The Economics of European Integration, Second Edition

Transcription

1 The Economics of European Integration, Second Edition Miroslav N. Jovanovic Economic Affairs Officer, United Nations Economic Commission for Europe, Geneva,.. Switzerland and Lecturer, the Global Studies Institute of the University of Geneva, Switzerland '- Edward Elgar Cheltenham, UK Northampton, MA, USA

2 Full contents Note about supplementary figures and tables xvi List of abbreviations and acronyms xvii Preface and introduction xx Acknowledgements xxvii 1 Origin, evolution and prospects for the European Union Introduction The Marshall Plan Unity of the West European Coal and Steel Community Political cooperation European Economic Community European Free Trade Association European Economic Community and Britain Merger Treaty and the Luxembourg Agreement Thefirstenlargement Eurosclerosis ( ) The Single European Act: antidote against eurosclerosis The Maastricht Treaty Northern enlargement Treaty of Amsterdam Acquis communautaire Agenda 2000 and the Lisbon Council (2000) Treaty of Nice Eastern enlargement Awkward times or a clumsy institution? Common foreign and security policy 'Dark masters' of the art of European integration Subsidiarity A stronger federal future of Europe The Lisbon Treaty: a pre-crisis treaty for the post-crisis European Union Eurozone crisis in 2010 and beyond Geopolitics Franco-German integration engine 89

3 full contents vii Britain and Europe Germany and Russia : Disintegration of countries within the European Union The European Union's priorities for the future Conclusions Bad Improvements, Muddling through - ~- 126 Appendix 1A Institutions Budget of the European Union Introduction Principles Procedure Expenditure.?' Revenue Challenges Conclusion Competition policy Introduction Background Issues Monopoly The Microsoft case Concept Market structure Innovation Background Innovator's rights Concentration of innovation. 215 Values and culture 219 Politics and vested interests 224 Institutions 226 Cumulation, 229 Commercialisation of inventions 231 Size of the local market Innovation in the European Union Specialisation and returns to scale Meaning Barriers to enter and exit an industry 246

4 viii The economics of European integration, second edition Predatory pricing Standards Intra-industry trade 3.6 European Union Introduction Restriction of competition (Article 101) Mergers and acquisitions Dominant position (Article 102) Innovation - Mergers and acquisitions Business practice Pricing choice Licence Recap European Union State aid (Article 107) 3.7 Conclusions 4 Common Agricultural Policy 4.1 Introduction 4.2 Distinctiveness of agriculture 4.3 Objectives 4.4 Implementation 4.5 Operation and consequences Protection of the internal market Monetary compensatory amounts European Agricultural Guarantee Fund Structure of agricultural production Subsidies Self-sufficiency Consequences for principal players Farmers Consumers External countries 4.6 Reforms 4.7 Food prices in the future 4.8 Conclusions Appendix 4A Common Fisheries Policy 5 Fiscal integration 5.1 Introduction 5.2 Fiscal Dolicv

5 Full contents ix Introduction Taxation principles Fiscal federalism 5.3 A bit of history Switzerland Germany United States Britain A recap. _ European Union Direct taxes Corporate taxes Tax competition Taxes in the European Union Corporate taxes The Arbitration Convention Personal income tax Indirect taxes Principles of destination and origin ' Sales and turnover taxes Cumulative multistage cascade method Value-added tax Excise duties 5.5 Future challenges 5.6 Conclusions 6 European monetary integration 6.1 Introduction 6.2 Background 6.3 The Maastricht Treaty ^ 6.4 Deflation 6.5 Eurozone Introduction 6.5^2 Stability and Growth Pact Global credit crunch ( ) 6.6 Is the eurozone founded on a Titanic-type blueprint? Background Deficits and debt Deficits: conflicting policy advice Expanding or breaking up the eurozone The eurozone country crises Greece

6 x The economics of European integration, second edition Ireland 479 Spain 481 Italy Muddling through crises with no 'resolution' in sight Britain and the euro Conclusions Industrial policy in manufacturing and services Introduction European Union " Rationale Evolution REACH Corrosive subsidies A glimpse into the future Technology policy Challenges and outlook Services f Issues European Union Single market in services Challenges Conclusions Trade policy and international economic cooperation Introduction Theory of customs unions Introduction Types Why do countries integrate? World Trade Organization and international trade International trade negotiations The Uruguay Round The Doha Round Recap Non-tariffbarriers Introduction Antidumping Public procurement Technical standards Red tape

7 Full contents xi S Japanese cars Coordinating Committee on Multilateral Export Controls Preventive and precautionary principles Preventive (reactive) principle Precautionary principle Rules of origin Trade-related investment measures Impact of non-tariff barriers on the European Union Trade policy making The European Union in world trade Introduction Overview ' Foreign direct investment Principal partners in trade -?"' United States Introduction and data Problems and opportunities - Conclusions China Introduction and data Problems and opportunities Rare earth elements Conclusions Russia Introduction and data Relations Conclusions Japan > European Free Trade Association European Economic Area Free movement of goods Free movement of persons Free movement of services Free movement of capital Institutions Switzerland Conclusions Developing countries Introduction From colonies to Yaounde

8 xii The economics of European integration, second edition Lome agreements Introduction Provisions and impact Controversies of financial aid Cotonou Agreement Economic partnership agreements Trade in bananas Have the Lome and Cotonou conventions s benefited the ACP_countries? 8.9 Generalised System of Preferences 8.10 Economic relations with other developing countries 8.11 Developing countries: a recap 8.12 Preferred partners 8.13 Conclusions 9 Regional policy 9.1 Introduction 9.2 European Union Introduction Regional discrepancies Evolution Action reform reform Regional policy ( ) Convergence Regional competitiveness and employment European territorial cooperation Assessment Challenges 9.3 Case study: Mezzogiorno 9.4 Conclusions Appendix 9A Selected clusters in Italy and Germany 10 Social policy 10.1 Introduction 10.2 Social policy issues 10.3 Social models 10.4 Unemployment 10.5 European Union Legal base Evolution '

9 Full contents Education The European Social Charter Conclusions Mobility of labour Introduction Country of origin Country of destination European Union _ Legal framework Migration waves Consequences Facts and figures ^ Policy challenges Response Conclusions ^' Energy policy Introduction Humble beginnings Data, Energy policy Nabucco gas pipeline Nord and South Stream gas pipelines Security of supply Energy Charter Treaty Conclusions Transport policy Introduction European Union Legal base Significance Delayed launch Evolution, Airtransport Outlook Limits and prospects Major new infrastructure Road safety Galileo Environment protection and congestion 863

10 xiv The economics of European integration, second edition Quality of service and passenger rights Transport by water Sustainable transport Conclusions r Environment policy Introduction Issues European Union Foundations Principles Common Agricultural Policy and the environment Genetically modified organisms Policy initiatives The Kyoto Protocol Assessment and steps ahead Conclusions Enlargement Introduction " ' Economic structure of the accession and waiting-room countries and territories Regional discrepancies Entry conditions obstacles to joining the European Union Costs and benefits Economic gains for the new member countries Structural aid Economic and monetary union Agriculture European Union gains Cost of the 2004 eastern enlargement for the European Union Future enlargements The Balkan 'black hole' where the big powers always settle their accounts Turkey in the European Union: euthanasia or the rejuvenation of Europe? Occupied part of Cyprus Armenian genocide Expansionism Turkish-speaking countries 937

11 Full contents XV Culture and religion Jobs Human, democratic and minority rights Frontiers Doubts or opportunities? Which membership circle to join in the European Union? Conclusions Conclusions 955 Bibliography 964 Index 1001