Summary Notes for Economic Aspects of European Integration

Economic Aspects of
European Integration
BORMANS YANNICK
D0M09A

,Economic Aspects of European Integra3on KUL




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,Economic Aspects of European Integra3on KUL


Inhoudsopgave
D0M09A ............................................................................................................................................................ 0

History ............................................................................................................................................................ 4

Facts, Law, Ins3tu3ons, and the budget .......................................................................................................... 9
Economic integra/on in the EU .......................................................................................................................... 9
Big 5 ins/tu/ons ............................................................................................................................................... 11

Decision making............................................................................................................................................ 14
Task alloca/on of EU decision-making ............................................................................................................. 14

Essen3al microeconomic tools & tariff analysis ............................................................................................. 17
Supply & demand diagrams ............................................................................................................................. 17
MFN tariff analysis ........................................................................................................................................... 20
Analysis of Global Value Chains ........................................................................................................................ 22
Sources of compe//ve differences ................................................................................................................... 23

Essen3al economics of preferen3al liberalisa3on .......................................................................................... 24
Regional Trade Agreement Diagram ................................................................................................................ 24
Analysis of customs union................................................................................................................................. 26

Market size and scale effects ......................................................................................................................... 29
Market size maTers .......................................................................................................................................... 29
BE-COMP diagram in a closed economy ........................................................................................................... 29

EU compe33on and State Aid Policy ............................................................................................................. 31
EU compe//on policy ....................................................................................................................................... 31
Economics of an/-compe//ve behaviour......................................................................................................... 32

Economic integra3on, labour markets, and migra3on ................................................................................... 36
European labour markets ................................................................................................................................. 36
Migra/on .......................................................................................................................................................... 38
Simple economics of labour market integra/on ............................................................................................... 38

Essen3al macroeconomic tools ..................................................................................................................... 40
The closed economy.......................................................................................................................................... 40
Exchange rates ................................................................................................................................................. 41

EU trade policy.............................................................................................................................................. 45
Global trade rela/ons and paTerns.................................................................................................................. 45
EU and interna/onal trade ............................................................................................................................... 46

Op3mum Currency Areas .............................................................................................................................. 48
Currency areas .................................................................................................................................................. 48



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, Economic Aspects of European Integra3on KUL

The Common Agricultural Policy ................................................................................................................... 53
Common Agricultural Policy (CAP) .................................................................................................................... 53

Loca3on effects, economic geography, and regional policy ............................................................................ 56
What to expect ................................................................................................................................................. 56
Theories ............................................................................................................................................................ 56

The European Monetary Union ..................................................................................................................... 59
Maastricht Treaty ............................................................................................................................................. 59
The euro system ................................................................................................................................................ 60

Fiscal Policy and the Stability Pact ................................................................................................................. 62
Fiscal policy in the monetary union .................................................................................................................. 62
Stability and Growth Pact (SGP) ....................................................................................................................... 64

The Financial Markets and the Euro .............................................................................................................. 67
Financial Markets ............................................................................................................................................. 67
The Banking Union ........................................................................................................................................... 70




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