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This chapter examines trends in European Union policy-making during times of multiple, overlapping challenges. It first considers the main trends in EU policy-making that emerge from policy case studies, including experimentation with new modes of policy-making, often in conjunction with more established modes, leading to hybridization; renegotiation of the role of the member states (and their domestic institutions) in the EU policy process; and erosion of traditional boundaries between internal and external policies. The chapter proceeds by discussing the issue of national governance as well as the interaction between European and global governance. Finally, it explores how the EU has responded to the challenges of Brexit, the politicization of the Union, geopolitical upheaval, and the shock of the Covid-19 pandemic.

This chapter looks at how we consider the European Union (EU) today. The EU is now regarded as an international actor. In this way, the development of the EU, this chapter shows, as a system of international relations in itself can be related analytically to the place it occupies in the process of international relations, and to its position as a ‘power’ in the global arena. This sort of analysis, the chapter argues, facilitates an understanding of the ways in which the EU produces international action and the ways in which the international dimension enters into EU policymaking. This relates particularly to the many crises that have affected the EU in the last few years, such as the eurozone crisis, the war in Ukraine, Brexit, and the Covid-19 pandemic.

This chapter considers the shaping of relations between Africa and Europe. It looks at how they continue to be adversely affected, by the historical trauma of five centuries of slavery and colonialism. The shadows of empire continue to cast over these bonds, as exemplified in the European Union’s (EU’s) heavy-handed and mercantilist negotiating approach during the conclusion of Economic Partnership Agreements (EPAs) with African states between 2002 and 2016. Tensions could also be seen on issues relating to the poor treatment of African migrants by European governments, and a lack of African access to Covid-19 drugs. Some African leaders—particularly in the francophone world—embraced aspects of European colonial rule, as useful to their post-colonial development, but most leaders and citizens in Africa continue to note the destructive legacy and continued dominance of inherited European institutions and the unfair global structures of trade. Despite European talk of ‘equal partnership’ and its provision of development aid, non-reciprocal trade access (since revoked), and security assistance; the African side still often feels that an unequal, paternalistic relationship has continued with Europe, similar to the exploitative patterns of the past.

This chapter examines the position of the European Union (EU) in the global political economy (GPE). It also highlights key dimensions of change and development, and evaluates the EU’s impact on the operation of the contemporary GPE. It does this by examining key ideas in international political economy (IPE), by relating these to the growth of the EU, and by assessing the EU’s role in the GPE in three areas: European integration itself, the EU’s engagement in the GPE, and the EU’s claims to be a major economic power. The final part of the chapter brings these together with an analysis of global economic governance—in particular, the EU’s role in the financial, multilateral state system with its principles of global governance, and pays some attention to recent crises (such as the Covid-19 pandemic) and the Russian invasion of Ukraine.

This chapter examines the role of the economic and monetary union (EMU) in the European Union’s macroeconomic policy-making. As of 2015, nineteen members of the euro area have exchanged national currencies for the euro and delegated responsibility for monetary policy and financial supervision to the European Central Bank (ECB). EMU is a high-stakes experiment in new modes of EU policy-making insofar as the governance of the euro area relies on alternatives to the traditional Community method, including policy coordination, intensive transgovernmentalism, and delegation to de novo bodies. The chapter first provides an overview of the origins of the EMU before discussing the launch of the single currency, the sovereign debt crisis, and economic responses to Covid-19. It also considers variations on the Community method, taking into account the ECB and the European Stability Mechanism.