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What is the impact of institutional reform implemented by the Nice Treaty on European Governance? What should be done to enhance democratic legitimacy in the EU? This book provides an up-to-date guide to understanding the European Union as an institution. Globalisation has led to enormous changes in the international environment which, in turn, have demanded institutional reform of the European Union in the form of the Nice Treaty. European Governance After Nice scrutinises how, and to what extent, the treaty will contribute to the solution of existing problems, examining both its positive effects and its limitations and examines the reforms within the EU through political science, law and economics, in order to express the full extent of the different effects of the Nice Treaty on non-member as well as member countries. The contributors suggest that the threat of varying exchange rates in the future, when the Treaty has an expansionary effect on economic scale, will lead to a deepening interdependence between the excluded countries.