EU Institute in Japan, Kansai (EUIJ-Kansai)International Seminar on the Enlarged EU

Controversy over Membershipin the European Integration Structures

Edited by
Akira ICHIKAWA
Associate Professor, Institute for Industrial Research
Kwansei Gakuin University

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EUIJ-Kansai International Seminar on the Enlarged EU
Controversy over Membership in the European Integration Structures

Date

22nd and 24th February 2014

Venue

Tokyo-Marunouchi Campus, Kwansei Gakuin University(22nd Feb)
Institute for Industrial Research, Kwansei Gakuin University(24th Feb)

Organiser

EU Institute in Japan, Kansai (EUIJ-Kansai)

Co-hostInstitute for Industrial Research, Kwansei Gakuin University

The Report on EUIJ-Kansai International Seminar on the Enlarged EU“Controversy over Membership in the European Integration Structures”
30th April 2014
Edited by Akira ICHIKAWA
Publisher
Institute for Industrial Research, Kwansei Gakuin University
1-155 Uegahara Ichibancho, Nishinomiya, Hyogo 662-8501 Japan
Tel +81-(0)798-54-6127
Fax +81-(0)798-54-6029
E-mail: euij-kansai@kwansei.ac.jp

22About EUIJ-Kansai
The EU Institute in Japan, Kansai (EUIJ-Kansai), formed by 3 universities

of Kobe University (Co-ordinating university), Kwansei Gakuin University
and Osaka University, was established on 1 April 2005 with financial
support from the EU. The organisation operates in four-year periods; eight

years after the institute’s inception, and we are now in the third phase,
which started on 1 April 2013. Here at the EUIJ-Kansai, we promote

education and academic research on the EU, and encourage the spread of
information about the EU. Through these activities, we seek to contribute to
the strengthening of ties between Japan and the EU.

The integration of European countries at an incredible pace and the EU is

playing an increasingly important role in the world, but Japan remains
largely unaware of the EU’s significance. In the 2nd phase, between 1 April

2009 and 31 March 2013, the Institute’s organisation was expanded toinclude the Kyoto University’s Institute of Economic Research, Kansai

University as partners, which gave a tremendous boost to our education andacademic research on the EU. In the 3rd phase, Wakayama University andFaculty of Economics of Kagawa University and Nara Women’s University
have also joined as our partners.
We operate a vitally important project. Our goals for the upcoming term are:
 To be the center of academic excellence in education and research of the
EU studies
 To disseminate information on the EU
 To increase the level of EU awareness among the general public
We remain dedicated to making a genuine contribution to the world throughuseful EU-related research and, to that end, we look forward to youron-going support and cooperation.

Takayuki Yamaguchi
Former Vice-president, EU Institute in Japan, Kansai
Professor, School of Business Administration
Kwansei Gakuin University33Foreword
It is honor for me to hold the EUIJ-Kansai international seminar on theenlarged EU on 22nd and 24th February 2014. In 2004 and 2007, so-called

eastern enlargement was happened. And also, in 2013 Croatia joined the EU,
so now the European Union has 28 member states.

The EU has, however, some kinds of problems not only inside the EU but

also outside the EU. For example, in the EU, the governance structure is akind of problem, and the gaps between member countries, for example
unemployment rates or economic development are also serious issues.
Furthermore, many researchers in the world have paid attentions to thetrend of the common currency, Euro.

Simultaneously, outside of the EU, there are also some problems. Ukraine
recently has a very tragic situation, Turkey has waited for so many years tojoin the EU, and also its southern neighbor country, Syria, has had a very
tragic civil war for several years.

In this seminar, we have invited Dr. Karolina Klecha-Tylec from Cracow

University of Economics, International Economics Department. The theme ofher presentations are “Controversy over Membership in the European
Integration Structures: Past, Present and Future” and “Economic
Integration in Asian and European Countries”. I believe that these two
lectures are very helpful for us to understand the current situation in the EU
and to recognize the similarities and differences between the EU and othereconomic integrations.
Akira Ichikawa
Advisor, EU Institute in Japan, Kansai
Associate Professor & Deputy Director, Institute for Industrial Research
Kwansei Gakuin University

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EU Institute in Japan, Kansai (EUIJ-Kansai)International Seminar on the Enlarged EU

Controversy over Membership in the European Integration Structures

Contents
About EUIJ-Kansai…………………………………………………………………………

p. 3

Takayuki Yamaguchi
Former Vice-president, EU Institute in Japan, Kansai
Professor, School of Business Administration, KGU
Foreword……………………………………………………………………………………･

p.4

Akira Ichikawa
Advisor, EU Institute in Japan, Kansai
Associate Professor, Institute for Industrial Research, KGU
Controversy over Membership in the European Integration Structures ― Past,
Present and Future ………………………………………………………………………･

p.6

Karolina Klecha-Tylec, Ph.D.
International Economics Department, Cracow University of Economics
Economic Integration in Asian and European Countries……………………………･

p.20

Karolina Klecha-Tylec, Ph.D.
International Economics Department, Cracow University of Economics
Bibliography…………………………………………………………………………………

p.35

Lecturer’s and Coordinators’ Profile……………………………………………………･

p.36

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Karolina Klecha-Tylec, Ph.D.

International Economics Department, Cracow University of Economics

Controversy over Membership in the European Integration Structures―Past, Present and Future―
Europe is the continent which covers almost 50 countries. Those countries

are generally divided into two parts: the first one is the Western European
countries, those well-developed ones, and the other side is Central andEastern European countries, with Poland also here inside. This division isstrictly connected with history because after World War II there were fourkinds of countries over here.
The first one was the members of the Warsaw Pact. The Warsaw Pact was
created by the Soviet Union and it included former Soviet republics andsocialist countries, also Poland. The next was the North Atlantic Treaty
Organization, with western European countries. The rest of the countries
were neutral or not aligned. So this is the so-called iron curtain which fell
down at the end of the 1980s and the beginning of 1990s.
1. European integration structures – an overview
Thinking about European structures, of course in the center there wereEuropean Communities which were replaced by the European Union by theMaastricht Treaty which entered into force November 1, 1993. There were
three European Communities (ECs): the European Coal and Steel
Community – ECSC, the European Economic Community – EEC, and theEuropean Atomic Energy Community – Euratom. The European Union
currently covers 28 countries. There are also candidate and potential
candidate countries.
The next European structure is the European Free Trade Association (EFTA).
Right now it covers four countries (i.e. Island, Norway, Switzerland,
Liechtenstein), but there were seven founding members (the United
Kingdom, Norway, Denmark, Sweden, Austria, Portugal, Switzerland). The
UK was the initiator of creating EFTA for two reasons. First of all the United
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Kingdom wasn’t interested in becoming a part of the European Communities.
The aim of the EEC was to create a customs union. While the UK wanted tohave its own external barriers and own trade policy, because of its colonies,
which resources the UK was willing to use to rebuild its economy after WorldWar II. The second reason was the fact, that the UK was politically very close
to the United States. Because of the fact the UK’s membership in theEuropean Communities was refused by France.

Other former EFTA member countries were mainly Scandinavian countries –Finland, Sweden, Denmark – as well as Austria and Portugal. All thosecountries right now are members of the European Union.
As written above, currently the European Free Trade Association consists offour countries: Iceland, Norway, Switzerland, and the smallest one,
Lichtenstein. The main reason that Iceland didn’t want to be a part of theEuropean Union was fisheries policy. Norway – also fisheries policy as wellas energy. Switzerland – the transport policy (the country didn’t want to be atransit country). In addition, Switzerland has created (in 1923) a customs
union with Liechtenstein. Those both countries also share the same currency(the Swiss franc) and have got very strong banking systems (that was also a
reason not no become a part of the European Union).
Together the members of EFTA and the European Union established EEA,
the European Economic Area. The EEA was created in January 1, 1994 – thesame day the North American Free Trade Agreement was created. EEA
covers most of the continent and it was based on so-called four freedoms,
which are the foundations of a single market in the European Union. The
four freedoms are: free movement of capital, goods, persons, and services.
Not all European acquis communautaire is included in European Economic
Area legislation. Some fields are excluded.
First of all, it is common trade policy. Among European Union members
there is one trade policy. There is no possibility for example for Poland toestablish any treaty liberalizing trade with any other country. But for
example Switzerland, excluded from European common trade policy, could
have signed a free trade agreement with Japan.
77The next aspect, it doesn’t cover customs union. In all the member countriesof the European Union there is one nomenclature of tariff barriers. In the
EFTA each member country can have its own trade barriers.

The next thing, the EEA doesn’t cover common agriculture and fisheries
policies. In the European Union there are limits for fishing, so our fishermencannot fish more than the limits that was given to them for the concrete
species. For Norway that was also one of the reason why that country didn’t
want to be a part of the European Union.

EEA doesn’t also cover common foreign and security policy, and also it
doesn’t cover monetary union. So EFTA countries are not obliged to take theeuro as its currency.

The next European integration structures is the Baltic Free Trade
Agreement (BFTA). It is a very good example how common European Union’s
trade policy works. BFTA covered three countries. It was Estonia, Latvia and

Lithuania, the former republics of the Soviet Union. The Baltic Free Trade
Agreement was signed in 1994 and it existed for ten years. When those three
countries entered to the European Union in 2004, BFTA was ceased becauseof the EU’s common trade policy.

The last very important structure in Europe is the Central European Free
Trade Agreement (CEFTA). The agreement was signed in Cracow in Poland
in December 1992 by the Visegrád Group countries, i.e. Hungary, Poland andCzech and Slovak republics (at that time they were parts of the
Czecho-Slovak Federal Republic). CEFTA agreement became effective since
July 1994. Also those four countries in 2004 became members of theEuropean Union. In the past, members of CEFTA were also: Bulgaria andRomania (in the UE since 2007).
Currently members of CEFTA are Balkan countries: Bosnia and Herzegovina,
Montenegro, Serbia, Albania, Macedonia, Moldova, and Kosovo. The next one,
Croatia, became a member of the European Union in July 2013.

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2. Enlargements of the EECs/EU
European structures are generally overlapping, but in the center of them

there is the European Union. There were six founder countries od EECs.
Since the 1950s eight enlargements of that structure took place. Here are theso-called Old 15; it is the old European member countries. The basic questionis why the concrete six countries founded the European Communities?

The basic date is May 9, 1950, when the Schuman Declaration was delivered.

Robert Schuman was the French foreign minister. He delivered this speechfrom Quai d’Orsay in Paris. The 9th of May each year is celebrated as aEurope day. There are Schuman parades in European cities, also doors toEuropean institutions that day are opened.
What did Schuman say? The key quotes are as follows. The first one: “World
peace cannot be safeguarded without the making of creative efforts
proportionate to the dangers which threaten it”. The next: “Europe will not
be made all at once, or according to a single plan. It will be built throughconcrete achievements which first create a de facto solidarity.” “The poolingof coal and steel production should immediately provide for the setting up ofcommon foundations for economic development as a first step in thefederation of Europe,” “[…] and will change the destinies of those regions
which have long been devoted to the manufacture of munitions of war, of
which they have been the most constant victims”.
Here is the country to which the speech was directed: “Franco-German
production of coal and steel as a whole [will] be placed under a common High
Authority within the framework of an organization open to the participationof the other countries of Europe”.
The Robert Schuman’s speech was directed strictly to Germany and to othercountries that would like to respond. Why to Germany? Because of the Saar
Coal Field. After the First World War, the League of Nations decided that
Saar resources are going to be used by France since 1920. After 15 years
there will be a plebiscite during which inhabitants of Saar will answer thequestion whether they want to be in Germany or whether they want to be apart of France.
99Four years before the Second World War started, the Saar inhabitants
decided that they want to become a part of Germany. After the Second World

War the situation was very similar: France won, Germany lost, so again
France probably would like to use German coal and fuel resources to rebuild
its economy. Some political scientists say that it was even possible to create

the Third World War or for sure another conflict. Even Winston Churchill in
September 19, 1946 in Switzerland said, Germany and France mustcooperate. So therefore, the Schuman Declaration was focused on Germany

and to other countries, and therefore the European Coal and Steel
Community was the first European Community. ECSC was established by
the Paris Treaty for 50 years. It ceased to exist in 2002.

As it was mentioned, there were six founding members of the European

Communities: France, German, Italy and Benelux countries. Italy became asignatory of Paris Treaty mainly because of its automobile sector, thewillingness to extend to the new markets for Fiat. The three smallest
countries, Netherlands, Belgium, and Luxembourg also wanted to have big
markets for their production. Those six founders are sometimes called theinner six in the opposite to the outer seven, those seven countries thatcreated the European Free Trade Association, EFTA.

The smallest countries – Belgium, Netherlands, and Luxembourg – arecalled Benelux. In the 19th century, the smallest one, Luxembourg, wanted toincrease its economic development, so it created with Germany a customs
union. After the First World War, Luxembourg tried to establish similar
structure with France, but France denied.

Then Luxembourg proposed this issue to Belgium and the Netherlands. Only
Belgium answered positively. Therefore, in the beginning of the 1920s,
Benelux was created. Benelux was created during the Second World War, inLondon, where the three governments signed in 1944 a customs union treaty.
The treaty became effective since 1948, before the first European
Community was established. Later they signed the treaty of the Benelux
Economic Union, that went into force in 1960.

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Benelux was the first worldwide international free labor market. There werealso free movements of services and on capital. Postal and transport fees
were standardized, as well as in 1970 border controls were abolished.
Therefore, the basic politicians who were drivers of economic integration in
the European Communities, politicians from the Benelux countries would beat the top, e.g. Paul-Henri Spaak from Belgium.

The first EEC’s enlargement took place in 1973. Three countries became

members of the Communities. The first one was the UK. The United

Kingdom aspired to be a member of the European Union since the beginningof the 1960s, and it applied twice. Twice it was vetoed by France, and strictly

speaking by General Charles de Gaulle. After he resigned from being apresident of France, in 1969, the doors for the UK membership in theEuropean Community were opened.

The UK together with Ireland created in 1965 a free trade area (after signing
Anglo-Irish Free Trade Area Agreement). Those two countries entered to the
EECs together. The third country that became a member of the European
Communitires in 1973 was Denmark, the first Scandinavian country.
The next country here to be a member of the EECs in 1973 was Norway.

Norway succeeded its negotiations with the Communities. Norway signed
the Accession Treaty, but Norway society during a referendum said “no” forbeing a part of the European Communities. Therefore the first enlargement
covered only three countries.
The next enlargement was in 1981. The new member was Greece. Greece
attempted to be a member of the European Communities since the end of the
1950s, but there was a military coup which overthrew thedemocratically-chosen government. After democracy was restored, Greece
could start accession negotiations. It was a very specific situation, because
the European Commission estimated that Greece has got economic
complications and the institution didn’t recommend that country to become amember of the EECs. Despite that fact the members of the European
Communities decided Greece to access. That is one of the example thatsometimes policy matters more than economy.
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The third enlargement took place in 1986 also in the South Europe, when

Portugal and Spain became members of EECs. Therefore the 1980s
enlargements are called southern enlargements. Also those two countries,
had got dictatorial regimes. After the restoration of democracy, in the middleof the 1970s, those two countries could apply for membership in theEuropean Communities.

The next enlargement is called “the quiet” one. It took place in 1990 becauseof Germany’s reunification. Five years later three very well-developed

countries became members of the EU, i.e. Austria, Finland, and Sweden.
These countries completed their accession negotiation in only 13 months. To
sum up, all those fifteen members of the European Union are so-called old
EU-15 member states.

The following enlargement was so-called the eastern enlargement. In 2004,
ten new member countries became members of the European Union. They
were: three Baltic countries – Estonia, Latvia and Slovenia; next: Poland, theCzech Republic, Slovenia, Hungary, and the first country from the former
Yugoslavia – Slovenia. Slovenia was the first country from those UE-10
group, that became a member of the Eurozone in 2007. The ninth new EU’s
member was Cyprus (the Greek Cypriot), and the tenth, the smallest EU
member state, Malta. The European Union had then 25 members.

The next enlargement took place in 2007. It was Bulgaria and Romania to
become a part of the EU. Those two countries together with Latvia,
Lithuania Malta, and Slovakia constituted so-called “Helsinki Group”
countries, because they started their accession negotiations at the Helsinki
Summit in 1999. The six others countries from EU-10 group (i.e. Estonia,
Czech Republic, Poland, Hungary, Cyprus, Slovenia), created so-called“Luxembourg Group” (negotiation started during the Luxembourg Summit
in 1997).
The last enlargement took place in July 1, 2013. Croatia became the 28th EU

member state, and the second country from the former Yugoslavia to be apart of the European Union. It ought to be underlined, that because of border1212dispute between Croatia and Slovenia in the Gulf of Piran, earlier Slovenia
had vetoed Croatia’s accession to the EU.

In 2010 there was a referendum in Slovenia. Over 51 percent of Slovenians
approved to allow international arbitration to solve the territorial disputewith Croatia, and Slovenia’s veto was removed.

3. Steps towards accession to the European Union
The possibility to obtain membership in the EU applies only to European

countries. There are three main steps that a country must meet to become apart of the EU. The first one is being a candidate for membership. The next
step is starting formal membership negotiations. They cover first of all

so-called accession criteria. They are also called the Copenhagen criteria,
because they were set in the capital of Denmark, at the Copenhagen Summit
in 1993.
There are three accession criteria to be met. The first one is the political
criteria: stable institutions guaranteeing democracy, the rule of law, humanrights and respect for and protection of minorities. The second Copenhagen
criterion is an economic one: well-functioning market economy and thecapacity to cope with competition and market forces between European
member states. And the last one is the criteria of the adoption of European
acquis communautaire, meaning the ability to take on and implement
effectively the obligations of membership, including adherence to the aims ofpolitical, economic and monetary union.
The third step towards accession to the EU is joining the European Union.
Earlier all acquis must be negotiated. It is divided into chapters. For
example Poland negotiated 29 out of 31 negotiation chapters (the last two
chapters were not negotiated). All chapters were opened, negotiated, andtemporarily closed, until all of them were temporarily closed and theaccession treaty could be signed. After consent of a society and approval of all
the EU’s member states an enlargement can take place.

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4. Candidate and potential candidate countries
Countries which aspire to become a member of the European Union can bedivided into two groups: candidate countries and potential candidate ones.

Candidate countries are the countries which are still negotiating or which
are waiting to start the accession negotiations. There are four candidate
countries at the moment.

The first one is the old timer of accession negotiations – Turkey. Turkey
embarked its membership aspiration at the beginning of the 1960s. Right
now Turkey is supposed to be quite far from enlargement because of two
reasons. First of all, the accession criteria are not met, generally the rule oflaw, and also protection of minorities. And the second thing, Turkey is a
Muslim country and Turkey is a very populated country, it has 75 million
people. When Turkey would become a member of the European Union, it
would be the second country in terms of population. The first is of course
Germany, but it is only 80 million inhabitants. On the other hand, fromsociologist point of view, many Europeans, especially from the West Europe,
are against Turkish accession to the EU. It must be added that Turkey andthe EU established a customs union. The agreement which came in force on
December 31st, 1995.

The second candidate country is Iceland. Iceland is a member of EFTA (since1970) and EEA – so it participates in the single European market. Iceland
applied to get full membership in the EU during the global financial crisis
2008+. It was in July 2009. There are two basic obstacles for Island’s
accession to the EU. The first one is common UE’s fisheries policy and fishingquotas in the North-Atlantic Ocean. The second obstacle is connected with
the Icelandic banking system and problems related to relations with British
and Dutch governments after collapse in 2008 the Icesave saving accounts,
where over three hundred thousand of British and Dutch citizens put theirsavings. Icesave was marketed by Landsbanki, and it was one among thethree biggest Icelandic banks that collapsed during the crisis.
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The last three candidate countries are the former Yugoslavian countries.
They are the Former Yogoslav Republic of Macedonia (FYROM), Montenegro,
and Serbia. Generally the decision to involve Western Balkan countries inthe EU integration process was taken in June 2003, during the Thessaloniki
European Council summit.

The Former Yogoslav Republic of Macedonia applied for the membership in

the EU on March 2004, and since December 2005 FYROM had been granted
the status of candidate country. The main obstacle for FYROM’s accession to
the UE is Greece’s veto because of the name of the country (Greeks northern
province is called Macedonia). Other problems from the EU’s acquis point ofview are connected with competition law, environment, free movement ofgoods and fiscal policy.
Montenegro declared its independence in 2006 (earlier it was a part of Serbia
and Montenegro). The country applied for full membership in the European
Union at the beginning of 2008, and was recognized as a candidate countryin December 2010. In June 2012 official accession negotiation with the EU
started. The basic obstacles connected with Montenegro accession are justicematters and environment.

The basic problem in relation to Serbia was lack of its cooperation with theInternational Criminal Tribunal for the Former Yugoslavia (ICTY). Becauseof that reason the negotiations over a process for Stabilization and
Association Agreement were blocked in October 2004. After starting thecooperation with ICTY (arrests of Mladic and Hadzic), Serbia could apply inlate 2009 for full membership in the European Union, and it granted thestatus of EU candidate country in March 2012. Currently the basic problem
seems to be the necessity to improve Serbia’s relation with Kosovo.
Kosovo, together with Bosnia and Herzegovina, and Albania, is amongst thegroup of potential candidates countries. Those are countries which werepromised the prospect of joining the EU when they are ready to join. Albania,
Bosnia and Herzegovina were identified as potential candidates countries inJune 2003 during the Thessaloniki summit (along with Macedonia,
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Montenegro and Serbia). Kosovo declared its independence (from Serbia) in

February 2008. It wasn’t recognized even by all the UE’s member states (likeGreece or Spain). Nevertheless, the UE will to assist development of Kosovo,both in political and economical terms.
5. Economic and Monetary Union
The steps towards accession to the European Economic and Monetary Union(EMU) are as follows. The first step is joining the European Union. The
second step is meeting with the convergence criteria, also called Maastricht
criteria, they were written down in the Maastricht Treaty. Those are criteria
connected with:

price stability (consumer price inflation rate – not higher than 1.5
percentage points above the rate of the three best performing UE
members),

interest rate convergence (long-term interest rate – not higher than 2
percentage points above the rate of the three best performing UE
members),

exchange rate stability (participation in Exchange Rate Mechanism,
ERM II, for at least 2 years, without strong deviations from thecentral rate),

public finance discipline (government deficit not higher than 3% of
GDP and government debt not higher than 60% of GDP).

The Eurozone was created in 1999. Then the common currency, the euro wasintroduced as so-called “book money” in eleven of the fifteen EU members. In
2002 there was cash changeover, and euro was adopted physically as acurrency instead of national currencies of twelve EU member states (in 2001
Greece joined the EMU).
In 2014 there are eighteen (out of 28) members of the Economic andMonetary Union. In 2007 Slovenia became a member of EMU, followed by
Malta and Cyprus (2008), Slovakia (2009), Estonia (2011), and Latvia(January 2014). Lithuania probably is going to become a member of theEurozone January 2015.

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There are two UE member states with so-called “opt-opt” clause: the United

Kingdom and Denmark. It means that those two countries have derogation,
a right not to become a member of Eurozone ever. Despite that fact, theDanish kroner joined the ERM II scheme in 1999.

The other eight UE member states are outside the euro area, i.e. Bulgaria,

Croatia, the Czech Republic, Hungary, Poland, Romania, Sweden and, as
mentioned above at the moment, also Lithuania. Among those countries only
Lithuania joined the ERM II.

It ought to be mentioned that some of the EU member states overseas

territories also introduced euro as a legal currency. They are French:
Guadeloupe, Réunion, French Guiana, Martinique; Portuguese Azores andMadeira, and Spanish Canary Islands.

In addition to the above-mentioned countries using the euro as their legal
currency it should be underlined that there are two groups of European
countries which introduced euro, despite the fact that they are not a memberof the European Union.

The first group is constituted by countries that were permitted to issue theirown coins, after negotiations with the European Central Bank (EBC). They
were three such countries: San Marino, Monaco and Vatican. The second
group of countries that introduced euro cannot issue own coins. This group isalso made up of three countries: Montenegro, Kosovo and Andorra. Amongthem only Andorra was permitted by the EBC to use euro as legal currency,
but it cannot issue its own coins. Earlier, before launching the euro, Andorra
used French franc or Spanish peseta. Montenegro and Kosovo since 1999 had
used German mark, since 2002 – euro, which became those for two countries
de facto currency.
6. Schengen area
The Schengen Area enables the citizens of 26 European countries to travel
freely without passports across the zone’s borders. The Area is made up of 22

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EU members and the four EFTA member states: Norway, Iceland,
Liechtenstein, and Switzerland.

The Schengen Agreement was signed in 1985 in Schengen (in Luxemburg) by
five EU members: France, Germany, Belgium, the Netherlands andLuxemburg. In 1990 the Schengen Convention was signed. The Schengenacquis were included in the Amsterdam Treaty in 1999.

The idea of creating passport-free zone in Europe covered such areas like:

harmonization of the conditions of entry and of the rules on visas for
short stays (up to 90 days),

a common set of rules for persons crossing the external borders of the
area,





stronger judicial cooperation,enhanced police cooperation,
establishment of the Schengen Information System (SIS).

In some special situations passport-free travel in the Schengen Area can besuspended. For example during sport events (like European footballchampionships, in 2008 Austria suspended for a few weeks the Schengenacquis, the same did Poland in 2012), or others (e.g. United Nations Climate
Change Conference in November 2013 in Warsaw, Poland).

The implementation of the Schengen Agreements started in 1995, involving
seven EU members: the five above-mentioned signatories, Spain andPortugal. In 1998 Italy and Austria joined the Schengen Area, followed by
Greece (2000), and Denmark, Sweden, Finland, Norway, Island (2001). It
should be added that Scandinavian countries (Sweden, Denmark, Finland
and Norway) since 1950s had been a part of Nordic Passport Union. In
December 2007 nine more countries became a part of the Area, i.e. Lithuania,
Latvia, Estonia, Hungary, Malta, Poland, the Czech Republic, Slovenia,
Slovakia. A year later Switzerland joined the Schengen Area.
There are six out of 28 EU member states outside of the Schengen Area.
Bulgaria, Romania, Cyprus and Croatia are Schengen candidate countries,
aspired to join the zone by 2016. Whereas the United Kingdom and Ireland
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have got opt-outs from Schengen acquis. Those two countries in 1923 hadestablished Common Travel Area (CTA). It is a passport-free travel zone thatcomprises the United Kingdom, Ireland, the Channel Islands and the Isle ofMan. Nevertheless, the countries with opt-outs take part in some Schengenarrangements.

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Karolina Klecha-Tylec, Ph.D.

International Economics Department, Cracow University of Economics
Economic Integration in Asian and European Countries

1. Theory of economic integration – an overview
Economic integration can be described as the elimination of economic

borders between countries (both tariff and non-tariff ones), and also barriers
for the moving of production factors, like people or capital. Taking into
consideration the so-called Balassa scheme, there can be divided thehierarchy of regional economic agreement as follows:

free trade area (FTA) – elimination of trade barriers within the groupof countries, while maintaining external tariffs by every country in

relation to third countries,

customs union – FTA rules accompanied by a common trade policy
towards third countries,

common/single market – a customs union along with a free movementof production factors,

economic union –common market along with the coordination or
unification of various economic policies (when an economic union isaccompanied by full coordination of monetary, exchange rate andother policies, it leads to establishing a monetary union which reflects
full integration – an economic and monetary union),

political union – common political institutions (the last stage ofregional integration).

The interdisciplinary character of classical integration theories can beconsidered from the perspective of the spill-over effect of economic
integration on political unity. Also, the classical model of economic

integration stressed the significance of institutional regionalism resulting
from inter-government dialogue and revisions of treaties.

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Free trade areas are the most numerous regional economic agreements(RTAs) in the world economy. Over 90 percent of all worldwide RTAs are
FTAs. Economic unions cover common monetary and fiscal policy; this is thelevel of the European Union right now. We can distinguish three groups ofcommon policies in the EU. The first one are agriculture and trade policy(two amongst the oldest European common policies), and competition,cohesion, and monetary policy (which is strictly connected with theEurozone).
The next group of common EU’s policies is policies of infrastructure sectors.
Here is transport (the third-oldest common policy), and the others like:Trans-European Networks (TENs), energy, post, electronic communications
and audio visual policy. And the third group of the policies, the mostnumerous one, is social policies. They are as follows: employment and social

policy; education, training, youth, sport; culture; public health; consumer
protection; industrial; science, technology, outer space; environment policy;
tourism; civil Protection; and administrative cooperation. Sports and outerspace are new ones, added by the Lisbon Treaty.
2. European model of integration
European integration model, generally is based on institutions, so it isinstitutional-led integration. From the theoretical point of view there can be
distinguished three approaches. The first one was neo-functionalism basedon supranational institutions at the beginning, creating a so-called High
Authority. Right now it is the European Commission. The second wasintergovernmentalism, popular in the 1970s, generally forced by France,
which was then against creating supranational institutions. And in the
1990s, neo-institutionalism came to be popular.
There are seven basic European Union institutions: the European Council,
the Council of the European Union, the European Parliament, the European
Commission, the Court of Justice of the European Union, the Court of
Auditors and the European Central Bank.

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European integration has evolved as follows. The first step of European

integration took place at the beginning of 1950s, after the Schuman
Declaration which was the base for creating, the first European Community

based on the Paris Treaty, the European Coal and Steel Community (ECSC).
In 1957 the Rome Treaties were signed and two other communities werecreated, i.e. the European Economic Community (EEC) and the European

Atomic Energy Community (EAEC or Euratom). In 1965 the Merger Treaty
was signed.
The next step was creating customs union. It was created one-and-a-halfyear before the deadline, which was January 1, 1970. The customs union
became effective since July 1, 1968. The next step was the first enlargement,
three countries, Denmark, the UK, and Ireland jointed the EECs (Norwegiansociety vetoed its participation).

In 1979, the European Monetary System was established, with European
Currency Unit, and the Exchange Rate Mechanism. And also, that year there
were the first direct elections to the European Parliament. Earlier, theelections were indirect, meaning the members of European Parliament werechosen by national parliaments of the European member countries.

In 1981 the second enlargement took place. Greece became the tenth EECs’
member state. The next step was the White Paper, which caused deepeningof economic integration. It was the base for creating the single market(founded by the Single European Act signed in 1986), which based on
so-called four freedoms: free movement of capital, people, services, and goods.
In 1986 Portugal and Spain became the members of the EECs, and in 1990
there was Germany’s reunification.
In November 1993 the Maastricht Treaty came into force, and the European
Union was created, consisting of three pillars. The first one, wasencompassed by the European Communities (ECs). The second pillar, was
the Common Foreign and Security Policy (CFSP), and the third one, Police
and Judicial Co-operation in Criminal Matters (PJC).

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In 1995 there was the fourth enlargement, by very well-developed countries:

Austria, Finland, and Sweden (again there was veto by citizens of Norway).
The next step was the Amsterdam Treaty. It created a High Representative
for Common Foreign and Security Policy, adopted the Schengen acquis, andcreated a common environmental policy. The Amsterdam Treaty came into
force on 1 May 1999.
The next step was European Economic and Monetary Union (EMU) that was

created in 1999, with the euro as a “book money”. The cash changeover took
place in 2002. In June 1998 the European Central Bank was created.
In 2001 the Treaty of Nice was signed. The Treaty reformed the institutional
structure of the EU. Its basic aims were to enhance cooperation, extension ofqualified-majority voting and weighting of votes in the Council of theEuropean Union (in favour of more populated EU members), changing sizeand composition of the European Commission, and a new division of
assignments between the Court of First Instance and the Court of Justice.

The Treaty of Nice came into force in February 2003

The next step was the fifth enlargement, the biggest so-called Easternenlargement, by ten countries, with Poland among new member states. It
took place in May 2004. And in October 2004 a Treaty establishing aConstitution for Europe was signed by representatives of the 25 then UE
member states. During a ratification process two societies rejected the treaty
in referenda, i.e. Frenchmen and Dutch.
In January 2007, Bulgaria and Romania became members of the European
Union. And in December the Lisbon Treaty was signed in the capital of
Portugal. As it was said, the Treaty of Lisbon is going to take Europe into the
21st century. So first of all, it is going to make Europe more democratic. It has
strengthened the role of the European Parliament, and introduced greater
involvement of national parliaments (especially in relation to subsidiarity).

The next aspect is European citizens’ initiative, that enables one million
citizens of the UE member states, to summon directly on the European
Commission with a proposition of a legislation act. There are some examples
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already, like “Stop vivisection” (objective: to phase out experiments on

animals, “Suspension of the EU Climate and Energy Package” (inter alia
aimded at making fuel and energy cheaper or increasing energy security),“Turn me Off!” (in order to forbid the practice of leaving the lights on in
offices and shops when unoccupied).

And the next thing connected with EU democratization. For the first time
ever, a country can withdraw from the European Union. Earlier there was nosuch law, but there is one example, not withdrawing but secession. It wasGreenland in the middle of 1980s.

The next feature of the Treaty of Lisbon was to make Europe more efficient.
Qualified majority voting in the European Council was extended to newpolicy areas, that caused that European integration process is going to be

more elastic. And the next thing, a quite new office, a function of the
President of the European Council was created. The first president was
Herman Van Rompuy, the former Prime Minister of Belgium.
Another novelty of the Treaty was to improve lives of Europeans, among
others by combating terrorism, tackling crime, including civil protection,
public health, territorial cohesion, space, sport, climate change, commercial
policy, administrative cooperation or tourism.

The next aim of the Lisbon Treaty was to promote the UE’s values and rights,
solidarity, so-called four freedoms, as well as economic, political and social
freedom. It also introduced Charter of Fundamental Rights of the European
Union into European primary law, and solidarity between the UE members,

for example, in the situation of terrorist attack when a natural or man-madedisaster occurs.

The last basic aim of the Treaty of Lisbon was to make the EU an actor on a
global stage. First of all the European Union has become an organization, it
has got a single legal personality. Earlier the legal personalities had only
European Communities. Also, progress in security and defense policy was
made, and a High Representative for European Union in Foreign Affairs and2424Security Policy was established, with Catherine Ashton, as a first person
occupying this position.

In December 2009, the Treaty of Lisbon went into force. It was supposed to
be January 1, but because of the Irish veto it was delayed. In July 2013, thelast enlargement took place. Croatia became the 28th member state of theEuropean Union.

So the key economic achievements, in the European integration are as

follows. The first was to create a single market. Next, economic andmonetary union. And an efficient system for policy coordination, meaning
several European common policies.

The basic feature of economic integration among the UE member states was
the fact, that financial and monetary integration took place after the
integration of real markets.
3. East Asian model of integration
The model of integration adopted in East Asia is market-based, or anothernetwork-based model. It wasn’t focused so much on institutions or legal
aspect as in Europe, but more on informal relations.
The first feature of East Asian integration model is soft regionalism. It’s
more soft integration, in contrast to European so-called hard integration,
meaning basing on treaties.
The next: so-called the Asian way. Its origin should be referred to Malay
culture and its concept of decision-making based on consensus (mufukat) andcompromise (musyawarah). It is a specific way of making decisions andinformal relations that is unknown in Europe.
The subsequent feature of East Asian integration is bottom-up approach, incontrast to the European top-down one. Therefore in Asia the basic process isregionalization, and then – regionalism, meaning that market mechanism isstrong in Asia.
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Subsequently, East Asia can be characterized by much lower degree of
institutionalization. Relying on the ADB research, half of Asian politiciansand entrepreneurs are against creating new institutions. Most of them were

for strengthening or consolidation existing institutions. This can begenerally connected with history, and the countries’ attributing great
importance to national independence. Among ten Southeast Asian states,nine of them gained their sovereignty after World War II. The exemption is
Thailand.

The next feature of East Asian model of integration is a dominant role of thestate over society. In Europe there are very active NGOs, for example thisIrish one, forcing the society to vote against ratification of the Lisbon Treaty

in June 2008. In Asia, it seems to quite different. A society is driven by agovernment, therefore there is weaker role of a society in Asian region.

In East Asia there is also a broad range of informal relations. There can be

distinguished three of them. The first one is subregional economic zones, likefor example Indonesia-Malaysia-Singapore Growth Triangle, or Greater
Tumen Initiative. This is quite opposite from European regular policy
because here the focus is concentrated on specific regions because of its
resources, or infrastructure that has developed over there. In Europe
regional policy covers regions, which are parts of countries. And the idea isfor convergence to make them the same level of development. Here, someparts of China for example, are outside that relation.

The next range of informal relations is production networks. Very importantfeatures of East Asian region are existing comparative advantages, that are
extremely differentiated, and the complementarity of resources with a viewto accelerating economic growth. That was the base to creating a growthdevelopment corridor, that is going from Tokyo up to Jakarta. Because ofdifferences in wages, and in other production factors, it could have developed
so quickly and widely, with Japanese keiretsus as important drivers of thatprocess.

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The third element of East Asian informal relations is networks of ethnic

business. During my researches it occurred that there were two main
determinants which created internal trade in the region. The first one, it wasestablishing bilateral free trade agreements, not like ASEAN and China,

ASEAN or Japan, bilateral between for example Singapore and Japan. And
the second important determinant was being able to speak the samelanguage. So speaking different languages is an important obstacle forproviding trade here in East Asia. Therefore, the strength of the PRC here in

East Asia is Chinese diaspora and its business networks located in theregion.

4. EU-East Asia – a comparative approach
Taking a comparative approach into consideration, the emphasis first will belaid on differences and next – on similarities between the two integration
structures: the EU and ASEAN+3. In each case, first East Asia case will be
discussed, and next – Europe.
The first difference is the triggers. Talking about ASEAN, the basic trigger
was the Cold War. The five founders of the Association – the ASEAN-5
countries, i.e. Indonesia, Malaysia, Philippines, Singapore and Thailand –were aimed at stabilizing the region during the Cold War, during ongoingwars and conflicts.

The next trigger is regionalism outside, meaning especially the 1990s, andcreating a single market in Europe, and then a Eurozone, and also – a North
American Free Trade Agreement. NAFTA entered into force the same daythat single market was created, January 1, 1994. Therefore, economic
integration among the ASEAN member states stared, and the idea ofcreating an ASEAN Free Trade Area was brought into life, although earlier
Singapore proposed such a solution, but it was denied by other countries.
The next trigger was the beginning of transformation in Central and Eastern
European Countries (CEECs). It had started in the 1989 in Poland, and it
was obvious that the CEECs states would like to apply for a membership it
the European Communities. Investors from all around the world, being
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aware of the fact started to invest their capital in the CEECs, as a part of

future Single European Market. As a consequence, the ASEAN countries
started to lose those investments. Therefore, ASEAN started to create one
region, that could be attractive for foreign investors.

The next trigger is the Asian financial crisis 1997/98, for a few reasons. The

first one was the role of the IMF. Malaysia which refused that assistance, hasrecovered its economic growth very quickly. On the other hand, ASEAN was
expecting to get indirect help from the United States, because the US helped

Mexico during the Tequila Crisis in 1994. But there was no direct American
help for East Asian countries. Also, the proposition of creating an AsianMonetary Fund was rejected. The idea of establishing the AMF was initiatedby Japan a month after the financial crisis occurred in Thailand, i.e. in
October 1997. All above-mentioned reasons were triggers for developing
financial regionalism among the members of ASEAN+3.

And the last trigger, to be underlined is a great natural disaster, the tsunami

in December 2004. Then Japan, a country that developed one of the world
most developed alert systems offered other countries in the region to use its
technology. It was a kind of Japanese soft power, and also a very good
example how solidarity in East Asia can work.
Regarding to triggers in relation to European integration, first of alldevastating First and the Second World War ought to be mentioned. The
second, the Cold War. Europe was divided by the so-called iron curtain. The
Western European countries were parts of the European Recovery Plan (theMarshall Plan). The administration of the US announced launching theassistance, provided that an organization to distributing the money would beestablished. As a consequence the Organization for European Economic
Cooperation (OEEC) was established, replaced in 1960 by the Organization
for European Economic Cooperation (OECD), with the US and Canada as
member states.
The second trigger in the European integration process was a Common
Agriculture Policy (CAP), mainly because of one important reason. In
1968/69 a problem connected with exchange rates in European Economic
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Community occurred. The German mark was being revaluated, during the
French franc was devaluated. So there was a problem in the settlement
system of the main European policy. Therefore the decision was to fix themember states’ exchange rates. That was the basis for creating the European

Monetary System with European Currency Unit (ECU), and later in 1999
Economic and Monetary Union.
And the last trigger in Europe: economic development that occurred outside.
In 1968 Japan became the second world economy, and the Federal Republicof Germany became the third one. Also other countries were developing, andin Europe since the Rome Treaty entered into force in 1958, creating thecustoms union, the economic integration wasn’t deepened. Therefore
sometimes the decade of 1970s is called “euroscelerosis”.

The next difference between East Asia and Europe is leadership. Taking
East Asia as a whole, rivalry to gain dominance in the region between Japanand China can be seen. In the ASEAN generally there is no single hegemonic
power, with the dominant role of the Association’s founders. In Europe it isstill, since the beginning, Franco-German alliance. Those two countries arein front of the integration process in Europe.

The next dissimilarities are rules for membership. In the Association, it is acase-by-case scheme, thus, it is a political decision of the member states. In
the UE’s case there are very concrete rules. The first ones are the
Copenhagen criteria, accession criteria to become a member of the European
Union, and the Maastricht criteria to become a member of the Eurozone.
Institutionalization is the subsequent diffidence of the two analysed models
of integration. In ASEAN the main institution is the ASEAN Secretariat,
situated in Jakarta, Indonesia. In addition intergovernmental cooperationand dialogue is being developed. In Europe there are those seven, mentioned
above, common institutions and many other agencies and institutions, likefor example the European Anti-fraud Office (OLAF), the European
Medicines Agency (EMA), the Office for Harmonization in the InternalMarket (OHIM), the European Fisheries Control Agency (EFCA), theEuropean Railway Agency (ERA).
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The next difference is the sequence. In ASEAN there were free trade areas.
First it was AFTA, the ASEAN Free Trade Area, and others beginning fromthe ASEAN-China Free Trade Agreement, which triggered another bilateral

FTAs in the region. After the East Asian financial crisis 1997, financial
initiatives have been laid down, i.e. the Chiang Mai Initiative

Multilateralisation (CMIM), the Asian Bond Markets Initiative (ABMI), andPan Asian Bond Funds (ABF), as parts of the ABMI. In Europe the economic
integration process was connected to the Balassa scheme. First, it was acustoms union, next, a single market, and at the last, monetary union.

The next difference is the economic integration basis. In ASEAN they arecorporate and relationship networks, and supply chain and division of labor.
In Europe generally it is one base, competition. Economic competition isamongst the most important common European policies, which creates themarket mechanism and integration inside the EU.
A foundation of intraregional trade is the subsequent dissimilarity between
East Asia and Europe. In ASEAN it was a market-driven process. In Europe,
the foundation can be described as a policy-driven discrimination. A Common
Agriculture Policy can be an example of that. After World War II when the

General Agreement on Tariffs and Trade (GATT) was created, the USA
decided to exclude CAP from the Article XXIV of the GATT. This was going tostrengthen Europe against the Soviet Union during the Cold War, but on theother hand it triggered other exemptions afterwards. In case of the ASEAN,
following ECs’ example, i.e. creating so-called ASEAN fortress would be too
expensive, because its main economic partners were outside the region, so it
wouldn’t be profitable to create such a foundation.
The next difference is regulatory approach. In ASEAN, the foundation is defacto economic integration, that describes the intensity of economic links

between global economic entities, i.e. regionalisation. In case of Europe it isde iure, and it relates to the institutional dimension of integration, i.e.
regionalism.

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The subsequent dissimilarity is the United States approach to regionaltransformation. In relation to East Asia it was individual approach, which
can be still observed currently. With regard to Europe, the support from the
US was comprehensive. The American idea was to strengthen Western partof Europe as a whole, that was reflected among others in establishing theEuropean Recovery Plan or accepting Common Agricultural Policy.
The last dissimilarity is connected with regional identity. In Asia it seems to

be rather weak. There are very many different traditions, cultures, religions,that together with historical animosities didn’t influenced on creating
common East Asian identity. On the other hand in Europe its identity isstrong since the ancient times. European countries even since the Middle
Ages had joined their power and strengths, aspiring to protect the region

from invaders, e.g. Muslims. Cooperation between Christian European
countries was the base of integration in Europe.

The follow-up part of the article will discuss the similarities between the twoanalysed regions. The first one is pillars. There were three, mentioned-above,
pillars in the European Union: the European Communities, the Common
Foreign and Security Policy, and Police and Judicial Co-operation in
Criminal Matters. They existed between 1993 and 2009, when after theTreaty of Lisbon entered into force, they were absorbed into a consolidated
EU structure. The planned ASEAN Community is also going to be based on
three pillars, i.e. the ASEAN Political-Security Community (APSC), theASEAN Economic Community (AEC), and the ASEAN Socio-Cultural
Community (ASCC).

The next similarity is an idea of creating single market. In Europe, it wasestablished by the Single European Act, and it was based on so-called four
freedoms. In ASEAN it is going to be a part of AEC, where the free flow ofgoods, services, investment, capital, and skilled labor is to be assured among
the member states.
A further resemblance is a flag. The European one was adopted in December
1955 by the Council of Europe, and in the 1980s by the European Parliamentand all EU leaders. It consists of twelve golden stars in a circle (a symbol of
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unity) on a blue background. The stars symbolise the solidarity and harmony

among the European peoples. Also a circle in the ASEAN flag is a symbol ofunity of its member states. There are four colours, white represents purity,
yellow – prosperity, red – dynamism and courage, and blue backgroundshows stability and peace.

Presidency is the next similarity. It the EU it last half a year. For example
from January to the end of June 2014 Greece holds the Presidency of theCouncil of European Union, followed by Italy, and Latvia and Luxembourg in
2015. In the ASEAN it is one year, e.g. Myanmar’s presidency in 2014.

The next common feature is an anthem. In ASEAN, that is “the ASEAN
Way”. There is also a recommendation by the ASEAN Secretariat totranslate the text into national languages. In Europe the anthem is “Ode to
Joy.” Both integration structures had got also a motto. In ASEAN it is “Onevision, One Identity, One Community”. That was the motto of the Kuala
Lumpur ASEAN Summit in 2005. The EU’s motto is “United in Diversity”.
5. Lessons from the EU
The first lesson from the European integration process is the importance ofamity and peace. It was reconciliation between France and the Federal
Republic of Germany that was the starting point of integration in Europe.
Significant role of institutions is the next aspect connected with the EU
integration experience. As Jean Monnet said, nothing can be done without
people, but nothing can last without institutions. That is naturally provided
that concrete institutions are necessary, neutral, objective, and very wellorganized and governed.
The next lesson, monetary arrangements must be backed by coordinatedmacroeconomic policy and sufficient structure reforms. The Eurozone crisis
is a very good example of that. There was not appropriate policy mix in theEurozone economies. They were not sufficiently coordinated and the crisis
arised.

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The next warning is a danger of import credibility. Germany is the biggest

economy in Europe, and of course the biggest economy in the Eurozone.
During the latest crises it has occurred that the weaker countries, like

Greece or Portugal, have been issuing bonds, making use of imported

German and generally the Economic and Monetary Union credibility, as theguarantors.
The next aspect is connected with commitment to domestic reforms. It must

be underlined that it is hard to cooperate, or create FTAs, custom union,
establish harmonized or common policies without implementing internal free
trade economies and market mechanism.

Mutual obligation to political support is also very important. It must be

supported by politicians. They are negotiating and signing agreements, andnext executing decisions and law. Therefore strong leadership is needed, thatis able to lead policy focused also on weaker economies participating in the
integration process.
The next facet is trade liberalization, which is ought to be effective andprofitable for each member state. Taking East Asia into consideration a
special notice should be done in connection with structure of economies.
Some of them base on the first sector, some on the third one, like Singapore.
Thus all member countries should gain from liberalization, otherwise someof them will not be interested in participating in the integration process.

Establish a core group can be also treated as a European lesson. In East
Asian region the mentioned rivalry between Japan and China can beobserved. Therefore the core of integration among the ASEAN+3 countries,
seems to be the Association of Southeast Asian Nations. It has been
underlined very often in different documents adopted during ASEAN
Summits, ASEAN+3 Summits or even East Asia Summits (EAS). On theother hand, the core group of the Association is ASEAN-5 countries. The
question is this process, and the current core group of countries, will evolvein the closer and further future. Another important question is at what
extent those countries will lead integration in favour of the rest of the33
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ASEAN member states, particularly the CLM (Cambodia, Laos, Myanmar)
group.

The further lesson is to pool possessed resources in common projects. In East
Asia it is important to develop both industrial and agriculture policies, aswell as high tech sector, while sharing resources and know-how.

The next thing is to recognize the economic effects of trade, so that eachcountry gains from participating in the economic integration process, andcan increase its economic growth and development. The main problem is try
to predict the direction of the process, trying to improve it, taking into
account the interests of all countries, the agricultural, industrial, and basedon the service sector.

The subsequent aspect is connected with the significance of strengthening
internal consumption. It is important because it prevents the region fromexternal shocks, like for example decrease of demand in the US, or in theEuropean Union, as it happened during the current global financial crisis
2008+ and the Eurozone crisis. The policy of expanding domestic demand isbeing pursuing at present in China. But generally the basic East Asian
challenge in that case is to decrease disparities among per capita income in
the region.

And the last matter, the important one: losers in the integration must becompensated. As many studies show, the worse developed East Asian
countries, like CLM, are going economically to loose in case the East AsianFree Trade Area (EAFTA) or the Comprehensive Economic Partnership in
East Asia (CEPEA), covering both agriculture and industrial products, iscreated. For such countries in Europe in the 1970s a cohesion policy wascreated, as a kind of compensation for underdeveloped regions. Providingthat kind of support for sure would favor to obtain the peoples support for
integration initiatives in East Asia, as well as it would promote thestrengthening of regional identity in the region.

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【Bibliography】
Ando M., Impacts of FTAs in East Asia: CGE Simulation Analysis, RIETI

Discussion Paper Series 09-E-037, The Research Institute of Economy,
Trade and Industry, July 2009.

Das S. B., Menon J., Severino R., Shrestha O. L. [eds], The ASEAN Economic
Community. A Work in Progress, ADB, ISEAS, Singapore 2013.
Dent C. M., East Asian Regionalism, Taylor & Francis Group, 2008.

Dieter H. [ed.], The evolution of regionalism in Asia: economic and security
issues, Routledge, 2007.

Dong L., Heiduk G. [eds], The EU's experience in integration: a model for

ASEAN+3?, Peter Lang, 2007.
Frost E. L., Asia's New Regionalism, Lynne Rienner Publishers, 2008.

Fouquin M., Comparing Bilateral and Multilateral ASEAN10+4 Free Trade
Agreements: Possible Impacts on Member and Non-member Countries[in:] East Asia’s Economic Integration. Progress and Benefit, D. Hiratsuka,
F. Kimura [eds], Palgrave Macmillan, Hampshire, New York 2008.
Hiratsuka D., Kimura F. [eds], East Asia's Economic Integration. Progress
and Benefit, Palgrave Macmillan, 2008.

http://www.consilium.europa.eu/
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Institutions for Regional Integration: Toward an Asian Economic Community,
Asian Development Bank 2010.
Plummer M. G., East Asian Economic Integration and Europe: Can ASEAN
Learn from the EU?, [in:] Emerging Developments in East Asia FTA/EPAs,
Shigeyuki Abe and Bhanupong Nidhiprabha [eds], CSEAS Kyoto, 2007.
Ruland J., Schubert G., Schucher G., Storz C. [eds], Asian-European
Relations. Building Blocks for Global Governance?, Routledge, 2008.
Telò M. [ed.], European Union and New Regionalism. Regional Actors andGlobal Governance in a Post-Hegemonic Era, Ashgate Publishing Ltd.
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Volz U., Prospects for Monetary Cooperation and Integration in East Asia,
MIT Press, 2010.

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【Lecturer’s Profile】
Dr. Karolina Klecha-Tylec

Ph. D., works at Cracow University of Economics in Poland, Faculty of
Economics and International Relations, International Economics
Department.
Author and co-author of many articles, books and reports on international

integration process, regionalism and regionalization of the world economy,

the economic development strategies – with particular emphasis on Europe
and the East Asian region. Awarded in 2006 by the Professor Zbigniew
Kamecki Prize by Warsaw School of Economics. As of 2012 she carries out
a research project entitled “The Theory and Practice of East Asian Economic
Regionalism”, funded by Polish National Science Centre.
e-mail: klechak@uek.krakow.pl【Coordinators’ Profile】
Dr. Takayuki Yamaguchi
Professor, School of Business Administration, Kwansei Gakuin University

Kwansei Gakuin University, Ph.D. (Business Administration). Prior toaccepting current position in 2009, he taught at Kwansei Gakuin University
as a full-time lecturer and an associate professor. Specializes in SME policy
in France and its theoretical study. His activities include Director of La
Société Franco-Japonaise de Gestion, Secretary General of the Society for
the History of Management Theories, Chairperson of external evaluation for
Credit Guarantee Association (Hyogo).
Dr. Akira Ichikawa

Associate Professor & Deputy Director, Institute for Industrial Research,
Kwansei Gakuin University
Keio University, Ph.D. (Media and Governance). Prior to accepting current
position in 2012, he taught at Keio University, Nagoya University ofCommerce and Digital Hollywood University as a part-time lecturer. He also
worked at Keio Institute at SFC as a visiting senior researcher and Tokyo
Institute of Technology as a research fellow. His field of specialties is theregional study in the enlarged EU and global environmental governance.
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