Economic union
The economic union is the fifth stage of economic integration between countries, in addition to a common market and a coordination of economic policies is done, often between neighboring countries of a region.
This means that not only goods, capital and labor are allowed to move freely within the Union (production factor mobility), but also that sovereignty in economic policy has to be partially given up in favor of the Union. Often the pacesetters for economic integration up to and including economic union were the larger powers in a region. Conversely, the weaker states gained a say and influence. Overall, the region strengthened itself against other regions in regional mergers.
A well-known economic union was the European Economic Community , including the common agricultural policy . Nowadays it no longer exists as a separate unit, but has been completely incorporated into the European Union . Currently there is also the Eurasian Economic Union and the so-called "Internal Market and Economic Area of CARICOM ", which is also an economic union.
Another example was the economic union between the Federal Republic of Germany and the GDR , which existed in 1990 from July 1st until reunification (October 3rd).
Even deeper integrations lead to monetary union , other types of mergers lead to political union .
Individual evidence
- ↑ WU Vienna : 3.1 The development of regional alliances and integration spaces ( Memento of December 24, 2007 in the Internet Archive ) in ECONOMIC HISTORY, GLOBAL CAPITALISM, by Ingo Andruchowitz