Econ. Integration Flashcards
(20 cards)
Economic integration
Process of countries reducing trade barriers and coordinating policies to facilitate economic growth
Free trade area
(Levels of economic integration)
MS eliminates tariffs and trade barriers while preserving independent external trade policies towards non MS
Customs union
(Levels of economic integration)
Free Trade Area but w/ common external tariff policy towards non MS
Ex: EU Customs Union
Single Market
(Levels of economic integration)
Deeper integration, free mov. of good, services, capital, and persons
Removes non-tariff barriers like product standards and licensing requirements that slow down the market
Ex: EU internal market
Economic and monetary union
(Levels of economic integration)
Single market w/ coordinated economic policies and common currency
E.g. Eurozone
Path of the EU in economic integration
Customs Union in 1957, Treaty of Rome –> Single Market in 1993, Single European Act –> Economic and Monetary Union today, Maastricht
Internal Market
Single market in the EU
Four Fundamental Freedoms
Free mov. of goods
Free provision of services
Free mov. of capital
Free mov. of persons
Dassonville case
Defined measures with equivalent effect to a quantitative restriction (breaching the four fundamental freedoms)
Cassis de Dijon
Established principle of mutual recognition (legal products in one MS must be allowed in others)
Bosman case
Addressed free mov. of workers in pro sports
Harmonization of EU law
Aligning of national laws to ensure consistency in the EU
Legislative instruments for harmonization
Regulations, directives, decisions
(Secondary law)
Role of CJEU in harmonization
Ensures uniform interpretation of EU law across MS
Enforces compliance for harmonization to be implemented
Examples of harmonization
Consumer Protection (directive)
Competition Law (regulation)
Digital Services Act (regulation)
Centralization of resources
(Consequences of internal market)
Resources go to the most capable areas
Ex: No mechanics in Bulgaria because they all go to Germany
Choosing MS standards
(Consequences of internal market)
Mutual recognition incentivizes companies to establish themselves in the MS w/ the least stringent product standards to sell across the EU
Incentive to deregulate
Trust
(Consequences of internal market)
MS trust each other to not ruin each other’s national interests through deregulation
Otherwise they would leave and the EU would collapse
Approaches to integration
Mutual recognition (decentralized)
Harmonization (centralized)
Minimum standard (modern)
Yonemoto case
Manufacturers responsible for ensuring conformity to the minimum standard, not importers, otherwise declarations of conformity would be pointless
