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A Proposal for a Flexible Europe

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  • Bruno S. Frey
  • Reiner Eichenberger

Abstract

At present, new EU-members have to fully accept the "acquis communautaire" even if their economic and institutional development differs drastically from the EU-average. In contrast, we propose that there should be the possibility of partial entry into the EU. East European Countries should have the option of specifically entering with respect to functions where they expect positive net benefits. In order to enable such partial entry, a new type of jurisdictions called FOCJ (Functional, Overlapping and Competing Jurisdictions) is proposed between the EU, the CEECs, and beyond. Such FOCJ allow for partial integration based on economic efficiency and democratic rules.

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Paper provided by Institute for Empirical Research in Economics - University of Zurich in its series IEW - Working Papers with number 056.

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Handle: RePEc:zur:iewwpx:056

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Keywords: keywords: federalism; constutitutional economics; public choice; europe;

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  1. Casella, Alessandra & Frey, Bruno, 1992. "Federalism and clubs : Towards an economic theory of overlapping political jurisdictions," European Economic Review, Elsevier, vol. 36(2-3), pages 639-646, April.
  2. Frey, Bruno S, 1994. "Direct Democracy: Politico-economic Lessons from Swiss Experience," American Economic Review, American Economic Association, vol. 84(2), pages 338-42, May.
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Cited by:
  1. Aleksander Berentsen & Guillaume Rocheteau, 2004. "Money and Information," Review of Economic Studies, Oxford University Press, vol. 71(4), pages 915-944.
  2. Schenk-Hoppe, Klaus Reiner & Schmalfu[ss], Bjorn, 2001. "Random fixed points in a stochastic Solow growth model," Journal of Mathematical Economics, Elsevier, vol. 36(1), pages 19-30, September.
  3. Reto Föllmi & Urs Meister, . "Product-Market Competition in the Water Industry: Voluntarily Nondiscriminatory Pricing," IEW - Working Papers 115, Institute for Empirical Research in Economics - University of Zurich.
  4. Bodo Knoll & Andreas Koenig, 2010. "Leviathan Europa - Stärkung der Nationalstaaten und der EU durch konstitutionelle Schranken?," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 321/2010, Department of Economics, University of Hohenheim, Germany.
  5. Wohlgemuth, Michael, 2011. "The boundaries of the state," Freiburg Discussion Papers on Constitutional Economics 11/3, Walter Eucken Institut e.V..
  6. Berentsen, Aleksander & Rocheteau, Guillaume, 2002. "On the efficiency of monetary exchange: how divisibility of money matters," Journal of Monetary Economics, Elsevier, vol. 49(8), pages 1621-1649, November.
  7. Aleksander Berentsen & Guillaume Rocheteau, . "Money and the Gains from Trade," IEW - Working Papers 100, Institute for Empirical Research in Economics - University of Zurich.
  8. Brandi, Clara & Wohlgemuth, Michael, 2006. "Strategies of Flexible Integration and Enlargement of the European Union: a Club-theoretical and Constitutional Economics Perspective," Freiburg Discussion Papers on Constitutional Economics 06/7, Walter Eucken Institut e.V..

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