Individual EU Member States Research Articles

Ethics in sports industry: when does sports autonomy become an excuse for animal abuse?

Abstract Money pushes sports to extremes. As the rewards for success grow, so does the pressure, with sportspeople pushing themselves ever harder. In equestrian sports, this can mean pushing the horse as well, too often to the point of abuse. This article discusses the beautiful side of equestrianism as well as its darker side, which is a bitter reality for many competition horses. It sets out a comparison of legal standards for equine animal welfare (at the level of international law, EU law and national laws) as well as those coming from sports laws. It also examines dependencies between animal protection rules under EU law and animal protection rules under the laws of individual EU Member States concerning equestrian sports. It aims to answer the questions of whether equestrian sports constitute a general exemption to their being considered animal abuse and on what grounds this exemption might be changed in the future.

ECONOMIC PARTNERSHIP UKRAINE–EU: RETROSPECT AND CHALLENGES OF FURTHER ENHANCED COOPERATION

Ukraine has been a priority partner of the EU since the signing of the Association Agreement in 2014. It was the significant financial and economic support of the EU as a whole and, in particular, of individual EU member states that became a key tool for avoiding catastrophic consequences in the financial and economic system of our country at the beginning of a full-scale war and for the current financing of the state budget deficit. Today, the European Union's support for Ukraine is extremely significant, although it is accompanied by a number of problematic issues that require an in-depth study of certain aspects of economic partnership in terms of finding ways and directions to improve the use of the potential of bilateral economic relations with the European Union as a whole and with individual EU member states.The methodological basis of the study is based on general scientific and special methods of economic theory, in particular, methods of theoretical generalization and comparative analysis for a comprehensive consideration of the research issue, and statistical methods of analysis. In the course of the study, the statistical materials of the European Union and the Ministry of Finance of Ukraine on foreign trade in goods were used.Modern scientific views on the content and prospects of Ukraine's economic partnership with the EU are studied. The key stages of the development of Ukraine's economic partnership with the European Union are summarized and schematized, with details of the areas of sectoral cooperation. The main indicators of trade relations and their role in the economies of the studied countries are analyzed. The key obstacles to further deepening of the economic partnership are substantiated, the elimination of which should be the primary goal of our country on the way to European integration.The obtained results can serve for further study of trade relations and their role in the economies of the studied countries.

COMPARATIVE ANALYSIS OF TRANSFER PRICING LEGISLATION IN THE REGULATORY FRAMEWORK OF EU MEMBER STATES

The article carries out a comparative analysis and assessment of the adequacy of legal regulation of transfer pricing in the EU Member States. The necessity and importance of studying foreign experience in building and improving the legal framework for transfer pricing is substantiated. The authors determine that the relevance of transfer pricing and related issues both in terms of ensuring the proper functioning of the single market and eliminating base erosion and profit shifting is confirmed by the existence of a special advisory body under the European Commission - the Joint Transfer Pricing Forum (JTPF), which advises the European Commission on transfer pricing taxation. The article identifies the main aspects of transfer pricing regulation in the EU Member States with a view to a detailed analysis of the regulatory framework. The criteria of related parties in the EU transfer pricing legislation are studied. It is found that a common feature in the definition of related parties is the direct or indirect influence of one person on another. The author examines and compares the grounds for conducting an audit in the EU transfer pricing legislation and finds that in the vast majority of EU Member States there is a so-called "self-assessment" regime for companies, according to which the taxpayer must ensure compliance with the transfer pricing rules; the risk factors that are relevant for conducting an audit of transfer pricing transactions are legally defined; common factors for the sample of countries studied are: unprofitability of a group of companies against the background of profitability of other entities. It is concluded that the studied foreign experience of regulatory and legal regulation of transfer pricing transactions on the example of individual EU Member States has shown a high level of unification of legislation in the field of transfer pricing, with minor differences in the provisions of the national legal framework; the differences are mainly in the systematic nature of determining the criteria of relatedness of parties in transfer pricing transactions and the grounds for conducting audit procedures on such transactions.

Kvantifikácia medziregionálnych disparít v EÚ pomocou metód beta a sigma konvergencie

This paper is focused on the examination of the development of interregional disparities in all EU member states and their regions. The aim is to confirm or refute the formulated hypothesis about the divergence of individual EU member states and their NUTS 2 and NUTS 3 level regions. The motivation for this research is the relatively extensive redistribution of financial resources of the EU 27 countries in an effort to reduce excessive and unjustified interregional differences from the aspect of the key macroeconomic aggregate – GDP. In the research we have applied the neoclassical concept of β-convergence and σ-convergence that allows identification of the convergence/divergence tendency over a long-term horizon of more than 20 years. Since the GDP is a key macroeconomic aggregate that indicates the allocation of resources to individual member states and their regions, we have conducted a long-term quantitative comparative analysis, which will allow us to fulfill the set objective and confirm or refute the formulated hypothesis. As the NUTS 2 and NUTS 3 regions are the object of interest of ESIF (European Structural and Investment Funds), it is not sufficient to carry out any analysis or comparison only at a country level, but also at a lower, regional level. Statistical data from EUROSTAT allowed us to do this for a period of 21 years, which we consider long enough to draw conclusions. The results of the beta and sigma analysis of interregional differences showed a clear, long-term, continuous divergence at all three examined levels – the level of the country, as well as at the level of NUTS 2 and NUTS 3 regions.

СУЧАСНИЙ СТАН ЦИФРОВІЗАЦІЇ КРАЇН-ЧЛЕНІВ ЄС

This article explores the present status of digitization across European Union member states. While the EU maintains common goals and overarching strategies for digitalization, individual member nations exhibit diverse levels of progress in its implementation. The asynchronous pace of digitalization among EU member states stems from various factors, including economic disparities, variations in technological infrastructure and legal frameworks, cultural and social influences, disparities in education and digital literacy, divergent government initiatives and funding levels, and the extent of collaboration between the public and private sectors. Each member state contributes to distinct dimensions of progress in the implementation of digitalization. The European Commission facilitates the monitoring of digital competitiveness and indicators across EU member states through the utilization of the Digital Economy and Society Index (DESI) report. This report evaluates diverse aspects of the digital economy and society, offering a holistic perspective on digital development within the EU. The current digital landscape in individual EU member states has been analyzed. The study examines the dynamics of changes in specific indicators (connectivity, human capital, integration of digital technologies, and state digital services) within the framework of the DESI from 2015 to 2022 in both the European Union as a collective entity and the individual member states. The research findings indicate that, on the whole, there has been noteworthy advancement in digitalization across all EU member states over the past decade. Nevertheless, the study highlights the contemporary challenges reflected in the objectives outlined in the "Digital Decade" program and the asynchronous fulfillment of these goals among member states. The most significant progress has been observed in accomplishing objectives related to digitalizing public services. All figures of this indicator are approaching the maximum. Notable advances have been made in the connectivity or digital infrastructure domain in implementing 5G and high-speed communications. However, there is a recognized need for further development, particularly in establishing distribution nodes and advancing the field of quantum computing. Examining the indicator of human capital, member states have made significant progress in imparting basic digital skills to their populations. Nevertheless, increasing the number of Information and Communication Technology (ICT) specialists remains required. Turning to the integration of digital technologies, specifically the digital transformation of businesses, discernible progress has been achieved in incorporating digital technologies into Small and Medium Enterprises (SMEs) activities. However, further advancement necessitates the introduction of cloud technologies and artificial intelligence into the operations of enterprises across the European Union.

From multilateralism to bilateralism: Making sense of the UK’s security cooperation with EU member states after 2016

The article analyses the renewed importance of bilateralism for the UK’s engagement with individual EU member states in relation to security and defence policy. By systematically scrutinising the bilateral agreements with 18 EU countries concluded between the EU membership referendum in 2016 and the end of Boris Johnson’s premiership in 2022, we argue that the United Kingdom currently finds itself in the process of transitioning from one policy regime (multilateralism) to another (bilateralism); we try to make sense of this strategy by looking at it through the lens of four key aspects stemming from regime theory, namely (1) triggering factors; (2) institutional design and adaptation; (3) path dependency; and (4) regime sustainability. The analysis shows how the sustainability of a purely bilateral regime, with its high degree of customisation and intrinsic reliance on specific reciprocity, is precarious, albeit while leaving open the possibility to incorporate a future multilateral component.

POGREŠNA KVALIFIKACIJA UGOVORNOG ODNOSA : JEDAN OD BROJNIH IZVORA NESIGURNOSTI RADA U INDUSTRIJI VIDEOIGARA

Working in the video game industry is associated with many uncertainties, since the legal position of the worker depends on whether the work is performed on the basis of a civil law contract (self-employment) or employment contract (employment relationship). Considering that labour law imposes numerous legal obligations on an employer to protect the worker as the weaker contractual party (due to subordinate position and economic dependence of the worker in relation to the employer), an employer often deliberately practices fraudulent (unlawful) contracting of work. The article draws upon an in-depth analysis of this creative economy sector. The author critically deals with identified weaknesses and risks of precariousness that workers are exposed to and offers possible alternatives for consideration without examining the effectiveness of legal solutions of individual EU member states, but leaning towards the example of good practice on the Croatian videogame market.

Forum Introduction: Tackling the European Energy Crisis

Abstract Having had little time to absorb the economic and social shock of the COVID-19 pandemic, the EU is confronted with yet another crisis – rising energy prices due to Russia’s war in Ukraine coupled with inflation reaching historic levels. Household burdens vary greatly across and within EU member states, requiring different policy responses. In most European countries, high energy prices impose a heavier burden on low-income households. Putting compensatory measures in place to support the most vulnerable is therefore a priority. In this Forum, contributors consider specific responses from individual EU member states and the EU as a whole to determine best practices and gauge how they may be more effectively applied.

ІМПЛЕМЕНТАЦІЇ СПІЛЬНОЇ ЕНЕРГЕТИЧНОЇ ПОЛІТИКИ ЄВРОПЕЙСЬКОГО СОЮЗУ ТА РЕАЛІЗАЦІЇ БЕЗПЕКОВИХ ЕНЕРГЕТИЧНИХ ІНІЦІАТИВ ЧЕРЕЗ СПІВРОБІТНИЦТВО ЄС З МІЖНАРОДНИМИ ОРГАНІЗАЦІЯМИ

Energy problems in the modern global and European space are gaining maximum relevance and social and political significance. The emergence of energy problems and the need to reform the energy sector led to the formation of the Common Energy Policy of the European Union and the transition from the implementation of energy policy at the level of individual EU member states to the activation of coordinated cooperation between the EU and international organizations in the field of energy. The formation and implementation of the energy policy of the European Union is due to the actualization of such problems as the growing dependence of Europe on the import of energy carriers from the Russian Federation, limited diversification of energy resources, high and unstable prices for energy carriers, growing global demand for energy, problems in the field of energy efficiency. The problem is actualized by the escalation of the Russian-Ukrainian war, Russia’s expansionist energy foreign policy, its energy blackmail and threats against European countries, and, accordingly, the need to introduce sanctions against the aggressor country. The article examines the forms, vectors and directions of cooperation of the European Union with international organizations in the implementation of the EU Common Energy Policy and the implementation of safe energy initiatives. The features of effective cooperation of the European Union with such international organizations as: International Energy Agency, IAEA, Organization of Petroleum Exporting Countries, Cooperation Council of the Arab States of the Persian Gulf, International Solar Alliance, International Agency for Renewable Energy Sources are analyzed. Together with international organizations, the European Union effectively and consistently implements the strategies of forming the energy security system and improving the energy infrastructure of the countries of Central and Eastern Europe. The article substantiates the need for the activation of international and regional European integration in the energy sphere, the formation of consensus between states and international organizations regarding the implementation of the main provisions of the Common Energy Policy of the European Union as a condition and factor for solving energy problems, countering global and regional energy challenges and crises. The mechanisms for improving the energy infrastructure of the countries of Central and Eastern Europe are analyzed. Forms and mechanisms of countering Russia’s manipulations and energy blackmail are defined. The need for the formation of an effective system of European energy security is substantiated.

The Digital Economy in the Context of Digital Transformation and Their Impact on the Electronification of Accounting Processes in the Slovak Republic

As a result of the explosive growth of scientific knowledge and the rapid development of ICT, the world economy is undergoing crucial global changes, which are the most significant since the industrial revolution. Digitization represents the most important element of the fourth industrial revolution, enabling the connection of technology and people. The digital economy is related to the rapid onset and penetration of information and communication technologies into all areas of human activity, which also requires new perspectives on the factors affecting the development and success of the economy. We digitize information and data, digitize the processes and systems that make up the functioning of the company, and digitally transform the company and its strategy. The main task of article is to determine the digital economy in the context of digital transformation and their impact on the electronification of accounting processes in the Slovak Republic. The article defines the progress and level of development of Europe's digital competitiveness in individual EU member states using the Digital Economy and Society Index (DESI). The position of Slovakia and the EU is compared for the period from 2018 to 2022. Slovakia needs to create conditions for the gradual digital transformation of all sectors of the economy. Digitization is also coming to the accounting. The article also describes how the approved amendment to the Act on Accounting as of January 1, 2022 creates space for streamlining the processing and archiving of accounting records. The current change in the amendment to the Act on Accounting thus offers completely new opportunities for working with corporate accounting in relation to internal processes in the company, but also in relation to financial administration or tax authorities. All entities, this also applies to agricultural entities keeping the double entry accounting, are obliged to follow the Act No. 431/2002 Coll. on Accounting as amended.

Європейський досвід антикризового податкового регулювання

Based on the analysis of statistical indicators, crisis periods for the economies of the EU member states have been identified. The impact of fiscal stimulation measures of the economy on expenses and tax revenues in individual EU member states is analyzed. The dynamics of changes in the highest statutory rates of personal income tax and corporate income tax in the EU member states in 2007–2021 are highlighted. It is established that during the global financial crisis, many EU member states introduced additional measures of anti-crisis tax regulation. Measures to reduce tax rates and introduce other tax preferences have become especially common. The peculiarities of tax incentives for businesses during the spread of the COVID-19 pandemic are considered. It was concluded that the selection of the incentive tool depended on the socio-economic situation in the country, the need to support certain sectors of the economy, and the ability of governments to reduce the tax burden while maintaining financial stability. The forecast of the impact of Russia's war against Ukraine on the functioning of the taxation sphere is given.

Agricultural Development in European Union: Drivers, Challenges and Perspectives

Globalisation of world trade, consumer-led quality requirements and EU enlargement are the new realities and challenges facing European agriculture today. The changes will affect not only agricultural markets, but also local economies in rural areas. The future of the agricultural sector is closely linked to a balanced development of rural areas. The Community dimension in this relationship is therefore clear: agricultural and rural policy have an important role to play in the cohesion of EU territorial, economic and social policy. With over 56 percent of the population in the 27 Member States of the European Union (EU) living in rural areas, which cover 91 percent of the territory, rural development is a vitally important policy area. Farming and forestry remain crucial for land use and the management of natural resources in the EU’s rural areas, and as a platform for economic diversification in rural communities. The strengthening of EU rural development policy is, therefore, an overall EU priority. The European Union has an active rural development policy because this helps to achieve valuable goals for the country sides and for the people who live and work there. The policy is funded partly from the central EU budget and partly from individual Member States' national or regional budgets. Theoretically, individual EU Member States could decide and operate completely independent rural development policies. However, this approach would work poorly in practice. Not all countries in the EU would be able to afford the policy which they needed and many of the issues addressed through rural development policy do not divide up neatly at national or regional boundaries. Also, rural development policy has links to a number of other policies set at EU level. Therefore, the EU has a common rural development policy, which nonetheless places considerable control in the hands of individual Member States and regions. The EU’s rural development policy is all about meeting the challenges faced by our rural areas, and unlocking their potential.

Environmental Taxes in the Member States of the European Union—Trends in Energy Taxes

Environmental taxes, including energy taxes, are applied in all EU Member States. They are considered important instruments in the implementation of the EU energy and climate policies. The main purpose of the research presented in this article is to identify trends in the EU Member States in shaping environmental tax revenues, with particular emphasis on their most important group, i.e., energy taxes. The researchers sought answers to the research question regarding the existence of converging trends in this respect. The “letter values” method was used in the research procedure, which is an extension of the box-plots method. The analysis covered 27 EU Member States. The data used in the research came from the Eurostat database (2009–2020). As a result of the research, it was found that in the EU as a whole, there is a slight downward trend in the share of environmental tax revenues in GDP and the share of environmental tax revenues in total tax revenues, while the share of energy tax revenues in total environmental tax revenues shows a slight upward trend. The decomposition of the research and the conducted comparative analysis, including the determination of specific rankings, showed that both the level and trends in the shaping of the studied variables vary considerably in the individual EU Member States.

An Analysis of the Use of Energy from Conventional Fossil Fuels and Green Renewable Energy in the Context of the European Union’s Planned Energy Transformation

Over the past few years, considerable emphasis has been put on decarbonization, which, in the context of the recent events in Europe, proves that mixing energy sources is the best strategy. This article discusses ways in which individual EU member states manage their energy source diversification, while comparing their levels of fossil fuels and renewable energy sources (RESs) usage. The research data was acquired from the Eurostat website and comprises of 15 indicators describing the use of energy both from conventional and renewable sources in the European Union, in 2019. The study employs taxonomical methods, such as ranking and cluster analysis. The authors put forward a hypothesis that EU member states approach the use of energy resources in several ways. There are countries which take advantage of both traditional and renewable sources (Netherlands, Germany, Austria, and Italy). However, there is a group of states that relies on a single energy source and exclusively uses either traditional (Poland) or renewable energy resources (Sweden, Finland). The analyses enabled the isolation of country clusters with similar activities and energy strategies.

The persistence of economic sentiment: a trip down memory lane.

Although various indicators of economic sentiment are often assessed in macroeconomic studies, the generating process of economic sentiment itself is still a puzzle. This paper offers pioneer evidence on the persistence of economic sentiment. Applying a battery of fractional integration tests on the European Economic Sentiment Indicator (ESI) of all individual EU member states, we reveal that ESI is dominantly a long-memory process. This finding is robust across several estimators, and it fairly contradicts the conventional wisdom of ESI as a purely transitory macroeconomic shock. Further on, this is true for both core EU economies and new member states, although the later ones exhibit slightly longer memory. Finally, we reveal that the end of the Great Moderation era has increased ESI’s persistence, but the effect is only marginal. As it seems, a series of macroeconomic turbulences recorded after the global financial crisis has not initiated a significant shift in agents’ collective memory and ESI will likely keep its pivotal role in governing business cycles in the future.

FUZZY MODEL OF SUSTAINABLE DEVELOPMENT WITH THE INCLUSION OF FINANCIAL VARIABLES

The aim of the article was to build a model based on fuzzy logic describing the level of sustainable development for the individual EU Member States in 2009–2019 and to conduct fuzzy simulations as a result of which scenarios for the prediction of sustainable development acknowledging financial variables (the share of environmental taxes, a deficit, a debt). The original research approach is expressed by including fuzzy models in the analysis of the level of sustainable development with the inclusion of financial variables. The Netherlands achieved the highest value (the highest level of sustainable development) (0.571). Slovenia (0.564) and Denmark (0.559) came second and third. The lowest average value (the lowest level of sustainable development) was recorded for Slovakia (0.423). After 10 years there are evident changes in the distribution of individual typological groups. In 2019, the countries belonging to the first and second typological groups were located primarily in the northern and central Europe. The scenario analysis showed that in the case of most countries, if the analyzed variables remained at the maximum or minimum level throughout the analyzed period, it would not significantly affect the assessment of their level of sustainable development, their ranking positions, and inclusion into typological groups.

Legal Regulation of Unfair Trade Practices in Food Supply Chain

Abstract Recent changes in concentration in the EU markets affected also the organisation of the food supply chains. These significant changes severely impacted especially small and medium–sized enterprises which are likely to be exposed to unfair trading practices. Imbalances in bargaining power between large and small enterprises lead to competition inequalities and unfair trade practices that need a specific legislation governance. This paper provides an overview of the Slovak and EU legislation regulating unfair trade practices in agro–food sector. The main aim of both the European and Slovak legal acts regulating unfair trading practices is to ensure protection and fair income for businesses and quality and wider choice for consumers. In addition, the article also brings the overview of the EU directive transposition to the legal framework of individual EU member states.

Sustainable Development According to Resource Productivity in the EU Environmental Policy Context

The constant rise in the consumption of resources puts the environment under pressure. Most resources are non-renewable in nature, which is why they must be utilized with great care. For this reason, the European Union devotes increasingly more attention to their efficient use. It deals with these aspects, making an effort to maintain the long-term competitiveness and to secure sustainable development in line with all of the related environmental impacts. In this context, several goals have been set out, to which the individual EU member states are bound. A method for monitoring resource efficiency was developed, consisting of indicators, the aim of which is to assess the efficiency of the use of soil, water, energy, with the most fundamental one being resource productivity. The results of the efficiency of use of the individual resources in the member states greatly differ, even without further investigating the links and correlations between the indicators. Research on the interrelationships of the individual indicators in terms of mutual influence has not yet been completed. The aim of our study was to define the correlation between the main indicator, resource productivity, and the other indicators at the level of the EU and its member states. For this purpose, we prepared a database with data which, for the sake of uniformity, were obtained from the publicly available Eurostat database. Subsequently, the data were analyzed and evaluated using the statistical software JMP 15 by a regression and correlation analysis. By using the multiple regression analysis, we created a model describing the significance of the impact of the observed variables on the resulting resource productivity of the EU member states. Generally, there is a positive correlation between the resource productivity and the Eco-Innovation index, as well as the utilization rate of recycled materials. For the sake of comparison, we developed a regression model at the level of the V4 countries, with the aim of evaluating the impact of the historical background of the countries on their contemporary ability to reach the goals set out by the environmental policy. The V4 countries are lagging far behind in meeting all of the environmental policy objectives, not only in tracking the main indicator (resource productivity) on which the multiple regression analysis is based. It was interesting to find that the multiple regression model at the V4 level does not include the indicators defined by the EU level model, the key ones, in this case, being water productivity, energy dependence, energy productivity, and environmental tax. This finding may also, after further analyses, be the key for other countries joining the EU in the future, in defining the weaknesses of the newly acceding states in terms of the EU’s move towards a circular economy.

A Possible Exit Strategy from the ‘Halloumi Affair’: How to Solve Problems with CETA Ratification

Abstract This article explores the importance of geographical indications within the new trade policy of the European Union, using the example of the CETA and the dispute over Cypriot halloumi cheese. The authors point out that geographical indications occupy an important place within the European Commission’s negotiating strategy primarily because of their significance for the EU economy. In negotiations with third countries, such as Canada, a crucial problem is the different approaches to the protection of typical regional products. Therefore, the Union is trying to transfer its internal solutions to the international level. The detail of regulations, combined with the mixed nature of new trade agreements, makes trade policy vulnerable to blackmail by individual EU Member States. According to the authors, a reasonable solution to this problem – which was highlighted by Cyprus’s veto of the CETA – is to rely on the treaty provisions and the judgements of the Court of Justice of the EU. These indicate the exclusive competence of the EU in this area and impose an obligation on EU Member States to cooperate sincerely.

THE POWER OF SMALL EU MEMBER STATES AFTER BREXIT: HOW POWERFUL IS THE VISEGRAD GROUP?

The power of individual EU Member States has been changing over the past decades as a result of revisions to the voting systems and the enlargements of the European Union. The present article analyses the development of the voting power of individual Member States in the Council of the European Union before and after the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union. We use the calculation of the standardized Banzhaf power index to calculate the legislative power of the Member States. The calculations recorded in the table point to changes in the weights of national votes caused by Brexit. The article pays special attention to the Visegrad Group, which we define within the European Union as an informal group consisting of four Central European states - the Czech Republic, Hungary, Poland, and the Slovak Republic. The results indicate a significant growth of the voting power in Poland and more moderate growth in the other three Visegrad Group countries which contributes to the shift in the voting equilibrium within the ordinary legislative procedure of the European Union.