ABSTRACT
There has been a significant and irreversible shift in the locus of decisionmaking power from nation states to the regional level in the automobile sector. The European Union (EU) had achieved the full harmonization of national technical regulations by 1996, implemented a strict sectoral state aids framework and started to dismantle import barriers against Japanese cars. A new policy process has emerged at the regional level which co-exists with previous national arrangements. Accounting for policy outcomes requires an analysis of the relationship between public authorities and the industry at both levels. To this end the recent literature on EU policy-making has focused on developing and refining theoretical tools and models which can cope with the multi-level nature of EU governance.
