The shadow of the European Council. Understanding legislation on economic governance

This article analyses the role of the European Council in two key legislative packages on economic and budgetary coordination, the Six-pack and the Two-pack, which were negotiated under the ordinary legislative procedure. It assesses how and to what extent the key actor in the literature on the new intergovernmentalism – the European Council – is able to curb the powers of the supranational institutions – the Commission and the European Parliament – in a policy area where the community method has been applied since the Treaty of Lisbon. It tracks the development of the legislative negotiations – from the stages preceding the Commission’s proposal to their conclusions, relying on official documents, press reports and 30 original interviews with key decision-makers. The strong role of the European Council both as an agenda-setter and in the legislative negotiations stands out, and suggests that the implications of new intergovernmentalism may well extend beyond intergovernmental decision-making processes.