Poslední úprava: Ing. Magda Pektorová (03.02.2016)
The course introduces the key concepts and frameworks of economic integration and cooperation in the European Union. Students will acquire understanding of the economic logic of the integration process and the impact on EU politics.
Poslední úprava: Mitchell Young, M.A., Ph.D. (18.09.2017)
Final exam (in-class essay format): 35%
More details on the assignments and expectations will be provided in class.
Poslední úprava: Mitchell Young, M.A., Ph.D. (18.09.2017)
Course outline and readings:
1. History of EU economic integration and Introduction to Economic concepts
The opening class will lay the groundwork for understanding economic integration in the European context. We will examine the key milestones in economic integration within the context of regional integration theory. We will also question to what extent the EU fits those theories and to what extent it is a unique case. Finally, we will address the basics of economics and how economic theory will be used in the class.
*Frankel, J. (1997). Chapter 1, Introduction to Regional Trading Arrangements, in Regional Trading Blocs in the World Economic System, Peterson Institute.
*Delors, J. (2013). Economic governance in the European Union: Past, present and future, Journal of Common Market Studies, 51(2), 169-178.
Schumann, R. (1950). Schumann Declaration, in European Issue (203: 2011).
2. Explaining European economic integration
Why did European countries integrate economically? What different explanations come from different theoretical perspectives? What does an institutionalist perspective bring to the study of economic integration? In this session we will examine several divergent options from intergovernmental to supranational and rational choice to ideational constructivist.
*Moravcsik, A. (1991). Negotiating the Single European Act: national interests and conventional statecraft in the European Community, International organization, 45(01), 19-56.
*Jabko, N. (2006). Chapters 2 and 3, in Playing the Market, Cornell University Press.
Fligstein, N. and Mara-Drita, I. (1996). How to make a market: reflections on the attempt to create a single market in the European Union, American journal of sociology, 1-33.
Garrett, G. (1992). International cooperation and institutional choice: the European Community's internal market, International Organization, 46(02), 533-560.
3. Theories of integration and trade
This week will focus on the economic arguments for free trade and economic integration. What benefits does economic integration bring? How to tariffs and non-tariff barriers block free trade? What exactly is meant by free trade? Are there legitimate arguments against free trade?
*Krugman, P. (1996). A Country Is Not A Company, Harvard Business Review.
*Peng, M. and Meyer K. (2011). Chapter 5, Trading Internationally, International Business, Cengage.
Coyle, D. (2014). Beyond GDP, Foreign Affairs
Bannerman, G. (2015). The free trade idea, in L. Martin (ed.) The Oxford Handbook of the Political Economy of International Trade, Oxford.
Nello, S. (2012). Chapter 5, The Economics of integration, in European Union: Economics, Policies and History (3rd ed), McGraw-Hill.
4. The single market
This week's class will look at the history of the development of the single (internal) market. We will focus on the four freedoms of movement (goods, services, labor and capital) within that market and how they have been gradually implemented. The class will also cover the concepts of mutual recognition, standards and harmonization.
*Young, A. (2015). Chapter 5, The single market, in H. Wallace, M. Pollack and A. Young (eds), Policy-making in the European Union. Oxford university press.
*Pelkmans (2013) Chapter 5, The Economics of Single Market Regulation
European Commission (1985). Completing the Internal Market: White Paper from the Commission to the European Council COM(85) 310.
5. Labor Markets and Migration
The free movement of labor has recently come under the spotlight due to Brexit, immigration and changing social norms. What are the benefits of the free movement of labor to the free market? What challenges arise and how can they be addressed? In addition, we will look at the issues of wages, unemployment and productivity gaps.
*Baldwin & Wyplosz (2006). Chapter 8. Economic Integration, Labour Markets and Migration
CEPES (2014). Making the most of EU labor mobility, task force report.
6. Competition policy
Competition policy provides what has been called an economic constitution, that is, a framework to ensure that the single market functions effectively. This week, we examine how that constitution functions, looking at the three main areas of regulation: state aid, mergers, and anti-competitive behavior. We will also look into some recent cases in more detail.
*Wilks, S. (2015). Competition Policy: Defending the Economic Constitution, in H. Wallace, M. Pollack and A. Young (eds), Policy-making in the European Union. Oxford university press.
*European Commission (2016). Report on Competition Policy 2016.
*European Commission (2015). Competition Policy Brief: Ex post evaluation of competition policy enforcement [Note that a full length treatment of the topic (Ex-post economic evaluation of competition policy enforcement: A review of the literature) is available online at <ec.europa.eu/competition>.
European Commission (2015), Competition Policy Brief: Improving competition in the Member States.
7. Lisbon Strategy, Competitiveness and the Knowledge-based Economy
The Lisbon strategy in 2000 set the aim of making the EU the most competitive knowledge-based economy in the world. We trace the history of this strategy and the subsequent Europe 2020 strategy and then critically examine the idea of the competitiveness of nations.
* Bongardt, A. and Torres, F. (2012). The Lisbon Strategy, in E. Jones, A. Menon, S. Weatherill (eds), Oxford Handbook of the European Union, Oxford.
*Hay, C. (2007). Keynote Article: What Doesn't Kill You Can Only Make You Stronger: The Doha Development Round, the Services Directive and the EU's Conception of Competitiveness*, JCMS: Journal of Common Market Studies, 45(s1), 25-43.
*Porter, M. E. (1990). The competitive advantage of nations, Harvard business review, 68(2), 73-93.
Krugman, P. (1994). Competitiveness: a dangerous obsession, Foreign Affairs, 73: 28.
European Commission (2010). EUROPE 2020 A strategy for smart, sustainable and inclusive growth, COM(2010) 2020.
8. External Trade Policy
The EU is responsible for trade policies outside of the Union, both bilateral and multilateral. In this session we will look at how the EU conducts its external trade policy, with whom it seeks agreements, and how it negotiates them.
*Woolcock, S. (2015). Chapter 16, Trade Policy: Policy-making after the Treaty of Lisbon, in H. Wallace, M. Pollack and A. Young (eds), Policy-making in the European Union. Oxford university press.
*European Commission (2015). Trade for all
European Commission (2013). The EU's bilateral trade and investment agreements – where are we?
9. Monetary policy, integration and the ECB
This class will study the creation of the Euro, tracing it back to its origins in the 1990s and prior to that its pre-cursors leading up to the Maastricht treaty. We will also study the ECB and its role in managing the Euro. We will discuss exchange rate regimes, costs and benefits of integration, history of global monetary since Bretton woods, stages of EMU development and requirements for entry into the single currency.
*Hodson, D. (2015). Chapter 7, Economic and Monetary Union, in H. Wallace, M. Pollack and A. Young (eds), Policy-making in the European Union. Oxford university press.
*Nello, S. (2012). Chapter 9, The Theory of Monetary and Economic Union, in European Union: Economics, Policies and History (3rd ed), McGraw-Hill.
European Commission (1990). Chapters 1 and 2, One market, one money. An evaluation of the potential benefits and costs of forming an economic and monetary union, European Economy 44.
Jabko, N. (2010). The hidden face of the euro, Journal of European Public Policy, 17(3), 318-334.
10. Eurozone Crisis and Fiscal policy
How did the Eurozone crisis come about? What causal factors, internally and externally, can we identify? In this context we will study the fiscal policy debate among economists between Keynesianism and austerity. Broadly we will lay out the connections between fiscal policy and monetary policy, and ask how the EU can influence it while maintaining member state sovereignty.
*Verdun, A. (2015). A historical institutionalist explanation of the EU's responses to the euro area financial crisis, Journal of European Public Policy, 22:2, 219-237.
*Blyth, M. (2013). Austerity Delusion: Why a Bad Idea Won Over the West, Foreign Affairs, 92: 41.
Eichengreen, B. (2012). European monetary integration with benefit of hindsight, JCMS: Journal of Common Market Studies, 50(s1), 123-136.
Ioannou, D., Leblond, P. and Niemann, A. (2015), European integration and the crisis: practice and theory, Journal of European Public Policy.
11. Cohesion and Regional Policy and the EU Budget
In this week’s session, we look at how the EU budget is structured and at some of the key issues being debated for the next multi-annual financial framework. In doing so, we also look at the cohesion policy and cleavages between richer and poorer regions.
*Tondl (2013). Ch10 Economic and Social Cohesion and Regional Policy
*Commission (2017). Reflection paper on EU finances
Nello (2012). Ch10 The EU Budget
Schelkle, W. (2012). Rich Versus Poor, in E. Jones, A. Menon, S. Weatherill (eds), Oxford Handbook of the European Union, Oxford.
12. Final Exam