Cultivating Consensus and Creating Conflict

2006 ◽  
Vol 39 (8) ◽  
pp. 1019-1042 ◽  
Author(s):  
Rachel A. Epstein

In Central and Eastern Europe, economic reform consistent with Bretton Woods and European Union (EU) demands has replicated not only the rules and institutions that prevail in Western societies but also their patterns of consensus and conflict. Although central bank policy has been largely depoliticized in the 2004 accession states through the institutionalization of central bank independence, agricultural interests were mobilized—in some instances against the EU—in the course of accession negotiations. This article argues that as they engage in the explicit transfer of economic policy to post-communist states, international institutions simultaneously transmit beliefs about who has legitimate claims on the state. The methods through which international institutions help construct new markets in transition states have consequences for the development of domestic cleavages and for the cultivation of political support for economic integration.

2009 ◽  
Vol 23 (3) ◽  
pp. 339-370 ◽  
Author(s):  
Aleksander Lust

In referenda held in 2003, over 90% of Lithuanians supported joining the European Union (EU), while only two-thirds of Estonians did. Why? This article shows that Lithuanians and Estonians had different economic expectations about the EU. Most Lithuanians hoped that EU membership would help Lithuania overcome its economic backwardness and isolation. By contrast, many Estonians worried that the accession would reinforce Estonia's underdevelopment and dependency on the West. I argue that these expectations reflected the two countries' strategies of economic reform. Lithuania sold state-owned enterprises (SOEs) to their managers and continued to trade heavily with Russia, which slowed down the modernization of its economy. Estonia sold SOEs to foreigners and reoriented its trade rapidly from Russia to the West, which hurt its traditional sectors (particularly agriculture) and infrastructure.


2021 ◽  
Vol 3 (11) ◽  
pp. 251-257
Author(s):  
Anzhelika L. Gendon ◽  
◽  
Galina F. Golubeva ◽  

The article examines the financial support (not tax) of the economy in the EU countries due to the pandemic. A comprehensive vision of the situation and strategic planning are the foundation of the Euro-pean Union's economic policy. These qualities help to develop comprehensive measures to stabilize the labor market and entrepreneurship in the countries of the European Union in the context of a global emergency. A positive factor is also the fact that in an epidemic situation, political decisions of various states are aimed at introducing socially oriented measures that support their citizens.


Author(s):  
Chiara Zilioli ◽  
Phoebus Athanassiou

The provisions on Monetary Union (MU), of the Treaty on the functioning of the European Union (TFEU or the Treaty), as well as the Statute of the European System of Central Banks and of the European Central Bank (the Statute), are important in their own right, and are amongst those from which any student of the European Union (EU) can learn a great deal with regard to the EU.


2021 ◽  
pp. 1-11
Author(s):  
Margot Horspool ◽  
Matthew Humphreys ◽  
Michael Wells-Greco

This introductory chapter traces the development of the European Union. Since its inception in 1952, the EU has matured and developed from a Community of like-minded states into a Union of a greater diversity of states, with a comprehensive legal system which is increasingly penetrating the national legal systems of Member States. From the six original members, the EU now counts 27 Member States. Eleven of the thirteen newer Member States are in Central and Eastern Europe, and have discarded their old Communist regimes, turning into democracies with the qualifications to join the Union. The latest developments and changes, including Brexit and the effects of Covid-19, are also discussed.


Author(s):  
Ramūnas Vilpišauskas

For Lithuania, the geopolitical motive to join the European Union (EU) in order to prevent a repetition of the 1940s occupation has been as important as a motive to “return to Europe.” This motivation to become part of the West led the country’s political elites to conceptualize accession into the EU as an important part of the transition reforms which were expected to modernize Lithuania’s economy, public administration, and governance as well as contribute to the country’s security and create conditions for economic catching up. Membership in the EU, accession into NATO, and good neighborly relations became the three cornerstones of Lithuania’s foreign policy since the early 1990s and enjoyed broad political support. It was this support that arguably allowed for the maintenance of political and administrative mobilization and consistency of preparations for the membership during the pre-accession process. Public support for the EU membership remained above the EU average since accession in 2004. Around the time of accession, a new concept of Lithuania as “a regional leader” was formulated by the core of the nation’s foreign policy makers. The concept of a regional leader implied active efforts of mediating between Eastern neighbors and the EU, often in coordination with Poland, which was driven by the desire to stabilize the Eastern neighborhood and advance relations between Eastern neighbors and the EU and NATO. Although coalition building within the EU has been fluctuating between a strategic partnership with Poland and Baltic-Nordic cooperation, also most recently the New Hanseatic league, attention to the Eastern neighborhood and geopolitical concerns originating from perceived aggressive Russian policies remained a defining characteristic of the country’s European policy independent of personalities and political parties, which have been at the forefront of policy making. Completion of integration into the EU, in particular in the fields of energy and transport, as well as dealing with “leftovers” from accession into the EU, such as joining the Schengen area and the euro zone, became the other priorities since 2004. Lithuania has been one of the fastest converging countries in the EU in terms of GDP per capita since its accession. However, membership in the EU Single Market also had controversial side effects. Relatively large flows of emigrants to other EU member states generated political debates about the quality of governance in Lithuania and its long-term demographic trends such as a decreasing and aging population. Introduction of the euro in 2015 was perceived by the public as the main factor behind price rises, making inflation the most important public issue in 2016–2018. High per capita income growth rates as well as the prospect of the United Kingdom exiting the EU triggered discussions about excessive dependency on EU funding, the potential effects of its decline after 2020, and sources of economic growth. There are increasingly divergent opinions regarding further deepening of integration within the EU, especially in regard to alignment of member states’ foreign and security policies as well as tax harmonization. Still, membership in the EU is rarely questioned, even by those who oppose further integration and advocate a “Europe of nations.”


2017 ◽  
Vol 14 (2) ◽  
pp. 208-222
Author(s):  
Heidi Stockhaus

The new free trade agreement with the European Union will bring Vietnam’s economic integration to a new level once it enters into force. In the past, the associated economic growth has led to environmental deterioration due to inappropriate regulations and poor enforcement. Currently, environmental problems are visible everywhere and attract the attention of citizens as well as lawmakers. The new free trade agreement establishes a framework for sustainable development in the context of trade and investment. The relevant provisions aim to maintain Vietnam’s right to regulate for the targeted protection level, require the country to take measures to mitigate the pressure on the environment, and open the door for cooperation with the European Union. However, it remains to be seen, whether these provisions balance the risks associated with the increase in trade and investment through the free trade agreement.


Ekonomika ◽  
2015 ◽  
Vol 94 (2) ◽  
pp. 47-72
Author(s):  
Ganna Kharlamova

The paper deals with the European Union programme devoted to the eastern neighboring states. Through its European Neighbourhood Policy (ENP), the EU works with its southern and eastern neighbours to achieve the closest possible political association and the greatest possible degree of economic integration. This goal builds on common interests and values — democracy, the rule of law, respect for human rights, and social cohesion. The EU is concerned that, despite sufficient funding and support from the EU, the targeted states did not raise to the EU targets for the programme or at least to a relevant one. We assume that such fact happened mostly because, although having very diverse economic and reform pasts emerged from the post-soviet period, they were considered and approached as a single group. The main hypothesis: has the umbrella of the EU funds in terms of the EaP provided for the six targeted states to intensify the growth of regional interdependencies as well as political cooperation and progressive economic integration? The main goal of the paper is to assess, by means of the statistical and comparison approach, the development and the economic sustainability of six targeted states (Belarus, Moldova, Ukraine, Armenia, Azerbaijan, and Georgia) in the period before and after the programme launching – the degree of regional interdependence and economic integration. The research was conducted using the methods of empirical (regression) analysis, theoretical explanations, descriptive analysis, and the Granger causality test.


2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Jian Liu ◽  
Ziting Zhang ◽  
Lizhao Yan ◽  
Fenghua Wen

AbstractThis study investigates the impact of economic policy uncertainty (EPU) on the volatility of European Union (EU) carbon futures prices and whether it has predictive power for the volatility of carbon futures prices. The GARCH-MIDAS model is applied for evaluating the impact of different EPU indexes on the price volatility of European Union Allowance (EUA) futures. We then compare the predictive power for the volatility of the two GARCH-MIDAS models based on different EPU indexes and six GARCH-type models. Our empirical results show that the GARCH-MIDAS models, which exhibit superior out-of-sample predictive ability, outperform GARCH-type models. The results also indicate that EPU has noticeable effect on the volatility of EUA futures. Specifically, the forecast accuracy of the EU EPU index is significantly higher than that of the global EPU index. Robustness checks further confirm that the EPU index (especially the EPU index of the EU) has strong predictive power for EUA futures prices. Additionally, using the volatility forecasting methods that GARCH-MIDAS models combine with the EPU index, investors can construct their portfolios to realize economic returns.


Author(s):  
Ann-Christina L. Knudsen

This chapter examines the common agricultural policy (CAP) in the context of political rather than economic terms. It first provides an overview of the development of the European agricultural welfare state, explaining why and how agriculture was able to claim and uphold a special position in Europe. It then considers CAP's achievements and unintended consequences and cites financial pressure as a strong incentive for CAP reform in the early 1990s, as was the pernicious international impact of the policy. It shows how concerns about the environment and food safety, and about the possible impact of European Union enlargement into Central and Eastern Europe, maintained the momentum for reform. Given the broad political commitment to supporting farm incomes, and sustaining a viable countryside in the EU, however, the chapter suggests that CAP is likely to endure in some form or other.


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