EU January Exam PDF

**EU Accession and Policies** **Key Historical Accessions:** - **Iberian Accession (1986)** - Spain and Portugal joined. - Post-war authoritarian regimes, later democratization. - Economic growth challenges: large population, agriculture, regional policy issues....

**EU Accession and Policies** **Key Historical Accessions:** - **Iberian Accession (1986)** - Spain and Portugal joined. - Post-war authoritarian regimes, later democratization. - Economic growth challenges: large population, agriculture, regional policy issues. - EEC expanded by 50 million people, boosting the market (\"Blue Europe\"). - **German Reunification (1990)** - Unexpected event due to DDR collapse. - DDR joined the EU and NATO through Germany's reunification. - France and the UK concerned about Germany\'s size and power in Europe. - **Northern Accession (1995)** - Austria, Sweden, and Finland joined the EU. - Norway refused membership twice via referenda (1973, 1994). - EEA (European Economic Area) allowed partial integration for EFTA countries. - **Eastern Enlargement (2004)** - Former Eastern Bloc countries joined: Czech Republic, Hungary, Poland, Slovakia, Estonia, Latvia, Lithuania, Slovenia, Malta, Cyprus. - Copenhagen Criteria established: - **Political**: Democracy, rule of law, human/minority rights. - **Economic**: Functioning market economy. - **Legislative**: Adoption of EU laws (acquis communautaire). - **Further Enlargements (2007, 2013)** - 2007: Bulgaria and Romania joined. - 2013: Croatia joined (accession talks began in 2005). - **Pending Candidates and Rejections** - **Current Candidates**: Albania, North Macedonia, Montenegro, Serbia, Turkey (unlikely before 2020). - **Rejected Applications**: Morocco (non-European), Turkey (political factors). - **Refusals by Referendum**: Norway (twice), Switzerland (1992). **EU Institutions and Treaties:** - **Maastricht Treaty (1993)**: - Created the EU formally from the EC. - Criteria for membership based on democracy, market economy, and legal alignment. - **Treaty of Nice (2001)**: - Institutional reform to prepare for further enlargements. - **Lisbon Treaty (2009)**: - Reformed voting systems and institutional balance in the EU. **Economic and Regional Impacts of Enlargement:** - **Economic Effects**: - EU expanded by 34% area, 50% agricultural land, 29% population, 9% GDP. - Per capita GDP declined by 16% after enlargement due to poorer Eastern countries joining. - **Core and Periphery Divide**: - **Core**: \"Blue Banana\" (economic powerhouses like Germany, France, Benelux). - **Periphery**: Eastern and Southern Europe. - **Urban-Rural Divide**: - Capitals like Budapest and Prague developed faster than rural regions. - V4 (Czech Republic, Hungary, Poland, Slovakia) showed increasing urban-rural economic inequality. **Key Concepts and Terms:** - **EFTA (European Free Trade Association)**: Non-EU countries with free trade agreements (Norway, Iceland, Switzerland). - **EEA (European Economic Area)**: Provides EU market access to EFTA members. - **Copenhagen Criteria**: EU membership requirements. - **Acquis Communautaire**: The body of EU law that new members must adopt. **\ ** **Frequently Asked Question Areas:** 1. **What was the first step towards European integration?** - European Coal and Steel Community (ECSC, 1951). 2. **What treaty formally established the EU?** - Maastricht Treaty, 1993. 3. **What are the Copenhagen Criteria?** - Political, Economic, Legislative standards for EU accession. 4. **Why was Norway not part of the EU?** - Rejected membership through referenda in 1973 and 1994. 5. **What were the economic effects of Eastern Enlargement?** - Increased market size but lower average per capita GDP. **\ ** **Key Geopolitical Concepts in European Integration:** **Dutch EU-Politics:** - Trade-driven, historically multilateral since the 16th--17th centuries. - Strong economic partnerships with Germany and the UK. - Emphasizes balancing power and coalition building. - Atlantist policies: close ties with NATO and the USA. - Advocates for reducing payments to the EU common budget. **Belgian EU-Politics:** - Colonial history (Congo) influences relations with the Global South. - Energy-dependent, especially on hydrocarbons from Maghreb and Near East. - Strong supporter of East Central European membership and Turkey's potential accession. **Luxembourg EU-Politics:** - Focus on deep European integration and supranationalism. - Active participant in European institutions, emphasizing the European Commission\'s power. - Concern over **democratic deficit** in EU decision-making. **French EU-Politics:** - Historically linked to European unity since Charlemagne\'s empire. - Strong agricultural lobby pushing for **CAP (Common Agricultural Policy)** preservation. - Advocates strategic partnerships with **Maghreb** countries. - After WWII: Focused on controlling German steel production to prevent conflict. - **Independent security policy:** nuclear power and defense independence from the USA. - Balances German financial dominance through **social and employment policies**. **German EU-Politics:** - Strong supporter of **euro stability** and **fiscal discipline**. - Seeks **CAP reductions**, favoring cohesion policy instead. - Frankfurt: Seat of the **European Central Bank (ECB)**. - Promotes **federalism** and a \"Europe of Regions.\" - Historically **pacifist**, but newer generations support a larger global role. - Split on Turkey\'s accession (SPD: supportive, CDU/CSU: against). **British EU-Politics:** - Traditionally **Euroskeptic**, especially under Margaret Thatcher (\"I want my money back\"). - Focus on **intergovernmental cooperation** (less EU control, more national sovereignty). - Opposed to the **Schengen Zone** and deep EU integration. - Supported **Atlanticism**: strong US and NATO ties. - **Brexit (2017)** resulted from long-standing skepticism. **Key Treaties and Enlargement Policies:** **Key Treaties:** - **Treaty of Paris (1951)**: Created the European Coal and Steel Community (ECSC). - **Treaty of Rome (1957)**: Established the EEC (European Economic Community). - **Single European Act (1986)**: Strengthened market integration. - **Maastricht Treaty (1993)**: Formed the EU and introduced the euro criteria. - **Lisbon Treaty (2009)**: Reformed decision-making and voting rules. **Copenhagen Criteria (1993): Requirements for EU Membership** 1. **Political:** Democracy, rule of law, human and minority rights. 2. **Economic:** Functioning market economy. 3. **Legislative:** Align national laws with EU laws (**acquis communautaire**). **EU Enlargements:** - **1986 Iberian Enlargement:** Spain and Portugal joined after democratization. - **1990 German Reunification:** DDR joined the EU through Germany. - **1995 Northern Enlargement:** Austria, Finland, Sweden (Norway declined via referendum). - **2004 Eastern Enlargement:** 10 countries, including Poland, Hungary, Czech Republic. - **2007:** Bulgaria, Romania joined. - **2013:** Croatia joined. **Key Economic Policies and Challenges:** - **Common Agricultural Policy (CAP):** French-supported; subsidies for farmers. - **Cohesion Policy:** Financial support for poorer regions, favored by Germany. - **Economic Effects of Enlargement:** - Area +34%, population +29%, GDP +9%. - **Per capita GDP** dropped 16% due to new, less developed members. **EU Core-Periphery Divide:** - **Core:** Western Europe (Blue Banana: UK, France, Germany, Benelux). - **Periphery:** Eastern and Southern Europe (poorer, less developed). - **Urban-Rural Divide:** Capitals outperform rural areas, especially in V4 countries. **Current and Candidate Countries:** - **Current Candidates:** Albania, North Macedonia, Montenegro, Serbia, Turkey. - **Rejected Applications:** Morocco, Turkey (political concerns). - **Referenda Refusals:** Norway (1973, 1994), Switzerland (1992). **\ ** **Frequently Asked Question Areas for EU Integration and Policies:** **General History and Foundation:** 1. **What was the first step towards European integration?** - **Answer:** European Coal and Steel Community (ECSC, 1951). 2. **What treaty formally established the European Union?** - **Answer:** Maastricht Treaty (1993). 3. **What are the Copenhagen Criteria?** - **Answer:** The requirements for EU membership focusing on: - **Political:** Democracy, rule of law, human and minority rights. - **Economic:** Functioning market economy. - **Legislative:** Harmonization with EU laws (**acquis communautaire**). **Enlargement and Accession:** 4. **Which countries joined the EU during the Iberian enlargement (1986)?** - **Answer:** Spain and Portugal. 5. **What event led to German reunification and EU integration in 1990?** - **Answer:** The fall of the Berlin Wall and the collapse of East Germany (DDR). 6. **Which countries joined the EU in the 2004 Eastern Enlargement?** - **Answer:** Czech Republic, Hungary, Poland, Slovakia, Estonia, Latvia, Lithuania, Slovenia, Malta, and Cyprus. 7. **Which country joined the EU in 2013?** - **Answer:** Croatia. 8. **Which countries joined the EU in 2007?** - **Answer:** Bulgaria and Romania. 9. **Which countries refused EU membership through referenda?** - **Answer:** Norway (1973, 1994), Switzerland (1992). 10. **Why was Turkey's EU membership application delayed?** - **Answer:** Political and human rights concerns, despite being a candidate since 1999. **Key Policies and Treaties:** 11. **What does \"acquis communautaire\" mean?** - **Answer:** The body of EU laws and regulations all member states must adopt. 12. **What is the Common Agricultural Policy (CAP)?** - **Answer:** An EU policy providing subsidies to European farmers, heavily supported by France. 13. **What is the EU's Cohesion Policy?** - **Answer:** A policy aimed at reducing economic disparities among EU regions, focusing on financial support for less developed areas. 14. **What was the purpose of the Maastricht Treaty?** - **Answer:** Officially established the EU and introduced the criteria for adopting the euro currency. 15. **What is the Single European Act (1986)?** - **Answer:** It strengthened the common market by reducing trade barriers. **Core-Periphery Divide and Economic Issues:** 16. **What is the "Blue Banana" in the EU context?** - **Answer:** The economic core area stretching from the UK through Germany to Northern Italy. 17. **What is the economic challenge caused by Eastern Enlargement?** - **Answer:** A drop in average **per capita GDP** due to the inclusion of poorer economies. 18. **Which regions are considered part of the EU periphery?** - **Answer:** Eastern and Southern Europe, including Bulgaria and Romania. 19. **What does the EU\'s rural-urban divide refer to?** - **Answer:** Economic disparities where capital cities often outperform rural regions, especially in the V4 countries. **Country-Specific EU Policies:** 20. **Which country is most associated with reducing CAP payments and emphasizing fiscal discipline?** - **Answer:** Germany. 21. **Which country is known for its Euroskepticism and eventually left the EU?** - **Answer:** The UK (Brexit, 2017). 22. **Which country is most associated with deep European integration and supranationalism?** - **Answer:** Luxembourg. 23. **Which country maintains a strong agricultural lobby in the EU?** - **Answer:** France. 24. **Which country refused EU membership through referenda twice but is part of the EEA?** - **Answer:** Norway. **\ ** **Effects of European Civilization (Jordan, 1996)** **European Cultural Pessimism (20th Century):** - **Post-WWI Era:** - European nations fighting each other reduced trust in European unity. - Rise of **international ideologies** replacing nationalism: - **Socialism:** International working-class solidarity. - **Catholicism:** Universal rather than national focus. - **Philosophical Decline:** - **Spengler:** \"The Decline of the West.\" - **Ortega y Gasset:** Criticism of mass culture replacing European intellectualism. **Pan-Europeanism (Interwar Period):** - **Key Figures and Ideas:** - **Carlo Sforza:** Advocated a \"European United States.\" - **Richard Coudenhove-Kalergi:** Published *Pan-Europe* (1923), warning against: - Eastern Threat (Communism). - Western Threat (American Economic Influence). - **1926:** First Pan-European Congress established. - **French Foreign Minister Briand:** Proposed integrating **Pan-Europeanism** into the League of Nations. **World War II and Cold War (Worst Periods for Europe):** - **WWII:** - **Hitler\'s \"New European Order\" (Pax Germanica)** -- Attempted continental dominance. - **Post-War Consequences:** - Decline of European influence in global politics. - Division of Europe into East and West (Iron Curtain). - Emergence of **USA and USSR** as superpowers. - **Start of EU Integration** with step-by-step expansion. **Factors Driving European Integration After WWII:** - **Military and Defense:** - Initial focus due to Soviet threats. - **Economic Factors:** - Balance against **American economic hegemony**. - Collapse of colonial empires redirected focus towards European cooperation. - Technological advancements and **R&D costs** led to the need for market expansion. - Infrastructure integration (energy, transport, telecom). - **Cultural and Ideological Factors:** - Vision of Europe as a **country** with shared symbols (currency, flag, anthem). **Key Events in Early European Integration:** - **Treaty of Rome (1957):** - Established the **European Economic Community (EEC)**. - Key goals: - Customs Union. - Economic Union. - Development Funds. - **ECSC (1952):** European Coal and Steel Community. - **EURATOM (1958):** Peaceful use of nuclear energy. - **First Enlargement (1973):** - UK, Ireland, Denmark joined. - Norway rejected EU membership through a referendum. - Economic challenges led to **temporary derogations** (e.g., fishing rights). **Greek Accession (1981):** - **Challenges:** - **Political Instability:** Military junta from 1967-1974. - **Cultural Differences:** Orthodox Christianity. - **Conflict with Turkey:** Cyprus issue (1974 invasion by Turkey). - **Economic Lag:** Greece\'s per capita GDP remained below the EU average. **Iberian Accession (1986):** - **Spain and Portugal:** - Both democratized after long authoritarian regimes (Franco, Salazar). - **Challenges:** Agriculture, large population, regional economic differences. - **Impact:** The **EEC** expanded by 50 million people, strengthening the **European market** (\"Blue Europe\"). **German Reunification (1990):** - **Fall of the Berlin Wall (1989):** Unexpected collapse of East Germany. - **Key Events:** - Rapid reunification under Christian Democrats. - DDR legally absorbed into Germany, and thus into the **EC and NATO**. - **Geopolitical Reactions:** - **France and UK:** Concerned about Germany\'s rising power. - **USA:** Cautiously supportive. **Northern Accession (1995):** - **New Members:** Austria, Finland, Sweden. - **Norway Rejected Again** (1994 Referendum). - **Economic Integration:** - Creation of the **European Economic Area (EEA)**: EU12 + EFTA members. - EFTA continued to exist with Norway, Iceland, and Switzerland remaining non-EU. **Eastern Enlargement (2004-2007):** - **1994:** Europe Agreements set preconditions for Eastern Bloc integration. - **1997:** Agenda 2000 financial framework for enlargement. - **2004:** 10 countries joined, including Hungary, Poland, Czech Republic, and the Baltics. - **2007:** Bulgaria and Romania joined, completing the Eastern expansion. **Challenges of Enlargement:** - **Economic Lag:** - **GDP per capita** dropped by 16% due to poorer countries joining. - **Widening vs. Deepening:** - Balancing **community achievements** with rapid expansion. - Maintaining **financial sustainability**. **\ ** **Frequently Asked Questions Section:** **General EU History:** 1. **What treaty officially established the European Union?** - **Answer:** Maastricht Treaty (1993). 2. **What was the first step toward European integration?** - **Answer:** The European Coal and Steel Community (ECSC, 1952). **Enlargements and Membership:** 3. **Which countries joined the EU in the 1986 Iberian Enlargement?** - **Answer:** Spain and Portugal. 4. **What event led to German reunification and its EU integration?** - **Answer:** The fall of the Berlin Wall (1989). 5. **Which countries joined in the 2004 Eastern Enlargement?** - **Answer:** Czech Republic, Hungary, Poland, Slovakia, Estonia, Latvia, Lithuania, Slovenia, Malta, Cyprus. 6. **Which countries rejected EU membership through referenda?** - **Answer:** Norway (1973, 1994) and Switzerland (1992). **Key Policies and Treaties:** 7. **What is the Common Agricultural Policy (CAP)?** - **Answer:** Subsidies for European farmers, heavily supported by France. 8. **What does \"acquis communautaire\" refer to?** - **Answer:** The full body of EU laws and regulations new members must adopt. 9. **What is the main purpose of the EU's Cohesion Policy?** - **Answer:** Reducing economic disparities among regions. **Geopolitical and Economic Factors:** 10. **What is the \"Blue Banana\"?** - **Answer:** The economic core of Europe from the UK through Germany to Northern Italy. 11. **What challenge did Eastern Enlargement create?** - **Answer:** A decrease in per capita GDP due to poorer member states joining. 12. **What is the European Economic Area (EEA)?** - **Answer:** An agreement allowing non-EU countries to access the EU single market. **Country-Specific Policies:** 13. **Which country emphasizes fiscal discipline and reduced CAP spending?** - **Answer:** Germany. 14. **Which country prioritizes deep integration and supranationalism?** - **Answer:** Luxembourg. 15. **Which country left the EU in 2017?** - **Answer:** The UK (Brexit). **\ ** **Geographic Concept of European Space** **Definition and Physical Boundaries of Europe:** - **Geographically:** - Europe is part of the **Eurasian Plate**, not a standalone continent. - Clear borders on the **South, West, and North:** - South: Mediterranean Sea. - West: Atlantic Ocean. - North: Arctic Ocean. - **Eastern border debate**: - Historically defined by Ural Mountains, Ural River, Caspian Sea, Caucasus Mountains, and Black Sea. - The definition emerged clearly only in the 19th century (Humboldt). - **Human Geographic Borders:** - Borders often align with **state boundaries**. - **Transcontinental Countries:** - Russia: 72% population in Europe, 29% land area. - Kazakhstan and Azerbaijan: Mostly in Asia. - Turkey: 3% of land in Europe. - Armenia and Cyprus: Geographically Asian but culturally European. **Cultural and Social Criteria of \"Europeanism\" (Jordan, T.G., 1996):** - **Religion:** Over 80% Christian. - **Language:** Over 80% Indo-European languages. - **Anthropology:** Over 90% white population. - **Health:** Infant mortality below 1%. - **Economy:** Per capita GDP above \$10,000. - **Education:** Literacy rate above 90%. - **Infrastructure:** Road density \> 400 km/km². - **Employment:** Agricultural workforce below 15%. - **Urbanization:** Urban residents above 50%. - **Political Stability:** Parliamentary democracy established before 1980. **Political Borders of Europe:** - **Council of Europe:** - Broader membership, includes nearly all geographic Europe. - Includes non-EU territories like Siberia, Anatolia, and parts of the Caucasus. - **European Union (EU):** - 27 members. - Overseas territories included (e.g., French Guiana). - **Greenland:** Entered via Denmark but left in 1983. **Historical Evolution of Europeanism:** - **Ancient Europe:** - Name derived from Phoenician \'ereb\' (sunset). - Originally referred to **Thrace and Macedonia**. - Expanded by **Herodotus** and **Hippocrates** to Gibraltar and the Caucasus. - **Roman Empire (1st Major Integration):** - Defined much of modern Europe's cultural and legal foundations. - Greek-Roman heritage shaped European intellectualism. - **Middle Ages (Christian Europe Concept):** - **Western Catholicism** became central to the European identity. - **Charlemagne\'s Empire:** Seen as a cultural foundation for the modern EU. - **Eastern Europe** (Byzantine Empire) was excluded from early definitions. - **Renaissance and Reformation:** - Emergence of **Rationalism** and scientific achievements. - **Protestant Reformation:** Split European unity between North and South. - **19th Century (Rise of Nationalism and European Unity Ideas):** - **Colonization** fostered a shared European identity. - **Napoleonic Empire:** The third major European integration attempt. - **Movements for Unity:** Mazzini, Kossuth, and Victor Hugo proposed ideas of a **European Confederation**. **Modern European Integration Milestones:** - **WWI and WWII:** - Loss of European influence. - Rise of **USA** and **USSR** as superpowers. - **Cold War Division:** - Europe split by the **Iron Curtain** (East-West divide). - Led to the gradual formation of the **European Union**. - **EU Integration Factors Post-WWII:** - **Military:** Soviet threats. - **Economic:** Need to balance US dominance and declining colonial power. - **Technological:** Costly R&D and infrastructure needs encouraged cooperation. - **Treaty of Rome (1957):** - Created the **EEC (European Economic Community)**. - Key pillars: - Customs Union. - Economic Union. - Development Funds. **\ ** **Frequently Asked Questions Section:** **Geography and Boundaries:** 1. **What are the physical borders of Europe?** - **Answer:** Mediterranean (South), Atlantic (West), Arctic (North), Ural Mountains and Caspian Sea (East). 2. **Which countries are transcontinental in Europe and Asia?** - **Answer:** Russia, Kazakhstan, Turkey, Georgia, Azerbaijan. **Cultural and Social Criteria:** 3. **What are the cultural criteria of \"Europeanism\" according to Jordan (1996)?** - **Answer:** Christian religion, Indo-European languages, low infant mortality, high literacy, GDP above \$10,000. 4. **Which European country meets all cultural and social criteria outlined by Jordan?** - **Answer:** Most Western European countries (e.g., France, Germany). **Political Concepts:** 5. **What is the difference between the Council of Europe and the EU?** - **Answer:** - **Council of Europe:** Larger, focused on human rights. - **EU:** Smaller, political and economic union with shared policies. 6. **Which overseas territories are part of the EU?** - **Answer:** French Guiana, Réunion, Canary Islands, and Greenland (until 1983). **Historical Europeanism:** 7. **Which empire first spread a unified European concept?** - **Answer:** The Roman Empire. 8. **What was the influence of Charlemagne's empire on modern European unity?** - **Answer:** Inspired the founding principles of the EU, emphasizing shared cultural heritage. **Modern European Integration:** 9. **What treaty established the EEC?** - **Answer:** Treaty of Rome (1957). 10. **What was the main factor driving post-WWII European integration?** - **Answer:** Economic cooperation and security against Soviet threats. **\ ** **Key Factors of Urban Competitiveness in European Space Structure** **Key Factors Shaping Urban Competitiveness in Europe:** 1. **Context and Assumptions:** - Influences on East Central Europe after the end of the Cold War: - **Transition:** Shift from centrally planned to market economies. - **Integration:** Accession to the **EU**. - **Globalization:** Increased global economic connections. - **Divergence Trends:** - **Pan-European Convergence:** Equalization between East and West Europe. - **Urban-Rural Divergence:** Growing gap between urban centers and rural areas. **Data and Regional Scope:** - **Data Source:** Eurostat (1995-2013). - **Focus Region:** East Central Europe, especially the **V4 countries** (Czech Republic, Hungary, Poland, Slovakia). - **Measurement:** Economic development measured by **per capita GDP** in euros. - **Regional Levels:** - **Urban Regions:** Cities with a population \>500,000 (including Bratislava). - **Rural Regions:** Defined as all areas excluding urban regions, not specifically linked to agricultural character. **Key Definitions:** - **Urban-Rural Duality Index (DUR):** - Formula: DUR=xUxRDUR = \\frac{x\_U}{x\_R}DUR=xR​xU​​ - **xUx\_UxU​** = Average per capita GDP in urban regions. - **xRx\_RxR​** = Average per capita GDP in rural regions. - Higher values indicate greater economic disparities between cities and rural areas. **Key Patterns in Urban Competitiveness:** **Urban-Rural Disparities:** - **Post-socialist countries** show significant urban-rural gaps. - Capital cities often outperform the rest of the regions significantly. - **Example:** In the **V4 countries**, capital cities like Budapest and Prague show much higher economic performance than rural areas. **Urban Competitiveness and Development Levels:** - A higher **urban-rural duality index** is typical of East and Central European countries. - Western countries show **lower duality** due to more balanced development. - Urban areas often attract more **international investments** and economic activity. **Urban Competitiveness in the European Economic Pattern:** - **Core Regions**: - Urban centers in Germany, France, and the UK dominate in economic activity. - Wealth and productivity tend to concentrate in **capital cities** and key industrial regions. - **Peripheral Regions**: - Eastern Europe and Southern Europe still face **economic lag** compared to Western Europe. - The economic core concept includes **Blue Banana** (UK to Northern Italy) and the **Golden Banana** regions. **Key Factors Affecting Urban Competitiveness:** 1. **Capital City Dominance:** - Capitals often outperform smaller cities and rural areas. 2. **Post-Socialist Lag:** - Urban areas have seen stronger growth compared to rural zones post-EU accession. 3. **Foreign Investment:** - Large urban regions attract **international capital** more easily. **Challenges for Urban Competitiveness in V4 Countries:** - **Gerrymandering for Development:** - Regions redrawn to maximize EU fund access (e.g., Warsaw\'s suburban zone). - **Limited Urban Representation:** - Only a small fraction of **V4 companies** ranks among the top EU corporations. - **Air Traffic and Business Events:** - **V4 cities** show a weaker presence in air traffic and global business events. **\ ** **Frequently Asked Questions Section:** **Urban Competitiveness and Development:** 1. **What is the Urban-Rural Duality Index (DUR)?** - **Answer:** 2. **Which European regions show the highest urban competitiveness?** - **Answer:** Western European capitals and industrial hubs, particularly **Germany, France, and Benelux**. 3. **What trend is observed in urban competitiveness in V4 countries?** - **Answer:** Capital cities outperform rural regions significantly. **Key Concepts and Definitions:** 4. **How are urban and rural regions defined in this study?** - **Urban Regions:** Cities with over **500,000** residents. - **Rural Regions:** All other regions not classified as urban. 5. **What regions are considered part of the European economic core?** - **Answer:** Blue Banana (UK to Northern Italy) and Golden Banana regions. **Challenges and Policies:** 6. **What major challenge affects urban competitiveness in post-socialist countries?** - **Answer:** Urban areas receive disproportionately higher investments and development than rural zones. 7. **Why do V4 cities lag behind Western capitals in business events and air traffic?** - **Answer:** Limited global integration and lower international investment appeal. **\ ** **Sectoral Background of Urban-Rural Economic Development Inequalities (V4 Focus)** **Key Factors in Urban-Rural Economic Development Inequalities:** - **Main Observation:** - Economic success in **V4 countries** (Czech Republic, Hungary, Poland, Slovakia) is closely linked to sectoral shifts rather than uniform regional development. - Urban-rural inequalities have grown, primarily driven by **tertiary sector growth** (services and high-value industries). **Key Sectoral Trends in V4 Countries (1995-2013):** - **Urban Areas:** - Stronger growth in the **tertiary sector** (services, finance, IT). - Attraction of **foreign investments** in business services and innovation. - **Rural Areas:** - More dependent on **agriculture** and **traditional industries**. - Slower adaptation to the knowledge economy. **Industrial Transformation in Hungary (1992-1998):** - **Regional Shifts:** - **Budapest\'s dominance shrank** as industrial activity spread more evenly to the countryside. - Industrial **employment** and **export activities** grew outside the capital. - **Sectoral Shifts:** - **Machinery** emerged as the most successful sector, especially in industrial export. - Increased **specialization** in regions focusing on industrial production. **Key Indicator: Herfindahl-Hirschman Index (HHI)** - **Measurement of Regional Industrial Specialization:** - Tracks the **concentration** of economic activity by sector. - **Findings (1992-1998)**: - Increased specialization in **machinery** and industrial exports. - Reduced diversity in rural regions\' economic activities. **Growing Urban-Rural Dualism in Post-Socialist Countries:** - **Key Patterns Identified:** - **Capital cities** (e.g., Budapest, Prague) outperform the countryside significantly. - Urban areas benefit from **investment** and **modern services** growth. - Rural regions lag behind due to **limited sectoral diversification**. - **Urban Dominance Factors:** - Higher **GVA (Gross Value Added)** in urban areas. - Stronger **tertiary sector** expansion. **Conclusions on Urban-Rural Economic Inequality:** - **V4 Countries:** - Characterized by **growing dualism** between urban and rural areas. - More visible in **less developed** V4 members compared to Western Europe. - **Sectoral Shift:** - Urban success in V4 is **not independent** of the tertiary sector\'s rise. - **Industrial renewal** plays a secondary role, primarily in export-oriented regions. **\ ** **Frequently Asked Questions Section:** **Sectoral Structure and Urban-Rural Divide:** 1. **What has driven the urban-rural economic divide in V4 countries?** - **Answer:** The shift towards the **tertiary sector** in urban areas and slower adaptation in rural regions. 2. **Which sector played a major role in Hungary\'s regional industrial transformation?** - **Answer:** The **machinery sector**, particularly in export-driven regions. **Indicators and Measurement:** 3. **What is the Herfindahl-Hirschman Index (HHI)?** - **Answer:** A measure of economic concentration and specialization by sector in regions. 4. **What did the HHI indicate about Hungary\'s economic development in the 1990s?** - **Answer:** Increasing **specialization** in industrial sectors like **machinery**, with reduced diversity in rural areas. **Regional Differences and Trends:** 5. **What characterizes economic disparities between urban and rural regions in V4 countries?** - **Answer:** - Urban regions show **higher GDP** and stronger **tertiary sector growth**. - Rural regions remain reliant on **agriculture** and traditional industries. 6. **Why has Budapest\'s industrial dominance decreased since the 1990s?** - **Answer:** Industrial activities and employment spread more evenly across Hungary during **transition reforms**. **Policy Implications and Challenges:** 7. **Why are capital cities in V4 countries outperforming rural areas?** - **Answer:** - Better access to **foreign investments**. - **Service sector growth**. - Greater focus on **modern industries**. 8. **What could help reduce the urban-rural economic gap in V4 countries?** - **Answer:** - Encouraging **industrial diversification** in rural areas. - Supporting **education and innovation** beyond capital cities. **\ ** **Basics of Integration** **Definition of Integration:** - **Meaning:** Merging, fitting, or union of elements into a system. - **Types:** - **Global Integration:** Large-scale cooperation between multiple nations. - **Regional Integration:** Cooperation limited to specific regions (e.g., EU). - **Forms of Integration:** - **Spontaneous:** Synchronization of values and decisions naturally. - **Economic Integration:** International organization of production. - **Goals of Integration:** - Expand resources and power. - Modernize economies. - Promote economic development. **Multi-Level Integration Process:** - **Micro-Level Integration:** - Coordination between individual economic units (firms, businesses). - Optimal market size and trade efficiency. - **Macro-Level Integration:** - Broader socio-economic environment, national policies. - **Society-Level Integration:** - Regional and global strategic cooperation for development. - Gradual reduction of national sovereignty. **Economic Integration Basics:** - **Economics Definition:** Management of production, distribution, and consumption. - **Key Economic Factors:** - **Production Factors:** Land, labor, capital, entrepreneur, technology. - **Goals:** Maximize profit, minimize cost, reduce risks. - **Microeconomics:** Focus on individual units (households, firms). - **Macroeconomics:** Entire national economy with aggregated sectors. **Theories of Integration:** 1. **Liberal Integration Theory:** - Free market competition. - Comparative advantage and specialization. - Wages, profit, and interest rates equalize. 2. **Regulation Theories (Criticism of Liberal Theories):** - Free competition benefits stronger economies. - Unequal market power can lead to economic disparity. - Integration requires policy harmonization. 3. **Theories for Division of Labor:** - Specialization across member states for efficiency. 4. **Conflict Theories:** - Integration helps resolve disputes peacefully. 5. **Transactionalist Theories:** - Integration happens through continuous economic cooperation. 6. **Interdependency Theory:** - Economic stability and development depend on mutual trade. **Political Theories of Integration:** - **Pluralist Theory:** - Limited integration, preserving national sovereignty. - **Functionalist Theory:** - Cooperation beyond states, focusing on global issues. - **Neofunctionalist Theory:** - Regional economic and political integration through shared institutions. - **Federalist Approach:** - Supranational authorities with shared constitutional frameworks. **Forms and Phases of Integration:** 1. **Preferential Trading Area (PTA):** - Reduces tariffs between member states. 2. **Free Trade Area:** - No tariffs among members but separate external policies. 3. **Customs Union:** - Free trade + common external tariffs. 4. **Common Market:** - Free movement of goods, services, capital, and labor. 5. **Single Market:** - Removal of all barriers, including technical standards. 6. **Economic and Monetary Union:** - Coordinated fiscal and monetary policies (e.g., Eurozone). 7. **Political Union:** - Supranational governance with legislative powers. **Phases of Economic Integration:** - **Negative Phase:** - Removal of trade barriers (tariffs, quotas). - **Positive Phase:** - Policy harmonization and creation of shared institutions. **Key Integration Models:** - **Concentric Circles Theory:** - Core countries with full integration, outer layers with partial integration. - **À la Carte Integration:** - Selective participation in policies (e.g., UK with Schengen opt-out). - **Multi-Speed Integration:** - Different member states integrate at different paces (e.g., Euro adoption). **International Organizations and Their Structures:** - **Key Characteristics:** - Created by treaties. - States maintain sovereignty. - Provide a framework for cooperation. - **Types of Organizations:** - **Universal:** Open to all states (UN, WTO). - **Regional:** Limited to specific regions (EU, NAFTA). - **Intergovernmental:** Decisions made by states collectively (OECD). - **Supranational:** Independent authority above states (EU). **Key International Organizations:** - **United Nations (UN):** - Founded in 1945 for global peace and cooperation. - Principal organs: General Assembly, Security Council, ICJ. - **Council of Europe:** - Founded in 1949, focuses on democracy and human rights. - **OECD:** - Focus on economic cooperation and development. - **NATO:** - Military alliance for collective defense. **\ ** **Frequently Asked Questions Section:** **Economic Integration:** 1. **What is the goal of economic integration?** - **Answer:** To expand resources, promote development, and modernize economies. 2. **What are the stages of economic integration?** - **Answer:** PTA → Free Trade Area → Customs Union → Common Market → Economic and Monetary Union → Political Union. 3. **What is a customs union?** - **Answer:** A free trade area with a common external tariff policy. **Theories of Integration:** 4. **What is the liberal theory of integration?** - **Answer:** Promotes free trade and specialization based on comparative advantage. 5. **How does the neofunctionalist theory explain integration?** - **Answer:** Regional cooperation through common institutions and indirect spillover effects. **Political Integration:** 6. **What is the federalist approach to integration?** - **Answer:** Establishment of supranational authorities with shared constitutional frameworks. 7. **What is the difference between a common market and a single market?** - **Answer:** - **Common Market:** Free movement of capital, labor, goods, services. - **Single Market:** Full elimination of barriers, including technical regulations. **International Organizations:** 8. **What are the primary goals of the UN?** - **Answer:** Global peace, cooperation, and socio-economic stability. 9. **What is the purpose of the OECD?** - **Answer:** Promote economic growth, stability, and international cooperation. 10. **How does NATO differ from the EU?** - **Answer:** NATO focuses on collective defense, while the EU is primarily economic and political integration. **\ ** **Basics of the European Union (EU)** **Post-WWII Context and Foundation of the EU:** - **Post-War Situation:** - Europe faced **economic devastation** and a loss of global influence. - **USA** emerged as the dominant global power. - **Early Integration Movements:** - 1947: **Marshall Plan** (rejected by the USSR). - 1948: **Benelux Union** formed. - 1949: Creation of **NATO** and **Council of Europe**. - 1951: **European Coal and Steel Community (ECSC)** -- aimed at Franco-German cooperation. **Timeline of Key Treaties in European Integration:** 1. **1951 -- Treaty of Paris:** Established the **ECSC**. 2. **1957 -- Treaty of Rome:** Created the **EEC** and **Euratom**. 3. **1986 -- Single European Act:** Goal to establish the **Single Market** by 1992. 4. **1992 -- Maastricht Treaty:** Created the **EU**, introduced the **Euro**, and defined **3 pillars**. 5. **1997 -- Amsterdam Treaty:** Expanded **justice and home affairs** policies. 6. **2001 -- Nice Treaty:** Institutional reforms to prepare for enlargement. 7. **2007 -- Lisbon Treaty:** Enhanced **EU decision-making**, eliminated the **3 pillars** system. **Key Milestones in EU Integration:** - **European Coal and Steel Community (ECSC) -- 1951:** - Founded by France, West Germany, Italy, Belgium, Netherlands, Luxembourg. - Created to centralize control over coal and steel for **peacekeeping**. - **Treaty of Rome -- 1957:** - Established the **EEC** and **Euratom**. - Focus on a **common market** with free movement of goods, capital, labor, and services. - Introduced **common policies** like agriculture and transport. **Key Policies and Principles:** - **Maastricht Criteria for the Euro:** - Price stability (inflation control). - Fiscal stability (deficit below 3% of GDP, debt below 60% of GDP). - Exchange rate stability and interest rate limits. - **Four Freedoms of the Single Market:** - Free movement of **goods**. - Free movement of **people**. - Free movement of **services**. - Free movement of **capital**. **EU Institutions:** 1. **European Council:** - **Heads of state** meeting for strategic decision-making. - No legislative powers but provides political direction. 2. **European Commission:** - **Executive body** proposing legislation and implementing policies. - Monitors compliance with EU laws. 3. **Council of the European Union:** - **Legislative body** with ministers from member states. - Uses **qualified majority voting** for most decisions. 4. **European Parliament:** - Represents EU **citizens** directly. - Co-legislates with the Council and approves the budget. 5. **Court of Justice of the EU (CJEU):** - Ensures **legal compliance** and interprets EU laws. 6. **European Central Bank (ECB):** - Manages the **Euro** and monetary policy in the Eurozone. **EU Enlargement Timeline:** - **1957:** France, Germany, Italy, Belgium, Netherlands, Luxembourg. - **1973:** UK, Ireland, Denmark. - **1981:** Greece. - **1986:** Spain, Portugal. - **1995:** Austria, Finland, Sweden. - **2004:** Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia, Cyprus. - **2007:** Bulgaria, Romania. - **2013:** Croatia. **Integration Models and Theories:** - **Supranational Integration:** Power shared at the EU level (e.g., European Commission). - **Intergovernmental Cooperation:** Member states retain full control (e.g., EU Council). - **Concentric Circles Model:** Core EU members with deeper integration, outer members with limited participation. **\ ** **Frequently Asked Questions Section:** **Foundations and History:** 1. **What was the first step toward European integration?** - **Answer:** European Coal and Steel Community (ECSC, 1951). 2. **What was the purpose of the Treaty of Rome?** - **Answer:** To establish a **common market** with free movement of goods, capital, and services. **Policies and Institutions:** 3. **What are the four freedoms of the EU Single Market?** - **Answer:** Free movement of **goods, services, capital, and people**. 4. **What institution is responsible for proposing EU legislation?** - **Answer:** The **European Commission**. 5. **What is the role of the European Parliament?** - **Answer:** It **co-legislates** with the Council and approves the EU budget. **Euro and Monetary Policies:** 6. **What are the Maastricht Criteria?** - **Answer:** Economic conditions for adopting the Euro, including price stability and debt control. 7. **Which institution manages the Euro currency?** - **Answer:** The **European Central Bank (ECB)**. **Enlargement and Membership:** 8. **Which treaty introduced the Euro and the European Union?** - **Answer:** **Maastricht Treaty (1992)**. 9. **What was the most recent country to join the EU?** - **Answer:** **Croatia (2013)**. 10. **What is required for a country to join the EU?** - **Answer:** Meeting the **Copenhagen Criteria** (democratic stability, market economy, and legal alignment). **Legal Framework:** 11. **What does \"acquis communautaire\" mean?** - **Answer:** The full body of EU laws that member states must adopt. 12. **What is the principle of subsidiarity?** - **Answer:** Decisions should be made **as close to citizens** as possible, with minimal EU interference. **\ ** **EU Common Agricultural Policy (CAP)** **Definition and Scope:** - The **Common Agricultural Policy (CAP)** is the EU\'s agricultural support program aimed at stabilizing markets, supporting farmers, and ensuring food security. - **Sectors Covered:** Crop production, animal production, agricultural services, food trade, bioeconomy sectors (biomass, bioenergy). **Historical Context:** - **1957:** Treaty of Rome established the **European Economic Community (EEC)** with agricultural support goals. - **1962:** Launch of the CAP. - **1962-2007:** Managed under the **European Agricultural Guidance and Guarantee Fund (EAGGF)**. - **2007-Present:** Handled by two funds: - **European Agricultural Guarantee Fund (EAGF)** -- Direct payments and market measures. - **European Agricultural Fund for Rural Development (EAFRD)** -- Rural development and structural aid. **Reasons for Establishing CAP:** - **Economic:** - Low sectoral income. - Need for investment and modernization. - Outdated farm structures. - **Strategic:** - Food security and self-sufficiency. - Protection from external competitors. - Rural population retention and socio-economic development. **Key Objectives (TFEU Article 39):** 1. **Increase agricultural productivity.** 2. **Ensure a fair standard of living for agricultural workers.** 3. **Stabilize markets.** 4. **Ensure availability of supplies.** 5. **Ensure reasonable prices for consumers.** **Core Principles of CAP:** 1. **Community Preference:** Preference for EU products over external imports. 2. **Common Financing:** EU-wide budget for CAP policies. 3. **Common Market Organization (CMO):** Unified approach to price stabilization and subsidies across the EU. **Key CAP Policy Areas:** 1. **Structural Policy:** - Optimize farm sizes and operational structures. - Modernize technology and production systems. 2. **Market Policy:** - Ensure market stability. - Provide price and income support for farmers. 3. **Price Policy:** - Stabilize producer income. - Manage price volatility. **CAP Tools and Instruments:** - **Direct Payments:** Income support for farmers (decoupled and coupled payments). - **Market Measures:** Intervention buying, public storage, export refunds. - **Rural Development Programs:** Support for sustainable farming and environmental protection. **Market Failures in Agriculture:** - **Unique Factors Affecting Agriculture:** - Seasonality and climate dependency. - Inelastic demand for food. - Structural challenges (family farms vs. large estates). - **Government Intervention Justification:** - Price volatility and income instability. - Need for public goods like landscape preservation. **Challenges and Reforms:** - **Issues with the Original CAP Model:** - High administrative prices leading to **overproduction**. - **Export subsidies** distorting global markets. - High financial burden on EU taxpayers. - **Reform Goals:** - Control **budget spending**. - Align with WTO trade regulations. - Shift towards **sustainability and rural development**. **Key CAP Reforms:** 1. **1980s-1990s:** Shift from price support to **direct payments**. 2. **2003 Reform:** Introduction of **decoupled payments**. 3. **2013 Reform:** Greening policies, environmental focus. 4. **CAP 2023-2027:** - Climate objectives. - **Green Deal** and **Farm to Fork** strategy integration. - Nine specific objectives, including sustainability and rural welfare. **\ ** **Frequently Asked Questions Section:** **General Principles:** 1. **What is the Common Agricultural Policy (CAP)?** - **Answer:** CAP is the EU\'s policy framework to support farmers, stabilize markets, and ensure food security. 2. **What are the three core principles of the CAP?** - **Answer:** Community Preference, Common Financing, Common Market Organization (CMO). **Objectives and Policies:** 3. **What are the objectives of the CAP under Article 39?** - **Answer:** Increase productivity, ensure fair farmer income, stabilize markets, ensure supply availability, and provide fair consumer prices. 4. **What types of payments are provided under CAP?** - **Answer:** Direct payments (decoupled and coupled) and rural development funds. **Challenges and Reforms:** 5. **Why was the CAP reformed in the 1980s?** - **Answer:** Due to high administrative prices, overproduction, and budgetary strain. 6. **What is the current focus of the CAP (2023-2027)?** - **Answer:** Sustainability, climate objectives, rural development, and biodiversity protection. **Market Failures and Justifications:** 7. **Why is agriculture considered a non-competitive market?** - **Answer:** Price volatility, production seasonality, inelastic demand, and dependency on natural factors. 8. **How does CAP address market failures?** - **Answer:** Through direct payments, price support, and rural development programs.