The paper “ The Rise of the Regulatory State in Europe by Giandomenico Majone” is a well-turned example of an article on politics. The publication of the ‘ The rise of the regulatory state in Europe’ by Giandomenico Majone is considered to be a landmark in the history of European politics. As it is with this paper, the European politics students were introduced with a new term of ‘ regulatory state’ . Two important trends were featured in this paper that has become the central thesis for European politics over the past twelve years.
Majone argues that the currently used tools of redistribution and stabilization gave way to modern means of regulation and legal authority. Another major shift that the paper propagated is the expansionist role of the European Commission (EU), which has exerted its influence to pass various policies in the region and globally. The growing power of the EU has been attributed to the absence of any such organization in the region. With the publication of Majone’ s paper, the statement that the world is at present living in a regulatory state era has become common.
Some of the features that describe this phenomenon are the concept of making public services privatized, creating regulatory bodies with quasi-autonomous power and developing relations in the framework of the policy domain. One of the most important discussions that paper undertakes is the concept of a regulatory state. As per Majone, regulatory states have the power to create rules for the market to follow, which, therefore, helps in steering the market dynamics as well through the formation of various regulatory bodies, rules and regulations as well as commissions. Such a state intervenes in the market indirectly through various regulatory offices.
This is distinct from the concept of ‘ positive states’ wherein the governments intervened openly into the market and the economy and regulated the market through various public enterprises and state-owned industries and projects. The other major point Majone makes in this paper is the rise of the EU to a position of prominence world-over. This paper would review Majone’ s landmark paper and focus primarily on the two trends propagated by Majone in his ‘ The rise of the regulatory state in Europe’ . EU as a powerful regulatory authorityMajone claims that the EU is actually a ‘ regulatory state’ and proves it through a normative and theoretical manner.
As per Majone, regulation takes place to control market failures, and therefore, regulations can define as policies that produce results that are Pareto-efficient, wherein everyone involved in the market is benefited. Therefore, such a situation is not redistributive, wherein the market has both losers and winners. The governments that formulate the EU also have regulated policies that are competent at the regional level but are kept deliberately away from the domestic policies.
Some of these regulated policies help in developing a single market for the region, standardizing the products, creating safety and health regulations and formulating monetary policies. The EU can be termed as a regulator agency, which works just like any other regulatory agency in Europe. It can be similar in its operation like that of a telecom agency, bank, court, etc. However, due to its regulatory nature, Majone states that the EU should not be democratic in its approach to formulate various policies.
Majone, G.D, (1997) "The 1Riѕe of the Regulatoґy Ѕtate in Euґope" fґom Weѕt Euґopean Politicѕ 17 (3) pp.77-101