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Internationale

Wirtschaftspolitik
Universitt Trier

The Economics of
European Integration
Univ.-Prof. Dr. Xenia Matschke
Chair of International Economic Policy
Winter Term 16/17
Internationale
Wirtschaftspolitik
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Principal
Textbook

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Chapter 1 History

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Early Post War Period - A Climate for
Radical Change
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In 1945, almost every nation in Europe has been


(a) ruled by a brutal dictator,
(b) occupied by a foreign army or
(c) both.

Widespread devastation due to war and genocide.

Germany and France have fought four wars within 130


years.

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Rotterdam
1940

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Coventry Cathedral 1940

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London 1940
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East London, 1940


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Warsaw, 1945
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Reichstag 1945
Frankfurter Allee 1945

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Dresden
1945

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Dresden
1945

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Cologne
(Kln)
1945

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Early Post War Period - A Climate for
Radical Change (2)
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In numbers:

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The Prime Question in 1945
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How can Europe avoid another war?


What caused the war? Three answers:
Blame Germany
Capitalism
Destructive nationalism
These imply three very different post-war solutions:
Neuter Germany, Morgenthau Plan of 1944
Adopt communism
Pursue European integration
Today we know: European integration ultimately prevailed,
but this was far from clear in the late 1940s.

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Early Post War Period
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Germany was divided into US, UK, French, and Soviet zones.

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Early Post War Period - A Climate for Radical
Change (3)
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West European governments are preoccupied and


overloaded by the dismal humanitarian situation.
Between 1945 and 1947, hunger is widespread (especially
in Germany in the harsh winter of 1946).
Western Europe suffers governmental and constitutional
crises.
Winston Churchill loses re-elections for prime minister of
Great Britain in 1945.
General Charles de Gaulle resigns as president of the
provisional French government in 1946.
Italy abolishes its monarchy (1946), riots in Belgium (1951
King Leopold III abdicated).
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Early Post War Period (2)
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Soviet troops occupy all of central and eastern Europe.


In eastern Europe, the Soviet Union imposes communism on the
previously independent nations Estonia, Latvia, and Lithuania.
Communists take power in Albania, Yugoslavia, and gain
strength in Greece.
In 1946, communists gain 19 percent of the vote in Italy, 29
percent in France.
By 1948, communist parties are in power in every Soviet-
occupied country.

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Emergence of a Divided Europe
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America and Britain rejected the Soviet vision


(and vice versa) and this confrontation lead to
the Cold War:
- US, UK, and French zones merged in 1947/8;
- Berlin Blockade and Berlin air bridge
(24.06.1948 -12.05.1949);
- The Federal Republic of Germany established
in 1949.
Berlin blockade

The merger of the French, US and UK zones


was a defining moment in Europe and a
precursor of European integration.

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Emergence of a Divided Europe (2)
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European integration is supported by national interests:


French leaders see Franco-German integration as a counterweight
to UK-US influence on the Continent.
Reindustrialized Germany is a partner rather than a military
adversary.
The UK and US support European integration as a counterweight to
Soviet influence.
German leaders see the European integration as the surest road to
establish Germany as a normal nation.
Italy hopes to keep communism in check and to close the door on
Italys fascist past.

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First Steps of Integration
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The USA offered financial assistance if countries agreed on a


joint program for economic reconstruction = the Marshall Plan
(1948):
The Organization for European Economic Cooperation (OEEC) administered this aid
and prompted trade liberalization.
The European Payments Union (EPU) facilitated payments and fostered trade
liberalization.
Except for Finland (Soviet pressure) and Spain (Franco), 13 of
the old EU-15 countries are members of the OEEC, additional
members are Norway, Iceland, Switzerland, Turkey and the Free
Territory of Trieste until it was merged with Italy.
The Soviet Union and all central and eastern European countries
decline the offer.
They establish the Council for Mutual Economic Assistance
(CMEA, also known as Comecon or CEMA) in 1949.

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The 17 Founding Members


N of the Organisation of
S European Economic
Cooperation (1948)
DK
IRL
UK
NL
B
D
L
A
F CH
I

TR
P GR

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First Steps of Integration (2)
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Responding to US pressure the OEEC nations removed


bilateral trade restrictions (quantitative).
Rapid growth of trade and incomes.
Trade liberalization, going hand in hand with strong growth,
challenges general wisdom of past decades.

New view: trade liberalization could be pro-growth and pro-


industrialization.

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Drive for Deeper European Integration
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As Cold War turns more war-like, West Germanys


rearmament becomes necessary.
In 1949, the Federal Republic of Germany is established
(full sovereignty is granted only in 1955).
But a strong and independent Germany is a scary thought
to many, including many Germans.
The aim is to embed an economically and militarily strong
West Germany into a supranational Europe.
Problem: The OEEC is possibly too loose to avoid future
war among Western European powers.

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Drive for Deeper European Integration (2)
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Konrad Adenauer (*1876; 1967)

1st post-war Chancellor of Germany


1949 1963

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Two strands of European integration
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Federalism versus intergovernmentalism: the disagreement


about depth of European integration:
Federalism:
The concept of federalism relies on supranational institutions.
It is supported by nations that have experienced land combat,
extensive death, and destruction: Belgium, the Netherlands,
Luxembourg, France, Austria, Germany, and Italy.
Intergovernmentalism
The concept of Intergovernmentalism is based on nations that
retain all sovereignty.
It is supported by nations that avoided foreign occupation and/or
extensive death: UK, Denmark, Norway, and Iceland and the
neutral countries Ireland, Sweden, Switzerland.

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European Coal and Steel Community
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Intergovernmental initiatives dominate (between 1945 and 1947,


the UK has the only effective government).
Examples of this period are
OEEC 1948
Council of Europe 1949
Court of Human Rights 1950
A path-breaking supranational (or federal) initiative is the set up
of the European Coal and Steel Community (ECSC) in 1952.
As part of the ECSC, European Court of Justice and European
Parliamentary Assembly (then Common Assembly) are established.
It comprises the Six: Belgium, France, Germany, Italy, Luxembourg,
the Netherlands.

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The 6 Founding Members of


the European Coal and Steel
Community (1952)

NL
B
D
L
F
I

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European Coal and Steel Community (2)
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Robert Schuman Jean Monnet


1886-1963 1888-1979
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European Coal and Steel Community (3)
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Federalist Track:
The Treaty of Rome (1957)
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In 1955, Germany joins the North Atlantic Treaty Organization


(NATO).
The Soviet Union and central and eastern European nations
form the Warsaw Pact in 1955.
In 1957, the Six sign two treaties in Rome in the same year:
European Atomic Energy Community (Euratom),
European Economic Community (EEC), Treaty of Rome, ratified
by all parliaments by 1958.

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Federalist Track:
The Treaty of Rome (1957) (2)
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The Treaty of Rome commits the Six to


forming a customs union (removing all tariffs and quotas on intra-
EEC trade and adopting a common tariff on imports from non-
Member nations),
free mobility of workers(!),
capital market integration,
free trade in services,
common policies for agriculture, trade, and transport that were to be
implemented by the supranational European Commission

Four freedoms: Free mobility of goods, services, capital and labor


(workers only!).

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Intergovernmental Track: From OEEC to EFTA
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Formation of the EEC introduced discrimination.


The non-EEC members of the OEEC fear to get sidelined.
In 1960, seven of them form the European Free Trade
Association (EFTA).
EFTA comprises Austria, Denmark, Norway, Portugal,
Sweden, Switzerland, and UK.
EFTA is a free trade area (UK maintains preferential tariffs
with Commonwealth).

Question: What is the difference between a free trade area and a


customs union?

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Two non-overlapping circles
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Situation by the late 1960s:

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Two Separate Free Trade Associations
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Between 1958 and the early 1960s, the share of within-


EEC trade rises from 30 percent to 50 percent.

The share of imports from six major other European nations


falls from 8 percent to 7 percent.

EEC-6 and EFTA-7 are two separate free trade


associations.

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Evolution to two concentric circles domino
effect I
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Falling trade barriers within the EEC and within EFTA lead
to discrimination.

The GDP (i.e., potential market size) of the EEC is much


larger than that of EFTA (and EEC incomes were growing
twice as fast).

Thus, the EEC club was far more attractive to exporters


and this led to the new political pressure for EFTA nations
to join the EEC (domino effect).

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First Enlargement
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The UK decides to apply for EEC membership (1961).


It would have to re-impose tariffs on imports from other
EFTA countries.
Denmark, Ireland, and Norway apply.
Austria, Sweden, and Switzerland do not apply for political
reasons (neutrality).
Portugal does not apply because of lack of democracy.
Finland does not apply for political reasons (instead, it
becomes an associate member of EFTA in 1961, full
membership in 1986).
Iceland does not apply because it is not heavily dependent
on the EEC market (instead, it joins EFTA in 1970).

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Charles de Gaulle
1890-1970

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First Enlargement (2)
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In 1963, Frances Charles de Gaulle says non to UK


membership (including Ireland, Denmark, Norway).
In 1965, the EEC and Euratom are merged in the European
Communities (EC).
The four countries reapply in 1967, but again de Gaulle says no.
Membership is granted in 1973.
However, Norways citizens refuse to join the EC in a
referendum.
Denmark, Ireland, and UK join the Six to form the European
Community (EC-9).
In 1975, the first European Council informally called the
European summit takes place (meeting of the heads of state or
government and the President of the European Commission).

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Second Enlargement: EC-EFTA Free Trade
Agreements
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The remaining EFTA countries are pushed by their


industries to sign free trade agreements with the EC (e.g.,
Sweden).
These agreements are signed in 1973.
By the mid-1970s, one can distinguish between the core
area of free trade (territory covered by the members of the
EC-9) and a peripheral area of strongly liberalized trade
(territory covered by the members of EFTA).
The core area concerns trade within the EC.
Trade within EFTA and trade between EFTA and EC
countries is governed by the rules applicable to the
peripheral area.

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Evolution to Two Concentric Circles Domino Effect
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Charles De Gaulle stopped UK membership twice. Denmark, Ireland,


and UK join in 1973 while Norwegians said no in a referendum.

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Euro-Pessimism - Political Shocks
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In the 1960s, confidence of Europeans in their


governments ability to govern is widely restored.
A pro-national sovereignty charge is led by de Gaulle.
In the Luxembourg compromise of 1966, qualified majority
voting is de facto replaced by a unanimity rule (necessary
when very important interests of a member state are at
stake).
Charles de Gaulle resigns in 1969.
The EC enlargement of 1973 (Denmark, Ireland, UK) leads
to decision-making traffic jam.

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Failure of Monetary Integration
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Bretton Woods System falls apart, 1971-1973.


Werner Committee designs a step-by-step approach to full
monetary union by 1980. Werner Plan adopted in 1971.
In 1973, the Yom Kippur War triggers an Arab oil boycott
and sharp economic downturn in Europe and elsewhere.
Because of monetary and fiscal expansion, this first oil
shock brings high inflation without growth (stagflation).
In 1979, the Iranian Revolution triggers the second oil
shock.
Werner plan is put on hold forever.

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Bright Spots
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Spain (1975-1978), Portugal (1974), and Greece (1974)


adopt democratic governments.
Greece joins the EC in 1981, Spain and Portugal in 1986,
forming the EC-12.
The European Monetary System, started in 1979, is a
success.
In 1979, the European Parliament is directly elected for the
first time.
High inflation is successfully fought.
However, this brings recession in 1981-83.
In 1984, recovery starts and a deepened belief in market
economics begins (Ronald Reagan, Margaret Thatcher).

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Margaret Thatcher Ronald Reagan


1925-2013 1911-2004

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Failure of Deeper Trade Integration
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Detailed technical regulations and standards (technical


barriers to trade) fragment the European market.
Trade inhibiting barriers are
differing technical standards, industrial regulations,
capital controls,
preferential public procurement,
biased purchasing patterns,
exclusive production or service rights,
production subsidies to national champions,
local certification of service providers ,
administrative and border formalities,
value added tax and excise tax rate differences,
differing transport regulations, etc.
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Failure of Deeper Trade Integration (2)
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In 1969, a slow process of harmonization starts.

However, during the 1970s, the number of new national


regulations grows much faster than harmonization.

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Single Market Programme
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By 1985, internal trade is inhibited by many non-tariff


barriers (as listed before).
Measures to liberalize the trade in goods are
streamlining or elimination of border formalities,
harmonization of VAT rates within wide bands,
liberalization of government procurement,
harmonization and mutual recognition of technical standards in
production, packaging, and marketing.
Measures to liberalize the trade in factors are
removal of all capital controls,
liberalization of cross-border market-entry policies, including mutual
recognition of approval by national regulatory agencies.

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Jacques Delors
1925-

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Deeper Circles: Single Market Programme
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In 1985, Jacques Delors becomes President of the


European Commission.
He launches the completion of the internal market (called
the Single Market Programme) with the Single European
Act (signed in 1986, came into effect in 1987, sets objective
of completing single European market by the end of 1992).
The aim is to create "an area without internal frontiers in
which the free movement of goods, persons, services, and
capital is ensured".
Important institutional changes are introduced, especially
the move to majority voting on Single Market issues.
By 1987, all Member States have adopted the Single
European Act.
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Deeper Circles: Domino Effect II
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Deeper integration in EC12 strengthened the force for


inclusion in remaining EFTA nations (domino effect).
In 1989, the single market is extended to the non-EC
countries in the EFTA (apart from agriculture and the
common external tariff).
The complete area, created January 1, 1994, is called the
European Economic Area (EEA).
EFTA members in the EEA have to adopt EC legislation
without own formal input into the formation of these laws.
EEA creates supranationality among the EFTA nations.

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EEA and the Fourth Enlargement
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By the end of EEA negotiations, Austria, Finland, Sweden,


Norway, and Switzerland have applied for EC membership (EEA
only a phase of transition).
Iceland is the only EFTA country that does not apply.
In 1993, Swiss voters reject the EEA arrangement, and in effect
the Swiss EC application.
The fourth enlargement (1995) adds Austria, Finland, Sweden
and leads to the EC15.
Today, the EEA consists of the EU-28 plus Norway,
Liechtenstein, and Iceland, Switzerland has a bilateral deal with
the EU.
The four fundamental principles of EEA are the four freedoms,
also known as the four fundamental pillars of the Internal Market,
namely freedom of goods, person, service, and capital
movement.

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East-West Integration - Communisms
Collapse
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The Berlin Wall, built


in 1961, cements the
division of Europe into
communist and
capitalist camps.

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Berlins Checkpoint Charlie 1961


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Overhaul of the inner German Frontier


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East-West Integration - Communisms
Collapse (2)
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By the 1980s, western living standards are considerably higher


than in the central and eastern European countries and the Soviet
Union.
The creeping failure of communism forces changes inside the
Soviet Union:
pro-market reforms (perestroika),
openness (glasnost),
less interventionist foreign policy.

Mikhail Gorbachev, 1931-

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Velvet Revolutions in CEECs
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Pro-democracy forces in the central and eastern European countries


(CEECs) had been repeatedly put down by military force hereto but
found little resistance from Moscow in the late 1980s.
June 1989: Polish labour movement Solidarity forced free
parliamentary elections and communists lost. Soviet Union accepted
new Polish government.
Soviet hands-off approach to the Polish election triggered a chain of
events:
Hungary opened its border with Austria and many East Germans
moved to West Germany via Hungary and Austria;
mass protests in East Germany; Wall falls 9th November 1989;
end of 1989: democracy in Poland, Hungary, Czechoslovakia;
end of 1990: German re-unification.

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USSR Collapses
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End of 1990: independence of Estonia, Latvia and


Lithuania;
End of 1991, the USSR itself breaks up.

The Cold War ends without a shot (?) and with it, the military
division of Europe ends.

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Berlin, November 9, 1989

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Berlin, November 9, 1989

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Berlin, November 9, 1989

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The Maastricht Treaty (1992)
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Germanys unification was meant to occur in conjunction


with a big increase in the forces tying EC members
together.
Jacques Delors proposes the formation of a strong union,
including a monetary union.
The union is to be called the European Union (EU).
He receives support from the French President Francois
Mitterrand and the German Chancellor Helmut Kohl.
The proposal is known as the Maastricht Treaty.
It is signed in February 1992 and enters into force on Nov.
1, 1993.

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Maastricht Treaty (2)
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Francois Mitterrand Helmut Kohl


1916-1996 1930-

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Maastricht Treaty (3)
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Monetary union should be reached by 1999 and a single


currency by 2002.
The Maastricht Treaty also
created the EU citizenship,
locked in the free movement of capital,
strengthened EU cooperation in non-economic areas (e.g., security,
defence, law enforcement, criminal justice, etc.),
enshrined the principle of subsidiarity (the EU may act only where
its member states agree that actions by individual countries would
be insufficient),
strengthened the European Parliaments power over EU legislation,
introduced the Social Chapter (e.g. policies on workers health and
safety, workplace conditions, etc.).
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Maastricht Treaty (4)
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The UK insists on an opt-out from the single currency and


the Social Chapter.
The referendum in France is very close.
After the Treatys rejection by Denmarks voters, Denmark
is granted opt-outs on the single currency and defence
matters.
The Treaty enters into force in November 1993.
Austria, Finland, and Sweden join the EU in 1995, creating
the EU-15.
Norways voters again reject EU membership.

Univ.-Prof. Dr. Xenia Economics of European 21.10.2016 65


Matschke Integration, WT 2016/17
Reuniting East and West Europe
Internationale
Wirtschaftspolitik
At first, no promise of eventual membership for CEECs but Europe
Universitt Trier

Agreements: free trade agreements with promises of deeper


integration and some aid.

In 1993, the EU sets the Copenhagen criteria for accession of


CEECs:
political stability of institutions that guarantee democracy, the
rule of law, human rights and respect for and protection of
minorities;
a functioning market economy capable of dealing with the
competitive pressure and market forces within the Union;
acceptance of the Community acquis (EU law in its entirety)
and the ability to take on the obligations of membership.

Copenhagen summit (2002) says CEEC nations plus Cyprus and


Malta join in 2004 (5th enlargement).
Economics of European
Integration, WT 2016/17
Preparing for Eastern Enlargement
Internationale
Wirtschaftspolitik
Universitt Trier

Impending enlargement required EU to reform its institutions.

Reforms necessary in the Council of Minister voting and the number


of Commission members.

Five tries:
Amsterdam Treaty, 1997;
Nice Treaty, 2000;
Constitutional Treaty, 2004;
Lisbon Treaty, signed in 2007, came into effect in December
2009.

Univ.-Prof. Dr. Xenia Economics of European 21.10.2016 67


Matschke Integration, WT 2016/17
Amsterdam Treaty (1997)
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Wirtschaftspolitik
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Failed to agree main reforms set out as the goal for the Treaty.

But, it did strengthen the Maastricht Treaty:


more on social policy;
the European Parliament powers modestly boosted;
flexible integration, closer cooperation introduced.

But no agreement on reform of Commission, reform of Council


voting rules, or on list of areas to move to qualified majority voting
(QMV). The Amsterdam leftovers would be addressed by a future
Treaty.

Economics of European
Integration, WT 2016/17
Nice Treaty (2000)
Internationale
Wirtschaftspolitik
Universitt Trier

Not a success!

The critical Amsterdam leftover issues the size and composition


of the Commission, extension of majority voting in the Council of
Ministers and reform of Council voting rules were addressed, but
not fully solved.

Irish voters initially rejected the Treaty. After some concessions


were granted to Ireland, Irish voters accepted the Treaty.

Economics of European
Integration, WT 2016/17
Eastern Enlargement
and the Constitutional Treaty (2004)
Internationale
Wirtschaftspolitik
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One year after Nice Treaty, EU leaders adopt the Laeken


Declaration and set up the Convention on the Future of Europe to
outline a new Treaty.

The Convention decided to write a Constitution, which was signed


in Rome in 2004.

Ten new members join the EU in 2004 (Cyprus, Czech Republic,


Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia,
Slovenia), Bulgaria and Romania follow in 2011 and Croatia in
2013.

France and Netherlands rejected the Constitutional Treaty in


referendums in 2005 and EU leaders suspend the ratification
process.
Economics of European
Integration, WT 2016/17
Lisbon Treaty (2007)
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Wirtschaftspolitik
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Under the German EU Presidency (2007), EU leaders declared the
Constitutional Treaty to be dead and agreed on the basic outlines of its
replacement: the Reform Treaty, known as the Lisbon (2007).

Much of the Constitutional Treaty is taken up in the Lisbon Treaty, but:


all the grandiloquent language and gestures to supranationalism were
dropped;
all references to symbols of statehood were eliminated;
the word constitution was banished.

Goal was to avoid referendums without changing the substance. But Irish
Constitution required a referendum: Irish voters initially rejected the Treaty,
reversing their vote after some concessions.

The Lisbon Treaty came into effect in December 2009.

Economics of European
Integration, WT 2016/17
Lisbon Treaty (2):
Internationale
Wirtschaftspolitik
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reforms the EU institutions and improves the EU decision-


making process;
strengthens the democratic dimension of the EU;
reforms the internal policies of the EU;
strengthens the external policies of the EU.

It also creates two new functions in the EU institutional


architecture:
the President of the European Council;
the High representative for Foreign Affairs and Security Policy.

Economics of European
Integration, WT 2016/17
Eurozone Crisis
Internationale
Wirtschaftspolitik
Universitt Trier
Interest rate convergence caused by EMU formation.
Sharp divergence triggered by the crisis

Economics of European
Integration, WT 2016/17
Eurozone Crisis
Internationale
Wirtschaftspolitik
Universitt Trier

Massive institutional reforms and with transferring sovereignty to the


Eurozone level and new rules, such as
Balanced budget rules,
Six Pack,
European Stability Mechanism,
European Banking Union.
Emergency loans and packages:
Greece (May 2010, March 2012, August 2015),
Ireland (February 2012),
Portugal (May 2011),
Spanish banks (July 2012) and
Cyprus (May 2013).

Economics of European
Integration, WT 2016/17
Eurozone long-run interest rates, 2007-2015
Internationale
Wirtschaftspolitik
Universitt Trier

Available at: https://fred.stlouisfed.org/tags/series?t=10-year%3Bbonds

Economics of European
Integration, WT 2016/17
Brexit
Internationale
Wirtschaftspolitik
Universitt Trier

23.06.2016 Referendum in the UK, outcome - leave the EU by


52% to 48%

Statement by the EU leaders and the Netherlands Presidency


on the outcome of the UK referendum:
We now expect the United Kingdom government to give effect to this
decision of the British people as soon as possible, however painful that
process may be. Any delay would unnecessarily prolong uncertainty.
(Available at http://www.consilium.europa.eu/en/press/press-releases/2016/06/24-joint-statement-uk-referendum/)

The president of the European Council Donald Tusk on 13.10.2016:


soft Brexit is not possible, the only real alternative to a hard Brexit
is no Brexit.
Next 2 slides from BBC, http://www.bbc.com/news/uk-politics-32810887 and
http://www.bbc.com/news/politics/eu_referendum/results
Economics of European
Integration, WT 2016/17
Internationale
Wirtschaftspolitik
Universitt Trier

Economics of European
Integration, WT 2016/17
Internationale
Wirtschaftspolitik
Universitt Trier

Economics of European
Integration, WT 2016/17
Eurosceptics:
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Wirtschaftspolitik
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Boris Johnson:
Speech to Conservative Party Conference 2016

Over the last couple of months I have sat in all kinds of EU


meetings vast and ruminative feasts of lunch or dinner in the
castles of Mitteleuropa washed down with the finest wines
known to man and on one occasion a splendid breakfast that
seemed to stretch, for course after course, from 8 am to 11 and I
have enjoyed them all. I have made friends, alliances
and had wonderful conversations in my various euro-creoles but
I have to tell any lingering gloomadon-poppers that never once
have I felt that this country would be in any way disadvantaged
by extricating ourselves from the EU treaties

Economics of European
Integration, WT 2016/17
EU bureaucrats:
Internationale
Wirtschaftspolitik
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Interview with Juncker and Schulz in Spiegel

Schulz: I'm (also) not an integration fanatic. We agree:


Brussels can't regulate everything. I'm driven by something else:
There are forces in Europe that want to generally give national
policy priority over a common European approach. We have to
prevent this.

Economics of European
Integration, WT 2016/17
Primary sources:
Internationale
Wirtschaftspolitik
Universitt Trier

Boris Johnson: Speech to Conservative Party Conference


2016 http://blogs.spectator.co.uk/2016/10/full-text-boris-
johnsons-conference-speech/

Interview with Juncker and Schulz in Spiegel


http://www.spiegel.de/international/europe/interview-with-jean-
claude-juncker-and-martin-schulz-a-1102110.html

Panel discussion Brexit and the European Project


http://www.nber.org/themes/brexit/brexitsummary.shtml

Economics of European
Integration, WT 2016/17
Internationale
Wirtschaftspolitik
Universitt Trier

From Boris Johnsons Speech to Conservative Party


Conference 2016:

We will remain committed to all kinds of European cooperation


at an intergovernmental level whether it is maintaining
sanctions against Russia for what is happening in Ukraine or
sending our navy to help the Italians stem the migrant flow
through the central Mediterranean.

Economics of European
Integration, WT 2016/17
Asylum applications (non-EU) in the EU-28
Member States (thousands)
Internationale
Wirtschaftspolitik
Universitt Trier

Economics of European
Integration, WT 2016/17
Countries of origin of (non-EU) asylum seekers
in the EU-28 Member States (thousands)
Internationale
Wirtschaftspolitik
Universitt Trier

Economics of European
Integration, WT 2016/17
Number of first instance and final decisions on
(non-EU) asylum applications (thousands)
Internationale
Wirtschaftspolitik
Universitt Trier

Economics of European
Integration, WT 2016/17
EU sanctions (1)
Internationale
Wirtschaftspolitik
Universitt Trier
European Union External Action:

Sanctions are one of the EU's tools to promote the objectives of


the Common Foreign and Security Policy (CFSP): peace,
democracy and the respect for the rule of law, human rights and
international law. They are always part of a wider,
comprehensive policy approach involving political dialogue and
complementary efforts. EU sanctions are not punitive, but
designed to bring about a change in policy or activity by the
target country, entities or individuals. At the same time, the EU
makes every effort to minimise adverse consequences for the
civilian population or for legitimate activities.

Available at: http://eeas.europa.eu/topics/sanctions-policy/423/sanctions-


policy_en#Consolidated+list+of+sanctions
Economics of European
Integration, WT 2016/17
EU sanctions (2)
Internationale
Wirtschaftspolitik
Universitt Trier
Consolidated list of sanctions available at:
http://eeas.europa.eu/topics/sanctions-policy/8442/consolidated-list-
of-sanctions_en

EU sanctions against Russian Federation: March-July 2014


Crimea sanctions; 31.07.2014 - measures targeting sectoral
cooperation and exchanges with Russia; 08.09.2014 - prohibition of
services in energy sector (concretization on 04.12.2014) and
hardening of economic sanctions targeting exchanges with Russia
in specific economic sectors. Several rounds of prolongation,
currently till mid-summer 2017.

6.08.2014 Russian food embargo, targeted against countries that


imposed economic sanctions against Russian legal or physical
entities or joined this decision, initially for 1 year, prolonged till the
end of 2017.
Economics of European
Integration, WT 2016/17
Summary
Internationale
Wirtschaftspolitik
Universitt Trier

European integration has always been driven by political


factors and realized by economic means.
There have been three big increases in European economic
integration:
Formation of the customs union from 1958 to 1968 eliminated
tariffs and quotas on intra-EU trade;
The Single Market Programme implemented between 1986 and
1992 eliminated many non-tariff barriers and liberalized capital
flows within the EU;
The Economic and Monetary Union melded together the
currencies of most EU members.

Economics of European
Integration, WT 2016/17
Key Dates
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Economics of European
Integration, WT 2016/17
Key Dates (2)
Internationale
Wirtschaftspolitik
Universitt Trier

Economics of European
Integration, WT 2016/17
Key Dates (3)
Internationale
Wirtschaftspolitik
Universitt Trier

Economics of European
Integration, WT 2016/17

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