Sarbovan M. L. et. al./Scientific Papers: Animal Science and Biotechnologies, 2013, 46 (2)

Federalization and Unification in E.U.

Marina Luminita Sarbovan

Tibiscus University of Timisoara, 300559-Timisoara, Lascar Catargiu Str. 4-6, Romania

Abstract In his speech “State of the Union 2012 Address”, the President of the pleaded for empowering of the economic force of by deepening the unification among all the member states. This unification should go on, according to the present architects of the European Union in accordance with the federalization principle, applied in all the sectors of economy and all society. The impact of the agricultural federalization for the Romanian agriculture should be mitigated by the state, as a responsible administrator of the existing potential, in order to secure a long lasting growth and development for our country. While structural changes such as globalization put pressure on the market mechanism, the particularities of agriculture (primary and most important branch of the economy) claim for a wise political guidance, taking in consideration the competition but also the long term economic requirements. Keywords: competition, federalization, unification.

1. Introduction remains open to all nations. We profoundly hope that other nations will join us in our common European Union started an original supra-national endeavor.”[1]. A key quote of Schuman construction in 1957, grounded on preserving Declaration is that “In contrast to international diversity while empowering unity among cartels, which tend to impose restrictive practices members. Beginning with the success of on distribution and the exploitation of national administrating in common the steel or coal markets, and to maintain high profits, the production and other branches of the economies of organization will ensure the fusion of markets and its member states, it developed itself in theoretic the expansion of production.”[1]. principles, in applying them and in gaining new territories, which is an undergoing, long term 2. Materials and methods process. The text of the Europe Declaration signed by the joint Europe founders, Research in agricultural economics aims to watch (), Paul van Zeeland, Joseph directly the future and this leaves us no other Meurice () (France) option but to use the official and verifiable data Count Sforza () () sources, cited in the text: National Institute of and , J. R. M. van den Brink (The Statistics, National Bank of Romania, European ) said that “ By the signature of this Statistics, World Bank; such data are of the Treaty, the participating Parties give proof of their highest access and impact. determination to create the first supranational For data collection we used the observational institution and that thus they are laying the true study; the used information follows the procedure foundation of an organized Europe. This Europe of gathering, analyzing and systemizing the appropriate information for the argumentation. Apart of collecting, comparing and interpreting  * Corresponding author: Marina Luminita Sarbovan, data or phenomena levels, economic reasoning Tel.0256220686, Fax 0256220690, Email: explores the reality to provide the scientific work [email protected]

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Sarbovan M. L. et. al./Scientific Papers: Animal Science and Biotechnologies, 2013, 46 (2)

3. Results and discussion Entailing the mentioned principles, autonomy follows to give each government a certain degree The idea of joining the economic forces in order to of independence, according to its competencies. play a more important role on the global markets Not last, the participation principle imposes for all makes a lot of sense in economic theory and it was member states to be represented when a federal a major political objective even before the Second decision is voted. World War. The application of these fundamental guidelines Step by step, the governors of the united and inside the European federal system remains larger European economies implemented this flexible, in accordance with the historical reasonable aim, of unifying the resources and evolution of the relationship between the national consequently the production output under the and federal levels: we must keep in mind that same leadership. some powers of the national governments were This political will of preserving the European transferred to the federal level and the financial values were expressed by creating an European background of these powers as well. flag, a common currency for the euro-zone Federalism and anti-federalism, both of them member states, common legislation, and an involve an ideology and the action of some administrative apparatus including diplomatic grouped social forces. Only that the federalist representation and dealing with external partners. supporters and their opponents as well, are not as The distribution of political and economical power remarkable in their achievements, as the federalist between the central head-quarter and the personalities are; those who designed the political component entities of the same system, stated by union of Europe are even called the “fathers” of the principle of federalism, still is more attractive EU. and friendly to a reticent old continent as Europe, One of the most important features of the present which experienced in its hard history dramatic, post-recession European economy is the fiscal and regressive, military or disguised struggles and federalism, because it concerns all the branches episodes. (industries, agriculture, services) and it stirs a Nevertheless, contemporary dictionaries [2], [3], permanent inter-action among the representatives [4] explain the federalism to be a common of all levels of organizational structures. construction with a common constitution and Some economists believe that in the given basic law system, binding a group of states into a situation of European structures, both the common larger organized political community, allowing and regional governments should owe independent their prior identity. and sufficient budgets, in order to allow them to This means the governments should be execute their attributes. independent, should not be subordinate one to More than that, financial transparency means that another but co-ordinate with each other. public money should become accountable in front The principles of federalist organization of supra- of the taxpayers, of at least for their elected national organizations, and with special reference parliamentarians, and the public money flow to European Union, were stated to be: separation, should indicate with accuracy the circulation of autonomy and participation. value with its fueling and utilization. Separation assumes that legislative and executive Considering that the actual state in European powers are shared by two ranks of government: a evolution requires an improvement in applying the core and a local level. federalist principle and strengthening the Since the federal organization exercises only those European unification, The Union of European conferred powers, in EU the fulfillment of the Federalists [5]. By the voice of Alexander federalist mechanism of functioning presumes Hamilton, the attention is drawn upon the fact that negotiation and consensus. the EU Commission “admits that 85% of In the light of the convergence objective of the European own resources stem from national European construction, the present supra-national budgetsthe European government is not decedents intend to harmonize the common independent, but subordinate to national interests, and even if the powers are separated, governments.” His solution pleads for the they conceive equity and justice. multilevel system of public finance.

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Sarbovan M. L. et. al./Scientific Papers: Animal Science and Biotechnologies, 2013, 46 (2)

The unique system of public finance continues the liberty of selling the natural resources in order to deepening of the integration process among the obtain some money for that. member states of the European Union. Undertaken Our opinion is that all the member states of EU this measure would be one of the natural effects of must practice the capitalism as a profit addition the recent recession and continuing unbalance that for their economic and politic activity, and to stop the European economy must survive with. selling unprocessed resources, of any kind, if we In his speech “State of the Union 2012 Address”, all want to commit ourselves to prosperity goal in the President of the European Commission Europe. pleaded for empowering of the economic force of A core aspect of the vast process of European European Union by deepening the unification integration is that federalization in European among all the member states. agriculture expects the growth of its resulting This unification should go on, according to the production, but also, from the economic point of present architects of the European Union in view foresees growing profits for farmers and the accordance with the federalization principle, entailed business; while the profits should belong applied in all the sectors of economy and all to the European farmers and entrepreneurs, the society. At the plenary session of the European “other side of the coin” should reveal who will Parliament, in Strasbourg, 12 September 2012, pay the costs of developing a modern, update and president Barroso said that “Europe needs a new efficient agriculture in all the countries owing direction Europe needs a new thinking such a production potential. globalization demands more European unity”; Thus we arrive at the disputable principle of consequently, “the decisive deal requires the subventions in agriculture. completion of a deep and genuine economic If federalization is understood as the preservation union, based on a political union” in EU. of the political identity of each state and national For European agriculture and food supply, new government, under the crucial imperative of challenges will arrive [7], because the global food expecting larger subvention from the EU financial demand will add on more 50% by 203 and double programs, the decedent’s independence remains by 2050, while total population will reach nine questioned. On the other hand the state of being billion inhabitants. unified under the same guidance of the European The political answer to this expansion is the “new forums trends to form a single political and coordinated approach” coordinated by the consequently economic functional unit, being European Union which will take measures to put more than a coalition. in place a closer cooperation in the field of The sense of unity in EU is to create a perfectly national research programs. This measure targets sound financial and economic equilibrium, as the the identification and solving more effectively the working together for common purposes result. common challenges in the area of Agriculture, According to specialists in European sciences Food Security and Climate Change. European supra-nationalism is composed by two To implement the promising projects, a substantial dimensions: the normative supra-nationalism, financing is necessary, but current financial plans which is the Relationships and hierarchy which are overwhelmed by the decentralization of the exist between Community policies and legal incomes and expenses at the national level, by the measures on one hand and the competing policies budgetary deficit of some member states and legal measures of the Member states on the exceeding the Maastricht rules regarding the other, forming the executive feature and the financial criteria for a functional euro-zone. decisional supra-nationalism, which is the From the theoretic point of view, the fiscal gap institutional framework and decision making by among the member states, together with other which such measures are initiated, debated, restrictions imposed to the production, drive to the formulated, promulgated and, finally, executed, creation of artificial value flows, generating forming the legislative and judicial part.[8]. imbalances. Because of its particular “unity and diversity” Also, under pressure of covering deficits, a part of principle, the deepening unification does not the policy makers (governors or not) encounter a automatically occur, but on the contrary, this dramatic confusion between “capitalism” as a requires a conscious and permanent action of profit production and “resource-ism”, as the legal

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adaptation, helped by all levels of the society, In order to face the shocks of energy and fuel from he basic individual up to the highest one. prices which periodically unbalance most of the In the agricultural and rural development area, the economies, the development of future agriculture impact of the agricultural federalization for the is close connected with the renewable energetic Romanian agriculture should be mitigated by the sources and consumption. state, as a responsible administrator of the existing This is mainly because the services associated potential, in order to secure a long lasting growth with producing, transportation, selling and and development for our country. conservation of food use a lot of energy, raising While structural changes such as globalization put the price of the final consumption. pressure on the market mechanism, the Also, unless the technologies and logistics particularities of agriculture (primary and most associated to these activities do not drastically important branch of the economy) claim for a wise decrease the energy consumption, there is a political guidance, taking in consideration the possibility of increasing the energy consumption competition but also the long term economic in food related activities, to raise the prices by requirements. including such a waist in it and to affect the Unification goes in EU in a perfect co-ordination competitiveness of the agricultural goods. with the federalism, and includes the political In front of the restructured economy of the geography of the united Europe, which is European Union stand the goals of harmonious enlarging. growth, raising education and employment, set up This situation raise again the polemics of selling a greener economy and empowering the security the land: to whom do we sell, for what purpose, system. how would look like the proper taxation of the All these targets are provided by the European land-depending activities? authorities at lower costs and in qualitative better The origin of this question is the theoretical conditions than to be delivered by smaller entities, alternative of growth or not to growth; but this is and a chance could come for cutting the fiscal only a theoretical debate, because the real burden for the tax-payers. economy evolution has proven that only together The impact of the agricultural federalization for with growth the people prosper, and thus the the Romanian agriculture should be mitigated by business an all the economic activities the state, as a responsible administrator of the traditionally benefit from the largest possible existing potential, in order to secure a long lasting support. growth and development for our country. While A particular and relatively new problem for the structural changes such as globalization put Romanian agriculture is the lack of workers, a pressure on the market mechanism, the problem somehow connected with the population particularities of agriculture (primary and most numerical decline of the country; the good par of important branch of the economy) claim for a wise this situation could be the necessity of raising political guidance, taking in consideration the productivity of agricultural labor, but this must get competition but also the long term economic financial support from the national and supra- requirements national levels. References 4. Conclusions 1. Schuman, R., “ of 9 May While federalization is largely perceived as a 1950”, at ”Founding Fathers of the European Union”, juridical aspect of the continent, the unification http://www.robert-schuman.eu/pdf/fathers-of- has developed almost exclusive on the economic europe.pdf; http://europa.eu/about-eu/basic- regional interests. information/symbols/europe-day/schuman- This aspect is not entirely understood because of declaration/index_en.htm, accessed 2013.03.12 2. Webster Dictionary, at http://www.merriam- the dual aspect of economic integration: the stocks webster.com/dictionary/federalism, accessed of resources and their use on one hand and the 2013.03.12 flow of merchandise and its consumption, on the 3. Oxford Dictionary, at http://oxforddictionaries.com/ other hand. accessed 2013.03.12

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4. Dex on line, at http://dexonline.ro/ accessed Security and Climate Change" 2013.03.12 http://ec.europa.eu/research/pdf/citizens-summaries/jpi- 5. Hamilton, A., 2013, “Fiscal federalism for a New agriculture_food-security_climate- Europe”, at http://www.federalists.eu/uef/news/fiscal- change/summary_en.pdf , accessed 2013.03.12 federalism-for-a-new-europe/ , accessed 2013.03.12 8. Weiler, J.H.H., 1981, "The Dual Character of Supra- 6. Barroso, H.M.D., “State of the Union 2012 nationalism," in Yearbook of European Law 1: 268- Address”, at http://europa.eu/rapid/press- 306, http://eutopialaw.com/2011/12/07/the-dual- release_SPEECH-12-596_en.htm, accessed 2013.03.12 character-of-supra-nationalism-and-the-euro-crisis/ , 7. Proposal for a Commission Recommendation on a accessed 2013.03.12 Joint Programming initiative on "Agriculture, Food

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