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Is the ‘European Model’ viable in a globalized world?

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The issue of whether the ‘European model’ is viable in a globalized world raises the question as to what defines and conditions any European model and its competitiveness in the context of globalization and the new economy. For the sake of sustainability of its model but also to sustain support for globalization the European Union (EU) needs to take economic advantage of globalization and the knowledge-based economy. Challenges in a high-cost, high-productivity economy mean that there is a premium on dynamic efficiency gains from the liberalization and reform of markets and an economic and institutional framework that fosters innovation and flexible adjustment. The paper examines how the EU deals with governance issues and political economy factors from this perspective. The EU model, if able to legitimize itself with respect to the European integration process may as well contribute to a legitimate political governance of globalization.

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Paper provided by NIPE - Universidade do Minho in its series NIPE Working Papers with number 20/2007.

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Date of creation: 2007
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Handle: RePEc:nip:nipewp:20/2007

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Keywords: Globalization; Liberalization; European regulatory model and economic integration; Preferential trade; Global and European Governance; European Union; Single Market; Lisbon Agenda.;

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  1. Juan Delgado, 2006. "Single market trails home bias," Policy Briefs 38, Bruegel.
  2. Olivier Blanchard, 2004. "The Economic Future of Europe," NBER Working Papers 10310, National Bureau of Economic Research, Inc.
  3. Jeffry Frieden, 2006. "Will global capitalism fall again?," Essays and Lectures 16, Bruegel.
  4. Philippe Aghion, 2006. "A primer on innovation and growth," Policy Briefs 233, Bruegel.
  5. Annette Bongardt, 2005. "Competition Policy and EU Governance," Working Papers de Economia (Economics Working Papers) 28, Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.
  6. Blanchard, Olivier J & Giavazzi, Francesco, 2001. "Macroeconomic Effects of Regulation and Deregulation in Goods and Labour Markets," CEPR Discussion Papers 2713, C.E.P.R. Discussion Papers.
  7. Francisco Torres & Annette Bongardt, 2007. "Institutions, Governance and Economic Growth in the EU: is there a role for the Lisbon Strategy," NIPE Working Papers 19/2007, NIPE - Universidade do Minho.
  8. André Sapir & Alan Ahearne & Jean Pisani-Ferry & Nicolas Véron, 2006. "Global governance: an agenda for Europe," ULB Institutional Repository 2013/8104, ULB -- Universite Libre de Bruxelles.
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