The European Union in the World: An Introduction History

What is the European Union? First, what it is not: It is not a nation-state It is not a traditional international organization What is it then? It is a political system that combines elements of both What does it do? It makes policy in specified areas

Treaty of Paris European Coal and Steel Community French Foreign Minister Robert Schuman and French Businessman Jean Monnet I. A Brief History of the European Union

The European Steel and Coal Community Schuman Doctrine, May 9, 1950 –Proposal of Monnet’s plan to the French cabinet for France and Germany to combine their coal and steel industries under a joint authority

The European Steel and Coal Community Purpose: To advance collective European interests, rather than simply to reflect the national interests of the individual member countries –Jean Monnet “Father of Europe” Believed that the key to peace and prosperity in European was reconciliation between France and Germany Concrete results where important in industrial sectors, therefore because of their economic and political importance at the time and their link to the war making capacities of the modern state, coal and steel were the obvious sectoral choices

The European Steel and Coal Community – Treaty of Paris, April 18, Created the European Coal and Steel Community (ECSC), representing the first time European governments had given significant powers to a supranational organization 2. Six founding member states: France, Germany, Italy, Belgium, the Netherlands, and Luxembourg 3. ECSC allowed to pull down tariff barriers, abolish subsidies, fix prices, and raise money by imposing levies on steel and coal production

The European Economic Community Treaty of Rome, March 25, 1957 * Core constitutional document of today’s EU Right: Signing of the Treaties of Rome “to work for the establishment of a united Europe by the development of common institutions, the progressive fusion of national economies, the creation of a common market, and the progressive harmonization of their social policies”

The European Economic Community – Treaty of Rome –Created the European Economic Community (EEC) and of a common market to harmonize their economic policies –Also creating a European Atomic Energy Community (EAEC, also known as Euratom), promoted the development of nuclear power established a common pool of radioactive fuels for Western Europe’s growing stock of nuclear reactors

ECONOMIC OBJECTIVES 1. Harmonious development of economic activities 2. Continuous and equilibrated expansion 3. Increase in stability 4. Accelerated growth of the living standard MEANSKEY PRINCIPLESINSTITUTIONAL FRAMEWORK Loyalty to the Community Non-discrimination related to citizenship Enlargement of competencies, only related to the functioning of the common market Common institutions Supreme judiciary control The Commission: the guardian of the Treaty EU Budget Rules concerning decision making COMMON MARKET HARMONIZATION OF ECONOMIC POLICIES Customs union Free movement of goods Free movement of persons Free movement of services Free movement of capitals Common commercial policy Common agricultural policy Harmonization of economic and fiscal regulations Common competition policy Common transportation policy Other instruments (weak) Fig. 3.1 The Economic Structure of the Treaty of Rome

1960’s –1960’s Treaty Establishing a Single Council and a Single Commission of the European Communities (the Merger Treaty -1967) Luxembourg Compromise (1966)- the six founding member states pledged that when issues very important to one or more states were to be decided, the Council of Ministers would try to reach decisions by unanimity The Common tarrif (1968)- the customs duties were gradually reduced since 1957

1973 United Kingdom, Ireland and Demark I. A Brief History of the European Union s

–1970’s Con’t Establishment of the European Council (EC) in 1974 The first direct elections to the European Parliament (EP) in 1979 European Monetary Systems (EMS), purpose to limit the EC country currencies that have disrupted the functioning of the internal market

1980’s The 1980’s was a difficult period for European integration: Europe lost competitiveness in traditional industries such as car, steel, shipbuilding, and textiles, and failed to establish strong provisions in newer industries such as computers, electronics, and aviation Fall of Berlin Wall

ECONOMIC OBJECTIVESMEANSKEY PRINCIPLESINSTITUTIONAL FRAMEWORK The previous ones COMMON MARKET HARMONIZATION OF ECONOMIC POLICIES Plus European Council Qualified majority vote for measures concerning the internal market More important role for the European Parliament The previous ones Plus Definition of common market: space without frontiers, the guarantee of liberties The previous ones Plus Mutual recognition as regular principle Research & technical development environment SME Economic & social cohesion Structural funds Health & safety at the workplace Fig. 3.2 Addition of the Unique Act to the Treaty of Rome

1981 Greece I. A Brief History of the European Union

1986 Spain and Portugal I. A Brief History of the European Union

The European Union The Maastricht Treaty 1992 –Created the European Union Achievements 1. A detailed blueprint for the establishment of Economic and Monetary Union (EMU) by the end of the decade 2. Established the political union through a complicated structure that differentiated between economic matters on the one hand and foreign policy and internal security matters on the other 3. Included other innovations, such as the Social Charter, EU citizenship, strengthening of the Parliament, subsidiarity (concept that attempts to define what decisions are to be taken at which levels), and other reforms *The combination with EMU and political union increased the overall significance of the Maastricht achievement

ECONOMIC OBJECTIVESMEANSKEY PRINCIPLESINSTITUTIONAL FRAMEWORK 1. Harmonious, equilibrated and lasting development of economic activities 2. Lasting and non- inflationary growth, while preserving the environment 3. High level of convergence of economic performances 4. High level of employment and social protection 5. Increase in the living standards and in the quality of life 6. Economic and social cohesion and solidarity among member states The previous ones Subsidiarity Community acquis Open market with free competition Stable prices Healthy public finances and monetary conditions Sustainable balance of trade Rules concerning the decision making: -More QMV -More power for the European Parliament New EC institutions One currency Price stability European Central Bank No excessive deficits Admission conditions COMMON MARKET HARMONIZATION OF ECONOMIC POLICIES EMU The previous ones New or reformulated instruments; all the new ones are weak The interdiction of restrictions on capital Fig. 3.3 The Economic Structure of the Treaty of Maastricht

The European Union The Pillar Structure –1. European Community –2. Defense and Security –3. Home Affairs, Justice, Immigration, and Control of external borders, and combating drug addiction and international crime *The three-pillar structure established by Maastricht remains valid for the EU today, although some elements of it were modified by the 1997 Treaty of Amsterdam

1995 Austria, Finland and Sweden I. A Brief History of the European Union

Treaty of Amsterdam Problem: The prospect of adding ten or more members lent new urgency to calls for reform of EU institutions. The Union was already too large to function with essentially the same set of institutions that had been devised in the 1950s The Treaty of Amsterdam amended the Maastricht Treaty and the Treaty of Rome. Freedom, security and justice to protect fundamental rights within the European Union, such as equality between men and women, non-discrimination and data privacy The Union and the citizen Improvements areas directly affecting the rights, interests, and well-being of individual citizens Effective and coherent external policy the challenges and practicalities of extending the scope of the common commercial policy to include international agreements on services and intellectual property rights

ECONOMIC OBJECTIVESMEANSKEY PRINCIPLESINSTITUTIONAL FRAMEWORK 1. Harmonious, equilibrated and lasting development of economic activities 2. High level of employment and social protection 3. Equality between men and women 4. Lasting and non-inflationary growth 5. High level of competitiveness and the convergence of economic performances 6. High level of protection and improvement of the quality of the environment 7. Increase in the living standards and in the quality of life 8. Economic and social cohesion among member states The previous ones COMMON MARKET HARMONIZATION OF ECONOMIC POLICIES EMU The previous one Special protocol regarding the subsidiarity and proportionality Rules concerning the decision making: -More QMV -More power for the European Parliament Tighter cooperation or “flexibility”, under very strict conditions in the EC Pillar; fewer conditions in other Pillars The stability and growth pact The previous ones Voluntary ERM-2 Gradual transition to (entirely) free movement of persons – complex relationship to Schengen and conditionings The previous ones The social protocol inserted in the EC Treaty The previous ones Coordinated strategy for employment Fig. 3.4 The Economic Structure of the Treaty of Amsterdam

The European Communities Common Foreign and Security Policy Cooperation in Justice and Home Affairs The European Union EEC Customs union and single market Agricultural policy Structural policy Competition policy Euratom ECSC (coal & steel) 3 Pillars – The Amsterdam Structure Foreign Policy Cooperation, common positions and measures Peacekeeping Human rights Democracy Aid to non-member countries Security policy Disarmament Financial aspects of defence Long-term: Europe’s security framework Cooperation between judicial authorities in civil and criminal law Police cooperation Combating racism and xenophobia Fighting drugs and the arms trade Fighting organised crime Fighting terrorism Criminal acts against children, trafficking in human beings

Treaty of Nice 7-8 December (2000) Agreement on the text of a new Treaty changing the EU's decision-making system so that the Union will be ready for enlargement. 26 February (2001) The Treaty of Nice is signed. 1 February (2003). The Treaty comes into a force.

Enlargement of the European Union 10 new members joined the EU in 2004: Cyprus The Czech Republic Estonia Hungary Latvia Lithuania Malta Poland The Slovak Republic Slovenia 2 members in 2007: Romania and Bulgaria

Sample questions 1. Which European communities were merged in 1967 to create the "European Communities"? Community A. the European Economic Community, the European Coal and Steel Community B. the European Economic Community, the European Coal and Steel Community, the European Atomic Energy C. the European Economic Community, the European Atomic Energy Community D. the European Coal and Steel Community, the European Atomic Energy Community 2. The Single European Act was signed in: A B C D. 1990

3. What are the four freedoms set out in the Treaty of Rome? a) free movement of goods, services, capitals and persons b) free access to theatres, cinemas, trains and buses for the over 65s c) free movement of goods, animals, services and capitals d) free movement of farmers, miners, steel workers and fishermen 4. The Treaty establishing the European Economic Community was signed in: a. Brussels in 1957 b. Rome in 1957 c. Luxembourg in 1956 d. Strasbourg in 1958