European integration and explanations of regime change in Italy

Recent political and economic unrest in western Europe has given rise to a growing perception of the European Union as a key agent of fundamental economic and political change in many of its member states. As these states strained to meet the financial criteria for European Monetary Union, the broadly neo‐liberal path of European integration appeared to threaten the sustainability of many long‐established national institutions and policies. This article examines the validity of such a characterization of the effects of integration by focusing on one major instance of national political and economic change. If the EU is truly an actor of such power, then no developments of profound importance among its member‐states can hope to escape its influence. Through an analysis of recent events in Italy, the article specifies the mechanisms through which the EU does appear to exercise real influence on domestic developments, and the areas where its significance as an agent of liberal restructuring is more doubtful.