DOES SOLVIT SOLVE IT? A Study of Regulatory Compliance and Transgovernmental Networks in the EU

Abstract: Improving compliance with European law is important for a well-functioning Internal Market. Correct application of rules is the national executives’ responsibility, that makes European law vulnerable to distortion, due to the different administrative traditions in each member state. The European Union sought to improve its administrative capacity by involving transgovernmental networks as a means of governance tools. Research on practical application of EU directives and the effectiveness of these tools is incomplete. Thus this case study on a transgovernmental network seeks to fill in this gap and provide basis for further research. The setup of SOLVIT aimed to tackle rule misapplication while improving compliance in an informal manner. This paper explores the factors that contribute to the effectiveness of the network in acting as a compliance promoting tool, while creating a bridge between transgovernmental network and compliance literature. The study utilizes qualitative research methods and draws on official documents and interviews as primary sources, that offer a detailed insight into the functioning of SOLVIT. The research shows how cost efficiency, flexibility, informality and the involvement of the European Commission are shaping the effectiveness of the network. Findings of the study highlight the importance and advantages of informality and also strengthen the theoretical assumptions that involving networks in governance is indeed an effective way of overcoming obstacles governments could not.