European Economic Integration – 110451-0992 – 2014European Economic Integration – 110451-0992 – 2014
Prof. Dr. Günter S. Heiduk
World Economy Research Institute
Warsaw School of Economics – SGHPhone +48 (22) 564 9373; [email protected] hours: Friday, 12:00 – 13:00, or by appointment via e-mail/phoneWebsite: http://kolegia.sgh.waw.pl/pl/KGS/struktura/IGSKGS/struktura/ZBGPAW/Strony/default.aspx
I. Introduction
Fr 02 - 28 09:50 - 11:30 A8 I. Introduction
Fr 03 - 07 09:50 - 11:30 A8 II. Theories of Econ. Int.
Fr 03 - 14 09:50 - 11:30 A8 III. EU: Deepening + Widening
Fr 03 – 21
Fr 03 - 28 09:50 - 11:30 A8 IV. EU’s budget
Fr 04 - 04 09:50 - 11:30 A8 V. Common Trade Policy (1)
Fr 04 - 11 09:50 – 11:30 A8 V. Common Trade Policy (2)
Fr 04 - 18 Easter break
Fr 04 - 25 09:50 – 11:30 A8 VI. Common Agricultural Policy
Fr 05 - 02 May holiday
Fr 05 - 09
Fr 05 - 16 09:50 – 11:30 A8 VII. Cohesion Policy
Fr 05 – 23
Fr 05 - 30 09:50 – 11:30 A8 VIII. EMU
Fr 06 - 06 09:50 – 11:30 A8 IX. EU’s Sovereign Debt Crisis
Fr 06 - 13 09:50 – 11:30 A8 Paper presentations
06 – XX Exam: - Essay
Timetable
X. Europe 2020 Dr. Marta MackiewiczA8 09:50 – 11:30
EU-China Economic Relations*09:50 – 11:30 A8
* Mgr Agnieszka McCaleb
European Union awarded 2012 Nobel Peace Prize
Thorbjorn Jagland, the chairman of the Norwegian Nobel Committee, announced the winner of the peace prize on October 12 in Oslo
Share of World GDP
Source: Eurostat online data code (nama_gdp_c) and the United Nations Statistics Division (National Accounts Main Aggregates Database)
EU-2725.8%
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Integration = Globalisation?
Integration = Regionalisation?
Integration = Regionalism?
Integration = Multilaterisation?
Integration = Multilateralising regionalism?
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Europe defined by geography, culture, institution?
Understanding “Integration“ – Searching for “Europe“
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-Exports
- Imports“Far distanceintegration“ byinternationaltrade flows =Globalisation?
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-Exports
- Imports“Far distanceintegration“ byinternationaltrade flows =Globalisation?
:: European Union (EU) African Union (AU) Union of South American Nations (UNASUR) Caribbean Community (CARICOM) Central American Integration System (SICA) Arab League (AL) European Free Trade Association (EFTA) Eurasian Economic Community (EAEC) Association of Southeast Asian Nations (ASEAN) Central European Free Trade Agreement (CEFTA) North American Free Trade Agreement (NAFTA) South Asian Association for Regional Cooperation (SAARC) Pacific Islands Forum (PIF)
Trade Blocs
9Regionalism = Institutionalized regional integration ASEAN, EU, Mercosur, NAFTA
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Regionalism: Spaghetti bowl’ RTAs in the Western Hemisphere
Centeno, M and Cooke, A (2006). Introduction to the Data from GKG Project. Princeton University.
Global, inter-regional, intra-regional trade
Europe‘s intra- and inter-regional exports , 2012 (in %)
EU68,6
North America7,7
South and Central America
1,9
CIS3,8
Africa
3,3
MiddleEast
3,3Asia
10,1
Source: WTO, International Trade Statistics
Merchandise Trade of Selected Regional Trade Agreements, 2012
Most of the international trade takes place within major economic blocs, notably for the EU (European Union) and NAFTA (North American Free-Trade Agreement), where 63% and 49% of their respective trade concerns member nations. While trade relations between advanced economies are linked to the emergence of economic blocks, trade relations between developing countries is often related to unilateral agreements between specific partners (particularly for former colonies). This attribute is however becoming marginal with the emergence of trade agreements involving developing countries such as Mercosur and ASEAN (Association of Southeast Asian Nations). Still, these integration agreements have a limited cohesion. For instance, only 26% of ASEAN's trade is internal.
0
2000
4000
6000
8000
10000
12000
14000
EU-27 NAFTA ASEAN MERCOSUR
Total Trade (USD billion)
Share of Intra- and Extra-Regional Exports (in %)
Source: WTO, International Trade Statistics 2013, Appendix Table A3.
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Where are the borders of Europe?
EUROPEAN UNION
DIVERSITY IN UNITY
?
UNITY IN DIVERSITY15
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The European Union: 503.5 million people (1st Jan. 2012) – 28 member states
EUROPE AT NIGHT
Source: Courtasy: DMSP and NASA, www.nasa.gov
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Symbolic descriptionAgainst the background of blue sky, twelve golden stars form a circle, representing the union of the peoples of Europe. The number of stars is fixed, twelve being the symbol of perfection and unity.The flag therefore remains unchanged regardless of EU enlargements.
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Founding fathers
New ideas for lasting peace and prosperity…
Konrad Adenauer
Robert Schuman
Winston Churchill
Alcide de Gaspari
Jean Monnet
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Multilingualism: 24 official languages
Hrvatski
Working languages: English, French, German
With a permanent staff of around 1 750 linguists and 600 support staff, the European Commission has one of the largest translation services in the world. The Commission's interpretation service employs 600 staff interpreters, a pool of 3,000 freelance interpreters and 250 support staff.
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Eight enlargements1952 1973 1981 1986
19901995 2004 2007
Eight +1 enlargements 1952-2013
Ninth enlargement: Croatia on July 1, 2013
Ninth enlargement 1st July 2013 and current official and potential candidates
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The treaties – basis for democratic cooperation built on law
1952The European Steel and Coal
Community
1958The treaties of Rome:
The European Economic CommunityThe European Atomic Energy Community
(EURATOM)
1987The European Single Act: the
Single Market
1993Treaty of European Union
– Maastricht
1999Treaty of Amsterdam
2003Treaty of Nice
2007Treaty of Lisbon (signed)
1 Dec. 2009 into force
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The Lisbon treaty - taking Europe into the 21st century
The Treaty will make the European Union:
More efficient Simpler processes, full-time president for the Council, etc.
More democratic Stronger role for the European Parliament and national parliaments, "Citizens initiative", Charter of Fundamental Rights, etc.
More transparent Clarifies who does what, greater public access to documents and meetings, etc.
More united on High Representative for Foreign Policy, etc. the world stage
More secure New possibilities to fight climate change and terrorism, secure energy supplies, etc.
Signed in December 2007 – entered into force on 1st December 2009.
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How rich is the EU compared to the rest of the world?
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
2000 2005 2010
EULuxembourgGermanyRomaniaUSAJapan
GDP per capita (PPP), Selected Countries/Regions, 2000, 2005, 2010, 2012, US$
Source: IMF.
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GDP per capita in Purchasing Power Standards, 2012
Index where the average of the 27 EU-countries is 100
EUROSTAT, Annual National Accounts, t_nama_gdp, te00114
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EU‘s greatest achievements
Customs Union - Abolishing internal tariffs
- Establishing a common external tariff
Single Market - Four freedoms of movement: Goods
ServicesPeopleCapital
Monetary Union - European Monetary System (EMS) - Euro
Enlargement - Economic and political stability in Europe
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EU‘s greatest challenges: Widening versus deepening
2015 ?
20... ?
2007
2004
Deepening:Lessons fromthe Euro crisis?
Widening
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Future Enlargements?
Acceding country: Croatia 1st July 2013
Potential candidates: Albania, Bosnia and Herzogovina, Kosovo, Serbia
Candidate countries: Island, Macedonia, Montenegro, Turkey
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The Western Balkan countries on the Road to the European Union
Components of the Stabilisation and Association Process (SAP):
Stabilisation and Association Agreements: A far-reaching contractual relationship between the EU and each Western Balkan country, entailing mutual rights and obligations. Such an association has high political value. It is based on the gradual implementation of a free trade area and reforms designed to achieve the adoption of EU standards with the aim of moving closer to the EU.
EU Financial Assistance: Humanitarian and emergency assistance, rebuilding infrastructure, and fostering reconciliation, developing government institutions and legislation, approximation with European norms and eventually harmonisation with EU acquis (EU law), reinforcing democracy and the rule of law, human rights,operation of a free market economy, sustainable economic recovery, promoting social development and structural reform, promoting regional co-operation betweenthe Western Balkan countries
Autonomous Trade Measures: Duty-free access to the EU market for practically all products originating from the region
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GDP PPP per capita, EU-27 = 100
Basic Indicators of Exports + Imports
Widening results in declining average GDP/capita
Agreements in the Euro-MED Area, 2008
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Schengen Agreement: Imperfect mobility for persons
Bulgaria, Cyprus, Romania are not yet fully-fledged members of the Schengen area.
Characterizing the European Union: Diversity in Unity versus Unity in Diversity?
Source: Schlecker-Fischer, A. (2010): Unity in Diversity? Working Paper Series “Global Governance and Democracy“, WP 05, Universität Luzern.
EU-15, 2003
Characterizing the European Union: Diversity in Unity versus Unity in Diversity?
EU-27, 2009
Cited: Schlecker-Fischer, A. (2010), p 23, 27.
Dual Idenfication Across Groups of Member States (percentages)
Source: Schlecker-Fischer, A. (2010), p .30.
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Geographical
Political
Cultural
Economical
Boundaries versus Borders
Geographical
Political
Cultural
Economical
Institutional/legal
Transactional
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Europe: Diversity Europe: Diversity in Unity ? in Unity ?
Europe: Diversity Europe: Diversity in Unity ? in Unity ?
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National identities: language, history and culture of a country
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The Impact of Enlargement
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Discipline perspective: Diversity in law, economics, politics, history
Language
History, Culture
Politics
€
Economics
§Law
Spread of wealth: Differences in GDP/capita
Euro Area – Non-Euro Area
3 Official languages – 23 languages – 27 member states
Linguistic distances, linguistic homogeneity, linguistic convergence
“Hard“ law = National law - “Soft“ law = European law?
National borders versus “federal vision“
National citizenship versus “pluralistic citizenship“
“Europe” is a movable set of myths and images, both positive and negative, embedded in national histories and vernacular literature.” William Wallace (2002), Where Does Europe End? Dilemmas of Inclusion and Exclusion
In: Zielonka, J. (ed.), Europe Unbound…, p. 79.
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Europe: Unity Europe: Unity in diversity ?in diversity ?
““In varietate In varietate concordia” concordia”
Europe: Unity Europe: Unity in diversity ?in diversity ?
““In varietate In varietate concordia” concordia”
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European identity?Institutions and integration process in Europe
EnlargementHungary
Poland
Slovakia
...
InstitutionsCommission CouncilParliament ECB .... ...
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”Economics might be universal, but economies are not. The market economy is a theoretical construct, whose substance can only be found in real, live market economies, which are distinctive and contextually defined.”
Understand interactionas well as distances
&display methodological
openness Educate economiststo be aware of the non-economic!
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Conceptualizing EuropeA) An institutional approach Levels of institutions
Horizontal and verticalinterdependencies, distances, interactions
Europe
Worldwest east
Economy
Culture
Nation states
Law
Technology
B) A dynamic approachEvolution of Europe‘s economy, cultures, nations, law, technologies (e.g., by using a socio-dynamic method)
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Summary: European studies without borders!
Study Europe• by integrating internal and external views!• from the point of view of and through the
collaboration of different disciplines!• by acknowledging unity in diversity and
diversity in unity!• by successfully tearing down ideological
borders and claims of dominance!
Nothing is possible without men, nothing is sustainable
without institutions!
Nothing is possible without men, nothing is sustainable
without institutions!
Jean Monnet –
The intellectual father of the European Union 50
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