European Economic Integration

Abstract

This course offers students an economic perspective on the construction and functioning of the European Community discussing both historical developments and challenges ahead. Among the topics to be dealt with are economic policy, trade, monetary integration and monetary union, financial integration, fiscal federalism and stability pact, labour markets, and EU enlargement.

Objective

The aim of the seminar is to give students an overview of the economic aspects of European integration. The course offers the possibility to discuss past and current issues related to economic integration and to set these in a perspective of recent global economic developments. Implications for Switzerland will also be considered. Students may gain insight into current economic controversies regarding the effects of the European Union and its enlargement on several economic areas.

Content

The aim of the seminar is to give students an overview of the economic aspects of European integration. The course offers the possibility to discuss past and current issues related to economic integration and to set these in a perspective of recent global economic developments. Implications for Switzerland will also be considered. Students may gain insight into current economic controversies regarding the effects of the European Union and its enlargement on several economic areas. Participants are asked to choose one of the following topics for an essay, which they are expected to hand in and present in class. Furthermore, a written report of 4 pages on one of the other papers has to be submitted and presented as part of the discussion. Everyone attending the seminar is encouraged to participate actively and contribute to the discussion of each topic. List of topics 1.Economic policy implications of the EU - Does EU integration imply a 'race to the bottom'? Theory and evidence - Does EU integration influence economic policy of the member states? - Does EU integration enhance efficiency? Public goods vs. subsidiarity. - Measuring integration: Theory and evidence for the EU 2. EU and trade - Does the Euro influence the Swiss tourism industry? - A comparison with Austria - Trade creation and trade diversion in the European Union - An evaluation of the European Common Agricultural Policy - Is Trade increasing or decreasing symmetry in the EU? Krugman vs Frankel and Rose 3. Monetary Union, European Monetary Integration - Optimal currency area criteria: Theory - Optimal currency area criteria: Empirical evidence - Tasks and objectives of the ECB and a comparison with the Fed and the SNB - The ECB: Evaluation after the first years and challenges ahead 4. Financial integration - Financial Integration and business cycle asymmetry - Interest rate pass through in the EURO area - Financial integration and economic growth - Financial integration and volatility effects 5. Fiscal federalism, Stability Pact - Social security reforms and the SGP - An evaluation of reform proposals for the SGP - Tax competition or tax harmonization? 6. Labour Markets - Labour market effects of trade integration - Labour market effects of east-west migration 7. EU Enlargement: Recent developments and prospects - ECB decision making and the EU enlargement - Fiscal implication of EU enlargement

Resources