Economic integration

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Under economic integration and market integration processes which, in several markets (eg. As the German and French steel market) to a wider market (eg. As a European steel market) merge (integration as a process ). The term is also used to characterize the extent to which this unity is established (integration as a state ), and also as a goal (integration as a goal ). Understanding integration as a process, state and goal, depending on the point of view, illustrates the great ambivalence of this term.

Economic integration represents an economic amalgamation of several countries to promote international business transactions. It is an international regulatory policy; The clearest feature of this union is the creation of an (international) organization with its own organs. The starting point is always an international agreement between the member states involved. Ideally, the actors (member states) in the treaty transfer the competencies required for the relevant integration step (topics, areas of responsibility = so-called policies) to the new bodies.

Economic integration can be global or regional (related to a neighboring group of states). The EU is considered to be the most successful model of regional economic integration worldwide. From the establishment of the Coal and Steel Community (ECSC) on April 18, 1951, today's EU has gone through various stages of economic integration, beginning as a free trade area , then from July 1, 1968 customs union , subsequently common market , later internal market , then in parts economic union up to monetary union .

aims

1. Economic objectives: To promote economic growth based on the international division of labor. In the foreground is the theory of the comparative cost advantages according to David Ricardo , whereby the states concentrate on the production of the products in whose production process they have the (comparatively, but not necessarily absolute) greatest cost advantage. In return, they exchange these products for goods with which they have comparatively the greatest disadvantages.

2. Non-economic goals: The focus is on securing (international) peace, which is increasingly being overshadowed by efforts to create indissoluble (pre-) federal ties (political union).

Levels of integration

Economic integration processes are typically divided into several levels, which, however, are not necessarily run through in sequence in the case of integration processes:

1. Preference zone: Differentiation of trading conditions compared to individual trading partners
2. In a free trade area based on a free trade agreement , internal duties and tariff barriers to trade in the countries involved are abolished, but only for goods produced within the free trade area. In trade with third countries, the countries continue to set their own customs duties. In order to prevent misuse, the goods are provided with certificates of origin so that countries with a high tariff rate can trace where the goods came from. This enables post-customs clearance, but means that border controls are still necessary. Examples: European Free Trade Association , North American Free Trade Agreement
3. In a customs union , a common customs policy towards third countries is also implemented. Certificates of origin are not required. Examples: European Economic Community , Mercosur
4. In a common market , in addition to the customs union, non-tariff trade barriers (e.g. standards, laws) are dismantled so that a common goods market is created on the output side. On the input side of the common market, the barriers to services, labor and capital will be removed. Example: European single market
5. In an economic union , on the one hand, sectoral economic policy (for example in agriculture) is coordinated or even standardized. Example: EU common agricultural policy .
6. In a currency union , the exchange rates are fixed permanently , with simultaneous full convertibility or the introduction of a common currency. Example: European Monetary Union

Example: how the EU works

These individual steps were taken in the EU by jointly defining policies. The third part of the Treaty on the Functioning of the European Union (TFEU) provides: The internal policies and measures of the Union with Art. 26–197 TFEU provide a comprehensive picture of these policies.

• Title I. The Internal Market , Articles 26-27
• Title II. Free movement of goods , Articles 28–37
  • Chapter 1. The Customs Union , Articles 28–32
  • Chapter 2. Customs cooperation, Art. 33
  • Chapter 3. Prohibition of quantitative restrictions between member states, Articles 34–37
• Title III. Agriculture and fishing, Articles 38–44
• Title IV. Freedom of movement, the free movement of services and capital, Art. 45–66
  • Chapter 1. The Workers, Art. 45–48
  • Chapter 2. The right of establishment, Art. 49–55
  • Chapter 3. Services, Art. 56–62
  • Chapter 4. Capital and payment transactions, Art. 63–66
• Title V. The area of ​​freedom, security and justice, Articles 67–89
• Title VI. Traffic, Art. 90-100
• Title VII. Common rules on competition, tax issues and approximation of laws, Art. 101–118
  • Chapter 1. Competition rules, Art. 101-109
    • Section 1. Regulations for companies, Art. 101-106
    • Section 2. State aid, Articles 107-109
  • Chapter 2. Tax regulations, Articles 110–113
  • Chapter 3. Approximation of legal provisions, Art. 114–118
• Title VIII. Economic and Monetary Policy, Articles 119–144
  • Chapter 1. Economic Policy, Articles 120–126
  • Chapter 2. Monetary Policy, Art. 127-133
  • Chapter 3. Institutional provisions, Articles 134–135
  • Chapter 4. Special provisions for member states whose currency is the euro, Art. 136-138
  • Chapter 5. Transitional provisions, Art. 139–144
• Title IX. Employment, Art. 145–150
• Title X. Social Policy, Art. 151–161
• Title XI. The European Social Fund, Art. 162–164
• Title XII. Education and training, youth and sport, Art. 165–166
• Title XIII. Culture, Art. 167
• Title XIV. Health Service, Art. 168
• Title XV. Consumer protection, Art. 169
• Title XVI. Trans-European Networks, Art. 170–172
• Title XVII. Industry, Art. 173
• Title XVIII. Economic, social and territorial cohesion, Articles 174–178
• Title XIX. Research, technological development and space travel, Articles 179–190
• Title XX. Environment, Articles 191–193
• Title XXI. Energy, Art. 194
• Title XXII. Tourism, Art. 195
• Title XXIII. Civil protection, Art. 196
• Title XXIV. Administrative cooperation, Art. 197

This list illustrates the almost 60 years of thematic completion of the sequence of stages of integration. What in the Coal and Steel Community began as a common market for coal and Steel Community (ECSC), continued with the European Economic Community (EEC) in 1958 as the Common Market for all industrial goods and agricultural products continued. Initially, the focus was on real economic integration with the aim of the highest possible convergence of the individual economies of the member states; from the mid-1980s, efforts were made towards monetary integration with the aim of a European Economic and Monetary Union (EMU).

Other types of integration

Basically, one can differentiate between the functional and the institutional method of economic integration.

• In a preference zone, the tariffs for certain goods will be reduced. This can also be done unilaterally. One example is the EU's preferential tariffs for the African-Caribbean-Pacific group of states (former colonial states of EU states)

• In a common market organization , sector-specific, uniform economic framework conditions are created (e.g. EU agricultural market)

• In a political union there is also a common constitution which includes the communitarisation of the most important political fields, in particular foreign , defense , currency and foreign trade policy .

literature

• Jürgen E. Blank, Hartmut Clausen and Holger Wacker: International economic integration: from the free trade zone to economic and monetary union. Munich 1998, ISBN 3-8006-2199-1 .
• Wolfgang Eibner: International Economic Integration: Selected International Organizations and the European Union. Munich / Vienna 2008, ISBN 978-3-486-58473-8 .
• Wulfdiether Zippel (Hrsg.): Economic foundations of European integration - An introduction to selected sub-areas of community politics . Munich 1993, ISBN 3-8006-1731-5 .