Dissertation defence (Economics): VTM Jonne Lehtimäki

VTM Jonne Lehtimäki defends the dissertation in Economics titled “Essays on European Economic Integration, Institutions and Fiscal Rules” at the University of Turku on 23 January 2026 at 12.15 (University of Turku, Turku School of Economics, LähiTapiola lecture hall, Rehtorinpellonkatu 3, Turku).

Opponent: Associate Professor Michael Bergman (University of Copenhagen, Denmark)

Custos: Dr. Jouko Vilmunen (University of Turku)

Summary of the Doctoral Dissertation:

This doctoral dissertation studies how European economic cooperation and fiscal rules have affected economic growth and public finances. It focuses on two core pillars of the European Union: the Single Market, which enables the free movement of goods, services, capital, and people, and fiscal rules that aim to keep public finances sustainable. The central question is whether these common frameworks have delivered real, measurable benefits beyond their political intentions.

The first key result is that the European Single Market has significantly boosted economic growth. By reducing trade barriers and increasing competition, it has improved productivity and investment across member states. These benefits have not been evenly distributed, and smaller member states have gained the most, as access to a larger market has allowed firms to grow, specialise, and compete more effectively. This shows that economic integration can be a powerful driver of prosperity, especially for open and export-oriented economies.

The thesis also finds that European fiscal rules, particularly the Stability and Growth Pact, have helped limit the growth of government debt. Countries within the EU tend to have lower debt levels than they would have had without common fiscal constraints. Importantly, these rules appear to matter even when they are not strictly enforced, as they shape expectations, increase transparency, and raise the political cost of non-prudent fiscal policy.

National and supranational fiscal rules also have complementary effects. National rules often vary in their effectiveness, but when combined with supranational oversight, they reinforce each other. Looking beyond Europe, the dissertation shows that supranational fiscal frameworks are often more effective than purely national ones and do not hinder economic growth, while also help in preserving public investment.

Overall, the thesis demonstrates that well-designed common rules can support both economic growth and fiscal discipline. European integration has delivered tangible economic gains, and shared fiscal frameworks, when flexible and credible, can strengthen public finances without undermining prosperity.