03/10/2022
1) Jacques Pelkmans, European intergration, Methods
Session IV
The European Union – an ever enlarging
structure
Economic and political integration in Europe –
from six to twenty seven countries involved
5) EastWest Institute, Turkey’s Accession to the
European Union, Brussels Insights, October, 2004.
6) Jennifer Rankin, Turkey's long road to EU
membership just got longer, The Guardian,
20/07/2016.
Economic integration
 elimination of economic frontiers between
two or more economies
and Economic Analysis, Second edition, Prentice Hall,
Essex 2006 (pp.2-9, 14-17, 24-28)
2) Interview with Jose Manuel Barosso,
www.cafebabel.com
3) Knut Vollebaek, “ Norway and the EU : No, No …
Yes ? ”, European Perspectives 2003
4) Jonty Bloom, “How does Norway’s relationship with
the EU work?”, BBC News, January 2016.
What is the economic integration ?
What are foundations of European integration ?
Which are main stages of European integration?
What is the evolution of the Community ?
What are the economic and political motives behind the
integration efforts in Western Europe ?
What are motives and expectations of candidate
countries ?
The case of Portugal and Norway.
The situation of Turkey
Economic integration
The foundamental significance of
economic integration is the increase of
actual or potential competition, and the
benefits flowing from this.
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Economic Integration – some

Economic integration
examples
According to Balassa there are some stages:
 Mercosur (or Mercosul)
 Free trade zone

 Customs union
 NAFTA

 Common market
 ASEAN
 Economic union

 Total economic integration  Eurasian Customs Union

Economic Integration – some Economic Integration – some

examples examples

Mercosur is a Regional Trade Agreement Mercosur

(RTA) between Brazil, Argentina, Uruguay
and Paraguay, founded in 1991 by the
Treaty of Asuncion, which was later
amended and updated by the Treaty of Ouro
Preto.
Its purpose is to promote free trade and the
fluid movement of goods, peoples, and
Currency.
The organization has a South and Central
American integration vocation.

Economic Integration – some Economic Integration – some

examples examples

Mercosur Mercosur
 Full Members
The bloc comprises a population of more  Argentina, Brazil, Paraguay, Uruguay,
than 275.5 million people (2011) and the combined Venezuela (suspended), Bolivia
Gross Domestic Product of the member nations is
in excess of 2.42 trillion dollars a year according to
 Associate members
 Chile, Colombia, Ecuador, Peru, Guyana,
World Bank numbers, making Mercosur the fifth Suriname
largest economy in the World.
 Observers
Mexico, New Zeland

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Economic integration – some
exemples
Economic Integration – some
examples
Unlike the European Union, NAFTA does not
create a set of supranational governmental bodies,
nor does it create a body of law superior to
national law.
Economic Integration – some
examples
The ASEAN Declaration states that the aims
and purposes of the Association are:
(1) to accelerate economic growth, social progress
and cultural development in the region and
(2) to promote regional peace and stability through
abiding respect for justice and the rule of law in
the relationship among countries in the region
and adherence to the principles of the United
Nations Charter.
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Economic Integration – some
examples
NAFTA- The North American Free Trade
Agreement is the trade bloc in North America
created by the North American Free Trade
Agreement (NAFTA) and its two supplements, the
North American Agreement on Environmental
Cooperation (NAAEC) and The North American
Agreement on Labor Cooperation (NAALC), whose
members are Canada, Mexico, and the United
States.
It came into effect on 1 January 1994.
Economic Integration – some
examples
ASEAN - The Association of Southeast Asian
Nations or ASEAN was established on 8 August
1967 in Bangkok by the five original Member
Countries, namely, Indonesia, Malaysia,
Philippines, Singapore, and Thailand. Brunei
Darussalam joined on 8 January 1984, Vietnam
on 28 July 1995, Laos and Myanmar on 23
July 1997, and Cambodia on 30 April 1999.
Economic integration – some
exemples
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Economic Integration – some
examples
The ASEAN Economic Community shall be the end-goal of
economic integration measures as outlined in the ASEAN
Vision 2020. Its goal is to create a stable, prosperous and
highly competitive ASEAN economic region in which there
is a free flow of goods, services, investment and a freer
flow of capital, equitable economic development and
reduced poverty and socio-economic disparities in year
2020.
Launched in 1992, the ASEAN Free Trade Area (AFTA) is
now in place.
Economic Integration – some
examples
Eurasian Customs Union came into existence on
1 January 2010 as the Customs Union of Belarus,
Kazakhstan, and Russia. Armenia and Kyrgyzstan
are members from 1 January 2015.
The Eurasian Economic Union is an international
organization for regional economic integration. It
has international legal personality.
The Treaty on the Eurasian Economic Union(EEU)
has become effective in January 2015.
Economic Integration – some
examples
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Economic Integration – some
examples
The ASEAN region has a population of about 600
million, a total area of 4.5 million square
kilometers, a combined gross domestic product of
almost US$ 700 billion, and a total trade of about
US$ 850 billion.
Economic Integration – some
examples
The Treaty confirms the creation of an economic
union that provides for free movement of goods,
services, capital and labor.
Governance of the Union is entrusted to the
Supreme Eurasian Economic Council (SEEC)
comprised of the Heads of the Member-States.
The SEEC sessions are held at least once a year.
Economic Integration – some
examples
The European Union is a unique supranational
union and intergovernmental political body. It is
composed of twenty-seven member states,
primarily located in Europe.
There is a single market between member states with a
common trade policy, a Common Agricultural/Fisheries
Policy, and a regional development policy. It introduced
a common currency, the euro, which has been adopted by
ninetheen member states. Since 1993, the EU has
developed a limited Common Foreign and Security Policy,
and co-operation in police and judicial matters.
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The European Union
The European Union is more than just a
confederation of countries, but it is not a
Federal State.
It is, in fact, something entirely new and
historically unique. Its political system
has been constantly evolving over the past 60
years and it is founded on a series of treaties
from those signed in Paris and Rome in the
1950s to the treaties of Maastricht, Amsterdam
and Nice, agreed in the 1990s and to the treaty of
Lisbon.
The European Union
The treaties constitute what is known as
‘primary’ legislation.
From them is derived a large body of
‘secondary’ legislation that has a direct
impact on the daily lives of European Union
citizens.
It consists mainly of regulations, directives and
recommendations
The legal instruments of the EC
 Directive:
binding with respect to objectives and effect
(with varying degrees of detail) ; the Member
States are held to implement directives via
incorporation in their national law in a way
suitable in their system
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The European Union
Under these treaties, the member states
of the Union delegate some of their
national sovereignty to institutions they
share and that represent not only their
national interests but also their collective
interest.
The European Union
These laws, along with EU policies in general, are the
result of decisions taken by three main institutions:
 the Council of the European Union (representing the
member states)
 the European Parliament (representing the citizens)
 the European Commission (a politically independent
body that upholds the collective European interest)
This ‘institutional triangle’ can function only if the
three institutions work closely together and trust
one another
The legal instruments of the EC
 Regulation:
an EC law binding for all legal and natural
persons – this is called ‘direct effect’
5

The legal instruments of the EC
 Decision:
binding for a firm or Member states to which it is
addressed
The principle of subsidiarity
The principle of subsidiarity, enshrined in the
Treaty of Maastricht, is essential to the way the
European Union works. It means that the EU
and its institutions act only if action is more
effective at EU level than at national or local
level. This principle ensures that the EU does
not interfere unnecessarily in its citizens’ daily
lives.
European Union
 The ‘Community method’
 Supranationality
 Intergovernmentalism
 Cooperative federalism
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The legal instruments of the EC
 Recommendations:
(Council or EP) resolutions, communications,
(Commission) White and Green Papers, and
‘opinions’ may have significant influence, but are
not binding
European Union
With over 500 million citizens the EU's economies
(7.3% of the world population) create an estimated
nominal GDP of 17.6 trillion US dollars in 2011.
Considered as a single economy the EU is the
largest in the world.
The EU is also the largest exporter in the World
and the second largest importer.
It is the biggest trading partner to many countries,
such as China and India.
European Union
 The ‘Community method’ – combined
supranationality and the pooling of sovereignty.
Some competences are assigned to the
Community level.
This approach does not imply a ‘loss of
sovereignty’.
 Supranationality - establisment of common
institutions with an important power.
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How many people live in the EU?

European Union

 Intergovernmentalism – classical bargaining and

81.7
coalition formation among national

65.0

62.4

60.6
governements seeking consensus.

46.1

38.2

21.4

16.6

10.6
11.3

10.9

10.5

9.9

9.4

8.4

7.5

5.3
5.5

5.4

4.4

3.2

2.2

2.0
 Cooperative federalism - Union’s regulations

1.3

0.8

0.5

0.4
respect the autonomy of Member States.

Spain

Poland

Finland
Sweden
Germany

France

Italy

Netherlands

Denmark

Estonia

Luxemburg
United Kingdom

Slovakia
Belgium

Czech Republic
Greece

Hungary

Bulgaria

Latvia
Ireland
Romania

Slovenia

Malta
Lithuania
Austria

Cyprus
Portugal
EU population in the world How rich is the EU compared to the
rest of the world?
Population in millions, 2011

37 100

1354

1215 26 300
25 200

12 600
10 800
12 000
502 5 800
5 200
4 200
1 200 2600
1300
318

127 143 EU China India Japan Russia United States EU China India Japan Russia United States

Size of economy: 2011 gross domestic product Wealth per person: 2011 gross domestic product
in trillion of euros per person
EU China India Japan Russia United States