In the five years between June 1992 and June 1997, these inflows averaged $ billion per year, whereas over the past two years there have been outflows of $ billion per year. The second argument, namely that there has been a change in preference by equity investors, is a relatively recent one, but it has been put forward very forcefully.
Other areas, such as labour markets, remain a national prerogative. But even with initiatives on the European level, national governments are on board via the European Council. Political science teaches us that it can be an effective strategy in international negotiations to proclaim that your hands are tied because of domestic politics and it is either your way or the highway.