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Foreword By Tanel Kerikmäe, Jean Monnet professor, International University Audentes I am delighted to have a chance to introduce this peer-reviewed collection of articles, another milestone on the road of academic activities of International University Audentes. This interdisciplinary edition with a comparative nature takes a critical look at the problems arising in the context of being member of the European Union, embracing the contributions from various authors with distinct academic and professional background. The current edition includes not only significant academic research (mostly in the field of business, sociology and to some extent in law), but also essays and commentaries (social science in general and political thought). Somewhat different style and aims of various authors benefit the main goal of this set of presentations: to be exciting reading material to as many readers as possible, including not only representatives of academic world but also practitioners and public at large. Half of the papers were initially presented at the 5th annual international Spring Conference of International University Audentes: “Europe’s Role the World and the Future of European Union: enlargement – two years on” (2006). Others present the successful results of our call for papers for this collection among the cooperation partners of the Institute for European Studies and International University Audentes. 5 Despite of eclecticism, one of the common keywords prevailing here is seeking for “identity”. The search for a coherent playground is the joint expectation of different but co-existing worlds: business, politics, social relations and law. I myself, as a legal scholar, have been analyzing the recent ultimate goal of European Union's legal identity – the process of adoption of the constitutional treaty. It appears that the failure and reluctance to approve the Covenant has been caused mainly by a jumble at the level of Member States who are not sufficiently convinced to explain the status of their own constitutional law in the new situation. The borders for jurisdiction appear to be unclear and highly arguable. It is easy to see that many theorists often try to balance between supranational and national interests depending on their own individual positions and identities. The theses of the current compilation of articles are, directly or indirectly, related with identity problems. Although the various authors have quite different research angles, they all, directly or indirectly, are trying to identify the desirable elements and perspectives that would form a solid basis for the EU development. Well-known writer of essays, Paul A. Goble (International University Audentes, Estonia - USA) in his “Is the EU pushing the US away? Reflections on culture, politics and the future of the West” opens the door for discussions. The keynote essay describes the author’s vision on relationship and discussion between US – EU societies and culture from American perspective. 6 Erik Terk from Estonian Institute for Futures Studies is trying to predict the scenarios for EU development. The author, after taking a retrospective view to the political ideology of EU, analyses possible development patterns in future, assisted by methodologies of David Smith and Andersen Consulting. One of the author's vision on three possible Europe's (see the figure 3 “different institutional developments and their dominants) differentiates “citizens Europe”, “State-like Europe” and “Europe as a Fatherland” depending on who determines the development (States, institutions, citizens). There is always the question on whether the strong identity of member- state(s) is a precondition for strong identity of EU (or vice versa)? Mait Talts (International University Audentes), in his essay with a philosophical nature, discusses elements of Estonian identity. This issue which is particularly interesting for a relatively young State, has been analyzed by several Estonian sociologists (one of the collections of inter-cultural research was published by Tartu University European College in 2002). Mait Talts starts with the assumption, that the younger generation faces the difficulties to understand the importance of the identity as such. However, the author still thinks that the concept of identity can be used as a tool to understand “who we really are, where we come from, and where we are heading”. One of the questions prescribed is related to the compatibility of the identities of the Member States and the European Union. By author: “Europeanness has to be absorbed into the Estonian identity – or vice versa”. The reader is left to make his or her own conclusions. The same issue from inter-cultural point of view is treated in the book-review of Siobhan Kattago (Jeremy Rifkin’s well-known “The European Dream”) 7 where the author compares the positions of Rifkin with the considerations of other thinkers (such as Jean Monnet and Robert Kagan). There are several writings on how certain elements of culture and traditions in United States can be adopted by Europeans. Alternatively, the aim of the current review is to elucidate the positive European patterns and models for Americans. EU is a complex phenomenon. The abstract predictions of EU future would be useless if the existing practices and policies are not taken account. For example, EU fiscal policy is relevant tool to shape EU identity and relations between the EU and the Member States. Mindaugas Dapkus from Vytautas Magnus University (Lithuania), in his paper, is proposing “an alternative criterion for fiscal policy evaluation” i.e Inter-Generational Debt Morality Index. The author's arguments are based on comparative research. Similarly, comparative research is also presented by James O´Neil (International University Audentes). In his intricate paper, the author demonstrates that the American model of capitalism (“Debt Culture”) can be well used in analyzing the financial system of one of the most influential EU member states: Germany. The paper of James O’Neil can be called unconventional from the point of view of many contemporary theorists from the field of business and is a good kickoff for further discussions in this disputable area. Vladislav Volkov from Daugavpils University (Latvia) is giving us an intriguing sociological analysis on “quality of life” in Latvia (as one of the Member States of EU), perceived by Latvians and Russians as two major ethnic groups. It seems that the results of this research (where the main outcomes are presented by several tables, figures, percentages etc) can be well be seen as a part of process of defining the group identity. According to 8 the article, for example, the Russians “are more positive in evaluating their life conditions, but less satisfied with their efforts to achieve their life goals”. However, as Volkov asks – are there mere ethnic differences or ethnic inequality? Rasa Glinskien ė and Birut ė Daraškevi čiūtė from Kaunas University of Technology, Panevežys Institute (Lithuania) are emphasising the positive side of being in the EU. They find that Member-States “benefit by additional inflow of foreign direct investments (FDI)”. By their research, based on Lithuania´s experience, the increase of FDI is coming not only from other Member States but also from outside the European Union. Authors prove with their paper that FDI as a macroeconomic index generates the growth of gross domestic product and decreases the inflation and unemployment rates. The edition consists an “institutional mechanism analysis approach” on overview of market-transition in Estonia, written by Professor Ülo Ennuste. The paper includes interesting lexical matrix of market-oriented institutional reform 1997-2006 and its commentaries, explaining the specific features of economic processes Estonia. In conclusion, Ennuste finds that the Estonian market economy transition has a dual character, influenced both by post- Soviet transition (old transition), and the accession to the EU (new transition). Sándor Meisel from Institute for World Economics of the Hungarian Academy of Sciences suggests that Europe „must redefine itself“. He is calling the EU to achieve „substantial changes“, and foresees „inevitable reforms“. The survey is based on Hungarian experience of EU membership. 9 The author makes an overview to EU impacts to Hungarian trade, investments, labor market and finds that “a significant part of the fears and worries are baseless or related to occasional mistakes or late internal measures rather than to EU membership”. Ivar Raig from International University Audentes, taking a somewhat alternative view has still been careful, talking about “some possible” negative aspects of the EU enlargement. According to him, there may take place “an increase of nationalism and social tensions in some member countries, which are not ready for really free movement…” In principle, Ivar Raig believes that the enlargement to East has weakened the capacity of the EU for further development. That makes the author to make protectionist suggestions as “to renegotiate the accession treaty to ask for more transition periods and derogations”. Raig is convinced that the main goal of Estonia is to maintain itself, as much as possible, as an independent and sovereign state. The author from University of Szczecin, Paweł Ładykowski is convinced that the “new era of democracy” that author relates to the fall of communist regime and joining the EU has been beneficial to the minorities. Ładykowski is giving an example of Kashubians,