Part I - History, Facts and Institutions Chapter 1. History 1.1 Early post-war period 1.2 Two strands of European integration: federalism and intergovernmentalism 1.3 Evolution to two concentric circles: the domino effect part I 1.4 Euro-pessimism 1.5 Deeper circles and the domino effect part II: the Single Market Programme and the EEA 1.6 Communism''s creeping failure and spectacular collapse 1.

7 Reuniting East and West Europe 1.8 Preparing for eastern enlargement: a string of new treaties 1.9 Global and Eurozone crises and institutional responses 1.10 The rise of Euroscepticism 1.11 Summary Self-assessment questions References and further reading Chapter 2. Facts, law, institutions and the budget 2.1 Economic integration in the EU 2.2 EU structure pre- and post-Lisbon 2.

3 EU law 2.4 The ''Big-5'' institutions 2.5 Legislative processes 2.6 Some important facts 2.7 The budget 2.8 Summary Self-assessment questions References and further reading Chapter 3. Decision making 3.1 Task allocation and subsidiarity: EU practice and principles 3.

2 Understanding the task allocation: the theory of fiscal federalism 3.3 Economic view of decision making 3.4 The distribution of power among EU members 3.5 Legitimacy in EU decision making 3.6 Summary Self-assessment questions References and further reading Part II - The Microeconomics of European Integration Chapter 4. Essential microeconomic tools and tariff analysis 4.1 Preliminaries I: supply and demand diagrams 4.2 Preliminaries II: introduction to open-economy supply and demand analysis 4.

3 MFN tariff analysis 4.4 GVC analysis 4.5 Types of protection: an economic classification 4.6 Sources of competitiveness differences 4.7 Summary Self-assessment questions References and further reading Chapter 5. The essential economics of preferential liberalization 5.1 Analysis of unilateral discriminatory liberalization 5.2 Analysis of a customs union 5.

3 Frictional barriers: the 1992 Programme 5.4 Deep regionalism, the Eurozone and ''soft preferences'' 5.5 WTO rules 5.6 Summary Self-assessment questions References and further reading Annex: Discriminatory liberalization: small country case A5.1 Price and quantity analysis, liberalization with low-cost country A5.2 Welfare analysis: liberalization with low-cost country A5.3 Liberalization with high-cost country: supply switching A5.4 Welfare analysis: liberalization with high-cost country Chapter 6.

Market size and scale effects 6.1 Liberalization, defragmentation and industrial restructuring: logic and facts 6.2 The BE-COMP diagram in a closed economy 6.3 The impact of European liberalization 6.4 Summary Self-assessment questions Essay questions References and further reading Annex: Details on the COMP and BE curves A6.1 COMP curve in detail A6.2 BE curve in detail Chapter 7. Growth effects and factor market integration 7.

1 The logic of growth and the facts 7.2 Medium-term growth effects: induced capital formation 7.3 Long-term growth effects: faster knowledge creation and absorption 7.4 Summary Self-assessment questions Essay questions References and further reading Chapter 8. Economic integration, labour markets and migration 8.1 European labour markets: a brief characterization 8.2 Labour markets: the principles 8.3 Effects of trade integration 8.

4 Migration 8.5 Summary Self-assessment questions Essay questions References and further reading Part III - EU Micro Policies Chapter 9. The common agricultural policy 9.1 The old simple logic: price supports 9.2 Changed circumstances and CAP problems 9.3 The simple economic logic of the new CAP 9.4 CAP reform 9.5 Today''s CAP 9.

6 Remaining problems 9.7 Summary Self-assessment questions References and further reading Chapter 10. Location effects, economic geography and regional policy 10.1 Europe''s economic geography: the facts 10.2 Theory part I: comparative advantage 10.3 Theory part II: agglomeration and the new economic geography 10.4 Theory part III: putting it all together 10.5 EU regional policy 10.

6 Empirical evidence 10.7 Summary Self-assessment questions References and further reading Chapter 11. EU competition and state aid policy 11.1 The economics of anti-competitive behaviour and state aid 11.2 EU competition po.