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THE POLITICAL ECONOMY OF THE EUROPEAN UNION
2014 FALL SEMESTER
Instructor: Prof. László CSABA, Member of the Hungarian Academy
of Sciences and of Academia Europaea/London
Course description
This is an MA course, open to interested PhD students for additional
assignments along CEU standards and practices. It addresses the history,
institutional evolution as well as the core policies of the enlarged European
Union, focusing on those relating to money and decision making on areas
involving national and community spending. It analyzes the evolution of the
major policy areas and institutions, with special emphasis on how the Lisbon
Treaty on reforming the EU, and the Pluriannual Financial Framework for
2014-2020 will change the face and functioning of the EU and its policies
against available theories to date.
Aims and Scope
This is a course for motivated MA students, introducing major issues of
European political economy. First: we provide a broad overview of those
EU policies which matter for economic actors, and this in a dynamic
perspective. Second: we aim to supply the relevant knowledge in a
condensed manner. Thus we conduct an intensive and interactive learning
procedure, combining lectures, individual processing of written materials,
oral presentations and classroom debates. Written output is required for the
same reason. Those finishing the class successfully should be able to have an
idea about the major issues and be able to catch up in the future, if and when
new problems/issues emerge. In turn, many insights can and should be
deepened/and contradicted/ by recourse to the recommended literature.
Course Structure
The course describes and interprets the monetary model of integration, the
role of fiscal coordination, the unlimited liquidity provision by the ECB
since 2012 and ESM, implications of the Irish, Portuguese and Greek
crises.. It also covers the past present and future of the major expenditure
areas. The latter include agriculture and rural development, regional
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development, but also the policy areas where common policies exist without
common funds. These apply to such expensive areas as environmental
protection and labor markets. The debates on new, sometimes supra-national
methods of coordination, the new Europe 2020 strategy, and the solutions to
problems of decision-making are discussed.. Enlargement is though a major
undercurrent, but this is not an enlargement class. Background in
macroeconomics, international finance and trade is though a positive
advantage, however, this is not a prerequisite for taking the class.
This course is composed of a mixture of lectures and seminars. The two do
not necessarily overlap, neither with the details discussed in the required
readings. Independent processing of the latter is presumed, i.e it does not
take place in the classroom. Regular and active participation is required/you
may miss any occasion on prior notice only/. Interactive participation on the
seminars, where typically recommended readings are processed is a
precondition for obtaining a grade. Seminar presentations should be made by
choosing one item from the list of recommended readings, maximum 3
presentations per seminar. Points of clarification of details are ideally
performed by attending the office hours/prior registration is required. Use of
mobile phones, laptops and tablets in class is not allowed.
Methods of Assessment
Regular and active participation in each of the classes and successful
processing of the written materials are the preconditions for the grade.
Besides regular attendance each participant – also those for audit - must
make an oral presentation/cf above/. For grade you also need to write up a
10 pages/1.5 space, 12 size/ long book review in a format, ideally
publishable in an academic journal. The printout or electronic version must
be submitted by 14 November,2014, Friday, 18.hrs at latest. Those wishing a
grade must also write two closed book quizzes, to be written at 20 October
2014,Monday and81 December 2014, Monday, checking facts and figures.
Exam dates and deadlines are prefixed and nontransferable.
Grading
Attendance and activity: 10 p.c., midterm quiz: 25 p.c.; seminar
presentation: 20 p.c.; book review:20 pc,. final quiz: 25 p.c. Books for
review may be selected by yourselves within the course subject/not only
recommended readings/, and approved by the instructor. Good reviews may
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get published. For a grade improvement additional book reviews might be
taken up on a voluntary base.
Reference volumes/statistical and documentary resources
For those of you not having any background in economics/finance/EU
studies it may make sense to consult regularly one or more of the reference
volumes clarifying the underlying concepts, categories and elementary
facts/vocabulary, since at graduate level no introductory course can be made.
On the various subject matters:
1. European Union/concepts of EU political economy/
de HAAN,J.- OOSTERLOO,S.- SCHOENMAKER,D./2009/: European
Financial Markets and Institutions. Cambridge-N.Y: Cambridge University
Press.
2. Politics, Institutions, Competences: JONES,E. – MENON,A. –
WEATHERIL, S,.eds/2012/: The Oxford Handbook of the European Union.
Oxford-New York: Oxford University Press.
3.Crisis and Crisis Management. a/TANZI,V./2013/: Dollars Euros and
Debt. How We Got into the Financial Crisis, and How We Get Our of
It .New York: Palgrave.
b/ BEREND,T.I./2013/: Europe in Crisis:
Biolt Out of the Blue? London, Routledge.
4. Current and Comparative Data: please use the official website of the
Commission: www.europa.eu as well as the independent website:
www.euractiv.org , for statistics, especially current the website of the
European Central bank: www.ecb.europa.eu/statistics
DETAILED SCHEDULE
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24 Sept, 2014, Wednesday/ACTUAL TEACHING STARTS/
The Monetary Model of European Integration
Required: BELLAMY,R.,/2013/: ‘An ever closer union across the peoples
of Europe’: republican inter-governmentalism and demoicratic
representation within the EU. Journal of European Integration,vol.35. no.5.,
pp499-516.
CSABA,L./2012/: Re-visitng the crisis of the euro-zone:
challenges and options. Zeitschrift für Staats- und Europawissenschaften,
vol.10.no.1,pp 53-77.
Recommended: SPENDZHAROVA,A./2012/: Is more ‘Brussels’ the
solution? New EU Mmeber-states’ preferences about the European financial
architecture. Journal of Common Market Studies, vol.50.no.2.pp314-334..
BLANKENBURG,S.et al/2013/: Prospects for the
eurozone. Cambridge Journal of Economics, vol.37.no.3.,pp463-477.
DARVAS,Zs./2013/: The euro crisis: ten roots but fewer
solutions. In: FARKAS, B.ed: The Aftermath of the Global Crisis in the EU.
Cambridge Scholars Publishing,,pp83-104.
Week of 29 September
Revising Rules-Based Fiscal Policy for Europe: a Solution or a Trap?
Required: KOPITS,G./2012/: Can fiscal sovereignty be reconciled with
fiscal discipline? Acta Oeconomica, vol.62.no.2.,pp141-161.
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BOLTHO,A. – CARLIN,W./2013/: EMUs problems:
asymmetric shocks or asymmetric behavior? Comparative Economic
Studies, vol.55.no.3.pp387-403.
Recommended: de HAAN,J. – GILBERT,N. – HESSEL,J. –
VERKAART,S./2012/: Beyond the Fiscal Compact: How Well-Designed
Eurobonds May Discipline Governments. Zeitschrift für Staats- und
Europawissenschaften, vol.10.no.3.,pp323-337.
MATTHES,J./2014/: Ten misconceptions about current
account imbalances in the Euro area. Intereconomics,vol.49.no.3.pp160-170.
GYŐRFFY,D./2013/: Institutional trust and policy-making
in the EMU. In: GYŐRFFY,D: Institutional Trust and Economic Policy.
Budapest-New York: CEU Press, pp35-57.
Week of 6 October
Labor Markets in the EU: Implications for Integration and
Enlargement
Required: Labor Mobility in the EU: Dynamics, Patterns and
Policies/Forum discussion/. Intereconomics, vol.49.no.3./2014/, pp116 -158.
Recommended: GWIAZDA,A./2011/: The Europeanization of flexicurity:
the Lisbon Strategy’s impact on employment policies in Italy and Poland.
Journal of European Public Policy, vol.18.no.4.,pp 546-565.
KNOGLER,M. – LANKES,F./2012/: Social models in the
enlarged EU: policy dimensions and country classification. Comparative
Economic Studies, vol.54.no.1.,pp149-172.
COPELAND,P. – ter HAAR,B./2013/: A toothless bite?
The effectiveness of the European Employment Strategy as a governance
tool. Journal of European Social Policy,vol.23.no.1.,pp21-36.
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Week of 13 October
Common Agricultural Policy: Foot Dragging, Change and Globalization
Required: DAUBJERG,C./2009/: Sequencing public policy: the evolution
of the CAP over a decade. Journal of European Public Policy,
vol.16.no.3.pp395-411.
Forum Discussion: The CAP after 2013. Intereconomics,
vol.47.no.6. pp. 316 343./available online/.
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Recommended: CUNHA,A.-SWINBANK,A./2009/: Explaining the
determinants of CAP reform: a Delphi analysis. Journal of Common Market
Studies, vol.47.no.2.,pp235-261.
ANDERSON,K. – RAUSSER,G. – SWINNEN,J./2013/:
Political economy of public policies: insights from distortions to agricultural
and food markets. Journal of Economic Literature, vol.51.no.2.pp423-477.
CSÁKI,Cs. – JÁMBOR,A./2013/: The impact of EU
accession on the agriculture of the Visegrád countries. Society and
Economy, vol35.no.3.pp343-364.
20 October, Monday: Midterm Quiz
22 October/lecture and seminar/
Cohesion Policies in the EU : Poetry and Reality
Required: TOSUN, J./2014/: Absorption of regional funds: a comparative
analysis. Journal of Common market Studies, vol.52.no.2.pp371-387.
FERRY,M. –McMASTER, I./2013/: Cohesion policy and the
evolution of regional policy in central and eastern Europe. Europe-Asia
Studies, vol.65.no.8.pp1502-1528.
Recommended:
BLOOM,S. - PETROVA,V./2013/: National
subversion of supranational goals: ‘pork-barrel’ politics and EU regional aid.
Europe-Asia Studies, vol.65.no.8.,pp.1599-1620..
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COSTA-I –FONT,J./2014/: Furthering subcentral autonomy in Europe? The roles of identity and re-distribution.
Intereconomics, vol.49.no.1.pp36-45.
COLOMBO, A.ed/2012/: Subsidiarity
Governance.New York etc: Palgrave/select one chapter for review!/.
Week of 27 October
The EU in the Transatlantic Trade Conflict
Required: de BIEVRE,D. and POLETTI,A./2014/: The EU in trade policy:
from regime sharper to status quo power. In: FALKNER, G. and MÜLLER,
P.eds,: EU Policies in Global Perspective. London: Routledge, pp20-37.
Da CONCEICAO-HELDT,E./2014/: When speaking with a
single voice is not enough: bargaining power asymmetry and EU external
effectiveness in global trade governance. Journal of European Public Policy,
vol.21.no.4.pp980-995.
Recommended: da CONCEICAO-HELDT,E./2011/: Variation in EU
member-states’ preferences and the Commission’s discretion in the Doha
Round. Journal of European Public Policy, vol.18.no.3.,pp 403-419.
KEUKELIERE,S. – HOOLMAYERS,B./2014/: The
BRICs and other emerging alliances and MOs in the Asia-pacific: challenges
for the EU and its view on multilateralism. Journal of Common market
Studies, vol.52.no.3.pp 582-599.
ALONS,G./2014/: Farmers vs ideas: explaining the
continuity in French agricultural trade policy during the GATT Uruguay
Round. Journal of European Public Policy, vol.21.no.2.pp 286 – 302.
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Week of 3 November
Environmental Policy in the EU: Sandwiched Between Enlargement
and the Single Market?
Required: HOLZINGER, K. – SOMMERER, Th./2014/: EU environmental
policy: greening the world? In: FALKNER, G. and MÜLLER,P., eds: EU
Policies in a Global Perspective. London: Routledge, pp111 – 129.
KAUTTO,P./2009/: Nokia as an environmental policy actor:
evolution of collaborative corporate policy activity in a multinational
company. Journal of Common Market Studies, vol.47.no.1.pp103-125.
Recommended: BAUN ,M. – MAREK,D./2013/: The implementation of
EU environmental policy in the Czech Republic: problems with postaccession compliance? Europe-Asia Studies, vol.65.no.10.pp1877-1898.
ANDONOVA,L. – TUTA,I./2014/: Transsnational
networks and path to EU environmental compliance: evidence from NMS.
Journal of Common market Studies, vol.52.no.4.pp775 – 793.
Week of 4 November
Europe 2020 and Financial Crisis Management: an Odd Couple
Required: CSABA,L./2013/: On the new economic philosophy of crisis
management in the EU. Society and Economy, vol.35.no.2.pp121-139.
MÜGGE,D./2014/: Europe’s regulatory role in post-crisis global
finance. Journal of European Public Policy, vol.21.no.3. pp316-326.
WEBER, Ch. – FORSCNER,B./2014/: ECB: independence at
risk? Intereconomics, vol.49,.no.1., pp45-50.
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Recommended: CSABA,L./2009/: Unintended consequences of crisis
management. Zeitschrift für Staats- und Europawissenschaften, vol.7.nos/34/,pp450-470.
GYŐRFFY,D./2013/: Financial crisis in the EU-25. In:
GYŐRFFY,D: Institutional Trust and Economic Policy .Bp-NY: CEU Press,
pp147-176.
DAIANU,D./2012/: The euro-zone crisis and EU
governance: tackling a flawed design and inadequate policy arrangements.
Acta Oeconomica, vol62.nos/2-3/.
TOSUN, J.et al./2014/: The EU in crisis: advancing the
debate. Journal of European Integration, vol.36.no.3.pp 195-211.
Week of 17 November
The State of the Union
Required: CSABA, L./2OO9/: The state of the Union: revival or all
problems swept under the carpet? In: CSABA, L.: Crisis in Economics?
chapter 6. Budapest: Akadémiai, pp138-156.
GOCAJ, L. – MEUNIER,S./2013/: Time will tell: the ESF, the
ESM and the euro-crisis. Journal of European Integration, vol.35. no.3,,
pp239-253.
Recommended: COPELAND,P./2014/: Central and eastern Europe:
negotiating influence in an enlarged Union. Europe-Asia Studies,
vol.66.no.3.pp467-487.
CHANG,M./2013/: Fiscal policy coordination and the
future of the community method. Journal of European Integration,
vol.35.no.3.pp 255-269.
AALTO,P. – TEMEL,D.K./2014/: European energy
security: natural gas and the integration process. Journal of Common market
Studies, vol.52.no.4.pp 758 -774.
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Week of 24 November
Enlargement and Its Consequences
Required: EPSTEIN,R. A./2014/: Overcoming ‘economic backwardness
‘ in the EU. Journal of Common Market Studies, vol.52.no.1.pp 17-32.
CSABA,L./2OO9/: A premature enlargement? In: CSABA,L.:
Studies in European Political Economy, chapter 5.
Recommended: GANEV,V./2013/: ‘Post-accession hooligansim’:
democratic governance in Bulgaria and Romania after 2007. East European
Politics and Societies, vol.27.no.1.pp26-44.
BALÁZS,P./2014/: EU-36: the impact of EU enlargement
on institutions. In: BALÁZS,P.ed: A European Union with 36 Members?
Perspectives and Riskis. New York etc: CEU Press, pp.227- 256.
NENOVSKY,N.et al/2013/: Monetary regimes, economic
stability and EU accession: comparing Bulgaria and Romania. Communist
and Post-Communist Studies, vol.46.no.1.pp13-23.
Week of 1 December
The Future of the European Union in the Global Political Economy
Required: FALKNER,G. – MÜLLER,P./2014/: Comparative analysis: EU
as a policy exporter? In: FALKNER,G. and MÜLLER, P.,eds,: EU Policies
in Global Perspective. London: Routledge, pp205-229.
CSABA,L./2014/: Developmental perspectives on Europe.
Society and Economy, vol.36.no.1.pp21 – 36.
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Recommended: VISVIZI,A./2012/: The crisis in Greece and the EU-IMF
Rescue Package determinants and pitfalls. Acta Oeconomica,
vol.62, .no.1.pp15-40.
SMITH,M./2013/: Beyond the comfort zone: internal crisis
and external challenge in the European Union’s response to rising powers.
International Affairs /Chatam House, vol.89.,no.3.pp653-671.
HOLLIS,R./2012/: No friend of democratization: Europe’s
role in the genesis of the ‘Arab Spring’. International Affairs,
vol.89.no.1.pp81-94.
JOVANOVIC,M./2013/: Was European integration nice
while it lasted? Journal of European Integration, vol.28.no.1.,pp1-36.
8 December,2014, Monday: Final Quiz
Notes: All sources are available in the original at CEU Library, most of
them also online. Assignments cannot be saved, transferred or negotiated.
Deadlines are fixed. Thus any delay triggers automatically a five per cent
minus of the final grade per day. In case of exceptional circumstances, such
as illness testified by a medical doctor, prior agreement of the instructor is
to be obtained/there is a round the clock answering machine at the
department, 327-30-17, or via e-mail: csabal@ceu.hu /. The book review and
quizzes are to be written in conformity with CEU regulations including
ethical standards and academic writing requirements. Double submission
and plagiarism/including inadequate referencing/ will be severely penalized.
The book reviews are meant to test your independent analytical ability on a
freely chosen topic within the course subject, however in identifying the
book to be reviewed prior approval of the instructor is needed. Qiuzzes
check facts and figures/two analytical and five factual, short questions,
closed book format/, in writing. All participants/also for audit/ must make
one oral presentation in the seminar. To obtain an A these must be selected
from among the recommended reading. All assignments, petitions, second
readings etc must be definitively concluded by 17 December, 2014,
Wednesday, 18 hrs.
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Consultations: preferably before and after class and also during office
hours, Mondays and Wednesdays 17-19 hrs, room FT 304/sign up sheet
available and needed/. In case of exceptional circumstances you may want to
use the e-mail and/or ask for a special appointment. In case of doubt please
do not hesitate to raise the issues before exam/deadline etc. The
departmental phone is 327-30-17, fax 327-32-43, my email: csabal@ceu.hu ,
my personal website for further downloadable materials: www.csabal.com
Budapest, 14 July, 2014.
Prof. László CSABA/IRES