Category: European Union

Introduction

According to Miszczynski (p. 6), Poland is a significant player in economy of the European Union. It is one of the largest states in the Central Europe with a population of about 39 million. The country is still adjusting itself to a liberal market system after abandoning the communist market system.

This was one of the pre-qualifications for joining the European Union. The country was included into the European Union in the year 2004. From the beginning of the 20th century, the economy of Poland has been growing steadily. Before the emergence of the global financial crisis, the GDP of Poland grew at an average of 5 percent each year (Kozun-Cieslak 87).

Poland is a transitional economy, a factor that makes it susceptible to financial turmoil in the European Union. However, the economy of Poland has not been severely affected by the economic crisis in the Euro zone. The country still faces many economic challenges most of which emanate from the lack of efficient political structures.

Most of the economic problems that the economy has are structural in nature (Kozun-Cieslak 88). The paper discusses the political economy of Poland in the context of the European Union; it also looks into significant economic policies that are pursued by the country in relation to its membership in the EU.

Policy concerning the economic position of Poland in the Eurozone

With one of the strongest economies in Central Europe, the country is becoming a leading player in the policies of the European Union. The economy of Poland is in the spotlight on the world arena today. It has managed to withstand financial pressures from the financial crisis in Europe.

The Polish economy has not shown signs of recession in the last two years, a period in which the crisis was at its peak (Rosenberg 475). The main problem of Poland, which affects its economic influence in the larger European Union economy, is the lack of voting power. This is one of the policy areas that is being pursued by the country. This issue puts the country at loggerheads with the European Union (Gebert, para. 3).

Poland has come out as one of the leading economies in the entire Euro zone amidst the problematic business climate witnessed in the last four years. Poland continues to push for a strong position at the high table of the union. Its efforts are hampered by many factors among them the influence of the dominant economies in the region. The county aspires to join the Euro zone remaining an observer in the affairs of the Euro zone.

The economic growth prospect of Poland has continued to exceed projections. This denotes the strength of the country amongst the countries that form the economic block. However, the country still experiences isolation in regards to investments. Research shows that foreign investors still shun from investing in the Polish economy. Investors from other European states, especially those in Western Europe, still associate the economy of Poland with other economies of Central Europe.

The economy of Poland is bound to be affected by economic activities in the European Union as the country trades with other European states. Many economists argue that Poland should be given a room to advance ideas and voice opinions in the Euro zone. The economy of Poland is gaining strong foundations in Europe and any negative forces of the economy are bound to cause negative impacts on other trading partners in Europe (Gebert, para. 4-5).

The pursuance of foreign policy by Poland in the EU

As an adapting member of the European Union, much of the foreign policy of Poland is centered around the regional economic relations. In order to strengthen its relations with the main economic power of the European Union, the country is working on a structure of detaching from the affairs of Central Europe countries. However, this is not a straightforward issue as the affairs of these countries have a direct impact on its economy.

The country has economic issues to solve as it is concerned with the securing of its borders and the settlement of frictions with its neighboring states. Its neighborhood with Eastern Europe forms the present policy agenda. Poland remains a key player in the political and economic development of the region. As it seeks to enhance market liberalism, the country is putting on pace in policy areas in the union.

The country continues to pursue foreign policy areas that focus on economic enhancement with other countries of the European Union. Most of the policy discussions center on the development of balance fiscal policies which have to favor all the members of the European Union (Gebert, para. 6).

Impacts of Poland Membership in the EU

The main priorities of the policy of Poland in the European Union have majored on building relations with members of the union. The country seeks to become an influential member of the union for it to enlarge its economic size and potential in the region (President PL Website, para. 6). By virtue of being a member of the European Union, Poland has derived benefits and losses. Most of the positive factors are derived from the economic benefits that are accrued from integration.

The country is expected to keep benefiting from the expanded market through trading with other countries in the union (Organization for Economic Cooperation and Development 89). Increased trade relations with other countries are resulting in the improvement of the social conditions of the population of the country. The country is also improving in the area of political security.

This is an essential component of economic and social development (Skotnicka-Illasiewicz 9). Poland is reaping the benefits of an open and liberalized market economy. It is worth to mention that the decision of the country to join the European Union has brought about friction between the country and its neighbors. The frictions are ongoing and have affected the participation of the country in trade (Szczerbia 1939).

Country specific features and investment in Poland

Poland presents a favorable climate for investment in the European Union. Poland is a fast growing economy. The GDP of the country has been expanding at an accelerating pace (Kozun-Cieslak 86). When this is translated into economic terms, it means that the volume of trade is widening meaning the industry is also widening.

The country has a relatively large population of approximately 39 million people presenting a potential market for the country. The majority of the Polish are well educated and make quality employees being an opportunity for foreign investors who can hire employees hence cutting on the cost of expatriating employees (Wach, para.2).

The act of joining the European Union adds to the economic potential of the country. A substantial number of opportunities are presented. Among these opportunities is the expansion of the market for the industry of the country. Investors in the country are being guaranteed an expansive market for products and services (Miszczynski 6).

Since it joined the European Union, the country has kept up the pace of economic expansion through infrastructure development. Its membership in the European Union also presents economic disadvantages to the country. The economic environment of the country has become competitive due to the opening of the country to goods and services from other European economies. External investors have to be aware of the growing competitiveness of the economy (Kozun-Cieslak 86).

The country still suffers from institutional weaknesses, a factor that exposes it to economic setbacks. The foundation of economic freedom has not gained strong roots in the country. It is caused by the prevalence of unethical standards like corruption and a judiciary system that is not independent.

The judiciary of the country is often subjected to political interference and manipulation. This climate is threatening and has to be considered by potential investors. The government of the country has been active in eliminating these vices. However, the pace at which changes are taking place is still low (Poland: Economic Freedom Score 1).

Conclusion

Poland presents one of the upcoming economies in the European Union. The country has provided an example of strong economy in the recent times having managed to withstand the recent financial crisis in Europe. The country continues to pursue policies most of which are aimed at improving its position in the European Union. The economic indicators also portray the country as an economy that is presenting many opportunities for investment in Europe.

Works Cited

Gebert, K. Reinventing Europe: Poland and the euro crisis. Web.

Kozun-Cieslak, G. Foreign Direct Investments in Poland  Report for the End of 2004 and New Facts. Folia Oeconomica Stetinensia. 7.1 (2008): 63-86. Print.

Miszczynski, M. Knowledge-economy as a utopia. The case of Poland. Studia Universitatis Babes-Bolya. Studia Europaea. 57. 2 (2012): 5-28. Print.

Organization for Economic Co-operation and Development. Oecd Economic Surveys: Poland  Volume 2006 Issue 11. Paris: Organization for Economic Co-operation and Development, 2006. Print.

Poland: Economic Freedom Score. PDF file. 2012. Web.

President PL Website. EU membership. 2012. Web.

Rosenberg, Jerry. The Concise Encyclopedia of the Great Recession 2007-2012. Lanham Md: Scarecrow Press. 2012. Print.

Skotnicka-Illasiewicz, E. 5 Years of Polands Membership of the European Union in the Social Context. PDF file. 2012. Web.

Szczerbiak, A. Poland Within the European Union: New Awkward Partner or New Heart of Europe? New York: Routledge Publishing. 2011. Print.

Wach, K. Doing Business in Poland (Socio-Cultural Aspects). PDF file. 2012. Web.

Rationale for creation of European Union

The European Union was established in 1957 shortly after the Second World War. It was formed with an objective of bringing together the European countries since the European leaders did not want to suffer a war such as the World War II ever again.

The past decade has been an extraordinary period of success in numerous ways. The European Union has accepted twelve new states; this happened as a result of the amendment of the structures of leaderships and procedures of voting provided by the Lisbon treaty which eased the decision making process between the member states.

The original number of members who began the European Union was only six. Nowadays, the union has expanded to 27 members. The new Europes common currency was widely accepted and relatively stable in its initial decade. However, 2010 came in with numerous challenges.

Financial contagion concerns and accumulated public debt in Greece, Italy, Spain and Portugal created a great debate over how better the fiscal policy of member states should be coordinated. Normally, proposals opposing national budgetary policy infringement against the government of French and favoring unified enforcement standards under the growth and stability pact flooded the government of British.

Simultaneously, critics were afraid that the programs of fiscal austerity in Germany and Britain would bring about the policies of beggar-thy-neighbor. By this time, the European Union had plans to merge with other member countries to form an economic union.

These particular steps lead to various economic concerns. financial crisis and unfathomable political concerns were behind these apprehensions. Some argued that this step of amalgamation would lead to the rejection of the European Union with basis of being un-democratic. The others stated that the European Union was enlarging far beyond its formal capacity to establish the economic union.

The defense secretary, Michael Portillo, mentioned that he was not ready to see the defense policy being controlled by Brussels. In actual fact, the same reasons that initially led to the formation of the European Union were the same ones that spearheaded the formation of the economic union.

Current solution to Greece Financial Crisis

The Greece crisis arose shortly after the European Union had resolved its constitution crisis. The problems appeared when the crisis in U.S. sub-prime mortgage triggered a cascade of financial disruptions. This occurrence rose the question of the endurance and strength of Europe. By the year 2010, everyone watched Greece, the 2009 deficit of Greece increased from 10% to almost 14% of GDP.

The Greek sovereign debt was lowered by the standards and poors to a (BB+) junk bond status, the two year yields on Greek sovereign debt hit the mark of 10%, rendering the Greek to approach the IMF to receive a financial bailout.

Currently, the leaders of the European Union have summoned a consensus to use both the international monetary fund and funds from Europe to assist unstable financial situation in Greece. The major crisis in Greece was brought up by numerous years of spending without restrain, failure to establish financial reforms and unrealistic contemptible lending.

These mistakes exposed Greece in a bad way during the global economic downturn. Greece has a national debt of $ 413.6 billion which is far much bigger than the countrys state budget. Today, Greece is viewed by foreign investors as a financial black hole.

These debts have led to the scrapping of pre-election promises and induced unrealistic and harsh spending cuts. Currently, Greece is in a major euro zone breach on deficit management rules; this is actually a bad show for the euro.

The Greek government has embarked on cutting on spending and is already implementing austerity measures with an objective of slashing the deficit by 10 billion Euros which is equivalent to $13.7 billion.

Slovakias role in the crisis

The major setback for the advancement is Slovakia, this is the last country in the block to rectify the consensus and assist in making the deal to bailout Greece from the financial quagmire. Today, the greatest concern is whether the politicians in Slovakia will vote positively on the agreement to stabilize the European fund in helping Greece.

Future of the EURO, threats and Mistakes made by EU

The crisis in Greece has raised many questions concerning the future of the euro. According to case study, it is clear that the EU and the euro zone are having a real trouble. The existing economic structures of nowadays are definitely flawed and will not withstand the forces and pressure they are heading to anyway. For Greece, several things are to be put in place to improve the current situation.

First, the banking systems need to be fixed: many banks in Europe are highly undercapitalized, fatally over-leveraged, and exposed to numerous debts. The most important and vital steps that the government should take to rescue the euro is to carry out careful stress test accompanied by capital injections.

In simple terms, the European government must take a bold step of putting the risk back to its own place. It means that the European economy should be given back to the bondholders. The Greece crisis is a major blow to the European Union, but the euro will be in a position to withstand the tide if there are well-calculated strategies.

Ireland is an independent country with a well-developed economy and many advantages in social, environmental, and legal areas. Ireland has a parliamentary democratic system of government, with the highest elected offices of President and Prime Minister, who have more executive power than the President, as the latter is more of a symbolic figure. Ever since the UK decided to leave the EU, Ireland has been at the center of Brexit negotiations. According to the latest decision, the ports of Northern Ireland will carry out border functions for the maritime border between the EU and the UK.

It is noteworthy that the construction of the necessary facilities has already begun in Northern Ireland, which will be commissioned by 2023 (Macauley, 2021). This decision saves Ireland from controlling the border between the UK and the EU, which might otherwise be between Ireland and Northern Ireland. Ireland retains its status as an EU member state; the country has a stable political environment and does not have significant problems with corruption; also, Ireland is not involved in military conflicts.

One of Irelands most critical sources of economic stability is its EU membership and participation in the single European market and the Eurozone. Ireland also has the advantage of a highly-skilled workforce and tax conditions that are conducive to business. The Great Recession was in many ways related to the Eurozone crisis, which affected the economies of most member countries (About the EU, 2021). The onset of the Great Recession in 2008-2009 led to many social problems, such as inequality in income distribution, which persists today (Savage et al., 2019). However, Ireland has been widely recognized as one of the countries with the most successful anti-crisis policies. Attractive corporate tax policies have led to giant tech companies such as Google, Facebook, Microsoft, Amazon, and their European subsidiaries in Ireland.

Social factors include the many benefits of a countrys cultural heritage and the character of its inhabitants. Irish people are considered open, cheerful, kind, and patriotic. The two main spoken languages are Irish and English, and the country is home to about 5 million people. Life expectancy is high; the cost of living is lower than in other European countries, except for Dublin (Hutton, 2020). Ireland faces many social challenges despite falling into the rich-country category; the most critical problems are poverty and depression.

In terms of technological factors, Ireland has many advantages. Dublin is the hub of technology operations, home to the European offices of companies such as Intercom, Intel, Airbnb, Facebook, HP, Dell, Acer, PayPal, Payoneer, and Apple. The country has a large percentage of highly skilled IT workers, and Ireland attracts talent worldwide, but the demand for technology talent still exceeds the supply. Interestingly, the EU, while considered a global science hub, also suffers from a shortage of IT talent, as most of the leading tech giants are headquartered in the US and China, a situation that is slowing the AI revolution.

The Irish legal system is business-friendly and offers favorable tax rates. Also, the legislation well protects the labor rights of employees, including minimum wages, maximum working hours, annual leave, and public holidays. Notably, in 2014, as part of adopting the first budget after financial assistance, Ireland introduced tax cuts and closed the loophole that allowed foreign multinationals to pay very low taxes in other countries (Ireland profile  timeline, 2020). In August 2016, the European Commission obliged Ireland to recover from Apple tax arrears of up to 13 billion euros after a legal recognition that Apple had been granted unlawful benefits equal to illegal government aid (Ireland profile  timeline, 2020). Notably, Ireland has environmental problems, including air and water pollution, noise, greenhouse gas emissions, and biodiversity loss.

References

About the EU. (2021). Web.

Hutton, B. (2020). Government lambasted for approach to big social problems. Web.

Ireland profile  timeline. (2020). Web.

Macauley, C. (2021). Brexit: Irish Sea border posts delayed by two years. BBC News. Web.

Savage, M., Callan, T., Nolan, B., & Colgan, B. (2019). The Great Recession, austerity, and inequality: lessons from Ireland. Review of Income and Wealth, 65(2), 312-336.

European Court of justice decisions on movement of companies within the European Union appears to be inclined towards the incorporation theory over the real seat doctrine. Nonetheless, failure to acknowledge this formally and controversies over particular case laws may still leave the matter open to debate.

In essence, the EU fosters creation of a common market through the movement of people, goods and companies. However, companies are particularly difficult to deal with because of their inherent characteristics. First, they can be prevalent in several member states at a time. Furthermore, some may be incorporated in one country but be administered in another (McEleavy, 2003, 525). Questions on legal recognition and choice of laws to apply from member states come into play. Additionally some companies may wish to move to different member states and similar decisions must be made on laws to be applied (Corburn & Chertok, 2005, 870).

The major themes arising out of ECJ case laws can either fall within the real seat doctrine or the incorporation theory. In the latter, a company has the right to select the law that will be applied to its respective case because it is a legal entity. The country where it was incorporated will be the one that will dictate the laws to be applied. Conversely, the real seat theory holds that companies should be governed only by the laws of the countries where shareholders, directors, promoters and office holders are found; in other words, where their central administration is located (Elbert, 2003, p 51).

Case laws indicate that there appears to be a controversy between Article 48 and 49 of the EC Treaty and the real seat doctrine. In the former article, it is stated that companies will be subjected to the same treatment as real persons if they have been registered and administered in that member state. This means that even if a business was formed and registered in country A but it grows and thrives in country B more than in A, country B will not recognise it as a legal entity unless it is dissolved and reincorporated in country B. These kinds of themes favour countries like the UK which adhere to the incorporation principle and may actually complicate free movement of firms (Gerner-Beuerle & Schilig, 2009, K22).

Examination of the way the ECJ has/ has not upheld justifications for restrictions on freedom of establishment of companies between member states

In the European Commission versus France case, the ECJ found that France was discriminating against member states by considering the seats of respective corporations before deciding on the nature of treatment to be accorded. This clearly impedes movement of companies within the EU. With regard to the freedom of establishment the European Court decided in the Daily mail case that the latter firm (which was established in the UK) could be free to move to another member state even though the UK argued that the Daily mail was doing so in order to circumvent tax laws (Hansen, 2009, 105). However, the court asserted that it needed to look for ways of evading these rules.

On March 9^th 1999, the Court presided over the Centros Ltd v Erhvervs [1999] 1 1459 case where the Centros- a Danish owned company was incorporated in the United Kingdom and then failed to conduct business there instead choosing to do so in Denmark by establishing a branch. The latter country denied it a right of establishment asserting that its intention was to create a principle office not a branch and this would cause it to evade capital requirements. The Court once again supported the corporation stating that denying it a right to establish itself in Denmark was restrictive and discriminatory (Xanthaki, 2001, 64).

On November 5^th 2002, the ECJ presided over Uberseering v Nordic Construction [2002] No. ECR 1-99919. Here a Netherlands incorporated firm called Uberseering contracted business to Nordic which is German based. It sued the latter for poor implementation of the contract and was denied hearing based on its lack of recognition as a legal entity (Gildea, 2004, 107). The ECJ held that this was in contravention to the freedom of establishment although it mostly dealt with legal standings and not company operations (European Court of Justice, 2002, 1-09919). The ruling indicates that the real seat theory may not hold water anymore and that harmonisation of country laws with EU treaties needs to be done so as to eliminate this clash.

References

European Court of Justice (2002). Judgement of the court in Uberseering BV v Nordic Construction Company. European Court Reports, 1-09919.

Gerner-Beuerle, C. & Schilig, M. (2009). The mysteries of freedom of establishment after Cartesio. SSRN working paper, K22.

McEleavy, P. (2003). Current developments in international law, ICLQ, 52, 521-534.

Hansen, S. (2009). The free movement of companies. Stockholm: Stockholm institute of Scandinavian law.

Xanthaki, H. (2001). Centros- is this really the end for the theory of siege reel. Company law journal, 22(1), 2-8.

Elbert, S. (2003). EU-company law and the freedom of establishment. International company & commercial law review, 14(5), 51.

Corburn, T. & Chertok, S. (2005). Jurisdictional competition in the EC. Express papers, 870.

Gildea, A. (2004). Uberseering  a European company passport. Brooklyn International law journal, 5(23), 107.

The United States is the European Unions (E.U.s) greatest economic ally, so they do not have a discrete unrestricted trade transaction. The Transatlantic Trade and Investment Partnership (TTIP) discussions commenced in 2013 and were halted three years later, lacking a result. After being reckoned superseded, they were officially disbanded in 2019. Regardless of this, due to World Trade Organization (WTO) limitations, transatlantic trade continues to have one of the least overall levies in the globe (about 3%) (Demertzis and Fredriksson). Exporting the new blood machine from the States to nations in the E.U. would be advantageous as manufacturing costs are slashed by half, and since the market in the E.U. is readily available, all the company would need to pay for are the tariffs for exportation.

Licensing a European firm to work conjointly with the U.S. business would mean that both parties must sign a memorandum of understanding (MOU). The agreement is to help easily facilitate the development of the revolutionary blood machine, which in the long run means profits are shared between them as structured. Every company means to maximize their profits, and by licensing foreign firms, the profits are split but saving on the tariffs on the bright side if exportation from the U.S. was to take place.

Setting up a wholly-owned subsidiary in Europe calls for setting up shop. It would be the best course of action in that the company gets to expand the business. Tapping on both the home market and E.U. market. Setting up a shop calls for heavy investing, including purchasing land or buildings where the manufacturing will occur (Papanastassiou et al.). Since every business is oriented towards a long-term goal, this alternative is the most suitable. The company gets to own the rights of manufacturing and selling the product all in one without sharing their secrets. And with a subsidiary creates more potential in tapping more clients as the business expands.

References

Demertzis, Maria, and Gustav Fredriksson. The E.U. Response to U.S. Trade Tariffs. Intereconomics, vol. 53, no. 5, 2018, pp. 260268.

Papanastassiou, Marina, et al. Changing Perspectives on the Internationalization of R&D and Innovation by Multinational Enterprises: A Review of the Literature. Journal of International Business Studies, vol. 51, no. 4, 2019, pp. 623664.

Introduction

The coexistence of the countries in the world and in the European community has always been a complicated matter involving political, economic, social, and cultural aspects. The post-World War II global community felt the eternal need of security and mutual protection against any military or economic threat. Thus, the creation of the European Union might be considered as a step towards solving the issues of structuring the cooperation between the European countries and providing their mutual security in all aspects with the special emphasis on the economic sphere. The role of Ireland in the European Union, as well as the impact of the EU on Ireland, has also long been the subject of scholarly and publicist attention, and this paper aims at finding out the major results of the interaction between the European Union and Ireland.

Ireland in the European Economic Community and European Union

Background Information

To begin with, it is necessary to state the European Union is a relatively young organization that was founded in 1993. Its predecessor was the European Economic Community that existed from its establishment in 1958 till the transformation to the currently developing European Union (Bomberg et al., 2008, p. 4). The main goal that was pursued by European Economic Community establishment was the development of cooperation and economic integration between European countries (Bomberg et al., 2008, p. 4). The emergence of the European Union in 1993 meant the desire of the European countries to integrate with each other not only in the economic but also in the political and social aspects of life. Currently, the European Union includes 27 countries that are united by joint goals and mutual interests and regulated by the single body of power referred to as the European Council (Bomberg et al., 2008, p. 7).

The history of Irelands attempts to join the European Economic Community, as it was called in the 1960s, is rather long and includes about 12 years of struggle, political negotiations, and referendum among the Irish people (Government of Ireland, 2009). It was July 1961 when Ireland first applied for membership in the European Economic Community but for negotiations to start it took over 2 years, and already in 1967 Ireland, along with Great Britain and Denmark, had to take the second joining attempt. Only the resignation of De Gaulle and the Summit of the European Council that took place in Hague in 1969 outlined the real perspectives for Ireland to become the part of the integrated Europe (Government of Ireland, 2009). After 3 years of negotiations, Ireland and the European Economic Community signed official joining agreement, and the referendum that took place in Ireland in May 1972 stated the Irish membership in the community as a legislatively supported fact (Government of Ireland, 2009).

Reasons for Joining the European Union

The major reasons that made the Irish government in the early 1960s seek support from the European Economic Community included the basic economic and social issues. According to the data provided by the Government of Ireland (2009), in the decade that preceded the application for the membership in the then formed European Economic Community Ireland experienced the hardest economic recession for the last 50 years and was almost the only country in Europe who population declined significantly because of the unemployment and outflow of people seeking for the better working and living conditions abroad (Government of Ireland, 2009; News Letter, 2009).

At the same time, the economy of Ireland on the merge of the 1950s and 1960s was almost exclusively agricultural (Government of Ireland, 2009). The country had no industrial facilities and no actual potential for agricultural modernization. The reasons for this included the small scope of the countrys economy and its export orientation. The Government of Ireland (2009) reports that in 1959 over 75% of the countrys export were directed to the United Kingdom and such a unidirectional economic policy was becoming more and more dangerous as in case of UKs refusal to buy the Ireland-exported goods, the countrys economy was at risk of collapse (Government of Ireland, 2009).

Further on, the Irish Government of 1960s understood that the Great Britain was about to apply for membership in European Economic Community, and given such conditions the Irish economy, as the one greatly depending upon the UK resources, would have been in a disadvantaged position. Joining the European Community Great Britain would have gained access to the united European market with much wider opportunities for goods importing than from Ireland exclusively (Government of Ireland, 2009). Accordingly, to avoid the loss of the major export market and to gain the opportunity to expand it to other European countries, Ireland applied for the European Economic Community membership (Europa, 2001).

Drawing from the above discussion, the major reasons for Ireland to apply for the position in the European Economic Community included social, economic, and strategic interests. First, joining the EU Ireland aimed at gaining economic and social protection, reducing its unemployment rates, and stopping the population outflow from the country. Second, Ireland saw the European Economic Community membership as the opportunity to modernize the economy, update the agricultural sector, and receive a powerful impact towards industrial development. Finally, Ireland aimed at gaining new markets for its export-oriented economy that the European Economic Community membership was promising.

Major Interests in the European Union

The major interests that Ireland pursued while applying and joining the European Economic Community included economic, political, social, environmental, and health care aspects of the countrys development (Government of Ireland, 2009). This fact is simply explained by the data presented by Bomberg et al. (2008), as according to these authors the modern European Union has significant impact on the development of each of its member-countries in legislative, political, financial, economic, and health care spheres (p. 7).

For example, Bomberg et al. (2008) and Coulter (2009) argue that over a half of the legislative documents and acts are either connected or derived from the European Union norms. In respect of economy and finance, the European Union is viewed by Bomberg et al. (2008) as one of the worlds largest economies with its wealth amounting to one third of the total worlds wealth (pp. 7  8). Further on, the joint market that every member of the European Union has the access to amounts for over 500 million consumers and exceeds even the US-operated market. Accordingly, the European Union carries out about 20% of the total trading transactions carried out globally (Bomberg et al., 2008, p. 7). Drawing from this, the major interests pursued by Ireland in joining the EU included becoming the part of this powerful economic, political, and financial institution to provide its economy with powerful developmental impact.

In more detail, one of the prominent interests for Ireland in the European Union is to gain economic and financial protection, especially in the conditions of the current global recession. The Government of Ireland (2009) reports that the EU membership currently protects the country from the severe credit crunch and shields against the currency inflation processes by providing ¬5 billion of additional funding to every EU member-country (The Government of Ireland, 2009).

Further on, Ireland is interested in reducing its unemployment rates and the EU membership helps in achieving this goal by providing Ireland with greater employment opportunities abroad as well as with wider scope for international companies to work in Ireland (The Government of Ireland, 2009). Finally, the help of the European Union in solving the Northern Ireland dispute and bringing peace to the region is also one of the basic interests (Godson, 2004). Therefore, being a member of the European Union Ireland has two categories of interests, i. e. domestic and international ones, and each of the groups includes economic, social, and political aspects.

Irelands Position on Main European Union Issues

Being the committed member of the European Union, Ireland supports and promotes basic innovations that the EU brings to the relations between its country-members. As well, it is natural that there cannot be a complete agreement on all points, and Ireland also is involved in the controversy about EU-related issues. The points of common interest for the European Union and Ireland include the Common Agriculture Policy and the introduction and further development of Euro, the single currency for the majority of the EU members (Reuters, 2009; The Government of Ireland, 2009). The point of disagreement include the Constitution of the European Union (News Letter, 2009; The Government of Ireland, 2009).

In more detail, the Common Agriculture Policy was viewed in Ireland in 2003, the time when it was introduced, as the positive phenomenon for the countrys agriculture bringing the country over ¬12 billion for development in the period between 2007 and 2013. The Common Agriculture Policy was designed as the system of equal funding for agriculture in all EU countries. It is understandable that less developed agricultural countries, including Ireland, supported the idea, while the highly developed countries perceived it as the cutting of the agricultural funding for them. Drawing from this, it is natural that Ireland supported the Common Agriculture Policy.

As well, the country supported the introduction of the unified European currency, Euro, in the majority of the EU member-countries (Government of Ireland, 2009). It is understandable that Ireland work on this idea because the value of the Irish currency, the Irish pound, was not the highest among the European currencies. Euro, on the other hand, allowed Ireland to operate with a stable currency (Government of Ireland, 2009).

The EU Constitution is one of the points of disagreement between Ireland and the EU, as far as in Ireland adoption of the Constitution presupposes the public referendum and according to the Government of Ireland (2009) public attitudes towards this issue are predominantly negative. Therefore, the process of adoption of the new European Constitution is slowed down because of the Irish position in the issue.

European Union Impact on Ireland

Needless to say, membership in the European Union has considerable meaning for Ireland, and the above discussion reveals reasons for this. However, this membership also has impact on the country, and this impact is not always positive as the recent newspaper reports reveal. Thus, the obviously positive effects that the EU-membership currently has on Ireland include the help of the European community in settling the Northern Ireland issues (Godson, 2004; Government of Ireland, 2009) and the officially approved decision to prolong the term during which Ireland is to reduce its budgets deficit to 3% (Reuters, 2009). The negative impacts of the EU-related policies on Ireland include the recently observed fall of prices in Ireland among other EU countries (The Associated Press, 2009) and the potential for another unemployment wave to cover Ireland in case if new agricultural policies are enforced in 2010 (News Letter, 2009).

In more detail, membership in the European Union allowed Ireland to settle the Northern Ireland conflict (Government of Ireland, 2009). The prominent role in this process was played by the President of the European Commission Jose Manuel Barroso and the peace programs that the EU implemented in both Ireland and Northern Ireland. Barroso was the first international leader to personally attend and participate in negotiations that resulted in 1998 Good Friday peace treaty. The PEACE Programs and the EU INTERRAG IVA programs allowed both Ireland and Northern Ireland to restore mutual communication and provided ¬300 million to ¬1.65 billion on the health care and restoration needs of both countries (Government of Ireland, 2009). As well, the EU has recently adopted the decision to allow Ireland to proceed in reducing its budget deficit till the year 2014 (Reuters, 2009).

The above are positive impacts of the EU membership for Ireland, but there are also negative impacts as well. For example, The Associated Press (2009) reports the 0.1% prices decrease observed in Ireland among the bulk of the EU member-states. Specialists call this phenomenon the lasting effects of the economic recession and see its danger for the Irish economy arguing that without too close ties with the EU institutions Ireland might have recovered these effects faster. As well, the 2010-planned new EU agricultural policies, especially concerning the poultry sector, can cause unemployment in the country as such policies will make the poultry industry a seasonal job, and the workers will be unemployed during the rest of time (News Letter, 2009). Thus, it is obvious that the European Union membership has both positive and negative effects upon the economy, political, and social life of Ireland but the positive effects currently outweigh the negative ones making Ireland one of the most committed EU members.

Conclusions

Thus, all the above presented discussion of the interrelations between Ireland and the European Union reveals the fact that applying for EU membership Ireland pursued first of all its own financial, economic, and political interests, but was also ready to support reasonable European Union initiatives. The major interests that Ireland has as a member of the European Union include trade development, protection of the domestic economy, establishment of international trade ties, reduction of unemployment, and overall well being growth. Pursuing these goals and understanding the EU values were the main reasons for Ireland to join the community and currently drive Ireland in its support of the European Union policies.

Works Cited

Bomberg, Elizabeth, John Peterson and Alexander Stubb. The European Union: How does it work? Oxford University Press, USA; 2 edition, 2008. Print.

Coulter, Carol. Death Penalty Remarks Criticised. The Irish Times, 2009. Web.

Europa. EU Ready to Walk the Farm Liberalisation Walk. Belfast, 2001. Web.

Godson, Dean. Lessons from Northern Ireland for Arab-Israeli Conflict. JCPA, 2004. Web.

Government of Ireland. Information of the Irish State. EU Matters, 2009. Web.

News Letter. EU rules put poultry jobs on the line. Belfast Newsletter, 2009. Web.

Reuters. EU Mulls Extending Irish Deficit Cut Deadline. The New York Times, 2009. Web.

The Associated Press. A Look at Economic Developments around the Globe. The New York Times, 2009. Web.

Introduction

Moldova has made significant progress in the implementation of democratic reforms in its society. However, democracy has not prevailed over the previous communist ideals established in the society. Although politically independent from the Soviet Union, Moldova has consistently been dependent on Russia making it difficult to shift politically from communism to liberalism¹. The European Union is at the forefront in assisting Moldova achieve democratic reforms in its society especially through the EU policy instruments. Apart from Russia and Romania, Moldova has become a direct neighbor to the European Union in view of the 2007 enlargement into Eastern Europe.

Moldova expressed its interest for membership in the European Union and was granted. Moldovas Accession into the European Union has already been granted by the EU leadership but the status quo still remains taking into account the Transnistrian conflict. Consequently, there exists a clash between the European Neighborhood policy with reference to the eastern enlargement and the EU-Russia state of affairs. Admission of Moldova into the European Union brings to the fore the political stalemate surrounding the existence of a separatist Transnistrian Republic within Moldovas territory. The characteristic ideological differences between the European Union and Russia further complicate interventions to resolve the Transnistrian conflict. This paper argues in favor of the EU soft power characteristic in its policies and its consequences to Moldovas case.

In essence, the EU through its neighborhood policy seeks to promote security and conflict resolution within the region. The latest developments in Moldovas case illustrate the level of efficiency and effectiveness of the conditionality approach in the European Neighborhood Policy. The paper shall explore policy strategies extended towards Moldova by the European Union. Economic and security consideration are particularly important in strengthening the Common Market, fighting crime and organization of visa regimes within the European Union². In this paper, the extent to which the EU has been effective in promoting border security, economic development and visa facilitation with respect to Moldova shall be investigated.

Principles of conditionality

EU member states are encouraged to adopt community policies and objectives into their national constitutions. It is predominantly a policy of conditionality since the EU extends incentives to specific governments in order to promote their compliance to its policies. Rules of the European Union are not imposed upon member states but the rationale behind the conditionality principle lies in facilitating the process of socializing the states towards entrenching its policies at national level. This entails transfer of EU legislations into national constitutions as well as transforming governance institutions based on EU rules in addition to streamlining political institutions in accordance with EU standards.

The European Neighborhood policy is the political expression of the EU in ensuring that political stability is sustained within European Union in view of the eastward enlargement. The ENP is therefore the ultimate foreign policy of the European Union which seeks to promote good governance through democratization of political systems among member states. The ENP is also a tool for increased trade and investment between the member states by balancing the economies of scale for the mutual benefit of the participating countries. The ENP also seeks to tackle security concerns such as illegal immigration, ethnic conflicts and international crimes such as terrorism³. European integration is the heart of the community policies by the European Union. The EU is interested in post soviet conflicts occasioned by separatist regimes from the former Soviet Union. The European Union therefore utilizes its external foreign policy for conflict resolution in Moldova and other separatist regimes towards greater involvement.

The Transnistrian conflict

Transnistrian Republic is a separatist regime from the state of Moldova, a current member of the European Union. As such, the European Union through its conflict resolution dimension has extensively been involved in settlement efforts between the Republic of Moldova and Transnistrian people. Moldova, being a member of the European Union, has consistently requested the EU to intervene as an alternative to the Russian peace keeping format. This is guided by the tensions that exist between the Transnistrian government and Moldova due to the involvement of the former in criminal activities such as smuggling.

Smuggling exists on the Transnistrian region of the Moldova-Ukraine border which has called for the intervention of the European Union in support of the democratic Republic of Moldova. This is informed by the increasing orientation of the Moldovan government towards the European Union instead of the Russian socialist ideals⁴. The European Union has positively responded to the dispute through the launch of the EUBAM (EU Border Assistance Mission to Moldova and Ukraine). The EUBAM consists of 120 EU border and customs experts who are mandated by the EU to monitor the border between Moldova and Ukraine particularly the region under the control of Transnistrian secessionist government.

The successful implementation of the EUBAM is partly because the post-orange administration in Ukraine was much more responsive to the European Union agenda in Moldova than the previous Kuchma-led government. The deployment of the EUBAM significantly reduced smuggling activities around Transnistrian. In addition, the EU in its resolve to undermine the secessionist leadership in Transnistria introduced a travel advisory against seventeen Transnistrian political luminaries. Consequently, beneficiaries of the smuggling and trafficking opportunities were restricted from obtaining corrupt money thereby curtailing their secessionist position in the region.

The EU also prevailed on Ukraine to refuse Transnistrian exports missing Moldovan customs stamps forcing more than 400 companies to comply with Moldovan import/export policies. Consequently, Transnistrian businessmen were rendered dependent on the Moldovan government and the EU by extension⁵. The long term benefit of the EU assertiveness in resolving the Transnistrian conflict is the reintegration of the lucrative Transnistrian businesses into the mainstream Moldovan economy. The EU has also attracted Moldovas entry into the European Union through visa facilitation which improved the access of the Moldovan citizens and inhabitants of Transnistria across the borders of European countries.

Moldovas Europeanization

A stronger relationship between the EU and Moldova replaced the outdated Partnership and Cooperation Agreement. In addition, the EU liberalized trade with Moldova under the generalized system of preferences plus. Moldova also benefited from the independent trade preferences advanced by the EU in order to establish its Europeanization. The accession of Moldova into the European Union also benefited Transnistrian citizens who were being integrated and assimilated into the Moldovan society once again. The combination of the visa facilitation and liberalized trade between the European Union and the privileged Moldovan-Transnistrian society was an important economic incentive towards reunification of the two societies⁶. The deployment of the EUBAM experts on the border between Moldova and Ukraine was an important step by the European Union in its mandate to conflict resolution.

However, the soft power status of the union limited its peace keeping interventions in Moldova several times due to the stronger resistance from the Russian-led faction. Member states expressed their reservations to the deployment of a unilateral EU peace keeping force in Moldova since Russia was not being actively involved in the process. A combined EU-Russian peace keeping alternative was not a viable option either. The benefits of the EU-led conflict resolution in Moldova are thus limited to the economic benefits of the integrated Moldovan-Transnistrian business society and the socialization of its people.

Businessmen from Transnistria exported their products through the expanded Moldova economy into the European Union for their mutual benefit. Economic incentives therefore synchronized the Moldovan and Transnistrian societies towards greater economic and social development. On the other hand, the EU was limited in its attempt to enforce a political peace keeping force in Moldova outside Russian influence. Member states repeatedly rejected measures by the EU institutions to impose a military peace keeping force in Moldova without the backing of the Russians.

Action PLAN and the first Progress Report for Moldova

A Partnership and Cooperation Agreement was established between the Republic of Moldova and the European Union in 1994. It was implemented in the year 1998 through a set of priorities outlined in the EU-Moldova ENP Action Plan with specific timelines. Evaluations are done on a yearly basis by both the EU and the Moldovan government. The first and second progress reports were adopted in 2006 and 2008 respectively. Both sides evaluated the process of implementing the ENP Action plans on different political and allied priorities through committees that engaged in dialogue on the underlying issues⁷. Moldova being a solid partner of the European Union achieved remarkable progress in it governance institutions and democratic systems. The progress reports reiterated the successful implementation of most of the priorities in the ENP Action plans by the Moldovan government.

Achieved priority areas include judicial reforms, cooperation with EUBAM experts on border security against smuggling, regional integration, prevention of torture and international cooperation with the EU. The EU Autonomous Trade Preferences have also been substantively achieved by Moldova through its commitment to implement the set of conditions attached to the pact. It can be noted in the progress reports that Moldova has achieved significant ground in the settlement of the Transnistrian conflict by engaging in relevant diplomatic dialogue at grassroots level with people fro both sides of the political divide. The Moldovan government has specifically extended friendship with the Transnistrian people towards a cohesive and integrated society in accordance with the principles of the European Union.

Economy-wise, the Moldovan government has effectively sustained a stable economy despite the 2007 drought, devastating effects of the summer floods and the distressing effects of the global financial crisis. On the other hand, some key priorities in the ENP Action plans notably the fundamental freedoms of the people, market regulation, fighting corruption, substance abuse and human trafficking in addition to the neglecting important infrastructural reforms in the energy and transport sector⁸. Notwithstanding, Ukraine and Moldova were single out as countries with significant progress in the areas of human rights and governance. The approach taken by the Moldovan government to spearhead conflict resolution in the volatile Transnistrian region was credible.

The Partnership and Cooperation Agreement between the EU and Moldova took four years (1994-1998) before it was ratified. This also illustrates the lukewarm position the EU occupies between the policy making and actual implementation. It took the support of the Orange revolutionary administration to effect important EU policies regarding conflict resolution in the post Soviet Union region of Russia, Ukraine, Moldova and Transnistrian republic. The EU Action plan on the Transnistrian conflict explores priorities such as stability of institutions, safeguarding civil liberties, democratic elections, independent media, and poverty alleviation in addition attracting investment, border management, fighting corruption, organized crime and human trafficking. The emphasis was put on the important aspect of political stability and national security.

The EU has limited capacity in conflict resolution. Despite of facilitating the travel ban on the ruling elite in Transnistria, withdrawal of Russian troops from the disputed region remained elusive. ENP monitoring bodies then ensure successful implementation of the migration legislation without prejudice in partner countries. They also ensure that the fight against illegal migration and human trafficking is reinforced through provision of technical assistance to partner countries. Technical assistance involves training of border guards and immigration officials on priority issues related to international migration and emerging challenges. They are equipped with statistical tools for analyzing data relevant to global trends in immigration.

Apart from technical assistance, the ENP promotes regional multidisciplinary law enforcement among partner countries in order to fight organized crime. Efficiency of this initiative is further augmented with Europol and the SECI centre based in Bucharest in combating human trafficking. Dialogues on ENP Action Plans in migration also seek to address the problem of xenophobia and its consequences to migration and integration within the EU especially in countries such as Belarus, Armenia, Azerbaijan and Georgia. At regional level, partner countries have been encouraged to treat illegal immigrants according to international standards. These standards include implementation of effective asylum and refugee protection laws which also ensure those victims of human trafficking and other vulnerable individuals are safeguarded from unlawful custody.

The ENP organized dialogue has prioritized important immigration policy with Russia. After the dissolution of the USSR, Russia has become the destination of choice for refugees and economic migrants from neighboring countries apart from holding the largest number of internally displaced persons. Russia is also being considered to be a major transit country for migrations from China, Afghanistan and South-East Asia to Western Europe. Russia is therefore a strategic country in the EU Action Plans on migration policies. Dialogue with Russia has therefore focused on the entire migration-related issues including asylum, mechanisms to fight illegal migration, human trafficking and labor migration⁹.

The ENP has therefore enhanced exchange of important information between partner countries on migration of persons with the objective of promoting stability, security and development in the EU and its neighbors. This information is useful in designing migration management policies based on assessment of important statistics from migrant-sending countries and destined neighbors. The effectiveness of the ENP guided immigration policy has been noted in the creation of proper conditions for provision of humanitarian assistance and international protection to migrants and refugees.

Migration issues have been discussed successfully with Turkey and Western Balkans under the Accession Partnership and the Stabilization and Association Agreement Action Plans. Progress of these Action Plans is evaluated through EU bodies meetings and Ministerial deliberations at national level. Key partners with the EU in its dialogue on immigration policy include IOM, UNHCR, UNDP, ILO and the International Centre for Migration Policy Development. The partnerships that are built between the EU and these bodies enhance cooperation between partner countries through the Global Approach and the differentiated Action Plans.

Border management is properly defined and supported with individual countries in the Partnership for the purpose of eliminating traditional barriers that could hamper the realization of the EU objectives. Capacity building is enhanced for the long-term goal of reducing migration of persons from less prosperous countries to developed neighbors. Security at border points is also strengthened through training of law enforcement agencies involved with border management in order to prevent illegal migrations. State officials working in border regions are also trained on migration and asylum issues in order to provide the best services to migrants in general and refugees in particular.

The rationale for the EU sponsored deliberations on immigration policy has been benchmarked on the objective of achieving sustainable development in partner countries in order to reduce frequent and unbalanced migrations. Capacity building therefore seeks strategies to migration management within the EU and its neighbors. Consultations are made between EU officials and relevant ministries and departments in partner countries towards enacting sustainable immigration policies in the world.

Conclusion

The European Union is engaged in conflict resolution in order to restore and maintain security in Europe and the rest of the world. The role of the EU with respect to Moldovas case reveals the underlying challenges and the relevance of its policies in different situations. The Transnistrian conflict further illustrates the soft power notion in describing the foreign policy of the European Union with regard to conflict resolution and border management. The thorny issue regarding EU-Russia relations has continued to limit the progress of the EU-funded conflict resolution in Moldova. The contest between communism and socialism continues to describe external EU relations in the post-Soviet Union. Remarkable progress has been realized in economic and social development courtesy of a proactive government in Moldova.

The ENP policy has therefore succeeded in abolishing internal border controls among member states. It has also been effective in establishing a common visa policy, asylum standards, legal migration protocols and the Frontex agency. Overall, the creation of the ENP immigration policy has promoted migrant and host country development. The policy further encourages fair treatment of migrants in accordance with international law and human rights. This ensures the harmonious integration of migrants and nationals from third countries into their host destinations.

Radical democratic reforms have been initiated by the Moldovan government with the support of the European Union. Significant economic development has been achieved through economic integration with the European Union and the Transnistrian people. Exporters from the disputed Transnistrian region are compelled by the EU to register their businesses in Moldova in order to shift their dependence from Russia and its socialist allies. The deployment of the EUBAM to control the Moldovan-Ukraine border by the European Union was quite effective in stopping state-funded smuggling by the Transnistrian government¹⁰. This also fought other crimes such as drug and human trafficking around the Transnistrian region. The travel ban imposed by Transnistrian political leaders by the EU is an important move against corrupt regimes.

Footnotes

1. ernobrov
   uk, M. Prospects for EU  Moldova economic relations Volume 67 of Raporty CASE, CASE  Center for Social and Economic Research, New York, 2006, pg. 118.
2. Eastwood, J. & Bolton, R. Guide to the EU institutions, Federal Trust Series Federal Trust for Education and Research. Federal Trust for Education & Research, Michigan, 2003, pg 21.
3. Europa Publications Limited. Eastern Europe, Russia and Central Asia 2008, Volume 2008 Eastern Europe, Russia and Central Asia Regional surveys of the world. Europa Publications, Michigan 2008, pg. 76.
4. Gutu, O. Moldovas Convergence with the Acquis  A Pro-Growth and Pro-Integration Strategy; Issue 238 of CEPS working documents. CEPS, London, 2006, 41 pages.
5. Aazowski, A. & Blockmans, S. The European Union and its neighbors: a legal appraisal of the EUs policies of stabilization, partnership and integration. Cambridge University Press, Cambridge 2006, pg 63.
6. Lewis, A. The EU & Moldova: on a fault-line of Europe, Volume 5 of Europes eastern borders. Federal Trust for Education and Research, California 2008, pg. 24.
7. Nitze, P. H. & Möttölä, K. Transatlantic relations and global governance. Center for Transatlantic Relations, Michigan 2006, pg 52.
8. Nygren, B. The rebuilding of Greater Russia: Putins foreign policy towards the CIS countries, volume 10 of Rout ledge contemporary Russia and Eastern Europe series. Rout ledge, London, 2007, pg 35.
9. Oudenaren, J. V. Uniting Europe: an introduction to the European Union; Europe today. Rowman & Littlefield, New York, 2005, pg 33.
10. Scott, J. W. EU enlargement, region building and shifting borders of inclusion and exclusion; Border regions series. Ash gate Publishing, Ltd, London, 2006, pg 62.

Free and fair trade between countries is a crucial issue in politics and economics. Free trade includes policies that help to reduce barriers that may serve as an impediment to international commerce. Fair trade aims to support manufacturers in developing countries by providing fair and sustainable commercial relations with developed countries. This paper will present a summary of a recent article concerning the issue and discuss its importance to the global community. A personal opinion on the problem will also be expressed.

Summary of the Article

On June 8, the trade deal between Vietnam and the EU was signed. The agreement is believed to promote Vietnams economic recovery after its recession due to the Coronavirus pandemic. Analysts expect that the positive effect on the economy will be seen this summer. Under the terms of the pact, almost 99 percent of custom duties between Vietnam and the EU are expected to be eliminated (Dezan Shira & Associates, 2020). The agreement may help boost Vietnams economy, increase its GDP, and raise exports from Vietnam to the EU in five years.

The reviewed article indicates that the trade partnership between the EU and Vietnam has been maintained for an extended period. European countries invest money in Vietnam projects, and in 2018 the sum amounted almost to US$ 1.1 billion (Dezan Shira & Associates, 2020). The most substantial investment has been seen in electricity, manufacturing, and real estate (Dezan Shira & Associates, 2020). In total, 24 EU countries make investments in Vietnam, and the Netherlands takes first place on the list.

The purpose of the agreement is to eliminate trade barriers on both sides. The increase in Vietnams export amount to the EU countries may lead to the expansion of local industries, such as the manufacturing of electronics, textiles, footwear, and agricultural products (Dezan Shira & Associates, 2020). The pact will allow increasing Vietnams exports of footwear, textile, and clothing to the EU. Electronics manufacturing is another source of income in Vietnam, and the agreement with the European Union will give an opportunity to get more profit from the industry. The pharmaceutical market plays an important role in the EU-Vietnam trade partnership. The contracts enactment will promote the growth of this sector and bring Thailand extra revenue.

The agreement will also permit to import remanufactured goods from Thailand to the EU countries. Moreover, it will abolish import and export taxes on repaired goods. Dezan Shira & Associates also state that Vietnam will see the integration of the EU market as Made in EU goods will be accepted in the country (Made in EU section, para. 1). The pacts provisions are aimed at stabilizing Vietnams financial state and ensuring fair and competitive trade conditions.

Source Evaluation

The article in question was published by Vietnam Briefing on June 8, 2020. So, its contents appear to reflect the current state of affairs and provide the reader with actual information. Furthermore, it contains relevant information on the issue of free and fair trade between countries. It examines the recently signed deal between Vietnam and the EU and describes the agreements key points. Hence, I can make a conclusion that the source is credible, reliable, and relevant and can be included in the paper.

Personal Opinion

In my opinion, this agreement will be beneficial for both Vietnam and the EU. Developing countries, such as Vietnam, need support from developed nations, and it seems that the establishment of free and fair trade conditions is one of the best ways to do it. To my mind, the creation of decent working conditions, reasonable prices, and terms of trade is crucial in building commercial relations. The pact will help to eliminate trade barriers between the EU countries and Vietnam and boost the economy of the latter.

Importance to the Global Community

It appears that the agreement becomes even more significant in the light of recent events with the COVID-19 pandemic and worldwide economic recession. For example, Adviento (2020) states that export bans on medical products should be removed, and the developing countries should be provided with enough medicaments and food. It is of paramount importance now to provide financial support to low-income nations and to establish fair and sustainable trade relations. As such, the agreement between the EU countries and Vietnam contributes to the global communitys well-being as it may influence not only the financial system of the countries in question but also improve the global state. The financial system of the developing nations is closely connected with the worldwide economy, and by creating equitable trade conditions here, we change the general situation for the better.

All in all, the reviewed article concerns the issue of free and fair trade. The signed agreement is expected to give Vietnam, which relates to developing countries, a necessary economic boost. Its provisions include the trade barriers elimination and the promotion of fair and free trade conditions. It should be noted that the pact plays an essential role in improving Vietnams economy, which has faced a recession due to the negative consequences of the Coronavirus pandemic.

References

Adviento, A. (2020). Fair trade for all crucial in times of Covid-19. IndustriALL. Web.

Dezan Shira & Associates. (2020). Vietnam-EU trade: EVFTA ratified by Vietnams National Assembly. Vietnam Briefing. Web.

Abstract

Due to the challenges it faced and the differences between the European Union and the United Kingdom, the Brexit process featured a variety of outcomes. The EU was required to show its competence on both an economic and political level to deal with crises of various kinds, but the response provided was not due to any flaws or insufficiencies. This research aims to examine how Brexit affected the British economy and the economic power of the European Union. Both sides experienced positive and negative implications from Brexit, which changed how these two economies impact global politics. Additionally, Brexit had a more significant impact on British businesses than on European ones.

Introduction

Prominent scholars have expressed their respect for the European integration project over the past few decades, describing it as a success story and a vital tenet of the regions stability and prosperity. The economys slow growth, the continued high unemployment rates in several Member States, and the development of populist political parties with Euroskeptic ideologies have all recently put substantial politically and economically influenced measures on the European Union. A pivotal moment in the relations between the United Kingdom and the European Union was the British referendum on being a member of the EU in June 2016.

The objective of this research is to explore how Brexit affected the British economy and the economic strength of the European Union. The beneficial impacts of Brexit are discussed in the second section. To determine if Brexit impacts Europes influence over the global economy and cooperation with other economic powers, section three emphasizes the disadvantages of Brexit on European economic governance. It is necessary to establish effective ties and policies for the future of global economics. This research suggests that Brexit negatively impacted the British economy more than the EU. Compared to the UK, the European Union has more benefits. The European Union has suffered a decrease in economic strength and global economic weight. As we saw from the expert research, Brexit has more negative repercussions than positive points, and the European Unions economy appears to be less damaged than the British side.

Literature Review

Numerous types of research were made on the subject of Brexit, and they present a variety of perspectives on its effects on the economy and on the rules that will guide future interactions between the two sides. The UK government rejected the Schuman Declaration to unify the coal and steel sectors. The country left the Spaak Committee, establishing the future European Economic Community, in November 1955 (Bulmer & Quaglia, 2018). Britain perceived itself as a global force, with Europe serving as essentially one of its domains of influence. Parties have historically been divided, and this has been pushed deeper by Westminsters confrontational politics. British campaign discourse on European integration frequently invokes national and parliamentary autonomy preservation (Leruth et al., 2019). Political elites have rarely had the chance to highlight the advantages of the EU; instead, the EU has often been the subject of debate.

The EUs organizational measures for managing Brexit assisted it in accomplishing its strategic goals in discussions with the UK. Top-ranking EU officials established the EUs objectives before the discussions officially began, notably ensuring the security of the domestic markets. The Member States most impacted by Brexit also immediately articulated their objectives (Guedes et al., 2019). Ireland, in particular, emphasized the difficulties a customs border with Northern Ireland would provide for the islands peace process and pushed hard to ensure that its goals became those of the entire EU (Fabbrini, 2020). To best preserve the European Unions interests against a withdrawing Member, the Eu members coordinated their statements simultaneously. According to Holobiuc (2018), studies estimate that the balance of economic and geopolitical influence shortly may substantially shift, with governments with large populations and strong economies coming out in front. It is unclear in this new environment whether Germany, France, and the United Kingdompowerful nations on the European continentwill fall within the category of significant winners. Given the interdependencies between surrounding countries, the situation is concerning for the continents sustainability.

Some scholars identify other aspects and consequences of Brexit connected with internal markets and economic functioning. According to the study by Liviu (2020), the freedoms of movement and the sectoral regulations responsible for guaranteeing the proper operation of fundamental liberties are just a few of the many policies that make up the internal market. Although the stability of the British pound has not been impacted, the sovereign debt crisis has similarly caused the British governments economic policies to change. It can be seen that no significant changes have occurred in EU trade policy after the referendum by examining how it has responded to this event. The EU has maintained its long-standing stance in favor of increasing liberalization in thought and action.

Findings of Brexit Benefits

The impacts of Brexit on countries economies depend on several factors, including the economic ties between the two sides, the scenarios considered, and the methods employed to estimate losses and profits. Brexit had positive and negative implications, but the data findings suggest that the European Union received more advantages than the United Kingdom. The main benefit is the number of UK companies that now stopped operating a business in the UK to relocate to the EU or transfer services like production there, generating employment and possibilities in nations ranging from Sweden and Greece to Romania and Greece. According to estimates, one in seven enterprises completely ceases operations. Brexits advantages to the European Unions financial industry are yet another matter. Following Brexit, the European Union lost access to the London financial market. Still, it also saw gains in the independence of financial regulation, the prominence of the Paris and Frankfurt financial markets, the homogeneity of the European financial system, and financial stability.

Additionally, the European Union might adopt changes and achieve a higher level of community integration. In comparison to other points, the financial sector has various comparative advantages. For instance, France has 30% of the EUs asset management market, compared to Germanys 16% (Topliceanu1 & orcaru, 2019). Data shows 2,500 asset managers work in Germany compared to 4,400 French workers. However, it asserts that the legal framework in France enables money to be authorized very fast. Moreover, due to Brexit, Paris attracted the most employment from London, totaling 2,800, followed by Frankfurt at roughly 1,800 and Dublin at 1,200. Considering advantages for the British, it is evident that 94% of UK companies that do not deal with the EU are allowed to create their policies by UK authorities. Additionally, it frees up a sizeable sum of money that the UK annually contributes to the Eurozone that could be used to finance facilities aimed at enhancing the UKs future economic potential and promote reindustrialization by fostering key sectors through their early, unknowable stages of development until they advance their unique competitive advantage on the global stage.

Critical Analysis of Brexit Limitations

There are more negative than positive consequences of Brexit on the British economy. Opening with Gross Domestic Product, it indicates that Brexit caused the United Kingdom to lose between £26 and £55 billion, while the European index fell in a range of £12 and £28 billion. Several international organizations and banks forecasted a decrease in the growth pace of the British economy. The UKs percentage of EU-exported and imported goods changed from 2016 to 2022, which is shown in Table 1 (UK Trade Info, n.d.):

Table 1. Trade with EU

The reduction in imports can be observed in 2021; however, the rate decreased instantly throughout the year. By 2021, the UK industry had begun to recover substantially from the coronavirus crisis, which started to decline rapidly in 2022. The British economy is adjusting to various non-tariff restrictions introduced when the Brexit transition period expired on January 1, 2021, according to studies conducted by the Institute for Economic Research.

The productivity of the UK fishing sector is expected to decrease by 30% due to this change toward a more regional economy, and employers have to make complex adaptations. The economys structure as a whole was not substantially altered. However, commercial professional services share of the economy decreased by just 0.3 percent and manufacturings by 0.1 percent.

According to detailed modeling, one of the UK economys worst-hit industries is the production of electronic systems, which is primarily dependent on international supply networks. Contrarily, since it supplies the UK market, food product manufacturing is expected to increase after Brexit.

Conclusion and Policy Recommendations

This research investigates the consequences of Brexit on the British economy and the socioeconomic power of the European Union. Brexit has beneficial and harmful implications for the two economies, changing how the UK and the EU interact with the global economy. Due to Brexit, the United Kingdom faces the possibility of going through internal instability, and there are greater chances for its economy to experience slower development than faster growth.

The Conference on the Future of Europe may be established as a potential approach to resolving the issues. The Conference, which was first proposed by French President Macron and has since received support from all EU institutions and the other Member States, has enormous potential. It might be a fresh approach to the EUs reform, addressing the structural and institutional flaws that recent and historic crises have brought to light. And it may be a ground-breaking move to reinvigorate European integrationchanneling the discussion on the future of Europe that has been going on since Brexit into actual action. On the other side, developing internal policies in the UK can help stabilize the economy through an international partnership with independent companies and organizations.

References

Bulmer, S. & Quaglia, L. (2018) The politics and economics of Brexit, Journal of European Public Policy, 25(8), 1089-1098.

Fabbrini, F. (2020). Brexit and the future of the European Union: The case for constitutional reforms. Oxford University Press.

Guedes, E. F., Ferreira, P., Dionísio, A., & Zebende, G. F. (2019). An econophysics approach to study the effect of the BREXIT referendum on European Union stock markets. Physica A: Statistical Mechanics and Its Applications, 523. 11751182.

Holobiuc, A. M. (2018). The analysis of the economic impact of Brexit on the European Union, Institute for Economic Forecasting Conference Proceedings, 180502, Institute for Economic Forecasting.

Leruth, B., Gänzle, S. & Trondal, J. (2019). Exploring differentiated disintegration in a post-Brexit European Union. Journal of Common Market Studies, 57(5). 1013-1030.

Liviu, G. (2020). The Brexit consequences on the European single market. Juridical Tribune, 10(1). 116-129.

Topliceanu1, S. C & orcaru S. L. (2019). The effects of Brexit on the European Unions economic power and implications on the British economy. AUDR, 15(6), 464-478.

UK Trade Info. (n.d.) Overseas trade. Trade Data.

Brexit implies British exit, and this term is used to name the process of separating the United Kingdom from the European Union in the context of economic and political development. Since 1973 the UK had been a member of the union before the population expressed the desire to finish it in 2016 (European Commission n. d.). The main reason for this action implies the fact that the residents believe the advantages of free trade do not outweigh the drawbacks of free migration (BBC News 2020). The consequences of this process unavoidably impact multiple spheres, including communication (European Commission n. d). Although there are no new taxes for crossing borders, there is more paperwork, which is highly likely to result in significant delays (European Commission n. d.). As a result, for instance, Tesco supermarkets faced shortages of delivery, as 26% of products were imported from European countries (Andrews, 2020). It is considered not to influence the prices of goods to a large extent, though importing and exporting administration is challenged significantly.

Question for the discussion:

1. What is the attitude of other countries to Brexit? Is it associated with losses or with profit for them?
2. What is the impact of Brexit on the EU? Are there any borders for communication?
3. What is the impact of Brexit on the US? Is there any border for communication?
4. Do all the residents of the UK support this decision?
5. Is Scotland still a member of the EU, and should it follow the decision of the UK government?
6. Does this decision affect the foreign relationships with countries, which are the EU members?
7. Do the reasons outweigh the motives of the desire to be separated? Is the field of communication significantly affected?
8. Is this decision harmful or beneficial for the UK in the long run? Will it destroy the communications, which the UK had before Brexit?
9. Is there a likelihood of joining the union again in the future?
10. Will the negative consequences of the field of communication affect the economic climate?

References

Andrews, J. (2020). Tesco boss explains what the Brexit deal means for food prices in supermarkets. Web.

BBC News. 2020. Brexit: What you need to know about the UK leaving the EU. Web.

European Commission. n. d. Consequences of Brexit. Web.