At what level would the EU budget resemble a federal budget?
Around 7% of GDP.
Can EU members have debt
yes
can the EU itself have debt
yes, like the NextGenerationEU
Can the EU run a deficit?
No, because it must maintain a balanced budget.
Why do richer countries still support EU redistribution?
Because Eastern and Southern Europe are important markets for their exports
Why is the EU strong legally but weaker fiscally?
Because EU law has primacy, but the EU budget is only about 1% of GDP.
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Is regional integration the same as globalization?
No. Globalization is worldwide economic interaction, while regional integration involves deeper cooperation with common institutions and rules.
Approximately how many regional economic integration agreements exist in the world?
More than 300.
Why is Balassa’s model widely used?
Because Béla Balassa was the first to systematically describe the stages of economic integration.
Does Balassa’s model include political union?
No, it only describes stages of economic integration.
What is the key difference between trade and free movement?
Trade refers to exchange of goods/services with payment, while free movement means factors of production can cross borders without restrictions.
What’s the difference between an FTA and a trade agreement?
Trade agreement: reduces tariffs
FTA: more ambitious than a trade agreement removes at least 90% of the tariffs
There are trade agreements that are not an FTA, every FTA is a trade agreement.
did the EU start with an FTA?
The European Union did not start with a FTA, in the beginning we had the European Coal and Steel community (ECSC) and the Treaty of Rome. during the Treaty of Rome they made the Customs union.
