"The Influence of Organized American Business on Public Policy in the European Union: The Transition from Outsider to Insider"

Jacek, Henry J. (1995) "The Influence of Organized American Business on Public Policy in the European Union: The Transition from Outsider to Insider". In: UNSPECIFIED, Charleston, South Carolina. (Unpublished)

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Abstract

This paper asks the question how and why did American business become important in public policy-making in the European Union (EU). Scholars studying the political role of business in Europe agree that organized American business is now very important in policy-making. This wasn't always so. What happened and why? The working hypothesis of this paper is that the form of EU institutions and the EU policy process are compatible with the political experience and political organization of American business. The first test of the hypothesis involves an agreement on the most important policy characteristics of the EU. The paper identifies three factors; increasing complexity, a constantly changing policy process and an increasing number of policy actors. The major test of the hypothesis involves adopting an actor-centered approach to American business in Europe. This leads us to ask five major questions, first, over the period 1970-1975, what has American business considered as its strategic organizational and policy options? Second, what has American business seen as its significant limitations and opportunities in pursuing its strategy as an active influencer of European public policy.(9) Third, how did American business assess the benefits and costs of the various possible behavior open to it as it pursued its pan-European image while downplaying its Americaness by projecting itself as a good European citizen? Fourth, what inducements did its collective organizations have to offer their members in order to bring about such effective coordination. Finally, how did American business respond to the consequences that flowed from policy choices it made at various times? The answers to these questions confirm the research hypothesis, although more research and data is definitely needed. The major American success is on standards and harmonization affecting business. American business knows how to manage the EU. regulating process and 60 per cent of all European regulatory decisions on business are made in Brussels. But there are major failures as well. First, American business has not been able to change the pattern of European industrial relations. Second, it has not been able to change the EU rules on corporate governance so these rules are more compatible with American patterns.

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