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Why did European states engage in a process of economic integration Are the original reasons still valid today - Essay Example

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The major objective of the integration was to promote the elimination of barriers that exist between the member states such tariff barriers. The main basis of…
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Why did European states engage in a process of economic integration Are the original reasons still valid today

The competition was expected to increase in the integrated market was expected to result to productive allocation of the economic resources. Integration was aimed at providing the investors with incentives to invest in innovations improving the dynamic efficiency of the economy. The consumers in the market benefited from the integration as the prices were low and there was more variety of goods and services. The internal market has played an important role in promoting integration though the potential has not been exploited fully. This paper gives an outlook at the reasons why the states engage in market integration, the benefits and shortcomings.
There has been a constant relation between the political system and the legislative system over the past few decades resulting to the implementation and formulation of internal programmes and policies that contribute to integration. Law and politics are seen to interact and this has led to the laying down of policies that lead to the strengthening of the regional integration through increased competition, regional policy and industrial policy as explained by Geradin (2004). This has led to drastic improvements in the agricultural sector, fisheries, social systems and the environment. The level of justice has improved leading to the overall changes in the home affairs of the member states. This has led to the adoption of a common currency and market liberalisation in the region. This is however a representative since in most sectors there is a portfolio of initiatives instead of having a single one encompassing many policies.
The European Union was initiated in the 1980s with the publication of the White Paper that mainly dealt with the establishment of a common market. This was mainly to fight against the political, monetary and economic crisis experience in the past decades. The union helped in the restoring confidence in the European market and improving the performance of ... Read More
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