Clift, Ben. (2013) Economic patriotism, the clash of capitalisms, and state aid in the European Union. Journal of Industry, Competition and Trade, Volume 13 (Number 1). pp. 101-117. ISSN 1566-1679

Text WRAP_Clift_0370082-pais-270312-economic_patriotism__state_aid_final.pdf - Accepted Version Restricted to Repository staff only until 1 March 2014. Download (360Kb)

Abstract

This article analyses the political economy of state aid in the European Union (EU) using the concepts of economic patriotism and models of capitalism. State aid is analysed as a form of economic patriotism, which is conceived here as economic interventions which seek, by a number of means, to advance the perceived economic self-interest of particular groups and actors (firms, workforces, or sectors) defined according to their territorial status. The article argues that the paradox of neo-liberal democracy generated by liberal international markets, overlapping economic governance regimes (such as the EU and the World Trade Organisation), and nationally delimited political mandates presents new problems for policy-makers attempting economic interventions like state aid. Forms of economic patriotism are partly shaped by national institutional and social configurations and state traditions. Within EU economic governance, this generates a ‘clash of capitalisms’ whereby liberal EU anti-trust and competition policy norms proscribe certain state aid and industrial policy measures favoured by some European states. As traditional industrial policy becomes decreasingly viable, new modes of economic patriotic interventionism are enacted within contemporary processes of market-making, and the re-regulatory activity framing European markets. The paper focuses on French state aid responses to the global economic crisis, noting how the retreat of neo-liberal ebullience within the EU provides a conducive environment for resurgent French dirigiste approaches to state aid, indicating that the politics of economic patriotism and state aid will continue to be important features of the European political economic landscape in the years ahead.

Item Type:	Journal Article
Subjects:	H Social Sciences > HC Economic History and Conditions J Political Science > JZ International relations
Divisions:	Faculty of Social Sciences > Politics and International Studies
Library of Congress Subject Headings (LCSH):	Government aid -- European Union countries, European Union -- Economic aspects
Journal or Publication Title:	Journal of Industry, Competition and Trade
Publisher:	Springer
ISSN:	1566-1679
Date:	March 2013
Volume:	Volume 13
Number:	Number 1
Page Range:	pp. 101-117
Identification Number:	10.1007/s10842-012-0138-5
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Restricted or Subscription Access
References:	Albert M (1991) Capitalisme contre Capitalisme. Editions de Seuil, Paris. Alcouffe C (2000) Judges and CEOs: French Aspects of Corporate Governance. European Journal of Law and Economics, 9:134-5. Blanchard O-J, Muet P-A (1993) Competitiveness Through Disinflation: An Assessment of French Macro-economic Strategy. Economic Policy 16:12-50. Cafruny, AW, Ryner M (Eds.) (2003) A Ruined Fortress? Neoliberal Hegemony and Transformation in Europe. Rowman & Littlefield, Lanham Md. Cafruny AW, Ryner M (2007) Europe at Bay: In the Shadow of US Hegemony. Lynne Rienner, Boulder Colo. Callaghan H, Hoepner M (2005) European Integration and the Clash of Capitalisms: Political Cleavages of Takeover Liberalisation. Comparative European Politics 3: 307-332. Clift B (2003) The Changing Political Economy of France: Dirigisme under Duress. In Cafruny A & Ryner M (eds.) A Ruined Fortress? Neo-Liberal Hegemony and Transformation in Europe. Rowman & Littlefield, Lanham, Md, pp.173-200. Clift B (2004) The French Model of Capitalism: Still Exceptional? In Where Are National Capitalisms Now? Palgrave, Basingstoke, pp 91-110. Clift B (2007) French Corporate Governance in the New Global Economy: Mechanisms of Change and Hybridisation within Models of Capitalism. Political Studies 55: 546-567. Clift B (2008) Economic Policy. In Cole, A Le Galès, P & Levy, J (eds.) Developments in French Politics 4. Palgrave, Basingstoke, pp. 191-208. Clift B (2009) Second Time as Farce? The EU Takeover Directive, the Clash of Capitalisms and the Hamstrung Harmonisation of European (and French) Corporate Governance. The Journal of Common Market Studies 47: 55-79. Clift B, Woll C (2009) Economic Patriotism: The Clash between Political and Economic Boundaries. Paper prepared for the Warwick/Sciences Po Paris ‘Economic Patriotism: The Limits of the Liberal Market’ Project Workshop, Paris, June 18-19th. Cohen E (1996) La Tentation Hexagonale. Fayard, Paris. Costa O, de Maillard J, Smith A (2007) Vin et politique : Bordeaux, la France, la mondialisation. Presses de Sciences Po, Paris. Crane G (1998) Economic Nationalism: Bringing the Nation back in. Millennium 27: 55-75. Crouch C, Streeck W (eds.) (1997) The Political Economy of Modern Capitalism. Sage, London. Crouch C, Legalès P (2009) Cities as National Champions. Paper prepared for the Warwick/Sciences Po Paris ‘Economic Patriotism: The Limits of the Liberal Market’ Project Workshop, Paris, June 18-19th. Deeg R, Jackson G (2007) Towards a more dynamic Theory of Capitalist Variety. Socio-Economic Review 5: 149-180. Denord F (2007) Néolibéralisme version français. Editions Demopolis, Paris. Dudouet, F-X & Grémont, E (2010) Les grands patrons en France : du capitalisme d’état à la financiarisation. Editions lignes de repères, Paris. European Commission (2007) Commission Staff Working Document: Report on the implementation of the Directive on Takeover Bids. http://ec.europa.eu/internal_market/company/docs/takeoverbids/2007-02-report_en.pdf European Court of Justice (2002) Case C-483/99: Judgment of the Court, 4 June 2002 Commission / France : Rights attaching to the ‘golden share’ held by the French Republic in Société Nationale Elf-Aquitaine, Press Release ECJ/02/49 http://europa.eu/rapid/pressReleasesAction.do?&language=EN&reference=CJE/02/49 Economist Intelligence Unit (2010) Industry Report: Financial Services: France. Economist Intelligence Unit: London Gamble A (2006) The European Disunion. British Journal of Politics and International Relations 8: 34-49. George S (1996) The European Union, 1992 and the Fear of ‘Fortress Europe’. In Gamble A, Payne A (eds.) Regionalism and World Order. Macmillan, Basingstoke, pp. 21-54 Grignon F (2004) Sénat rapport d’information fait au nom de la commission des Affaires économiques et du Plan (1) par le groupe de travail (2) sur la delocalisation des industries de main d’oeuvre. No. 374, 23 June, La documentation française, Paris. Hall P, Soskice D (2001) An Introduction to Varieties of Capitalism. In P. Hall & D. Soskice (eds.), Varieties of Capitalism. Oxford University Press, Oxford, pp. 1-70. Hannah L (1983) The Rise of the Corporate Economy. Methuen, London. Hay C (2004) Common Trajectories, variable paces, divergent outcomes? Models of European Capitalism under conditions of complex economic interdependence. Review of International Political Economy 11: 231-62. Hayward, J (1995) ‘Introduction: Europe’s Endangered Industrial Champions’ in Hayward (ed.) Industrial Enterprise and European Integration. Oxford University Press, Oxford,pp. 1-22. Heilbroner R (1992) The Worldly Philosophers. Touchstone, New York. Helleiner E (2002) Economic nationalism as a Challenge to Economic Liberalism? Lesson from the 19th Century. International Studies Quarterly 46: 307-29 Hoepner M, Shafer A (2007) A New Phase of European Integration: Organized Capitalisms in Post-Ricardian Europe. MPIfG Discussion Paper 7/4. Max Planck Institute, Cologne. Hooghe L, Marks G (1999) The Making of a Polity: The Struggle over European Integration. In H. Kitschelt et al (eds.) Continuity and Change in Contemporary Capitalism. Cambridge University Press, Cambridge, pp. 70-97. Howell C (2009) The Transformation of French Industrial Relations: Labor Representation and the State in a Post-Dirigiste Era. Politics & Society 37:229-256. Hunt BC (1936) The Development of the Business Corporation in England, 1800-1867. Harvard University Press, Cambridge MA. Jabko N (2006) Playing The Market: A Political Strategy for Uniting Europe, 1985-2005. Cornell University Press, Ithaca. Jackson G (2001) "The Origins of Nonliberal Corporate Governance in Germany and Japan," in Streeck W and Yamamura, K ed., The Origins of Nonliberal Capitalism: Germany and Japan Cornell University Press, Ithaca, pp. 121-170. Kassim H (1997) French autonomy and the European Union. Modern and Contemporary France 5: 167-180. Lehmbruch G (2001) The Institutional Embedding of Market Economies: The german “Model” and its Impact on Japan. In Streeck W and Yamamura, K (eds.) The Origins of Nonliberal Capitalism: Germany and Japan. Cornell University Press, Ithaca, pp. 39-93. Levy J (1999) Toqueville’s Revenge: State Society and Economy in Contemporary France. Harvard University Press, Cambridge MA. Levy J (2006) The State after Statism: From Market Direction to Market Support. In Levy J (ed.) The State After Statism. Cambridge: Harvard University Press, pp. 1-30. Lordon F (1998) The Logic and Limits of Désinflation Competitive. Oxford Review of Economic Policy 14: 96-113. Marquand D (1988) The Unprincipled Society. Fontana Press, London. Massoc E, Jabko N (2010) La France Face A La Crise Bancaire De 2008 : Les Limites D’une Rupture. Unpublished manuscript, currently under review at Revue Française de Sciences Politique. Morin F (1998) Le modèle française de détention et de gestion du capital: analyse, prospective et comparaisons internationales. Editions de Bercy : Paris. Morin F (2000) A Transformation in the French Model of Shareholding and Management. Economy and Society 29:36-53. OECD (2008) Competitive Cities. OECD, Paris. OFCE (2006) L’économie française 2007. La découverte, Paris. OFCE (2009) Merites et limites du Pacte automobile. Lettre de l’OFCE 308. Rosamond B (2002) Imagining the European Economy: ‘Competitiveness’ and the Social Construction of ‘Europe’ as an Economic Space. New Political Economy 7:157-178. Roustan, M. (2004) Assemblée nationale rapport d’information fait au nom de la délégation a l’aménagement et au développement durable au territoire sur la désindustrialisation du territoire. No. 1625, 27 May, La documentation française, Paris Sarkozy N (2007) Ensemble tout devient possible. Presidential Election Manifesto Schmidt V (1996) From State to Market? The Transformation of French Business and Government. Cambridge University Press, Cambridge. Schmidt V (1997) Running on empty: the end of dirigisme in French economic leadership. Modern and Contemporary France 5:229-41. Schmidt V (2003) French capitalism transformed, yet still a third variety of capitalism. Economy and Society 32:526-554. Shonfield A (1969) Modern Capitalism: The Changing Balance of Public and Private Power. Oxford University Press, Oxford. Tivey LJ (1978) The Politics of the Firm. St. Martin's Press, New York. Viénot M (1995) Rapport sur le conseil d’administration des sociétés cotées. Revue de Droit des Affaires Internationales 8: 933-45. Vitols S (2001) Varieties of Corporate Governance : Comparing Germany and the UK. In P. Hall & D. Soskice (eds.), Varieties of Capitalism. Oxford University Press, Oxford, pp. 337-360. Woo-Cummings M. (1999) Introduction: Chalmers Johnson asnd the Politics of Nationalism and Development. In Woo-Cumings (ed.) The Developmental State. Cornell University Press, Ithaca, pp. 235-275. Wright V (1997) Introduction: la finance du dirigisme? Modern and Contemporary France 5:151-153. Zysman J (1983) Government, Markets, Growth: Financial Systems and the Politics of Industrial Change. Cornell University Press, Ithaca.
URI:	http://wrap.warwick.ac.uk/id/eprint/43616

Request changes to a record

Actions (login required)

View Item