CH7 EU_relocation_and_restructuring - The EUs approach to...

This preview shows page 1 - 2 out of 3 pages.

The EU’s approach to relocation and restructuring. (1996-2002 - Summary of reports - ECN331A) Relocation and restructuring of industry and services are permanent features of the Union. However the coincidence of a number of critical developments in the Union makes restructuring a particular political and economic issue at this point in time. These developments are the development of the Single Market (an Internal Market) in the context of high unemployment and the aftermaths of the past march for convergence (1990-1999), and huge increases in the stocks and flows of Foreign Direct Investment made convenient by liberalized capital markets. Technological and organizational changes which make it easy for value added chains to be split and distributed across the world , contribute further to extend the pace and impact of restructuring and relocation. The extent of the impact of restructuring and relocation, on the operations of the Union, and on the tasks assigned to it under its Treaty obligations, adds further significance to the issue. The issue impinges on the Union’s activities from competition and concerns for its distortions in the global arena, trade policies, tax and fiscal policies, currency stability, to employment and environmental issues. The EU’s approach to relocation and restructuring would also determine the operational effectiveness of the Union’s own and ongoing key policies and instruments. These would include the use of Community support frameworks, the distribution and effectiveness of the Structural Funds, environmental policies, Trans European Networks, and the positions the EU takes in its international trade negotiations and its relations with key players like the WTO, the World Bank, the ILO, and US and ASEAN countries. Relocation and restructuring not only raise issues for policy consideration based on the EU’s competence for global subsidiarity , it also raises questions of the effectiveness in EU-programmes in areas such as regional, industry, competition, trade, environment and employment policies. The Union has an obligation to act to ensure that the impulses generated from, and caused by, its own central position in the relocation and restructuring process within the EU and globally, are put to effective and managed use in the interests of the Union and its citizens . Political action by the EU must concentrate on those areas where intervention can be effective and work at the appropriate level of subsidiarity. At the global level the need for a new approach in international trade-and investment-policy should be a key priority: a shift from a relatively narrow focus on growth and preservation of free trade and investment, to the more complex goal of sustainable development is overdue.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture