Реферат: Impact of European integration in its member
<st1:place w:st=«on»><st1:PlaceName w:st=«on»>EUROPEAN</st1:PlaceName><st1:PlaceType w:st=«on»>UNIVERSITY</st1:PlaceType></st1:place>OF LEFKE
<span Berlin Sans FB",«sans-serif»">FACULTY OFECONOMICS AND ADMINISTRATIVE SCIENES
<span Berlin Sans FB",«sans-serif»">BUSINESSDEPARTMENT
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<span Baskerville Old Face",«serif»">EUROPEANAND ECONOMIC INTEGRATION<span Baskerville Old Face",«serif»">
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<span Baskerville Old Face",«serif»">;ERHAN ERCINYou can contactme to: maradona@rambler.ru
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<span Baskerville Old Face",«serif»">:<span Baskerville Old Face",«serif»">Makhsut<span Baskerville Old Face",«serif»">
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<span Baskerville Old Face",«serif»">urname:Zulufov<span Baskerville Old Face",«serif»">
<span Baskerville Old Face",«serif»">Number:21-4295
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<span Baskerville Old Face",«serif»">Date: 10.06.2006
<st1:place w:st=«on»><st1:PlaceName w:st=«on»><span Baskerville Old Face",«serif»">EUROPEAN
</st1:PlaceName><span Baskerville Old Face",«serif»"> <st1:PlaceType w:st=«on»>UNIVERSITY</st1:PlaceType></st1:place><span Baskerville Old Face",«serif»">OF LEFKE<span Baskerville Old Face",«serif»">
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<span Baskerville Old Face",«serif»">ACULTYOF <span Baskerville Old Face",«serif»">A<span Baskerville Old Face",«serif»">DMINISTRATIVEAND <span Baskerville Old Face",«serif»">E<span Baskerville Old Face",«serif»">CONOMIC<span Baskerville Old Face",«serif»">S<span Baskerville Old Face",«serif»">CIENCES<span Baskerville Old Face",«serif»"><span Baskerville Old Face",«serif»">
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<span Baskerville Old Face",«serif»">BUSINESSDEPARTMENT
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<span Baskerville Old Face",«serif»">MPACTOF <span Baskerville Old Face",«serif»">E<span Baskerville Old Face",«serif»">UROPEAN<span Baskerville Old Face",«serif»">I<span Baskerville Old Face",«serif»">NTEGRATIONIN ITS <span Baskerville Old Face",«serif»">M<span Baskerville Old Face",«serif»">EMBER<span Baskerville Old Face",«serif»">S<span Baskerville Old Face",«serif»">TATES<span Baskerville Old Face",«serif»">
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<span Baskerville Old Face",«serif»">PreparedBy:
<span Baskerville Old Face",«serif»">MAKHSUTZULUFOV
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<span Baskerville Old Face",«serif»">June 2006
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<span Book Antiqua",«serif»">HOME ISWHERE THE HEART IS
<span Book Antiqua",«serif»">
<span Book Antiqua",«serif»">BUSINESS ISWHERE THE BRAIN IS
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<span Book Antiqua",«serif»">OFFICE ISWHERE THE USER IS
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<span Book Antiqua",«serif»">VALUE ISWHERE THE INFORMATION IS
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SYNOPSIS
This projectdoes cover the topic of European Union by including the starting up of EU withits original three countries and bringing a concept of <st1:place w:st=«on»>Benelux</st1:place>that combined from the initial letters of <st1:country-region w:st=«on»><st1:place w:st=«on»>Belgium</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Netherlands</st1:place></st1:country-region>, and <st1:country-region w:st=«on»><st1:place w:st=«on»>Luxembourg</st1:place></st1:country-region>.
The map of theworld has changed as European Nations decided to come together and found a commonground while they were in process. EU bloc has became one of the leading blocand it says the role of those nations changed and nations eliminated barriersand established one concept of Single Market and Euro region which is region oftransnational change on its continent.
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Also thisproject covers main advantages and disadvantages of such union by giving achance to European countries to have access to this entity. The aim is toachieve unanimity in all terms. However, they have not achieved last and furtherstage.
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CONTENTS
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Synopsis………………………………………………………………………...4<span Baskerville Old Face",«serif»"><span Baskerville Old Face",«serif»">
<span Baskerville Old Face",«serif»"> Introduction……………………………………………………………………………………………..6
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<span Baskerville Old Face",«serif»"> EU and its impact on its member state…………………………………………………….…..7
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Brief information ofhistory…………………………………………………….9
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<span Baskerville Old Face",«serif»"> Rationality on eastwardenlargement and candidacy of <st1:country-region w:st=«on»><st1:place w:st=«on»>Turkey</st1:place></st1:country-region>………………………10
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Single Market…<span Baskerville Old Face",«serif»">………………………………………………………………………….
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Stagesof Economic Integration……………………………………………......13<span Baskerville Old Face",«serif»">
Single European Act1986…………………………………………………......15
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<st1:City w:st=«on»><st1:place w:st=«on»>Maastricht</st1:place></st1:City>Treaty (Treaty on EU)……………………………………………..15
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Relation of <st1:country-region w:st=«on»><st1:place w:st=«on»>Turkey</st1:place></st1:country-region> andEU……………………………………………………16
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Disadvantages ofEuropean Union…………………………………………….17
Advantages ofEuropean Union……………………………………………….18
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Demographicproblem…………………………………………………………21
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Conclusion……………………………………………………………………..23<span Baskerville Old Face",«serif»">
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Bibliography…………………………………………………………………...24<span Baskerville Old Face",«serif»">
<span Baskerville Old Face",«serif»">INTRODUCTION
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After World War II, showed the need tounify the people of <st1:place w:st=«on»>Europe</st1:place> in a way that wouldminimize, but not destroy, national patriotism that was felt to be a cause ofboth World Wars. European countries realized that establishment of strongrelationship is necessary for avoiding of a conflict and not to repeat it,which was in 1939-45. In this project I would like to express how Europeannations integrating on the continent or in other word a big peninsula ofEurope, where 25 countries are united and became highly interdependent on eachother because of Economic Union (Integration), which is the last and achievedstage (level) of integration, by excluding Political Union.
In recent years the European Community hasinitiated structural changes such as the Single Market, which proceeded by FreeTrade Area and Custom Union. However, world has witnessed more rapid anddramatic changes in Euro zone.
To bring out onemore international currency of € (Euro), European countries have put too muchof efforts which was really hard job. European countries have signed main severalTreaties for establishment of Economic Integration.
First Treaty ofEEC was Treaty of Paris, which set up the European Coal and Steel Community(ECSC), this Treaty was signed by six countries (<st1:country-region w:st=«on»><st1:place w:st=«on»>Belgium</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Netherlands</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>Luxembourg</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>France</st1:place></st1:country-region>, <st1:country-region w:st=«on»><st1:place w:st=«on»>West Germany</st1:place></st1:country-region>,and <st1:country-region w:st=«on»><st1:place w:st=«on»>Italy</st1:place></st1:country-region>.)
The same six countries signed the Treatyof Rome, establishing the European Economic Community (EEC), better known asthe Common Market. And later, these countries signed Single European Act (SEA). And last stage is Economic and MonetaryUnion (EMU) which is the Maastricht Treaty. These Treaties have contributed tomake such transnational change on the continent of <st1:place w:st=«on»>Europe</st1:place>.As well as, international entity, which is European Union, has some advantagesand disadvantages.
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<span Baskerville Old Face",«serif»">EUand its impact on its member states
The European Union (EU) is a uniqueendeavor involving economic and political integration in the world today. <st1:place w:st=«on»>Europe</st1:place> is conventionally considered one of the sevencontinents of Earth, which in this case, is more a cultural and politicaldistinction than a physiographic one, leading to various perspectives about <st1:place w:st=«on»>Europe</st1:place>’s borders. Physically and geologically, <st1:place w:st=«on»>Europe</st1:place> is a subcontinent or large peninsula, forming thewestern most part of <st1:place w:st=«on»>Eurasia</st1:place> and west of <st1:place w:st=«on»>Asia</st1:place>. TheEuropean Union has 25 member states, an area of 3,892,685 km² andapproximately 460 million inhabitants as of December 2004. The European Union'smember states combined represent the world's largest economy by GDP, the seventhlargest territory in the world by area and the third largest by population. TheEU describes itself as an «a family of democratic European countries»though the extent of «European» has been a matter of debate,especially in relation to the possibility of the accession of <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>.
The main focus is on the Common Market and Monetary Union aspects of theEuropean story. The Common Market has of course evolved and is evolving both interms of membership and scope. The key developments were the Single EuropeanAct of 1986, the Maastricht Treaty on European Union of1992 and the Treaty of Amsterdam of 1997. The Single Act set the community thebasic task of completing the creation of Single European Market. The MaastrichtTreaty transformed the relationship in a variety of ways.
First, the <st1:place w:st=«on»>European Economic Community</st1:place> is now referred to as the European Communitysince it covers social and cultural as well as economic matters. Second, theprocess of economic integration has now been pointed towards the ultimatedestination of Economic and Monetary Union. Third, the whole complex ofrelationships has been given the title of the European Union. The <st1:place w:st=«on»>Union</st1:place>’s task is not only economic, social and culturalintegration; it also takes in the Common Foreign and Security Policy and whatis now called Police and Judicial Cooperation in Criminal Matters. In short,integration has spilled over from economic to broadly political affairs.
Economic Integration is a term used todescribe how different aspects between economies are integrated. The basics ofthis theory were written by the Hungarian Economist Bela Balassa in the 1960s.As economic integration increases, the barriers of trade between marketsdiminish. The most integrated economytoday, between independent nations, is the European Union and its Euro zone.
EuropeanIntegration is the process of political and economic (and in some cases socialand cultural) integration of European (and some peripheral) states into atighter bloc. The main and most powerful body of European Integration isEuropean Union, (European Union is an intergovernmental and supranational unionof 25 democratic member states from the European Continent. <span Times New Roman";mso-hansi-font-family:«Times New Roman»; mso-char-type:symbol;mso-symbol-font-family:Symbol">*
A basic tension exists within theEuropean Union between intergovernmentalism and supranationalism.Intergovernmentalism is a method of decision-making in international organizationswhere power is possessed by the member states and decisions are made byunanimity. Independent appointees of the governments or elected representativeshave solely advisory or implementation functions. Intergovernmentalism is usedby most international organizations today. An alternative method of decision-makingin international organizations is supranationalism. In supranationalism poweris held by independent appointed officials or by representatives elected by thelegislatures or people of the member states. Member state governments stillhave power, but they must share this power with other actors. Furthermore,decisions are made by majority votes; hence it is possible for a member-stateto be forced by the other member-states to implement a decision against itswill.
Some forces in European Union politics favor theintergovernmental approach, while others favor the supranational path.Supporters of supranationalism argue that it allows integration to proceed at afaster pace than would otherwise be possible. Where decisions must be made bygovernments acting unanimously, decisions can take years to make, if they areever made. Supporters of intergovernmentalism argue that supra-nationalism is athreat to national sovereignty, and to democracy, claiming that only nationalgovernments can possess the necessary democratic legitimacy.Intergovernmentalism is being favoured by more Eurosceptic nations such as the <st1:country-region w:st=«on»>United Kingdom</st1:country-region>, <st1:country-region w:st=«on»>Denmark</st1:country-region>and <st1:country-region w:st=«on»>Sweden</st1:country-region>; while moreintegrationist nations such as the Benelux countries, <st1:country-region w:st=«on»>France</st1:country-region>, <st1:country-region w:st=«on»>Germany</st1:country-region>,and <st1:place w:st=«on»><st1:country-region w:st=«on»>Italy</st1:country-region></st1:place>have tended to prefer the supranational approach. The European Union attemptsto strike a balance between the two approaches. This balance however iscomplex, resulting in the often labyrinthine complexity of its decision-makingprocedures. Supranationalism is closely related to the inter-governmentalist vs.neofunctionalist debate. This is a debate concerning why the process ofintegration has taken place at all. Intergovernmentalists argue that theprocess of EU integration is a result of tough bargaining between states.Neofunctionalism, on the other hand, argues that the supranational institutionsthemselves have been a driving force behind integration. <span Times New Roman";mso-hansi-font-family:«Times New Roman»;mso-ansi-language: EN;mso-char-type:symbol;mso-symbol-font-family:Symbol">*
<span Times New Roman";mso-hansi-font-family:«Times New Roman»;mso-char-type:symbol; mso-symbol-font-family:Symbol">*TheEU was established under that name in 1992 by the Treaty on EU (MaastrichtTreaty)). Through other institutions like Council of Europe also integratetheir members states. The regions of <st1:place w:st=«on»>Europe</st1:place>are integrated into larger Euro regions. (A Euro region is a form oftransnational co-operation structure between two or more territories located indifferent European countries.)
Euro regionsusually do not correspond to any legislative or governmental institution, donot have political power and their wok is limited to the competences of thelocal and regional authorities which constitute them. They are usually arrangedto promote common interests across the border and cooperate for the common goodof the border and cooperate for the common good of the border populations. Eventhough the Council of Europe sponsored term “euro region” means a similarthing, it should not be confused with the European Union sponsored term“regions in <st1:place w:st=«on»>Europe</st1:place>”.
The EuropeanUnion created regions of <st1:place w:st=«on»>Europe</st1:place> as the layerof EU government administration directly below the nation-state level
Regions of <st1:place w:st=«on»>Europe</st1:place>are represented by the Committee of the Regions headquarters in <st1:City w:st=«on»><st1:place w:st=«on»>Brussels</st1:place></st1:City>.
Reasons for this include;
Reflecting the historic and cultural claims for autonomy in many regions all over the EU Strengthening the political and economic situation in those regions.<span Times New Roman";mso-hansi-font-family: «Times New Roman»;mso-char-type:symbol;mso-symbol-font-family:Symbol">*
http://en.wikipedia.org/wiki/EuroregionBRIEF INFORMATION OF HISTORY
In fact the first countriesstarted unions are <st1:country-region w:st=«on»>Belgium</st1:country-region>, <st1:country-region w:st=«on»>Netherlands</st1:country-region>, and <st1:place w:st=«on»><st1:country-region w:st=«on»>Luxembourg</st1:country-region></st1:place>. These countries areactual founders of such strong economy like EU.
Beneluxis an economic union in Western Europecomprising three neighboring monarchies, <st1:country-region w:st=«on»>Belgium</st1:country-region>,the <st1:country-region w:st=«on»>Netherlands</st1:country-region>, and <st1:place w:st=«on»><st1:country-region w:st=«on»>Luxembourg</st1:country-region></st1:place>.The name is formed from the beginning of each country's name, and was createdfor the Benelux Customs Union, but is now used in a more generic way. Thetreaty establishing the Benelux Customs Union was signed in 1944 by the governmentsin exile of the three countries in <st1:City w:st=«on»><st1:place w:st=«on»>London</st1:place></st1:City>,and entered into force in 1947. It ceased to exist in 1960, when it wasreplaced by the Benelux Economic Union. It was preceded by the (still extant) Belgium-LuxembourgEconomic Union, established in 1921. EuropeanUnion greatly increased, driven by the determination to rebuild <st1:place w:st=«on»>Europe</st1:place> and to eliminate the possibility of another war.This sentiment eventually led to the formation of the European Coal and SteelCommunity by (West) <st1:country-region w:st=«on»>Germany</st1:country-region>,<st1:country-region w:st=«on»>France</st1:country-region>, <st1:country-region w:st=«on»>Italy</st1:country-region> and the Beneluxcountries. This was accomplished by the Treaty of Paris, signed in April, 1951,and taking effect in July, 1952. <span Times New Roman"; mso-hansi-font-family:«Times New Roman»;mso-ansi-language:EN;mso-char-type: symbol;mso-symbol-font-family:Symbol">*
<span Times New Roman";mso-hansi-font-family:«Times New Roman»;mso-char-type:symbol; mso-symbol-font-family:Symbol">*On 25March 1957 the governments of <st1:country-region w:st=«on»>France</st1:country-region>, <st1:country-region w:st=«on»>West Germany</st1:country-region>, <st1:country-region w:st=«on»>Italy</st1:country-region>,the <st1:country-region w:st=«on»>Netherlands</st1:country-region>, <st1:country-region w:st=«on»>Belgium</st1:country-region> and <st1:place w:st=«on»><st1:country-region w:st=«on»>Luxembourg</st1:country-region></st1:place> signed the Rome Treatyand implemented on 1 January 1958. In so doing they agreed to create what cameto be known as the Common Market or, more accurately, the <st1:place w:st=«on»>European Economic Community</st1:place>. That institution has remained the movementtowards closer union and economic integration in <st1:place w:st=«on»>Europe</st1:place>.It was course accompanied by the creation of Euratom and had indeed beenpreceded by the European Coal and Steel Community of 1951. European Coal andSteel Community (ECSC) established with the pooling of production andconsumption of coal and steel. And the on the same day the same six countriessigned Treaty of Rome, establishing European Economic Community (EEC )in 1957).EEC better known as The Common Market, and the EURATOM Treaty (European Atomic Energy Community), designedto promote and supervise the development for peaceful uses of nuclear andatomic energy, which was recognised as an essential resource. In 1973 the UK,Denmark and Ireland joined the origial six countries, followed by Greeced in1981and then in 1986, by Spain and Portugal. In 1990 the reunion of East andWest Germany was achieved, which effectively added another state to community. On1st January 1995, Austria, Finland and Sweden joined to make a EuropeanCommunity of 15. <span Times New Roman";mso-hansi-font-family: «Times New Roman»;mso-char-type:symbol;mso-symbol-font-family:Symbol">*
After that EUwas going on the way of enlarging in zone, population, economy and rest of allaspects, by giving access to other countries to apply for access to become amember of EU. On 1st January 2001 European Union become more in number afterten new states joined to EU entity, and in present time EU includes 25 stateswith new ten members; (<st1:country-region w:st=«on»>Cyprus</st1:country-region>,<st1:PlaceName w:st=«on»>Czech</st1:PlaceName> <st1:PlaceType w:st=«on»>Republic</st1:PlaceType>,<st1:country-region w:st=«on»>Estonia</st1:country-region>, <st1:country-region w:st=«on»>Hungary</st1:country-region>, <st1:country-region w:st=«on»>Latvia</st1:country-region>,<st1:country-region w:st=«on»>Lithuania</st1:country-region>, <st1:country-region w:st=«on»>Malta</st1:country-region>, <st1:country-region w:st=«on»>Poland</st1:country-region>,<st1:country-region w:st=«on»>Slovakia</st1:country-region>, and <st1:place w:st=«on»><st1:country-region w:st=«on»>Slovenia</st1:country-region></st1:place>).However, by 1st January 2007 two new states will be joining to EU like Bulgariaand Romania.
Context — rationale for enlargement and futureprospectsSupporters of the European Union argue that thegrowth of the EU is a force for peace and democracy. They argue that the warswhich were a periodic feature of the history of Western Europe have ceasedsince the formation of the <st1:place w:st=«on»>European Economic Community</st1:place>(which later became the EU) in the 1950s. They also claim that in the early1970s, <st1:country-region w:st=«on»>Greece</st1:country-region>, <st1:country-region w:st=«on»>Portugal</st1:country-region> and <st1:place w:st=«on»><st1:country-region w:st=«on»>Spain</st1:country-region></st1:place> were all dictatorships, butthe desire of the business communities in these three countries to be in the EUcreated a strong impetus for democracy there. Others argue that peace in Europesince World War II is more due to other causes, such as the need for a unifiedresponse to the threat from the SovietUnion, a need for reconstruction after World War II, and a collectivetemporary tiring of waging war, and that the dictatorships cited came to an endfor totally different reasons. In more recent times, the European Union hasbeen extending its influence to the east. It has accepted several new membersthat were previously behind the Iron Curtain, and has plans to accept severalmore in the medium-term. It is hoped that in a similar fashion to the entry of <st1:country-region w:st=«on»>Spain</st1:country-region>, <st1:country-region w:st=«on»>Portugal</st1:country-region>and <st1:place w:st=«on»><st1:country-region w:st=«on»>Greece</st1:country-region></st1:place>in the 1980s, membership for these states will help cement economic andpolitical stability. As the EU continues to enlarge eastward, the candidatecountries' accessions tend to grow more controversial. As previously explained,the EU has finished accession talks with <st1:country-region w:st=«on»>Bulgaria</st1:country-region>and <st1:place w:st=«on»><st1:country-region w:st=«on»>Romania</st1:country-region></st1:place>,and set an entry date for the two countries in 2007. However, the rejection ofthe EU Constitution by France and the Netherlands, and the EU's slow economicgrowth, have cast some doubt on whether the EU will be ready to accept newmembers after 2007, when Romania and Bulgaria are set to join EU (in early 2005they signed the Accession Treaty). A further point of contention for EU membersis the accession of <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>.
Accessionpreliminary talks between <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>and the EU began in early October 2005. <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>'s Government, led by PrimeMinister Recep Tayyip Erdoğan, has enacted many legal reforms to meet theEU's entry requirements. However, some member states, especially <st1:country-region w:st=«on»>Austria</st1:country-region>, repudiate <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place> joining the EU, and thepossible economic, immigration and cultural implications that may bring. It isalso noted that the vast majority of <st1:country-region w:st=«on»>Turkey</st1:country-region>'sterritory lies outside of what is commonly considered the continent of <st1:place w:st=«on»>Europe</st1:place>.
Theten new member states of <st1:place w:st=«on»>Eastern Europe</st1:place> haveenjoyed a much higher average percentage growth rate than their West Europeancounterparts. With the exception of <st1:country-region w:st=«on»>Malta</st1:country-region>not one state has had a GDP growth of less than 4%, putting these nations upwith economies such as the <st1:place w:st=«on»><st1:country-region w:st=«on»>US</st1:country-region></st1:place>.Notably the Baltic states have achieved massive GDP growth, with <st1:country-region w:st=«on»>Latvia</st1:country-region> topping 8.5%, close to <st1:place w:st=«on»><st1:country-region w:st=«on»>China</st1:country-region></st1:place>, the world leader at 9% onaverage for the past 25 years. Reasons for this massive growth includegovernment commitments to stable monetary policy, export-oriented tradepolicies, low flat-tax rates and the utilization of relatively cheap labor. Thecurrent map of EU growth is one of huge regional variation, with the largereconomies suffering from stagnant growth and the new nations enjoyingsustained, robust economic growth. Although EU25 GDP is on the increase, thepercentage of Gross world product is decreasing due to the emergence ofeconomic powers such as <st1:country-region w:st=«on»>China</st1:country-region>,<st1:country-region w:st=«on»>India</st1:country-region> and <st1:country-region w:st=«on»><st1:place w:st=«on»>Brazil</st1:place></st1:country-region>. In the medium to long term, the EU will belooking to increase GDP growth in the central European economies such as <st1:country-region w:st=«on»>France</st1:country-region>, <st1:country-region w:st=«on»>Germany</st1:country-region>and <st1:country-region w:st=«on»><st1:place w:st=«on»>Italy</st1:place></st1:country-region>and stabilize growth in the new Eastern European states to ensure sustainedeconomic prosperity. <span Times New Roman";mso-hansi-font-family: «Times New Roman»;mso-ansi-language:EN;mso-char-type:symbol;mso-symbol-font-family: Symbol">*
Dating back theinitial steps of union or inegration is clear in above statements how EU entityis being built up. It started by three countries and has no last point that cancover enlargement of Euro Zone. European Union tries to get new character ofFederation. However, by analyzing each and single country of EU then we can seethat are not so significant by own, but by unitting into one single entity theyhave cooperation, strong solidarity in front of rest of the world. GDP percapita of new accessed members are not so great but under one entity totalpossession of each member makes a great number that let EU to compete almost inall aspects as a bloc and in such way it is easier to compete and to combat inworld market arena. EuropeanUnion has a large economy, probably slightly larger than that of the UnitedStates of America with a 2005 GDP of 12,865,602 million vs. 11,734,300 million(USD figures) (using nominal US Dollar GDP) according to the InternationalMonetary Fund. Using the purchasingpower parity method of computing GDP, the preferred comparative measure ofeconomic output, the EU and the <st1:place w:st=«on»><st1:country-region w:st=«on»>US</st1:country-region></st1:place>economies are virtually the same size. As the EU has 50% more people than theUS, but produces about the same economically, the average EU citizen enjoys aper capita share of domestic product of about USD $28,100, while in the US theper person GDP is over USD $40,000.It is estimated that in the period 2006-2020 theEuropean Union's economy will grow at an average rate of 2.1% per annum,against the United States growing at an annual rate of almost 3.0%, however ifgrowth is taken per head the figures are 2.5% per annum for the US and 2.0% forthe EU. The EU set itself an objective under the Lisbon Strategy to make theEuropean Union «the world's most dynamic and competitive economy» bythe year 2010, but it is now generally accepted that this target will not bemet. The significant challenges facing the EU economy include demographicissues like a low birth rate and aging population; while important strengthsinclude the expected gains earned through enhanced free trade and high growthin newer EU members in particular.TheEuropean Union's economic growth has been below that of the United States mostyears since 1990, while its unemployment rate has generally been higher. Manypoint out that there are benefits accruing to EU citizens (the «socialwage») that are not visible in traditional economic data — like enhancedtime off from work, social protection and other benefits. In recent years, theeconomic performance of several of its key members, including Germany andItaly, has been a matter of serious concern to policy makers. Population and GDP per capita of EU memberstates and candidates. <span Times New Roman";mso-hansi-font-family: «Times New Roman»;mso-ansi-language:EN;mso-char-type:symbol;mso-symbol-font-family: Symbol">*
If considered asingle unit, the European Union has the largest economy in the world with a 2004GDP of 11,723,816 million USD using PPP equivalence. The EU economy is expectedto grow further over the next decade as more countries join the union —especially considering that the new states are usually poorer than the EU average,and have the capacity to grow at a high rate. The European Council publishedestimations on 17 November 2005 that the economy of the European Union willhave grown approximately 1.5% in 2005 (1.3% in the eurozone),and 2.3% 2006(2.1% in the eurozone) comparing favorably to earlier low growth predictions.In the year of 2006 the eurozone made 4-5 milion new jobs. The European Councilis hopeful that the European Union will grow further in 2006 and in 2007 (2.1%2006 2.4% 2007). <st1:place w:st=«on»><st1:country-region w:st=«on»>Germany</st1:country-region></st1:place>,the largest economy in the EU, will grow about: 0.8% 2005, 1.2% 2006 and 1.6%2007. After extremely slow growth, it seems that the EU will grow again in thenext couple of years.
EU member states have agreed a program called Agenda2010 which aims at making «the EU the world's most dynamic and competitiveeconomy» by 2010.
I think that Europeanintegration has a great impact to its members almost in all aspects. Some informationabove explains the beginning of EU and its economic integration condition,which is one of the leading and most successful economies on the planet. Today25 countries of EU became together to be stronger and to have competitiveadvantage in market place and in the world arena. Member states joined to be inunion and to be in unison almost in each and every act. As we analyze past timewe can see that they had conflict and war between each other. However,situation that we see today is phenomenon and it fascinated whole world asthose countries created Single Market and new currency of EURO appeared in halfof international transactions in the world. Mostly all states have adopted EUROcurrency as an official currency of European Union. Such achievement took along time and much efforts put with particular stages that used by states toimprove relationship and membership. European Union has achieved four stagesand last and further stage is Political Union which is not achieved yet. Thisis last and most advanced stage in process. Stages of Economic Integration areexplained below after explanation of Single Market. Singlemarket (Treaty of Rome 1957)Many ofthe policies of the EU relate in one way or another to the development anmaintenanceof an effectivesingle market. Significant efforts have been made to create harmonizedstandards – which are designed to bring economic benefits through creatinglarger, more efficient markets.The power of the single market reaches beyond theEU borders, because to sell within the EU, it is beneficial to conform to itsstandards. Once a non-member country's factories, farmers and merchants conformto EU standards, much of the cost of joining the union has already been sunk.At that point, harmonizing domestic laws in order to become a full member isrelatively painless, and may create more wealth through eliminating the customscosts. The single market has both internal and external aspects:
Theoriginal Rome of Treaty quite clearly provided for the creation of a commonmarket.
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Calledfor the elimination o internal trade barriers·<span Times New Roman"">
Providedfor the creation of a common external tariff·<span Times New Roman"">
Requiredthe member states to abolish obstacles to the free movement of factors. Inorder to facilitate this free movement of goods, services and factors ofproduction·<span Times New Roman"">
Providedfor any necessary harmonization of member state lawsTheTreaty of Rome is one of the treaties that forms the Community of EuropeanMember Sates known today as the EU. The main objective of the original Treatywas to achieve a single integrated market possessing the followingfeatures:
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Freemovement between Member States of goods, unimpeded by customs duties andquantitative restrictions;·<span Times New Roman"">
Freemovement of labor;·<span Times New Roman"">
Freemovement of services;·<span Times New Roman"">
Freemovement of capital;·<span Times New Roman"">
Tradeprotection where appropriate against non-Member countries by way of a commonexternal tariff, ie a customs barrier, so that the same duty would be levied ongoods coming into the Community regardless of which Member State imported the.In 1957 the governments of <st1:country-region w:st=«on»>France</st1:country-region>, <st1:country-region w:st=«on»>West Germany</st1:country-region>, <st1:country-region w:st=«on»>Italy</st1:country-region>,the <st1:country-region w:st=«on»>Netherlands</st1:country-region>, <st1:country-region w:st=«on»>Belgium</st1:country-region> and <st1:country-region w:st=«on»><st1:place w:st=«on»>Luxembourg</st1:place></st1:country-region> signed the Rome Treaty.In so doing they agreed to create what came to be known as the Common Marketor, more accurately, the <st1:place w:st=«on»>European Economic Community</st1:place>.That institution has remained the movement towards closer union and economic integrationin <st1:place w:st=«on»>Europe</st1:place>. It was course accompanied by thecreation of Euratom and had indeed been preceded by the European Coal and SteelCommunity of 1951. <span Times New Roman";mso-hansi-font-family: «Times New Roman»;mso-ansi-language:EN;mso-char-type:symbol;mso-symbol-font-family: Symbol">*
STAGES OFECONOMIC INTEGRATION
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Thereare stages which brought impact to the development of EEC. These stages came toexistence after Treaty of Rome.Economic integration can take various formsand these can be ranged in a spectrum in which the degree of involvement of theparticipating economies, one with another, becomes greater and greater.
1.<span Times New Roman""> The free trade area is the least onerousin terms of involvement. It consists of an arrangement between states in whichthey agree to remove all customs duties and quotas on trade passing betweenthem. Each party is free, however, to determine unilaterally the level ofcustoms duties on imports coming from outside area. It is first step towardimprovement of economy. Several countries agreed to sell freely from onecountry to another. For example; NAFTA, OPEC, ASEAN and last is EFTA, whichbelongs to EU.
2.<span Times New Roman"">
The next stage is Customs Union. Heretariffs and quotas on trade between members are also removed but in additionthe members agree to apply a common level of duty on goods entering the unionfrom without. The latter is called the common customs, or common external,tariff.3.<span Times New Roman"">
Next come the Common Market which is onlyone Common Market in the world belong to EU. Single Market is known as CommonMarket too, it has freedom in following;·<span Times New Roman"">
Freedomof Labor·<span Times New Roman"">
Freedomof Capital·<span Times New Roman"">
Freedomof Persons·<span Times New Roman"">
Freedomof GoodsAnd this technical term implies that tothe free movement of goods within the customs union is added the free movementof the factors of production-labor, capital and enterprise.
4.<span Times New Roman"">
Finally there is the economic union. Thisis a common market in which there is also a complete unification of monetaryand fiscal policy. There would be a common currency which would be controlledby a central authority and in effect the member states would become regionswithin union. Euro is the officialcurrency of EU. This stage is the further step in their stages for time being.EU has aim to include Political Union which is lies behind all these stages.However, for this time is not achievable. Once they gain it will carry a characterof Federation of EU.
The Single European Act 1986
The Single European Act was a documentsigned in 1986 by the heads of state and later ratified by the parliaments ofall Member States. It made the first post-signature amendments to the Treaty ofRome. The complete Act came into force in July 1987, although some sectionstook effect earlier. It was enacted in the <st1:place w:st=«on»><st1:country-region w:st=«on»>UK</st1:country-region></st1:place> in the European Communities Act1986.
TheSEA aimed to provide impetus towards achieving the objectives of the originalEC treaties, which were;
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Totransform the relations between Member States into a real European Union;·<span Times New Roman"">
Toachieve a common foreign policy;·<span Times New Roman"">
Topromote democracy;·<span Times New Roman"">
Tospeak with one voice;·<span Times New Roman"">
Toprotect the EC’s freedoms and human rights;·<span Times New Roman"">
Toextend common policies;·<span Times New Roman"">
Tofacilitate the Commission’s exercise of its powers;·<span Times New Roman"">
Towork towards economic integration via Economic and Monetary Union (EMU);·<span Times New Roman"">
Towork towards the protection of the general and working environment.Besidesproviding for speeding up the legislative process by introducing qualifiedmajority voting, the SEA set out the common intention that the EC shall have asits objective to contribute together to making concrete progress towardsEuropean Union. <span Times New Roman";mso-hansi-font-family:«Times New Roman»; mso-ansi-language:EN;mso-char-type:symbol;mso-symbol-font-family:Symbol">*
<st1:City w:st=«on»><st1:place w:st=«on»>Maastricht</st1:place></st1:City>Treaty (Treaty on European Union)
TheTreaty on European Union (TEU) 1992 was for many the logical progression fromthe completed Internal Market. ThisTreaty (known as Maastricht Agreement) marked a new stage in the process ofcreating an ever closer union among the peoples of <st1:place w:st=«on»>Europe</st1:place>,where decisions are taken as closely as possible to citizens. The TEU concernedinstitutional reform and political union, together with the necessaryamendments to the Rome Treaty, extending majority voting and strengthening theEuropean Parliament. It incorporated the principle of Economic and MonetaryUnion (EMU), including issue of the single European currency and provisionsrelating to security.
Aimsof TEU;
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thepromotion of an international identity leading possibly to a common defensepolicy·<span Times New Roman"">
theestablishment of a single currency in the context of Economic and MonetaryUnion (EMU)·<span Times New Roman"">
reinforcementof environmental protection·<span Times New Roman"">
afund to promote cohesion in the context of economic and social progress,including improvement in the quality of life·<span Times New Roman"">
theestablishment of common citizenship<span Times New Roman";mso-hansi-font-family:«Times New Roman»; mso-ansi-language:EN;mso-char-type:symbol;mso-symbol-font-family:Symbol">*
(TheTreaty of Rome, Single European Act and Maastricht, Sixth edition of EC/EU fact book Alex Roney p. 14)·<span Times New Roman"">
thefacilitation of free movement of people, not forgetting their safety andsecurity <span Times New Roman";mso-hansi-font-family:«Times New Roman»; mso-ansi-language:EN;mso-char-type:symbol;mso-symbol-font-family:Symbol">*<span Times New Roman";mso-hansi-font-family:«Times New Roman»;mso-ansi-language: EN;mso-char-type:symbol;mso-symbol-font-family:Symbol">*RELATION OF <st1:place w:st=«on»><st1:country-region w:st=«on»>TURKEY</st1:country-region></st1:place>AND EU
Firstly, I want to say that EU has some otherofficial candidates which is <st1:place w:st=«on»><st1:country-region w:st=«on»>Croatia</st1:country-region></st1:place>.It hopes to join in 2009. Also, <st1:PlaceType w:st=«on»>Republic</st1:PlaceType>of <st1:PlaceName w:st=«on»>Macedonia</st1:PlaceName> has been given officialcandidate status as of December 2005 under the name "<st1:place w:st=«on»><st1:country-region w:st=«on»>former Yugoslav Republic of Macedonia</st1:country-region></st1:place>".
<st1:country-region w:st=«on»>Turkey</st1:country-region>and EU relations can be dated back as faras 1959, when <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>applied for an association with the European Commission, thus on year after theenforcement of the Treaty of Rome. <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>is an official candidate to join the European Union. The Ankara Agreement whichwas signed in 1963. Additional protocol was also signed in 1970 which underlinedtwo main documents. The first time was to ensure future <st1:country-region w:st=«on»>Turkey</st1:country-region>’s Custom Union with EU, whiles the secondwas to find modalities to ensure <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>’s full membership with theEU. It must be noted that <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>’slong term dream of having Customs Union with the EU became a reality on 1stJanuary.1996. In spite of the fact that <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place> is the only country to havereached such an advanced stage with the EU without necessary becoming fullmember it took then 32 years. This delay was mainly due to;
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Thehuge economical gap existing between <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place> and the EU at that time·<span Times New Roman"">
Alsobecause of <st1:country-region w:st=«on»>Turkey</st1:country-region>’s militaryintervention with <st1:place w:st=«on»><st1:country-region w:st=«on»>Greece</st1:country-region></st1:place>between 1960 and 1980s.According to the Article 24 of theGATT, <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>now can import and export goods to and from EU without any restriction.However, <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>should also apply the union’s common trade policy in dealing with othercountries outside the EU. For the time been, the Customs Union covers onlyindustrial and processed agricultural products, plans are, however, in advanceto add traditional Agricultural products pending Turkey’s adaptation to theEU’s Common Agricultural policy.
Turkey-EU association relations that guided <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>’sforeign economic and commercial relations were culminated with theestablishment of the Customs Union. The completion of the Customs Union is themost important development effecting Turkish economy since adoption ofliberalization measures by the 1980s. The Customs Union with the EU is the mostcomprehensive element that contributes to strengthening <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>’s expanding role as abusiness partner.
An important feature of the Turkey-EU CustomsUnion is that <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>is the first and only country to enter into such an advanced form of economicintegration without being a full member. As it is a unique case for the EU,there are several issues other than tariff reductions where <st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place> and the EU agree tocooperate.
<st1:place w:st=«on»><st1:country-region w:st=«on»>Turkey</st1:country-region></st1:place>started preliminary negotiations on 3October 2005. However, analysts believe 2015 is the earliest date the countrycan join the union due to the plethora of economic and social reforms it has tocomplete. Since it has been granted official candidate status, <st1:country-region w:st=«on»>Turkey</st1:country-region> has implemented permanent policies onhuman rights, abolished the death penalty, granted cultural rights to its largeKurdish minority, and taken positive steps to solve the <st1:place w:st=«on»><st1:country-region w:st=«on»>Cyprus</st1:country-region></st1:place> question. However, due toits religious and cultural differences, <st1:country-region w:st=«on»>Turkey</st1:country-region>faces strong opposition from governments of some member states, including <st1:country-region w:st=«on»>France</st1:country-region>, <st1:country-region w:st=«on»>Germany</st1:country-region>,<st1:country-region w:st=«on»>Austria</st1:country-region> and <st1:place w:st=«on»><st1:country-region w:st=«on»>Cyprus</st1:country-region></st1:place>.The Greek government has supported in principle the Turkish candidacy, while inpractice linking its progress with the resolution of the long standing <st1:place w:st=«on»><st