Eastern Journal of European Studies

Editorial: Post-accession economic development of the new EU members

Author: Andras INOTAI 

Abstract: This issue of the journal has been devoted to the analysis of experience with the unprecedented enlargement in the history of European integration. Several considerations seemed to justify this approach.

Keywords: European Union, economic development, new EU members

Pages: 5-6 | Full text (PDF)

Post-accession economic development of Poland

Author: Witold Orlowski

Abstract: The aim of this paper is to analyse the economic performance of Poland in the post-accession period. Poland joined the EU in 2004, after a long and difficult economic transition. The whole post-accession period could be divided into two sub-periods: the pre-crisis period of 2004-07, and the turbulent period of 2008-11. During the pre-crisis period, Poland recorded a fast growth, with a built-up of macroeconomic disequilibria. During the turbulent period, the economy was dealing successfully with the global financial crisis. The growth slowed down and the disequilibria were reduced. The paper discusses the growth patterns in the both sub-periods and tries to explain the factors that contributed to the good economic performance during the financial crisis. The astonishingly good economic growth results cannot be attributed to a single factor, but to a combination of many factors contributing at the same time. However, Poland has many valuable assets that may help in dealing with the further economic turbulences.

Keywords: economic growth, financial crisis, economic integration, financing growth

Pages: 7-20 | Full text (PDF)

The Czech Republic - impacts of and experience with EU membership

Author: Ivo Šlosareík

Abstract: This paper analyses the impact of the post-accession experience of the Czech Republic in the years 2004-2011. In particular, it focuses on the integration into the EU internal market, preparation for Eurozone accession, transfers from the EU budget and the formulation of the EU energy policy. In each policy area, both the impact of the existing EU regulatory framework and Czech preferences for its reforms are covered. The last section of the paper (chapter 6) describes the Czech institutional adaptation to the EU membership, in particular the 2009 Czech presidency experience.

Keywords: Czech Republic, EU enlargement, internal market, Presidency of the Council of EU, transition periods, EU energy policy, EU budget

Pages: 21-30 | Full text (PDF)

The Romanian economy - four years after the EU accession

Author: Laurian LUNGU

Abstract: The first four years of Romania's membership confirmed that the accession to the EU had, overall, positive effects on the economy. Although the pace of structural reforms had slowed down after 2007, they picked up again after the start of financial crisis, at the end of 2008. Households' wealth and purchasing power have increased despite the recent drop over the last two years. Looking ahead, Romania's economy will need to enhance its competitiveness and pursue a growth model which would make it less dependent on external shocks.
Economic strategies leading to both physical and human capital accumulation would need to be clearly defined and supported by all political parties. With monetary policy aimed at maintaining price stability, fiscal policy would have a
defining role in preserving and enhancing competitiveness. The pursuance of sound fiscal and monetary policies would be paramount in achieving sustained growth in the years to come.

Keywords: Romania, EU convergence, monetary and fiscal policy

Pages: 31-48  | Full text (PDF)

Some impacts of the EU accession on the new member states' agriculture

Author: Judit KISS

Abstract: The main aim of the paper is to analyse the impact of the EU accession on the New Member States' agriculture with special regard to production, employment, farmers' income and intra-EU trade in agricultural goods on the basis of the latest statistical data of Eurostat. According to our findings, accession has provided incentives to agricultural production and to utilize natural endowments (mainly agricultural land); however, agricultural employment decrease could not be halted. Nevertheless, the economic situation of the farmers improved due to increasing incomes. Though the enlarged EU provided markets for the NMS agricultural products, the competition on their domestic markets increased significantly, resulting in massive import penetration. Consequently, most of the NMS agricultural trade balance deteriorated considerably. Concerning future prospects, it highly depends on the reformulation of the Common Agricultural Policy, the new budget of the EU and the domestic economic and agricultural situation of the NMS.

Keywords: EU accession, NMS agriculture, farmers' income, intra-EU agricultural trade

Pages: 49-60 | Full text (PDF)

Financial contagion of the 2008 crisis: is there any evidence of financial contagion from the US to the Baltic states

Authors: Andres KUUSK, Tiiu PAAS, Karmen VIIKMAA  

Abstract: The paper aims to investigate the research question whether the US 2008 crisis spilled over contagiously to the Baltic States as small open economies. In order to examine the evidence of financial contagion as a systematic component of financial risks in the case of the Baltic States, we employ several testing methodologies like correlation coefficients based methods adjusting also with possible heteroskedasticity and ARCH-GARCH framework. The results are somewhat mixed. On the one hand, stock returns' correlations between US and Baltic States increased during crisis times, confirming the financial contagion hypothesis. On the other hand, volatility has not spilled over from US to Estonia, Latvia and Lithuania, neither have volatility spillovers become stronger after the crisis hit.

Keywords: financial crisis, financial contagion, crisis management, Baltic states

Pages: 61-76 | Full text (PDF)

Mutual trade and investment of the Visegrad countries before and after their EU accession

Authors: Gabor HUNYA, Sandor RICHTER

Abstract: The paper addresses the period preceding and following the EU accession in 2004 reconstructing the major developments in trade and FDI. It relies on the detailed bilateral trade and FDI data of the Czech Republic, Hungary, Poland and Slovakia. The assessment sheds new light on the growth and restructuring of trade due to integration into the European corporate structures. But unlike trade, FDI between the four Visegrad countries did not change much in the years following EU accession. The conclusion of the paper is that foreign investors coming into these countries from the EU-15 and other advanced countries were the real engines of the revival in mutual trade.

Keywords: intra-regional trade, Visegrad Group, FDI

Pages: 77-91 | Full text (PDF)

Mobility in Europe since the Eastern enlargement: emergence of a European labour market?

Author: Klara FOTI

Abstract: The aim of this paper is to give an overview of the most recent trends in labour mobility after the two waves of Eastern enlargement, within the context of labour market developments mainly in the newly joined Central and Eastern European Member States. The article focuses on the question of how the current economic and financial crisis impacted on these trends, whether a slowdown of labour outflow from the Central and Eastern European Member States could be detected as a consequence. From a policy point of view, it is important to assess the consequences of the new mobility trends not only in the receiving countries, but also in the sending ones, as well as the individuals and families affected. Due to the short time which passed since the enlargement, there is limited empirical evidence, but the paper makes an attempt to highlight those issues in this regard, which could have important policy implications in the future. The analysis is based partly on previous research, partly on the most recent empirical data.

Keywords: geographic labour mobility, public policy, demand and supply of labour (general): labour demand, Labour Force and Employment

Pages: 93-107 | Full text (PDF)

The impact of the crisis on the energy demand and energy intensity in Central and Eastern European countries

Author: Attila HUGYECZ

Abstract: The purpose of our paper is to analyze the impact of the recent crisis on the oil and electricity demand and the energy intensity of different Central and Eastern European countries, namely the Czech Republic, Hungary, Poland and Slovakia. Furthermore, we would like to reveal whether there is a lag in the adjustment of energy consumption. In analyzing energy intensity, we use motor gasoline, diesel oil and electricity consumption data and ignore coal and natural gas data. By so doing, we avoid failures arising from changing coal/gas consumption due to changing weather conditions. Our results show that the crisis did impact energy consumption and reveal that the improvement of energy intensity halted in 2009, implying that the economic players did not immediately adjust their energy consumption according to their economic activity. The gasoline and diesel intensity, however, deteriorated (increased) only in the Czech Republic and in Hungary. In Slovakia and Poland there were no significant changes.

Keywords: oil consumption, energy intensity, crisis, Central and Eastern Europe

Pages: 109-117 | Full text (PDF)

EU transfers and the next financial framework

Authors: Miklos SOMAI

Abstract: The main aim of the paper is to display and analyse both the revenue and the expenditure side of the future budget which came to light in the Commission proposal concerning the EU new Multiannual Financial Framework (MFF) of 2014-2020. Efforts were also made to clarify the interests lying behind claims and different behaviour of the member states vis-a-vis the common European budget. All available EU documents on MFF were exploited, especially those published concerning the Commission proposal at the end of June 2011. As a very interesting observation, it was revealed that the Commission proposal rather favours the old and/or developed member states than the new and/or underdeveloped ones. Considering the amount of efforts needed to surmount the crisis and to stabilise public finances, considering in addition the weakening propensity of net contributors to the budget (especially that of Germany) to place EU-cooperation before their own national interests, it is to be feared that the next MFF will not be the one to accelerate the catching-up process of the less developed regions of Europe.

Keywords: EU-budget, Multiannual financial framework (MFF), Common agricultural policy (CAP), Cohesion policy, net position, own resources, British rebate

Pages: 119-131 | Full text (PDF)

Should the EU climate policy framework be reformed?

Author: David Ellison

Abstract: Though to-date the European Union (EU) has played the most significant leadership role in international negotiations to reduce greenhouse gas (GHG) emissions, the emission-reducing performance of individual EU Member states has for many been less than stellar. Several EU15 Member states continue to raise rather than lower emissions. Analysing the most successful policy instruments, this paper argues EU policy efforts could benefit from three important innovations. The following strategies - the adoption of an EU-wide FIT (feed-in tariff), an EU-wide carbon tax and more flexibility in the trading of carbon credits - could significantly improve emission reductions, their relative cost-efficiency and spread burden-sharing more evenly across technologies and Member states. This raises important questions, both about the effectiveness of EU and Kyoto-style commitments, as well as the EU Emission Trading Scheme (ETS). The commitment strategy, and in particular the EU ETS mechanism, have had the smallest impact on emission reductions. The proposed set of strategies could make a far greater contribution to future EU efforts and potentially lock in the impressive progress already made. Such a policy shift, if successful, would also greatly enhance the EU's already significant credibility and bargaining power in international climate negotiations.

Keywords: EU climate policy, Climate change mitigation, Renewable Energy, Energy Efficiency, Carbon Taxes

Pages: 133-167 | Full text (PDF)

Impacts of and experience with EU membership of the countries of Central, Eastern and South - Eastern Europe. Country study on Bulgaria

Authors: Nadya Yorgova

Abstract: The current paper focuses on the issues Bulgaria faced and is still facing in the process of joining and being a full-fledged member of the European Union in the context of ongoing economic obstacles. By spotlighting on different macroeconomic aspects, the article examines changes and fluctuations of indicators and conducts research in terms of their origins. Thus, by using historic, statistical and comparative approach, the author tries to clarify the impacts and experience with EU membership of the Republic of Bulgaria. That analysis reveals general improvement of internal policy shaping along with a fiscal discipline and the positive influence over the FDI attractiveness of the country. Furthermore, the country is slowly catching up with the GDP per capita standards in the EU while being a net beneficiary of EU funds. Thus, the main conclusion of the current study is that there is an overall positive effect of Bulgaria's EU membership.

Keywords: Bulgaria, EU membership, economy, experience

Pages: 169-188 | Full text (PDF)

BOOK REVIEW:

Marek Dabrowski, Maryla Maliszewska (editors), EU Eastern Neighborhood. Economic Potential and Future Development

Author: Andreea-Oana IACOBUȚA and Livia-Loredana BACIU

Pages: 189-191 | Full text (PDF)