Woche 12

• Political stability
• Wealth is more evenly spreaded (for ex: in comparison to the US)
• Larger amount of people that are relatively wealthy = more potential customers

1. Market Capitalism
2. Managed Capitalism
3. State Capitalism

1. Market capitalism: Dominant economic system in many developed countries

• Few state companies: "State companies" refers to companies that are owned and controlled by the state or government of a country
• "Financing on the financial market": The process by which individuals, companies and governments raise capital (money) by participating on the financial markets. (government want the companies to develop)
• Opposing labor relation: In an adversarial environment, the interests of employers and employees often clash, and there is tension over wages, working conditions, benefits and other work-related matters. The state does not intervene in employer&employee relations!

(Great Britain, Ireland)

Managed capitalism - state steers and controls the market economy through regulation and intervention in order to promote social equality and economic stability.

State organize the economy- indirect support for example a proper education system

1. Indirect support for economy: Friednly environment, proper education, R&D
2. Network oriented economic model: Strong prfoessional Associations (berufliche Verbindungen) / Ties betweendifferent players in industry (Lets do this togheter mentality) / banks are included
3. "Welfare State": state system that provides financial support and protection for citizens: social transfers like old-age provision, disability, unemployment compensation, social security

(Germany, Austria, Finnland, Sweden, Denmark, Norway, Netherlands)

State capitalism refers to an economic system in which the state or government plays a significant role in controlling and managing the means of production and economic activity. Govements are involved into labor relation.

• State intervenes directly into strategic industries
• State owned companies
• Regulation of relationbetween players in the industry
• Tendency to protectionsims
• Financing

(France, Italy, Spain, Portugal, Greece)

1. EU-Comission
2. European Parliament
3. European Council
4. Counil of the European Union
5. European Court of Justice

• 27 commissioners (1 per member state)
  • Different policy areas for example: Trade, acriculture, integration etc
  • One from each member country
• President is nominated by the European Councli and confirmed by the European Parliament (Ursula Von der Leyen)
• Commission has the power to propose laws
• Commission implements laws
• Can retract proposed laws at any time
  • Unles already confirmed by the parliament of European Council

• Votes on laws proposed by the EU Comission
• For policies concerning the (interior aspects) of the European Union
• Simple majority rule
• Similar to national parliaments
• Budget
• Oversees other institutions
• Appointments
• Can adjust law proposals

Seats: Propotional to population of each country, each country gets at least 6 seats

• Legislative body
• Co-decision procedure together with the European parliament
• 27 Ministers corresponding to the issue at hand
  • Example: Export subsidies for farmers - agricultural minister
• Qualified majority voting: At least 55% of the member states must agree.
• 65% of the EU population is represented

• All 27 head of states of the EU members
• 4 metings a year to set the overall agenda
• Decisions on consens

• The European Court of Justice (ECJ) is the supreme court of the European Union (EU) and is based in Luxembourg. It plays a decisive role in the interpretation and application of EU law.
• The ECJ rules on legal disputes between EU member states, EU institutions and individuals or companies relating to issues of EU law. Its rulings have a far-reaching impact on case law throughout the EU.

European Council: Strategy - Political Guidance

European Comission: Design the ideas (administrativ) - Propose laws and budget

European Parliament: Send representatives to the parliament (legislativ body)

Council of the EU: The Council of the European Union, often referred to simply as "the Council" (Ministerrat), is a main body of the European Union (EU) which, together with the European Parliament, influences EU legislation and policy decisions.

European Court of Justice: It plays a decisive role.The ECJ rules on legal disputes between EU member states, EU institutions and individuals or companies relating to issues of EU law

The Single Market refers to the EU as one territory without any internal borders or other regulatory obstacles to the free movement of goods and services. A functioning Single Market stimulates competitionand trade, improves efficiency, raises quality, and helps cut prices

• Bigger domestic market
• Economic integration between member states
• Lower production costs (competition)
• Higher quality products (competition)
• Product standardization 

The "4 freedoms" refer to a set of principles established by the European Union (EU) in the context of European integration and the single market. These freedoms are in the contracts of the European Union and are considered fundamental principles for the free movement of goods, persons, services and capital within the EU.

Freedom of movement of:

• Goods (Waren)
• Services (Dienstleistungen)
• Capital (Kapital)
• Labour (Arbeit)

• It allows them to generate synergies
• The cluster structure dpends on the industry and on the product

They are mostly service-driven

• Trade
• Competition

• A country is classified as a "Full Democracy" if it has a strong and well-established democratic tradition. Characteristics may include a high level of citizen participation in political processes, free and fair elections, the rule of law, freedom of expression and the protection of human rights.

• A country is described as a "flawed democracy" if it has democratic elements but also serious deficits in terms of political culture, political participation, the functioning of the government or the rule of law. This could indicate restrictions on freedom of the press, unequal political participation or weaknesses in institutions.