Bottom-Heavy Federalism: The E.U. Stability and Growth Pact

With Russia still in Ukraine in 2025, the E.U. faced pressure to enact more laws and regulations at the federal, yes, federal level to reap the benefits of collective, coordinated action. Although the fear that Russia might invade one or more of the eastern E.U. states was probably unrealistic, given that Russia was still mired in Ukraine, the crisis of an invasion so close to the E.U. could legitimately serve as a “wake-up call” for the federal and state officials in the E.U. to get their federal system of dual sovereignty in order. The ability of state governments to successfully evade the state deficit and debt limits in the federal Stability and Growth Pact and the flipside of the Commission’s weakness can be read as indicative that more work is needed to get to a viable federal system. The states have been able to weaken the limitations successively over years, including by leveraging the fear of invasion by Russia as a call for more defense spending at the state rather than at the federal level.

The full essay is at "Bottom-Heavy Federalism."

E.U. Defense: The State Governments Exploit a Conflict of Interest

Sometimes lemons can make use of political gravity to become lemonade. Of course, behind the lemons are human beings, who are of course innately economizers, political actors and moral agents. When accosted by proposals that additional governmental sovereignty be delegated from state governments to the federal level, state-government officials feeling the gravitas of narrow self-interest are inclined to resist even if the transfer is in the political and economic interest of the union as well as all of its states. I am of course describing a drawback that goes with state governments having too much power in a federal system, whose interests are not always identical with those of a particular state or even those that pertain to the state level as distinct from the federal level. I submit that a federal system in which such dynamics are ignored in favor of focusing on particular issues, such as the E.U.’s increased need for defense given Russia’s unprovoked invasion of Ukraine, can gradually slip “off the rails” toward dissolution or consolidation. By ceding the E.U. itself (i.e., the federal level) additional authority, including for revenues and expenditures, the European Council, which is composed of the state governors, could “kill two birds with one stone,” as that saying goes. Those birds would be unbalanced state power in the E.U. at the expense of a common purpose, and Russian President Putin’s military adventurism in Eastern Europe.

The full essay is at "E.U. Defense."