Neo-Functionalism Reassessed: Suggesting a Synthesis of European Integration Theory

How are we to understand processes of European integration? There are a number of theories that attempt to shed-light on the integration process each considering that a particular variant of social existence provides the best means of interpretation. Intergovernmentalism proposes that the only way to understand European integration is through the actions of nationstates. Neo-functionalism emphasises the role of sectors and sub-national actors in the international economy and the extent to which a supranational authority would engender economic benefit and political acceptance of the process. Consequently, these factors add impetus to further integration in other sectors until a single economy emerges. Indeed, these general theories provide the basis for two models of governance at the European Union (EU) level. State-centricism adheres to intergovernmental understandings of European integration and multilevel governance elements of both neo-functional and intergovernmental propositions. Through a study of the insurance industry this paper investigates the extent of sector involvement in EU decision-making and in doing so, analyses the utilisation of sub-national actors, supranationality and spillover in the process of European integration