Economic Integration Efforts of Europe Sarah Calzia 12/02/2015

After the Berlin Wall came down I visited that city and I will never forget it. The abandoned checkpoints. The sense of excitement about the future. The knowledge that a great continent was coming together. Healing those wounds of our history is the central story of the European Union. David Cameron

Economic Integration

Economic Integration an economic arrangement between different regions marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. Objective: Increase Welfare Goals: (1) Reduce costs for both consumers and producers, and (2) increase trade between the countries taking part in the agreement

Levels of Integration: Free Trade Area Customs Union Common Market Economic Union Political Union

European Union

Brief History created by the Maastricht Treaty on November 1st, 1993. political and economic union between various European countries which makes its own policies concerning the members’ economies, societies, laws, and to some extent, security. not created in one go by the Maastricht Treaty, but was the result of gradual integration since 1945, an evolution when one level of union has been seen to work, giving confidence for a next level.

History Contd. Europe’s post war nations weren’t after just peace, they were after solutions to economic problems A key problem was raw materials being in one country and the industry to process the materials in another. Treaty of Paris Signed by 6 neighboring nations: Germany, Belgium, France, Holland, Italy, and Luxembourg

Evolution to the EU Various conditions and events slowed the progression and development of the EU until the Maastricht treaty was signed The change was to broaden the work of the supernational bodies, based around three pillars: the European Communities, giving more power to the European Parliament; a common security/foreign policy; involvement in domestic affairs of member nations on “justice and home affairs” creation of a single currency

Treaty of Lisbon installed an EU president and Foreign Minister, as well as expand the EU’s political power. took effect because voters were concerned about the economic effects of not passing it

The “Sick Man of Europe”

The Greece Drama OCED predicts unemployment will hover around 25 percent throughout 2015 Household incomes have dropped by one third public debt has exceeded 175 percent of Greece’s GDP Greece ran large deficits and lived off borrowing money from the outside world

The Drama Continues… Greek Parliament failed to agree on a president after three rounds of voting. Greeks would then take to the polls What’s at Stake? How Greece will adhere to the current austerity regime Syriza: the Greek Opposition Party

Potential Consequences Speculations that the Eurozone might fall apart Restructuring the Debt Level Political Contagion

So yeah…..