Multinational Organizations European Union

Origins of the EU Before the end of WW2, Belgium, Luxembourg, and the Netherlands agreed to cooperate economically. They agreed to limit tariffs and quotas in an attempt to foster economic activity. This region is known as the Benelux region.

Marshall Plan 1948-52 Primary function of the OEEC: To accept and distribute funds allocated under the Marshall Plan 13 Billion $ from U.S. to help rebuild European countries

European Iron and Steel Community-1951 France, Italy, Germany, and Benelux shared: iron scrap coal finished goods To maintain peace in Europe To present a united front against communism Out-of-date steel plants closed

Common Market - 1958 Objective - a single market in which the following flow freely: goods and services labor markets capital Founders determined that Europe would never go to war again

1973 European Community - 9 Nations France Germany Italy Benelux United Kingdom Ireland Denmark

1979 European Parliament 410 directly elected representatives (MEPs) Parliament meets in Strasbourg New nations joined 1981 Greece 1986 Spain and Portugal 1990 E. Germany 15 Nations

1991 Maastricht Treaty Set goals and 279 directives for 15 nations Social Compact Environment Research Agriculture Regional Development Banking Foreign Policy

Common Agricultural Policy Huge subsidies to agriculture absorb 50% budget Inadequate controls lead to corruption Surpluses sold at a loss

European Monetary and Economic Union Euro - a single European currency by Jan 1, 1999 By 2002 European notes and coins Complements European market with its free movement of: people goods and services capital

Euro Zone (blue nations) On January 1st, 2002 12 of the 15 nations in the EU decided to adopt a common currency. Some nations (UK, Denmark, and Sweden) chose not to adopt the Euro. Establishing a common currency has the following benefits: Eliminating fees for travelers Making auditing easier for companies

Development Areas Under the Structural Funds there are 3 Objectives: Objective 1: promoting the development of regions whose development is lagging behind; Objective 2: supporting the economic and social conversion of areas facing industrial decline Objective 3: supporting the adaptation and modernisation of policies and systems of education, training and employment.

Special Problem Areas Political Asylum Non EU Migrant workers Terrorists Guns, drugs, rabies, Fear of Germany Unemployment

Supranationalism and Devolution

Contradiction Devolution- Supranationalism regions within a state demand political strength and autonomy at the expense of the central government Supranationalism three or more states combine for political, cultural, or cultural cooperation

Devolution in Europe Scotland Northern Ireland Wales Flemish/French Kaliningrad Polish in Belarus Basques Catalonia S. Tyrol Corsica Sardinia Yugoslavia

European Union By 2007, the European Union had grown to 27 members to include members of the former Soviet Union. Many nations have had to align their legal standards and financial practices to conform to EU regulations. Norway, Iceland, and Switzerland have all declined membership into the EU in order to maintain sovereignty. Turkey, Croatia, and Macedonia are candidate countries and awaiting approval from current members.

Economic Strategy European nations face the challenge of competing with other developing regions such as South America and Asia. Location of factories, industries, and service centers is critical to the future success of the EU. For example, moving factories to countries that are less developed to reduce the overall cost of production.

Economic Strategy In an effort to gain economic power, the EU practices protectionist policies on the world market. These policies typically give European companies exclusive rights to production, which in turn increases prices for European consumers.

Future of the European Union Addition of eastern European nations? Turkey? Strength of the Euro Struggle for political unity (central power) Preserving culture, language, and tradition Identity: “European” or “French”