The European Union's debt question: A conceptional viewpoint

The state can be conceived as an organization to protect personal freedom and to provide public goods. Consequently, we expect a constitution to consist of two different sets of rules; rules on personal freedom and rules for making collective decisions on public goods (mostly budgetary rules). The constitution of the European Union as laid down in the treaty of Maastricht (1992) provides both types of rules, but the emphasis is mainly on the former rules. This paper investigates budgetary rules, in particular the welfare economic logic of deficit spending.     

THE FUTURE OF PUBLIC ENTERPRISES: PERSPECTIVES FROM THE CANADIAN EXPERIENCE

ABSTRACT: Public enterprises have been an integral part of the involvement of the state in the economy for most of the 20th century. After 1980, privatization has been the dominant trend until the 2008–2010 economic crisis when new nationalizations happened. Ownership is only an element of a complex system of relations between a public enterprise and its institutional environment where the role of the board of directors, the mechanisms of coordination, the role of senior civil servants, etc. come to play. Using the Canadian experience with public enterprises, we suggest in this article that public enterprises could be interesting economic policy instruments in the future as in the past if such an economic policy exists. In other words, privatization did not solve the control issue over many large enterprises. Improved corporate governance should be considered. This article aims at improving the understanding of how by focusing on various aspects of the governance of public enterprises on their potential use and work. In Canada, public enterprises have been used to face the recent global crisis but they also come from a long tradition of intervention in the economy, a tradition closer to the European than the American. After reviewing recent developments in their governance, paths for future research are proposed.     

Perspectives on the Guaranteed Income,Part I

Strengthening economic, social, and territorial cohesion is a central objective of the European Union. However, disparities between European regions are considerable, and there are doubts as to whether they are likely to be attenuated. In recent years, there has been a growing body of literature that examines the effectiveness of the European Union’s funds for promoting growth and reducing asymmetries among members. We contribute to this literature by examining the conditions under which the European Union’s financial aid may be affecting regional growth. We explore the interactions between transfers and income and other regional characteristics, such as human capital or innovation. We apply this study to a panel of 137 European regions, covering the period from 1995 to 2009. Our conclusions suggest a positive and significant marginal impact of funds only in regions with low levels of human capital and innovation.     

Selection criteria and the award procedure in public procurement

This paper examines the admissibility of some selection criteria in the light of European public procurement law. It also points out the opportunity of using such criteria through an economic analysis. The main aspect to be dealt with is the numerical selection criteria, which may hinder firms not fulfilling them from participating in the award procedure. These criteria refer, according to the European Union directives on public procurement, to the economic, financial, and technical capacity of the candidate firms. In our analysis, the legal appreciation should be confronted with an economic analysis of the numerical selection criteria. This analysis is based on an arithmetic approach which focuses on relative rather than absolute values. Thus, through a series of performance indicators, an alternative approach to the above criteria is presented. This paper does not reflect the official position of the Commission of the EU.     

The choice of dilemmas in Hungary's transition: Westernization or latin americanization?

This paper deals with Hungary on the basis of selected characteristics regarding European Union accession conditions. In most cases, there are no exact criteria which must be fulfilled. Therefore, the difference between the real and expected levels of performance cannot be measured. The chances for stabilization and growth, reintegration, or periphery are under investigation. This statistical analysis concentrates on the similarity between members of the European Union (and the Organization for Economic Cooperation and Development) and new applicants. The structural similarity and closeness can statistically prove economic success or failure.     

Economic and Monetary Union – Current Fiscal Disturbances and the Future

At the moment of its setting up the Economic and Monetary Union did not meet the criteria of the optimum currency area. Neither does it today. The crisis of public finance in the eurozone results from the abandonment public finance reforms, lack of consistency in enforcing the decision of the Stability and Growth Pact and, additionally, economic recession and financial crisis. Further functioning of the eurozone will depend on radical reforms of public finance and structural reforms enhancing efficiency of the market as an adjustment mechanism, and competitiveness of economies. The very establishment of the European Stabilization Mechanism and European Financial Stability cannot make up for the above mentioned necessary undertakings. It is important to change the socioeconomic model existing in the EU member countries.     

河北企业在欧盟反倾销下的生存之道

欧盟/欧共体是最早对河北出口产品进行反倾销调查并采取反倾销措施的地区,应用欧盟反倾销程序的设计可使河北企业在不同阶段应诉欧盟的反倾销,可使企业在遇到涉外纠纷特别是数量最多的涉外贸易纠纷时能得到及时合理的解决,从而最大限度地保护其合法利益。     

Public Procurement at the Local Level in Austria: The Economic Consequences of Compulsory Competitive Tendering for Public Services

This paper looks at possible problems concerning the economic effects of the introduction of an compulsory competitive tendering for general economic interest services at the local level. It examines the framework in Austria and some fundamental problems of competitive tendering. An obligation binding local authorities to put general economic interest services up for competitive tender, as currently intended by the European Commission (i.e. service concessions), would have considerable medium- and long-term effects on both the process of municipal service provision and the economic position of municipal (public) enterprises. The paper concludes that, from an economic point of view, procurement through competitive tendering does not appear to be effective or tenable for all general economic interest services in (all) different areas. The introduction of compulsory competitive tendering for service concessions in all areas of public services is therefore something best forgotten.     

Public policy towards cross subsidy

Although elusive of measurement, cross subsidies are widely believed to have existed on a significant scale in network industries, particularly when these developed under public ownership. After providing careful definitions of when cross subsidy occurs, this article distinguishes eight distinct cases, drawing examples primarily from network sectors. Debates about the desirability of cross subsidy in the context of public enterprise are then reviewed; issues such as the geographical averaging of tariffs and the extent to which non-commercial obligations should be reimbursed by government on the recoup principle are addressed. The policy package of denationalization, liberalization and new forms of regulation have far-reaching implications for cross subsidy policy. For example, liberalization reduces the ability of incumbent enterprises to cross subsidize uneconomic links in a network, particularly if entrants are not subjected to comparable social obligations. Moreover, denationalized enterprises will more vigorously pursue financial profitability, discontinuing cross subsidy related to the traditional equity and political goals, but exploiting cross subsidy as an entry-repelling tool. Both at the member state and European Union levels, there is evidence of confused thinking about the desirability and continued feasibility of cross subsidy; for example, not recognizing the inconsistency involved in imposing non-economic obligations on incumbents while removing barriers to competitive entry. These developments not only erode the viability of the missions of public enterprises in their traditional sectors but also raise issues for public policy if and when technological developments make possible new forms of price discrimination in social sectors.     

Debt and Economic Growth in the European Union: A Panel Granger Causality Approach

This paper contributes to empirical investigation of the causality relationships between real gross domestic product (GDP) growth and the growth of three debt categories, namely public, foreign and private debt, in the universe of the 28 European Union (EU) countries during the past decade. Using panel Granger causality estimations, we find statistically relevant bidirectional causality relationships between public debt and economic growth for the periods both before and after the outbreak of the recent financial crisis. Moreover, there is clear evidence of economic growth’s contribution to decreasing public debt.     

Functional components of public expenditure,fiscal consolidations,and economic activity

This paper analyses how the functional components of public expenditure and spending‐driven consolidations affect the economic growth, unemployment, and income inequality. A dynamic panel data least squares dummy variable estimator estimator is employed over a sample of 15 European Union countries during the period 1990–2012. The empirical results show that real GDP growth decreases when fiscal austerity measures are implemented, especially if they are spending‐driven. Cuts in public expenditure undermine economic growth, namely if they slash spending on public order, recreation, and education. Spending cuts on education, in particular, affect the investment in human capital, harming not only growth but also economic, social, and human development. The unemployment rate also proved to be significantly boosted when austerity measures restrict spending on education, whereas income inequality rises when social protection expenditures are cut.     

Transparency and trust: the case of the European Central Bank

We examine how the transparency of the European Central Bank’s monetary policy affects the amount of trust that the citizens of the European Union have in this institution. We use nearly half a million individual responses from the European Commission’s Eurobarometer survey from 2000 to 2011 and estimate probit regressions with sample selection. We find that transparency exerts a non-linear effect on trust. Transparency increases trust, but only up to a certain point; too much transparency harms trust. This result is robust to controlling for a number of macroeconomic conditions, financial stability transparency measures, and economic and socio-demographic characteristics of respondents, including examining respondents in European Union countries that do not use the euro and addressing clustering issues.     

EMU, MAASTRICHT, AND THE 1996 INTERGOVERNMENTAL CONFERENCE

This paper presents various economic approaches to achieving monetary union, particularly in the context of European Economic and Monetary Union (EMU) as envisaged in the 1991 Maastricht Treaty. It evaluates the implications of Maastricht, given the economic convergence criteria embodied in the Treaty, in terms of economic policy for individual Member States and for the European Union (EU) as a whole. The paper assesses the EU's options for amending the Maastricht Treaty at its scheduled inter-governmental conference (IGC).     

浅析欧盟利用绿色壁垒限制我国企业的政策趋势

近年来,绿色壁垒成为欧盟限制我国企业的最新趋势。本文对欧盟及其成员国近年来的政策进行了文献调研,分析了这一趋势的表现、成因、影响与应对建议,主要内容如下:欧盟科技创新政策正不断提高绿色壁垒,主要表现为提升进口产品环保标准、支持当地企业环保转型以及推动国际经贸规则中环保标准的提高。我国企业或将受到较大影响。究其原因,绿色壁垒与传统限制手段相比具有更多优势。未来,原材料出口、机电产品等与欧盟环保差距较大的领域可能受到较大影响。建议我国政府密切关注欧盟情况,做好前瞻性应对预案,推动我国企业环保转型。     

The Rise of Populist Movements in Europe: A Response to European Ordoliberalism?

This article aims to explain the contemporary emergence of populism in the European Union. According to Polanyi’s double movement framework, the emergence of these political forces can be understood as the result of protective responses from societies weakened by difficult market adjustments. Since the Single Act treaty (1986), the European economy took a path that intended to create a supranational self-adjusting markets economy based on the ordoliberal philosophy. However, by detaching the economic sphere from the reach of politics, the European Single Market has injured some important social institutions. The rise and the diversity of populisms in the European Union can therefore be explained by an attempt to preserve some national institutions that were diversely impacted by the market forces.     

面对中国市场经济地位问题：美国和欧盟的政策比较及启示

在今年若干国家正式承认了中国的市场经济地位的国际背景下,美国和欧盟却宣称暂时不给予中国市场经济地位。美国和欧盟作为中国的两大贸易伙伴,这样的外交辞令无疑会对其他与中国有贸易往来的国家产生导向作用,而这与中国目前积极争取获得市场经济地位的近期目标是相左的。针对美国和欧盟对中国市场经济地位的政策比较,进而分析两者的异同,谋求各个击破的方法并提出相应的政策建议,最终为中国争取全面获得市场经济地位做出努力。     

A macroeconomic analysis of the public investments in European combined transport

Intermodal transport has been recognized as a priority by the European Union, that has defined different budget allocations of investments to improve the shifting from road to intermodal transport, which is more sustainable. In this context, the main aim of the paper is to discuss the macroeconomic effects, in terms of economic growth, welfare and trade, of these public investments for combined transport, which aspects have been neglected in literature. A multi-country computable general equilibrium model has been used. The main results have been that the European Union benefits from these investments, but at international level, USA and Japan would lose in terms of welfare. Furthermore, the welfare change has been decomposed in its components and the results show that the trade effects are higher than the allocative effects. The robustness of the results has been tested over time and by a sensitivity analysis of the exchange rate.     

Attitudes about EU expansion and zero‐sum thinking

EU expansion can be seen as a positive‐sum process benefiting all countries by creating larger markets that stimulate more productive economies through increased specialization and economies of scale, implying that the general public in all countries should favour expansion. Contrarily, expansion can be perceived as zero‐sum. Capital and production relocate from higher to lower wage regions while labour does the opposite, possibly raising unemployment and reducing wages in the higher wage regions. The general public in these countries may come to oppose EU expansion attributing any deterioration in their work situation to the gains of new citizens of the European Union. Analysis of changes in Irish attitudes towards EU expansion in 2002, 2007 and 2009 finds no evidence of a link from lowered economic conditions to increased opposition to EU expansion. The only evidence for zero‐sum thinking is that diminished economic circumstances are associated with increased opposition to immigration, but this is not associated with increased opposition to further EU expansion.     

The communication and European Regional economic growth: The interactive fixed effects approach

Following the frontier framework of the panel data models with the interactive fixed effects, the study identifies the European regional economic growth determinants for 268 regions from 2000 to 2014. The regional communication might provide the supplementary positive effects on the European regional economic growth, where the population and educational attainment level are negative correlated to the regional economic growth. The regional human resources in science and technology remain the domination power as one of the regional economic engines in European Union after the millennium.     

Disparities in the financial performance of agricultural entities according to the legal form: the case of Slovakia

Financial management in agricultural enterprises is affected by a range of factors that are not present in other sectors. One of the factors that affect the performance of enterprises is the legal or organizational form of the business. In Slovakia, the specific structure of farms is different from that of almost any other member state of the European Union. The aim of this paper is to evaluate the disparities in the financial performance of agricultural enterprises according to the legal form. We analysed and compared two groups of agricultural entities, agricultural cooperatives and business companies, for the period from 2005 to 2014. Based on an analysis of the differences using mathematical and statistical methods, we can conclude that the legal forms are distinguished in all monitored parameters and our hypothesis on the differences in economic performance of agricultural entities according to legal form was confirmed.