The EU and the Euoropean Single Currency

Table of Content

Table of contents

Capable 1: The Single Market and the European Single Currency … … 3

Capable 2: EU Competition Policy ………………………………… … 5

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Capable 3: Optimum Currency Areas …………………………………8

Capable 4: The Single European Act.………………………..………..10

Mentions… … … … … … … … … … … … … … … … … … … … … … … … … … … … … … ..11

Capable 1:The Single Market and the European Single Currency

Diamantis Moutsioulis S.A. is a company located in the Prefecture of Thessaloniki and the shop is located in the metropolis centre and is engaged in import – export, distribution and gross revenues. The company counts four stores. The shops have been renovated late and in recent old ages the company operates via the cyberspace as it has online shop ( e-shop ) . This concern profile is household and given increased attending to the quality and dependability of merchandises and services.

The important bead in turnover of concern by under ingestion and the increasing debts to Bankss form mundane unpleasant image faced by the specific SME. The company faces the following jobs that are the grounds for the demand of restructuring:

  • Lack of economic systems of graduated table.
  • Insufficient information on technological developments and fluctuations in consumer penchants.
  • Small support chances.
  • Ineffective direction systems.

Another job for the demand of restructuring is the deficiency of liquidness of the corporate sector of SMEs, as holds receipts from clients have been increased, while payments to providers are made shorter and the usage of post-dated cheques invariably limited.

The company has to do a realistic appraisal of the concern environment, the placement of the company in this environment, choosing a scheme, and the chase of this scheme dynamically and expeditiously. Bettering the fight of the company in a period of accelerated devastation of the weaker is of course looking for its endurance. Competitiveness is the ability of an entity to bring forth and sell goods and services using the comparative advantages available to a greater extent than its rivals.

The restructuring procedure will take to the deficiency of bureaucratism and allowance of faster determination devising. Full and complete trueness or designation of the directors and executives with the concern civilization and concern aims and faster response to the actions of the competition.

The company has to make the limited homo and material resources in a sustainable and competitory concern, following concern schemes that will let it to better its market portions in the domestic market and spread out its concern in foreign markets ( Johnson & A ; Scholes, 1999:87 ) .

In general, little and average endeavors were the “ also-rans ” of the European crisis. There is a demand to better their entree to bank loans, aid to turn to exports and thereby cut down their dependance on the province of the domestic economic system, but at the top of the determination should be found and the issue of structural barriers faced by SMEs, in legal model and bureaucratic processs.

Despite the fact that the crisis peculiarly harmed little concerns, this is exactly the country that will take to invention and occupation creative activity in the post-crisis period. Banks need to back up them, paying peculiar attending each clip to the range of economic activity and the intent of loaning. The funding of concern undertakings is ever a hard undertaking for the 1 who assumes the function of loaner ; in most instances, nevertheless, the concern program maps as verification of its ability to carry through the endeavor concern end, while the banking system is required to measure, with mensural stairss, the kernel of concern programs ( Johnson & A ; Scholes, 1999:96 ) .

Capable 2: Europium Competition Policy


Commission is committed to radically reform the mechanism for execution of Community competition policy and do it more effectual, while cut downing ruddy tape for companies. So, on 16 December 2002 the European Council adopted Regulation 1/2003 ( hereinafter Regulations ) for the application of Articles 81 and 82 RP, which replaces Regulation 17/62. This reform does non change the substance of the content of the commissariats of Articles 81 and 82 of the EC Treaty. The Regulation creates a new legal system for more effectual execution of Articles 81 and 82 through direct application and beef uping the function of national governments.

The chief elements of the Regulation are:

the abolishment of the presentment system and enfranchisement of competition restrictive understandings that fulfill the conditions of Article 81 ( 3 ) of the Treaty,

beef up the application of Articles 81 and 82 at national degree, the creative activity of a European Competition Network and beef uping the powers of the European Commission ( Christodoulidis, 2010: 112 ) .

It is generated therefore, an effectual mechanism for covering with concern, engage in cross-border patterns that restrict competition. Through this web, the competition governments inform each other of their determinations traveling to acquire and have remarks from other competition governments. Where demand for a coherent and effectual execution of the statute law, the European Commission may make up one’s mind to cover itself with a instance. In the operation of the web, groups of experts from some sectors ( for illustration in fiscal services, telecommunications, energy, etc. ) discuss competition jobs and advance common attacks ( Christodoulidis, 2010: 115 ) .


Harmonizing to Article 3 ( 1 ) national tribunals and national competition governments have an duty to use Articles 81 and 82 EC applies where national competition jurisprudence to understandings and opprobrious patterns which may impact intra-Community trade. In this instance it is peculiarly of import to observe the relationship between Article 3 and Article 11 ( 6 ) of the Rules harmonizing to which the induction of proceedings by the Commission E for the same instance, involves a loss of legal power of national competition governments to use articles 81 and 82. Subsequently, Article 3 ( 2 ) requires the competition governments and tribunals of the Member States to non forbid under national competition jurisprudence, understandings, and determinations by associations of projects and understandings which may impact intra-Community trade, but which are non prohibited from the acquis. Despite this, as already mentioned, the national governments and tribunals are free to use rigorous national statute law on their district, to patterns of concerns. Finally, understandings and patterns that are prohibited by Articles 81 and 82 EC can non be favored by the national statute law ( Nugent, 2004: 68 ) .

European and National Competition Authorities should come under protections of understandings between companies or associations of companies that have as their object or consequence the limitation or deformation of competition ; this means that such understandings are illegal from the beginning. The primary aim of this prohibition is to guarantee that concerns compete alternatively take part in partnerships that alter the allotment of resources and do non promote effectivity.

Furthermore, they should come under protections when there is a dominant place of one or more concern held or keep in all or portion of the domestic market of a merchandise or service. In this manner are prevented the dominant companies to do maltreatment of place in the market by using anti-competitive patterns order to keep or beef up their place ( Nugent, 2004: 72 ) .

The maltreatment of is out particularly when consequences or would ensue ( Rhodes 1996 ) :

  • the direct or indirect repair of unjust purchase or selling monetary values or other unjust under fortunes merchandising conditions ;
  • restricting production or markets or proficient development to the bias of consumer
  • using dissimilar conditions to tantamount minutess with certain companies systematically be placed in a competitory disadvantage,
  • Making the decision of contracts capable to acceptance by contractor’s auxiliary duties which, by their nature or harmonizing to commercial use, have no connexion with the topic of such contracts.

degree Celsiuss.

The acquisition of Skype by Microsoft does non curtail competition or to the market picture call for the general populace or to the purchase of commercial communications, ruled the General Court of the European Union. In September 2011, Microsoft sent the Commission a concentration which was aimed at deriving control of Skype. Cisco and Messagenet, companies supplying package and Internet communications for concerns and the general populace, have submitted to the Commission comments that were intended to show the consequences that would do the proposed amalgamation on competition.

In October 2011 the Commission declared the concentration compatible with the internal market, with Cisco and Messagenet exercising, so, before the General Court was seeking revocation of the Commission’s determination.

With today ‘s determination, the Court finds, foremost, that the Commission ‘s determination merely made aˆ‹aˆ‹a differentiation between Internet communications for the general populace and communications for concerns, without taking a place on whether it must be determined in within the class of communications for the general populace about the being of closer market. It found that the concentration does non raise competition concerns, even the narrowest possible market.

In this context, the Court held that, even if the acquisition of Skype allows Microsoft to keep a portion of 80 % to 90 % in a section of communications for the general populace, refering the picture from computing machines that operate in environment Windows, viz. the operating system developed by Microsoft, the market portions and the grade of concentration in this market section are non declarative of such market power that would enable Microsoft to harm significantly impede effectual competition in the internal market.

The Court besides notes that, with the exclusion of computing machines runing over Windows, other platforms to Microsoft ‘s rivals maintain market portion sufficiently of import to represent communicating webs with grade of usage and attraction for users at least equal to those of Skype and Microsoft together.

Under these fortunes, and sing that Cisco and Messagenet failed to turn out that the amalgamation may harm competition in the communications market for the general populace, the Court concludes that, as respects this market, examined amalgamation is compatible with EU competition regulations.

The General Court dismissed, so the statement of Cisco and Messagenet that, thanks to the dealing, Microsoft was able to reserve in their merchandise to market commercial communications, the Lync, privileged interoperability with Skype and the big base users, at the disbursal of its rivals.

Capable 3 –Optimum Currency Areas

The theory of optimal currency countries argues that first-class part for a system of fixed exchange rates or a common currency is one that has high economic integrating

Economic integrating means free – developed flows of ( Mundell, 1961 ) :

  • goods and services ( trade )
  • fiscal capital ( assets ) and natural capital
  • labour ( in-migration )

The theory was developed by Robert Mundell in 1961. Fixed exchange rates have costs and benefits for states that decide to adhere to these.

The standards of Optimum Currency Area are ( Mundell, 1961 ) :

  1. Free motion of factors of production.
  2. The grade of openness of the economic system.
  3. The pecuniary factor.
  4. Differentiation of production.

The benefit of fixed exchange rates is that it avoids the uncertainness and costs of international trade are to fluctuating exchange rates. The benefit of a state by the acceptance of fixed exchange rate is called efficiency pecuniary benefit.

Eurozone was ne’er an optimum currency country. Since the constitution of met a few of the features of such a compound ( synchronism of economic rhythms, full freedom of labour mobility, monetary value flexibleness, common revenue enhancement policy, efficient direction of shared resources through budgetary transportations ) ( Rosamond, 2000: 105 ) .

An Optimum Currency Area requires closely related purchases of goods and services and factors of production Exports of most EU members to other members rise from 10 % to 20 % of GDP. The EU exports to the U.S. amounted to under 2 % of GDP. But trade between U.S. provinces is larger as a per centum of GDP. There are divergences from the jurisprudence of one monetary value in many EU markets ( even in goods like autos ) . If EU markets had high integrating, so the monetary values of goods and services would be about the same in different markets ( hypertext transfer protocol: // ? _php=true & A ; _type=blogs & A ; _r=0 ) .

Besides, there seems to be high migration between EU states. Europe has many different linguistic communications aˆ‹aˆ‹and different civilizations, forestalling migration and motion of labour. The labour and authorities ordinances besides prevent the motion of labour between economic sectors and states ( an American expression to the EU ) ( Nugent, 2004: 165 ) .

But the mobility of capital when there is no labour mobility can increase the loss of economic stableness. After a diminution in aggregative demand in an EU state, the fiscal informations can easy be transferred elsewhere, but non labour. The loss of fiscal assets may farther cut down production and employment. This will non go on if authorities ordinances constrain financess within national boundary lines. Furthermore, the thin migration may affect the most specialised and scarce workers.

Euro country is characterized by important rigidnesss in labour and merchandise markets, deficiency of a strong cardinal financial transportation mechanism, and national economic systems, each of which has its ain institutional and economic features. Because of these conditions, the incidence of asymmetric dazes is high and their effects intense.

Capable 4 –The Single European Act

A Single European Act in 1986 reinforces the thought of integrating through the creative activity of a big internal market. The acceleration of European integrating with the Single European Act and steps of the constitution of the individual market was mostly coincided with a period of economic growing ( 1985-1990 ) . Single European Act was a effect of force per unit areas relevant parts of the European economic system wishing to accommodate the European economic system to the new conditions of international distribution activities. At the same clip, the regulations of negative integrating strengthened the function of transnational endeavors and their possible engagement in determination devising.

Single European Act abolished the rule of unanimity as the lone manner of doing the EC and introduced the regulation of qualified bulk in peculiar the Single Market to ease determination devising. It strengthened the executive powers of the European Commission and introduced the ‘cooperation process ‘ in decision-making by beef uping the function of the Parliament. It promoted the institutionalization and typically maps and duties of the European Council, expanded the sectors EC policies with the debut of environmental policy, with the strengthening of regional policy and development actions for economic and societal coherence. Finally, it incorporated into the Treaty on European Political Cooperation although it did non incorporated them in other policies continuing the particular character ( hypertext transfer protocol: // ftuId=FTU_1.1.2.html ) .

The processs for the constitution of policies became more effectual because was increased the figure of determinations taken by the Council by qualified bulk so as non to detain the determination. To turn to the democratic shortage was boosted the influence of European Parliament set uping a legislative two-step process ( Nugent, 2004: 73 ) .

Factors impacting European integrating after the sign language of Single European Act were the committedness of the execution of the Single Market. The new currency considered necessary to take deformations in trade. It was accepted the demand for a societal dimension to be smoothed and would countervail some of the effects of broad market ( Christodoulidis, 2010: 83 ) .


  1. Christodoulidis, T. ( 2010 ) . From European Idea in the European Union: The Historical Dimension of the European undertaking from 1923 to 2004, 4th edition, I. Sideris Publications, Athens 2010.
  2. Johnson, G. , Scholes, K. ( 1999 ) .Researching Corporate Scheme, 5th erectile dysfunction. Harlean carpenter: Prentice Hall
  3. Krugman P. , Obstfeld M. , Melitz M. ,International Economics theory and policy,9Thursdayedition, PEARSON, Boston 2012
  4. Mundell R. ( 1961 ) ,A theory of Optimum Currency Areas, American Economic Review 51: 657-665
  5. Nugent, ? . ( 2004 ) . Politicss and Governance in the European Union, Savalas, Athens 2004.
  6. Rhodes, R.A..W. , ( 1996 ) ,The New Governance: Regulating without Government,Political Surveies, 44, ( 4 ) p.68
  7. Rosamond B. , ( 2000 ) ,Theories of European Integration, The E.U. Series, Basingstoke, Macmillan
  8. hypertext transfer protocol: // ftuId=FTU_1.1.2.html
  9. hypertext transfer protocol: // ? _php=true & A ; _type=blogs & A ; _r=0


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