Legislative Bargaining in the European Union

Abstract

We analyse legislative bargaining in the European Union. In our model, EU member states bargain over the policy choices underlying legislation and over its `template': (1) the degree of discretion at the application stage, and (2) whether the discretionary power is delegated to the Commission (or retained by the Council). Our analysis classifies member states into `large', `medium-sized' and `small' based on their voting power in the Council. Large member states seek to adopt open-ended legislation in which the Council retains the discretionary power. Medium-sized ones prefer `clear rules' without discretion. Small member states prefer open-ended legislation in which discretion is delegated to the Commission. We discuss the Stability and Growth Pact (SGP) as an illustrative example.