08 - European Integration Flashcards Preview

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Flashcards in 08 - European Integration Deck (29)
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1
Q

European Union (EU)

A

The political and economic organization of 28 countries in Europe

2
Q

History of the EU

A
  1. Free trade area
  2. Customs Union
  3. Common Market
  4. Economic Union
  5. Monetary Union
  6. Political Union
3
Q

Free trade area (1950s)

A

A group of countries that remove trade barriers among themselves

4
Q

Customs Union

A

common external tariffs on non-participating countries

5
Q

Common Market (1993)

A

Combining customs market permissions plus free movement of goods and peoples

6
Q

Economic union

A

All “common market” features, but members of an economic union also coordinate and harmonize economic policies

7
Q

Monetary union

A

Countries sharing a common currency and monetary policy (e.g. the euro)

8
Q

Political union

A

The integration of political and economic affairs of a region. The EU is NOT a political union.

9
Q

Council of Europe (1949)

A
  • A loose association in which essentially all European countries are members
  • Emerged from the Treaty of London
  • located in Strasbourg
10
Q

European Conventions on Human Rights

A

A charter defining human rights in Europe (adopted in 1950)

11
Q

European Court of Human Rights

A

An international court located in Strasbourg assessing human rights cases in Europe

12
Q

The Council of Europe - Achievements

A
  • Abolition of the death penalty - Strengthening of human rights - Non-discrimination and the fight against racism - Upholding freedom of expression - Gender equality
13
Q

Treaties of Rome (1957)

A
  • Considered the founding date of the EU: March 25, 1957
  • Treaties of Rome created the European Economic Community (ECC) and the European Atomic Energy Community (Euratom)
  • Strong desire to create institutions that would prevent future wars between the nations of Europe
  • Focus was on establishing a customs union with
    • a common external tariff
    • and common policies for agriculture, transport, trade and the support of developing countries
14
Q

Copenhagen Criteria

A

New member criteria to be admitted as members of the EU:

  • political criteria: stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities
  • economic criteria: a functioning market economy and the capacity to cope with competition and market forces
  • administrative and institutional capacity to effectively implement the ability to take on the obligations of membership
15
Q

Process of changing from central plan to a market economy: Processes included

A
  • Central and Eastern Europe (CEE) have experienced a different form of “integration”. While Western Europe established market economies, CEE developed a system of central planning under the Soviet Union
  • Processes included:
    • Economic transition: Changing from central plan to market economy
    • Liberalization: Removal of regulatory restrictions on business
    • Stabilitization: Policies to combat macroeconomic imbalances
    • Privatization: Change of ownership from state to private
  • These transition economies have now ascended to become, mostly part of the European Union
16
Q
A
17
Q

Four freedoms of the EU single market

A
  1. Free movement of goods (mutual recognitions, harmonized sector, subsidiarity)
  2. Free movement of services
  3. Free movement of capital.
  4. Free moving people (the right of individuals to move freely in the EU to live, work, study or retire)
18
Q

The single market

A

The single market is about free movements of goods, capital, people and services within the union. It complements the customs union, which secures application of a common external tariff on all imported goods.

19
Q

The principles of harmonization

A
  • Mutual recognition: Products recognized as legal in one country may be sold throughout the EU.
  • Harmonized sector: Sectors of industry for which the Eu has created common rules
  • Subsidiary: The EU takes action only if it more effective than actions taken at lower levels (national, regional)
20
Q

Optimal currency area

A

A theory establishing criteria for the oprtimal size of an area sharing a common currency

21
Q

Maastricht Criteria

A

The Maastricht Criteria established that countries had to accept the monetary union. Countries were required to have:

  • annual budget deficits not exceeding 3 per cent of GDP
  • public debt under 60 per cent of the GDP
  • inflation rates within 1.5 per cent of the three lowest rates in the EU
  • long-term interest rates within 2 per cent of the three EU countries with the lowes rate
  • exchange rate stability
22
Q

Advantages of Joining the Euro

A
  • reduce currency conversion costs
  • facilitate direct price comparisons
  • reduction of exchange rate risk
  • impose monetary discipline
23
Q

Disadvantages of Joining the Euro

A
  • Unable to implement independent monetary policy
  • Limits on fiscal policy, notably deficit spending
  • De facto shared responsibility to support weaker member countries
  • National politicians blame eurozone instead of addressing their own failings
24
Q

Membership

A
  • Belgium, France, Germany, Luxemburg, Netherlands and Italy were founding members (1958)
  • In the 1960s UK, Ireland, Norway and Denmark applied for membership
  • Norwegian voters, however, rejected membership in a referendum in 1972 (and again in 1994)
  • In the 1980s, Spain, Portugal and Greece joined
  • In 1990 former East Germany joined the EU by joining the Federal Republic of Germany (West Germany). Finland, Sweden and Austria joined in 1995
25
Q

Eurozone employment

A

Even if business cycles are not perfectly aligned, labour mobility can help ease tensions,

  • but in Europe labour is less mobile, and labour markets are less flexible
  • differences in unemployment are quite persistent
  • some argue that the Eurozone has reached its optimal size or is already too large
26
Q

European Council

A

the asssembly of heads of governments setting overall policy

President of the European Council

  • The person chairing the meetings of the European Council
27
Q

European Commission

A

The executive arm of the EU, similar to a national government.

Directorate General (DG)
A department of the commission, similar to a government ministry

President of the Comission
The head of the EU’s executives, similar to a national prime minister

28
Q

European Parliament

A

The directly electer represenation of European citizens

29
Q

Councile of the European Union

A

The decision-making body consisting of ministers from the national governments; it decides by qualified majority voting