1992: Recasting the European Bargain

TLDR

The 1992 European Communities initiative sought to eliminate barriers to the free movement of people, capital, and goods, driven by elite bargains and a shift in global power that prompted a reassessment of Europe's role. The project was propelled by Commission leadership supported by a transnational business coalition and a changed domestic political context in key countries, including failed national strategies and leftward transformations. These changes are expected to reshape regional business competition and politics and influence the global economic system.

Abstract

Under the banner of “1992,” the European Communities aim to remove all barriers to the movement of persons, capital, and goods among the member countries. The 1992 movement comprises a set of bargains among European elites. Structural change (relative U.S. decline and Japanese ascent) provoked a rethinking of European roles and interests. The 1992 project emerged as a response because of: (1) the policy leadership exercised by the Commission of the European Communities, with support from a transnational business coalition; and (2) a changed domestic political context in several key countries—specifically, the failure of previous national economic strategies and the transformation of the left. The changes under way will alter regional business competition and politics and will affect the world economic system.