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Economic G eography of the European integration

Explore the factors influencing European integration post-WW2, from military aspects to economic harmonization and the formation of the European Union. Understand key events, challenges, and expansions shaping Europe's economic landscape.

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Economic G eography of the European integration

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  1. Economic Geography of the European integration dr. Jeney László Senior lecturer jeney@elte.hu Economic Geography I. International Business bachelor study programme (BA) Autumn term 2015/2016. CUB Department of Economic Geography and Futures Studies

  2. Factors of European integration process after WW2. Military/defence factors (important rather at the very beginning) Soviet military threats (initially German) Economic (later) Balancing of the American hegemony in world economy Collapse of colonial empires Scientific-technical revolution  large-series production, but small national markets Expenditures of R&D, free movement of capital Joining of energetic, transport, telecommunication and informatic system  spread of services Principled idea ‘European thinkers’, Europe as a country (rules, parliament, constitution, citizenship, currency, flag, anthem, troops) • 2

  3. Beginning of the European integration: Treaty of Rome, 1958. ECSC – European Coal and Steel Community (1952) EURATOM (1958) Friendly usage of nuclear energy Development of researches, technologies, coordination of trade EEC – European Economic Community (1958), its 3 main directions: Establishment of a customs union Establishment of an economic union Establishment of development funds Ratification (1957): D, F, I, NL, B, L International voice GB: stayed out (common agricultural, customs policy not its interest) SU: just a ‘further imperialist manoeuvre’ • 3

  4. 1st widening, 1973. 1970: talks have started with 4 countries: GB, IRL, N, DK Main questions (ended with compromise): GB agreed: Font-Sterling has not become a special currency The French remained the 1st working language EC evolved towards a federative way 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) Ratifications: GB, IRL, DK yes, N no Largest market (252 mn), GDP (630 bn $, however it is only 2/3 of the US GDP) • 4

  5. Accession of Greece, 1981. 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 relation with TR – GR – TR conflict (from the legend of Trojan horse) „Population exchange”, persecutions in both sides Question of Cyprus: in 1974 TR occupied NE third of CY (Turkish Republic of Northern Cyprus) Jurisdictional waters of Aegean Sea GR did not make demands Development was not a criterion GR has not catch up its lag • 5

  6. Iberian Accession, 1986. 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 E: Franco 1972: application for associated membership to the EEC 1975: democratization by the leading of Juan Carlos from the top 1982: Felipe González (NATO membership) 1983: talks (I, F slower the accession) Harder case: large population, agriculture, dense industry, regional policy Lot of temporary derogation, rapid economic growth EEC: increased with 50 mio people (large market) ‘Blue Europe’ • 6

  7. German reunification, 1990. 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) Those who could lost by the German reunification Leaders of DDR, SU (lost position), F, GB (occupation rights) USA: not disinterested Paris, Palace of President: agreement outside, fear inside 1990: free elections in DDR (Christian democrats  rapid reunification) In law DDR joined to D (also to EC, NATO) D: huge country in the middle of Europe, self-restraints • 7

  8. The gradually widening EU, as synonym of Europe Treaty of Maastricht: any European country can join, which respects the principles of the EU Morocco: refused  outside from Europe Turkey: refused  outside from Europe + other factors But parts of the EU: Cyprus + numerous dependencies (e.g. French Guiana) 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) Accession must not endanger the results of the EU • 8

  9. The North Accession, 1995. EU came to existence: who drops out, that drops behind North Countries: EFTA (European Free Trade Association) Good relations between EC and EFTA 1977: free trade of industrial products 1994: European Economic Area (EEA): EU12 + A, SF, IS, N, S (+ 1995: FL) Adoption 80% single of market rules (expect for agriculture, fishing) New rules: possibility of consultation 1993: accession talks: A, SF, N, S N: refused by referendum Beneficial for EU Euro scepticism after Treaty of Maastricht (economic – political crisis) Weight of EU strengthened in world economy Beneficial for introduction of common currency Significance of EEA declined (hardly more than EU) IS, FL, N, CH remained EFTA members • 9

  10. „Reunification” of Europe, 2004. East Central Europe: transition „Europe Agreements”: association treaties (H: 1994) Committee makes country reports (avis) (June 1997) Council decides on the acceptance of application (December 1997) 2003: referendum in the candidate countries on the membership H: 88% yes (however: participation only 46%) 2003: Athens: 10 countries sign the accession treaty 2004: 25 EU member states 2007: BG, RO also members 2013: Croatia (talks from 2005)  28 members • 10

  11. Further enlargement  future boundaries of EUrope Iceland: requested (2013) Official candidate countries Albania Macedonia: (from 2005 with no talks) Montenegro (from 2010) Serbia (from 2012) Turkey accession talks from 2005 membership unlikely before 2020 Potential candidates: Bosnia–H, Kosovo Ukraine, Georgia, Moldova? • 11

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