ECONOMIC INTEGRATION & EUROPEAN UNION

PRESENTED BY LAVINA NACHLANI - 68

WHAT IS ECONOMIC INTEGRATION ?

Economic integration can be defined as a kind of arrangement where countries get in agreement to coordinate and manage their fiscal, trade, and monetary policies in order to be mutually benefitted by them.

KINDS OF ECONOMIC INTEGRATION

Economic union

Common Markets

Custom Unions

Free Trade Areas

FOUR KINDS (STAGES) OF ECONOMIC INTEGRATION

FTA (free trade area):

no internal tariffs among members, but each country imposes its own external tariffs to the third country. NAFTA (North America Free Trade Agreement AFTA (ASEAN Free Trade Area) EFTA (European Free Trade Area)

Customs union:
no internal tariffs and common external tariffs, uniform commercial policy formed jointly Mercosur (Southern Common Market), CACM (Central American Common Market)

FOUR KINDS (STAGES) OF ECONOMIC INTEGRATION

Common market:
free movement of products and factors (resources), which is customs union plus factor mobility EU (European Union previously EEC)

Economic union:
common market plus common currency coordination of fiscal and monetary policy EMU (Economic and Monetary Union)

ECONOMIC INTEGRATION

BENEFITS
Progress in trade.
Ease of agreement.

DRAWBACKS
Creation Of Trading Blocs Trade Diversion National Sovereignty:

Improved political cooperation.

EUROPEAN UNION

What is the EU ?
A family of 27 European countries

EUROPEAN UNION
27
Member States

Combined population of EU Member States

490
million

Shared values: liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law. Largest economic body in the world. Worlds most successful model for advancing peace and democracy. A unique institution Member States voluntarily cede national sovereignty in many areas to carry out common policies and governance.

Percent of worlds population Percent of global GDP

30

Worlds most open market for goods and

commodities from developing countries

55

Percent of combined worldwide Official Development Assistance

The EU HEADQUARTERS

Brussels, Belgium Selected as the headquarters of the European Union because of its centralized location in Europe.

ORIGIN OF THE EU

First successful regional organization (1957) European Economic Community (EEC) EEC became European Community (EC) (1986) EC became European Union (EU) (1993)

STRUCTURE OF THE EUROPEAN UNION

European Council Court of Justice Council of Ministers European Parliament European Commission

The EU is run by five institutions, each playing a specific role:

European Parliament
elected by the peoples of the Member States

Council of the Union

composed of the governments of the Member States

European Commission
driving force and executive body

Court of Justice
compliance with the law

Court of Auditors
sound and lawful management of the EU budget

OBJECTIVES OF THE EU

Its principal goal is to promote and expand cooperation among member states in economics, trade, social issue, foreign policy, security, defense, and judicial matter.

1.

EU has sought out to meet its objective in three ways:

By defining a common commercial policy. By reducing economic differences between its richer and poorer members. By stabilizing the currencies of its members.

2.
3.

ACTIVITIES OF EU

Elimination of custom duties, quantitative restrictions with regard to export & imports. Establishment of a common custom tariff & commercial policy. Abolition of all obstacles for movement of persons, services & capital. Application of programmes in order to coordinate the economic policies.

The uro
In 1999, the euro area was established as a currency in eleven of the then fifteen EU Member States. Of the 27 EU Member States today, fifteen have adopted the euro. One of the striking benefits of a single European currency are low interest rates due to a high degree of price stability. The euro is as stable and credible as the best-performing currencies previously used in the euro area countries.

EUROPEAN CENTRAL BANK

The European Central Bank (ECB) is the central bank for Europe's single currency, the euro. The ECBs main task is to maintain the euro's purchasing power and thus price stability in the euro area.

The euro area comprises the 15 European Union countries that have introduced the euro since 1999.
The ECB operates independently from Member State governments.

The euro was introduced in 1999

ADDRESSING GLOBAL CHALLENGES

Peace & Security Works for global peace and security alongside the United States and multilateral organizations including NATO and the United Nations. Undertakes humanitarian and peacekeeping missions and has provided military forces for crisis management around the globe. Counterterrorism & Homeland Security Taken steps to improve intelligence sharing, enhance law enforcement and judicial cooperation, curtail terrorist financing. Boosts trade and transport security to support the struggle against terrorism.

ADDRESSING GLOBAL CHALLENGES

Democracy & Human Rights Works globally for free elections and open democratic processes. Fights racism and intolerance at home and abroad. Campaigns globally against capital punishment. Development Assistance & Humanitarian Relief The EU and its Member States are the worlds largest aid donor, providing 55% of total official development assistance. Provides billions of dollars in humanitarian aid to more than 100 countries in response to crises and natural disasters.

ADDRESSING GLOBAL CHALLENGES

Environmental Protection

A leader in global efforts to protect the environment, maintaining rigorous and comprehensive systems at home.
Plays a key role in developing and implementing international agreements, such as the Kyoto Protocol on Climate Change. Executing a cap and trade system to reduce greenhouse gas emissions

Takes the lead in the fight against global warming with the adoption of binding energy targets (cutting 20% of the EUs greenhouse gas emissions by 2020).

AGRICULTURE
CAP Common Agricultural Policy

GREEN RATE support price is converted into national price at the Green Rate Free movement of Agricultural products from one country to another. EEC has achieved self sufficiency in Agriculture.

FISHERIES - CFP Common Fisheries Policy

Conservation of fish stocks Aid to fishing industry to cope with changing circumstances

Monitor supply and demand for fish

Negotiate with non-EU members on fishing issues

THANK YOU