EU economy in the context of the worldcrisisNeven Borak
Points departure• Collective loss of memory.• Cyclicallity of time.• Negative vs. positive integration.
HaulageFrench trainIllyrian rovincesGerman trainHolly Roman Empire.Holly Aliance.Balance of powers.WWI.WWII.Cold War Vzhod...
United States of EuropeRichard Coudenhove-Kalergi:Pan-Europa (1923)"Europe as a political concept does notexist. This part...
United States of EuropeUnion FederationConfederationChristian USESoviet USEUSE with German leadership
CompetencesTreaty on the Functioning of the European Union.Exclusive(a) customs union;(b) the establishing of the competit...
Coordination- The Member States shall coordinate their economic policies within the Union. To thisend, the Council shall a...
Economic and monetary policy I1. For the purposes set out in Article 3 of the Treaty on European Union, the activities oft...
Economic and monetary policy II1. Member States shall conduct their economic policies with a view to contributing tothe ac...
Monetary policyOverdraft facilities or any other type of credit facility with the European Central Bank orwith the central...
No-bail clauseThe Union shall not be liable for or assume the commitments of central governments,regional, local or other ...
Fiscal policies1. Member States shall avoid excessive government deficits.2. The Commission shall monitor the development ...
Unfinished projectSingle monetary policy, several fiscal policies.(FRG: Stability and growth law 1967)Stability and Growth...
A Guide to SGPs reforms over the yearsSingle monetary policy, several fiscal policies.(FRG: Stability and growth law 1967)...
Stability and Growth Pact 1997 (I)
Stability and Growth Pact 2005 (II)
Stability and Growth Pact 2011 (III)
The European semester
Stability and Growth Pact 2013 (IV)
Rule of man or rule of law or rule of equations?
Rule of man or rule of law or rule of equations?
Rule of man or rule of law or rule of equations?
Rule of man or rule of law or rule of equations?
Intermediate solutionsMonetary union, fiscal union, banking union, ? unionEuropean Systemic Risk Board (to identify and mo...
Speculations on final solutionMore exclusive and less shared competences.From single monetary policy and several fiscal po...
Upcoming SlideShare
Loading in...5
×

Lecture eu economy in the context of the world crisis

109

Published on

Published in: Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
109
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
4
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Lecture eu economy in the context of the world crisis

  1. 1. EU economy in the context of the worldcrisisNeven Borak
  2. 2. Points departure• Collective loss of memory.• Cyclicallity of time.• Negative vs. positive integration.
  3. 3. HaulageFrench trainIllyrian rovincesGerman trainHolly Roman Empire.Holly Aliance.Balance of powers.WWI.WWII.Cold War Vzhod-ZahodYugoslavia – mini union?Foundations, identity, debts.Fall of iron curtain Mitteleuropa , EU, EMUMitteleuropa
  4. 4. United States of EuropeRichard Coudenhove-Kalergi:Pan-Europa (1923)"Europe as a political concept does notexist. This part of the world includesnations and states installed in thechaos, in a barrel of gunpowder ofinternational conflicts, in a field offuture conflicts. This is the EuropeanQuestion: the mutual hate of theEuropeans that poisons theatmosphere. (....) The EuropeanQuestion will only be solved by meansof the union of Europes nations. (...)The biggest obstacle to theaccomplishment of the United Statesof Europe is the one thousand yearsold rivalry between the two mostpopulated nations of Pan-Europe:Germany and France..."Aristide BriandLeague of nations (1929)"I believe that a sort of federal bondshould exist between the nationsgeographically gathered as Europecountries; these nations should, at anymoment, have the possibility ofestablishing contact, of discussingtheir interests, of adopting commonresolutions, of creating amongstthemselves a bond of solidarity thatallows them, on suitable occasions, toface up to serious circumstances, incase they arise. (...) Evidently, theassociation will take place mainly inthe economic domain: this is the mostpressing question..."
  5. 5. United States of EuropeUnion FederationConfederationChristian USESoviet USEUSE with German leadership
  6. 6. CompetencesTreaty on the Functioning of the European Union.Exclusive(a) customs union;(b) the establishing of the competitionrules necessary for the functioning ofthe internal market;(c) monetary policy for the Member Stateswhose currency is the euro;(d) the conservation of marine biologicalresources under the common fisheriespolicy;(e) common commercial policyShared(a) internal market;(b) social policy, for the aspects defined inthis Treaty;(c) economic, social and territorialcohesion;(d) agriculture and fisheries, excluding theconservation of marine biologicalresources;(e) environment;(f) consumer protection;(g) transport;(h) trans-European networks;(i) energy;(j) area of freedom, security and justice;(k) common safety concerns in publichealth matters, for the aspects definedin this Treaty
  7. 7. Coordination- The Member States shall coordinate their economic policies within the Union. To thisend, the Council shall adopt measures, in particular broad guidelines for these policies.Specific provisions shall apply to those Member States whose currency is the euro.- The Union shall take measures to ensure coordination of the employment policies of theMember States, in particular by defining guidelines for these policies.- The Union may take initiatives to ensure coordination of Member States’ social policies.- The Union shall have competence to carry out actions to support, coordinate orsupplement the actions of the Member States. The areas of such action shall, at Europeanlevel, be:(a) protection and improvement of human health;(b) industry;(c) culture;(d) tourism;(e) education, vocational training, youth and sport;(f) civil protection;(g) administrative cooperation.
  8. 8. Economic and monetary policy I1. For the purposes set out in Article 3 of the Treaty on European Union, the activities ofthe Member States and the Union shall include, as provided in the Treaties, theadoption of an economic policy which is based on the close coordination of MemberStates’ economic policies, on the internal market and on the definition of commonobjectives, and conducted in accordance with the principle of an open marketeconomy with free competition.2. Concurrently with the foregoing, and as provided in the Treaties and in accordancewith the procedures set out therein, these activities shall include a singlecurrency, the euro, and the definition and conduct of a single monetary policy andexchange-rate policy the primary objective of both of which shall be to maintain pricestability and, without prejudice to this objective, to support the general economicpolicies in the Union, in accordance with the principle of an open market economywith free competition.3. These activities of the Member States and the Union shall entail compliance with thefollowing guiding principles: stable prices, sound public finances and monetaryconditions and a sustainable balance of payments.
  9. 9. Economic and monetary policy II1. Member States shall conduct their economic policies with a view to contributing tothe achievement of the objectives of the Union, as defined in Article 3 of the Treaty onEuropean Union, and in the context of the broad guidelines.2. 2. The Council shall, on a recommendation from the Commission, formulate a draftfor the broad guidelines of the economic policies of the Member States and of theUnion, and shall report its findings to the European Council. The European Councilshall, acting on the basis of the report from the Council, discuss a conclusion on thebroad guidelines of the economic policies of the Member States and of the Union.On the basis of this conclusion, the Council shall adopt a recommendation setting outthese broad guidelines. The Council shall inform the European Parliament of itsrecommendation.3. In order to ensure closer coordination of economic policies and sustainedconvergence of the economic performances of the Member States, the Councilshall, on the basis of reports submitted by the Commission, monitor economicdevelopments in each of the Member States and in the Union as well as theconsistency of economic policies with the broad guidelines referred to in paragraph2, and regularly carry out an overall assessment.4. For the purpose of this multilateral surveillance, Member States shall forwardinformation to the Commission about important measures taken by them in the fieldof their economic policy and such other information as they deem necessary.
  10. 10. Monetary policyOverdraft facilities or any other type of credit facility with the European Central Bank orwith the central banks of the Member States (hereinafter referred to as ‘national centralbanks’) in favour of Union institutions, bodies, offices or agencies, central governments,regional, local or other public authorities, other bodies governed by public law, or publicundertakings of Member States shall be prohibited, as shall the purchase directlyfrom them by the European Central Bank or national central banks of debt instruments.The primary objective of the European System of Central Banks (hereinafter referred toas ‘the ESCB’) shall be to maintain price stability. Without prejudice to the objective ofprice stability, the ESCB shall support the general economic policies in the Union with aview to contributing to the achievement of the objectives of the Union as laid down inArticle 3 of the Treaty on European Union. The ESCB shall act in accordance with theprinciple of an open market economy with free competition, favouring an efficientallocation of resources, and in compliance with the principles set out in Article 119.
  11. 11. No-bail clauseThe Union shall not be liable for or assume the commitments of central governments,regional, local or other public authorities, other bodies governed by public law, or publicundertakings of any Member State, without prejudice to mutual financial guarantees forthe joint execution of a specific project. A Member State shall not be liable for or assumethe commitments of central governments, regional, local or other public authorities, otherbodies governed by public law, or public undertakings of another Member State, withoutprejudice to mutual financial guarantees for the joint execution of a specific project.
  12. 12. Fiscal policies1. Member States shall avoid excessive government deficits.2. The Commission shall monitor the development of the budgetary situation and of thestock of government debt in the Member States with a view to identifying gross errors. Inparticular it shall examine compliance with budgetary discipline on the basis of thefollowing two criteria:(a) whether the ratio of the planned or actual government deficit to grossdomestic product exceeds a reference value, unless:— either the ratio has declined substantially and continuously and reached alevel that comes close to the reference value,— or, alternatively, the excess over the reference value is only exceptional andtemporary and the ratio remains close to the reference value;(b) whether the ratio of government debt to gross domestic product exceeds areference value, unless the ratio is sufficiently diminishing and approaching the referencevalue at a satisfactory pace.3. If a Member State does not fulfil the requirements under one or both of thesecriteria, the Commission shall prepare a report. The report of the Commission shall alsotake into account whether the government deficit exceeds government investmentexpenditure and take into account all other relevant factors, including the medium-termeconomic and budgetary position of the Member State.
  13. 13. Unfinished projectSingle monetary policy, several fiscal policies.(FRG: Stability and growth law 1967)Stability and Growth Pact 1997 (I)Stability and Growth Pact 2005 (II)Stability and Growth Pact 2011 (III, six-pack)Fiscal compact 2012Stability and Growth Pact 2013 (IV, two-pack)
  14. 14. A Guide to SGPs reforms over the yearsSingle monetary policy, several fiscal policies.(FRG: Stability and growth law 1967)Stability and Growth Pact 1997 (I)Stability and Growth Pact 2005 (II)Stability and Growth Pact 2011 (III, six-pack)Fiscal compact 2012Stability and Growth Pact 2013 (IV, two-pack)
  15. 15. Stability and Growth Pact 1997 (I)
  16. 16. Stability and Growth Pact 2005 (II)
  17. 17. Stability and Growth Pact 2011 (III)
  18. 18. The European semester
  19. 19. Stability and Growth Pact 2013 (IV)
  20. 20. Rule of man or rule of law or rule of equations?
  21. 21. Rule of man or rule of law or rule of equations?
  22. 22. Rule of man or rule of law or rule of equations?
  23. 23. Rule of man or rule of law or rule of equations?
  24. 24. Intermediate solutionsMonetary union, fiscal union, banking union, ? unionEuropean Systemic Risk Board (to identify and monitor systemicrisk, and to issue policy recommendations to mitigate suchrisks)European Stability Mechanism (a permanent crisis resolutionmechanism)European Financial Stability Facility
  25. 25. Speculations on final solutionMore exclusive and less shared competences.From single monetary policy and several fiscal policiestosingle monetary policy and single fiscal policy.Monetary union + fiscal federalismMonetary union, fiscal union, banking union, ? unionMore exclusive and less shared competences.
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×