POLH 1035: The Economic history of European integration

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POLH 1035 The Economic history of European
integration
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• 2 books, 4 ECTS
• Baldwin, R., Wyplosz, C., The Economics of
  European Integration (McGraw Hill, London, 2006)
• Grant, W., The Common Agricultural Policy
  (Basingtoke, Macmillan, London, 1997)OR
  Padoa-Schioppa, T., The Euro and its Central
  Bank Getting united After the Union (Cambridge,
  MIT Press, 2004)

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• For the Finns, one course
• Course A3.4.4 is made of a choice between 2
  courses POLH1035 or POLH 1036
• Then one of these two book exams can be chosen as
  a supplementary course.
• For Exchange students, the possibility to choose
  both courses

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• Book-exam and self-study
• A book-exam is a self-study exam which serves an
  auxiliary role, helping students to deepen their
  knowledge in a particular field or issue.
• Book exams are taken once a month on the regular
  exam day of the Faculty of Social Sciences,
  normally on Friday, 12.00-16.00.
• The exam takes the form of questions, one
  question per book.
• Look for reading and learning methods from the
  Internet
• Registration
• Registration for the book exams takes place
  through NettiOpsu (https//ssl.utu.fi/nettiopsu)
  or by filling an envelope form available from the
  Department, at least one week before the exam.

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• The questions
• A good knowledge of the main points of the book
• Finding the main points of the book
• Answering the question through the use of
  elements found in the book
• Open questions, closed questions
• Example Odysseus
• Open question Ulysse loses his compagnons along
  his journey. Elaborate on the signification of
  this.
• Closed question While Ulysse navigates, what
  happens in Ithaca?
• Closed and open question Describe the role of
  the Gods in Ulysses journey, and elaborate on
  the signification of this role
• A capacity to organize your thoughts on the book
  clearly and understandably
• Language
• Understandable, clear, to the point
• If understandable, I will not take it into
  account

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• To find the books
• The Nelli portal through the website of the
  University library
• Browsing libraries in Turku
• E-books
• The textbook library of the Faculty of Social
  Sciences
• In the Educarium building
• ASK!
• My own copy
• Buying the book?

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European integration as an economic project?

• Goal of the course is to study
• The economic incentives of psot-WW II European
  integration
• The various stages through of European economic
  and monetary integration from the 1951 European
  Community for Coal and Steel to the 1992
  Maastricht treaty
• Economy was an incentive in many former attempts
  at integration in Europe Zollverein, customs
  union, etc
• The idea of economic integration as something
  reasonable
• Jean Monnet and sectorial integration
• start with economic solidarities, economic
  projects, and then increasingly integrate more
  and more sectors, with in the long term political
  integration as well
• The political wrapped in the economic?
• Long-term threads Prosperity (emphasis on
  economic growth), free trade inside Europe
  (construction of a European market), economic
  planification (controlled change)
• Direction the strengthening of economic
  integration has been continuous, the EU being
  mostly an economic reality
• Common market, common laws and regulations, the
  Euro, etc

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• The main steps of this project?
• The 1950s the
• The 1960s crisis and strenthening of the Common
  Agricultural Policy
• The 1970s stagflation, energy crisis, the
  European Monetary System
• The 1980s more harminzation in economic and
  monetary policy
• The importance of the choice by the French in
  1983-84 of a specific economic and European
  policy that allowed for a measure of economic
  integration the end of classical keynesian
  economics, the beginning of a different economic
  era
• Economic regulation and regulation of the market
  is the only dimension of the states prerogatives
  that is to a large extent europeanized
• Debates in the current days
• The role of the Central Bank and the debate over
  the Stability pact
• Is budget discipline and a strong Euroe the right
  method?
• The role of the EU in economic governance
• Globalization-induced fears the EU as the
  liberal monster? On the contrary, the EU as too
  dirigist?

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Baldwin, R., Wyplosz, C., The Economics of
European Integration (McGraw Hill, London, 2006)

• General introduction to the economic dimension of
  European integration
• The authors
• Two professors at the Geneva Graduate Institute
  of International and Development Studies
• The book is a textbook, presenting the basic
  facts and contending interpretations. It serves
  as a good complement for the two other, more
  specialized books of the package
• Questions will be especially on part I of the
  book
• Development of European economic and monetary
  integration
• Structure of the main instruments of European
  economic integration

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Grant, W., The Common Agricultural Policy
(Basingtoke, Macmillan, London, 1997)

• Presentation of the Common Agricultural policy
• From the very start, an important part of the
  process
• France, but also other countries want it
• France especially will trigger a few crises in
  order to strengthen the CAP
• Economic, symbolic reasons
• Now, a financial burden for the EU?
• An ambiguous process, with Europe appearing at
  the same time as a support for rural regions and
  agricultural forces, and a threat (opening of
  markets, the feeling of a change in the ways of
  life, etc)
• The example of Finland farmers against the EU
  accession because of economic risks, also
  symbolic and political elements
• Chapters 1, 2, 3, 7, 8
• A rather critical assessment. Calls for
  significant reforms, and puts the finger on
  something important
• For Eurosceptics, the CAP epitomizes all that is
  wrong with the EU for those who believe in the
  European vision, it demonstrates how difficult it
  is to create a new international entity through a
  process of bargaining and mutual adjustment

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Padoa-Schioppa, T., The Euro and its Central
Bank Getting united After the Union (Cambridge,
MIT Press, 2004)

• The author Central banker, Bank of Italy since
  1968, European Central Bank since 1998
• Speaks largely for his instrument a strong,
  stable monetary policy, based on the Stability
  Pact. A strong, independent Central Bank
• The single, efficient, excellent instrument (p.
  xv)
• A Single market and free trade incompatible with
  independent, national monetary policies (1982)
• Defense and illustration of the Banks policy and
  its existence the starting point is the
  existence, opportunity, and reason of a European
  level.
• Plenty of room, if you have the will, to look
  into the assumptions of the book, even if they
  are laid out quite clearly
• A German model (price stability, reduction of
  deficits), that Germany itself, on the other
  hand, broke when convenient
• Pro-European Europe as a political project, also
  reasonable (What was to be superseded was NOT
  the power of the nation-state but its unbounded
  nature)
• European monetary integration not to be mixed
  with a common economic policy
• Historical part the political and economic
  process that brought the European Central Bank
  and the Euro into being
• Technical part Central Banking, the system, etc
• A European Central Bank that performs all three
  functions regulation, monetary policy, payment
  systems
• Advocates yet more integration in this

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• Mostly the chapters 1, 2, 7, 8
• The most historical
• Chapter 2 proposes a vision of Central Banking
  and what it does include
• The ones with perspectives on nowadays situation
• Chapter 1 Presents the political road, then the
  economic road
• Paris 1951, then 1954 the failure of the ECD,
  then Rome 1957
• Project was political, p.4
• The 1970s sees key developments
• The communities are given their own resources,
  and their capacities are extended to new, largely
  economic areas (energy, industry, etc)
• 1979 the creation of the European Monetary
  System a fixed, but adjustable, exchange rate
  system
• 1986 the European Single Act as the sign of a
  relaunch and a new European spirit (Delors,
  Mitterrand, Kohl)
• This is the moment when the economic promises of
  the communities are truly fulfilled in law free
  circulation of goods, persons, capitals, etc
• End of the 1980s The Delors committee works on a
  common monetary policy. The Berlin wall falls,
  and Germany reunified engages itself firmly for a
  European project
• Maastricht, Feb. 1992 the idea is adopted of a
  Central Bank and the Euro
• Opt-out clauses, a start in January 1999
• Significant progresses are made in 1994-1995,
  even if euro-skepticism has grown. The criteria
  acquire a life of their own
• Still perfectible last year, Erkki Liikanen try
  to move capital from one country to the other
• The importance of economic progression from the
  US dollar and gold, to flotation, to
  globalization The economic road from Rome 1957
  to Maastricht 1992 is the road from a dollar
  anchor to a proprietary anchor called the euro