The economics of European integration: limits and prospects

939 Pages·2005·5.688 MB·English

by  Miroslav N. Jovanovic

The Economics of
European Integration
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Ai miei figli,Jovan e Nikola
dedico ogni cosa,tranne questo libro,
che non vale tutto l’amore,la felicità e la speranza
che mi danno.
To my sons,Jovan and Nikola,
I dedicate everything in the world exceptthis book
which is worthless compared with
the love,happiness and hope that they provide.
The Economics of
European Integration
Limits and Prospects
Miroslav N. Jovanovic´
Economic Affairs Officer,United Nations Economic
Commission for Europe,Geneva,Switzerland
Edward Elgar
Cheltenham,UK • Northampton,MA,USA
© Miroslav N.Jovanovic´,2005
All rights reserved.No part of this publication may be reproduced,stored in
a retrieval system or transmitted in any form or by any means,electronic,
mechanical or photocopying,recording,or otherwise without the prior
permission of the publisher.
Published by
Edward Elgar Publishing Limited
Glensanda House
Montpellier Parade
Cheltenham
Glos GL50 1UA
UK
Edward Elgar Publishing,Inc.
136 West Street
Suite 202
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
ISBN1 84376 691 4 (cased)
Printed and bound in Great Britain by MPG Books Ltd,Bodmin,Cornwall
How good and pleasant it is when brothers live together in unity.
Psalms 133:1
Contents
Preface and acknowledgements xi
List of abbreviations and acronyms xvii
1 The Origin,Evolution and Prospects for the European Union 1
1 Introduction 1
2 The Marshall Plan 3
3 Unity of the West 6
4 European Coal and Steel Community 7
5 Political cooperation 9
6 European Economic Community 10
7 European Free Trade Association 14
8 EEC and Britain 15
9 Luxembourg Agreement 16
10 The first enlargement 17
11 Eurosclerosis 20
12 The Single European Act 22
13 The Maastricht Treaty 25
14 Northern enlargement 31
15 Treaty of Amsterdam 32
v
vi The economics ofEuropean integration
16 Acquis communautaire 34
17 Preparations for the future:Agenda 2000and the
Lisbon Council 35
18 Treaty of Nice 36
19 The topsy-turvy future or permanent disillusionment 39
20 Federal future of Europe or what? 54
21 Priorities 59
22 Conclusion 62
2 Monetary Integration 89
1 Introduction 89
2 Traditional model 91
3 Costs and benefits 100
4 Parallel currencies 107
5 European Union 109
6 European Monetary Union 119
7 Achievements,problems and outlook 128
8 Britain and the euro 134
9 Conclusion 141
3 Fiscal Policy and the Budget 147
1 Introduction 147
2 Fiscal policy 148
3 A bit of history 154
4 Direct taxes 163
5 Indirect taxes 178
6 Future challenges 187
7 Conclusion 189
8 Budget of the European Union 193
4 Common Agricultural Policy 209
1 Introduction 209
2 Distinctiveness of agriculture 210
3 Objectives 213
4 Implementation 215
5 Operation and consequences 218
6 Reforms 255
7 Common Fisheries Policy 260
8 Conclusion 262
Contents vii
5 Competition Policy 267
1 Introduction 267
2 Competition,efficiency and location 269
3 European Union 313
4 Conclusion 343
6 Industrial Policy in Manufacturing and Services 352
1 Introduction 352
2 Industrial policy issues 353
3 European Union 383
4 Services 408
5 Conclusion 421
7 Trade Policy 431
1 Introduction 431
2 Theory of customs unions 432
3 Why countries integrate 463
4 World Trade Organisation and international trade 468
5 Non-tariffbarriers 481
6 The European Union in world trade 497
7 Preferred partners 554
8 Conclusion 558
8 Spatial Location of Production and Regional Policy 568
1 Introduction 568
2 Issues 570
3 Theories of location 572
4 Cities 581
5 Clusters 584
6 History and expectations 595
7 War and the location of firms 605
8 Wrapping up the theory of location 607
9 Regional policy 610
10 Objectives and justification 617
11 Instruments 622
12 Impact of integration 624
13 European Union 637
14 Conclusion 651
viii The economics ofEuropean integration
9 Capital Mobility 666
1 Introduction 666
2 Factor mobility and trade 667
3 Foreign direct investment 670
4 Transnational corporations 688
5 Intervention 715
6 Transnational corporations and international
economic integration 720
7 European Union 723
8 Conclusion 748
10 Mobility of Labour 755
1 Introduction 755
2 Country of origin 756
3 Country of destination 758
4 European Union 760
5 Conclusion 769
11 Social Policy 771
1 Introduction 771
2 Social policy issues 773
3 Unemployment 775
4 European Union 777
5 Conclusion 788
12 Environment Policy 792
1 Introduction 792
2 Issues 793
3 European Union 795
4 Conclusion 805
13 Transport Policy 808
1 Introduction 808
2 European Union 810
3 Conclusion 820
Contents ix
14 Eastern Enlargement 822
1 Introduction 822
2 Economic structure of the accession countries 823
3 Entry criteria 826
4 Costs and benefits 828
5 Disillusionment 844
6 Cost of enlargement 846
7 Conclusion 847
15 Conclusion 851
Bibliography 863
Index 907