International political economy and the European Union

Abstract

This chapter discusses how insights from international political economy (IPE) research, and political economy research more generally, improve our understanding of the constraints under which European countries cooperate and interact in the context of the European Union. IPE is the study of how domestic and international politics shapes the economy beyond the nation state, and how the international economy shapes both domestic and international politics. This chapter reviews some of the areas where IPE research has made significant contributions to our understanding of EU politics and economics, discusses historical developments and current policy debates, and sketches out the main challenges and promising avenues for EU-related IPE research. A key insight is that the political economy trade-offs and political conflicts confronting EU policymakers and national politicians in EU member states are not entirely novel, but rather parallel similar trade-offs and struggles across space and time in the global economy. IPE research holds significant potential for understanding and explaining key developments and outcomes in the EU, and recent research that draws on political economy research to understand the politics of trade, monetary, and other key issues in the European context presents a promising perspective for more fruitful interactions in the future.