94470 - Political Economy Of Europe

Learning outcomes

The course offers a series of advanced analytical tools to understand European economic development as well as economic policies related to EU integration and enlargement, their political and economic prerequisites and their impact on member states. At the end of the course, students will be able to use models of political economy, institutional economics and economic analysis in order to critically evaluate the process of economic integration in Europe in the trade, monetary and financial areas.

Course contents

This course explores the economic integration of the European Union (EU) and its role in the global economy. It aims to answer two key questions: What makes an economy competitive? And what and drives economic growth?

Students begin by learning some basic economic concepts and theories, then develop a solid understanding of economic dynamics within the EU and with the rest of the world.

The course is structured in three main sections.

Section 1 - Foundations of EU integration - introduces the key concepts, theories, and historical context necessary to understand the EU's economic integration. It focuses on two central topics: the microeconomics of European integration and the economics of preferential liberalisation.

Case study 1 examines the practical application of preferential liberalisation. Beginning with an overview of the different levels of EU economic integration, it explores the UK's evolving relationship with the EU as a result of Brexit. Students will analyse the UK's role in shaping the EU, the tensions that led to the UK's decision to leave, and the Trade and Cooperation Agreement that now governs EU-UK trade relations.

Section 2 - EU Trade Policy and Competitiveness - focuses on the EU’s trade policy and the issue of competitiveness. It explores how trade policy is developed and implemented, and how it is used strategically to advance the EU’s economic and normative goals, including environmental sustainability, food security, human rights.

Case study 2 discusses the EU-Canada Comprehensive Economic and Trade Agreement (CETA), with a focus on its chapters on sustainable development and cooperation in environmental and labour standards. Students will assess how CETA supports the implementation of all ratified Multilateral Environmental Agreements and the core conventions of the International Labour Organisation.

Section 3 - Growth, Integration, and Future Challenges - explores the drivers of economic growth within the EU single market and in relation  external partners. It considers the contribution of economic integration to growth and examines future challenges such as demographic shifts, technological change, innovation, and climate change.

Case study 3 focuses on Next Generation EU (NGEU), the the EUR 750 billion recovery fund. It discusses how this initiative supports both the EU's post-pandemic recovery as well as long-term priorities, particularly the green and digital transitions.

 

Please note that this course is designed for master's-level students and assumes a foundational knowledge in economics or a related field. Exchange undergraduate students may find the material challenging without having completed the necessary prerequisite coursework or gained relevant experience.

Readings/Bibliography

 Richard Baldwin and Charles Wyplosz, The Economics of European Integration (London: McGraw Hill Education, sixth edition, 2019), chapters 1-7.

 

Mario Draghi, The future of European competitiveness. Part A: A competitiveness strategy for Europe, September 2024, 

https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en

Additional required readings and suggested further readings will be provided during the course. Other materials used in class will be made available online afterward.

The reading list varies each year and includes a range of sources, such as policy briefs, academic papers, op-eds, and podcasts.

Teaching methods

Learning will centre on lectures, class discussions, assigned reading and case studies. For each case study, students are expected to read the suggested material in advance to actively contribute to the discussion, share their insights and strengthen their analytical skills.

By the end of the course, students will be able to critically assess current policy measures and engage meaningfully in debates on Europe’s economic future within the context of a changing global economy.

Attendance at all lectures is strongly recommended, especially during the case study sessions, which provide greater opportunities for participation and the development of analytic thinking.

 

Students with specific learning disorders (DSA), or temporary or permanent disabilities, are advised to contact the appropriate University office well in advance: https://site.unibo.it/studenti-con-disabilita-e-dsa/it .

The office is responsible for proposing any necessary accommodations. These proposals must be submitted to the course instructor for approval at least 15 days before the exam date. The instructor will evaluate the request, taking into account the educational objectives of the course.

 

Assessment methods

The assessment takes place during the main exam periods (June–July, September, and January–February) and consists of two components:

• Written Exam (25%)

• Essay (75%)

Students must submit their essay at least one week prior to the written exam. Passing the written exam is required to pass the course overall. 

1.Written Exam

The written exam requires students to answer specific questions based on the course material.
Duration: 60 minutes
Weight: 25% of the final mark

2. Essay

There is no set question for the course essay. Students must choose a topic aligned with the scope of the course and submit an essay of no more than 3,000 words (excluding notes and references).

The objective is to produce a brief that is clear, analytical, and well-structured. Essays should demonstrate strong analytical skills and draw on solid evidence, engaging with course material and potentially extending beyond it.

Deadline: At least one week before the selected exam date
Weight: 75% of the final mark

 

Teaching tools

Presentations and reading material will be made available on Virtuale.

 

Course Schedule

The course is organised into three blocks, separated by two revision breaks.

 

Office hours

See the website of Paola Subacchi