*** MICHEL DEVOLUY (Ed.): Les politiques économiques européennes. Enjeux et défis. Editions du Seuil (27 rue Jacob, Paris 6. - Internet: http://www.seuil.com ). "Points Economie" series. 2004, 398 pp, 10 euros. ISBN 2-02-062798-1.
Economics is not solely the preserve of experts. This is the pleasant impression given on reading this clear book, which renders the subject accessible without over-simplifying it. It is written by sixteen researchers and lecturers from universities in Strasbourg who are members of the 'Observatoire des politiques économiques en Europe', who start by noting that Europe has largely been built on the basis of its economic policies. The authors attempt to divide the policies into three categories according to their position in the EU's economic strategy - economic policies standing 'between co-ordination and federalism'; structural policies standing 'between liberalisation and cohesion'; and town and country planning and development policies standing 'between competition and solidarity'. In the introduction, Michel Dévoluy explains that each of the sub-titles underlines the doubly original nature of European economic policies since they form part of an unfinished integration process and reveal the tension between attraction to economic orthodoxy and the ambition to build an economic and social model in tune with the humanitarian tradition of the European continent. This part of the book is preceded by an introductory essay by the book's editor, the holder of the Jean Monnet chair of European Economics at Robert Schuman University, who considers the architecture of European economic policies and provides a synthesising approach to how these policies mesh with Economic and Monetary Union.
The section of the book covering macro-economic policies opens with an introduction, by Giuseppe Diana and Blandine Zimmer, to the European Central Bank and the European monetary policy. The independence of the Frankfurt-based bank is described based on ideas of the neo-classical school, while the authors assess strategy by outlining the factors of effectiveness in monetary policy. Meixing Dai and Moïse Sidiropoulos then consider foreign exchange market, financial assets markets and monetary policy in the EMU, focussing on the exchange policy for the euro and the role of the financial markets. Studying budget policies and the Stability Pact, Gérard Lang provides proof that we are still some way from budget federalism and the existence of a genuine European policy mix. To make a genuine European policy mix possible, he writes, we would have to emancipate the founding principles and associate the single currency monetary policy with the management of a genuinely federal budget, comments Michel Dévoluy, arguing that since the Maastricht Treaty, Europe been relying too heavily on the virtues of binding co-ordination and not enough on the trickle-down effects of federalism to support the economy.
Looking at structural policies connected with growth, employment and cohesion, the second part of the book sees Francesco De Palma and Guy Tchibozo outlining the EU's employment policy. Michel Dévoluy comments that thanks to the Lisbon Strategy, the motor role of liberalising the economy is no longer given an explicit place in the front row. Damien Broussole, however, demonstrates that industrial policy, competition and the Single Market are inter-connected through the question of market liberalisation. The exception which proves the rule of the free operating of markets, the Common Agricultural Policy was created to directly intervene, in the name of the general interest, in the price forming process. Describing the foundations, operations, results and future of the CAP in a critical, documented manner, Meixing Dai believes it will change in the direction of liberalisation and sustainable development.
In the third part of the book, Jalal El Ouardighi and René Kahn begin by exposing the changing doctrine of regional policy, explaining the ins and outs of it and providing original statistical indicators for measuring the results it has achieved. Eric Rugraff then examines the impact of the European Union's development and cooperation policy towards the South. The latter topic encourages Michel Dévoluy to make two general observations to sum up. Firstly, the European Union has all it needs to become an exemplary political power in the world, which could help establish better global geopolitical balance. But the objective of putting the finishing touches to regional integration to bring economic progress (and paying attention to its fundamental values of peace and solidarity) has not been provided with true economic guidance. The book's editor concludes that it is clearly time for a form of European-style interventionism as a substitute for the free market orthodoxy practised in Europe.
Michel Theys
*** European Economic Governance revisited. Ligue européenne de la coopération économique (Place du Champ de Mars 2 #8, B-1050 Brussels. Tel: (32-2) 2198250 - Fax: (32-2) 2190663 -- E-mail: elec@easynet.be - Internet: http://www.elec.easynet.be ). "Cahier Comte Boël" series, No.11. 2004, 51 pp..
Jointly published by the Economic and Social Committee and the European Economic Cooperation League's Monetary Panel - headed by Jean-Jacques Rey - this publication analyses the reasons for the malfunctioning of European economic governance within the context of the Single Market and Monetary Union, and goes on to provide keys ideas for improvement. The book starts by considering the thesis that the macro-economic policies underlying Economic and Monetary Union require a coordinated approach among Member States, as does the monetary component, to serve the community interest. The decision-making process behind this policy co-ordination is known as economic governance. The authors express concern at what they describe as insufficient governance five years after the introduction of the euro. Among the recommended solutions are better consultation between monetary and political authorities, a more evolved system for the collective management of budget discipline, greater assistance for Member States from the institutions for the introduction of internal reform, and fiscal harmonisation where possible, along with institutional changes. (STu)
*** The monetary policy of the ECB 2004. European Central Bank (Postfach 160319, D-60066 Frankfurt am Main, Germany. Tel: (49-69) 1344-0 - Fax: 1344-6000 - Internet: http: //http://www.ecb.int ). 2004, 126 pp. ISBN 92-9181-479-2.
This report on the European Central Bank's economic policy in 2004 provides highly detailed, concise outlines of the institutional, decision-making and juridical framework for Monetary Union, and useful statistical tables comparing the eurozone with the United States and Japan. The ECB's monetary intervention mechanisms are clearly explained and their application in 1999 to 2003 is described. A sober publication, without any surprises or new revelations up its sleeve, but a good introduction to the workings of European Monetary Union. (PB)
*** VINCENT BIGNON, YURI BIONDI, XAVIER RAGOT: Une analyse économique de la “juste valeur". L'évolution des principes comptables dans la réglementation européenne. Centre Saint-Gobain pour la Recherche en Economie (47 rue Louis Blanc, F-92984 Courbevoie. Tel: (33-1) 49041100 - Fax: (33-1) 49041101 - E-mail centre@saint-gobain.com - Internet: http://www.centresaint-gobain.org ). "Prisme" series, No. 4. 2004, 34 pp.
European accounting regulations have to date been based on the logic of historic costs (assessment of balance sheets) was based on the amortised costs of acquisition of assets. On 1 January 2005, however, a regulation will come into force, imposing new accounting standards that will apply to all companies quoted on the stock exchange, introducing a new principle, 'fair value'. This principle involves determining the value of assets by estimating updated flows of forecast profits the assets may give rise to. This book was written university lecturers and a researcher at the French research institute CNRS. It aims to describe the two strands of economic reasoning underlying these two approaches to accountancy in Europe, in order to highlight their respective domains of application and the option of combining them. It is supplemented by a commentary by Richard Barker, University Senior Lecturer in Accounting at Cambridge University's Judge Institute of Management. (STu)
*** FEDERICO ORTINO: Basic Legal Instruments for the Liberalisation of Trade. A Comparative Analysis of EC and WTO Law. Hart Publishing (Dalter's Boatyard, Folly Bridge, Abingdon Road, OX1 4LB. Tel: (44-1865) 245533 - Fax: 794882 - E-mail: ma&il@hartpub.co.uk - Internet: http: //http://www.hartpub.co.uk ). "Studies in International Trade Law", No. 1. 2004, 502 pp, £65. ISBN 1-84113-425-2.
Over time, the interpretation and application of international and regional trade rules have become a highly specialised domain. In this book, Federico Ortino, lecturer in international trade law at Trento University in Italy, makes an in-depth study of the legal concepts characterising the two main groups active in the field of international trade regulations. The author compares the European Union and the World Trade Organisation, dissecting the basic legal instruments they use for the liberalisation of trade between their member countries. (LD)
*** RALPH H. FOLSOM: Accord de libre-échange nord-américain. Editions Pedone (13 rue Soufflot, F-75005 Paris. E-mail: editions-pedone@wanadoo.fr). "Etudes internationales" series, No. 11. 2004, 156 pp, 20 euros. ISBN 2-233-00440-X.
This reference work discusses the key question of the nature of relations between NAFTA and the European Union: are they allies or rivals? Or both? The introductory chapter broadly outlines the history of the creation of the free trade agreement between the United States and Canada in 1989 (the CFTA or Canadian-United States Free Trade Agreement) and the creation of the North Atlantic Free Trade Association in 1994. Unlike the European project, which involved an embryonic political dimension right from the start, NAFTA is purely a trade agreement. Alongside the dominance of the US economy over its neighbours, the book sheds light on the need for the United States to have special trading relations with Canada and Mexico, which supply raw materials (Canada) and cheap labour (Mexico). The United States of America is a nation that depends on outside sources for energy, and one of the reasons for the meshing of the North American economies lies in the fact that Canada and Mexico both have energy surplusses, explains Ralph Folsom, law lecturer at San Diego University in California. The author also discusses the independence of the United States with regard to the European market, which imports the greatest volume of US products. (NDy)
*** CLAUDE BERTHOMIEU, ABDELKADER CHAABANE, ABDELFETTAH GHORBEL (Eds.): La restauration du rôle de l'Etat dans la croissance et le développement économiques. Editions Publisud (15 rue des Cinq-Diamants, F-75013 Paris. Tel: (33-1) 45807850 - Fax: 45899415 - E-mail: edipublisud@wanadoo.fr - Internet: http: //http://www.publisud.fr ). "Le développement dans les faits" series. 2004, 301 pp, 28.44 euros. ISBN 2-86600-972-X.
In the view of the dozen or so French and Tunisian university researchers and lecturers who have contributed to this book, combatting poverty and inequality can never been left to the market. The whole history of mankind demonstrates this in their opinion - only collective solidarity and public aid initiatives can be taken into account for effectively combatting poverty and inequality. For this reason, they analyse the role of the state, calling for it to be given a greater role than what it is granted under neo-liberal philosophy. Some essays argue that the state is even a decisive factor in production, along with labour and capital, having a decidedly indispensable role in the growth and economic development processes. (LD)
*** ANTONIO SASSU, ABDELKADER SID AHMED (Eds.): Technologies de l'information et développement économique local. Editions Publisud (see above) and Isprom (32 piazza d'Italia, I-07100 Italy. Tel: (39-79) 237364 - Fax: 200083 - E-mail: lavleo@tiscalinet.it). "Série Economique". 2004, 306 pp, 39.81 euros. ISBN 2-86600-973-8.
How does new information and communications technology impact on companies in other, traditional, business sectors? Is the new technology a tool for reducing the gap between under-developed and developed regions or does it risk increasing said gap? This selection of articles answers this question by considering from a micro-economic viewpoint, experiences in a series of regions of Mediterranean countries. (LD)
*** The EUROPEAN COMMISSION (Official Publications Office of the European Communities, L-2985 Luxembourg. Internet: http: //publications.eu.int) has published the following document:
*** Entreprise Europe. DG Enterprise, Information and Communications Unit (Tel: (32-2) 2966549 - Fax: 2991926 - E-mail: enterprise-europe@cec.eu.int). July-September 2004, No. 16, 24 pp.
Entreprise Europe aims to demonstrate how support for businesses, innovation and entrepreneurship can help create sustained growth in Europe, with more and better jobs, and greater social cohesion. Concretely, this issue highlights the importance of industry and includes an article echoing RDT Info, Issue 42 (published last week) on hydrogen for the car industry. Another Arielle looks at more environmentally friendly tyres produced using fewer dangerous chemicals. Other articles look at progress with the Small Enterprise Charter, and China as a partner and trading competition.
*** The Federalist Debate. The Federalist Debate (26 Via Schina, I-10144 Turin. Tel/Fax: (39-11) 4732843 - E-mail: federalist.debate@libero.it). July 2004, No. 2, 64 pp, Annual subscription: 15 euros.
As usual, this review includes articles by a series of authors from a range of different origins looking at subjects like how the consequences of EU enlargement are viewed in the world, the problems George Bush and Ariel Sharon have got bogged down in, the United States' lack of respect for the Geneva Convention and the dangers of this lack of respect, the link between citizenship and residence in the EU, and the desire to approximate as far as possible the rights of legal residents with the rights of citizens.
***Economia Exterior. Estudios de Politica Exterior SA (6 Padilla. E-28006 Madrid. Tel: (34-91) 4312628 - Fax: 5777252 - E-mail: revista@politicaexterior.com). Summer 2004, No. 29, 136 pp. 13 euros. Annual subscription: 66.50 euros.
This review looks at France and Spain's close economic ties, in a series of articles by French and Spanish experts and politicians, like Edouard Balladur (on the impact of recent events like the European elections and disagreements over the euro) and Laurent Fabius (on the need to draw closer links with increasingly anxious French politicians). A series of political, cultural, and economic issues (the role of big business, energy and telecoms markets, etc) are also covered in the review.
*** Afkar / Ideas. Estudios de Política Exterior SA (6 Padilla, ES-28006 Madrid. Tel: (34-91) 4312628 - Fax: 5777252 - Internet: http://www.politicaexterior.com ). Summer 2004, No. 3, 122 pp., 8 euros. Annual subscription: 26 euros.
This review of dialogue between the Maghreb, Spain and the rest of Europe asks what factors encourage young Moroccans to emigrate. There is an article by Spanish foreign minister Miguel Moratinos on ten years of the Barcelona Process, assessing Spain's new relations with the Maghreb. Other articles look at the brain drain and the religious guidance of young Muslims and the reformist wing of Islam in Morocco.
*** In Europa. Centro In Europa (7/5 via Ippolito D'Aste, I-16121 Genoa. Tel: (39-10) 540928 - Fax: 5644356 - E-mail: segreteria@eurete.it - Internet: http://www.eurete.it ). 2004, No. 3, 60+52 pp., 7.75 euros. Annual subscription: 92 euros. ISBN 88-8163-228-4.
This review is written in English and Italian (if you turn it over, it is in the other language). It publishes a transcript of speeches by politicians and organisers of the European Cultural Capitals on the role of Genoa as a culture capital, the opportunities opened up by such events, and the importance of culture capitals in Europe. The second part of the review looks at theatre in Europe, highlighting its social and cultural role (and diversity).
Review in brief
*** Anadolu. Anadolu ASBL. September 2004, No. 21 (Special issue), Wavre. This special issue of the European Turkish review looks at relations between the EU and Turkey and outlines arguments in favour of Turkey joining the EUEuropean Centre for Disease Prevention and Control. *** Annual Report 2003/2004. Community of European Railway and Infrastructure Companies. 2004, Brussels. The second annual report published by the Community of European Railway and Infrastructure Companies.