The limits of Europeanization: regulatory reforms in the Spanish and Portuguese telecommunications and electricity sectors

Abstract

As said, we examine the impacts of Europeanization on both nations and sectors. First, we look at the Europeanization of governance as it is reflected at the level of the institutions of the state in Spain and Portugal and specifically in the role of the regulatory authorities, their autonomy and their relations with the ministries. Second, we analyse the Europeanization of markets as it is reflected in the processes of privatization and the creation of competitive and open environments within and across national borders. We suggest that, if ‘Europeanization matters’, then the creation of EU regimes will lead to: (a) the faster and smoother advance of liberalization than otherwise; (b) similar patterns of market integration and similar institutions of governance across the two countries; (c) varying degrees of liberalization depending on the extent to which the specific European regime promotes liberalization. Specifically, we may expect the lesser degree of delegation to the EU in electricity (intergovernmental regime) to be reflected in a lesser degree of market liberalization in electricity than in telecoms where delegation to the EU regime was more extensive (supranational regime); (d) a lesser degree of neo-mercantilism (promoting national champions and interests) with the advance of Europeanization; and (e) new strategies of internationalization of market operators, corresponding to the opportunities and constraints accompanying the progress of Europeanization. The methodology and research design that we adopt in examining the process of change in light of the above criteria is discussed in the next section of the paper