EU Revision: Challenges facing Eastern European Economies

The EU single market has enlarged on several occasions – the most recent being 2004 (ten new countries) and 2007 (two new countries). For many countries of ‘New Europe’ the accession into the EU has been an event of major economic and political importance.

Enlargement occurred during a period of strong economic growth (driven by fast-growing exports in an era of globalisation) and low inflation and interest rates. One can argue that this was an opportune time to widen the single market – macroeconomic conditions were favourable.

But progress made by new EU members has not been even – most have achieved a degree of income convergence and have managed to bring down unemployment levels. But there have also been underlying problems – notably property bubbles, rising inflation and the effects of depopulation as migrant workers from central and eastern European countries in particular moved west in search of work and higher incomes.

From late 2007 onwards the global credit crunch and ensuing international slowdown and recession has hit the EU hard. The Euro Area is export dependent (more so than the USA) and economic and financial difficulties have spread into many of the new member states.

This three page revision note is designed for students preparing for their EU paper this June.
EU_Revision_Eastern_Europe.pdf

Unit 2 Macro: The Current Account of the Balance of Payments [20 May 2012]
Revision notes on unemployment [20 May 2012]
Unit 2 Macro: Bank Cuts UK growth Forecast for 2012 [16 May 2012]
Grexit - Andrew Balls on Greece and the Euro [16 May 2012]
Unit 2 Macro: Model answer for revision data question [9 May 2012]
Made in China - but not quite so cheaply…... [7 May 2012]
Unit 2 Macro: 10 Key Revision Topics for EdExcel [7 May 2012]
Unit 2 Macro: Monetary Policy and Inflation Glossary [5 May 2012]
Unit 2 Macro: Trade and Balance of Payments Glossary [5 May 2012]
Macro Revision - Key Statistics on the UK Economy [4 May 2012]
Unit 1 Micro: Using the Cost-Benefit Principle [30 Apr 2012]
Macro Revision: Putting Things in Context [29 Apr 2012]
Unit 4 Macro: The Euro Zone Crisis (Revision) [22 Apr 2012]
Unit 4 Macro: Globalisation Revision Quiz [14 Apr 2012]
Unit 2 Macro: Globalisation and the Growth of Ports [10 Apr 2012]
Unit 2 Macro: Revision on Interest Rates and the Exchange Rate [3 Apr 2012]
Unit 4 Macro: Productivity Improvements in China [3 Apr 2012]
Unit 4 Macro: Pain in Spain as Fiscal Austerity Bites [1 Apr 2012]
Unit 3 Micro: EU Imposes Further Price Cap on Mobile Phone Companies [29 Mar 2012]
Life in the Slow Lane - UK Growth in 2011 Lags the Euro Area [28 Mar 2012]
George Buckley at the Millfield Economics Society [28 Mar 2012]
Beyond the Bike - Monetary Policy in Africa [28 Mar 2012]
Unit 4 Macro: Video Resources on the Euro Crisis [10 Mar 2012]
Unit 4 Macro: Enlarging the EU [9 Mar 2012]
Unit 2 Macro: Policies to Drive Economic Recovery [9 Mar 2012]
Unit 2 Macro: News Videos on the German Economy [9 Mar 2012]
Unit 2 Macro: Might Oil Prices Bring another Recession? [4 Mar 2012]
Pinterest: Board on Developments in the EU Economy [19 Feb 2012]
Unit 4 Macro: King on the UK Economy [15 Feb 2012]
Unit 2 Macro: China’s Trade Engine is Spluttering [10 Feb 2012]
Martin Wolf on Global Shocks [10 Feb 2012]
Trucks are the new way of measuring debt [1 Feb 2012]
Unit 4 Macro: Russia Joins the WTO [22 Jan 2012]
Unit 4 Macro: France loses her AAA credit rating [15 Jan 2012]
Unit 1 Micro: Low Cost Airlines Beat the Recession [1 Jan 2012]
Unit 4 Macro: Exchange Rate Economics - Where next for the US Dollar? [31 Dec 2011]
European Economics: Resources on the CAP [28 Dec 2011]
Unit 2 Macro: Brazil Overtakes UK in Economic Size [26 Dec 2011]
The Eurozone Crisis Explained (again!) [22 Dec 2011]
Great Economics Blog to Follow - Danny Quah [15 Dec 2011]
Unit 4 Macro: Celebrating (?) Ten Years of Euro Notes and Coins [2 Dec 2011]
Jim O’Neill - The Growth Map: Economic Opportunity in the BRICs and Beyond [22 Nov 2011]
Beyond the Bike - The Value of Money [19 Nov 2011]
Unit 2 Macro: Should the EU introduce a Tobin Tax? [14 Nov 2011]
AS Macro: The State of British Business [13 Nov 2011]
Eurozone crisis - a selection of resources [12 Nov 2011]
Economics Resources - Week Ended 6 November 2011 [6 Nov 2011]
Unit 4 Macro: China and India - Notes from Martin Wolf [6 Nov 2011]
Tour of the US income distribution – “The L Curve” [25 Oct 2011]
Why Is Macroeconomics Such A Mess? [11 Oct 2011]
Unit 4 Macro: When China Met Africa [1 Oct 2011]
Unit 4 Macro: EU proposes a “Tobin Tax” [28 Sep 2011]
Greek debt decision tree [25 Sep 2011]
Unit 4 Macro: Greek Economy at Default’s Door [25 Sep 2011]
Unit 2 Macro: Greece on the Brink of Default [25 Sep 2011]
Unit 4 Macro: IMF Flags up Risks of Double Dip [20 Sep 2011]
Unit 4 Macro: Bangladesh and Comparative Advantage in Textiles [19 Sep 2011]
Unit 4 Macro: Progress towards Millennium Goals [12 Sep 2011]
Unit 4 Macro: Inequality and Development [12 Sep 2011]
Starter Video: The Slums of Manilla [11 Sep 2011]
Mixing with the Nobel Economists [4 Sep 2011]
Slicing up the Apple - globalisation graphic [22 Aug 2011]
hiphopnomics [31 Jul 2011]
Where there’s muck there’s brass [6 Jul 2011]
AQA ECON4 Context [20 Jun 2011]
Six Global Trends Shaping Business Strategy [15 Jun 2011]
Not so much food inflation, but food hyperinflation! [30 May 2011]
PIIGS on the chopping block? [24 May 2011]
AS Macro Key Term: Recession [23 May 2011]
AQA A2 Economics - European Context [23 May 2011]
EU Economics: Comparing the UK with Europe [14 May 2011]
Interest Rates Held at 0.5% once again [5 May 2011]
A2 Macro: Chinese investment in the EU [3 May 2011]
AS Micro: Rising Global Food Prices [2 May 2011]
Video Clips on the Chinese Economy [1 May 2011]
EU Enlargement - Evaluating the Impact [30 Apr 2011]
A2 Micro: EU Aviation - State Aid and State Ownership [28 Apr 2011]
AS and A2 Macro Revision: The China Effect [26 Apr 2011]
Soap powder cartel leaves stain on colluders [13 Apr 2011]
Focus on Ireland’s Economy [12 Apr 2011]
OCR F585 June 2011: Euro Area on the Rocks? [11 Apr 2011]
AS Macro Key Term: Monetary Policy Tightening [11 Apr 2011]
AS Micro: The volatile price of crude oil [9 Apr 2011]
A2 Macro: Paul Mason’s blogs on the Euro Crisis [7 Apr 2011]
ECB breaks rank and raises interest rates [7 Apr 2011]
EU Economics - Portugal Reaches for Bail Out [6 Apr 2011]
Focus on Poland [5 Apr 2011]
Tutor2u Visits Madrid! [4 Apr 2011]
A2 Micro: Updates on Competition Issues [2 Apr 2011]
AS Macro Key Term: Relative deflation [2 Apr 2011]
OCR F585 June 2011: Competitiveness [31 Mar 2011]
OCR F585 June 2011: Data Charts (2) [30 Mar 2011]
OCR F585 June 2011: Data Charts [30 Mar 2011]
Poor human capital in Portugal [25 Mar 2011]
The New North - Population Shift [23 Mar 2011]
Timetric: Currency movements against the Euro [16 Mar 2011]
Focus on Spain [16 Mar 2011]
Global supply chain threatened by Japanese disaster [16 Mar 2011]
Timetric: Comparative prices in the EU single market [15 Mar 2011]
EU Economics - Video Resources for Teaching [15 Mar 2011]

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