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   Course Title    European Economy and Strategies
Lecturer    Elvira Postaru
Institution    International Independent University of Moldova
Country    Moldova


Course objectives

a. Academic Aims

The course is addressed to students of the 4th academic year, of the specialization "International Economic Relations". This course intends to provide the necessary tools to understand the functioning rules of the European market and to acquire skills of economic analysis and understanding of the European Economic Integration process, the changing nature of the European Union and its growing role in the world. The course has a theoretical character and provides an interdisciplinary approach, which combines elements of Economics, Political science, History and International Relations. A key objective of the course is to offer a conceptual framework and some analytical tools, taken from both economics and international political economy, to investigate integration issues. This course attempts to assist the student by offering information that aims to:

  • select the most relevant aspects and developments;
  • place the wide variety of issues in a robust conceptual structure;
  • integrate theoretical developments with the results of empirical research and of policy analysis;
  • explain the logic of the dynamic processes;
  • describe the structural features of the European economy;
  • depict the historical developments so as to give a sound basis for the understanding of the present situation and the likely future development;
  • set the European developments in the light of global developments.

Beyond the everyday debate about the economics, politics and policies of the European Union, students of the European integration process should have a deeper analytical look at the "acquis academique", i.e. the collection and patrimony of visions, concepts, discussions, programs and views which are inherent in all public and academic discourses on EU.

b. Learning Outcomes

The students have to take and describe the major traditional and modern inputs into the acquis academique for theories of European integration and discuss how far it helps us to explain fundamental trends of the integration process, from the early days of the European Community for Coal and Steel to the Nice Treaty of the EU and the entering into force of the EMU.

c. Course details

The first part starts with a historical analysis of the process and dynamics of the European Union and specifically we shall analyze the theories of economic integration. After discussing the historical view of European integration, we will focus on the institutional mechanisms of the European Union. The course will examine specific policy fields, ranging from the Single Market, Common Agricultural Policy to the EMU. To assess common policies, the main arguments of Classical and Keynesian economics will be discussed in the context of free and managed trade. The debate surrounding the creation of a single currency and the coordination of national macroeconomic policies will provide much evidence into the politics of European Integration.

What are the implications of a common fiscal and monetary policy for sovereign states? The class will evaluate the concept of supranational sovereignty under the EMU, analyze the current problems such as the introduction of the single currency (EURO) in Europe and the international monetary system: can Europe replace the declining power of the US and acts as leader of the system?

After discussing the theoretical groundwork, case studies will be used to illustrate important aspects of the European Economic Integration process. The case studies will illustrate the politics of economic integration: the struggles of great and small sovereign powers to fashion common policies and institutions in an otherwise anarchic international system. Do these European policies serve national interests or some other set of goals?

Thereafter the course examines the progress towards economic and political integration in the West-culminating in the 1992 single European Market, the Maastricht, Amsterdam and Nice Treaties and the European Unionís proposals for further, economic, monetary and Political Union in the late 1990s.

Finally, the course will consider the economic and social dynamics of the system of transformations in Eastern and Central Europe and their implications on the future enlargement. It explores briefly the development of relations between the countries of Central and Eastern Europe and the EU in the recent past and analyzes the impact of Association Agreements and Partnership and Cooperation Agreements (signed between Moldova and the EU). We will investigate the institutional elements of enlargement, political and economic problems of the accession of the associated Countries in Central Europe to the European Union. At the end we will assess the evaluation of EU public policies in terms of cost/benefit analysis for the respective nation states and for the EU as a whole, and to define the opportunities and limits of integration.

Methodology

The course will include the combination of a limited number of ex-cathedra lectures, presentations from the students and an intensive group debate. Interactive discussion and text reading are expected. Preparation, written reports and discussion of real-life cases will also be included. Students will prepare a presentation about an issue of European Union importance and would present it in the classes.

Case studies will look at practical situations within a theoretical framework, lectures, real case analysis in groups, team work, discussions and debates, exercises, class presentations, guest speakers. Before each class, a set of newspaper or journal articles from leading journals/newspapers of relevant emerging economies will be distributed to the students. During each session there will be a class discussion on the issues raised in the articles. For each topic we want to derive testable implications from the theory, comment on the robustness of the results obtained and draw out policy conclusions.

Two simulation games will be organized in the framework of the course, these two simulation exercises are an excellent opportunity to put into practice the acquired knowledge in the framework of the courses and to gain and exercise a series of interpersonal skills of increasing importance: learning how to handle diverging positions, interests and values, networking techniques, negotiation capacities and group work, etc.

Each student is allocated a specific role and needs to write both an individual and a collective negotiation brief based on the data they have collected from the courses. Students literally "live" each stage of the negotiation process from the initiation of a proposal to the final adoption of a legislative act.

Requirements and assessment

At the end of the course there will be an oral examination that will account for 40 percent of the final grade. A short report about a special topic from the courses themes will account 30 percent of the grade. This report should not exceed 15 pages in length and be presented in class on the day when his or her topic is due. Class participation will account for 30 percent of the final grade.

The bibliography contains a selection of readings, which cover the most important areas of the seminar discussion and paper topics. The required readings are essential for class discussion. The suggested background and research readings are offered to further illuminate the scope of the topic.

 

Distribution of themes by hours

NR

Themes

Theory courses

Practical courses

Independent work

1.

Understanding the European Union

2 hours

2 hours

Theories of integration(Functionalism, Neo-functionalism, federalism, Intergovernmentalism and confederalism

2.

The structure and functions of European Institutions

2 hours

2 hours

 

3.

Customs union in the European Community

2 hours

2 hours

 

4.

The Single European Market

4 hours

4 hours

 

5.

Economic and Monetary Union in Europe

4 hours

4 hours

The role of Banks in monetary policy. Financial European System

6.

Common policies of the European Union

6 hours

6 hours

 

7.

External Economic Relations of the European Union

4 hours

4 hours

 

8.

The Transition Economies: Central and Eastern Europe

2 hours

2 hours

 

9.

European Union Enlargement

4 hours

4 hours

Regional economic Integration

10

Economic Relations of the Republic of Moldova with the European Union

4 hours

4 hours

Economic relations of Moldova with Black See Regions

 

TOTAL

34 hours

34 hours

 

Course detailed contents

1. Understanding the European Union

    1. The development of the European Communities

1.2. Integration theory and economic analysis

1.3. Treaty Agreements establishing the European Union

1.4. The Community legal system

1.5. The Community finances

2. The structure and functions of European Institutions

2.1 The European Commission

2.2 The Council of the European Union

2.3 European Parliament

2.4 Court of Justice

2.5 Other EU Institutions

-Economic and Social Committee

-Committee of the Regions

-Court of Auditors

-European Investment Bank

3. Customs union in the European Community

3.1. Customs Union: economic and legal framework

3.2. The terms of trade effects, dynamic consequences of economic integration

3.3. Intra-community trade

-Elimination of internal frontiers

-Veterinary and plant health legislation

-Administrative cooperation

3.4 Trade with non-member countries

-The Common customs tariff

-Economic tariff matters

-General customs legislation

-Origins of goods

-Customs procedures with economic impact

4. The Single European Market

4.1. The internal market Programme. Single European Act

4.2. The removal of physical, technical and fiscal barriers

4.3. The impact and effects of the Single European Market

4.4. Understanding the four freedoms: Free movement of goods, capital, labor and services

5. Economic and Monetary Union in Europe

5.1. The European Monetary System and the birth of the ERM

5.2. Launching EMU: Maastricht Treaty

5.3. Economic policy and convergence of national economic policies under EMS and beyond

5.4. EMU impacts

-The marketing function: implication of the EURO

-The UK perspective

5.5. EMU and EU tax harmonization

6. Common policies of the European Union

6.1. Horizontal policies

-Regional Development Policy

-Social Policy

-Competition Policy

-Environment Policy

6.2. Sectoral Policy

-Industrial

-Energy Policy

-Common Transport Policy

-Common Agricultural Policy

7. External Economic Relations of the European Union

7.1. Commercial Policy and the multilateral trading system (GATT- WTO)

-Common rules for import

-Trade protection

-Common export arrangements

-GATT and WTO

-Sectoral commercial policy measures

7.2. External relations and the EUís hierarchy of trading preferences

-The European Free Trade Association and EEA

-European Economic Area Agreement: Norway, Liechtenstein and Iceland

-Customs Union Agreement: Turkey, Malta and Cyprus

-European Association Agreement

-Euro-Mediterranean Association Agreements

-ACP Ė EC Partnership Agreement

-The Generalized System of Preferences

7.3. European Union external trading relations: Japan and the US

7.4. The emergence of regional trade blocs and Global Triad

8. The Transition Economies: Central and Eastern Europe

8.1. The Central and East Europeans

8.2. The nature of transition

8.3. Trade re-orientation and entry into the international economic community

8.4. Transition: progress and challenges

9. European Union Enlargement

9.1. CEE development and integration with the European Union

9.2. The EU's pre-accession strategy

9.3. Costs and benefits of enlargement, political economy and strategies for accession

9.4. The financial consequences of enlargement

9.5. Problems and the perspectives in the perception of candidate countries

10. Economic Relations of the Republic of Moldova with the European Union

10.1. Legal framework of economic transformations

10.2. The trade reorientation and integration with the world economy

-Reorientation of foreign trade along the lines of comparative advantages

-Accession to WTO, trade policy and trade regulations

10.3. Financial and economic regulations

10.4. Partnership and Cooperation Agreement between EU and Moldova

10.5. Moldovaís strategy to enter the EU

10.6. Balance and perspectives.

BIBLIOGRAPHY

1. General references on the EU and suggested readings:

  1. DINAN Desmond, Ever Closer Union: an Introduction to European Integration, 2nd ed., Macmillan, Basingstoke, 1999, p. 1-3.
  2. DEGRYSE Christophe, Dictionnaire de líunion Europeenne. Politiques, institutions, programmes, De Boeck/Universite, Bruxelles, 1998.
  3. PASCAL Fontaine, A new idea for Europe: The Schuman declaration 1950-2000, 2nd ed., European documentation, Luxembourg, 2000, p. 5-7;
  4. MOUSSIS Nicholas, Guide to European Union policies, European Study Service, Brussels, 1999
  5. PELKMANS Jacques, European Integration. Methods and economic analysis, Addison Wesley Longman, Harlow, Essex, 1997.
  6. EUROPEAN COMMISION, How does the European Union work? Office for official Publications of the European Communities, Brussels, 1996.
  7. Moussis Nicholas "Access to European Union", European Study Service, 2001, p. 7-9; 12-16; 23-28;
  8. EUROPEAN POLICY CENTRE, Making Sense of the Amsterdam treaty, Institute of European Affairs, 1997.
  9. EUROPEAN COMMISSION, Treaty of Amsterdam: what has changed in Europe, Luxembourg, 1999
  10. DRUESNE Gerard, Droit et Politiques de la Communaute et de líUnion europeenne 5e ed, PUF, Paris, 1998.
  11. LAFFAN Brigid, The Finances of the European Union, Macmillan Press, Basindstoke, 1997.
  12. Richard Welford, Kate Prescott, "European Business, 4 th edition, ", 2001, p. 69,86-87;
  13. European Commission, "LíEurope des quinze: chiffres cles", 1996, p.4;
  14. "European Parliament", Office for official publications of the European Communities, Luxembourg, March 2000, p. 12;
  15. Edward Best, "The Treaty of Nice: Not Beautiful but itíll do", Eipascope (2001), p. 2-9;
  16. Meunier, Sphie and Kalypso Nocolaidis, "Trade Competence in the Nice Treaty", ECSA Review, Vol.14, No.2, Spring 2001

http://europa.eu.int/

http://europa.eu.int/scadplus/ Glossary of EU terminology

http://europa.eu.int/eur-lex Full text legislative information

2. References on the European Institutions and suggested readings:

  1. Burban Jean-Luis, Les institutions europeennes, Vuiber, Paris, 1997
  2. "Serving the European Union", Luxembourg: Office for Official Publications of the European Communities, 1999, p. 5-7; 9-11; 17-20;
  3. Simon Mercado, Richard Welford, "European Business", Financial Times, 2001, p. 56-57;
  4. The European Parliament, Office for official publications, Luxembourg, 2000, p. 14-15;
  5. Marcel Scotto, Les institutions europeennes, la reforme inachevee, Le Monde, 1997,
  6. Pascal Fontaine, "European in ten points", European Documentation,1995, p. 9-13;
  7. Dinan Dinan, "Ever Closer Union?", Macmillan, London, 1999, p. 217-220;
  8. Peterson John and Bomberg Elisabeth, Decision-making in the EU, Macmillan, Basingstoke, 1999
  9. Klaus-Dieter Borchardt, "The ABC of Community law", European Commission, 2001
  10. Helen and William Wallace, Policy-Making in the European Union, Forth Edition, Oxford University press, 1999, p. 10-20;

Web guide

http://www. ue.eu.int/

http://www.esc.eu.int

http://europa.eu.int/comm/

http://europarl.eu.int/

http://esc.eu.int

http://curia.eu.int/

http://eib.org

  • Improving the functioning of the co-decision procedure, Discussion Document by the Vice-Presidents responsible for conciliation, European Parliament

http://statewatch.org/news/2001/mar/codecision.pdf

  • Open Letter from civil society on the new code of access to documents of the EU Institutions, 2 May 2001.

http://www.statewatch.org/news

3. References on Customs Union and suggested readings:

  1. Inama Stefano, Vermulst Edwin, Customs and Trade Laws of the European Community, Kluwer Law International, The Hague- London-Boston, 1999
  2. Trotignon Jerome, Economie europeenne. Integration et politiques communes, Hachette, Paris, 1997
  3. Free trade agreements and customs unions, experiences, challenges and constraints, co-published by the European Institute of Public Administration, Maastricht, the Netherlands, 1997, p. 105-111;
  4. Krueger, A.O.(1995), Free trade Agreements versus Customs Unions, NBER Working Paper, No. 5084
  5. Nicholas Moussis, "Access to European Union", European Study Service, 2001, p. 60-74;
  6. Customs Union Agreement (Decision No 1/95 of the EC-Turkey Association Council) OJ 1996 L 35/1 http://www.wto.org/wto/english/tratop_e/dispu_e/distab_e.htm
  7. The EU Market Access Database http://mkaccdb.eu.int

4. References on the Common Market and suggested readings

  1. European Commission, "How does the European Union work?, 1996, p. 5-6;
  2. European Commission, "Single European Market", 1997
  3. Simon Mercado, Richard Welford, "European Business", Prentice Hall, 2001, p. 89-96, 99-105;
  4. Nicolas Moussis, "Access to European Union, law, economics, policies", European Study Service, 2001, p. 104-109, 112-113;
  5. European Commission, "The EU Market Access Strategy", 2000
  6. Desmond Dinan, "Ever Closer Union, an Introduction to European Community", Macmillan, 1997, p. 336-340;
  7. Cen-Cenelec, The new approach. Legislation and Standards on the free movement of goods in Europe, European Committee for Standardization, Brussels, 1997
  8. European Commission, Technical Barriers to trade, the Single Market Review III:1, EUR-OP, Luxembourg 1999;

Website: http://mkaccdb.eu.int

5. References on EMU and suggested readings

  1. Desmond Dinan, "Ever Closer Union", 1997, p.418-429
  2. Martin Ricketts, "Economic and Monetary Union in Europe", Press Dí…urope,
  3. Mc Namara Katheleen R. and Meunier Sophie, Between National Sovereignity and International Power: What external Voice for the EURO? Paper prepared for presentation at the European Community Studies Associationís 7th Biennial International Conference, May 31-June 2, 2001, Madison
  4. Portes Richard, The role of the Euro in the world: past developments and future perspectives, Frankfurt, 2000
  5. Simon Mercado, European Business, Financial Times, 2001, p. 122-124, 134-147
  6. Nicholas Moussis "Acess to European Union", 2001, p. 129-141
  7. Orlowski, Lucian, Exchange rate policies in Central Europe and Monetary Union Comparative Economic Studies, 1998.3 p. 58-78
  8. Kopits, George, Implications of EMU for exchange rate policy in Central and Eastern Europe, Washington, IMF, 1999, p.41.
  9. Boone, Laurence, Economic convergence of the CEECs with the EU, London, CEPR, 1998, p. 27
  10. Bernard, Luc, What impact Will the Euro have on the Candidate Countries of Central and Eastern Europe?, Brussels, 1999, p. 87-126.

6. References on Common Policies of the EU and suggested readings:

  1. Desmond Dinan, "Ever Closer Union", Macmillan, 1999, p. 325-335
  2. Nicholas Moussis, "Access to European Union, law, economics, policies", 2001, p.230, 282-294, 373-375, 469-471, 502-520;
  3. Simon Mercado "European Business", 2001, p. 160-192
  4. Balchip Paul, Bull Gregory, Sykora Ludek, Regional Policy and Planning in Europe, Routledge, London, 1999
  5. How European Union Manage Agriculture and fisheries, European Commision, 1998, p16-23;
  6. Proposed regulations governing the reform of the Structural Funds 2000-2006, Comparitive analysis, European Commmission, 1998
  7. Regional Policy and Cohesion, European Commission, 1998
  8. The European Union: cohesion and disparities, European Commission, 1999 p. 12-17
  9. European employment and social policy: a policy for people, European Commission, 2000
  10. Frnacois Souty, Le droit de la concurrence, Montchrestien, 1997
  11. Emonot Claude, Integration financiere europeenne et fiscalite des revenues du capital, Economica, Paris, 1998
  12. Symansky Steven, Koptis George, Fiscal Policy Rules, International Monetary Fund, Washington, DC, 1998
  13. Cini Michaelle, McGowan Lee, Competition Policy in the EU, Macmillan Press, Basingstoke Hampshire, 1998
  14. Demmke Christoph, Schroder Birgit, European environmental policy: a handbook for civil servants, Maastricht, 1999
    http://www.inforegio.cec.eu.int/dg16_en.htm

7. References on the External Economic Relations of the EU and suggested readings:

  1. Woolcock Stephen, European Trade Policy- Global Pressures and Domestic Constraints, Oxford University Press, 2001, p. 373-399
  2. Desmond Dinan, Ever Closer Union? Macmillan, London, 1999
  3. White Brian, Understanding European Foreign Policy, Palgrave, Basingstone, 2001, pp. 27-46 (Chapter 2; making Sense of Europeís Global Role)
  4. European Commission, Illicit Trade and Organized Crime: New Threats to Economic Security, EUR-OP, Luxembourg, 1998
  5. Nicholas Moussis, Access to European Union, 2001, p. 554-570
  6. Shelton Joanna, Competition Policy: What Chance for International Rules? In Revue de droit des affaires internationals, 1999, n.4, pp.457-470;
  7. Simon Mercardo, European Business, Financial Times, 2001, p. 556-568
  8. Coleman William, Regionalism and Global Economic Integration: Europe, Asia and the Americas, London, 1998
  9. Simon Mercado, Richard Welford, Kate Prescott, European Business, 2001, p.332-350
  10. Steil Benn, Regional Financial Market Integration: Learning from the European Experience, Royal Institute of International Affairs, London, 1998
  11. Commission Europeenne, Lemarvhe Unique et l…urope de demain, EUR-OP, Luxembourg, 1997
  12. Colecchia, Alessandra, Ouverture, integration et specialization, impact sur la croissance en Europe, Economie internationale, 1999, p. 37-50 http://europa.eu.trade.en.com
  13. Challenge Europe, on-line journal: http://theepc.be/Challenge_Europe/top.asp
    http://www.ceps.be
  14. Commercial policy (http:// europa.eu.int/pol/comm./en/info.htm)

8. References on Transition Economies: Central and Eastern Europe and suggested readings

  1. http://www.europeaninternet.com/centraleurope/
  2. http://www.europarl.eu.int/enlargement
  3. Inottai Andras, The Czech Republic, Hungary, Poland, the Slovak Republic and Slovenia, Winners and losers of EU Integration: Policy Issues for Central and Eastern Europe, World Bank, 2000
  4. Mayhew, Alan; recreating Europe: the European Unionís Policy Towards Central and Eastern Europe, Cambridge University Press, 1998, p. 403
  5. Maresceau, Marc, enlarging the European Union. Relations between the EU and Central and Eastern Europe, Longman, London, 1997
  6. Balwin, Richard, The costs and benefits of Eastern enlargement. The impact on the EU and Central Europe, Economic Policy, 1997, p. 125-176
  7. Simon Mercado, European Business, 2001, p. 258-285
  8. Inotai, Andra, Political, economic and social arguments for and against EU Enlargement, Institute for World Economics, Budapest, 1999, p.20

9. References on Enlargement of EU and suggested readings:

  1. Baldwin, Richard, Francois, Joseph, The costs and benefits of Eastern enlargement. The impact on the EU and Central Europe, Economic Policy, 1997, P. 125-176
  2. Bauer, Patricia, Eastward Enlargement- Benefits and Costs of EU Entry for the Transition Countries, Intereconomics, 1998, p. 11-19
  3. Dehousse, F The Enlargement of the European Union and institutional reforms, Stockholm, Swedish Institute of International relations, 1998, p. 10
  4. Lavigne, Marie, Conditions for accession to the EU, Comparative Economic Studies, 1998, p.38-57
  5. Agenda 2000. Summary and conclusions of the opinions of the Commission concerning the 6. Application for Membership to the EU presented by the candidate countries.
  6. Gelazis, Nida , The effects of EU Conditionality on Citezenship Policies and Protection of national Minirities, EUI Working Paper, no.2000/69
  7. Grabbe, Heather, A Partnership for Accession? The implications of EU Conditionallity for the Central and East European Applicants, EUI Working Papers, no1999/12
  8. Agenda 2000. Reinforcing the Pre-Accession Strategy
  9. http://ue.eu.int/en/info/eurocouncil/index.htm
  10. http:// europa.eu.int/comm./enlargement/report_11_00/index.htm
  11. The effect of Accession on the External Policies of the New Members: see
    http://curia.eu./int/en/index.htm
    http://europa.eu.int/comm/enlargement/index.htm

10. References on Economic Relations of Republic of Moldova with the European Union

  1. TACIS, "The European Union and The Republic of Moldova, Implementing the Partnership and Cooperation Agreement",1999
  2. "Economy and Reforms", Informational and analysis bulletin, 2001 (all numbers)
  3. "Economic Trends", Quarterly ISSUE, Moldova January- March 2001,
  4. Materials from the Ministry of Economy "Draft Report of the Working Party on the Accession of the Republic of Moldova into WTO", 2000
  5. http://www.iatp.md/er


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