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Policies and Politics of the European Union

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Policies and Politics of the European Union Policies and Politics of the European Union Edited by Jaros³aw Jañczak Faculty of Political Science and Journalism Adam Mickiewicz University Poznañ 2010 Review: Jerzy Babiak, Ph.D., AMU Professor Cover designed by: Adam Czerneñko Front page photo by: Przemys³aw Osiewicz © Copyright by Faculty of Political Science and Journalism Press, Adam Mickiewicz University, 89 Umultowska Street, 61-614 Poznañ, Poland, Tel.: 61 829 65 08 ISBN 978-83-60677-99-5 Sk³ad komputerowy – „MRS” 60-408 Poznañ, ul. P. Zo³otowa 23, tel. 61 843 09 39 Druk i oprawa – Zak³ad Graficzny UAM – 61-712 Poznañ, ul. H. Wieniawskiego 1 Table of Contents Introduction ..................... 5 Maciej Walkowski: The Monetary Integration Process in Europe. An Analysis of Potential Threats and Opportunities Connected with the Introduction of the Euro in Poland ........ 7 Ekaterina Islentyeva: EU Commission’s Cooperation with the non-EU Countries in the Field of the Competition Policy ...... 21 Robert Kmieciak: Local Government in the Process of Implementation of the European Union’s Regional Policy in Poland ..... 35 Lika Mkrtchyan: Armenia and Turkey: Historic Rivals or Modern Neighbors? Turkey’s Way to Europe (Turkey’s European Integration from Armenia’s Perspective) . 43 Przemys³aw Osiewicz: The European Union and its Attitude Towards Turkey’s EU Membership Bid After 2005: Between Policy and Politics .............. 53 Agnieszka Wójcicka: Sweden and Poland. Nordicization versus Europeanization Processes ............... 63 Knut Erik Solem: Democracy, Integration Theory and Community-building in Small States: The Case of Norway . 85 Jaros³aw Jañczak: De-Europeanization and Counter-Europeanization as Reversed Europeanization. In Search of Categorization . 99 Piotr Tosiek: Comitology Implementation of EU Policies – Democratic Intergovernmentalism? ........... 111 Personal Notes .................... 127 Introduction The European Union is an area of rapid development related both to internal re- forms as well as external challenges. Sectoral policies spill over into new thematic areas and are the subjects of new regulations as well as growing institutionalization. On the other hand the politics of the EU are changing due to deepening integration and territorial enlargements as well as new external factors. Consequently the EU is in the process of permanent change, visible both in policies and politics. The purpose of this volume is to analyze different examples and interrelations between EU policies and EU politics in various fields of study. This publication con- tinues the research in the field of European integration conducted by the Faculty of Political Science and Journalism at the Adam Mickiewicz University together with partner universities and scholars from different European academic centers. It con- tains texts from nine authors representing five academic institutions from Armenia, Luxemburg, Norway and Poland. The first group of contributions in the book presents three case studies. It is opened by Maciej Walkowski who investigates the introduction threats and oppor- tunities of the Euro currency in Poland. Ekaterina Islentyeva presents the EU Com- petition Policy with a focus on the Commission’s cooperation with the non-EU states. Robert Kmieciak analyzes how Polish local governments implement the EU’s Regional Policy. The next two texts examine the problem of Turkey and European integration. Lika Mkrtchyan looks at it from the Armenian perspective. Przemys³aw Osiewicz on the other hand discusses the phenomenon as both policy and politics. Two further contributions suggest the Nordic Region as a source of inspiration for integration processes. Agnieszka Wójcicka compares Nordicization with Europeanization. Knut Erik Solem discusses the example of Norway in integration theory and community building in small states. The last two contributions employ a wider perspective. Jaros³aw Jañczak tries to categorize reversed Europeanisation in the form of de-Europeanization and coun- ter-Europeanization. Finally Piotr Tosiek presents comitology implementation of EU Policies. The authors believe that the complete volume will serve as an important and re- freshing contribution to contemporary European studies and due to its multina- tional and multidisciplinary character, will stimulate the European debate. Maciej Walkowski The Monetary Integration Process in Europe. An Analysis of Potential Threats and Opportunities Connected with the Introduction of the Euro in Poland The European Union’s Economic and Monetary Union, the common currency ex- change and monetary policy, celebrated its tenth anniversary in January 2008. In 1999, 11 EU Member States, the euro started to be used in non-cash transactions. According to the European Commission, the new Euro area involving 16 Mem- ber States since 1 January 2009, met expectations, bringing an unprecedented pe- riod of price stabilisation and low interest rates which still remain at a low level. The United Kingdom and Denmark used the opt-out clauses negotiated in their accession treaties. Sweden, as a result of the negative outcome of her referendum, did not enter the ERM2 mechanism, and the next referendum was called for 2013 at the latest. In the UK, chiefly identity reasons connected with national identity and strong bonds with the pound caused unwillingness of society and political parties to enter the Eurozone. The present global financial crisis, and also the recession in many Eu- ropean countries are the reasons that Denmark, Sweden and Iceland are consider- ing joining common currency zone. The new Member States (from the EU enlargements in 2004 and 2007) are obliged to enter EMU. Only the strongly sceptical Czech Republic is not going to do so soon. Therefore, the question is, why such a wide potential interest in participa- tion in the European monetary integration project? What are the development op- portunities that are seen by European states? In December 1997, at the European Council summit in Luxembourg, the heads of European governments and states of the EU-15 decided to start the third stage of building Economic and Monetary Union (EMU) on 1 January 1998. The stage meant introduction – initially only in non-cash transactions – of a common European cur- rency: the euro, and was definitely one of the most profound and important events in the history of modern Europe and the world. Since that time, the euro – which can be issued solely by the independent Euro- pean Central Bank (ECB) – gradually began replacing national currencies, firstly of the 11 states forming the so called Eurozone. The transition to the European single currency was completed at the beginning of 2002 leading to the start of a real mone- tary union in Europe. At that time the euro as the only self-reliant, rightful and offi- 8 Maciej Walkowski cial tender of European Union was for the first time put into circulation in physical form. It was from an economic, and to some extent from a political point of view, the peak of the integration processes so far in Europe; the euro was to accelerate the in- tegration of EU states, giving their economies many potential and real benefits1. Both on the macro and microeconomic levels, there are predictable and real ben- efits from creation of the Economic and Monetary Union, which was based on the theory of an Optimal Currency Area, developed by R. Mundell, R.J. McKinnon and P.B. Kennen. These are: · From economic point of view, the euro has to limits permanently the risk of ex- change rate fluctuations in mutual trade, which eliminates transaction costs in currency exchange for companies and consumers (savings of approx. 2% of the EU’s GDP). As a result, there is lowering of economic activity costs, including costs of safeguarding against exchange rate risk (assessed savings of 13-18 billion euro annually). Therefore, the euro eliminates uncertainty of companies which is connected with assessment of their profitability on so called Euromarket. · The euro eliminates indirect transaction costs connected with the national curren- cies exchange (commission costs – usually 2%) and gives an opportunity of wider than before participation in the large EU capital market. Currency union assumes unlimited freedom of capital turnover which in the absence of currency specula- tion element will not, ex definitione, cause disadvantageous exchange rate confu- sion. · From an enterprise point of view, establishing one currency euro area enables the elimination of so called competitive currency depreciation, which artificially en- hance price competitiveness in certain countries. As a result of this practice in the past, were demands in Europe to bring back protectionist trade barriers, lifted long before, in order to restrain imports from other Community countries. The possible expansion of protectionist trends could endanger the idea of free trade in the whole EU. · In the euro area it is impossible to manipulate exchange rate in order to improve competitiveness of its own country artificially. The ECB, which is meant to be in- dependent of any political pressure, is accountable for monetary and exchange rate policy. · The euro area means much easier comparison of prices and salaries which en- courages using market arbitration, increasing as a consequence efficiency of Eu- ropean production. The single currency common currency is to even out the level of prices of many goods sold within the area (aiming at their lowering) which is beneficial for consumers. By 1990 the prices differed, depending on the category of
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