Competition Policy in Central East Europe in light of EU Accession
Johannes Stephan
Journal of Common Market Studies,
2004
Abstract
This study reviews the progress made in EU accession candidates on competition policy. The analysis shows that institution-building and legislation are well under way and that anti-trust practice is not too lax. Due to the diversity among the accession countries under review, the study finds that the strictly rule-based frame work of the EU might not be the most favourable solution for some candidates: firstly, the small and open economies of most candidates make it particularly difficult to define the ‘relevant market’ in competition cases. Secondly, the traditionally intense vertical integration of production in accession states calls for a reassessment of ‘vertical restraints’. The policy implications of this study suggest that the EU competition task force should take a proactive, case-by-case approach vis-à-vis its new members.
Read article
Investment, Financial Markets, New Economy Dynamics and Growth in Transition Countries
Albrecht Kauffmann, P. J. J. Welfens
Economic Opening Up and Growth in Russia: Finance, Trade, Market Institutions, and Energy,
2004
Abstract
The transition to a market economy in the former CMEA area is more than a decade old and one can clearly distinguish a group of relatively fast growing countries — including Estonia, Poland, the Czech Republic, Hungary and Slovenia — and a majority of slowly growing economies, including Russia and the Ukraine. Initial problems of transition were natural in the sense that systemic transition to a market economy has effectively destroyed part of the existing capital stock that was no longer profitable under the new relative prices imported from world markets; and there was a transitory inflationary push as low state-administered prices were replaced by higher market equilibrium prices. Indeed, systemic transformation in eastern Europe and the former Soviet Union have brought serious transitory inflation problems and a massive transition recession; negative growth rates have continued over many years in some countries, including Russia and the Ukraine, where output growth was negative throughout the 1990s (except for Russia, which recorded slight growth in 1997). For political and economic reasons the economic performance of Russia is of particular relevance for the success of the overall transition process. If Russia would face stagnation and instability, this would undermine political and economic stability in the whole of Europe and prospects for integrating Russia into the world economy.
Read article
Merger Control and Competition Policy in Central East Europe in view
Johannes Stephan
ICFAI Journal of International Business Law,
2003
Abstract
This study reviews the progress made in EU accession candidates with respect to competition policy. The analysis shows that institution building and legislation is well under way and that anti-trust practise is not too lax. Due to the diversity among the accession countries under review, the study finds that the strictly rule-based framework of the EU might not represent the most favourable solution for some candidates: firstly, the small and open economies of most candidates make it particularly difficult to define the “relevant market” in competition cases. Secondly, the traditionally intense vertical integration of production in accession states calls for a reassessment of “vertical restraints”. The policy implications of this study suggest that the EU competition task force should take a rather proactive, case-by-case approach vis-à-vis its new members.
Read article
EU enlargement to the East: Effects on the New Länder
Joachim Ragnitz
Wirtschaft im Wandel,
No. 2,
2002
Abstract
In den nächsten Jahren wird voraussichtlich eine ganze Reihe von mittel- und osteuropäischen Ländern der EU beitreten. Während in der wirtschaftswissenschaftlichen Diskussion die Vorteile einer stärkeren Marktintegration für alle beteiligten Länder betont werden, verbinden sich mit der EU-Osterweiterung in der öffentlichen Diskussion eine Reihe von Ängsten, vor allem in den neuen Bundesländern. Befürchtet wird insbesondere eine hohe Zuwanderung von Arbeitskräften, die zu einer Verdrängung heimischer Arbeitnehmer führen könnte, eine verstärkte Konkurrenz auf den Gütermärkten durch preis- und kostengünstige Anbieter aus den MOE-Ländern, und eine zunehmende Verlagerung von Produktionsstätten aus Deutschland in jene Länder. Im Mittelpunkt dieses Beitrags stehen die zu erwartenden Auswirkungen der EU-Osterweiterung für Ostdeutschland.17 Es wird argumentiert, dass die Wirtschaft der neuen Länder von negativen Effekten der Erweiterung nur in abgeschwächtem Maße betroffen sein wird: Die Handelsintegration ist weitgehend abgeschlossen, die Zuwanderung wird sich vor allem auf die Ballungszentren Westdeutschlands richten, und Direktinvestitionen sind häufig komplementär zu Investitionen im Inland, verdrängen also heimische Produktion nicht. Problematisch ist allerdings, dass man in Ostdeutschland kaum vorbereitet ist, die Chancen der Erweiterung zu nutzen.
Read article
East German exports still show high dynamics in first half of 2001
Ingrid Haschke
Wirtschaft im Wandel,
No. 16,
2001
Abstract
Since last year, growth has weakened sharply in most regions of the world, accompanied by a marked decline in world trade growth. There was a significant impact on demand and activity in the industrial countries. In contrast to that the data indicate increasing east German exports of goods. In the first half of 2001 the exports of the new states rose sharply by around 25% compared with the period of the previous year and the share of exports in GDP rose.
The export structure by regions has changed over time. At the beginning of the nineties the main customers of east German exports were still central and eastern Europe. Now almost half of the goods are delivered to EU-countries. Cars and electrical engineering products are the main export goods with a share of around 30%.
Read article
Effects of the new vote weighting system at EU Council of Ministers on structural fond resources for new members
Martina Kämpfe, Johannes Stephan
Wirtschaft im Wandel,
No. 2,
2001
Abstract
At the recent Nice summit, the EU council of ministers decided on institutional adjustments for the European Union. Such reforms are of particular importance for an enlarged European Union in which up to 27 new members could participate. Amongst the reforms, two decisive changes concern the distribution of votes in an enlarged council and additional conditions which will be attached to majority decisions.
This redistribution of power within the council will effect in particular economic issues, as e.g. the size and distribution of structural funds budgets to be expected upon admittance as EU-member states. Such effects can be estimated by use of models of probability of coalition-building. The model used here predicts that the budget for structural funds for the ten accession countries will be lower than would have been under the old voting power regime. This highlights that the accession group in Central East Europe lost relative voting power via coalitions in comparison to the voting regime prior to Nice. Solely Poland enjoyed an increase in voting power which also suggests an increase in budgets Poland can now expect to receive in the framework of EU structural funds policy.
Read article
Hungarian economic growth marked by imbalances: A new problem with the twin deficit?
Johannes Stephan, Werner Gnoth
Wirtschaft im Wandel,
No. 8,
1999
Abstract
Der Artikel beschäftigt sich mit dem Problem Ungarns, auf einen makroökonomisch stabilen Wachstumspfad einzuschwenken. Seitdem im Jahre 1994 die Entwicklungen des Haushaltsbudgets und der Leistungsbilanz das Land an den Rand einer Krise brachte, wird der weiteren Entwicklung des ungarischen “Zwillingsdefizits“ besondere Beachtung geschenkt. Die Analyse der sich seit 1998 wieder intensivierenden Instabilitäten deutet auf neue Ursachen, welche in ihrer Wirkungsdauer meist nur beschränkt sind und in der Wirtschaftsplanung weitgehend antizipiert wurden. Damit ist aus heutiger Sicht eine erneute krisenhafte Entwicklung in Ungarn nicht zu erwarten.
Read article
EU structural fond: Allocation of funds to new members not automatically
Martina Kämpfe
Wirtschaft im Wandel,
No. 10,
1997
Abstract
Der absehbare Beitritt mittelosteuropäischer Transformationsländer zur EU läßt nach den bisherigen Schätzungen zur finanziellen Förderung hohe Kosten für den Gemeinschaftshaushalt erwarten. Die Förderung ist jedoch kein Automatismus, sondern war auch bisher das Ergebnis eines Verhandlungsprozesses. Bei der Schätzung zukünftiger Transfers müssen sowohl die flexibel gestaltbaren Richtlinien der EU zur Mittelvergabe als auch die Absorptionsfähigkeit der neuen Mitgliedsländer berücksichtigt werden. Unter diesen Voraussetzungen könnten die zu erwartenden Ausgaben bereits im Rahmen der gegenwärtigen Strukturpolitik sehr viel geringer ausfallen als bisher öffentlich diskutiert wurde. Eine entsprechende Schätzung für Polen ergibt, daß die Ausgaben anstelle von bisher geschätzten 5 bis 7 Mrd. ECU pro Jahr nur 1,5 bis 3 Mrd. ECU betragen könnten.
Read article