AØKA08081U  Economics of the European Union (EU)

Volume 2016/2017

BSc programme in Economics - recommended elective from the 3.year

MSc programme in Economics – elective course



This is an introductory course on the economics of the European Union focusing on main economic and legal aspects of European integration as well as its policies. The course covers the historical development of the EU; regional cohesion, and competition policies; labor mobility and migration; the Common Agricultural Policy (CAP); monetary unification and the impact of the single currency; the common monetary policy in the euro area; and fiscal policy within a monetary union. In addition to these topics, the course also covers recent developments in the EU including the euro crisis and the policy response to the crisis.

The course is divided into three parts. The first part will cover the historical, political and institutional foundations of European economic integration including the role of the European Commission, the European Parliament and the Councils of Ministers.

The second part focuses on current issues including the euro crisis. First, we consider the micro and macroeconomic aspects of monetary integration. Starting with the theory of optimum currency areas, we analyze the economic and institutional aspects of the European Monetary Union, including the Stability and Growth Pact, Fiscal Compact and Banking Union. Then we turn to the current financial crisis in Europe focusing on the banking crises in Ireland and Spain and the Greek debt crisis. The policy responses to these crises are also discussed including the question whether these policies can resolve the crises and prevent future crises.

The third part analyzes European integration from a microeconomic perspective focusing on the effects of integration on economic growth, both at a national and a regional level. Key topics include the Common Agricultural Policy and the Rural Development and Regional Policy funded by the European Union. In addition, to these topics, we also discuss labor market policies, the European social model and flexicurity, and labor migration.

Learning Outcome

After completion of the course, students should be able to:


  • Describe the history of economic integration in Europe since 1973.

  • Explain and describe the main political and institutional characteristics of EU and the European Monetary Union.

  • Explain and describe the main problems in economic integration and with the main policies adopted by the EU.

  • Understand and explain theoretical and applied issues of the process of Economic and Monetary Union in the EU.

  • Understand and explain the role and distinctive features of labor markets in the EU.

  • Understand and explain the role and evolution of the common agricultural policy in EU.

  • Understand and explain the consequences of EU policy for the rest of the world.

  • Explain the role and institutional characteristics of the common monetary policy and of the national fiscal policies in the European Monetary Union.

  • Explain and describe the causes of and policies designed to resolve the euro crisis.


  • Be able to apply relevant macroeconomic models to the analysis of European integration and monetary union.

  • Be able to apply the theory of optimum currency area and apply this theory to the analysis of the European Monetary Union.

  • Be able to explain and apply economic growth theory and its relevance for the European Union.


  • Process relevant information for the analysis of European integration.

  • Carry out economic analysis related to current issues in Europe.


Baldwin, Richard and Charles Wyplosz: The Economics of European Integration, 5th edition, 2015.

Journal articles


Intermediate microeconomics and macroeconomics corresponding to Micro II (Micro B) and Macro II (Macro B) or the equivalent are strongly recommended. There is no formal prerequisite in mathematics/statistics, but some of the readings will involve empirical studies and prior knowledge of empirical analysis corresponding to 'Probability theory and statistics' (Econometrics A) and Econometrics II (Econometrics B) would therefore be an advantage.
The course consists of 2 hours of classes (lectures) every week and 2x2 lectures every second week for 14 weeks.
Timetable and venue:
To see the time and location of classroom please press the link under "Se skema" (See schedule) at the right side of this page (16E means Autumn 2016).

You can find the similar information partly in English at
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-E16; [Name of course]””
-Select Report Type: List
-Select Period: “Efterrår/Autumn – Weeks 30-3”
Press: “ View Timetable”
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
Individual written closed-book exam at the computers of Copenhagen University.
The exam assignment is in English and can be answered in English or in Danish. Language must be chosen at the course registration.
Exam registration requirements

Two homework assignments have to be completed and approved.

Without aids
Marking scale
7-point grading scale
Censorship form
External censorship
20% censorship
Exam period

The exam takes place December 20, 2016 at Peter Bangs Vej 36. 2000 Frederiksberg http:/​/​pc-eksamen.ku.dk/​pc_exam The exact time of the exam will be informed in the Self-Service at KUnet.

For enrolled students more information about examination, exam/re-sit, rules etc. is available at the student intranet for Examination (English),student intranet for Examination (KA-Danish) and student intranet for Examination (BA-Danish).


The written re-exam takes place February 9, 2017 at Peter Bangs Vej 36. 2000 Frederiksberg http:/​/​pc-eksamen.ku.dk/​pc_exam The exact time of the exam will be informed in the Self-Service at KUnet mid-July.

If only a few students have registered for the re-exam, the exam might change to an oral exam including the date for the exam, which will be informed  by the Examination Office.


Criteria for exam assesment

Students are assessed on the extent to which they master the learning outcome for the course.

To receive the top grade, the student must be able to demonstrate in an excellent manner that he or she has acquired and can make use of the knowledge, skills and competencies listed in the learning outcomes.

  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 161
  • Exam
  • 3
  • Total
  • 206