How do ideas shape national preferences? The Financial Transaction Tax in Ireland
|Title:||How do ideas shape national preferences? The Financial Transaction Tax in Ireland||Authors:||Hardiman, Niamh
|Permanent link:||http://hdl.handle.net/10197/9572||Date:||17-Oct-2017||Online since:||2018-11-30T09:35:51Z||Abstract:||European countries have been required to formulate a national preference in relation to the EU Financial Transaction Tax. The two leading approaches to explaining how the financial sector makes its views felt in the political process – the structural power of the financial services sector based on potential disinvestment, and its instrumental power arising from direct political lobbying – fall short of providing a comprehensive account. The missing link is how and why policy-makers might be willing to adopt the priorities of key sectors of the financial services industry. We outline how two levels of ideational power might be at work in shaping outcomes, using Ireland as a case study. We argue firstly that background systems of shared knowledge that are institutionalized in policy networks generated broad ideational convergence between the financial sector and policymakers over the priorities of industrial policy in general. Secondly, and against that backdrop, debate over specific policy choices can leave room for a wider range of disagreement and indeed political and ideational contestation. Irish policymakers proved responsive to industry interests in the case of the FTT, but not for the reasons normally given. This work seeks to link literatures in two fields of inquiry. It poses questions for liberal intergovernmentalism in suggesting that the translation of structurally grounded material interests into national policy preferences is far from automatic, and argues that this is mediated by ideational considerations that are often under-estimated. It also contributes to our understanding of how constructivist explanations of policy outcomes work in practice, through a detailed case study of how material and ideational interests interact.||Funding Details:||European Commission
European Commission Horizon 2020
|Type of material:||Working Paper||Publisher:||University College Dublin. Geary Institute||Series/Report no.:||UCD Geary Institute Discussion Paper Series; WP2017/10||Copyright (published version):||2017 the Authors||Keywords:||Economic integration; Multinational firms; International business; Globalization; Business taxes and subsidies; Intergovernmental relations||Other versions:||https://ideas.repec.org/p/ucd/wpaper/201710.html||Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Geary Institute Working Papers|
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