European Integration: a Theme

226 Pages·2019·2.289 MB·English

by  Jaap Hage

Maastricht
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EuropeanIntegration:ATheme

European Integration:
A Theme
Jaap Hage
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Table of Contents
Preface xi
1 Pre-History 1
1.1 TheWesternRomanEmpire 1
1.2 TheByzantineEmpire 3
1.3 TheFranks 4
1.4 ReligionMatters 6
1.5 Liberalism 8
1.5.1 FourFactorsthatCausedtheRiseofLiberalism 9
1.5.2 ThomasHobbesandthePursuitofSelf-Interest 11
1.5.3 CharacteristicsofLiberalism 12
1.5.4 JohnLockeandthePreservationofNaturalRights 13
1.5.5 Cosmopolitism 15
1.5.6 FreeTrade 16
1.6 TheFrenchRevolutionandItsAftermath 16
1.6.1 Conservatism 17
1.6.2 NapoleonBonaparte 18
1.7 TheRiseofSocialism 19
1.8 The20thCentury 22
2 TheHistoryoftheEuropeanUnion,inFourPhases 23
2.1 Introduction 23
2.2 TheTreaties 23
2.3 TheCommunitiesandTheirOrgans 25
2.4 EconomicIntegration 27
2.5 Enlargement 29
2.6 TheEuropeanCoalandSteelCommunity 31
2.6.1 ColdWar 32
2.6.2 RelationsbetweenFranceandGermany 33
2.6.3 TheSchumanDeclaration 34
2.6.4 TheEuropeanCoalandSteelCommunity 34
2.6.5 TechnocracyandNationalInterests 35
2.6.6 ConclusionontheECSC 37
2.7 TheEmptyChairCrisis 38
2.8 TowardstheEuropeanUnion 40
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2.9 TheEUinCrisis 43
2.10 FromSpillovertoSpillback 46
3 TheoriesofEuropeanIntegration 47
3.1 Federalism 47
3.1.1 TheVentoteneManifesto 47
3.1.2 TheLegalPerspective 49
3.1.3 ThePoliticalSciencePerspective:FederalUnions 50
3.2 Functionalism 51
3.3 Neo-functionalism 53
3.4 Intergovernmentalism 57
3.5 SomeDefiningDistinctions 58
3.6 Evaluation 59
3.6.1 FunctionalismandLegalFederalism 59
3.6.2 SociologicalFederalism 60
3.6.3 Neo-functionalismandIntergovernmentalism 61
4 ExplanationandUnderstanding 63
4.1 TheRelationshipbetweenExplanationandUnderstanding 63
4.2 TheNomological-DeductiveModelofExplanation 66
4.2.1 ExplanationasLogicalDerivation 66
4.2.2 WhatisaLaw? 67
4.2.3 LegalExplanation 68
4.3 TheScientific(Empirical)Cycle 70
4.3.1 APrioriandEmpirical 71
4.3.2 StepsintheEmpiricalCycle 71
4.3.3 Observation 73
4.3.4 LawFormulationandInduction 74
4.3.5 DeductionandPrediction 74
4.3.6 ObservationandTesting 75
4.3.7 Evaluation 75
4.3.8 Non-empiricalScience 77
4.3.9 ApplicationtoIntegrationTheories 78
4.4 WhatMakesaTheory‘Scientific’? 81
4.5 TeleologicalExplanation 84
4.5.1 LimitationsoftheNDModelinConnectionwithHuman
Behaviour 84
4.5.2 Goal-BasedExplanation 86
4.6 ApplicationtotheIntegrationTheories 89
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4.7 Conclusion 90
5 TheEconomicsofTrade:BasicConcepts 91
5.1 TheEconomicStyleofThinking 91
5.2 SomeConcepts 93
5.3 TransactionCosts 97
5.3.1 InternalCostsandBenefits 97
5.3.2 DefinitionofTransactionCosts 97
5.3.3 Taxation 98
5.3.4 SummaryonTransactionCosts 100
5.4 Externalities 101
5.4.1 Introduction 101
5.4.2 Costs,BenefitsandDecisions 102
5.5 SocialDilemmas 103
5.5.1 Definition 103
5.5.2 InternalizingExternalities 105
5.5.3 ExternalitiesandFreeTrade 106
6 TheEconomicsofInternationalTrade 109
6.1 MercantilismandFreeTrade 109
6.1.1 MercantilistPolicies 109
6.1.2 IsthereaFixedAmountofWealth? 111
6.2 AbsoluteandComparativeAdvantages 112
6.2.1 AbsoluteAdvantage 112
6.2.2 ComparativeAdvantage 113
6.2.3 ConclusiononAbsoluteandRelativeAdvantages 115
6.3 The(Dis)AdvantagesofFreeInternationalTrade 116
6.3.1 ConsumerandProducerSurplus 116
6.3.2 AllowingFreeInternationalTradeinaSmallCountry 119
6.3.3 AllowingFreeInternationalTradeinaBigCountry 122
6.3.4 Tariffs 123
6.4 Conclusion 124
7 Money 127
7.1 WhatIsMoney? 127
7.1.1 CoincidenceofWants 127
7.1.2 Overview 128
7.1.3 TheFunctionsofMoney 128
7.1.4 TheFormsofMoney 130
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7.2 TheCreationofMoney 130
7.2.1 MoneyCreationbyBanks 131
7.2.2 TheRoleoftheCentralBank 132
7.3 TheValueofMoney 134
7.3.1 Inflation 134
7.3.2 Deflation 135
7.3.3 InterestRates 135
7.3.4 ExchangeRates 136
7.4 IndirectTaxation 137
7.4.1 InflationTax 137
7.4.2 InterestTax 138
7.4.3 ExchangeRates 138
7.5 TradeEquilibria 139
7.6 TheImpossibleTrinity 140
7.6.1 IfThereWereNoFullCapitalMobility 141
7.6.2 ExchangeRates,InterestLevelsandtheFreeFlowofCapi-
tal 143
7.6.3 WhytheTrinityIsImpossible 143
7.7 Conclusion 144
8 MonetaryIntegration 147
8.1 AttemptsatFixedExchangeRates 147
8.2 TheRoadtowardstheEuropeanMonetaryUnion 148
8.2.1 DrawbacksofFlexibleExchangeRates 148
8.2.2 TheSnakeintheTunnelandOtherFailedAttempts 149
8.2.3 TheEuro 150
8.2.4 TheStabilityandGrowthPact 151
8.3 ExchangeRatesandAsymmetricShocks 153
8.4 OptimumCurrencyAreas 156
8.5 Conclusion 158
9 Sovereignty 159
9.1 Introduction 159
9.2 TwoCrises 160
9.2.1 TheMigrationCrisis 160
9.2.2 TheFinancialCrises 163
9.3 IntroducingSovereignty 166
9.4 SocialReality:Basics 168
9.4.1 ThreeKindsofFacts 168
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9.4.2 TheExistenceofSocialFacts 169
9.5 SocialReality:RulesandRule-BasedFacts 171
9.5.1 TheMainFunctionofRules 171
9.5.2 HowRulesExist 172
9.5.3 Rule-BasedFactsandRules 174
9.5.4 PopularSovereignty 175
9.6 LegalConsequences 177
9.7 LegalStatus 179
9.8 ExternalSovereigntyasLegalStatus 181
9.9 InternalSovereigntyIsNoLegalStatus 184
9.10 Conclusion 186
10 Euroscepticism 187
10.1 Introduction 187
10.2 AnywheresandSomewheres 190
10.3 ReasonandPassion 191
10.4 TheGeneticBasisofAltruism 192
10.5 DualSystemDecision-Making 195
10.6 NatureandNurtureinMorality 197
10.7 PeopleHatetoReconsider 198
10.8 Conclusion 199
Postscript 201
References 203
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