This paper explores the East-West dichotomy of outsourcing in the European Union in the context of its 2004 eastward enlargement. The purpose of the study is to shed light on the connection between outsourcing and the causal logic of regional integration. The conventional view is that the transfer of business operations from Western Europe to low-cost locations to the east represents a process of outsourcing West-European jobs which deprives the EU core of growth opportunities to the exclusive benefit of the new members from Eastern Europe. This analysis posits the systemic functions of EU outsourcing as a mechanism of economic homogenization in the regional market along its three principal dimensions: investment, commodity trade, and labor mobility. At the macro-level, outsourcing complements capital movements and trade, and acts as a substitute for labor mobility. Keeping labor mobility “down” is the main value added of EU outsourcing. Empirically, its relevance to the regional market is established in an input-output framework of relationships with indicators of economic convergence (homogenization effects) and labor mobility (substitution effects) in the EU. Positive correlations with indices of business synchronization and weak negative correlations with measures of labor supply and wages suggest that outsourcing fits well both with strategies fostering market integration and those counterbalancing the politically sensitive labor mobility in the EU. There is no significant evidence to suggest that, at the aggregate level, outsourcing has independent substitution effects with regard to unemployment rates and wages in Western Europe. The geographic expansion of EU integration, therefore, is not a proxy for losses of social welfare in the West. The paper concludes that as the cost efficiency and resource allocation functions of outsourcing facilitate the homogenizing dynamics of regional integration, it is likely to become increasingly subsumed under EU-level regulation and monitoring in a trade-off between the regional interest and domestic sectoral concerns.

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This paper examines the relationship between European integration and ethnonational demands with the example of selected regions in the European Union (EU). It follows the theoretical premises of new regionalism and explores the ways in which ethnonational groups use the opportunities and resources of European governance to express their identities, material interests, and political demands. Methodologically, it conducts a plausibility probe of the potential effects of European integration on ethnonationalism by testing for regional differences in identities, interests, and political attitudes. The case studies are drawn from the UK (Wales and Scotland), Belgium (Flanders), Austria (Carinthia and Burgenland), Romania (Northwest and Center regions), and Bulgaria (South-Central and South-Eastern regions) as a representative selection of regional interests in the EU. The paper finds that European integration affects ethnonational groups by reinforcing identity construction in the direction of inclusiveness and diversity. Although regional actors are more supportive of the EU than the European publics in general, they also seek access to representation in the authority structures of the state. Based on these findings, the paper concludes that European integration facilitates a growing public acceptance of its resources, in parallel with persisting allegiances to the nation-state, the community, and ethnoregional distinctiveness.

The political integration of ethnic minorities is one of the most challenging tasks facing the countries of post-communist europe. The roads to their political representation in the mainstream political process are numerous and diverse. The eU accession of the Central and east european countries has expanded the scope of the political participation of minorities by adding an electoral process at the regional level: the elections for members of the european Parliament. This article presents a comparative study of the ways in which eU-level electoral processes affect the scope and quality of minority representation on the example of the participation of ethnic political parties in Bulgaria and Romania in the 2007 and 2009 electoral cycles of the european Parliament.