Economic Integration Essay

1063 words - 4 pages

This essay will attempt to demonstrate how economic integration and the creation of a common market (opening of internal border) in the European Union contributes to growing concern about organized crime and how the EU dealt with such problems. In order to do so the theory of neo-functionalism and the spillover effect will help to evaluate and explain how economic integration lead to further cooperation and the creation of supranational entities in the security arena. First, to better understand the effect of economic integration we need to look at how the EU created a single market and how it affected borders control. Second, the neo-functionalist perspective will be used to examine the increasing cooperation between EU members and why organized crime has become a big concern. Finally, this paper will look at organized crime in the EU and if they managed to deal effectively with the problem.
The European Union cooperation all started with economic integration. Since the beginning of the ECSC in 1952 until now one of the major forces but also one of the major weaknesses of the EU has been their will for a common market and a monetary union. The single market was achieved in 1992 with the entrance into function of the Maastricht treaty. This treaty greatly influenced how states would have to deal with external border control and the free movement of the people because what the Maastricht treaty did was not only opening a single market, but also allowing people, goods and services to move freely across European Union member states. Economic integration has explained by Nevin has usually 5 level which goes from he lowest o he highest level of cooperation. The first level of integration is the preferential tariff which only allows states to lower tax rate on imports of other states with whom they made arrangements. The second level is the free trade area that creates a zero tariff zone between members of the agreement. The third level is the one of a customs union that does not only imply free trade but also commonly agreed tariff on all imports that come from the exterior of the zone. The fourth level is the common which allow not only free trade and same tariffs but also it permits the free movement of goods and services. Finally, the fifth level and the most integrated one is economic union, this level adds monetary and fiscal policy cohesion to the fourth level (1990, p.55-57). This paper will mainly focus on the fourth level of economic integration because of the effect it had on the free movement of people and other resources. To understand why a common market was born in Europe one needs to take into account the influence of liberalism theory over the international system. Liberal ideas are at the hearth of a common market because it promotes capital to move freely and minimum regulation of the market such as imposition of tariff barrier. There is major economic revenue for the states that are members of a common market. One theory that...

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