TRENDS AND DYNAMICS OF INSTITUTSIONAL REFORMS IN THE EUROPEAN UNION

Abstract

Abstract. The article deals with the process of structural reforms and institutional development
within the EU at the time of the continuing global economic crisis. It focuses on the debates
surrounding the search of viable models for solving management problems related to the establishment
of the Economic and Monetary Union. There are two possible scenarios of differentiation
within the EU which provide for the further integration based on existing EU treaties
and/or on the basis of new agreements conducted by just a part of the EU member states.
Proposed institutional reforms of the EU governing bodies and institutions reflect differences
in attitudes of the Brussels bureaucracy and governments of some EU countries. Processes of
institutional change affect budgetary management, coordination of economic policies of the EU
and its member states, management of foreign economic activity, humanitarian and social issues
as well as the formation of a more consolidated common foreign policy. Signing of the interstate
Treaty on stability, coordination and governance in the Economic and Monetary Union (TSCG,
2012) was an important measure designed to accelerate the harmonization of economic policies
of the EU member states.
Economic and political strengthening of Germany is one of the main factors influencing the
direction and dynamics of institutional reforms in the EU. The rapid introduction of federal circuits
and principles however does not seem realistic. Many EU member states prefer to preserve
autonomy in decision making and selective participation in a number of the EU common
policies, mechanisms and programs. Signing of the Lisbon version of the EU founding treaties
implied limitation and reduction of the principle of «mixed competence», which was implemented
in many areas of the EU policies, and the extension of the exclusive competence of the
Union. However, given the increasing trends of multipolarity and the growing influence of Germany, the political circles of different EU member states express intensified sentiments in favor of preserving the role of national governments in decision making and opportunities for their foreign policy maneuvering.

Key words: EU, European Commission, eurozone, institutional dilemma, integration, differentiation,
Stability and Growth Pact, TSCG, Economic and Monetary Union.