ABSTRACT
The European Union (EU) is bound to change the integration rules as expansion takes place. There is a trade-off between deepening and enlargement and the conflict can be resolved by introducing more flexible rules of integration. This is the basic theme of this chapter, which intends to make two contributions. The first contribution – which fits squarely the central theme of this volume – is to show that governance structures are “endogenous” relative to the integration process. The second contribution concerns the application of club theory to international organizations. The EU is an institution sui generis: it is neither purely supra-national nor purely intergovernmental. It is a mix of the two, with weights changing over time. The tension between member countries that desire more centralization and countries that resist it can be resolved by sorting out preferences through the creation of smaller clubs. These clubs can pursue either different integration objectives or similar objectives with different intensity.
