The EU and globalisation Part I

1
The EU and globalisationPart I

• Eurochambers Academy International trade and
  globalisation
• Annecy 23-34th January 2003

2
The globalisation debate

• Globalisation is undermining the power of the
  nation state
• Little has changed from the 19th Century
• Globalisation requires policy responses

3
Some elements of globalisation

• Technological change
• Increased trade and investment
• The ability to maintain domestic social cohesion

4
Technological change

• Global communications undermines the power of the
  state to regulate
• Little qualitative difference between the
  telegraph and the internet
• Technology of today facilitates interests to
  bypass regulation that is limited by national
  jurisdiction

5
Increased trade and investment

• Creating a race to the bottom as states compete
  for investment
• Little different to the interdependence before
  1914
• Trade is intra industry, production is global and
  investment is direct investment

6
Maintenance of social cohesion

• Globalisation undermines social norms and social
  security systems
• No race to the bottom and state spending on
  social cohesion has been maintained
• Shift in tax burden, perception of globalisation
  remains despite economic arguments

7
The role of Europe

• domestically the EU has sought to reconcile
  market liberalisation with the maintenance of
  social norms
• Competition among rules but no race to the bottom
• Labour standards a side agreement?
• Maastricht criteria and stability pact a threat
  to social welfare programmes?
• But state has retained scope to regulate

8
Europes influence

• Weight of the European economy
• Increasing competence
• Enlargement
• Role of the Euro
• Europe as a model for deeper integration
• But relative power limited during the 1990s due
  to resurgence of the US economy

9
Position in trade policy

• Influence but can this influence be brought to
  bear (effectiveness in decision making)
• Shift to multilateralism during the 1980s and
  1990s
• Relatively liberal
• But domestic preferences reflected in position
  in WTO negotiations
• Use of acquis in regional and bilateral agreements