*** ADRIAAN DIERX, FABIENNE ILZKOVITZ, KHALID SEKKAT (Editors): European Integration and the Functioning of Product Markets. Published at the request of the European Commission by Edward Elgar Publishing (Glensanda House, Montpellier Parade, Cheltenham, Glos GL50 1UA, UK. Tel: (44-1242) 226934 - fax: 262111 - E-mail: info@e-elgar.co.uk - Internet: http://www.e-elgar.com ). 2004, 279 pp. ISBN 1-84376-393-1 and 92-894-3470-8.
Many people can still remember the famous “Cecchini report”, which at the beginning of the 1990s gave the go-ahead for an unprecedented mobilisation of the “great European market without any internal borders” due to enter into force on 1 January 2003. Although this book will never bee as well known, it constitutes the logical follow-up with senior officials at the European Commission, more particularly those at Directorate General Economic and Financial Affairs and eminent representatives from the academic world draw up a balance sheet that it as both insightful and far-reaching, of the “single market” ten years after it has been set up.
This detailed analysis and book is obviously not aimed at the wider public, even if you don't have to be an expert economist to benefit from …the consequences of the continued European products market integration process, as described in the first part of the book and the micro-economic fall out from the integration of the goods market. Firstly, the greatest possible price coherence which results from this (as well as the arrival of the euro), is revealed, with the phenomenon being particularly observed in countries at the heart of the Union. The impact of the single market in terms of industrial and geographical diversification of the most important industries it then studies, this contribution suggests a trend for companies to refocus on their basis skills. At the same time, these companies now operate throughout the European Union, having developed a multinational production character. Another insight is that of the impact of market integration in terms of concentration and industrial performances. A final chapter expands this question and looks at the specialisation going on in the different countries, as well as the geographical concentration of manufacturing activities.
The second part of the book looks at the macro-economic fall-out of the single market. In this way, three of the writers look at the impact of the reforms carried out since 1993 with regard to employment and growth and suggest that this has gained a quarter of a cent a year for the most part during this period. However, they underline that the sustainable rate of growth of 3% decided on during the Lisbon summit will need a speeding up of structural reforms. Another chapter examines how the different market segments react to the relationship between the euro and the dollar. The final chapter looks at how changes in industrial structures following the process of market integration affects Member State exposure to asymmetrical shocks, such as those linked to changes in exchange rates of the European and US currencies. In conclusion, the book coordinators observe that the single market has helped improve macro-economic performance in the Union. Nevertheless, nothing is perfect, quite the contrary. The differences are living standards in the Union and USA (they say responsibility to the lack of investment in new technology in Europe) demonstrates this. They add that despite the single market and the euro, products markets still remain relatively fragmented. This reveals, in their eyes, the importance of providing the Lisbon Strategy with a new boost.
Michel Theys
*** HARALD BADINGER, FRITZ BREUSS: Trade and Productivity: An Industry Perspective. Europainstitut der Wirtschaftsuniversität Vienna (39-45 Althanstrasse, A-1090 Vienna. Tel: (43-1) 313364135 - fax: 31336758 - E-mail: europafragen2@wu-wien.ac.at - Internet: http: //fgr.wu-wien.ac.at/institut/ef/home01en.html). "EI Working Papers" series. 2005, No. 66, 36 pp., € 7.20
The correlation between trade and productivity has been the subject of many studies in the past. We could even go back to Adam Smith, who said that the division of labour is limited by the size of the market. This study at the European Institute at the University of Vienna draws on the statistics of around fifteen industries in fourteen OECD and concludes as in previous studies that a rise in exports leads to a rise in productivity. The difference resides, however, in the difference of this rise. The researchers at Europaininstitut arrive at a rate that is less than half of the other estimates. This publication is both insightful and theoretical and therefore seeks to explain the reasons for this difference, cause by variation sin choice of data and statistical methods.
(FRo)
*** PETER HAISS, STEFAN MARIN: Options for Developing Bond Markets - Lessons from Asia for Central and Eastern Europe. Europainstitut Wirtschaftsuniversität Vienna (see coordinates attached)) "EI Working Papers" series, No. 63. 2005, 66 p., 7,20 €.
Two researchers from the European Institute at the University of Vienna draw the lessons from the efforts made in Asian countries after the financial crises of 1997 and 1998 to relaunch their bonds markets and believe that Eastern and Central European countries display certain similarities with those in Asia and from which they can draw inspiration.
(LD)
*** GERHARD FINK, PETER HAISS, HANS CHRISTIAN MANTLER: The Finance-Growth Nexus: Market Economies vs. Transition Countries. Europainstitut der Wirtschaftsuniversität Vienna (see coordinates attached). "EI Working Papers", No. 64. 2005, 46 pp, €7.20.
This document draws the link between development of the financial sector and increased growth (link in the economies of the developed countries, much more marked in the economies in transition in the short term). The book focuses on four questions: is this link the same in market economies and countries in transition? Does the financial sector have short or long term effects? What are the different segments of the financial sector that influence growth in the same way? Like all the documents in the series “El Working Papers”, it presents the method used: pooling empirical data, theoretical movements and growth as an objective.
(FRo)
*** DANIEL GARRIGUE: Pacte de stabilité et de croissance: de l'automaticité à la responsabilité. Délégation pour l'Union européenne de l'Assemblée nationale (Boutique de l'Assemblée nationale, 4 rue Aristide Briand, F-75007 Paris. Tel: (33-1) 40636121 - Internet: http://www.assemblee-nationale.fr ). "Les rapports d'information de l'Assemblée nationale" series, No. 2124. 2005, 69 pp., €3.50. ISBN 2-11-119033-0.
This report by the French MP shows how the stability and growth pact became distanced in its implementation from its original guiding principles. It also clarifies the importance of the theoretical debate developed around the interpretation of the pact and n which Member States have drawn to give it its economic logic. The author underlines the necessity of setting out the criteria for the public debt, largely ignored previously, as well as the growth objective.
(PBo)
*** THIERRY MARIANI: La sûreté du transport aérien en Europe: un défi permanent à relever. Délégation pour l'Union européenne de l'Assemblée nationale (coordinates attached). "Les rapports d'information de l'Assemblée nationale" series, No. 2241. 2005, 116 pp., € 5. ISBN 2-1111-7729-6.
This excellently devised Information Report provides an analysis by a French MP of the consequences of the attacks of 11 September 2001 on US airline security in the USA and Europe. Thierry Mariani in this way explains how the USA went from a much less security system than in Europe to a maximum alert mechanism of which the Union has been suffering the repercussions given that it has had to deal with application of US legislation outside of the US. The author looks at the weaknesses in the security system put in place on both sides of the Atlantic: malfunctions, absence of consensus on responsibility for financing security measures etc. He also provides some clues about reforms and appeals for clarification of trans-Atlantic relations.
(PBo)
*** MYRIAM DECKER: Structures et stratégies des companies aériennes à bas coûts. Les turbulences du "low cost" dans le ciel européen. L'Harmattan (5-7 rue de l'Ecole-Polytechnique, F-75005 Paris. Tel: (33-1) 40467920 - fax: 43258203 - E-mail: diffusion.harmattan@wanadoo.fr - Internet: http: //http://www.editions-harmattan.fr ). "Inter-National" series. 2004, 160 pp., €14.50. ISBN 2-7475-7642-6.
Continuing with her studies (graduate of the Institute of political studies in Strasbourg) she is pursuing her studies at the Higher Institute of Commerce in Norway), Myriam Decker proposes, in this book, a detailed and innovative analysis of the phenomena of low cost airlines in Europe. She shows clearly how these companies display two original characteristics. They are different from traditional companies by their cost structures, which are lower across the board. She then looks at how their network is a unique feature. After demonstrating that despite appearances they are quite different, the author looks at the quantitative and qualitative consequences such as prices, passengers changes to the European airport system. Decker believes that these companies “lack moderation both in their public communication policy and in their desire to reduce costs that sometimes go against fee competition”. Myriam Decker observes, in conclusion, that Ryan air's reprimand by the European Commission for aid paid to the Belgian airport of Charleroi will serve as a warning to the whole sector. This intervention, observes Damien Broussole his preface, "constituted a salutary reminder that rules were the same for everyone and that free competition could only work effectively within a solid framework and that therefore, there is not real freedom without laws". The preface also contains a rejoinder explaining that the Commission could have been even more severe, but its motive was to, "preserve the future of low const companies… the 'opportunity that they represent for certain regional airports and a boost that this could provide to traditional companies".
(PBo)
*** FRANKLIN DEHOUSSE, CATHERINE THIRY, PIERRE VAN DEN BRULE: Vers le marché unique des transports ferroviaires: les avantages et les dangers de la stratégie européenne. Institut Royal des Relations Internationales (69 rue de Namur, B-1000 Brussels. Tel: (32 2)2234114 - fax: 2234116 - E-mail: studia.diplomatica@irri-kiib.be - Internet: http://www.irri-kiib.be/Studia-Diplomatica.htm ). "Studia Diplomatica", Vol. LVII. 2004 series, No. 2, 131 pp.. Subscription: €81 (Belgium), € 93 (Europe). ISBN 2-930432-01-2.
Over the decades, railway transport remained hardly influenced by the creation of Community Europe and it needed the launch of the single market for this situation to gradually begin to change. What explains this inertia? Because this involves a vital sector for the State in which pure competition does not sit easily alongside it, without counting the traditional organisation of public national railway company monopolies resisted any introduction of reform. This explains why it was not until the railway crisis of the 1990s that significant initiatives at the European level were made, such as the “regulatory packages”. The three authors of this very dense publication explain that this speeding up of reforms demonstrates to what point, the European institutions became crucial for determining the future of rail. To make this clear, Professor Dehousse (a judge at the Tribunal of First Instance), Catherine Thiry (researcher at the University of Liège) and Pierre Van Den Brûle (researcher at the Royal Institut of International Relations) points out the general framework of these initiatives, namely the specific characteristics of this sector, the rules of the Treaty and the main guidelines of reform. They then examine the different elements of the current regulatory framework and the public intervention regime. After having analysed the application of rules for competition, which are becoming a more central question today, the authors look at the probable impact of proposals presented by the Commission last year.
(LD)
*** CHRISTIAN PHILIP: Le troisième paquet ferroviaire: étape ultime de la bataille du rail en Europe ? Délégation pour l'Union européenne de l'Assemblée nationale (see coordinates attached). "Les documents d'information de l'assemblée nationale" series, No 1886. 2004, 98 pp., € 5. ISBN 2-11-118808-5.
In this report French MEP Christian Philip looks at the measures proposed by the Commission last March as part of the “third railway package”. He considers that they are needed in principle insofar as they assist the installation of the Community train driver certification scheme and in the opening up passenger traffic to competition (he would have preferred, however, that this were not just limited to international traffic). He then looks at the different misgiving provoked by the Commission proposals before putting forward a number of recommendations.
(LD)
*** EUROPEAN COMMISSION (Official publications office of the European Communautés, L-2985 Luxembourg. Internet: http: //publications.eu.int) has published the following document:
*** Innovation & Technology Transfer. Enterprise and Industry DG, Communication and Information Unit (B-1049 Brussels. Fax: (32-2) 2991926 - Internet: http://www.cordis.lu/itt/itt-en/home.html ). March 2004, No 2/04, 32 pp..
The holiday season is approaching and tourists are rather fickle consumers. This publication therefore looks at innovation in the tourist industry. If famous European destinations don't have too much to worry about from competition, they, nonetheless, have to make sure that tourism assists the economy. To achieve this, Europe has to pay attention to innovation by developing, for example, new kinds of holiday. Other articles focus on refocusing the Lisbon Strategy, the preparation of the seventh research and development framework programme. Other papers look at innovating actions or ideas involving SMEs, South Eastern European countries, particularly the implementation of regional innovation strategies.
*** La lettre de Confrontations Europe. Confrontations Europe (41 rue Emile-Zola, F-93107 Montreuil Cedex. Tel: (33-1) 49881194 - fax: 49881184 - E-mail: Confrontations@wanadoo.fr - Internet: http://www.confrontations.org ). April-June 2005, No. 70, 20 pp., €7. Subscription: € 28.
The central theme of this issue is the need for innovation in the industrial sector and follows a colloquy organised by Confrontations Europe and the Alpha Group. It indicates the importance for competitiveness and jobs in Europe to establish a genuine coherent industrial policy. This dossier includes interviews with Philippe Herzog, Philippe Busquin and Mario Monti - analysing the state of public intervention, the position of wage earners, the importance of collaboration between companies and universities. It also provides examples of successful European industrial projects such as Galileo and Airbus. Contributions tackles European current affairs such as the German vision of the Stability Pacte, social services, health and services of general interest and reform of health insurance. Other societal and cultural aspects in Europe, such as the cinema and the importance of cultural foundations in Europe. Michel Rocard mentions the discrete but useful and growing role of the European Union in resolving the Israeli Palestinian conflicts and Michel Agnetta looks at the future power of Chine in the international monetary system.
*** Politica Exterior. Estudios de Politica Exterior SA (6 Padilla. E-28006 Madrid. Tel: (34-91) 4312628 - fax: 5777252 - E-mail: revista@politicaexterior.com). March-April, No. 104, 182 pp. 11 euros. Subscription: 93 euros.
José Enrique de Ayala looks at the European Security and Defence Policy, which has made some progress over recent years. The author underlines that in the perspective of creating a Europe of citizens, CFSP should not be ignored with 78% of citizens saying they are in favour of it. Other articles look at the orientations of the second mandate for the Bush government, relations between the USA and Iran, as well as the influence of this country on regional security. One of the papers looks at the new agenda of Abu Mazen, "alias" Mahmud Abbas. This issue corresponds with the commemoration of the first anniversary of the attacks in Madrid on 11 March. It analyses the “jihadii” terrorism in Europe, Muslim immigration on the continent and relations between Spain and Morocco. These relations are also looked at in other articles, as well as those the Union has with Latin America. One of the other contributions deals with the opportunities and risks to the Spanish economy.
*** Spain. OECD Publications (2 rue André-Pascal, F-75775 Paris cedex 16. E-mail: SourceOECD@oecd.org - Internet: http://www.oecd.org ). "Economic Surveys" series. April 2005, No. 6, 164 p.. ISBN 92-64-00961-2
Following last week's presentation of Brazil, this OECD publication looks at the Spanish economy. For several years this has played a dynamic role and the country continues to reduce the difference of income in the euro zone and has created a significant number of jobs. However, unemployment remains high and Spain has other problems. This report opens with a series of recommendations, before examining in more detail certain problems in the Spanish economy, categorised in five chapters: challenges for achieving a good performance; preserving economic stability and competitiveness; speeding up productivity growth, while keeping the dynamism of job creation; using to full advantage the decentralisation of the public sector, reforming pensions. These publications are available in several languages.