RESUME 4 «The European region: features of economic models of the countries of the Europe and EU»
The theme is devoted to studying of features of economy of the countries of the Europe, first of all the European union. The West-European economic model is most социальнонаправленной in the world economy, i.e.
provides a state policy of improvement of quality and a standard of living of the population, including high charges of the state on social sphere: formation, medicine, culture, etc.The public sector in the European countries - the highest in the world (except for the Great Britain), in the sizes and structure differs from the USA and Japan. The share of the State expenditure in gross national product reaches 50 %, in the USA and Japan - 20 % and 34 %, accordingly. In lecture features of economic models of Germany, France, Italy and the Great Britain are considered.
In Germany strongly pronounced postindustrial economy; the powerful state, which relative density of the budget in gross national product exceeds 50 %; precise social orientation of economy, a low level of foreign investments, strong integration of German economy in world; subsidizing by the state of unprofitable branches: coal, steelmaking, ship-building industries and an agriculture; High level of export of the capital in other countries with softer tax system and a cheap labour; the high rate of unemployment averaging on years - more than 10 % of able-bodied population.
Germany's affluent and technologically powerful economy - the fifth largest in the world in PPP terms - showed considerable improvement in 2007 with 2.6% growth. After a long period of stagnation with an average growth rate of 0.7% between 2001-05 and chronically high unemployment, stronger growth led to a considerable fall in unemployment to about 8% near the end of 2007. Among the most important reasons for Germany's high unemployment during the past decade were macroeconomic stagnation, the declining level of investment in plant and equipment, company restructuring, flat domestic consumption, structural rigidities in the labor market, lack of competition in the service sector, and high interest rates.
The modernization and integration of the eastern German economy continues to be a costly long-term process, with annual transfers from west to east amounting to roughly $80 billion. The former government of Chancellor Gerhard SCHROEDER launched a comprehensive set of reforms of labor market and welfare-related institutions. The current government of Chancellor Angela MERKEL has initiated other reform measures, such as a gradual increase in the mandatory retirement age from 65 to 67 and measures to increase female participation in the labor market. Germany's aging population, combined with high chronic unemployment, has pushed social security outlays to a level exceeding contributions, but higher government revenues from the cyclical upturn in 2006-07 and a 3% rise in the value-added tax pushed Germany's budget deficit well below the EU's 3% debt limit. Corporate restructuring and growing capital markets are setting the foundations that could help Germany meet the long-term challenges of European economic integration and globalization, although some economists continue to argue the need for change in inflexible labor and services markets. Growth may fall below 2% in 2008 as the strong euro, high oil prices, tighter credit markets, and slowing growth abroad take their toll.France is in the midst of transition from a well-to-do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms. The government has partially or fully privatized many large companies, banks, and insurers, and has ceded stakes in such leading firms as Air France, France Telecom, Renault, and Thales. It maintains a strong presence in some sectors, particularly power, public transport, and defense industries. The telecommunications sector is gradually being opened to competition. France's leaders remain committed to a capitalism in which they maintain social equity by means of laws, tax policies, and social spending that reduce income disparity and the impact of free markets on public health and welfare. Widespread opposition to labor reform has in recent years hampered the government's ability to revitalize the economy.
In 2007, the government launched divisive labor reform efforts that will continue into 2008. France's tax burden remains one of the highest in Europe (nearly 50% of GDP in 2005). France brought the budget deficit within the eurozone's 3%-of-GDP limit for the first time in 2007 and has reduced unemployment to roughly 8%. With at least 75 million foreign tourists per year, France is the most visited country in the world and maintains the third largest income in the world from tourism.Italy has a diversified industrial economy with roughly the same total and per capita output as France and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Italy has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Unions and has benefited from lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. Italy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions. But the leadership faces a severe economic constraint: Italy's official debt remains above 100% of GDP, and the government has found it difficult to bring the budget deficit down to a level that would allow a rapid decrease in that debt. The economy continues to grow by less than the euro-zone average and growth is expected to decelerate from 1.9% in 2006 and 2007 to under 1.5% in 2008 as the euro-zone and world economies slow.
The UK, a leading trading power and financial center, is one of the quintet of trillion dollar economies of Western Europe.
Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. Since emerging from recession in 1992, Britain's economy has enjoyed the longest period of expansion on record; growth has remained in the 2-3% range since 2004, outpacing most of Europe. The economy's strength has complicated the Labor government's efforts to make a case for Britain to join the European Economic and Monetary Union (EMU). Critics point out that the economy is doing well outside of EMU, and public opinion polls show a majority of Britons are opposed to the euro. The BROWN government has been speeding up the improvement of education, health services, and affordable housing at a cost in higher taxes and a widening public deficit.Rather low relative density of the state in the economy, gross national product of the country giving about 20 %; the state is the largest investor in an innovative complex; a low rate of unemployment; low inflation, a low level of the profit tax of corporations and individual surtax; a favorable investment climate.
Further stages of integration of the countries in EU are stated. In structure of EU of 27 countries, within the limits of EU «the zone of euro», the including 13 countries-members is created: France, Germany, Italy, Belgium, the Netherlands, Luxembourg, Ireland, Greece, Spain, Portugal, Austria, Finland and Slovenia (with 2007). Problems in attitudes of Russia and EU at the present stage are shined also.