INTERNATIONAL BURCH UNIVERSITY
FACULTY OF ECONOMICS
EU INTEGRATION AND BOSNIAN ECONOMY
Duration: 60 minutes GRADE :......
MAKE-UPII EXAM QUESTIONS
I Answer the following questions (5 points each)
- What is a Stabilisation and Association Agreement (SAA)?
A far-reaching contractual relationship with the EU, entailing mutual rights and obligations
- When can negotiations between the EU and a potential member state be officially opened?
Membership negotiations cannot start until all EU governments agree, in the form of a unanimous decision by the EU Council, on a framework or mandate for negotiations with the candidate country.
- Describe next chapters of the acquis
- Transport policy
EU transport legislation aims at improving the functioning of the internal market by promoting safe, efficient and environmentally sound and userfriendly transport services.
- Taxation
The acquis on taxation covers extensively the area of indirect taxation, namely value-added tax (VAT) and excise duties.
- Statistics
The acquis in the field of statistics requires the existence of a statistical infrastructure based on principles such as impartiality, reliability, transparency, confidentiality of individual data and dissemination of official statistics.
- What are the limits set by Stability and Growth Pact related to budget deficit and government debt?
Budget deficit less than 3% of GDP
Government debt less than 60% of GDP
- What is the accession treaty and when it is final and binding?
The document that cements the country's membership of the EU. It contains the detailed terms and conditions of membership, all transitional arrangements and deadlines, as well as details of financial arrangements and any safeguard clauses.
It is not final and binding until it:
a. wins the support of the EU Council, the Commission, and the European Parliament
b. is signed by the candidate country and representatives of all existing EU countries
c. is ratified by the candidate country and every individual EU country, according to their constitutional rules (parliamentary vote, referendum, etc.).
- Define an acceding country?
Once the treaty is signed, however, the candidate becomes an acceding country. This means it is expected to become a full EU member on the date laid down in the treaty, providing the treaty has been ratified.
- Name three official EU candidate countries
A. Iceland
B. Serbia
C. Montenegro, Macedonia, Turkey
- Name Mundell’s criteria?
Labour mobility
Openness with capital
Wage and price flexibility
Fiscal transfer mechanism
Similar business cycles
Similar economic structures
Integrated goods markets
- Which are the problems of Serbia on its way to the EU?
Kosovo independence
War criminals
Corruption
Discrimination of minorities
- What is the European Financial Stability Facility?
EFSF is Eurozone-wide fund to remove the fear that weak Eurozone states wouldn’t be able to repay their debt.
II Choose the correct answer (3 points each)
- The Iceland became an official candidate for EU membership in ______
a)2005
b)2008
c)2010
d)1994
e)Iceland is still a potential candidate country
- Countries that are currently members of CEFTA are:
a)Macedonia, Serbia, Montenegro, BiH, Albania, Moldova, UNMIK, Croatia
b)Macedonia, Serbia, Montenegro, BiH, Albania, Moldova, UNMIK
c)Bulgaria, Romania, Macedonia, Serbia, Montenegro, BiH, Albania, Moldova, UNMIK, Croatia
d)Poland, Hungary, Czech and Slovak Federative Republic
- Who was blocking the EU accession of Croatia?
- Bosnia and Herzegovina
- Italy
- Serbia
- Slovenia
- All the above
- Which country didn’t have a bailout program during last economic crises?
a)Greece
b)Ireland
c)Cypress
d)Portugal
e)None of the above
- Find the intruder
a)Albania
b)Serbia
c)Kosovo
d)Bosnia and Herzegovina
III Write an essay (200 words minimum) (35 points)
a)Opinion of European Commission given in progress report of BiH for 2012
Political criteria
a. Democracy and the rule of law
The Federation’s Constitution entails costly and complex governance structures with certain overlapping competences between the Federation, the Cantons and the municipalities
The Constitution of Bosnia and Herzegovina prevents citizens who do not declare themselves as one of the three constituent peoples (Bosniak, Serb and Croat) from standing as candidates for the Presidency and the House of Peoples of the Parliamentary Assembly (Sejdic – Finci case)
Little progress has been made in the area of public administration reform.
There was limited progress in the area of judicial system reform.
Bosnia and Herzegovina has made limited progress in addressing corruption, which continues to remain widespread in the public sector and the public-private interface.
b. Human rights and the protection of minorities
The implementation of human rights standards remains uneven and delays in reporting obligations have continued. It remains essential to implement the ECHR (European Court of Human Rights) judgment in the Sejdic-Finci case in order to comply with the ECHR
Intimidation and threats against journalists and editors have continued. Political pressure on the media and the polarisation of the media along political and ethnic lines remain of concern.
Ethnically based and divided education systems remain an obstacle to achieving inclusiveness in education and to sustainable returns. The implementation of the anti-discrimination law remains to be stepped up. Discrimination against LGBT persons remains widespread.
The Roma continue to be the most vulnerable minority in Bosnia and Herzegovina.
c. Regional issues and international obligations
The country has continued to participate actively in regional cooperation and to maintain good neighborly relations. The remaining border and property issues need to be addressed and legal obstacles to extradition with neighboring countries removed.
2. Economic criteria
a. The existence of a functioning market economy
The consensus on economic and fiscal policy essentials has weakened and hampered progress in reforms at country level.
Economic recovery gained some momentum in 2011 but this positive trend was reversed in early 2012.
Labour market conditions have remained weak. Unemployment is very high and structural rigidities continue to hamper job creation.
The currency board has continued to function well and monetary and financial stability have been preserved while inflation has moderated.
Planned privatisation process has not advanced for the fourth consecutive year.
Significant administrative barriers remain for private-sector development.
Weak rule of law, corruption and unreliable contract enforcement continue to impair the business environment
b. The capacity to cope with competitive pressure and market forces within the Union
functioning of market mechanisms remains hampered by the large government sector,
characterised by low spending efficiency and sizeable interference in the economy.
3. European Standards
a. Internal market
There was some progress on free movement of goods
No progress can be reported on movement of persons.
No progress can be reported on the free movement of capital
Little progress can be reported in the field of education
Progress was made in the negotiations for accession to the World Trade Organisation (WTO).
b. Sectoral policies
Little progress in industrial policy, SME policy, agriculture and rural development policy, fishery, area of GMO’s, in the field of environment and climate change, information technologies…
c. Justice, freedom and security
Progress was made in the areas of visa, border management, asylum and migration
Bosnia and Herzegovina is implementing the strategy and action plan for the prevention of money-laundering and financing of terrorist activities
little progress in the fight against drug trafficking
Implementation of the police reforms is continuing.
The country remains a source of arms and ammunition for criminal groups in the EU.
Organised crime activities are also linked to the transit of drugs on international trafficking routes.
preparations for personal data protection are advancing, although still at an early stage