Abstract
Theories of integration fail to explain the stop-and-go nature of European integration. This failures stems from their one-sided attention to either the member states or the institutions of the European Union (EU). The process of integration is best described as one of action and reaction, involving the institutions of the EU, member states, and interest groups. Governments respond to European integration in one policy area by intervening more in adjacent areas, thus inducing policy competition between national states. When their rivalry becomes counterproductive, member states will be motivated to take new steps toward further integration. This interpretation explains the stop-and-go rhythm of European integration and results in a new theoretical framework termed ‘dialectical functionalism.’