The Nordic States and European Unity 9781501725777

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The Nordic States and European Unity

A volume in the series

Cornell Studies in Political Economy EDITED BY PETER j. KATZENSTEIN

A full list of titles in this series is available at www.cornellpress.edu.

The Nordic States and European Unity CHRISTINE INGEBRITSEN

CORNELL UNIVERSITY PRESS Ithaca and London

Publication of this book was made possible, in part, by a grant from the University of Washington. Frontispiece: Danish agriculture, Finnish forestry, Swedish mining, Icelandic and Norwegian fisheries. Woodcuts in 0. Magnus's Historia (1555), reprinted in the Nordic Council, The Source of Liberty: The Nordic Contrilrntion to Europe, p. 194. Reprinted by permission of Uppsala universitetsbibliotek, Sweden. Cop}'Tight © 1998 by Cornell University All rights reserved. Except for brief quotations in a review, this book, or parts thereof, must not be reproduced in any form without permission in writing from the publisher. For information, address Cornell University Press, Sage House, 512 East State Street, Ithaca, New York 14850. First published 1998 by Cornell University Press First printing, Cornell Paperbacks, 2000

Printed in the United States of America Library of Congress Cataloging-in-Publication Data Ingebritsen, Christine. The Nordic states and European unity I Christine Ingebritsen. p. em. Includes index.

ISBN 978-0-8014-8659-3 (pbk.: alk. paper) 1. European Union-Scandinavia. I. Title. II. Series. HC240.25.S34,54 1998 33 7.1' 4 2-dc21

2. Europe-Economic integration.

97 -4 86 5 8

Cornell University Press strives to use environmentally responsible suppliers and materials to the fullest extent possible in the publishing of its books. Such materials include vegetable-based, low-VOC inks and acid-free papers that are recycled, totally chlorine-free, or partly composed of nonwood fibers. For further information, visit our website at www.cornellpress.cornell.edu.

Paperback printing

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To my parents, Karl and Shirley Ingelnitsen

Contents

Preface Abbreviations

ix xiii

Part I. Ovetview 1.

The Nordics and European Integration

2. Explaining Policy Choices

3

26

Part II. Changes in the Nordic Models 3· What's at Stake?

4· From Economic Interdependence to Political Integration

51 77

Part III. The Argument

5· International Security: Nordic Preferences Change 6. The Political Influence of Leading Sectors

93

112

Part W. The Implications

7· Votes Count, Resources Decide 8. The Nordic States in European Politics

167 184

Interviews in Scandinavia

tg8

Appendix International Direct Investment from and to Sweden Public Opinion, Sweden-EC

205 206

CONTENTS

The The The The

Single European Act Maastricht Treaty Edinburgh Protocol European Economic Area Agreement

Index

viii

207 208 210 211 213

Preface

This book is about Nordic economic and security policies. How did a group of exceptional states that have been a model to other societies adapt to the rapid and irreversible transformation of international politics between 1985 and 1995? The responses of Nordic governments were novel, and in many ways defied the expectations of experts in international relations and comparative politics. European unity-not the threat of a great power war-has become the foremost concern of these states. Although all Nordic governments pursued closer ties with the European Community (EC) after 1985, some faced far more formidable domestic political obstacles than others. This book contributes to a wider debate on the sources of state capacity. The capacity to resist deepening political cooperation with the EC varies within northern Europe, in ways unanticipated by scholars who focus on the position of the state or economy in the international system, or the role of international institutions, or the relative power of labor and business in domestic politics. Instead, the capacity of the state to pursue an integrationist strategy varies according to the political influence of leading sectors. Economic sectors are not uniformly affected by European policy coordination, and the experience of the Nordic states demonstrates these differences. The book shifts the focus away from institutions that are enduring and domestic to an understanding of institutions as sectoral and transnational. Sweden, Denmark, Norway, Iceland, and Finland have historically resisted the idea of European unity. How are the northern European states, so skeptical in the past, responding to the creation of a regional

PREFACE

system of governance? How are these states seeking to protect their borders against new security threats? These questions led me to Europe's northernmost comer for extensive interviews with representatives from the trade unions, government ministries, parliamentary committees, social movements, industry, interest organizations, and the military. I was guided in collecting data by the "most similar" case design: here was a group of small, export-dependent states, all confronting changes in international politics. Because of the compatibility of Danish, Finnish, Icelandic, Norwegian, and Swedish political systems, the Nordic subregion provides an ideal context for testing alternative hypotheses. I posed similar research questions in each state, and made seven separate visits to the area between 1989 and 1996. I have discussed the historic and contemporary relationship between each of the Nordic states and the European Community with numerous academic colleagues and policymakers in northern Europe. I have conducted more then one hundred interviews with experts in the five states and maintained contacts with foreign ministry representatives during the EC negotiations. As a recipient of a Norwegian Marshall Fund Grant, I observed Norway's EC referendum in November 1994 and conducted interviews in Oslo before and after the vote. While in residence at the Norwegian Institute of International Affairs in Oslo (1990-91), I interviewedjohanj0rgen Holst, former defense and foreign minister. Holst was particularly helpful in outlining the history of Norway's relationship to the Atlantic alliance and the reasons why Norway should no longer resist European unity. That interview was critical in developing my understanding of the security situation in the Nordic area, and I am grateful to have had the opportunity to discuss these issues with him. Ambassador Ulf Dinkelspiel, the chief negotiator for Sweden with the EC, and Lars Nyberg, EC adviser at the Swedish trade union movement (LO), provided detailed information about changes in foreign and economic policies in Sweden. Dinkelspiel documented Sweden's negotiating position in the formation of the EEA (European Economic Area) and as an applicant to the EC. Nyberg offered insights into changes in Swedish policy and the preferences of the trade union movement. Finnish defense experts Pauli Jirvenpaa and Tomas Ries described the eastern Nordic response to the post-1989 security environment and X

Preface

the revival of European integration. They provided helpful materials; they referred me to other knowledgeable people; and they introduced me to policy debates published in the Swedo-Finnish language daily Hufuudstadsbladet. The Danish International Studies Program (DIS) and the Center for Security and Disarmament (SNU) provided institutional support during my visit to Copenhagen. At the recommendation of Robert Rinehart, senior foreign policy adviser on Nordic affairs at the U.S. Foreign Service Institute, I contacted foreign policy experts Mary Dau and Svend Aage Christensen, who arranged meetings with prominent Danish policymakers and observers. Anders Urshkov introduced me to the Danish political science community and provided me with an office and computer facilities at the Danish International Studies Program. For this assistance and support I am extremely grateful. In Iceland, the foreign ministry accommodated many requests for information on government policy. I am also grateful to the embassy in Washington, D.C., for being so forthcoming with documents that outline official policy and Icelandic attitudes toward European integration. At the University of Washington, visiting Norwegian political scientist Henry Valen was one of the first to weigh in on the manuscript: "Remember geography, Ingebritsen!" were his words. We have continued to discuss the book on subsequent visits to Norway, and I am grateful to him for his input and encouragement. To Joel Migdal, the founder of the International Political Economy Program at the Henry Jackson School of International Studies and my mentor, I owe special thanks. I also acknowledge a group of scholars who have provided me with helpful advice: James Caporaso, Maria Green Cowles, Eric Einhorn, Miriam Golden, Ron Jepperson, Lauri Karvonen, Peter Katzenstein, Audie Klotz, Stein Kuhnle, Paulette Kurzer, Ulf Lindstrom, Jonathon Moses, T.]. Pempel, Jonas Pontusson, Bo Rothstein, Herman Schwartz, Michael Shafer, Lars Svasand, Sidney Tarrow, and John Zysman. I also appreciate helpful insights from discussions with Arne Olav Brundtland, Ulf Dinkelspiel, Jonas Hafstrom, Johan J0rgen Holst, John Keeler, Janne Haaland Matlary, Lars Mj0set, Brent Nelsen, Iver Neumann, Martin S