Financial Aspects of Adjustment and Transition towards EU Membership: Turkey and Eastern Europe

Author(s):  
P. N. Snowden ◽  
C. Yιldιrιm
Keyword(s):  
Author(s):  
Hans-Jürgen Wagener

This chapter examines institutional transfer, a special form of the knowledge diffusion process and an imitation of best practices that follows the model of the somewhat better-studied technology transfer. Central to the concept is the deliberate reference to a foreign model. The most common motive for institutional transfer is catch-up modernization and the urgent need for developed institutions. There are numerous examples of such transfers: Japan, Turkey, but also postcommunist Eastern Europe, where expectation of EU membership speeded up the transition process. A central problem is the fact that political, economic, and social institutions are embedded in a social context. They correspond to certain social values. Where they are too far apart from the latter transplanted institutions are hardly adaptable.


1999 ◽  
Vol 8 (1) ◽  
Author(s):  
Mária Havrilová

The European Community (EC), in particular, took upon itself the role of the key external player in the political and economic restructuring programs in Eastern Europe. It successfully used a combination of aid packages and advice-giving, to frame its political and economic relations with the countries of Central and Eastern Europe. For their part, the Eastern states, hoping for a quick path to a convertible currency and EU membership, fully embraced the free market philosophy by swallowing the bitter pill of shock therapy, mass privatization and deregulation. The Eastern Europeans have gradually come to a significant twofold realization. First, that membership is not likely to be offered any time soon. And second, that there are significant barriers to the strengthening of ties with the EU. <p> The EU eventually responded to the growing pleas for membership by announcing that the special relationship between Western and Eastern Europe would be assured through association agreements pursuant to Article 235 of the Treaty of Rome. Initially, the EU did not intend to make any reference in the Europe Agreements to future membership of the Association countries. <p> A major indicator in the Europe Agreements, which highlights the EU's fundamental concern over its own interests rather than assisting Eastern Europe in the transition process, are the trade provisions. In essence, these maintain significant, potentially long-term barriers to trade between the EC and the East, particularly in sensitive sectors such as steel, textiles and agriculture. A second obstacle to the Associate countries' accession are the relatively weak institutional links created by the Europe Agreements. Convergence of laws is another important condition which needs to be satisfied before membership is granted to the Eastern European applicants. The present approach excludes the Eastern Europeans from exemption from the EU's anti-dumping law; it shuts them out of most of the EU's decision making; and it limits the effectiveness of their attempts to harmonise their legislation with the EU. Taken collectively, it seems certain that these exclusions will seriously restrict the Associates' prospects of rapid integration into the EU. <p> The compromise may involve complicated negotiations between member states and also with potential applicants.


1999 ◽  
Vol 17 (2) ◽  
pp. 191-211
Author(s):  
Gaetana Trupiano

Abstract This paper analyzes the new tax structure and tax incentives of the most advanced countries of Eastern Europe which have been considered, initially, as suitable candidates to join the European Union (Hungary, Poland and Czech Republic). Preferential tax treatment for foreign investors has gradually been modified in the prospect of full EU membership. These Eastern countries have also carried out important tax reforms in relation with the policy of co-ordinating corporate taxes in EU.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sasa Randjelovic

PurposeThis paper evaluates the economic, political and institutional determinants of variation in public investment in emerging Europe.Design/methodology/approachPanel econometrics (panel-corrected standard error, generalized least squares and the two-stage least squares) methods have been applied using annual data from 2000 to 2017 for 16 countries from Central and Eastern Europe (CEE).FindingsPublic investment was procyclical in relation to output and negatively associated with the level of public debt. Austerity episodes triggered a significant drop in public investment. Positive drifts in public investment during election periods and the negative impact of the number of cabinet seats held by left-wing parties have been captured. While no firm evidence on the impact of EU membership was found, the results show that arrangements with the IMF were strongly associated with lower public investment. Political factors were of greater importance in Central Europe and the Baltics, while institutional factors had a more significant impact in South Eastern Europe.Practical implicationsTo foster public capital formation, it is necessary to: 1) strengthen the countercyclicality of public investment policy and to keep public debt at a low level; 2) adjust the fiscal criteria for EU membership in a manner that would enable countries to use the EU structural fund more effectively, while maintaining fiscal sustainability; 3) put a stronger emphasis on structural features of fiscal policy when designing country-level arrangements with the IMF.Originality/valueThe paper contributes to the literature on determinants of public investment policy by adding empirical evidence for emerging Europe countries.


2021 ◽  
Vol 71 (1) ◽  
pp. 1-32
Author(s):  
Małgorzata Iwanicz-Drozdowska ◽  
Bartosz Witkowski

AbstractIn this paper, we analyse the determinants of credit growth for banks operating in 20 countries in the post-communist Central, Eastern and South-Eastern Europe (CESEE). We focus on foreign-owned banks and the parent-subsidiary nexus against the background of all banks operating in this part of Europe. Our goal is to determine whether the macroeconomic and bank-specific determinants for host countries have a similar impact on the entire group of banks operating in CESEE and on its subset of foreign-owned banks and whether the rate of credit growth could be considered ceteris paribus equal across the foreign-owned and the complete set of banks in the CESEE. To this end, we use panel data regressions on approximately 4,600 bank-year observations over the period from 1995 to 2014. We conclude that the determinants of banks’ behaviour in the CESEE countries are consistent regardless of these banks’ ownership, the period and their EU membership. Although having a foreign investor expands the set of relevant determinants, the presence of such investors does not overshadow the importance of local conditions.


2016 ◽  
Vol 4 (1) ◽  
pp. 1-10 ◽  
Author(s):  
Christine O'Hanlon

Multiculturalism is an established feature of the UK and other European States since the establishment of the Treaty of Rome in 1959. Enlargement has brought EU membership from six (1952) to twenty eight members since its foundation, and allowed free migration across its borders. However, many countries, in spite of agreements to adhere to ‘democratic’ practices, deny minority citizens their full rights, particularly in education contexts. Some recent accession EU States have education systems that are less adaptive to expected policy responsibilities. It is a more unstable aspect of Eastern Europe because of the failure of many of these countries to reduce social and educational inequalities and to establish rights for minority groups, particularly the Roma. An educational focus is used as a platform to highlight issues re the segregation, and discrimination against, Roma children in Europe, typically through the use of special education, which is not suitable for them. Europe generally, both East and West has failed to fully integrate the Roma. Often, institutional blame is placed on Roma communities, rather than situate them socially and economically due to ingrained structural inequalities. Stereotyped categories are often used to ‘label’ them. Countries with high Roma populations, four in Western and five in Eastern Europe are evaluated and compared in relation to the education of Roma children.


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