The history of the world economy - Polyak GB

29.3. integration Processes

Integration. European Union

By the end of the Second World War, in 1944, it began to be implemented in Europe the idea of ​​European economic integration. The first attempt was in exile in London, a decision the Governments of Belgium, the Netherlands and Luxembourg, on the establishment of a January 1, 1948 the Customs Union, subsequently known as the Benelux. The parties also expressed their desire to further transform the Union into an economic type by Belgium-Luxembourg Economic Union, which existed from 1921 in 1949-1950. We were lifted restrictions on imports of industrial products, and by the mid-50s in the framework of Benelux were free to apply labor and capital. Experience the Benelux has been successful, he had followers.

In March 1948, their example was followed by France and Italy, have formed a customs union Fransital. At the same time the United States and Great Britain, made a decision on international control of heavy industry in Germany, have established an international administration, which included not only representatives from the US and UK, but also from France, Germany and the Benelux countries. As we see in Western Europe in the second half of the XX century interstate relations are beginning to grow in the international economic integration.

Ekonomicheskie unions in Europe

International economic integration - a process of economic and political union of countries based on the sustainable development of deep relationships and the division of labor between the national economies, the interaction of their reproductive structures at various levels and in various forms.

Officially, up to November 1, 1993 leading integration grouping of Western European countries called the European Community (EC), as it appeared after the merger in 1967. The bodies of the three previously separate regional organizations:

1) European Coal and Steel Community (ECSC). April 18, 1951, France, Germany, Italy and the Benelux countries signed the Paris Agreement on the establishment of a July 25, 1952 the organization;

2) European Economic Community (EEC). March 25, 1957, France, Germany, Italy and the Benelux countries signed the Treaty of Rome, provides for the creation of a January 1, 1958 the EEC and the European Atomic Energy Community (Euratom). Since 1973, the EEC entered the United Kingdom, Ireland, Denmark, in 1981 - Greece 1986 - Portugal and Spain, since 1995 - Sweden, Austria, Finland;

3) European Free Trade Association (EFTA). Signed the Stockholm Convention January 4, 1960 seven countries in Europe: Britain, Norway, Sweden, Denmark, Austria, Switzerland and Portugal. In October 1991, the EU and EFTA countries reached an agreement on the establishment of the European Economic Area (EEA), which brings together 19 countries from the Arctic to the Mediterranean. EFTA countries - the main trading partner of the EU (accounting for 27% of exports and 35% of EU imports).

January 22, 1973 Norway left the community after the majority of the population of this country in a referendum November 26, 1972 were against this action.

The Treaty of Rome in 1957 was only a skeleton, which was supposed to be filled with concrete solutions and initiatives. By itself, it was a chronological diagram divided into three stages. The first stage included a period of 12 years, the elimination of customs duties and establishment of a common external tariff. This process has been so successful that the customs union has been issued ahead of schedule - July 1, 1968

Creating a customs union led to the emergence of a series of specific European institutions: the European Commission and the Council of Ministers in Brussels, the Court of Justice in Luxembourg and the European Parliament in Strasbourg.

After creating a customs union and the harmonization of policies in the economic field, the Treaty of Rome provided for the second stage of full economic integration. Economic integration is the existence of a customs union, as well as ensuring the "four freedoms of movement": goods, services, capital and labor, ie, the formation of a single market without borders with coordinated macroeconomic policies... The formation of the single market inevitably pushes the country to the introduction of the single currency.

The basis for this process was the Common Agricultural Policy (CAP), adopted after long negotiations only in 1967, the CAP was financed by the European Fund for Agricultural guarantees and orientation (EVSGO), established in 1962 by member states contributions, subsequently supplemented and own resources fund. The Fund has proved to be the high costs associated with providing "support price" to buy up the surplus on the market. More funds demanded and long-term financing of agricultural structural policy of the Community, the aim of which was a long-term strategy and the development of European agriculture, along with short-term price support policy. Monetary policy and inflation, developing differently in different countries, upsetting the system of agricultural market.

Even more problems between the members of the Community in the transport sector. It took great effort to regulate the market of transport services.

A more fruitful were efforts to establish the overall budget of the Community. In 1977, it amounted to 0.7% of the GNP of the EEC countries. Proceeds went into it, and from import duties and contributions to the CAP and of the direct payments the Member States, as from 1 January 1979, 1% of the value added tax was transferred to the budget of the EU.

90s were marked by a new extension of the EEC, primarily due to the countries of the European Free Trade Association. Since 1994, the European Economic acts of the EU-EFTA area. On the basis of the European agreements associated with the EU is now also Eastern and Central European countries.

According to EU experts, the benefits of an integrated economic space can fully express themselves, provided the parallel creation of the monetary union. Economic and Monetary Union also pass through several stages of development. The first is provided by the operation of the single market, on the second stage of policy coordination has gradually led to the convergence of the main economic indicators, and only in the third phase introduced the single currency and a single central bank is formed.

From November 1993 entered into force on the Maastricht Treaty establishing the European political, economic and monetary union - European Union (EU), the agreement on creation of which was signed in 1992. The main provisions of the agreement provides for the introduction from 1 January 1999 the euro single currency , development of a common foreign policy, increasing the role of the European Parliament in the field of security cooperation, immigration, asylum, as well as the introduction of European citizenship. The basis of the Maastricht Treaty is a program of the internal market, basically completed by 1993

The EU has developed criteria to be met by countries intending to move to the single currency. Legally defined and financial resources in the form of so-called convergence of the Fund. In addition, a legally issued process of macroeconomic policy coordination. On January 1, 1994 are approved by the EU "Guidelines for Economic Policy" Council, to be followed by all countries - members of the Community.

Thus, Western Europe made a significant step towards economic and political integration in some form Maastricht formed as real Western European confederation.

EU unites 6% of the world population, 340 million. Inhabitants living on an area of ​​327 million. Km2.

It produces more than the United States. Its industrial output is 90% of the pan-European production. From 1 January 1999, eleven EU countries have moved to the single European currency Euro (except Great Britain, Belgium, Sweden and Greece). The EU has eleven official languages. The most important role the EU plays a small triangle of Germany, France, England.

The North American Free Trade Association

Another practical example of international integration is the North American Free Trade Association (NAFTA). In 1992 an agreement was signed between the US, Canada and Mexico to create a common North American market, which came into force on January 1, 1994

The agreement provides for the gradual reduction and the end of the century, the total elimination of tariff barriers in mutual trade. But even before the emergence of NAFTA, this trade was pretty intense. Canada-first, and Mexico, the third largest US market (in second place - Japan). Especially rapidly progressing relationship between the US and Mexico, for example, from 1987 to 1992. US exports to Mexico increased by an average of 23% per year. In 1992, Mexico was the second largest consumer of industrial goods from the United States.

If we analyze the essence of the main provisions of the agreement and to compare them with the EU documents, it is clear: not only dismantled trade barriers, NAFTA paves the way for the creation of a single continental market for the free movement of goods, services, capital and labor. The process of "growing" the interpenetration of big capital in the whole territory of the North American continent. In this sense, the continent has become one of the three economic centers, able to dominate the other two centers of power (Western Europe and Japan).

Currently, intensified activities of the Asia-Pacific Economic Cooperation, the Japanese viewed the policy of creating a kind of Asian common market, there are negotiations on the establishment of an East Asian economic community.

Review Questions

1. Describe the situation of Western Europe after World War II.

2. What are the similarities of economic policies of Margaret Thatcher and Ronald Reagan?

3. Explain the reasons for high rates of the German economy.

4. Explain the reasons for the qualitative growth of the Japanese economy.

5. Describe the problems and prospects of European integration.