The theoretical framework of new intergovernmentalism holds that policy-making within major new areas of EU activity which were created with the Maastricht Treaty or thereafter follow a different logic than policy-making within core domains of single market integration. Notably, senior intergovernmental decision-making forums such as the European Council and sectoral groups of ministers and senior civil servants who meet frequently and decide mainly by consensus are taking the lead in processes of policy initiation, adoption and execution whereas the role of traditional supranational institutions is modified substantially, if compared to classic community method governance. The economic governance framework of Economic and Monetary Union (EMU) and the EU's Common Foreign and Security Policy (CFSP) represent the two most prominent examples of these new areas of EU activity. Moreover, both policy areas have moved centre stage in EU politics. The institutional dynamics with EMU economic governance and CFSP have dominated recent processes of wider EU institutional reform including, most prominently, the Lisbon Treaty. Ironically, the parallel institutional developments in both policy areas and the consequences of EU integration have been largely ignored by the literature. This paper compares processes of institutional change in both policy areas over the course of the last two decades of European integration and tests the core hypotheses of the new intergovernmentalism on the centrality of intergovernmental policy deliberation and the modified role of supranational actors as well as the emergence of de novo institutions.
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