European Economy

Code:

FLUP0721

Acronym:

ECE-EE

Instance: 2006/2007 - 1S

Active?	Yes
Responsible unit:	Department of Germanic Studies
Course/CS Responsible:	European Studies: Languages and International Relations

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
EE	29	Official Study Plan - LEE	4	2,5	5	-
EELRI	0	Official Study Plan - LEELRI	4	2,5	5	-

Objectives

This subject aims at providing students with a solid understanding of the economic issues underlying European integration.
Students will analyze the principles of European Economy, going over the key issues and main features of its creation, evolution and implementation.
The subject contents, consisting in the theoretical and, at the same time, empirical features of the subject matter, comprise the following topics: European integration; the Single European Market (SEM) as regards products (goods and services); the SEM as regards factors of production (people and capital); backup policies of the Single European Market; the Economic and Monetary Union; the European Union enlargement and its economic impact; and a reflection on the future of Europe.

Program

1. Introduction
1.1. Nature, object and methodology of the subject
1.2. Justification of the importance of the subject in the course curriculum
1.3. Presentation of basic bibliography

2. The European Union
2.1. Brief Historical Overview of the European Integration process
2.2. EU Institutions: structure and roles
2.3. Theoretical foundations of the economic integration
2.3.1. Concept
2.3.2. Advantages and Obstacles
2.3.3. Forms

3. Fundaments of European Economy
3.1. The Single European Market
3.1.1. Characteristics
3.1.2. The Customs Union
3.1.3. Free movement of production factors

3.2. Main EU Policies
3.2.1. Common Agriculture Policy
3.2.2. Regional Policy
3.2.3. Common Trade Policy
3.2.4. Competition Policy
3.2.5. Industrial Policy
3.2.6. Other Policies

3.3. Economic and Monetary Union (EMU)
3.3.1. Historical evolution of monetary integration
3.3.1.1. The Treaty of Rome and early debates
3.3.1.2. From the Community “Snake” to the European Monetary System
3.3.1.3. European Monetary System (EMS)
3.3.2. EMU: aims, phases of construction, convergence criteria, costs and benefits
3.3.3. Stability and Growth Pact
3.3.4. EMS II
3.3.5. Institutional aspects of the EMU
3.3.5.1. Before 1999
3.3.5.2. After 1999: the European System of Central Banks (ESCB); the European Central Bank (ECB)
3.3.4. EMU’s impact in the design and implementation of the economic policy: budget discipline and coordination; fiscal harmonization

4. EU Enlargement
4.1. Background and accession criteria
4.2. Areas of impact: trade; FDI; labour mobility; geopolitical considerations

5. The Future of Europe: Challenges and Prospects
5.1. European Constitution and institutional architecture
5.2. Security, Defence and Political Importance: the ESDP issue
5.3. Democratic legitimacy and participation; problems and potential solutions
5.4. EU Budget: evolution, components and main challenges
5.5. Other relevant issues

6. General Overview/of the Subject

Main Bibliography

Artis, M. J. and F. Nixson (ed.) (2001), The Economics of the European Union, Oxford University Press.
Baldwin, Richard E. (1997), Towards an Integrated Europe, 2ª ed., London, CEPR.
Baldwin, Richard E. e C. Wyplosz (2003), The Economics of European Integration, Maidenhead: McGraw-Hill.
Buti, Marco (ed.) (2003), Monetary and Fiscal Policies in the EMU, Cambridge, University Press.
Dent, Christopher M. (1997), A Economia Europeia: O contexto global, Lisboa, Instituto Piaget.
Dyker, David (eds.) (1992), The European Economy, London, Longman.
El-Agraa, Ali M. (2001), (editor), The European Union: Economics and Policies, 6ª Edição, Harlow (Essex), Pearson Education.
Faugère, Jean-Pirre (1999), Économie Européenne, Paris, Dalloz.
Holland, Stuart (2004), Europe in Question: Constitution, Cohesion and Enlargement, Nottingham, Spokesman.
Harrop, Jeffrey (1992), The Political Economy of Integration in the European Community - Edward Elgar Publishing Ltd, Second Edition.
Kenen, Peter (1995), Economic and Monetary Union in Europe: Moving Beyond Maastricht, Cambridge University Press.
Jones, Rober A., The politics and economics of the European Union: an introductory text, 2nd ed., Cheltenham, Edward Elgar, 2001.
Lopesw, António Calado (2004), O alargamento e a economia da União Europeia, Lisboa, Tribuna.
McDonald, Frank and Stephen Dearden (eds) (1999), European Economic Integration, London, Longman.
Molle, Willem, The economics of European integration: theory, practice, policy, 4th ed., Aldershot, Ashgate, 2001.
Pelkmans, Jacques, European integration: methods and economic analysis, Harlow, Longman, Heerlen, Open University of the Netherlands, 1997.
Porto, Manuel (2001), Teoria da Integração e Políticas Comunitárias, 3ª edição, Coimbra, Livraria Almedina.
Proença, Manuela (1997), O processo de convergência da economia portuguesa face à União Europeia - áreas de vulnerabilidade, Lisboa, Departamento de Prospectiva e Planeamento.
Robson, Peter (1985), Teoria Económica da Integração Internacional, Coimbra, Coimbra Editora.
Robson, Peter (1998), The Economics of International Integration, London, Routledge.
Sapir, André et al (2004), An Agenda for a Growing Europe, the Sapir Report, Oxford University Press.
Silva, Aníbal Cavaco (1998), Portugal e a Moeda Única, Lisboa, Editorial Verbo.
Tsoukalis, Loukas (1993), The new European Economy: the politics and the economics of integration, Oxford University Press.
Sweet, Alex Stone; Sandholtz, Wayne (1998), European Integration and Supranational Governance, Oxford University Press.

Complementary Bibliography

EU Brochures on each of the economic policies mentioned above.

Teaching methods and learning activities

Theoretical classes: Lectures
Practical classes: analysis and discussion of texts/articles related to the topics of study.
Oral presentation of assignments carried out by the students.

Software

No specific software is required.

Evaluation Type

Evaluation with final exam

Eligibility for exams

Pass mark in the final exam.

Calculation formula of final grade

Mark obtained in the final exam.

Examinations or Special Assignments

Optional research paper.

Special assessment (TE, DA, ...)

For ERASMUS students: written and oral presentation of a research paper on one of the topics of study.

Classification improvement

Final exam in the resit exam period.

Observations

Language of instruction: Portuguese