Types of Economic Integration

Study Flashcards Play Quiz

Questions and Answers

What was highlighted by the monetary convergence of EU countries?

The disparities between countries in terms of economic development

What was a cost of countries participating in EMU?

The loss of autonomy in exchange and monetary matters

What was established by the Treaty on European Union?

The right of European citizenship

What principle was applied in the reinforcement of democratic legitimacy?

The principle of subsidiary Signup and view all the answers

What was created as a result of the reinforcement of democratic legitimacy?

The Committee of the Regions and the Economic and Social Committee Signup and view all the answers

What is a right underlying European citizenship?

The right of movement and residence Signup and view all the answers

What is a consequence of the unification of exchange rate policies?

Companies are in direct competition Signup and view all the answers

What is necessary for EU countries to achieve real convergence?

To achieve economic and social cohesion Signup and view all the answers

What is the main characteristic of a Customs Union?

The adoption of the same customs tariff with regard to trade with third countries Signup and view all the answers

What is the primary goal of an Economic Union?

To eliminate differences between Member States Signup and view all the answers

What is added to an Economic Union to form an Economic and Monetary Union?

A common currency Signup and view all the answers

What is the name of the policy that allows for the free movement of people, goods, services, and capital?

Common Market Signup and view all the answers

What is one of the primary objectives of the European Union according to the Lisbon Treaty?

To promote peace, its values and the well-being of its citizens Signup and view all the answers

What is the result of an Economic and Monetary Union on national policies?

They are replaced by common policies Signup and view all the answers

What is a key aspect of the European Union's economic policy?

Encouraging sustainable development and balanced economic growth Signup and view all the answers

What is the European Union's goal for regional development?

To reduce the economic disparities between regions Signup and view all the answers

What is the main difference between an Economic Union and an Economic and Monetary Union?

The adoption of a common currency Signup and view all the answers

What is the primary goal of a Common Market?

To minimize the impacts of the free movement of people, goods, services, and capital Signup and view all the answers

How does the European Union aim to reduce social exclusion?

By combating discrimination and promoting social progress Signup and view all the answers

What is the name of the act that drove the creation of the Single Market?

Single European Act Signup and view all the answers

What is a key aspect of the European Union's area of freedom, security, and justice?

The abolition of internal borders, with regulated external borders Signup and view all the answers

What is a goal of the European Union's common policies?

To respond to problems that may arise in economies, such as inflation and unemployment Signup and view all the answers

What is the European Union's approach to economic growth?

Focused on encouraging economic growth through innovation and human capital Signup and view all the answers

What is a key aspect of the European Union's technological policy?

To foster scientific and technological progress Signup and view all the answers

Study Notes

Forms of Economic Integration

Customs union: in addition to free trade, member countries adopt the same customs tariff for trade with third countries (e.g., EFTA)
Common Market: institutionalization of free movement of people, goods, services, and capital, with common policies to harmonize economic and social spaces (e.g., Single Market)
Economic Union: harmonization of economic and social policies, aiming to eliminate differences between member states (e.g., EU)
Economic and Monetary Union (EMU): adds a common currency to Economic Union, with total harmonization of economic, monetary, fiscal, exchange rate, and environmental policies
Political Union: aims to establish European citizenship, reinforce democratic legitimacy, and strengthen the EU's role in promoting peace, values, and well-being

Characteristics of EMU

Common currency
Total harmonization of economic, monetary, fiscal, exchange rate, and environmental policies
Supranational bodies make decisions, reducing national autonomy
Aims to eliminate exchange rate disparities and achieve economic convergence

Objectives of the European Union

Promote peace, values, and well-being of citizens
Strengthen economic, social, territorial cohesion, and solidarity between member states
Protect and improve the environment
Encourage sustainable development, balanced economic growth, and social progress
Provide an area of freedom, security, and justice
Foster scientific and technological progress
Combat social exclusion and discrimination