The European Union today. Possibilities of a future?

The European Constitution

Constitution Introduction Treaty establishing a Constitution for Europe (TCE) Treaty establishing a Constitution for Europe (TCE) Pursose: Pursose: Replace existing Treaties Replace existing Treaties Give legal force to the Charter of Fundamental Rights Give legal force to the Charter of Fundamental Rights Qualified majority voting Qualified majority voting

First Draft of the Constitution At Laeken European Council At Laeken European Council New debate on the future of the European Union. New debate on the future of the European Union. TCE signed in Rome 29 October 2004 TCE signed in Rome 29 October 2004 All Member States must ratify the Treaty: All Member States must ratify the Treaty: Referendum Referendum Parliamentary vote Parliamentary vote

Results - Many countries promised to hold referendums: Denmark, France, Ireland, Luxembourg, Netherlands, Spain and Portugal. - 29th May 2005 – Spain is the first country to hold a referendum. The Constitution approved. - The French and Dutch public rejected the Consitution th July, Luxembourg approved the Constitution. Last referendum to be held. - - All of the other Member States cancelled their referendums due to the French and Dutch rejection of the Constitution. - - It was decided to hold a “period of reflexion”.

A new Treaty In the 2007 European Summit it was decided to abandon the Constitution, and establish a new International Governmental conference which would amend the existing Treaties (Rome and Maastritch). In the 2007 European Summit it was decided to abandon the Constitution, and establish a new International Governmental conference which would amend the existing Treaties (Rome and Maastritch). The new Treaty, referred to as Reform Treaty, became the Lisbon Treaty, signed in Lisbon on the 13th December 2007, entered in force the 1st December The new Treaty, referred to as Reform Treaty, became the Lisbon Treaty, signed in Lisbon on the 13th December 2007, entered in force the 1st December 2009.

Reasons for the European Constitution The TCE would have reiterated key principles such as: The TCE would have reiterated key principles such as: Principle of conferral Principle of conferral Principle of subsidiary Principle of subsidiary Principle of proportionality. Principle of proportionality.

Human principles Provisions codified for the first time in the TCE: Provisions codified for the first time in the TCE: Human dignity, freedom, democracy, equality, the rule of law, respect for human rights, minority rights, free market, pluralism, non-discrimination, tolerance, justice, solidarity and equality of the sexes. Human dignity, freedom, democracy, equality, the rule of law, respect for human rights, minority rights, free market, pluralism, non-discrimination, tolerance, justice, solidarity and equality of the sexes. Aims of the EU according to TCE: - Promotion of peace, security and justice, internal market where competition is free, economic growth and price stability, respect for linguistics and cultural diversity, eradication of poverty, free and fair trade

Legal personality Under the TCE, the European Union would have legal personality, that is to say, it would be presented as a single body under international law. Under the TCE, the European Union would have legal personality, that is to say, it would be presented as a single body under international law.

Criminal justice proceedings 7 new areas of cooperation would have been added: 7 new areas of cooperation would have been added: Child abuse Child abuse Corruption Corruption Fraud Fraud Human trafficking Human trafficking Drug trafficking Drug trafficking Terrorism Terrorism Trafficking of arms Trafficking of arms

Solidarity clause “Any member state which falls victim to a terrorist attack or other disaster will receive assistance from other Member States, if it requests it”. “Any member state which falls victim to a terrorist attack or other disaster will receive assistance from other Member States, if it requests it”.

Charter of Fundamental Rights of the European Union In the TCE it is included a copy of the Charter of Fundamental Rights, agreed by all members In the TCE it is included a copy of the Charter of Fundamental Rights, agreed by all members

Qualified majority voting Unanimity voting would be eradicated and, instead, 55% majority of members representing 65% of the population would only be required. Unanimity voting would be eradicated and, instead, 55% majority of members representing 65% of the population would only be required. The unanimous agreement will only be required for decisions on more sensitive issues. The unanimous agreement will only be required for decisions on more sensitive issues.

Treaty revisions Any amendments to the Constitutional Treaty will involve the convening of a new Convention. It must be agreed unanimously. Any amendments to the Constitutional Treaty will involve the convening of a new Convention. It must be agreed unanimously.

Withdrawal clause The TCE allows for the withdrawal of any Member State without renegotiation of the TCE or violation of Treaty commitments. The TCE allows for the withdrawal of any Member State without renegotiation of the TCE or violation of Treaty commitments. If negotiations are not agreed, the country leaves anyway. If negotiations are not agreed, the country leaves anyway.

The entry of Turkey in the European Union

Reasons for Turkey joining the European Union Geopolitical Reasons Geopolitical Reasons Turkey represents a defense against instability in both parts: Middle East and Central Asia. It is a potential bridge between Christian Europe and the Islamic World It is a potential bridge between Christian Europe and the Islamic World

Reasons for Turkey joining the European Union Economic Reasons: Economic Reasons: 1)Turkey has experimented the doubling of per capita income since )It has a youthful population. 3)It attracts large amounts of foreign direct investment.

Reasons for Turkey joining the European Union Energy: Energy: 1)Turkey could be an alternative route for Russian energy to transit into the EU. 1)Turkey could be an alternative route for Russian energy to transit into the EU. 2) Nabucco pipeline: from Turkey to Austria. 2) Nabucco pipeline: from Turkey to Austria. 3) Objective: to reduce European dependence on Russian energy. 3) Objective: to reduce European dependence on Russian energy.

Reasons for Turkey joining the European Union Defence: Defence: 1) Turkey is a defender of European interest since the Cold War. 2)Turkish troops have served alongside the EU troops on various missions. 3)Inclusion of Turkey into the EU, cooperation in defense and security are strengthened.

Reasons for Turkey joining the European Union Reforms: Reforms: 1)Turkey applied formally to join the Union in ) The abolition of Capital Punishment. 3) Objective: to move closer towards a European style democracy.

The Single Currency: the Euro

Benefits of the Euro 1) Lower transaction costs. No costs in changing currencies. 2) Price transparency. “law of one price”.

Benefits of the Euro 3)Removal of exchange rate risks. No additional risk of exchange rate. 4) Increase in trade and investment. Euro as a vital instrument to the success in the Single Market.

Benefits of the Euro 5) Effects on interest rates. Decrease of the interest rate. 6)Improvement on Inflation. ECB  Low inflation. 7) Benefits in the financial sector.

Financial Crisis Introduction A liquidity shortfall in the United States banking system. A liquidity shortfall in the United States banking system. Collapse of: Collapse of: - Financial institutions. - Bailout of banks by national governments. - Downturn in stock markets.

Financial Crisis The worst financial crisis since the Great Depression of the 1930s. The worst financial crisis since the Great Depression of the 1930s. - Failure of key businesses. - Decline in consumer wealth estimated in the hundreds of billions of U.S. dollars. - Substantial financial commitments incurred by governments. - Decline in economic activity.

Financial Crisis The economic impacts: The economic impacts: Weaker export revenues; Further pressures on current accounts and balance of payment; Lower investment and growth rates; Lost employment.

Financial Crisis Social impacts: Social impacts: Lower growth translating into higher poverty; More crime. Weaker health systems. Difficulties meeting the Millennium Development Goals.

Financial Crisis Regulatory solutions have been implemented or are under consideration. Regulatory solutions have been implemented or are under consideration. Risks remain for the World Economy over the periods. Risks remain for the World Economy over the periods.

Financial Crisis 2010 European sovereign debt crisis European sovereign debt crisis. This crisis impacted five countries: This crisis impacted five countries: - Greece, Ireland, Portugal, Italy, and Spain. Other countries: Other countries: - France, Belgium, The Netherlands, Luxembourg, Germany, Finland, and Austria.

Financial Crisis Some countries were not affected by crisis: Some countries were not affected by crisis: China: China: - Maintains capital controls that limit foreign investment by individuals and businesses. - Chinese investors had little exposure to troubled parts of the US and European financial systems. - Banks in China had invested heavily in US securities.

Financial Crisis India: - - Has increased imports and pushed up the demand for copper, oil and other natural resources. - - Greater exports and higher prices. Australia: Australia: - Suffered relatively little from the crisis. - Suffered relatively little from the crisis. - Did not enter into a recession. - Did not enter into a recession. Brazil: Brazil: - Did not sustain major damage from the crisis. - Did not sustain major damage from the crisis.

Financial Crisis European Union EU governments, coordinated by the European Commission, stabilised the banks after US investment bank Lehman Brothers failed. EU governments, coordinated by the European Commission, stabilised the banks after US investment bank Lehman Brothers failed. Protect people, their savings and their jobs. Protect people, their savings and their jobs. 5.5 % of GDP is being pumped into the economy from national and European budgets. 5.5 % of GDP is being pumped into the economy from national and European budgets. Jobs, infrastructure and energy efficiency. Jobs, infrastructure and energy efficiency.

Financial Crisis The European Globalisation Adjustment Fund: The European Globalisation Adjustment Fund: New opportunities to workers who have lost their jobs. New opportunities to workers who have lost their jobs workers, in sectors such as the car industry, textiles and construction, have benefited from it workers, in sectors such as the car industry, textiles and construction, have benefited from it. The Commission has approved applications worth €60 million. The Commission has approved applications worth €60 million.

Financial Crisis Interest rates were cut to record levels in the euro area. The Commission: Interest rates were cut to record levels in the euro area. The Commission: Radical reforms to financial markets: Radical reforms to financial markets: - Cut out reckless behaviour. - Ensure financial institutions are properly supervised. - Get lending flowing to families and small businesses.

Financial Crisis EU countries outside the euro area: EU countries outside the euro area: Hungary, Latvia and Romania. Hungary, Latvia and Romania. The EU stepped in with loans of €15 billion. The EU stepped in with loans of €15 billion.

Financial Crisis EU tackles social dimension of economic crisis: EU tackles social dimension of economic crisis: Mobilising EU funding. Mobilising EU funding. Promoting employment. Promoting employment. Cooperation with the social partners. Cooperation with the social partners. Cooperation with international partners. Cooperation with international partners.

Financial Crisis Mobilising EU funding: Mobilising EU funding: - European Global Adjustment Fund (EGF). - New European Progress Microfinance Facility.

Financial Crisis Promoting employment: Promoting employment: - The EURES jobs portal: - Work in another European country. - The “new skills for new jobs” initiative: - Analyse and predict future skills requirements for economic advancement. - Analyse and predict future skills requirements for economic advancement. - The European Employment Strategy: - Promote employment in the context of the crisis.

Financial Crisis Cooperation with the social partners and international partners: Cooperation with the social partners and international partners: - Constructive dialogue between employers and trade unions. - An international action.

Financial Crisis Europe 2020 Europe 2020 Five ambitious objectives: Five ambitious objectives: - Employment. - Innovation. - Education. - Social inclusion. - Climate/energy.

Financial Crisis Each Member State will adopt its own national targets in each of these areas. Each Member State will adopt its own national targets in each of these areas. Concrete actions at EU and national levels will underpin the strategy. Concrete actions at EU and national levels will underpin the strategy. Smart, sustainable and inclusive economy. Smart, sustainable and inclusive economy.