The European Economy...in perspective. Contents Definition Stages of economic integration The European economic integration.

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Presentation transcript:

The European Economy...in perspective

Contents Definition Stages of economic integration The European economic integration

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

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

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

Stages of economic integration Free Trade Areas Customs Unions

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

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

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

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

Baldwin (1994), p. 17

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

The evolution of the EU… Enlargement again: 1995 EURO launch: and the EU of and the EU of 27

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