1. EC4333 Lecture 1
Dr Stephen Kinsella
stephen.kinsella@ul.ie

2. Define Integration
Gains from integration
Background
Why integration?
Timeline
Economic snapshots

3. Define
Integration

4. Define Integration
Gains from integration
Background
Why integration?
Timeline
Economic snapshots

5. Economic
Country Death Toll Setback to Year’s
GDP
Austria 525,000 1886
Belgium 82,750 1924
1936
Denmark 4,250 1936
1938
Finland 79,000 1938
France 505,750 1891
Germany 6,363,000 1908
Italy 355,500 1909
Netherlands 250000 1912
Norway 10,250 1939-45
Sweden 0 1939-45
UK 325,000 1939-45
Source: Crafts and Toniolo: Economic Growth in Europe since 1945 (Cambridge: CUP,1996, p. 4)

7. EU was an
economic
olution to a
political
problem

8. How can Europe
avoid another
war?

9. Steps
Taken
to EU

10. Define Integration
Gains from integration
Background
Why integration?
Timeline
Economic snapshots

11. Chart 2.2: Real GDP growth
10
Per cent change on year earlier
8
highest EU3
6
US
4
EU15
2
0
lowest EU3
-2
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Growth rate of GDP at constant prices (1995=100). Contains forecast for 2002.
Source: Eurostat

12. Chart 2.23: Trade integration of goods
Per cent of GDP
highest EU3
lowest EU3
EU15
US
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Value of imports and exports of goods as a per centage of GDP.
Source: Eurostat

13. EMPLOYMENT GROWTH
Chart 3.3: Growth in total employment
6
Per cent change on a year earlier
highest EU3
4
US EU15
2
0
-2
lowest EU3
-4
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Source: Eurostat

14. Chart 3.4: Inflation rate
Per cent change in HICP on a year earlier
highest EU3
US
EU15
lowest EU3
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Annual average rate of change in Harmonized Indices of Consumer Prices (HICP). Data contains estimates.
Source: Eurostat, Price statistics

15. Evolution of Spending, Level

16. Chart 2.30: Greenhouse gas emissions
40
1990=100
30
highest EU3
20
US
10
00
EU15
90
lowest EU3
80
70
1992 1993 1994 1995 1996 1997 1998 1999 2000
Emission of greenhouse gases, based on CO equivalents; 1990 = 100. Estimate for US in 2000
2
Source: Eurostat

17. Chart 4.2: Unadjusted gender pay gap
95
highest EU3
90
Ratio of female earnings to male earnings
85
EU15
80
lowest EU3
75
70
1994 1995 1996 1997 1998 1999
Expressed as the ratio of women's average gross hourly earnings index to men's for paid employees at work for 15 or more hours a week. T his
data does not control for variables such as experience, education or job type. Provisional data for Spain, estimated data for EU15.
Source: Eurostat; Sweden, France and the Netherlands data are from National Statistical Agencies

18. Summary
• EU an economic solution to a political
problem
• But many problems with this solution

19. Next Lecture
Institutional Analysis of EU
bargaining
More History
Make sure to read
Beach, D., The Dynamics of
European Integration, pgs. 1–31,
and pgs. 214–244, 337.142 BEA.