The Economics of European Integration: System Competition versus Harmonization

Dossier / Travail , 2002 , 21 Pages , Note: 1,3 (A)

Economie politique - Relations économiques Internationales

The process of European Integration, especially the economic perspective of these fascinating developments is the main issue of this seminar paper. The decisive questions leading through the analysis are the following: which approaches to economic integration exist, which one of them has been, is and will be dominant in the respective European Integration process and whether the current framework is appropriate for the future, always in mind the further enlargement towards a European Union of 25 or even 27 member states. I structure my analysis into mainly three parts, namely the underling theory, an empirical analysis and an outlook for the future. The emphasis is clearly on the first two parts, which are based on an economical perspective of integration processes. I present the underlying theory of economic integration, namely the two approaches to it, System Competition and Harmonization at first. Afterwards, an overview of the process of European Integration is provided, always in mind the perspective of economic integration and therefore the ongoing battle of the two approaches to gain more importance in the process. While doing so, I analyse phases or stages in which one of these approaches has been increasingly dominant in the integration process and try to analyse why this special pattern has occurred. At the end of my paper, I combine the economic perspective to integration with a more general, but interesting concept to integration processes, which could help to overcome the increasing stagnation tendencies in European Integration that is one of the main findings of my earlier analysis. Although this Concept, named Differentiated Integration provides one with extensive measures to reform the integration process, I limit the perspective to mostly the changes and proposals with importance to economic integration as this is the core issue of this paper. Thus, the final presentation of reform proposals is less focused on how the European Union as a final Political Union could look like in the far future, but more on how to overcome stagnation tendencies and gain dynamic impulses again with more technically orientated middle-term actions.

Inhaltsverzeichnis (Table of Contents)

• I1. Introduction
• 2. Approaches to Economic Integration
  • 2.1. Competition-based integration
  • 2.2. System competition
  • 2.3. Harmonization
• 3. The process of the European Integration
  • 3.1. The Treaty establishing the European Community.
  • 3.2. The basic rights as a driving force towards System Competition...
  • 3.3. Acts of Centralisation and Constitutional Displacement........
• 4. The Concept of Differentiated Integration
• 5. Conclusion
• Glossary

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This seminar paper focuses on the economic aspects of European Integration. It explores the different approaches to economic integration, specifically System Competition and Harmonization, examining their roles in the European integration process. The paper also analyzes the historical development of European integration, considering how these two approaches have gained prominence at different stages. Additionally, it introduces the concept of Differentiated Integration as a potential solution to address stagnation tendencies within the European integration process. The key themes of the paper include:

• Different approaches to economic integration, particularly System Competition and Harmonization.
• The historical development of European integration and the prominence of different approaches over time.
• The concept of Differentiated Integration as a means to address stagnation in European integration.
• The economic consequences of market integration and System Competition.
• The role of national regulatory frameworks and their impact on economic activity.

Zusammenfassung der Kapitel (Chapter Summaries)

I1. Introduction

The introduction sets the stage for the paper by outlining its main objectives and structure. It highlights the importance of understanding the economic aspects of European Integration and explores the central question: which approach to economic integration has dominated and will continue to shape the process. The introduction also outlines the paper's three main sections: the underlying theory, an empirical analysis, and an outlook for the future.

2. Approaches to Economic Integration

This chapter delves into the two main approaches to economic integration: competition-based integration and harmonization. It examines the core arguments and assumptions behind each approach, emphasizing their differing views on the role of national regulatory frameworks and the importance of supranational institutions.

2.1. Competition-based integration

This section focuses on the concept of market integration, outlining its main principles and arguing for its role as a necessary precondition for System Competition. The chapter highlights the benefits of a common market, including increased trade, efficiency gains, and economic growth.

2.2. System Competition

This section delves into the concept of System Competition, describing it as the institutional dimension of competition-based integration. It examines the rationale behind System Competition, highlighting the role of cross-border factor movement and the importance of regulatory competition. The section also underscores the assumptions underpinning System Competition, emphasizing its role as a discovery procedure and its inherent control mechanism.

2.3. Harmonization

This section analyzes the approach of harmonization, presenting it as a process of standardizing national jurisdictions to establish a common institutional framework across the integrated zone. It emphasizes the role of harmonization in facilitating the establishment and functioning of a common market.

3. The process of the European Integration

This chapter examines the historical development of European integration, specifically analyzing the evolution of economic integration and the changing prominence of different approaches over time.

3.1. The Treaty establishing the European Community.

This section examines the role of the Treaty establishing the European Community in shaping the initial stages of European integration, exploring the interplay of different approaches and the evolving role of supranational institutions.

3.2. The basic rights as a driving force towards System Competition...

This section analyzes the impact of basic rights on the European integration process, exploring their role in promoting System Competition and influencing the evolution of regulatory frameworks.

3.3. Acts of Centralisation and Constitutional Displacement........

This section examines the significance of centralizing acts and constitutional displacement in the European integration process, highlighting their role in shaping the balance of power between national and supranational institutions and influencing the dominance of different integration approaches.

4. The Concept of Differentiated Integration

This chapter introduces the concept of Differentiated Integration, outlining its potential to address the challenges of stagnation within the European integration process. The chapter explores how this approach can promote flexibility and adaptability while maintaining the core principles of economic integration.

Schlüsselwörter (Keywords)

The central focus of this paper lies on the economic aspects of European integration, specifically examining the competing approaches of System Competition and Harmonization. The paper analyzes the historical development of European integration, highlighting the evolving prominence of these two approaches. In addition, the paper introduces the concept of Differentiated Integration as a potential solution to address stagnation within the European integration process. Key concepts covered include: market integration, free factor movement, regulatory frameworks, institutional arbitrage, cross-border factor movement, and the establishment of a common market.

• Université: University of Göttingen (Economics Seminar)
• Cours: European Integration and EU-Enlargement
• Note: 1,3 (A)
• Auteur: Nils De Rop (Auteur)
• Année de publication: 2002
• Pages: 21
• N° de catalogue: V21484
• ISBN (ebook): 9783638250962
• Langue: anglais
• mots-clé: Economics, European, Integration, System, Competition, Harmonization, European, Integration, EU-Enlargement