EU economic policy

The single market and the euro (Chapter 7)

Eu economic policy, I

• Ways of economic co-operation between countries– Free (preferential) trade area– Customs union– Common market– Economic union– Political union

• Categorize: USA, NAFTA, CETA, EU, EEC

Eu economic policy, II

• Single market– 1985: Lord Cockfield, White Paper SEA– Four freedoms of access: which four?

• (Non-tariff) barriers

Eu economic policy, III

• Effects of single market– Rights of residence– Joint ventures, joint mergers– TEN; Transport, energy– Air transport

Eu economic policy, IV

• €– (2002: 12, now 19)

– convergence criteria

– stability and growth

pact

• Exchange rate Latvian Lat 2000 - 2013

Eu economic policy, V

• Euro, benefits and costs?– Same currency everywhere– Currency flexibility no longer available– Greater price transparency– Stability of the € compared to former

currencies– € is world class currency– € is not enough to decrease disparities

EU economic policy VI

• Group Assignment:– Give 2 recommendations to Pierre

Moscovici (EU Commissioner economic and monetary affairs) how to battle the effects of the economic crisis in the EU.

AND- Should the EU have more rights to

overrule the countries’ budget decisions?

– Deadline: end of class time