Transcript Economic Geography of the European integration

Economic Geography of the
European integration
dr. Jeney László
Senior lecturer
[email protected]
Economic Geography
I. International Business bachelor study programme (BA)
Spring term 2015/2016.
CUB Centre of Economic Geography and Futures Studies
Factors of European
integration process after WW2.
1.
Military/defence factors (important rather at the very
beginning)
– Soviet military threats (initially German)
2.
Economic (later)
– Balancing of the American hegemony in world economy
– Collapse of colonial empires  higher towards the European
direction
– Scientific–technical revolution  large-series production – BUT:
too small national markets
– Expenditures of R&D  need for free movement of capital
– Joining of energetic, transport, telecommunication and
informatic systems  need for free movement of services
3.
Principled idea
– ‘European thinkers’, Europe as a country (rules, parliament, 2
constitution, citizenship, currency, flag, anthem, troops)
Beginning of the
European integration:
Treaty of Rome, 1958.
I. ECSC – European Coal and Steel Community (1952)
II. EURATOM (1958)
–
–
Friendly usage of nuclear energy
Development of researches, technologies, coordination of
trade
III. EEC – European Economic Community (1958), its 3
main directions:
1.
2.
3.
Establishment of a customs union
Establishment of an economic union
Establishment of development funds
–
GB: stayed out (common agricultural, customs policy not its
interest)
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SU: just a ‘further imperialist manoeuvre’
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Ratification (1957): D, F, I, NL, B, L
International voice
1st widening, 1973.
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1970: talks have started with 4 countries: GB, IRL, N, DK
Main questions (ended with compromise):
GB agreed:
– Font-Sterling: not a special currency
– The French remained the 1st working language
– EC evolved towards a federative way
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Claims of GB (the others has not):
– Temporary derogations: coastal fishing areas 10, joining to the
agricultural market 5, to the ECSC 5, to the industrial common
market 4, to the EUROATOM 1 year
– Only gradually increasing contribution to the common budget till
1978
– Same place in the institutions like the other large ones (D, F, I)
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Ratifications: GB, IRL, DK yes, N no
Largest market (252 mn), GDP (630 bn $, however it4 is
only 2/3 of the US GDP)
Accession of Greece,
1981.
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1959: application for associated membership (1962
articles of partnership)
1967–1974: ‘coup’, military junta (‘Black Colonels’)
1975: application for full EC-membership
Slow political stabilization, difference: orthodox
Bad relations with TR (from the legend of Trojan horse)
– 400 years Turkish rule, 9 years war of independence: 1821–1830
– After WW1 „population exchange”, persecutions in both sides
– Question of Cyprus: 1974 – need for unification with CY (enosis)
 TR occupied 1/3 of CY (Turkish Rep. of Northern CY)
– Question of jurisdictional waters of Aegean Sea
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GR did not make demands
Political question  development was not a criterion
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GR could not catch up its lag
– Per capita GDP: 1980 – 60%, 2000 – 65–70% of EC average
Iberian Accession, 1986.
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Included in the West European thought since the Romans
15th–17th century: strong, 18th–20th centrury: weakened
Post-war: authority regimes remained
P: Salasar
– Founding member of EFTA
– Colonial wars (Angola, Mozambique), support from USA
– 1974: carnation revolution – democratization by a socdem. leading
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E: Franco
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1972:
1975:
1982:
1983:
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application for associated membership to the EEC
democratization by the leading of Juan Carlos from the top
Felipe González (NATO membership)
talks (I, F slowered the accession)
Harder case: large population, agriculture, dense industry, regional policy
Lot of temporary derogation, rapid economic growth
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EEC: increased with 50 mn people (large market)  ‘Blue Europe’
German reunification,
1990.
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1989: no one expected to this
East German tourists at the Embassies of D
– Political Office (Politbüro) of DDR has resigned (free emigration,
collapse of wall)
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Those who could lost by the German reunification
– Leaders of DDR, SU (lost position), F, GB (occupation rights)
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USA: not disinterested
Paris, Palace of President: agreement outside, fear inside
1990: free elections in DDR (Christian democrats 
rapid reunification)
By law DDR joined to D (also to EC, NATO)
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D: huge country in the middle of Europe, self-restraints
The gradually widening EU, as
synonym of Europe
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Treaty of Maastricht: any European country can join,
which respects the principles of the EU
– Morocco: outside from Europe  refused
– Turkey: other factors  refused
– But parts of the EU: Cyprus + numerous dependencies (e.g.
French Guiana)
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Copenhagen criteria (1993)
– Political (democracy, rule of law, human and minority rights)
– Economic (functioning market economy)
– Legislative alignment (to bring the laws into the line with EU law
– acquis communautaire)
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Accession must not endanger the results of the EU
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The North Accession,
1995.
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EU came to existence: ‚who drops out, drops behind’
1993: accession talks: A, SF, N, S (N refused by
referendum)
1994: European Economic Area (EEA): EU12 + A, SF, IS,
N, S (+ 1995: FL)
– Antecendents: good EC–EFTA (European Free Trade Assoc.)
relations, 1977: free trade of industrial products
– Adoption 80% of single market rules (except for agriculture,
fishing)
– New rules: possibility of consultation
– Significance of EEA declined (hardly more than EU): IS, FL, N,
CH remained EFTA members
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Beneficial for EU
– Euroscepticism after Maastricht Treaty (economic–political crisis)
– Weight of EU strengthened in world economy
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– Beneficial for introduction of common currency
Antecendents of the
East Accession
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East Central Europe: transition
1994: „Europe Agreements”: association treaties
Main question: which countries should be begun the
accession talks with? Differentiation or Regatta Principle
– Majority of member states supported the differentitation
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1995: Council asked the Committee to make country
reports (avis) (June 1997) – affect of enlargement to EU
1997, Agenda 2000: determines the financial conditions
of enlargement (adopted by the Berlin Summit, 1999)
Council decides on acceptance of application (Luxemburg
Summit, Dec 1997: launching of Eastern enlargement)
– Accession talks with the most prepared 5+1: CZ, H, PL, SLO,
EST + CY (H: from 1988)
– Only process of enlargement: 5 countries (BG, LT, LV, RO, SK)
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– Only partner of the EU: TR (human rights)
„Reunification” of
Europe, 2004.
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1999: Helsinki Summit
– Accession talks with the others
– Except for TR, candidate status
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2002: Reforms of Nizza: determines the institutional
conditions of enlargement
Closing of accession talks (except for BG and RO)
2003: referendum in the candidate countries on the
membership
– H: 88% yes (however: participation only 46%)
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2003, Athens: 10 countries signed the accession treaty
2004: 25 EU member states
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Impacts of enlargements
Growth in %
Area
Population
GDP
Per capita
GDP
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Challenges of East Accession
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13 countries wanted to access
More underdeveloped ones
Widening and deepening at the same time:
– Community achievements (acquis communautaire)
should remain
– EU should remain being able to be financed
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Area increased with 34%, agricultural land area 50%, pop.
29%, agricultural producers 100%, GDP 9%
Per capita GDP: decreased with 16%
– Institutional bodies should function
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Further Eastern
enlargement  future
boundaries of EUrope
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2007: BG, RO also members
2013: Croatia (talks from 2005)  28 members
– Supported by the Hungarian Presidency, accession talks from
2005, but paused
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Official candidate countries
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Albania: candidate from 2014 without accession talks
Macedonia: from 2005 without talks (GR, BG hamper)
Montenegro: from 2010, accession talks from 2012
Serbia: from 2012, accession talks from 2014
Turkey (1964: associated member, 1987: application for
membership, candidate from 1999, talks from 2005, but
membership unlikely before 2020)
Potential candidates: Bosnia–H, Kosovo
Ukraine, Georgia, Moldova?
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Outher countries
standing out
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Refused by European integration
– Morocco: 1987: application for membership, nonEuropean  refused
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Not scheduled
– Belarus
– Russia
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Refused by the given country
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Norway: refused 2X by referendums (1973 and 1994)
Greenland: exit in 1985
Switzerland: refused by referendum (1992)
Iceland: candidate from 2010, but requested (2015)
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