The name is absent

The Role of Direct Democracy in the European Union

by

Lars P. Feld

Philipps-University of Marburg

and

Gebhard Kirchgassner

University of St. Gallen
(SIAW-HSG)

Abstract

In this paper, the introduction of direct-democratic decision-making in all EU decisions is considered
when it is feasible without prohibitively increasing decision-making costs. We start with the contrac-
tarian argument that each constitution is a contract joining the citizens of a state and requires as such
the explicit agreement of (a majority of) citizens. Thus, the future European Constitution as well as
future changes of it should be decided by the European citizens. After a discussion of the pros and
cons of direct democracy, the ability of direct democracy to help creating a European demos is dis-
cussed. Consequently, we propose a mandatory (required and binding) referendum on total and
partial revisions of the European Constitution. In addition, we propose a constitutional initia-
tive, a statutory and a general initiative as well as a fiscal referendum for financially important
projects.

Keywords: Direct Democracy, Referenda, Initiatives.

JEL Classification: D78.

Forthcoming in: Charles B. Blankart and Dennis C. Mueller (eds.), A Constitution for the
European Union, MIT Press, London 2004. - We gratefully acknowledge financial support from
the Swiss National Science Foundation (Grant-No. 5004-58524). We would like to thank Beat
Blankart, Giuseppe Eusepi, Gianluigi Galeotti, Simon Hug, Dennis Mueller, and two anonymous
referees for very valuable comments and suggestions.

Mailing Address: Prof. Dr. Lars P. Feld
Philipps-University of Marburg
Public Finance Group
Am Plan 2

D-35037 Marburg (Lahn)
Germany

e-mail: [email protected]

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