| Economics of the European Union : Economics of the European Union Prepared for
Understanding and Teaching the European Union
A Summer Workshop for Secondary School Educators
June 15, 2007 |
| Stages of Economic Integration : Stages of Economic Integration - Free Trade Area Country 1 Country 2 Country 3 |
| Stages of Economic Integration : Stages of Economic Integration - Customs Union Country 1 Country 2 Country 3 Country 4 |
| Stages of Economic Integration : Stages of Economic Integration Common Market
Monetary Union
Economic Union |
| Major Events in European Economic Integration : Major Events in European Economic Integration Treaty of Rome (1957)
European Monetary System (1979)
The Single European Act (1987)
The Maastricht Treaty (1992)
The Monetary Union |
| The European Monetary System : The European Monetary System The Exchange Rate Mechanism 2.5% 2.5% |
| The Single European Act : The Single European Act Eliminate non-tariff barriers to trade
dumping
production requirements
subsidies
national regulations
classification
quotas
‘buy national’ policy
|
| The Single European Act : The Single European Act Harmonization of national legislation
- the early stages
Attempts to equalize standards and regulations
Frustration
Economic decline
The need for a new approach |
| The Single European Act : The Single European Act Mutual recognition of standards
greater reliance on national standards
harmonization in limited areas
examples: Cassis de Dijon
German beer purity law
chocolate content |
| The Single European Act : The Single European Act Simplified decision-making procedures
qualified majority voting replace unanimity
Set the timetable for single market completion |
| The Three Stages of the EMU : The Three Stages of the EMU Stage 1 (1990-1994): free movement of capital;
culminated in the Maastricht Treaty
The collapse of ERM I
Creation of ERM II
Stage 2 (1994-1999): created ECB
Stage 3 (1999-): fixed exchange rates; launched euro
|
| Structure of the EMU : Structure of the EMU European System of Central Banks (ESCBs)
- Tasks
ESCB President
Governing Council, Executive Board
General Council
|
| Criteria for Entry : Criteria for Entry The so called convergence criteria
Rate of inflation
Level of budget deficit
Exchange rate stability
Durability of convergence |
| Living in a Monetary Union : Living in a Monetary Union Before….. |
| Living in a Monetary Union : Living in a Monetary Union … and After easier travel: Schengen Agreement
easier trade |
| Living in a Monetary Union : Living in a Monetary Union … and After easier travel: Schengen Agreement
easier trade
more choices in consumer goods
more competition in services
lower prices
telecommunication: 7.5% a year
electricity: 6.5 % overall |
| Living in a Monetary Union : Living in a Monetary Union … and After European Citizenship
Single Currency introduced on January 1, 1999
The Eurosystem: European Central Bank and
national central banks |
| Living in a Monetary Union : Living in a Monetary Union … and After - European Citizenship
- Single Currency introduced on January 1, 1999
1 January 2002: € Day –
Euro notes and coins enter circulation
|
| Living in a Monetary Union : Living in a Monetary Union Practical results of the monetary union - No need to exchange currency when traveling
- Easier to compare prices
- Reduced bank charges and costs of transfers
- Euro accepted outside the Eurozone
- Cheaper to do trade
- More predictable business environment |
| Slide24 : Traveling in the European Union |
| Slide25 : Traveling in the European Union It is easy - Driver’s license
- Access to healthcare
- Mobile phone |
| Slide26 : Studying in the European Union |
| Slide27 : Studying in the European Union - Information: find out with Ploteus
- Students and teachers: Socrates
- European Credit Transfer System
- Diploma supplement |
| Slide28 : Working in the European Union |
| Slide29 : Working in the European Union Vocational training with Leonardo da Vinci
Europass Training document |
| Slide30 : Implications for EU’s Global
Economic Importance The single largest trading bloc in the world
Biggest overall economy
Second in terms of per capita wealth
Largest trading partner and investor for the US |
| EU-US Economic Relations : - $ 2.5 trillion a year
- 12 million people
- 4 times as many sales as to Canada and Mexico
- 65 % of US foreign investment
- 43 % of US oversees employment EU-US Economic Relations |
| EU-US Economic Relations : EU-US Economic Relations Ireland or China? |
| EU-US Economic Relations : EU-US Economic Relations Denmark or India? |
| EU-US Economic Relations : EU-US Economic Relations The Netherlands or Asia? |
| EU-US Economic Relations : EU-US Economic Relations Germany or South America? |
| EU-US Economic Relations : EU-US Economic Relations
- Europe invests in the US more than US - in Europe
- More Americans are employed by European companies than vice versa
|
| EU-US Economic Relations : EU-US Economic Relations
- California
- Texas
- Southeast US
--- Florida Which states matter? |
| Slide38 : EU-US Economic Relations |
| Slide39 : Conclusions Tremendous achievements
Slow but steady process
Countries want to join due to prosperity
Increased leverage for the EU
Implications from recent enlargement |