Agencification revisited: trends in consolidation of central government administration in Europe

Abstract

Agencification was one of the main pillars of the New Public Management reforms in Europe in the 1980s and 1990s. The strong increase in the number of agencies and the extension of their autonomy (especially with regard to independent regulatory agencies) significantly changed the organizational architecture of governments. However, the review of organizational reforms implemented over the past two decades in European administrative systems demonstrates a trend towards the rationalization and consolidation of the agency landscape. This article provides insight into major forms and patterns of consolidation, including comprehensive, cross-sectoral agency rationalization initiatives and more selective reforms regarding specific policy areas or types of government functions. It also explores the background of the consolidation reforms, confirming that economic pressures affecting governments in the era of austerity played a crucial role in redefining the position of agencies in governments’ organizational set-up. Points for practitioners Agencies remain the main vehicle for policy implementation across Europe but the trend towards de-agencification emerged in the decade of the 2010s, represented by both comprehensive, cross-sectoral initiatives reducing the agency stock, and consolidations in specific policy areas or covering agencies of specific types. De-agencification was triggered by the 2008 global financial crisis that increased the pressure on the reduction of administrative expenditure. To a lesser extent, it was a reaction to the adverse effects of agencification, such as coordination and steering problems, or the ambiguous impact of agencification on the efficiency of the public administration.