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65 Cards in this Set
- Front
- Back
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Single Market
Principle Objective in? |
Treaty of Rome
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Single MArket Objective
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Free movement of goods, people, capital
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1970's Single Market
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economic downturn, nations were protecting their markets
slowed down integration |
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1986 Single Market
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Single European Act (SEA)
White Papers |
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White Papers
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Commission wrote them
directives of how to eliminate barriers on trade |
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Maastricht Treaty
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1992
integration= SPILLOVER |
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80's/ 90's Single Market
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complete
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Technical Barriers of Single MArket?
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Standards, testing, certification of Products
Capital- 90's Banks able to open branches in other countries Free Movement of labor/professions- degrees equivalent, jobs equivalent Movement of Financial Services Transportation- ex: (spillover)- airlines: system had to be liberalized- opened up airways- traveling easier, cheaper, more options---same with trains---trucks-> eliminatin of border control, pick up AND drop off Technologies- Galileo- equivalent to US GPS System but for commercial reasons, not military Company Law- pooling resources how companies get $ for public |
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Principle of Mutual Recongnition
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1979
voluntary protect own market, safety, etc recognize other countries products (NEGATIVE APPROACH) |
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Old vs New Approach (SEA)
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1986
detailed guidelines re: products states set standards according to guidelines |
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Physical Barriers to Single Market
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border control
on goods- disappearsi n 92 people- Schengen Agreement- most degrees in one country is equivalent in other countries |
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Fiscal Barriers
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VAT- harmonization of VAT rate
- imported stuff-> pay VAT in original state Excise Tax on tobacco, liquor, fuel -> commercial vs individual some can pass w/out tax |
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Trade Quotas
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on imported products
textiles, cars, banana war |
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Banana War
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trade war for 50 yrs US & EU
issue- duch and germans like bananas, care about price-> caribbean s S bananas- American Cheaper quotas o products-> dont want cheaper products coming in and taking over market |
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Premises for full implementation of Single Market
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legislative development
-product standards - financial transactions - property rights - new technologies |
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Energy Market
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protect atomic energy
France= largest producer of electric energy -> try to privatize market-> can buy from other states |
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Tele Cx
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European TV System
easily access any European channels |
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Problems with full implementation?
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countries don't follow all laws and guidelines set by the commission
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Competition Policy
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private sector: avoid dominant position of firms in the market regulates mergers
Public sector: state aid and regulated industries(watch over mergers) non EU countries have lamented protectionist practices in EU |
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Single currency benefits
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creation of a public good- reduced trsaction flaws, more efficient economy, no worry of exchanging currency
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Govt POV: 4 Advantages to Monopoly of supply and management of money
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1) seigniorge- doesnt cost much to produce money, but value is high
- new source of revenue- BUT might bring too many into economy, generate inflation 2) give govt control over activity of economy as a whole -federal reserve control - macroeconomic control 3) Promote use of symbols of national identity- cultivate and maintain a sense of loyalty 4)Not dependent on another money supplier -weaker if depending on another country for something that makes their economy function |
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Euro unique b/c
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first in modern days countries for independent countries w/own currency giving up national currency/advantages to adopt one
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German feelings for the Euro
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peope reluctant to give up deutchmark b/c only national symbol not related to Nazi's
only thing truly post-war many feel joining Euro was a mistake |
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Italians feelings for the Euro
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high inflation
no loyalty to currency |
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Maastricht Treaty - Euro
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1992 voluntarily gave national currency and benefits
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Transitioning to the Euro
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SUCCESS
11 countries started out complex but went faster than planned happened in 2 weeks, minor problem in Italy |
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Setting Policies for the Euro
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SUCCESS
European Central Bank sets them ECB had to homogenize to work across all countries established a rate of exchange between each individual currency and Euro -set of conversion rates that would be appropriate based on markets up to 1999 some countries had a small inflation |
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Expanding Euro Membership?
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started w/11 now 16 w/1 more in 2011
Britain is not interested Is now a condition of EU Membership -some reluctant and opt-out, others post-pone(Poland, Czech Republic) |
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Governance in overall economic balance
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FAIL
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European Central Bank
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extremely undemocratic
goal is to maintain the stability of thevalue of the euro independent due to Maastrich Treaty- cant change unless revised tight monetary policy ->afraid of inflation -anti-growth bias Europe growing slowly |
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Stability and Growth pact (constraint on members)
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committed govt of maintaining deficits lower then 3% and debts of 60%
ineffective- govt push the limits govt werent prepared to follow through EU wasnt prepared to penalize countries |
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Common Agricultural Policy (CAP) Objectives
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increase productivity
stabilze agricultural markets guarante regular supplies of food guarantee reasonable prices for consumers guarantee reasonable standard of life for farmers |
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CAP Basic Elements
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target price
intervention price entry price levy refund |
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CAP- target price
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to ensure adequate income to farmers
commission set price |
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CAP- intervention price
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to ensure sale regardless of demand
commission buys surplus of item, so that the price goes up |
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CAP- Entry price
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to avoid the EC to be flooded with cheap products
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CAP- Levy
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to create EC's own resources
pay EU to have items sold in the EU |
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CAP- Refund
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to encourage EC exports without losing money
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CAP Shortcomings
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Waste of agricltural products
overproduction compalins from small farmers high prices for consumers environmental concerns distortion in world prices trade disputes exporters to EU amented leview and tariffs price support cause for CAP Bankruptcy |
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First CAP REform
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1968
restructuring of the agricultural sector (mansholt plan) -small farms to be incorportated into large ones |
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CAP 1990's
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CONCERNS!!
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Concerns of CAP in the 1990's
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Food Safety
WTO and Trade Agreements Future Enlargements Overproduction and Waste people began to pay closer ateention took about 50% of EU Budget |
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Concerns of Food Safety
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mad cow disease started in Great Britain
-linked to unhealthy practices raising cattle gave idea that the ag policy did have good health standards use of fertilizers lack of control in production of what they ate-> ask questions> NEW SYSTEM IN 1997-98> Cut between production and price |
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Second CAP Reform
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1991
Price Support to Direct Compensation (MacSharry Plan) >direct income supplements to farmers linked to price levels > took land out of production to avoid overproduction > system to protect farmers despite price change |
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2003-2005 CAP Reform
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De-Coupling:
>severe link between subsidie and production >provide direct single payments to regardless of price and production Lower Intervention price for basic products Cross-compliance for farmers |
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Problems with CAP
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de-coupling is a la carte
>not all ag products are included >overproduction still likely export subsidies still in place overproduction and export subsidies: distortion in world prices Eastern european farmers |
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democratic deficit reform: EU Level
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supranational, member states take back seat
institutional reform maybe elect president, create a council of parliaments (make european law together), or local and regional representatives(solves lack of connections) |
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democratic deficit reform: member states level
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intergovernmental
national parliaments dont vote BUT monitor/tell council how to vote - CREATE CONNECTION betweeen parliament and council of ministers |
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democratic deficit reform: Sub-International level
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nothing o do with institutions
supporters of concept that there will not be a united states of europe WITHOUT A NATIONAL IDENTITY |
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robert dahl
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one of the fathers of the modern concept of democracy
should be judged according tothe citizens core to democratic system is the policy making, citizen participation |
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Undemocratic about the EU
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no political equality in European representation
weak powers of the EP decision-making process not ruled by the majority of people no accountabiity and responsiveness of EU intitutions no connection between citizens and representatives no real influence of European citizrens on the EU decision-making process |
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Democratic deficit:
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lack of:
accountability of European Institutions Connection between european citizens and EU institutions |
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Treaty of Lisbon- Democratic Deficit
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December 2007
addressed: democratic equality representative democracy participatory democracy |
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Treaty of Lisbon: Democratic Equality
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equal attention to all citizens
CHARTER OF FUNDAMENTAL RIHTS |
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Charter of Fundamental Rights
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dignity, freedom, equality, solidarity, citizenship, and justice
data protection, bioethics and the right to good administration workers' rights to be informed, to negotiate and take collective action |
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Democratic Deficit: Representative Democracy
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a great role for the european parliament and greater involvement for national parliaments
council of european union use a double majority voting to weigh both EU population (65%) and member states (55%) |
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Democratic Deficit: Participatory Democracy
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new forms of interactino between citizens and the European Institutions
the citizens initiative |
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The Citizens initiative
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a petition with at least one million signatures obtained from a number of member states can be sent to the Commission inviting it to take a legislative inititative
eu legislation can be also influenced by civil society |
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Regional Policy Origins
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Italy- only country with regional economic and social differneces in the original communitites
EC Enlargements put Regional Policy in the spotlight difficult to make economic progress when some regions arent doing as well |
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Regional Policy 1974
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italy and Ireland push for the creation of Regional Fund (ERDF)
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Regional Policy 1980's
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Increase in Regional Fund due to
enlargement to Spain and Portugal Drive to complete the Single Market |
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Regional Policy: Delors
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creation and implementation of the Single Market will not occur without dealing with economic indifferences
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Regional Policy
European Regional and Developmental Fund |
assist regions which lag behind in economic development
re-conversion and modernization of depressed insdustrial sectors |
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Regional Policy
Social Fund |
fight unemployment
integration of workers in the job market |
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Regional Policy
Cohesion Fund |
co-funds major programs for EU transportation and infrastructures
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