform effort). When a new member is stronger than the weakest incumbent member, deepening and widening are complements, that is, the Union-wide reform efforts increase. When a new member is weaker, deepening and widening can be substitutes, and the reform efforts in the Union may fall. Our analysis helps to understand the history of the EU treaties, in particular the differences between enlargement waves such as the Northern vs. the Eastern Enlargement. It also rationalizes the general move from unanimity voting to different types of majority.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6672.

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Date of creation: Feb 2008
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Handle: RePEc:cpr:ceprdp:6672

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Related research
Keywords: Club-in-the-club; Reform; Resistance to change; Unanimity;

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Find related papers by JEL classification:
D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Mike Burkart & Klaus Wallner, 2000. "Club Enlargement: Early Versus Late Admittance," Econometric Society World Congress 2000 Contributed Papers 0253, Econometric Society. [Downloadable!]
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  2. Legros, Patrick & Matthews, Steven A, 1993. "Efficient and Nearly-Efficient Partnerships," Review of Economic Studies, Blackwell Publishing, vol. 60(3), pages 599-611, July. [Downloadable!] (restricted)
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  3. Avinash Dixit, 2003. "Clubs with Entrapment," American Economic Review, American Economic Association, vol. 93(5), pages 1824-1829, December. [Downloadable!]
  4. Bordignon, Massimo & Brusco, Sandro, 2001. "Optimal secession rules," European Economic Review, Elsevier, vol. 45(10), pages 1811-1834, December. [Downloadable!] (restricted)
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