European economic integration

Evropska ekonomska integracija

Course credits:

6.00 ECTS / 60 (30 hours of lectures, 0 hours of exercises, 26 hours of seminars, 4 hours other forms of work)

Course holder:

prof. dr. Andreja Jaklič

Lecturers:

• Assoc. Prof. Anže Burger

Type:

Elective expert

Language:

English

Semester:

Second semester

Study degree

1. level

Course execution:

• Undergraduate Programme of International Relations

Prerequisits:

Students are allowed to participate in the course provided that they have completed the enrolment procedure. This course within the European integration module builds up the knowledge acquired within courses Introduction to the EU, Principles of Economics and International Economic Relations.

Objectives and competences

Goals: This course is highly relevant to students interested in expanding their knowledge of the EU and its economics. The goal of the course is to present students with economic rationale and effects of different stages of economic integration in Europe and four economic freedoms of the EU. Next goal is for student to know and comprehend the main common economic policies of the common EU market. Competences: By the end of the course students will demonstrate the ability to understand the economic logic behind the EU integration, to review the EU’s legal system and main legal principles guiding the economic integration. Students will be able to understand the various forms of market- integration and economic freedoms of the EU in-depth. They will understand the benefits and cost of the Economic and Monetary Union and EU economic governance. Students can address the current challenges facing the EU. Students will be able to understand the role of policies and economic environment in shaping the conditions for governments, firms and individuals. Students will be able to evaluate the consequences of European economic integration and the main economic policies of the EU.

Content (Syllabus outline)

The course includes two parts. In the first part of the course we explore the concept of economic integration, as well as its implications for a country’s economic growth, using the example of the actual evolution of European integration. In the second part we study the main European policies, their common objectives, instruments and financial means, and their evolution over time, together with the working of the monetary and fiscal policies of the EU. This course introduces the main economic aspects of the current development of the European Union (EU) and its policies. It covers the process of European integration and its economic impacts on individuals, firms and regions. The focus of the course will be on the rationale and the analysis of economic effects of the four freedoms of the EU: free movement of goods, services, people and capital. Special attention will be devoted to the analysis of the economic opportunities and challenges generated by economic integration, and to the assessment of the policies designed to support this process and mitigate its potential side-effects. The topics covered include: -The early phase of the EU: trade integration -Basic international trade theories (Law of comparative advantage, Heckscher-Ohlin-Samuelson theory, New trade theory, New-new trade theory, theory of economic integration, analysis of tariffs) -The Single European Act and the effects of free movement of persons, capital, goods and services within the EU -Basic theories of factor movements (migration theories and capital movement theories) -Innovation and technological development in the EU -The Economic and Monetary Union (EMU) -The theory of Optimal Currency Areas (OCA): is the EU an OCA? -Monetary policy in the EU and the Eurozone -EU budget -European fiscal policy and EU economic governance

Intended learning outcomes:

At the end of this course, students will be able to: -describe and comprehend historical development of EU common market -list and understand theories of international trade, integration and international business that help to justify and explain the consequences of European economic integration -define and explain four economic freedoms of the EU and to apply the appropriate theories of international factor movements -identify and understand the effects of economic integration on growth and competitiveness -define and present benefits and costs of common macroeconomic policies, such as monetary union, common monetary policy and EU economic governance -apply knowledge and comprehension of the above listed elements of European and EU economic integration into different professional environments.

Learning and teaching methods:

Lectures, seminars, reading and discussion of topical texts, secondary data analysis.

Assessment

There will be one mandatory written assignment, counting as 40% of the final course grade; a positively evaluated written examination is a prerequisite for a positive assessment of the course. 40 % The remaining 60% of the final grade will be obtained with a) two written mid-term exams each counting 20% and b) student assignment counting the remaining 20%. (40 %). Participation and active involvement in the class is required. 20 %

Obligatory literature

Additional literature