Moving Targets

Abstract

After 10 years of controversial negotiations, in 1996 the European Union finally took action to liberalize the electricity supply industry. Given the intensity of bilateral contacts between France and Germany, the reform has often been presented as a straightforward intergovernmental deal. This article argues that the French-German deal was only the tip of the iceberg. Perceptions of national interests evolved considerably in both countries. The most important cause for these changes was at the European Union (EU) level, not at the national level. The institutional dynamics of EU negotiations induced a series of preference changes and key political realignments at the national level.