Materials exam Flashcards
(222 cards)
1
Q
1973 enlargement
A
UK, Denmark, Ireland
2
Q
Stabilisation and Association Agreement
A
EU and Western Balkan countries
3
Q
Trade policy is an exclusive competency of the EU?
A
YES
countries cannot make their own agreements
4
Q
the substantive backbone of the EU cohesion policy 2014-2020
A
Europe 2020 Strategy
5
Q
Lisbon strategy (2000) objective
A
EU economy will become the most competitive in the world
6
Q
Open Method of Coordination
A
EU policy-making process or a regulatory instrument
initiated by the Lisbon European Council in 2000
soft governance in areas falling under the partial or full competence of Member States
instruments: guidelines, evaluations
7
Q
Why can asymmetric shocks impose costs on member states of monetary union?
A
they increase mobility and hence labour market costs for countries that are affected by asymmetric shock
8
Q
Which conceptual argument does NOT speak in favour of coordination of fiscal policies on the EU level?
A
deficit bias of national fiscal policies
9
Q
Is rural development an integral part of the Common Agricultural Policy?
A
yes
10
Q
What was the key feature of the Common Agricultural Policy in the period 1983/84-1992/92?
A
Control of Supply of agricultural products based on introduction of a complex system of quotas (limitation on production)
11
Q
What are the main principles of the EU law?
A
Direct effect, autonomy, and primacy of the EU law
12
Q
What is the key characteristic of a “regulation” as one of the main types of the EU secondary legislation?
A
It is mandatory legal act of the EU which applies directly to all EU member states.
13
Q
Which two EU policies account for approximately three quarters of all EU budget?
A
Common Agricultural Policy and Cohesion Policy
14
Q
Which geographical areas of the EU are entitled to the largest portion of cohesion policy resources from the EU budget?
A
regions with a GDP per capita under 75% of the EU average
NUTS system - 3 levels of statistical units in a country
eastern and southern countries
15
Q
What are the main legal sources of the EU competition and state aids policy?
A
The Treaty (která??) and the Merger Regulation
16
Q
What do articles 101 and 102 of the Lisbon Treaty (articles 81 and 82 before
Lisbon Treaty) speak about?
A
About Competition Policy principles.
17
Q
What is determined by the “shared competency” in accordance with the Lisbon Treaty?
A
Areas where both the EU and member states are authorised to adopt legally binding acts but where the EU can only act if the member states have not already exercised their authority.
18
Q
What is the characteristic of the “old approach” to removal of technical barriers in the internal market?
A
Detailed harmonization
19
Q
What is the transmission mechanism of monetary policy of the ECB
A
Procedures used for transmission of centralized decisions of the Eurosystem to decentralized implementation of these decisions through the national central banks (check)
20
Q
What was characteristic of the so called “hard” period of the European monetary system (EMS)?
A
German monetary policy leadership and stability of exchange rates in the exchange rate mechanism (ERM)
21
Q
Monetary policy decision making in the euro area is ____, while monetary policy implementations is____.
A
Centralized/decentralized.
22
Q
Which are the two pillars of the Eurosystem’s strategy in monetary policy decision making?
A
Economic and monetary analysis
23
Q
Which of the reasons stated below has been preventing development of a true EU energy policy for many years?
A
Dominant market position of a small number of players and state ownership in the energy sector.
24
Q
What role did the so called Cardiff process played in EU environmental policy?
A
The Cardiff process established the concept of environmental mainstreaming by including environmental aspects in all the areas of EU policies.
25
What was the common problem of the first two EU emission trading schemes?
Free trade of goods among member states and a common external (customs) tariff towards third countries, free trade of services and free movement of production factors within the internal market.
26
Which of the statements about the deepening of economic integration in the EU is correct?
Single European Act (1986/1987) is a fundamental treaty, which enabled the start of the Economic and Monetary Union (EMU). (introduction of internal market by 1993)
27
Which of the following statements best describes the short-term objective of the stability and Growth Pact?
The short term objective of the Stability and Growth Pact is fast and efficient elimination of excessive deficit in member states where the deficit exceeds 3 % of GDP.
28
What is the maximum amount of sanctions stipulated by the Excessive Deficit Procedure?
0.5 % of GDP of the member state, which breaks the rules.
29
Common (internal) market is a stage of economic integration characterized by:
Free trade of goods among member states and a common external (customs) tariff towards third countries, free trade of services and free movement of production factors within the internal market.
30
According to Andre Sapir view (2004), the process of EU convergence towards the US (expressed in capita GDP terms) ended in the 1970s due to the following reason:
The development model applied by the EU member states in the previous decades has proved to be obsolete.
31
What do you understand under the term Open Method of Coordination?
It is a policy instrument that was largely used for implementation of the Lisbon Strategy.
32
What is the European Semester?
An annual cycle of coordination of fiscal and economic policies between EU member states that includes regular reporting and definition of member states ‘medium term goals, monitoring implementations of these goals and giving recommendations by EU institutions.
33
The excessive deficit procedure is
a procedure of monitoring violation of the short term objective of the stability and growth pact and gradual application of recommendations and sanctions against the member state, that breaks this rules.
34
When is an EU member state considered to have excessive deficit in the
Excessive deficit procedure (EDP)?
When budget deficit is larger than 3% GDP and the member state is not facing exceptional circumstances.
35
In WTO negotiations, EU member states are represented:
By the EU trade commissioner. (By commission!)
36
What is TRUE about the EU trade flows?
When intra-EU trade flows (among EU member states) are included around 2/3 of EU trade is within European countries and only 1/3 with non- European countries.
37
Who is the main trading partner of individual EU member states?
Other EU member states
38
What is NOT the subject of Article 101 of the Lisbon Treaty
Strengthening of the competition among market players
since it's about practices harming competition
39
Which of the following roles does the EU competition policy NOT play?
c. Advisory role
39
How does the Eurosystem influence EONIA?
By defining the floor, the ceiling and the mid value of the interest rate corridor within which EONIA is freely determined in the market.
40
What is the economic rationale behind the introduction of the fiscal Maastricht criteria (budget deficit and public debt) for admission into the economic and monetary union (EMU)?
High budget deficits and uncontrollable growth of public debt limit government’s access to financial markets, which may lead to monetization of public debt by the central bank and inflation.
41
What is the economic rationale for EU involvement in public finance?
d. Lack of fiscal discipline in national public finance
42
Which of the changed states below is the consequence of the working of automatic fiscal stabilizers?
A fall in Value Added Tax collections due to lower purchasing power during an economic crisis.
43
What are the two main approaches to the process to European Integration?
Federalism and intergovernmental approach.
44
Which of the statements about economic integration is correct?
In general, economic integration is defined as an agreement among countries to reduce and ultimately remove various economic and political restraints to mutual economic cooperation
45
The most frequently used indicators for measuring competitiveness of states includes:
Real effective exchange rate, real growth of per capita income, and indexes based on various variables
46
Which of the statements about the long term dynamic growth effect of economic integration is correct?
The growth effect operates by changing the rate at which new factors of production – mainly physical, human and technological capital – accumulated. Additionally it also operates through faster international diffusion of knowledge/technology.
47
Which of the factors stated below was an obstacle to the development of
common EU energy policy?
Dominant market position of national energy companies.
48
What is the key characteristic of a “directive” as one of the main types of the EU secondary legislation?
It is a mandatory legal act of the EU that only sets out the results to be achieved. EU member states can then decide how to transpose this legal act into national legislation.
49
What is NOT the element of “abusive behavior” under the Article 102 of the Lisbon Treaty (Article 82 pre-Lisbon)?
a. Agreeing on fair purchase prices
is about abuse of a dominant position
50
What is the meaning of fiscal transfers criterion as one of the optimum currency area criteria?
Fiscal transfers between countries can be used to soften the impact of asymmetric shocks by having countries in an expansion phase pay transfers to countries in a recession phase.
51
The main cost of a monetary union is:
Loss of monetary policy autonomy and national exchange rate instrument.
52
What is the meaning of the term “green direct payments” under the Common Agriculture Policy with in period of the 2014 – 2020 multi annual financial frameworks?
EU member states will allocate at least 30 percent of their respective direct payments for achieving environmentally friendly objectives in the area of agriculture
53
What proportion of EU budget funds is allocated for the Common Agriculture Policy with in period of the 2014 – 2020 multi annual financial frameworks?
Around 40 %
54
What is true of EU policies development?
Maintain fixed exchange rates and lead independent monetary policies, if capital is fully mobile.
55
Which of the following areas is NOT a priority for the European regional development financing in the 2014-2020 medium term financial framework?
e. Communal infrastructure, such as water supply, waste water treatment and similar
56
What characteristics of the "new approach" to removal of technical barriers in the internal market?
In the non-harmonized sectors mutual recognition principle applies whereas in harmonized sectors the EU determines essential requirements insuring safety, health and environmental protection. Some products are also subject to detailed harmonization of technical standards.
57
One of the important benefits of a monetary union is:
Reduction of exchange rate risk
58
The main purpose of the preventive arm of the Stability and Growth Pact is to?
Ensure free functioning of automatic fiscal stabilizers up to the allowed budget deficit ceiling (3 % of GDP) through a balanced budget in the medium run
59
What is the average estimate of size of automatic fiscal stabilizers in EU member states?
1% drop in GDP on average leads to a worsening budget balance (deficit or surplus) of 0,5 % of GDP
60
Economic union is a stage of economic integration characterised by:
Free trade of goods, services, capital and labour as well as harmonization of all economics policies
61
Which of the following problems was not a consequence of implementation of the common agriculture policy?
Insufficient food supply
62
What is true of “agglomeration” and “dispersion” forces that are behind the economic logic of emergence of regional development differences?
Agglomeration forces encourage concentration of economic activity in a particular area, while dispersion forces have exactly the opposite effect.
63
The so called impossible Trinity tells us that countries cannot simultaneously:
have fixed exchange rate, free capital flow, and independent monetary policy
64
Which of the following statement is correct:
The European Commission has a mandate to implement the EU Competition policy
65
What is the main purpose of the EU Cohesion policy?
To reduce differences in the level of development between different geographical areas of the EU
66
What is typical of the use of voluntary agreement for achieving environmental policy goals?
The main motivation behind the use of voluntary agreement to achieve environmental policy goals is to establish a good reputation for companies that use these instruments
67
Which four EU member states had been the largest beneficences of the EU cohesion funds in the period before the 2004-EU enlargement (these member states have also been called the “cohesion four”)?
Greece, Ireland, Portugal and Spain
68
What are the priorities of the Cohesion fund financing in the 2014-2020 medium-term financial framework?
Transportation and large environmental infrastructure projects
69
How did the mechanism of price subsidies, used as the main instrument of the Common agriculture policy in the early years of its implementation in the 1960s?
Through fixing the lowest (minimum) prices of different types of agricultural products with the help of variable import levies tied to price fluctuations in the market for agricultural products.
70
What is the number of Eurozone countries since 1 January, 2015?
19 countries
71
What is the primary objective of monetary policy of the Euro system?
Price stability
72
What are the main "sources" of the EU legal system (community law)?
Treaties (primary law), EU laws (secondary law) and decisions of the European Court of Justice
73
A key component of economic analysis, which represents one of the two pillars of the Euro system’s strategy in monetary policy decision making is:
Future output growth forecast
74
Which of the statements below about the removal of tax barriers in the EU correct?
Tax base is harmonized across the EU in case of the value added tax
75
What is determined by the “exclusive competency” in accordance with the Lisbon Treaty”?
Areas where only EU is authorized to adopt legally binding acts whereas the role of the member states is limited to implementing these acts.
76
Which countries are eligible to get funding from the Instrument for Pre-accession Assistance under the 2014-2020 medium-term financial framework?
Western Balkan (without Croatia IPA I), Turkey. NO ICELAND! For IPA II
77
Trade relations between EU and Western Balkan countries are____:
Stabilization and Association agreements which ___other things___the gradual establishment of two-way free trade.
78
The six (deriving force of European integration after the post war time)
Belgium, Luxembourg, Netherlands, Italy, France, Germany.
79
What is the meaning of fiscal transfers criterion as one of the optimum currency area criteria?
Fiscal transfers between countries can be used to soften the impact of asymmetric shocs by having countries in an expansion phase pay transfers to countries in a recession phase.
80
What is determined by the “exclusive competence” in accordance with the Lisbon Treaty?
Areas where only the EU is authorized to adopt legally binding acts whereas the role of member states is to limited to implementing these acts.
81
What is characteristic of the “old approach” to removal of technical barriers in the internal market?
Detailed harmonization in all sectors.
81
Direct effect as a principle of EU law means that:
EU law must be enforced by member states national courts.
82
Grafik
Due to discriminatory liberalisation Home importers divert all their import demand…
83
Economic union is a stage of economic integration, characterized by:
Free trade of goods, services, capital and labor and harmonization of all economic policies.
84
The Excessive deficit procedure is:
A procedure of monitoring violations in the corrective part of the Stability and Growth Pact and gradual application of recommendations and sanctions against the member state that breaks these rules.
85
What is true about the implementation of the Stability and Growth Pact during the COVID-19 crises?
A general escape clause has been activated, allowing for an orderly temporary deviation from the normal preventive and corrective requirements of the Pact.
86
Which statement about the Single Rulebook as a part of the EU banking union is incorrect?
The Single Rulebook determines which banks are direcly supervised by the ECB and which remain under the supervision of national supervisory authorities.
87
Which two EU policies account for approximately three quarters of all EU budget?
Common Agricultural Policy and Cohesion Policy
88
What is NOT true about EU trade flows?
d. Africa and South America represent the main markets for EU exports outside Europe.
89
What is the main purpose of the EU cohesion policy?
To reduce differencies in the level of development between different geographical areas of the EU.
90
Which of the statements based on geographic patterns and trends of economic activity in the EU is incorrect?
At the subnational level, industry has become more dispersed spatially.
91
Which statement about the current Eu competences in the area of trade policy is correct?
EU powers on trade policy extend to intellectual property and foreign direct investment.
92
Who is the main trading partner of individual EU member states?
Other EU member states
93
Zadaca, qd:60-3p…
P=4
94
zadaca
Total imports=17.5;im from partner=15; im from row=2.5
95
What was characteristic of the so called “soft ” period of the European monetary system(ems)?
Monetary policy independence and frequent exchange rate realignments in the exchange rate mechanism(ERM)
96
Which of the following elements is not the subject of the new Eurosystem’s monetary policy strategy from 2021 onwards?
The medium-term inflation target of below but close to two percent
97
Monetary policy in the Euro area in the last few years was characterized by:
Dominat focus on longer term liquidity providing measures to the banks and executions of asset(securities) purchase programmes.
98
How does the Eurosystem influence EONIA?
By defining the floor, the ceiling and the mid value of the inerest rate corridor whitin which EONIA is freely determined in the market.
99
Which of the following statements is correct?
The European Commission has a mandate to implement the EU competition policy.
100
The Maastricht Treaty did not:
Weaken the power of the EP in the decision making process.
101
What is the NextGenerationEU?
A new temporary financial instrument at EU level aimed at effectively addressing the negative consequences of the COVID-19 crises in the Eu MS and financing the long term challenges of the green and digital transitions.
102
According to the fededralist(community) approach to European integration:
National sovereignty is transferred to EU institutions and decision making takes place on common level using qualified majority.
103
What does double materiality reporting refer to?
Reporting of companies in the context of non-financial disclosures where companies must report on the impact of sustainability risks on the company business and the impact of company business on the environment and the society.
104
Zadaca bla bla
Mixed investment fund’s portfolio is 40% aligned with the EU Taxonomy.
105
What is typical of the use of voluntary agreements for achieving environmental policy goals?
The main motivation behind the use of voluntary agreements to achieve environmental policy goals is to establish a good reputation for companies that use these instruments.
106
What was the key feature of the Commpn Agricultural Policy in the period 1983/84-1991/92?
Control of supply of agricultural products based on introduction of complex system of quotas(limitation on productions)
107
What was the main emphasis of the so called Fischler reform of the CAP in 2003?
Introduction of de-coupled direct payments which are not tied to production levels through the area based Single payment scheme.
108
The most frequent used indicatios for measuring competitiveness of states include:
Real effective exchange rate, real growth of per capital income, and indexes based on various variables.
109
grafik
Internal devaluation….
110
Present the three main principles of EU law?
direct effect, autonomy and primacy
111
How does the Eurosystem influence EONIA?
By defining floor, ceiling and the mid value of the interest rate corridor within which EONIA is freely determined in the market?????????????
112
What is the economic rationale behind the introduction of the fiscal Maastricht criteria (budget deficit and public debt) for admission into the EMU?
High budget deficit and uncontrollable growth of public debt limit government access to financial markets, which may lead to monetization of the public debt by central bank and inflation ????????????????
113
What are the main sources of the EU legal system?
the Treaties (primary law), EU laws (secondary), decisions of the Court (case law)
114
Cardiff role in the EU environmental policy?
The concept of environmental mainstreaming by including environmental aspects in all areas of EU policy
115
European Semester
An annual cycle of coordination of fiscal and economic policies between EU member states that includes regular reporting and definition of member states’ medium-term goals, monitoring implementation of these goals and giving recommendations by EU institutions
116
Economic union is a stage of European integration characterized by
free trade of goods, services, capital and labor and harmonization of all economic policies
117
How did the mechanism of price subsidies used as the main instrument of the Common agricultural policy in the early years of its implementation operates?
– Through a system of quotas which determined production levels for individual types of agricultural products/ Through fixing the lowest (minimum) prices of different types of agricultural products with the help of variable import levies tied to price fluctuations in the market for agricultural products.
118
Which problem was occurred when implementing Common agricultural policy
Favorization of big farms and big land…
119
Which reason has been preventing development of true Eu energy?
Dominant market position of a small number of players and state ownership in the energy sector.
120
The indicator for measuring competitiveness of states is
Real effective exchange rate, real growth of per capita income and indexes based on various variables
121
Open method of Coordination was a key instrument for implementing
Lisbon Treaty – policy instrument that was largely used for implementation of Lisbon treaty
122
-Number of countries in the Eurozone since 2015
19
123
Which body makes the key decision about monetary policy in the Eurosystem?
ECOFIN
124
-Non-standard measure by European Central Bank during financial crises?
Not providing additional direct monetary stimulus to the economy but primarily at supporting the effective transmission of its standard policy / Government bond purchases on the secondary market
125
The common purpose of Maastricht convergence criteria is
to reduce risks to price stability
126
In WTO negotiations, member states are represented
by the EU trade commissioner
127
- What is primary objective of monetary policy of the EURO SYSTEM?
price stability
128
A key component of economic analysis which represent one of the two pillars of the Euro system strategy in monetary policy decision making is:
Future output growth forecast
129
-What is the average estimate of size of automatic fiscal stabilizers in Eu member states
1% of drop in GDP on average leads to a worsening budget balance (deficit or surplus) of 5% of GDP
130
This was NOT a consequence of implementation of the common agriculture policy
Insufficient food supply
131
Agglomeration and dispersion forces
Agglomeration encourages concentration of economic activity in a particular way, while dispersion have opposite effect
132
The main purpose of the EU Cohesion policy?
To reduce differences in the level of development between geographical areas of the EU
133
Cohesion 4 countries that had been the largest beneficences of the EU cohesion funds
Greece, Ireland, Portugal and Spain
134
What was a key feature of the common agricultural policy in period 1983/84- 1991/2
Control of supply of agricultural products based on introduction of a complex system of quotas
135
What is the meaning of the term green direct payments under the Common agricultural policy within the period of 2013-2020 multiannual financial framework?
EU member states will allocate at least 30% of their respective direct payments for achieving environmentally friendly objectives in the area of agriculture
136
What constitutes the substantive backbone of the EU cohesion policy in the period 2014-2020?
Europe 2020 Strategy
137
NOT a priority for the European Regional Development fund financing in the 2014-2020 medium-term financial framework?
Communal infrastructure, water supply, waste water treatment …
138
What is the economic rationale for EU involvement in public financing?
The double failure (private market failure and national public finance failure)
139
Two main approaches to the process of European integration?
Federalism and intergovernmental approach
140
-What is not the subject of the Article 101 of the Lisbon Treaty?
Strengthening of the competition among market players
141
Which of the following roles does the EU competition policy not play?
Advisory role
142
What factor was an obstacle to the development of common EU energy policy?
Dominant market position of national energy companies
142
Which of the statement below is correct?
Economic integration is defined as an agreement among countries to reduce and ultimately remove various economic and political restraints to mutual economic cooperation
143
Common internal market is a stage of economic integration characterized by:
Free trade of goods, common external tariff toward third countries, free trade of services and free movement of production factors within the internal market.
144
According to Andre Sapir, the process of EU convergence towards the US ended in 1970 because
The development model applied by the EU member states in previous decades has proven to be obsolete.
145
Impossible trinity tell us the countries cannot simultaneously
Maintain fixed exchange rates and lead independent monetary policies if capital is fully mobile.
145
What is true of EU policies development
Some EU policies have developed outside of the founding treaty provision and have only began formally included in the EU body of law through Treaty changes
145
-The excessive Deficit Procedure is?
A procedure of monitoring violations of the short-term objective of the stability and growth path and gradual application of recommendations and sanctions against the member states that break this rule
146
Consequence of the working of automatic fiscal stabilizers?
A fall in value added tax collections due to lowering purchasing power during an economic crisis
147
What do we find in the monetary analysis?
Forecast of the monetary aggregates
148
What has changed after the Niece Treaty?
255/345 votes, 50% of member states and 62% of population of all EU member states
149
When was Common Agricultural Policy launched?
1962
150
Under whose jurisdiction is the trade policy?
Under the exclusive jurisdiction of the EU
150
Which 2 policies are the main expense of the budget?
Agricultural and Cohesion
150
Which Instrument Eurosystem use?
short-term interest rate
151
How much time the country should keep the exchange rate stable before the entering?
2 years
152
What implies for income per capita for EU MS?
Income gaps have been reduced
153
What is considered to be good established and bad?
Good- Openess of the economy, bad- labor mobilty
154
What is not true about the EU trade flows?
Regional structure of foreign rade is quite different among member states / d. Africa and South America represent the main markets for EU exports outside Europe.
155
What is true about the EU trade flows?
When intra- EU trade flows are included, around 2/3 of EU trade is with European countries and only 1/3 with non-European countries
156
Which countries joined the European Economic Community in 1973?
Denmark, Ireland and UK.
157
Stabilization and Association Agreements (SAA) are agreements between the EU and:
Western Balkan countries
158
What is true for EU policy making?
. Trade policy is an exclusive competency of EU
159
Strategic objective of the Lisbon Strategy adopted in March 2000 was that the EU will:
Become the most competitive and dynamic knowledge-based economy in the world.
160
9. Why can asymmetric shocks impose costs on member states of monetary union?
Because asymmetric shocks increase mobility and hence labour market costs for countries that are affected by asymmetric shock.
161
Which conceptual argument does NOT speak in favour of coordination of fiscal policies on the EU level?
Deficit bias of national fiscal policies
162
Which geographical areas of the EU are entitled to the largest portion of cohesion policy resources from the EU budget?
NUTS – 2 regions with per capita GDP, measured in PPP lower than 75% of the EU average.
163
What are the main legal sources of the EU competition and state aids policy?
The Treaty and the Merger Regulation
164
What do articles 101 and 102 of the Lisbon Treaty (articles 81 and 82 before Lisbon Treaty) speak about?
About Competition Policy principles.
165
What is determined by the “shared competency” in accordance with the Lisbon Treaty?
Areas where both the EU and member states are authorised to adopt legally binding acts but where the EU can only act if the member states have not already exercised their authority.
166
What is the characteristic of the “old approach” to removal of technical barriers in the internal market?
Detailed harmonization
167
What is the transmission mechanism of monetary policy of the ECB?
Procedures used for transmission of centralized decisions of the Eurosystem to decentralized implementation of these decisions through the national central banks (check)
168
Monetary policy decision making in the euro area is _________, while monetary policy implementations is __________.
Centralized/decentralized.
168
What was characteristic of the so called “hard” period of the European monetary system (EMS)?
German monetary policy leadership and stability of exchange rates in the exchange rate mechanism (ERM)
169
Which are the two pillars of the Eurosystem’s strategy in monetary policy decision making?
Economic and monetary analysis
170
What was the common problem of the first two EU emission trading schemes?
Free trade of goods among member states and a common external (customs) tariff towards third countries, free trade of services and free movement of production factors within the internal market.
170
Which of the statements about the deepening of economic integration in the EU is correct?
Single European Act (1986/1987) is a fundamental treaty, which enabled the start of the Economic and Monetary Union (EMU). (introduction of internal market by 1993)
171
What is the maximum amount of sanctions stipulated by the Excessive Deficit Procedure?
0.5 % of GDP of the member state, which breaks the rules.
171
Which of the following statements best describes the short-term objective of the stability and Growth Pact?
The short term objective of the Stability and Growth Pact is fast and efficient elimination of excessive deficit in member states where the deficit exceeds 3 % of GDP.
172
Who is the main trading partner of individual EU member states?
Other EU member states
172
What is the maximum possible penalty for excess deficit? When is deficit procedure implemented with the new rules?
0.5 % of GDP, if it is less then 3% of GDP, and if it the debt is lower then 60%, the country will not be situated in any specific difficult situations
172
Which of the statements about the long term dynamic growth effect of economic integration is correct?
The growth effect operates by changing the rate at which new factors of production – mainly physical, human and technological capital – accumulated. Additionally it also operates through faster international diffusion of knowledge/technology.
172
When is an EU member state considered to have excessive deficit in the Excessive deficit procedure (EDP)
When budget deficit is larger than 3% GDP and the member state is not facing exceptional circumstances.
173
What is NOT the element of “abusive behavior” under the Article 102 of the Lisbon Treaty (Article 82 pre-Lisbon)
Agreeing on fair purchase prices
174
What is the meaning of fiscal transfers criterion as one of the optimum currency area criteria?
Fiscal transfers between countries can be used to soften the impact of asymmetric shocks by having countries in an expansion phase pay transfers to countries in a recession phase.
175
The main cost of a monetary union is:
Loss of monetary policy autonomy and national exchange rate instrument.
176
What proportion of EU budget funds is allocated for the Common Agriculture Policy with in period of the 2014 – 2020 multiannual financial frameworks?
Around 40 %
177
What characteristics of the "new approach" to removal of technical barriers in the internal market?
In the non-harmonized sectors mutual recognition principle applies whereas in harmonized sectors the EU determines essential requirements insuring safety, health and environmental protection. Some products are also subject to detailed harmonization of technical standards.
177
What is true of EU policies development?
Some EU policies have developed outside of the founding Treaty provisions and have been only formally included in EU body of law through Treaty changes.
178
* The main purpose of the preventive arm of the Stability and Growth Pact is to?
Ensure free functioning of automatic fiscal stabilizers up to the allowed budget deficit ceiling (3 % of GDP) through a balanced budget in the medium run
178
One of the important benefits of a monetary union is:
Reduction of exchange rate risk
179
Which of the following statement is correct:
The European Commission has a mandate to implement the EU Competition policy
179
What is the main purpose of the EU Cohesion policy?
To reduce differences in the level of development between different geographical areas of the EU
180
* What is typical of the use of voluntary agreement for achieving environmental policy goals?
The main motivation behind the use of voluntary agreement to achieve environmental policy goals is to establish a good reputation for companies that use these instruments
180
Which of the statements below about the removal of tax barriers in the EU correct?
Tax base is harmonized across the EU in case of the value added tax
180
* What are the priorities of the Cohesion fund financing in the 2014-2020 medium-term financial framework
Transportation and large environmental infrastructure projects
181
Which countries are eligible to get funding from the Instrument for Pre-accession Assistance under the 2014-2020 medium-term financial framework?
Western Balkan (without Croatia IPA I), Turkey. NO ICELAND! For IPA II
182
What is determined by the “exclusive competency” in accordance with the Lisbon Treaty”?
Areas where only EU is authorized to adopt legally binding acts whereas the role of the member states is limited to implementing these acts.
183
Trade relations between EU and Western Balkan countries are _____:
Stabilization and Association agreements which ___other things ___the gradual establishment of two-way free trade.
184
Essay: The Eurosystem follows a clearly defined strategy when making its monetary policy decisions. Explain the purpose of this strategy, present its fundamental logic and describe both pillars which underlie it!
* It follows the Lisbon treaty. the supranatural include "Economic intergration" and "justice and home affiars", the intergovernmental is "common foreign" and "security policy".
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What is true for EU policy making?
. Trade policy is an exclusive competency of EU
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Why can asymmetric shocks impose costs on member states of monetary union?
Because asymmetric shocks increase mobility and hence labour market costs for countries that are affected by asymmetric shock.
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7. Strategic objective of the Lisbon Strategy adopted in March 2000 was that the EU will:
Become the most competitive and dynamic knowledge-based economy in the world.
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Which conceptual argument does NOT speak in favour of coordination of fiscal policies on the EU level?
Deficit bias of national fiscal policies. (correct?)
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11. Which of the following statements is FALSE?
a. Rural development is not an integral part of the Common Agricultural Policy FALSE
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17. What do articles 101 and 102 of the Lisbon Treaty (articles 81 and 82 before Lisbon Treaty) speak about?
About Competition Policy principles.
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. What is determined by the “shared competency” in accordance with the Lisbon Treaty?
Areas where both the EU and member states are authorised to adopt legally binding acts but where the EU can only act if the member states have not already exercised their authority.
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What is the characteristic of the “old approach” to removal of technical barriers in the internal market?
Detailed harmonization
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What is NOT the element of “abusive behavior” under the Article 102 of the Lisbon Treaty (Article 82 pre-Lisbon)
Agreeing on fair purchase prices
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What is the meaning of fiscal transfers criterion as one of the optimum currency area criteria?
Fiscal transfers between countries can be used to soften the impact of asymmetric shocks by having countries in an expansion phase pay transfers to countries in a recession phase.
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The main cost of a monetary union is:
Loss of monetary policy autonomy and national and national exchange rate instrument.
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What is true of EU policies development?
Some EU policies have developed outside of the founding Treaty provisions and have been only formally included in EU body of law through Treaty changes.
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* The main purpose of the preventive arm of the Stability and Growth Pact is to?
Ensure free functioning of automatic fiscal stabilizers up to the allowed budget deficit ceiling (3 % of GDP) through a balanced budget in the medium run
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* One of the important benefits of a monetary union is:
Reduction of exchange rate risk
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What is the main purpose of the EU Cohesion policy?
To reduce differences in the level of development between different geographical areas of the Eu
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How did the mechanism of price subsidies, used as the main instrument of the Common agriculture policy in the early years of its implementation in the 1960-ies?
Through fixing the lowest (minimum) prices of different types of agricultural products with the help of variable import levies tied to price fluctuations in the market for agricultural products.
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* Which of the statements below about the removal of tax barriers in the EU correct?
Tax base is harmonized across the EU in case of the value added tax
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Which countries are eligible to get funding from the Instrument for Pre-accession Assistance under the 2014-2020 medium-term financial framework?
Western Balkan (without Croatia IPA I), Turkey. NO ICELAND! For IPA II
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Trade relations between EU and Western Balkan countries are _____:
Stabilization and Association agreements which ___other things ___the gradual establishment of two-way free trade.
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The basic implementing instrument for Green Deal are
EU legislations and strategies
