EU-15: The existing Member States… …and 13 Candidate countries Map: European Commission

What is the EU? 1958 - Customs Union  Common Market 1992 - Single Market 1993 - European Union 1999 - Eurozone 20?? – Political union? Key points to make: What does the person in the street (or library) understand by the EU? Here are some ‘brand names’ ‘Common market’ = free movement of goods. Free trade area and common customs zone. Even this has major implications (e.g. agreements with 3rd countries, competition policy, fish?, agriculture?) ‘Single market’ added free movement of persons, capital and services. Key UK policy objective. ‘European Union’ then added Justice & Home Affairs + Common Foreign & Security Policy. Euro-zone - a decision by 15 Governments that 11 should adopt the Euro as their currency from 1/01/99 Journalistic shorthand “Europe” is confusing

Economic or Political? Economic aims prevail in founding treaties Majority of Community legislation and Commission powers initially in economic areas Major projects are often of an economic nature: Common Market, Euro, etc ECSC economic in nature, but politically motivated Treaty of Rome calls for “an ever closer Union” between the peoples of Europe: politically motivated Maastricht Treaty added dimension of Political Union EU constitution debate Economic integration as a means to an end, not an end in itself Political integration as a spill-over from economic integration Primary aim of European integration: safeguard peace and prosperity in Europe

What does the EU do? Framework for cooperation Rules - decided by States EU on the world stage Foreign and Defence policy Common policies Community legislation Single Market and EMU Regional and structural funding EC – EU Key points to make: EU framework set up by international treaty. Rules on which Institution can take which action and in which way are defined there - by States; Developing EU rules, applying to 380 million people and over 20% of world GDP has external effects Policies: these create opportunities, but also bring responsibilities. Funding - EU budget in perspective. UK budget over £350 billion is 5 or 6 times bigger.

(million inhabitants) Population (million inhabitants)

Surface area in 1000 ha

Share of world trade in %

Financial assistance for Central and Eastern Europe (Pre-accession assistance)* * EC programmes excluding bilateral aid

European Union European Community Common Foreign and Security Policy Justice and Home Affairs Common Policies (e.g. agricultural, social, commercial, environmental, competition, development, etc.) Monetary Union Citizenship of the Union All areas of foreign policy European Security and Defence Policy Asylum and Immigration External border control Judicial cooperation Police cooperation and Europol

History of European Integration End of World War II Marshall aid for Europe linked to the condition of international cooperation in Europe 1950: Schuman Plan France and Germany pool their coal and steel resources under a single supranational framework: European Coal and Steel Community (ECSC) New markets for German heavy industry More coal and steel supply for France Joint control of war-relevant branches industry increased transparency and reduced mutual fear Italy, The Netherlands, Belgium and Luxembourg joined, too “High Authority” of the ECSC predecessor of today’s Commission 1952-54: European Defence Community fails to materialise, but economic cooperation succeeds

History of European Integration 1958: The Founding Treaties Success of ECSC prompts members to extend cooperation to all areas of the economy Treaty establishing the European Economic Community Creation of a customs union and, subsequently, a single market by 1970 Euratom: Cooperation in matters of nuclear energy ECSC Treaty continued Creation of the European Economic Community (EEC) 1968: Werner plan suggests monetary union by 1980 1969: The Hague summit Council confirms extraordinary success in setting up common market, further integration decided 1973: First enlargement: the UK, Ireland and Denmark join the EEC 1973/4: Economic crisis, EEC development in stagnation, plans for monetary union abandonned

History of European Integration 1974: European Council begins to meet informally, European Political Cooperation launched to coordinate foreign policies (outside the Treaty Framework) 1979: European Monetary System and Exchange Rate Mechanism set up 1979: First direct election of the European Parliament 1981: Second enlargement: Greece joins EEC 1981-85: Revival of European integration dynamics: Genscher-Colombo plan, Solemn declaration on European Unity, Spinelli draft Treaty on European Union 1984: Fontainebleau Council resolves British budget crisis: “I want my money back” (Margaret Thatcher) 1985: Commission White Paper on “Completing the Single Market” suggests some 300 measures to be implemented by 1992 1985: Schengen agreement (abolishing border controls within EEC) 1985: Delors Commission takes office 1986: Third enlargement: Spain and Portugal join the EEC

History of European Integration 1986: First Treaty revision: the Single European Act Creation of the European Community by merging the three separate Communities Formal recognition of European Council as EC institution First mention of foreign policy competence for EC More powers for the European Parliament 1989: European Council lays basis for monetary union 1989-91: Iron curtain opened, revolutions in Central and Eastern Europe and German re-unification change political and security situation in Europe almost overnight, 1990-91: EC opts for “widening before deepening”: Two Intergovernmental Conferences prepare moves towards monetary and political union and conclude by signing the Maastricht Treaty 1991: First “Europe Agreements” signed with Central and Eastern European Countries, all of which applied for EU membership between 1990 and 1996 1992: Single Market virtually completed

History of European Integration 1993: Maastricht Treaty enters into force European Union Monetary Union Common Foreign and Security Policy (CFSP) Cooperation in Home and Justice Affairs European Parliament gains co-decision and blocking powers 1994: European Monetary Institute begins operating 1995: Fourth enlargement: Sweden, Finland and Austria join the EU 1995: New Commission under Jacques Santer 1995: Schengen agreement enters into force between 7 countries 1997: Amsterdam Treaty signed Institutional reform largely postponed Amendment and extension of procedures for CFSP New IGC before wide enlargement 1998: Accession negotiations opened with Cyprus, the Czech Republic, Estonia, Hungary, Poland and Slovenia 1998: European Central Bank operational, participants of EMU identified

History of European Integration 1999: Final stage of monetary union: Euro introduced and exchange rates fixed between 11 participating countries. 1999: Santer Commission resigns over maladministration scandals 1999: Berlin European Council agrees financing arrangements for 2000 – 2006 (Agenda 2000), allowing for the possibility of eastern enlargement. Romano Prodi invited to head new Commission 1999: Helsinki Council decides to open accession negotiations with remaining candidate countries 2000: Lisbon European Council sets aim of becoming the most competitive knowledge-based economy in the world 2000: Nice Treaty Institutional arrangements for an enlarged EU Important issues left unresolved and to be dealt with during the “post-Nice process” 2001: Greece becomes 12th country to participate in EMU 2001: Ireland rejects ratification of Nice Treaty 2001: EU decides to strengthen justice and police cooperation after 11 September 2001: Laeken European Council adopts Declaration on the future of Europe and convenes a Convention on the Future of Europe 2002: Monetary Union completed: Euro coins and notes introduced