European Integration: Some stylised facts



member countries. With the current social benefit regulations, the contribution
of the migrant towards the production in the host country will be smaller than
the wage and social benefits received by the migrant after tax. This will result
in a welfare loss (Sinn (2000)) of the current citizens in the host country. As the
choice of destination country of the migrant in part will depend on wages and
social benefits after tax, the individual country will have an incentive to offer
the lowest social standards to make the country less attractive as a host country
compared to the other member countries. Such competition between the
members may lead to erosion of the welfare state. In order to avoid such a
development, and at the same time preserve the principle that a citizen of the
EU enjoys the same rights everywhere in the Union, it stands to reason to
harmonise the social standards of the member countries. Social policy may thus
become a new object of integration.

The above discussion of the perspectives of the future development in the EU
co-operation illustrates the three dimensions of integration: functional scope,
geographical domain, and institutional capacity (Laursen (1995)). These three
dimensions are illustrated in Figure 8.

Figure 8. The multiface of integration

Source: Own adoption based on Laursen (1995).

Integration in functional scope consists of the transfer of policy areas from
national decision making to decision making at the EU level. Integration in
geographical domain captures the geographical dimension, i.e. the area where
the rules of the integration apply. Finally, integration of institutional capacity

28



More intriguing information

1. The Institutional Determinants of Bilateral Trade Patterns
2. Delayed Manifestation of T ransurethral Syndrome as a Complication of T ransurethral Prostatic Resection
3. ISO 9000 -- A MARKETING TOOL FOR U.S. AGRIBUSINESS
4. Evaluating Consumer Usage of Nutritional Labeling: The Influence of Socio-Economic Characteristics
5. The name is absent
6. Research Design, as Independent of Methods
7. Nonparametric cointegration analysis
8. ENVIRONMENTAL POLICY: THE LEGISLATIVE AND REGULATORY AGENDA
9. The name is absent
10. Palkkaneuvottelut ja työmarkkinat Pohjoismaissa ja Euroopassa
11. BODY LANGUAGE IS OF PARTICULAR IMPORTANCE IN LARGE GROUPS
12. The name is absent
13. The name is absent
14. Forecasting Financial Crises and Contagion in Asia using Dynamic Factor Analysis
15. The name is absent
16. The name is absent
17. Estimating the Impact of Medication on Diabetics' Diet and Lifestyle Choices
18. The name is absent
19. Automatic Dream Sentiment Analysis
20. Dual Track Reforms: With and Without Losers