Slide Slide 1 Amy Medearis, Senior Economist Amy Medearis, Senior Economist Delegation of the European Commission to the United States Delegation of the European Commission to the United States From Europe to the Euro From Europe to the Euro Amy Medearis Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States Euro Challenge 2009 Faculty Orientation New York, NY November 25, 2008 EUROPEAN UNION Delegation of the European Commission
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Slide 1 Amy Medearis, Senior Economist Delegation of the European Commission to the United States From Europe to the Euro Amy Medearis Senior Economist,
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Slide Slide 11Amy Medearis, Senior EconomistAmy Medearis, Senior EconomistDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States
From Europe to the EuroFrom Europe to the Euro
Amy MedearisSenior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Euro Challenge 2009 Faculty Orientation New York, NY
November 25, 2008
EUROPEAN UNIONDelegation of the European Commission
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 22
From Europe to the EuroFrom Europe to the Euro
- Brief HistoryThe Single MarketEnlargementThe Euro
- EU versus Euro Area
- Why Care?
Slide Slide 33Amy Medearis, Senior EconomistAmy Medearis, Senior EconomistDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States
A Brief History of the EU:A Brief History of the EU:Deepening and WideningDeepening and Widening
Political goals, Economic stepsPolitical goals, Economic steps
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 44
A Brief History of the European UnionA Brief History of the European Union
The original goal behind the integration of Europe was to prevent the devastating wars of the first half of the
twentieth century from ever happening again…
Dresden, Germany, 1945.
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 55
March 1957Rome TreatiesEuropean Economic Community (EEC)European Atomic Energy Community (EURATOM)
1950 2007
A Brief History of the European UnionA Brief History of the European Union
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 66
1973United Kingdom, Ireland and Demark
1950 2007
A Brief History of the European UnionA Brief History of the European Union
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 77
1981Greece
1950 2007
A Brief History of the European UnionA Brief History of the European Union
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 88
1986Spain and Portugal
1950 2007
Same year: the “Single European Act” was signed, revising the
Treaty of Rome and re-launching European
Integration and the completion of the internal market
A Brief History of the European UnionA Brief History of the European Union
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 99
1989Fall of the Berlin Wall
1950 2007
“Hidden enlargement” E. Germany
A Brief History of the European UnionA Brief History of the European Union
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1010
1992“Deadline” for completing the single market (Dec. 31, 1992)
1950 2007
A Brief History of the European UnionA Brief History of the European Union
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1111
1993Maastricht Treaty
1 2 3TREATIES
1950 2007
Treaty of European Unionestablished 3 pillars
of cooperation: Economic (EMU),Political, Judicial
A Brief History of the European UnionA Brief History of the European Union
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1212
1995Austria, Finland and Sweden
1950 2007
A Brief History of the European UnionA Brief History of the European Union
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1313
1999EURO launched
1950 2007
A Brief History of the European UnionA Brief History of the European Union
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1414
May 1, 2004CyprusThe Czech RepublicEstonia HungaryLatviaLithuaniaMaltaPolandThe Slovak RepublicSlovenia
Jan. 1, 2007RomaniaBulgaria
1999EURO launched
1950 2007
A Brief History of the European UnionA Brief History of the European Union
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1515
Decision-Making in the EUDecision-Making in the EU
European Commission
Council of the EU
European Parliament
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1616
The goals of EU enlargementThe goals of EU enlargement
To spread stability, peace, democracy, freedom
To make the EU stronger than the sum of its parts
To strengthen and sustain the European
social model/s To realize the potential of significant
economic opportunities in the form of a larger market
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1717
Economic Benefits and Challenges of EnlargementEconomic Benefits and Challenges of Enlargement
EU 27 100
Euro area 107Cyprus 91Slovenia 83Czech Republic 75Malta 74Hungary 64Slovakia 57Estonia 56Poland 51Lithuania 51Latvia 46Romania 34Bulgaria 33
It is estimated that It is estimated that the enlargement the enlargement of 2004 will have of 2004 will have added added
1.0%-1.8% per 1.0%-1.8% per year to the GDP of year to the GDP of the 10 new the 10 new Member States Member States (1994-2009), and a (1994-2009), and a cumulative 0.5-cumulative 0.5-0.7% to GDP of 0.7% to GDP of the EU-15.the EU-15.
2004 GDP per capita in PPS, EU25=1002004 GDP per capita in PPS, EU25=100
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1818
27 EU Member States (FYI)27 EU Member States (FYI)
Austria, Belgium, Bulgaria,Cyprus, Czech Republic,Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1919
The Single MarketThe Single Market
Based on Four Freedoms:– Free movement of goods;– Free movement of capital;– Free movement of persons;– Free movement of services.
Impact: GDP boosted by nearly €900 billion over 10-year period 1992-2002 (over $1 trillion) and 2.5 million jobs created from the single market alone.
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2020
The Single MarketThe Single Market
More than a free trade area:• Free trade area: no tariffs on traded goods inside FTA• Customs Union (1968): FTA + common external tariff• Single (or Internal) Market (1992): breakdown of all
tariff and non-tariff barriers to trade and business
Benefits of the Single Market: increased prosperity; more jobs; easier
travel; more opportunities to live, work and study in other EU countries; wider choice of products and services; lower prices; less red tape; huge potential market
(economies of scale); easier to do business.
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2121
The Euro has boosted economic integration within the Euro Area (trade, foreign direct investment, and financial services)
The EuroThe Euro
One market, one money?
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2222
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2323
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2424
The euro area (13) versus EU (27)The euro area (13) versus EU (27)
Euro area:Euro area: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovakia*, Slovenia, Spain
EU Member States obliged to adopt EU Member States obliged to adopt the euro eventually:the euro eventually: Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Sweden
EU Member States with an “opt out” from adopting the euro: Denmark, UK
* Slovakia will adopt the euro 1/1/09
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2525
Why teach about the EU? The European economy? Why teach about the EU? The European economy? The Euro?The Euro?
1. Europe is a major player in the global economy
2. It is the most important trade and investment partner for the United States
3. Common challenges (e.g., related to globalization and ageing)
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2626
EU-US Economic RelationsEU-US Economic Relations
The European Union's 27 members represent just 7% of the world's population, but they account for more than one-fifth of
world trade.
– Transatlantic flows of trade and investment amount to around $1 billion a day
– jointly, US and EU global trade accounts for almost 40% of world tradethe largest bilateral trade partnership in the world!
– Together, EU and US make up nearly 40% of global output (GDP) and are drivers of global economic policy.
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2727
Common Interests and ProblemsCommon Interests and Problems
EU & US have common values in democratic government, human rights and market economics, and they are bound by addressing global challenges (i.e. security/terrorism & sustainable development)
Common economic issues, such as financial reform; ageing populations; need for budgetary savings; global competitiveness; immigration
Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2828
FOR MORE INFO . . .FOR MORE INFO . . .
For additional resources to For additional resources to prepare for the Euro Challenge:prepare for the Euro Challenge:
www.euro-challenge.org
For more information on the For more information on the European Union in the USEuropean Union in the US, please , please visit: visit: www.eurunion.orgwww.eurunion.org
To access EUROPA, the To access EUROPA, the EU’s EU’s official web portalofficial web portal, please visit: , please visit: http://ec.europa.eu/http://ec.europa.eu/