Lecture on European Economics

Winter semester 2018-19

Course Content

I. Main elements of the EU Single Market

  • Corner stones in European integration, institutions, legislative procedure.
  • Static welfare effects of free trade and customs Union.
  • Free-trade agreements; global value chains. 
  • Static welfare effects of labour mobility.
  • Migration in the European union – qualification, job allocation and job match.
  • Capital mobility, technological progress and growth. 
  • EU competition policy – rationale and Instruments.
  • Potential output and output gaps – concept, production function approach, structural unemployment rate, growth Accounting.

II. Monetary union and financial markets

  • Pros and cons of a common currency.
  • The 2008 financial crisis - characteristics, forces and costs.
  • EU Banking Union – rationale, institutions, key issues.
  • The European Monetary System (EMS) – basic Features.
  • The Euro System – entry conditions and structure.
  • Monetary policy in the euro area - main transmission channels, instruments and policies.

III. Fiscal Policy and governance

  • Government balances and debt - key definitions, debt dynamics and cyclical adjustment.
  • Fiscal policy - consolidation challenge and policy Impact.
  • Fiscal governance in the EU – rationale, fiscal surveillance tools and their limitations, no-bail-out clause and credibility.

IV. Economic performance and surveillance

  • Europe-2020 targets, macroeconomic imbalances procedure, structural reform surveillance.

The course material can be found on ILIAS (for registered students).

Lecture & Tutorial Dates

Lecture dates and rooms as written below:

First Block, November 2018 :DateTimeRoom
Tuesday 06.11.201813:30-15:00L602
Tuesday 06.11.201817:00-18:30F420
Wednesday 07.11.201813:30-15:00D301
Second Block, January 2019 :
Tuesday 08.01.2019 17:00-18:30F420
Wednesday 09.01.2019 17:00-18:30E402
Thursday 10.01.2019 15:15-16:45E402


Registration to the exam requires preparation of written answers on two papers.