scholarly journals Economic convergence on different spatial levels: the conflict between cohesion and growth

2006 ◽  
Vol 64 (1) ◽  
pp. 18-27 ◽  
Author(s):  
Hans Kramar

Abstract The analysis of economic disparities within the European Union strongly depends on the regional level considered. Whereas the economic gap between the member states has decreased over the last decades, regional disparities have rather deepened. The reason for these contradictory findings can be found in the increasing disparities within many of the member states: Especially in growing economies the gap between urban centres and rural peripheries tends to widen. The spatial concentration of research and development, high skilled labour, infrastructure and foreign investment in the capitals will therefore supposably become a big challenge for the accession countries, which will have to face increasing international competition. Joining a common market of more than 450 million people means new opportunities, challenges and threats for economic development, which have to be faced by local, regional and national governments as well as by European institutions. EU-policies act in the dichotomy between the conflicting goals of economic growth and cohesion. Since they strongly influence regional conditions for production it is of great political interest whether a certain measure fosters economic efficiency by favouring the highly developed centres or rather enhances convergence by promoting lagging regions. The answer is, however, not trivial and needs closer examination: Measures encouraging regional cohesion on the European level can also increase disparities within a state or a region at the same time. This is the reason why the regional effects of EU-policies have to be analysed on different spatial levels. Dealing with the spatial impacts of various European Policies (Regional Policy, TransEuropean Networks, Common Agricultural Policy, Research and Technological Development Policy) there is some evidence that these policies try to compensate the effects of growing competition in the common market by concentrating their efforts on urban growth poles within the underdeveloped countries. Doing that, the European Union comes up to the two conflicting goals of growth and cohesion by promoting efficient economic development in the member states on the one hand and regional convergence on the European level on the other. This approach is of course mainly directed at European objectives and brings about new problems for the member states: According to the principle of subsidiarity the growing divergence within the member states is, however, not a policy task of the European Union but of the member states: Therefore national politics are still required to take on responsibility for these intranational problems by adopting their transport, regional and economic policies to the new challenge.

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3765
Author(s):  
Jarosław Brodny ◽  
Magdalena Tutak ◽  
Peter Bindzár

The global economic development is, to a great extent, dependent on access to large amounts of cheap energy sources. The growing social awareness of ecology and the enormous damage to the Earth’s ecosystem due to the production of energy from conventional sources have forced fundamental changes in the energy sector. Renewable energy is considered to be an opportunity for such changes. The current state of the art allows such changes to be made without restricting economic development. Therefore, activities related to the energy transition are being taken all over the world. The European Union has definitely managed to achieve the most tangible effects in this regard. This article presents the findings of the research aimed at presenting the current state of renewable energy in the European Union and analyzing the changes reported in this sector in the last decade. The research was carried out using a selected set of 11 indicators characterizing renewable energy in individual countries. These indicators were selected on the basis of literature review and own studies of the state of renewable energy and its development prospects. Based on these indicators, changes in the energy structure of individual European Union countries between 2008–2018 were determined. The study is divided into two main stages. The principal components analysis (PCA) was used for the first analysis. In turn, the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) was adopted to assess the level of renewable energy development in the European Union countries. Both these methods and the extended statistical analysis were applied to determine the state of renewable energy development in the European Union countries in the studied period and to divide the Member States into classes with different levels of development. The results of the study showed that the EU countries are characterized by significant differences in the development of RES during the period in question. The unquestionable leaders in this respect are Sweden, Austria, Finland, and Latvia. Based on the findings, it is possible to evaluate the effects of activities related to renewable energy development and to prepare assumptions for future activities. Additionally, both the research and its findings broaden the knowledge of the directions of renewable energy development in individual European Union countries. This is particularly important in the context of changes related to the need to reduce harmful substance emissions and the implementation of the European Green Deal idea.


2016 ◽  
Vol 9 (14) ◽  
pp. 145-157
Author(s):  
Virág Blazsek

The bank bailouts following the global financial crisis of 2008 have been subject to prior approval of the European Commission (EC), the competition authority of the European Union. The EC was reluctant to reject rescue efforts directed at failing banks and so it consistently approved all such requests submitted by Member States. Out of the top twenty European banks, the EC authorized State aid to at least twelve entities. In this context, the paper outlines the gradually changing interpretation of EU State aid rules, the “temporary and extraordinary rules” introduced starting from late 2008, and the extension of the “no-State aid” category. The above shifts show that the EC itself deflected from relevant EU laws in order to systemically rescue important banks in Europe and restore their financial stability. The paper argues that bank bailouts and bank rescue packages by the State have led to different effects on market structures and consumer welfare in the Eurozone and non-Eurozone areas, mostly the Eastern segments of the European Union. As such, it is argued that they are inconsistent with the European common market. Although the EC tried to minimize the distortion of competition created as a result of the aforementioned case law primarily through the application of the principle of exceptionality and different compensation measures, these efforts have been at least partially unsuccessful. Massive State aid packages, the preferential treatment of the largest, or systemically important, banks through EU State aid mechanisms – almost none of which are Central and Eastern European (CEE) – may have led to the distortion of competition on the common market. That is so mainly because of the prioritization of the stability of the financial sector and the Euro. The paper argues that State aid for failing banks may have had important positive effects in the short run, such as the promotion of the stability of the banking system and the Euro. In the longrun however, it has contributed to the unprecedented sovereign indebtedness in Europe, and contributed to an increased economic and political instability of the EU, particularly in its most vulnerable CEE segment.


2011 ◽  
Vol 13 (4) ◽  
pp. 117-138
Author(s):  
Janina Witkowska

This paper undertakes an analysis and assessment of European Union (EU) social policy in the context of the sustainability of the group's social and economic development. The process of Europeanizing EU social policy is not advanced. Thus, the weight of solving social problems primarily rests with member countries. EU social policy is "looser" in character than other EU policies and its scope is limited to those areas where member states were willing to transfer certain prerogatives to European Union level. The EU only supports social policy in the context of the sustainability of the group's social and economic development. The process of Europeanizing EU social policy is not and supplements the actions of member states in the social sphere. At the same time, the EU supports the concept of corporate social responsibility. Corporate social responsibility is defined as the voluntary taking into account by companies of social and environmental matters in their operations and in relations with interested parties.


2021 ◽  
Vol 19 (02) ◽  
pp. 373-388
Author(s):  
Oksana Vinska ◽  
Volodymyr Tokar

Purpose – The article aims at discovering classes and clusters of EU member-states considering their levels of economic development and gender equality to foster the enhancement of EU cohesion policy. Research methodology – The methodology includes the grouping by two parameters, economic development and gender equality, and the cluster analysis, the “far neighbor principle”, agglomerative hierarchical classification algorithm and the usual Euclidean distance as the distance between objects. Findings – There are no gender equality laggards among EU member-states. More developed countries belong to gender equality leaders, while there are two gender equality leaders and one gender equality adopter among transition countries. The group of less developed countries consists of six gender equality leaders and seven gender equality adopters. Research limitations – The results of cluster analysis may be impacted by off-shore activity of Ireland and Luxembourg. Practical implications – The EU supranational bodies can use our results to develop more efficient cohesion policy tools to ensure the adherence to the principle of gender equality. Originality/Value – The study is a pioneer one in determining nine classes and five clusters of EU member-states considering their levels of economic development and gender equality, as well as in introducing three types of countries depending on their level of gender equality, namely gender equality leaders, adopters, and laggards.


Author(s):  
Kreuschitz Viktor ◽  
Nehl Hanns Peter

This chapter assesses the enforcement of EU State aid rules. The Commission is not the only authority involved in the monitoring of State aid. As regards the supervision of Member States' compliance with their obligations under Articles 107 and 108 TFEU, the national courts also have an important role to play. The implementation of that system of control is a matter for both the Commission and the national courts, their respective roles being complementary but separate. Whilst assessment of the compatibility of aid measures with the common market falls within the exclusive competence of the Commission, subject to review by the Courts of the European Union, it is for national courts to ensure the safeguarding, until the final decision of the Commission, of the rights of individuals faced with a possible breach by State authorities of the prohibition laid down by Article 108(3) TFEU.


Author(s):  
Simon Bulmer ◽  
Owen Parker ◽  
Ian Bache ◽  
Stephen George ◽  
Charlotte Burns

This chapter examines the European Commission’s functions and structure, along with its role in policy making. The Commission initiates legislation, may act as a mediator, manages some policy areas, is guardian of the Treaties, is a key actor in international relations, and the ‘conscience of the European Union’. The chapter proceeds by discussing the debate on the extent to which the Commission is an autonomous political actor or simply an agent of the member states. Finally, it analyses the increasing challenges faced by the Commission in securing effective implementation of EU policies and its response to concerns over its financial management of EU programmes.


Author(s):  
Frank Schimmelfennig

Differentiated integration has become a core feature of the European Union. Whereas in uniform integration, all member states (and only member states) equally participate in all integrated policies, in differentiated integration, member and non-member states participate in EU policies selectively. At its core, differentiated integration is formally codified in EU treaties and legislation. The study of differentiated integration has long remained limited to policy-oriented conceptual debate. “Multi-speed integration,” “core Europe,” and “Europe à la carte” are prominent labels that have resulted from this debate. Theoretical and systematic empirical analysis of differentiated integration is a more recent phenomenon. Demand for differentiated integration is theorized to be rooted in international diversity of country size, wealth, and national identity, which result in heterogeneity of integration preferences, interdependence, and state capacities. In addition, agreement on differentiated integration depends on the size and bargaining power of the insider and outsider groups, the externalities that differentiation produces, and the institutional context in which negotiations take place. Finally, differentiated integration is subject to centrifugal and centripetal dynamics of path dependence and institutional practice. Evaluations of differentiated integration vary between negative assessments based on the principles of legal unity, European democracy, and solidarity and positive assessments based on demoi-cratic standards and the facilitation of integration. More research is needed on the relationship of differentiated integration with other forms of flexibility in the EU, citizen attitudes, and party positions on differentiated integration and the effects of differentiation.


2012 ◽  
Vol 15 (2) ◽  
pp. 5-29 ◽  
Author(s):  
Zofia Wysokińska

The development of entrepreneurship as well as research and innovation have direct impact on growth in the level of economic development as well as the prosperity of individual citizens and society in general. The primary goal of policies involving research and technological development is establishing the European Union as a leading knowledge–based economy. Innovativeness is also the main factor in improving the competitiveness of companies. The key to improving the economic situation in Poland is the strengthening of innovative attitudes among entrepreneurs. An efficiently running institutional system guaranteeing effective support instruments for entrepreneurs and the scientific–research sphere as well as guaranteeing the unhindered transfer of knowledge should prove helpful. As the main factor in improving the competitiveness of companies, innovativeness is mainly the result of the development of collaboration between the spheres of science and business as well as the use of patent achievements in companies. The drive behind future growth in the European Union will be sectors based on knowledge and innovation. However, these require a solid industrial network and resources allowing the utilization of new technologies. To a great extent, growth in entrepreneurship and innovativeness as significant factors in the economic development of Europe and Poland is dependent on the elimination of administrative barriers for companies and the introduction of the facilitating of information and communication (ICT) as needed for them to function.


2021 ◽  
Vol 10 (3) ◽  
pp. 157
Author(s):  
Petrică Sorin Angheluță ◽  
Dumitru Alexandru Bodislav ◽  
Maria Loredana Popescu ◽  
Florina Bran

A solid industrial base positively influences society as a whole. Business development is favored by the degree to which companies are active in the market. The article presents an analysis of employment in companies active in the Member States of the European Union. The evolution of the establishment of active enterprises according to their branches of activity is also addressed. Openness to local markets can lead to successful business activities. Cooperation between different companies can also be facilitated by new technologies. From the point of view of mobility, employment in foreign affiliates of domestic enterprises is another subdomain analyzed in the article. The way in which companies approach the field of expenditure can influence their activity. Thus, by increasing technological capacities and promoting innovation, technological development measures lead to the development of enterprises. The article presents an analysis of the way in which expenditure is shared at the level of enterprises in the Member States of the European Union.


Author(s):  
Masum Billah

The European Union (EU) is a political and economic union of 28 member states that are located primarily in Europe. It has an area of 4,475,757 km2 (1,728,099 sq mi) and an estimated population of about 513 million. The EU has developed an internal single market through a standardized system of laws that apply in all member states in those matters, and only those matters, where members have agreed to act as one. EU policies aim to ensure the free movement of people, goods, services and capital within the internal market, enact legislation in justice and home affairs and maintain common policies on trade, agriculture, fisheries and regional development. For travel within the Schengen Area, passport controls have been abolished. A monetary union was established in 1999 and came into full force in 2002 and is composed of 19 EU member states which use the euro currency.


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