European Integration
Methods and Economic Analysis
2nd Edition
Professor Jacques Pelkmans
Written by one of Europe's
leading analysts of the EU, European Integration uniquely combines economic analysis with
a detailed knowledge of the integration methods employed in the European Union.
Application of the economic analysis is demonstrated through numerous practical examples
and specially written case studies which help to bridge the gap between theory and policy
practice.
The new edition of this
highly respected text has been thoroughly updated to include all recent developments in
the field of European integration, including the Amsterdam Treaty, the arrival of the euro
and issues surrounding enlargement.
European Integration has been
carefully designed to appeal to a wide range of students studying economic integration as
part of an economics, business, law or public administration degree.
Unique integration of
economic theory with EU regulatory & policy framework.
Non-mathematical treatment
of economic theory.
Innovative analysis of the
economics of subsidiarity and the economic constitution of the EU.
Economic theory is presented
using graphical, non-algebraic tools
Numerous case studies are
included throughout, many of direct relevance to business.
Contents
List of Tables & Figures
List of Case Studies
List of Abbreviations
PART 1 FOUNDATION
Chapter 1 What is Economic
Integration?
Definition and significance
Economic and political
integration
Institutional aspects of
economic integration
Market integration and other
forms
The stages of economic
integration
Economic integration and the
WTO
Economic integration and
economic federalism
Summary
Appendix 1.1 European
Institutions: a brief guide
Appendix 1.2 New numbering of
treaty articles following Amsterdam
Chapter 2 Developing Economic
Integration in the Union
How Western Europe s
regionalism emerged
Aspirations of the founders
Deepening, widening and
enlargement
Aspirations of the Maastricht
Treaty
Meaning of the Amsterdam
treaty
Summary
Chapter 3 Economic
Constitution of the EU
An economic constitution for
integration
The economic constitution in
the Rome Treaty
The value-added of the Single
Act
The Maastricht treaty
The incrementalism of the
Amsterdam treaty
Summary
Chapter 4 Subsidiarity and
Economic Functions of the Union
The economics of subsidiarity
A subsidiarity test for the
Union
Subsidiarity and EU
regulatory strategy
Subsidiarity and
non-regulatory EU functions
Summary
PART 2 INTERNAL MARKET
Chapter 5 Product Market
Integration: The Method
The framework for product
market integration
Building the Customs Union
From customs union to product
market integration
Removing barriers in the
internal market
Summary
Chapter 6 Product Market
Integration: Economic Analysis
The basic theory of customs
union
Customs union and technical
efficiency
Customs union and decreasing
costs
Empirical studies
The pro-competitive effects
of a customs union
The economic impact of
EC-1992
Price convergence in the
internal market
Summary
Chapter 7 Services Market
Integration: The Method and Economic Analysis
The legal framework for
services market integration
Why regulate: market failures
in services
Financial services: the EU
regulatory framework
Financial services: the
economic impact
Road haulage
Summary
Chapter 8 The internal market
for network industries
Network industries and the EC
treaty
The economics of network
industries
Establishing the internal
market for network industries
Air transport
Telecoms
Summary
Chapter 9 Factor Market
Integration: The Method
Financial capital
Labour
Technology and commercial
ideas
Corporate control and
mobility of tangible assets
Summary
Chapter 10 Factor Market
Integration: Economic Analysis
Factor mobility in simple
two-country models
Economic significance of
factor market integration
The EU financial capital
market
An emerging Euro-labour
market?
An EU market for technology?
Europeanisation of business
Locational competition for
mobile assets
Summary
PART 3 COMMON
POLICIES
Chapter 11 Common
Agricultural Policy
A case for the CAP?
Objectives, principles and
instruments
Income protection,
alternative CAP methods
Assessing the CAP in actual
practice
Reforming the CAP
Summary
Chapter 12. EC Competition
Policy
Why EC competition policy?
The Community's competition
regime
Anti-collusion policy
Anti-monopoly policy
Merger Control
Controlling stateaids
Summary
Chapter 13 Common Trade
Policy
Why a common trade policy?
Principle, objectives and
instruments
Types of EC trade policy
Tariff protection
Volume protection
Anti-dumping: trade policy
instead of competition policy
Preferential trade policy
Multilateral trade policy
Summary
Chapter 14 EC Industrial
Policy
How to justify industrial
policy
Why a common industrial
policy?
Sector policies
EC technology policies
Horizontal policies
Summary
PART 4 EQUITY,
STABILISATION AND EXTENSION
Chapter 15 Equity
for the Union?
Social Policy, Cohesion and
the EU Budget
The small social acquis of
the Union
Subsidiarity and social
policy
The economics of cohesion
Cohesion policies and
subsidiarity
The Structural Funds and real
convergence
The fundamental dilemma of
the EU budget
Summary
Chapter 16 European Macro
Economic Cooperation
Macro-economic cooperation
under the Rome Treaty
Autonomy versus cooperation
in a Mundell-Fleming model
New approaches to
macro-economic policy making
The European Monetary System
Why beyond the EMS?
Summary
Chapter 17 Economic and
Monetary Union
The costs and benefits of
monetary union
Economic union
Towards monetary union
What kind of monetary union?
Micro-macro links in euroland
Monetary and fiscal policies
External aspects of the euro
Summary
Chapter 18 Pan-European
Economic Integration
Economic analysis of a free
trade area
EFTA moving into the Union
The pan-European process
under way
Economic integration with
Central Europe
The Mediterranean connection
Summary
418 pages