ECONOMIC-SOCIAL COHESION, A PRINCIPLE OF INTEGRATION IN THE EUROPEAN UNION Cover Image

Coeziunea social-economica,un principiu al intergarii in Uniunea Europeana
ECONOMIC-SOCIAL COHESION, A PRINCIPLE OF INTEGRATION IN THE EUROPEAN UNION

Author(s): Mirela Minică, Florin Franţ
Subject(s): Economy
Published by: Editura Universitaria Craiova
Keywords: cohesion; integration; regional

Summary/Abstract: In fact, economic integration is a process of adjustment and structural convergence of the member economies towards a new united, homogenous and solider space, the old balances being replaced by a new network of connections generating a relatively stable balance at communitarian level. The regional disparities entail at least three major consequences: the delay and even the brake of economic growth, constitute a factor of inflation inasmuch-as the salary demands in less developed regions, compared with the developed ones, cannot be covered by a productivity increase, but only by the rise of prices, and this means high sustenance costs for the development of unfavorised areas. At macroeconomic level, the alignment to less inflationist countries obliges the partners to adopt deflationist projects, concretized in restrictive monetary politics and the reduction of public expenses. This adjustment slackens the rhythm of economic growth, decreases the budgetary state incomes, increases the deficit and brings social costs like unemployment, the movement of labor force towards developed areas, limits the possibilities of social protection. At microeconomic level, the concurrent pressure determines the companies to align themselves with the prices from the regions with low inflation or high productivity, even before the reformation and the expected progress to allow the reduction of costs.

  • Issue Year: XXXVI/2008
  • Issue No: 6
  • Page Count: 10
  • Language: English