Private regulation and European integration : evidence from the payments, professional services and housing sectors

Defence date: 9 May 2012Examining Board: Professor Fabrizio Cafaggi, European University Institute, Florence (Supervisor); Professor László Bruszt, European University Institute, Florence; Professor Katharina Pistor, Columbia University, New York; Professor Marek Safjan, European Court of Justice, Luxembourg.This thesis analyzes the role of private regulation in European integration. Taking three selected sectors – payments, professionals and housing – as a testing ground, this thesis portrays the actual functioning of private regulation in the EU and looks at the mutual correlation between the process of European integration and private regulation. The study follows along the European and national lines in three countries: Germany, Poland and the UK. The role of private actors in European integration has not been duly acknowledged in the Treaties, and there has been little scope for the participation of private regulators among the institutions pursuing European policies. However, private regulation has always been present in Member States, and fragmented private rules could constitute barriers to the internal market. Despite the lack of an institutional framework for European private regulation, the launch of European integration has triggered the transformation of business and professional associations in Europe. The literature, however, has focused on the role of interest associations in affecting public policy processes. Less attention has been given to the role of private organizations in formulating rules governing market transactions. This thesis shows that regulatory functions performed by private organizations – that is, rulemaking, monitoring and enforcement – have gradually been shifted towards the supranational level. This process has intensified in recent years due to increased efforts by the European Commission to enroll private organizations in the integration process and an increased focus on the completion of the internal market. At the same time, the role of national private regulators has remained significant. Private rules and enforcement practices are of great relevance is the higher as they do not only complement publicly made rules but very often affect the content of such rules