Economy of the European Union

DESCRIPTION AND GOALS
The course aims are studying the theoretical framework for the process of European integration, as well as offering a general overview of the EU as a global actor and of how it works. The EU budget will be analyzed as an economic instrument to accomplish the EU objectives. The internal market (the economic core of the EU) and the common competition policy will also be studied. The most important achievement of the EU economy (the Economic and Monetary Union -the euro) will then be explained. Throughout the course, the role of the EU as one of the most important global actors in the world trade will be emphasized. The course will also provide a brief presentation of the most important sectorial policies developed by the EU in fields like agriculture, regional and social improvement. Finally, students will reflect on the relevance of the opinion of civil society in the EU decision-making process.

CONTENT 
1. Introduction
2. A Brief History of the European Union
3. The Institutional Framework of the European Union
4. The EU Budget
5. Internal Policies: Common Agricultural Policy, Regional Policy, Social Policy, External Trade Policy of the EU, Development Cooperation Policy, Security and Borders
6. Stabilization: Economic and Monetary Union
7. European national Economies: an in Depth Analysis
8. European Regional Innovation Policy
9. Case Study: The Basque Country

METHODOLOGY
The course will include lectures as well as classroom discussions and students? presentations.
Students will need to do several readings before the scheduled classes. Participation in class is compulsory. Every student will have to submit three case studies and at least one compulsory essay and participate in presentations on different subjects.

COMPULSORY READINGS
- Kutner, R. (2008): ?The Copenhagen Consensus. Reading Adam Smith in Denmark?,
Foreign Affairs Vol. 87, number 2 March/April 2008.
- Aguado, R. et al (2008): ?Patterns of Innovation in the EU-25 Regions: A Typology and
Policy Recommendations?.
- Gardner, A.L. and S.E. Eizenstat (2010): ?New Treaty, New Influence?? Foreign Affairs Vol.
89, number 2 March/April 2010.
- Aguado, R. and Parrilli, MD (2009): ?Innovation Value Chain: Efficiency and Effectiveness
Issues in the Basque Country?.
- Farrel, H. and J. Quiggin (2011): ?How to Save the Euro?and the EU?, Foreign Affairs Vol.
90, number 3 May/June 2011.

ASSESSMENT
- Essay: 20%
- Case studies: 30%
- Participation: 10%
- Final exam: 40%

BIBLIOGRAPHY
- European Communities, External and intra-European Union Trade. Statistical Yearbook,
Data 1958-2005, OOPEC, Luxembourg, 2006.
- Hitiris, Theo, European Union Economics, 5th edition, Prentice Hall, Essex, 2003.
- Hix, Simon, The Political System of the European Union, 2nd edition, Palgrave, New York,
2005.
- Larry, Neal; Barbezat, Daniel, The Economics of the European Union and the Economics of
Europe, Oxford University Press, Oxford, 1998.
- McCormick, John, Understanding the European Union. A concise introduction, 3rd edition,
Palgrave, New York, 2005.
- MacDonald, Frank; Dearden, Stephen, European Economic Integration, 4th edition, Prentice
Hall, 2005.
- Molle, Willem, The Economics of European Integration. Theory, Practice, Policy, 5th edition,
Ashgate, 2006.
- Neal, Larry, The Economics of Europe and the European Union, Cambridge University Press,
Cambridge, 2007.
- Nieto Solís, José Antonio, La Unión Europea. Una nueva etapa en la integración económica
de Europa, Pirámide, Madrid, 2001.
- Nugent, Neil, The government and politics of the European Union, 6th edition, Duke
University Press, 2006.

NOTE: Class attendance is essential in all courses. Therefore, it will be checked daily. Missing
classes will negatively affect the students' final grade.