Research Proposal
The Negative Effects of Economic Integration within the European Union
Statement of Background and Thesis
Economic integration is a process that involves coherence of the policies applied in integrated countries. This phenomenon requires the abolishment of customs tariffs between the borders of those countries. Economic integration of states leads to the creation of the terms of trade and is intended to provide benefits that trigger the economic development. There are different forms of economic integration, one of which is an economic and monetary union. It is a trade bloc, which is composed of a monetary union and common market and custom unions. The European Union is an example of this type of economic community.
Europe’s drive towards economic integration took a very significant step in 1968 when EU became a full customs union. The association removed all tariffs and quotas on trade among the member states and adopted a common tariff system. The Maastricht Treaty, which took effect in 1993, has created a formal European Union as we know it today. The European Union has introduced a single currency, which created a single market. It was expected that euro would stimulate economic growth due to the lower interest rates and contribute to a greater stability of currency. The integration within EU also involved the centralization, which was supposed to strengthen the position of member countries in international trade matters.
The thesis of the paper states the integration with the EU has had negative economic effects on the economies of the member countries and did not turn Europe into a dynamic economic area. The inflexible monetary policy deprived the countries of opportunity to insulate their economies from the inflationary shocks in other member countries. There is no central authority that regulates national debts, which creates a risk of economic crisis in certain countries within the European zone. The integration has created lower economic growth due to the regulations of the labor market, inefficient common agricultural policy, and rigid policies.
Annotated Bibliography
Waele, Henri de and Jan-Jaap Kuipers. The European Union's Emerging International Identity. 1st ed., Leiden, Martinus Nijhoff, 2013,.
The book written by an Associate Professor of European Law and an Associate at De Brauw Blackstone Westbroe provides a comprehensive analysis of the Union’s functioning in different contexts. The book presents a valuable and significant work as it offers an in-depth and unbiased study of the constitutional foundations of the external relations of the European Union. The work is intended to provide an overview of EU policies for scholars of EU law and is mainly written from the legal perspective. Nevertheless, it also offers information relevant to the research, which includes the analysis of the financial crisis within the European area. The authors do not offer to make far-reaching conclusions but provide an overall view of the EU on the international scene.
Balcerowicz, Leszek et al. Economic Growth in the European Union. 1st ed., The Lisbon Council, 2013,.
The e-book published by Lisbon Council for Economic Competitiveness and Social Renewal provides an in-depth analysis of the major …
