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IPEEEC - ECUE European economics

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European elections take place every 5 years (the last ones in 2024). Which EU institution(s) is/are renewed after European elections?

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There are about 38M inhabitants in Poland and 19M in Romania (Poland's population is about twice Romania's population). According to the principle of degressive proportionality, in collective decisions:

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All the member States of the EU are affected by the Covid-19 pandemic. Various measures to tackle the health crisis have been (or could be) taken at different levels: e.g. the possibility to emit "Coronabonds" at the EU level, lockdown measures at the national level (e.g. France, Italy, but not Sweden in March/April 2020), and different restrictions at the level of cities (e.g. mask wearing, additional curfew measures).

What is the principle determining which is the adequate "level" to take such decisions?

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In the absence of productivity gains, and when labour is perfectly mobile, migration of workers between country L (with low level of wages) to country H (with high level of wages)

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A producer of shoes in country H considers the possibility to outsource its production in country L. While a worker from country H produces 10 shoes per day and that a worker from country L produces 5 shoes per day, the gross salary per worker in country H is 150 euros per day, and only 90 euros per day in country L.

In which country is it economically advantageous to produce shoes?

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Suppose there is a migration from country P to country R. We assume for convenience that there is a single labour market (i.e. there is no distinction between skilled and unskilled workers). Other things being equal:

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Suppose that two countries A and B start to trade together. Country A specialises in the production of good X and country B specialises in the production of good Y (meaning A exports good X, while B exports good Y).

Everything else being equal (in particular, there is no gain in productivity and no labour mobility), we can observe in country B:

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In the absence of productivity gains, and when labour is perfectly mobile, migration of workers from country L (with low level of wages) to country H (with high level of wages)

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