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The Economics and Policies of Integration - a Finnish Perspective (Hardcover, 1996 ed.)
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The Economics and Policies of Integration - a Finnish Perspective (Hardcover, 1996 ed.)
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European integration has come a long way since the fIrst steps in
the aftermath of the Second World War. At that time, the neutral
European countries chose to stay outside the European Economic
Community. Those countries that wanted less ambitious cooperation
formed the European Free Trade Association. Increasing trade
dependence between the two groupings was institutionalised when
they signed free-trade agreements with each other, creating thus a
wider European free-trade area in manufactures. The strong push
towards deepening integration among EC countries, manifested in the
Single European Act in 1985, and the dismantling of non-tariff
barriers to trade and factor flows in the EC by 1993, made it
necessary for EFTA countries to secure access on equal conditions
to their most important export market and thus prevent trade
diversion. The ensuing agreement on the European Economic Area
responded to these demands, but did not resolve the apparent
asymmetry in EEA decision-making. This emanated from the supremacy
ofEC legislation over EEA rules, thus making EFTA countries
passively adjust to EC norms. Consequently, Finland applied for
membership in the EC in March 1992, with effect from 1995. The
latest phase in the integration process, the Treaty on European
Union, has an aim to further deepening, e. g. the formation of the
economic and monetary union by 1999.
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