Making a European Market
Full course description
Making a European Market (MEM) seeks to introduce the students to the problems involved in an economic integration process in general and the European integration experience in particular. The course is about an economic analysis of the integration process. The course is designed along three themes. The first theme deals with the theory and process of negative economic integration (removing border controls and barriers to trade) starting with the economics of free trade and protectionism as backdrops. The second theme is about the theory and process of positive economic integration (creating institutions and common policies). Then the course moves into the economics behind various policy domains. The third theme of the course focuses on further or para-integration versus disintegration to signify that the EU is now at the crossroads with the eurozone crisis under way. The creation of the EMU and theoretical approaches to a monetary union are explained. Since the use of fiscal policy is the only remaining policy option for member states to influence growth and deal with external shocks and business cycles, the debate on whether fiscal policy should be independent, subjected to quantitative limits as in the SGP or simply coordinated is discussed. The course ends with the discussion of the eurozone crisis and the bail-out package and scenarios on para-integration towards fiscal federalism or fiscal union or disintegration with exit of Greece.
At the end of this course, students will: • Know the analytical tools required to understand the EU’s trade policies and the welfare effects of economic integration; • Understand policy domains of the EU from an economic perspective; • Make an assessment of where the EU is going through scenario-building.
• Senior Nello, S. (2009). The European Union: economics, policies and history. (2nd ed.). Berkshire Mc-Graw Hill.