European Integration PDF

Portuguese and European Economics www.eeg.uminho.pt Towards a Stronger Europe: Economic Integration in a Globalized World www.eeg.uminho.pt Suggested group research topics 1. The Impact of Brexit on Digital Trade in Europe B...

Portuguese and European Economics www.eeg.uminho.pt Towards a Stronger Europe: Economic Integration in a Globalized World www.eeg.uminho.pt Suggested group research topics 1. The Impact of Brexit on Digital Trade in Europe Brexit has significantly impacted the completion of the Digital Single Market (DSM) within the European Union.The UK, as a former major player in the EU, had been instrumental in shaping the DSM's development. Its departure has created several challenges and uncertainties. References: Harcourt, A. (2023). Brexit and the Digital Single Market. Oxford University Press. A Europe fit for the digital age https://commission.europa.eu/strategy-and-policy/priorities-2019- 2024/europe-fit-digital-age_en University of Minho | School of Economics and Management www.eeg.uminho.pt 2. The Impact of Brexit on Portuguese Trade: Case Studies Brexit has significantly impacted Suggested case Studies Portuguese trade, particularly due Automotive Industry to the UK's role as a major trading partner. Key areas affected Food and Beverage Industry include: Tourism Industry Textiles and apparel industry · Reduced exports to the UK · Increased costs · Supply chain disruptions · Investment uncertainty University of Minho | School of Economics and Management www.eeg.uminho.pt  Case Studies of Portuguese Competitiveness Portuguese competitiveness is a complex issue influenced by various factors, including economic policies, infrastructure, education, and innovation. Students are asked to analyse specific case studies, highlighting areas where Portugal has demonstrated competitiveness and areas where it faces challenges. Examples include: 1. Renewable Energy; 2. Automotive indutry; 3. Textile and apparel industry Suggested reading Draghi, M. (2024). The future of European competitiveness – A competitiveness strategy for Europe. https://commission.europa.eu/topics/strengthening-european- competitiveness/eu-competitiveness-looking-ahead_en#paragraph_47059 University of Minho | School of Economics and Management www.eeg.uminho.pt Towards a Stronger Europe: Economic Integration in a Globalized World www.eeg.uminho.pt Contents 1. Background: History of European integration and the economics of integration. 2. Recent trends in EU and Portuguese trade 3. Enhancing EU competitiveness University of Minho | School of Economics and Management www.eeg.uminho.pt  The creation of the European Union 1951 European Coal and Steel Community 1945 1960 End of WWII EFTA 1950 Schuman Declaration 1957 Rome Treaty THE EUROPEAN PROJECT Baldwin, R., & Wyplosz, C. (2022). EBOOK The Economics of European Integration 7e. McGraw Hill. Economic Integration A free trade area is an A customs union is an agreement that allows free agreement that allows free trade among members, but trade among members and each member can have its own requires a common external trade policy towards non- trade policy towards non- member countries. member countries. An example is EFTA. An example is the EEC. The EEC was never a free trade area University of Minho | School of Economics and Management www.eeg.uminho.pt Trade impact of economic integration Trade creation occurs when Trade diversion occurs when a countries reduce trade barriers country's trade shifts from a (such as tariffs or quotas) and more efficient trading partner to subsequently begin trading a less efficient one, typically due goods or services that they to trade agreements or previously did not. policies. This shift often results in higher prices for consumers and reduced economic efficiency. University of Minho | School of Economics and Management www.eeg.uminho.pt Trade diversion and enlargement Baldwin, R., & Wyplosz, C. (2022). EBOOK The Economics of European Integration 7e. McGraw Hill. School of Economics and Management University of Minho Campus of Gualtar, Braga-Portugal Follow Us: University of Minho | School of Economics and Management www.eeg.uminho.pt  EU Countries Belgium, Germany, France, 1951 Italy, Luxembourg, Finland Netherlands Denmark, Ireland, Sweden 1973 United Kingdom (the Estonia UK left the EU in 2020) Latvia Ireland Denmark Lithuania 1981 Greece United Kingdom Netherlands Poland 1986 Spain, Portugal Belgium Germany Luxembourg Czechia Slovakia France Austria Hungary Slovenia Romania Croatia Portugal Italy Bulgaria Spain THE EUROPEAN PROJECT Greece Malta Cyprus Cassis de Dijon case In 1979, the European Court of Justice (ECJ) ruled on a case involving a German law that restricted the import of fruit liqueurs. The court's decision established that products legally produced and sold in one EU country must be accepted in all other EU countries. This landmark ruling played a crucial role in creating the European Single Market. 1983 Albert & Ball report on the ‘costs of non- Europe’  The creation of the European Union 1951 J. Delors European Coal 1985-1994 and Steel Community 1945 1960 End of WWII EFTA 1950 Schuman Declaration 1957 Rome Treaty THE EUROPEAN PROJECT Single Market A single market is an customs union where the free NTB include particularly movement of goods, services, Technical barriers to capital, and people is trade: Standards, technical permitted. This means that regulations, and conformity assessment businesses can operate across procedures. multiple countries without Sanitary and phytosanitary (SPS) facing significant barriers like measures: Regulations related to food tariffs, or non-tariff barriers. safety, animal health, and plant protection. Example: The European Union (EU) Single European Act The Single European Act was adopted in 1986. It aimed to solidify the "four freedoms," including the free movement of goods, services, people, and capital. To achieve this goal, the SEA introduced several key reforms: Streamlined border procedures. Harmonized VAT. Open government procurement. Standardized technical regulations. Liberalized capital markets. Renamed European Community. Harmonization of Regulations Product standards: The EU has harmonized standards for a wide range of products, from toys to electrical equipment, ensuring that products can be sold freely across borders without needing to meet different national requirements. Professional qualifications: The EU has implemented mechanisms to recognize professional qualifications across member states, allowing professionals to work in their field without having to re-qualify. Environmental and consumer protection laws: The EU has harmonized laws in these areas to ensure a level playing field for businesses and protect consumers' rights.  The creation of the European Union 1951 J. Delors European Coal 1985-1994 2002 and Euro Steel Community 1993 currency 1945 1960 Single End of WWII EFTA Market 1950 1995 Schuman Schengen Declaration 1957 1992 Agreement Rome Maastricht Treaty THE EUROPEAN PROJECT Treaty Economic and Monetary union An economic and monetary union (EMU) is a type of trade bloc that features a common market, customs union, and monetary union. Member countries adopt a common currency and coordinate their economic policies. Example: The Eurozone  EU Countries Belgium, Germany, France, 1951 Italy, Luxembourg, Finland Netherlands Denmark, Ireland, Sweden 1973 United Kingdom (the Estonia UK left the EU in 2020) Latvia Ireland Denmark Lithuania 1981 Greece United Kingdom Netherlands Poland 1986 Spain, Portugal Belgium Germany Luxembourg Czechia 1995 Austria, Finland, Sweden France Slovakia Austria Hungary Slovenia Romania Czechia, Estonia, Cyprus, Croatia Latvia, Lithuania, Hungary, 2004 Malta, Poland, Slovenia, Portugal Italy Bulgaria Spain Slovakia THE EUROPEAN PROJECT Greece 2007 Bulgaria, Romania 2013 Croatia Malta Cyprus