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   Course Title    The Political Economy of European Integration: Implications for Countries of Central and Eastern Europe and of the Former Soviet Union
Lecturer    Vitali Silitski
Institution    European Humanities University
Country    Ukraine

The course covers the issues of Political Economy of European integration. It will address the following broad questions.

  • How the formation of an integrated Europe changes the political economy of the continent?

  • Which challenges does the establishment of the European Union and the imminent accession of Central European countries into the European Union brings for the countries undergoing post-Communist transformation?

  • How will the European integration affect the political economy of both furture members and the non-EU countries?

European integration has been a process that radically rebuilt the economies of West and East alike, as well as the relations between the two parts of Europe. Those CEE countries which are likely to join the EU in the nearest future are the urgent need to restructure their economies, to rebuild their institutions, and to reformulate economic policies in order to be eligible for membership, and must face the political and economic price they have to pay for joining the EU. For the countries that are not likely to join the EU, the prospect of being left outside the Union contains a threat of being left in the "grey zone" of political instability and economic underdevelopment. As a result, the upcoming EU enlargement may result in opening up a dramatic gap in development and prospectity between the post-Communist countries in CEE and former Soviet Union. At the same time, the European integration and political and economic processes within the "wider" Europe may open up unexpected opportunities for non-EU countries in Eastern Europe, such as opening up trade opportunities with neigboring EU countries that will join the EU, using transit routes for delivering energy supplies into EU countries, etc.

This is not an introductory course to institutions and governance of the European Community/Union. The students are supposed to have a basic knowledge of the EU structure, policies, and institutions. It is therefore highly recommended that the students will read (or re-read) the background materials mentioned in the syllabus.

The course will be organized as a lecture series followed by seminars. The students are supposed to bring written questions to the instructor the next class after the lecture. At the seminars, students will discuss the issues closely connected to the relations of the EU with countries of Central and Eastern Europe and former USSR The seminar will be based on a student presentation, which summary shall be prepared in advance so that other partiucipants have time to prepare their questions or comments in writing. A special guest lecture series will be devoted to the topic of Belarus relations with the European Union. Finally, at the end of the course students are supposed to write a course paper on the topic related to the content of the course. The topics will have to be discussed with the instructor at least six weeks before the end of the semester.

Grade Requirements:

Presentation at a seminar (20% of the grade)

Participation in discussions (15% of the grade)

Written questions to the instructor (15% of the grade)

Final essay (50% of the grade)

The list of course readings is not complete. The students are supposed to use information from online publications (such as Financial Times, The Economist), as well as to use the European Union website The list of suggested readings to each seminars and assignments to presenters will be posted each week on the website of the Center of European Research in Humanities at the European Humanities University.

Background readings:

Andrew Moravcik. The Choice for Europe.

Neill Nugent, Government and Politics of the European Union. Durham , N.C: Duke University Press, 1994.

Required Readings:

Richard E. Baldwin. Towards an Integrated Europe. London: CEPR, 1994.

Christopher M.Dent. The European Economy. The Global Context. London and New York: Routledge, 1997.

Theo Hirtis: European Union Economics, 4th edition. Herfordshire: Prentice Hall, 1998.

Francesco Giordano and Shadra Presaud, The Political Economy of Monetary Union. London and New York: Routledge, 1998.

Introduction. Structure of the European Community and the European Union.

Readings: Chapter 2 in: Hirtis, European Union Economics.


Part 1. Political Economy of the European Single Market.

Class 1. Challenges of trade liberalization for Central and Eastern European countries:

Class 2. Competition policies and anti-dumping practices within the EU, tariff and non-tariff restrictions.

Class 3. Asymmetry of trade liberalization as a source of potential domestic and international conflict;

Class 4. Seminar: European free trade and trade relations of with non-EU countries in Central and Eastern Europe;


Chapter 3 (The Single Market) and 8 (The Trade Policies) in: Hirtis, European Union Economics (class 1).

Baldwin, Towards and Integrated Europe, Part 1 Chapter 2; Part 2 (Class 2); Part 3 (Class 3).


Part 2. Political Economy of a Common Agricultural Policy.

Class 5. Overview of CAP

Class 6. Seminar: Dilemmas of CAP Application Towards Central and Eastern European Countries.

Readings: Chapter 3 (Agriculture) in : Hirtis, European Union Economics.


Part 3. European Monetary Union.

Class 7. Towards the Euro: History of the European Monetary Integration

Class 8. Advantages and disadvantages of joining a single currency. Domestic sources of support and opposition to Euro.

Class 9. EMU and prospects for international financial (in)stability.

Class 10. Seminar. Macroeconomic convergence criteria and the implications for domestic economic policy making in Western and Central and Eastern Europe.


Giordano and Presaud, The Political Economy of Monetary Union: Towards the Euro, chapters 1, 4-7, (class7) 9, 11-12 (class 9);

Chapter 7 (Monetary Integration) in : Hirtis, European Union Economics (classes 3.2).


Part 4. "Functional" and Sectoral Policies of the European Union:

Class 11. Regional Policy

Class 12. Social Policy;

Class 13. Industrial Policy;

Class 14. Energy and Environmental Policy

Class 15. Seminar. "Functional" and sectoral policies: constraints and opportunities for non-EU Eastern European countries.

Readings: Chapters 9-13 (Regional Policy; Social Policy; Transport; Industrial Policy, Energy and Environment) in : Hirtis, European Union Economics.


Part 5. Europe in the Global Context.

Class 16. European external trade and trade relations. Internationalization and Globalization

Class 17. Seminar. European FDI in CEE countries. Challenges, Hopes, and Disappointments.

Readings: Chapters 5-9. in: Dent, The European Economy: The Global Context.


Part 6. Politics of EU Enlargement:

Class 18. "Larger" or "deeply integrated" Europe? Domestic sources of support and opposition to the EU enlargement in Western and East Cental Europe.

Class 19. Seminar. Foreign policy dilemmas: foreign policy and development cooperation in a larger and "deeply integrated" Europe. Prospects for co-operation between the EU and countries of the former USSR.

Readings: Baldwin, Towards an Integrated Europe. Part 3.

Chapter 14 in Hirtis, European Union Economics.

Internet information.


Part 7. Guest Lectures.Class 20. Guest lecture (lecturer TBA). Belarus relations with the European Union (the lecture will mostly focus on trade and investment issues, rather than on the political context).

Class 21. Guest lecture (lecturer: Yury Shevtsov, EHU). Energy, Transit, and Prospects for EU-Belarus-Russia Relations.

Classes 22-25. Course Paper Preparation.

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