This paper examines the extent to which a neo-functional or
intergovernmental process may be at work in the evolving European
Union (EU). Indeed, it investigates two models of governance that relate
to these theories to allow an understanding of decision-making procedures
at the EU level. An analysis of a service sector (the life insurance
industry) has been undertaken in respect of its relationships with the EU
decision-making institutions and it is considered that through self-interest,
national life insurance industries attempt to create a Single European
Market (SEM) in their own image.
Following a discussion of the theoretical implications of neofunctionalism,
intergovernmentalism, state-centric and multi-level
governance the paper undertakes a comparative analysis of the Member
States' regulatory regimes and combines this study with the results of a
survey conducted in 1994 to create a regulation matrix: this gives an
understanding of different regulatory environments in twelve Member
States. Secondly, the survey results illustrate the separate kinds of
regulatory environments that Member States wanted the single market to
be and offers an explanation of how different understandings of
legislation and regulatory structures may have been compromised.
Additionally, a second survey and a number of interviews indicate
decision-making procedures at the EU level and these are illustrated
through a decision-making model. Finally, the extent of neo-functional
and intergovernmental processes are posited in relation to the findings.
In theoretical terms the paper identifies aspects of both neo-functionalism
and intergovernmentalism. Indeed, it considers that multi-level
governance is the predominant means of decision-making at the EU level.
On a practical level, the paper indicates implications for the financial
services sector in relation to participation in the EU decision-making
process. Fundamentally, the paper identifies a process in a situation that
relates to financial services and tentatively makes generalisations in
respect of other industries within the financial services sector