Policy making in central economic policy domains has been ‘de-politicised’, especially in the UK.
But de-politicisation can be reversed. We examine a major economic policy area, regulation of cross-border mergers and acquisitions (CBMAs) in Europe, and in particular, the UK and Italy. We find considerable institutional changes that re-politicise policy. These institutional changes are commonly ascribed to recent national security fears of China, economic vulnerabilities caused by the Covid crisis and the associated rise of new industrial strategies. Yet, we find that the move from de- to re-politicisation predates these recent factors. Instead, national identity questions were an important turning point, seen in takeovers by other Western rather than Chinese companies and in domains relatively far from national security, including chocolates and dairy products. The process was driven by a coalition of Right-wing politicians and trade union and producer groups. We show that re-politicisation has taken place not only in a ‘statist’ or ‘mixed market economy’ such as Italy, but also in an archetypal liberal market economy such as the UK. We suggest that identity questions can play a significant role in the turning point from de-politicisation to re-politicisation. Finally, we argue that laying behind the change of direction, a new and surprising political coalition may use nationalist rhetoric to justify re-politicisation.
Bernardo Rangoni is Fellow in European and Comparative Political Economy at the European Institute of the London School of Economics (LSE). He has been awarded Marie Curie as well as Max Weber Fellowships. He first arrived at the LSE to study for an MSc Regulation, building upon the education initially received in his home country. After visiting Yale Law School, he earned a PhD in Political Science from the LSE. His research concentrates on the political economy of regulation, especially in competition, energy, digital, financial and pharmaceutical domains in Europe. It has appeared (or is forthcoming) in Governance, Regulation & Governance, Journal of European Public Policy, a Handbook on Theories of Governance, and his first monograph – with Oxford University Press.
Mark Thatcher is Professor of Politics, Department of Political Science, Luiss University, Rome. Previously, he was Professor of Comparative and International Politics at LSE, where he is currently a visiting professor at the European Institute. His research interests lie in comparative public policy and regulation in Europe. He has examined the creation and development of national and EU regulatory agencies and networks. Recently he has worked on Western policies towards Sovereign Wealth Funds. In addition, he is studying comparative policies towards cultural heritage, at both the national and EU levels. Recent publications include: ‘Constructing the EU’s political identity in policy making’ (with Sabine Saurugger) and ‘Direct and market governance paths for the creation of an EU political identity: cultural heritage policy’, both in Comparative European Politics 17(4), 2019; ‘The state and historic buildings: preserving ‘the national past’ and ‘State development patterns and cultural nationalism: preservation policies for historic buildings in France and Italy’, both in Nations and Nationalism 24 (1), 2018; ‘Overseas state outsiders as new sources of patient capital: Government policies to welcome Sovereign Wealth Fund investment in France and Germany’ (with Tim Vlandas), Socio-Economic Review, (2016), 14(4); ‘European Commission merger control: Combining competition and the creation of larger European firms’, European Journal of Political Research 53(3) (2014); Resilient Liberalism in Europe’s Political Economy (co-edited with Vivien Schmidt), Cambridge University Press, 2013.
Mareike Kleine is Associate Professor in EU and International Politics at LSE.