Volume 50 (2013) / Issue 1
The article discusses the institutional framework for three important economic policies - macroeconomic governance, cohesion policy and innovation policy - and examines their relationship with the generally inauspicious economic outlook of the European Union. It explains in particular how the newly established excessive imbalance procedure has been practicallydisabled by political forces, why the regions benefitting from the cohesion policy for a long time have seriously contributed to the ongoing economic crisis, and why the EU innovation policy finds it very difficult to support a harmonious development of the Union.The article also pays attention to thosedevelopmentswhich are particularly important for economic growth in the EU but still remain outside the mainstream economic policies. Necessary adjustments establishing a more credible framework of economic prosperity - the contribution argues - are primarily hindered by domestic politics and democratic dynamics rather than by Treaty constraints.Economic prospects of the EU will remain gloomy unless this political constitution is properly altered.
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