The Deepening of the EUs Economic Integration and Restructuring of its Trade and Industrial Policy

There have appeared two characteristics in the recent world economic trend: one is globalization and the other regionalization. With the Urguay Round resolved and the World Trade Organization established, multilateral free trade without national frontiers has come into existence, while a division of the world market by regional integration has also been in full process. The EU seems to more accelerate the regionalization trend of the world economy than any other region. The EU completed market integration in 1993 by the Single European Act. And going beyond the Common Market level, it is entering a new phase seeking harmonization in public finance, monetary and financial policies. Therefore, this paper is to study the process of deepening of the EUs integration and to review what its trade and industrial policies would be like. First, from the above point of view, this paper is to study a possibility of political integration, a long term objective of the EU that is closely connected with the economic integration. The integration movement of the EU, which can be termed as a neofunctionalism, has taken place over the long period of time, focussing on the unification and harmonization in public finance, monetary and financial policies, and trade and industrial policies. As a matter of fact, this process had considerably increased political cooperation. In particular, due to the currency integration through the Maastricht Treaty, the integration movement has been directed to the federal approach. This approach is expected to intensify the possibility of the EU"s political integration. In regard of trade policy, its study focussed on whether the EUs policy will be directed more toward free trade or protectionism. Trade policy will be more centralized through the Maastricht Treaty, while due to the effectuation of the EEA treaty, it will be gradually more European, thus strengthening probably discriminatory practices toward non-European regions. Therefore the EUs basic trade policy will push forward with free trade on the one hand, but it will tilt to block-oriented tendency on the other hand. EUs industrial policy is based on the principles of reciprocal recognition and of institutional harmonization together with the application of the principle of subsidiarity. It aimes to stengthen competitive power of EU industries at the global level by fostering competition envirnment among regions, industries, and enterprises and by fostering the cooperation among relevant parties. The EU is focussing its energy on sterengthening of industrial regional network of member states and thus restructuring its industries to stimulate the indogeneous power of market. As a matter of fact, the integration of EUs market has made a great contribution to the European industries and its enterprises. The contribution varies according to industry, strategy, and degree of globalization. Looking closely into their typology, medium-sized and big-sized enterprises operating supra nationally in Europe are most affected. In general, most of enterprises are positive in the deepening of competion through the integration of markets and are ready to more dynamically develop markets and to prepare active countermeasures by seeking new markets and at the same time by merger and undertakings of enterprises