|Course Title||European Economy and Strategies|
|Institution||International Independent University of Moldova|
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:
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.
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
Course detailed contents
1. Understanding the European Union
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
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
6.2. Sectoral 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
-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.
1. General references on the EU and suggested readings:
2. References on the European Institutions and suggested readings:
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
3. References on Customs Union and suggested readings:
4. References on the Common Market and suggested readings
5. References on EMU and suggested readings
6. References on Common Policies of the EU and suggested readings:
7. References on the External Economic Relations of the EU and suggested readings:
8. References on Transition Economies: Central and Eastern Europe and suggested readings
9. References on Enlargement of EU and suggested readings:
10. References on Economic Relations of Republic of Moldova with the European Union