1. The European Economy...in perspective

2. Contents Definition Stages of economic integration The European economic integration

3. Defining economic integration One aspect of international economics a state of affairs or a process which involves the amalgamation of separate economies into larger free trading regions (El-Agraa, 2004) Non-economic definition: increasing interdependence of nations

4. Characteristics of an economic bloc Discriminatory removal of trade barriers The establishment of some co-ordination - between at least two nations

5. Types of integration Negative integration Positive integration NOT sectorial co-operation, which can be WITHIN integration

6. Stages of economic integration Free Trade Areas Customs Unions

7. Stages of economic integration … Common Markets –Monetary Union Economic Union –Political Union

8. The evolution of the EU The Organisation of European Economic Cooperation (OEEC): 1948 The European Payments Union (EPU): 1950 European Coal and Steel Community (ECSC): 1952

9. The evolution of the EU… The Treaty of Rome: 1957 The European Economic Community The Euroatom The ECSC EFTA: 1959

10. The evolution of the EU… The first enlargement: 1973 The European Monetary System: 1978 The South European Enlargement: 1981, 1986

11. Baldwin (1994), p. 17

12. The evolution of the EU… The Single European Act: 1986 –The EC Single Market: 1992 The Maastricht Treaty: 1992 –The Treaty of the European Union (EU)! The EEA

13. The evolution of the EU… Enlargement again: 1995 EURO launch: 1998 2004 and the EU of 25 2007 and the EU of 27

14. Recommended Reading El-Agraa* ch. 1, 2 Baldwin and Wyplosz, ch. 1 Europe at a glance Note: * stands for essential reading