Kari Alho

The economics and policies of integration : a Finnish perspective

Preface. 1. Finland and European Integration K. Alho. 2. Finland in the European Community - the Economic Impacts K. Alho, et al. 3. New Developments in the Study of Economic Integration A. Venables. 4. The Identification of Barriers to International Trade under Imperfect Competition K. Alho. 5. An Imperfect Competition Model in an Industry with Differentiated Domestic and Foreign Products M. Lammi. 6. Foreign Trade in Denmark and Finland K. Alho, M. Widgren. 7. Finnish Participation in the Internal Market M. Erkkila. 8. Is the EU an Optimal Currency Area and is Finland a Part of It? M. Kotilainen. 9. The Functioning of Labour Markets in EMU K. Alho, M. Erkkila. 10. Macroeconomic Policy and EMU K. Alho, M. Widgren. 11. Voting Rule Reforms in the EU Council: Needs, Means and Consequences. List of Publications on European Integration by ETLA.

Finland in the European Community — The Economic Impacts

The co-operation between the EC and EFTA began to increase appreciably in 1984, when the so-called the Luxembourg process was proclaimed by them. Its aim was to form a Western European economic area which would fulfil the objectives regarding free mobility of goods as set out by the Single European Act of the EC. The Luxembourg proclamation was the broad starting point for the European Economic Area (EEA) negotiations. It was felt that as a united negotiator the EFTA countries, which constitute a significant trading companion for the EC, would be better able to influence the course of the process.

Macroeconomic Policy and EMU

Macroeconomic policy consists of fiscal policy, i.e. the regulation of public expenditure and income and monetary and exchange rate policies, the aim of which is to stabilise the business cycle and to promote structural change. Incomes policy is also regarded as part of macro policies in Finland, in contrast to the EU, where it is deemed to be die responsibility of the private sector.

Foreign Trade in Denmark and Finland

Economic integration is fundamentally about the lowering and removal of barriers to trade. The core of the EC has been a customs union. The barriers to trade have been removed inside the Community and accompanied by a common commercial policy towards third countries. Member states both gain and lose from this.