Abstract

Has the Economic Crisis Acted as a Catalyst for the Emergence of Independent Agencies?

Independent agencies have a long tradition in Great Britain and the United States of America. Over the past 40 years independent administrative authorities have also been introduced in other European countries and in the European Union. The analysis of the constitutions of nine EU Member States shows that only Sweden and Austria have general provisions on that problem while in most other countries they have been created by ordinary statutes. Germany is still very reluctant as instructions by the government are seen as an essential element of democratic legitimacy of administrative action. The example of banking supervision confirms the isolation of Germany. In all other countries as well as in the EU the central banks or other specialized authorities regulating financial institutions are guaranteed independence from government. This development started long before the current financial crisis, but recent reforms have strengthened the role of independent agencies.