Latvia as a Baltic country, has interesting economic story. It has moved from one union to another in just over 20 years. Surely, it assumes good level of economic decisions to be done. Previously, USSR member still had some consequences from command economy. Therefore, decided to join European Union (EU) in order to move to market economy and stop being dependent on Russia. EU helped Latvia to create more trade, raise domestic market and bring specialisation by comparative advantage, which led to rise in welfare and output. This year from January to June, Latvia is holding presidency of the council of the EU.
Entry to EU happened on 1st of May, 2004. Prior to entry, Latvia had fairly low positive output gap in a range of 2%. Gross Domestic Product (GDP) growth rate was more or less the same, until 2008 when it started to decline and reached the trough at 12% negative output gap. Causes for such change were mainly due to consumption, investment and net imports. Once entered European Union, trade has increased as well as interest rates became lower, rising Consumption and Investment. That have caused Aggregate Demand(AD) boom leading to inflation due to increse in price level. «Latvia government was forced to increase wage rates in order to avoid emigration of work force» (Perviy Obozrevatel, 2010) to nearby countries like UK & Ireland where employee payment was much higher. Following rise in wage rates cost of firms has increased leading to
Click here to unlock this and over one million essaysGet Access
Out of the 28 members of the EU, there is ought to be a country with a weaker economy. Based off of Nauro F. Campos, Fabrizio and Luigi Moretti’s research, countries that recently joined (2004) the EU like Portugal, Czech Republic and Hungary now has an economy much higher than their synthetic GDP. Which is the predicted GDP if they didn’t join the EU (Doc B). This information proves that the EU does actually work economically as countries in the organization by improving their economy and supporting them. Another example of this economic growth is Poland. According to Mitchell A. Orenstein, the Polish economy had been growing “rapidly” for 20 years. At more than 4% a year. He also stated that some German industries are able to produce goods in Poland for cheaper than China. These examples show how the EU is able to support its members economically and still benefit the stronger members at the same time. Benefiting both sides brings peace in between the countries, which brings me to this last
The Southeastern European country currently has a republic and since the country’s integration with the rest of the world has been a positive impact. The 2014 Index of Economic Freedom currently has the country as an overall score of 59.4 which gives it a rank of 95, meaning it is the 95th freest economy. To put this into perspective the country has a 59.4 while the world average is 60.3. However, in the regional average 67.1. The country’s today score is still a considerable improvement from its former years where in the early 2000’s it was hovering below 50 and even just above 40. The political situation in Serbia is continuing to develop especially with the international community. Serbia applied for membership into the European Union in 2009 and EU accession negotiations are projected early in 2014. Admission into the European Union would provide tremendous improvement socially, politically, and economically.
Since 1950 European Union (EU) was created it has promoted peace, prosperity and values among the member nations and its neighbouring countries. EU’s influential tools, has helped transform many European states into functioning democracies and prosperous countries. EU’s membership has grown from 6 to 28 countries (Enlargement, 2014), satisfying a historic vow to integrate the continent bringing in most states of Central and Eastern Europe (CEE) by peaceful ideals.EU has anticipated the enlargement as an extraordinary opportunity to endorse political strength and economic success in Europe. EU’s extension policy is open to any European state that fulfils the EU’s political and financial criteria for membership; still the political process of inclusion of new state requires a unanimous agreement from all the existing 28 member states. Europe is considered to be more flourishing and safer place due to the promotion of democracy, anti-corruption policy and the single market policy.
Since the fall of the Soviet Union 1991 many changes have been brought to Europe. After the fall of the Soviet Union newly formed countries of Eastern Europe found themselves brought into a new era, many of the people had relied on the Soviet Union’s system of socialism to help them with every detail of their lives and to dictate their lives but with this newfound freedom citizens had many changes forced upon them. All they once knew had been taken away so suddenly most didn’t know what to do with themselves. The Government, Economy and Marxist Idealism had all fallen with the Soviet Union. Citizens had no choice but to move on with their new lives because it was as their past lives
With the inclusion of theses countries in the EU the average wage went up and the living conditions have improved. They now are able to afford all the commodities that the rest of Europe has been enjoying for years.
There is an erroneous assumption in the world that the concept of the European Union, the notion of having a shared currency, and borderless pan-European continent is a relatively new idea. However, the idea of a pan-European identity as it is known today through the European Union was established after the end of the Second World War, as the need for a united Western Europe was needed to combat the possible threat of war with the Soviet Union. The policies of the European Union went through a long review through the establishment of multiple pan-European organizations, primarily the European Coal and Steel Community (ECSC) and the European Economic Community (EEC), which provided the backbone of the modern European Union, through a number of treaties that encouraged European cooperation. It is through the combined efforts of the ECSC and the ECC that Churchill’s dream of a united Europe in 1949 eventually culminated in the creation of the European Union (E.U), an organization whose role is to protect the economic interests of aligned nations as outlined by the mandates of the ECSC and ECC.
However, economics cannot be viewed as an independent unit. How the market works is inadvertently based on a cultural set of ideals and markets can function differently from state to state. In order to formalize an institution to control the economy new regulations must be set in place. In the sense of the European Community all nations states had to join together to create a set of rules that everyone agreed upon. By abiding by new rules nations in return could expect to benefit from a larger political body. This all sounded very promising, a new and stronger institution would regulate the economy, and provide security for the vulnerable post-war nations. In doing so, Europe would create a collective identity, a sense of nationality. Although after the war the idea of a stronger unified economy sounded promising it could also be viewed as a hindrance in the long term. The European Community’s goal was to create a unification of the nation-states but from the viewpoint of a individual state this could be a loss of independence and identity. This communal identity “made western European states resemble each other much more than they resembled those of other places or other times.” The focus was no longer on
The aim of this paper is to analyze the impact of the EU accession on the economy and society in Romania. Chronological and comparative analysis of pre EU membership and post membership are used to assess if the accession has been positive or negative.
Human rights are a fundamental aspect of the lives of individuals. The atrocities committed throughout history have prompt the formation of a variety of organizations that have encourage the advancement and respect for the human rights of all individuals around the world. Despite a growing human rights movement and awareness among individuals, many countries still continue to violate the human rights of their citizens. There could be many reasons for this trend, but there are certain factors that could indicate why some countries have higher levels of human rights violations than others. Through the method of agreement, this paper will attempt to provide the factor that leads to the inequality of human rights violation-levels between
Although Norway’s economy is integrated in the market of the European Union [EU], it is still one of the countries not formally included in this organization. Previously known as the European Economic Commission in 1972, Norway did not join the EU. In 1994, Norway once again rejected membership to the European Union based on a referendum: 47.6% voted yes but 52.4% voted no to membership of the EU. Instead, Norway signed the European Economic Area Agreement (EEA). This Agreement guarantees the internal market’s four freedoms: the free movement of goods, people, services and capital. Signing this agreement was a smart and calculated choice because Norway has benefited from trade advantages while averting regulation enforced by the EU, and
In 2004 the country joined the European Union and pegged it currency, the lat, to the value of the euro (Hill, 2014). Latvia goal was to later adopt the euro. Latvia used a variation of a system known as a currency bond, in order to sustain parity against the euro. Warnings started to surface in 2006 indicating the Latvian economy might be in trouble (Hill, 2014). The economy was thriving because of inflow of foreign money into Latvian banks, mostly from Russia. These funds were being used to finance lending. It was suggested to the government to restrain lending by raising interest rates. However, these suggestion were ignored, and what the government failed to do…the market did anyway (Hill, 2014).
Since the beginning of recent crisis, the consideration of becoming European Union’s member for its benefits has been the main focus for many countries. As the incident of WWII proclaimed the shattered of European economy, many country’s economic system could not recovered on their own. Many evidences were obtained and analyzed from countries that became members during EU enlargement. “The EU on average would gain around 1⁄2 percent of real GDP over a six-year period. However, the impact is quite different in the separate EU member states” (Breuss 2001). Even though the problems are varies among different countries, whether they are stabled or are in the process of development, researches have shown that the benefits providing to EU members cause major rises in the economy. And the process of becoming EU member is effortless compared to the overwhelming benefits that they received. Therefore the main argument of this paper is: can growth and productivity be different when a country decides whether or not to join the EU?
Lithuania has had a very prosperous couple of decades after gaining its independence from Russia in 1990. In the year of 2004 alone, it gained membership in both NATO and the European Union. Lithuania has always been under watch from Russia and that grew further when Lithuania joined both NATO and the EU. Lithuania is a total of 25,212 square miles with a population of 3.3 million. Languages include Lithuanian, Russian, Polish, and Belarusian. This background information is important when looking at two different leaders within the Lithuanian government that play critical roles involving the European Union. Those leaders are Prime Minister Saulius Skvernelis and Minister of Economy Mindaugas Sinkevičius. The background information is
Albania has multiple challenges to achieve the full integrating in the European Union. But, there are two major challenges; 1) the economic challenges and 2) the political challenges that are obligatory to its integration in the European Union. The economy is a challenge for Albania because the farmers industry and the food industries are underdeveloped, as a result does not meet the European Union standers to compete
The EEA agreement is a trade agreement which came into force on the 1st of January 1994, and was aimed at bringing together the EU member states and the three EEA EFTA states (Iceland, Liechtenstein and Norway) into a single market known as the “Internal Market” (EFTA, 2017). The EEA agreement facilitates the free movement of goods, services, persons and capital throughout the 31 EEA states. It also encourages cooperation in other common issues such as education, the environment, social policy, tourism and culture, and consumer protection. When the agreement entered into force, there were 17 member states. 13 others joined in subsequent years. The focus of this paper will be on a subset of pioneering states. This provides for a reference