1 EUROPEAN ROUNDTABLE V The EU in Crisis? Difficult Choices Between Integration and Expansion February 4, 2006

2 Some background on the EU Vital Statistics The institutional framework Accomplishments Symptoms of a crisis

3 Vital Statistics Demography Economy Labor Markets Education and Research Technology and Daily Life

4 Demography EU 15EU 25US Population (in Mill.) % < 15 years % > 65 years Fertility rate Infant mortality (per 1000 live births)

5 The Economy EU 15EU 25US GDP (in Bill €) Annual GDP growth Share of economy (%) Agriculture Industry Services

6 Labor Markets EU 15EU 25US Unemployment 1/05 (% of labor force) Unemployment under age Employment rate (% of yrs old employed)

7 Education and Research EU 15EU 25US % of population with higher ed. Degrees Public expend. on educ. as % of GDP Expend. on R&D as % of GDP

8 Technology and Daily Life Number per 100 inhabitants EU 15EU 25US Cars Mobile phones PCs Internet users534855

9 EU: The Institutional Arrangements The European Council (of heads of state & government): Setting European agenda The Council of the European Union (Council of Ministers): Senior Co-legislator The European Parliament (731): Junior Co-legislator The European Commission: Executive branch – President & 24 Commissioners The European Court of Justice

10 Accomplishments Assuring internal security for Europe Pooling economic strength and opening markets Creating a respectable monetary union Building a functioning institutional framework Bringing about a major expansion

11 Accomplishments Assuring internal security for Europe Pooling economic strength and opening markets Creating a respectable monetary union Building a functioning institutional framework Bringing about a major expansion

12 Symptoms of a Crisis 1.The failure of the Constitutional Treaty 2.Apprehension over further expansion 3.Unease over unemployment, labor migration, and demography 4.Conflicts over budget, agricultural subsidies, and the future of international trade 5.Some growth in skepticism and disillusionment

13 Schedule of Topics Introduction: Old and New Challenges for the EU: The Continuing Tension Between Expansion and Integration – Hans N. Weiler The Failure of the Constitutional Treaty: Causes and Consequences – Christophe Crombez Further Expansion of the EU: Divisiveness over Turkey’s Membership – Meredith Heiser-Duron Discussion Employment, Labor Migration and Demography: Facts and Fears – Marina Bourgain Budget, Agriculture, Trade: The EU’s Intractable Triangle – Timothy E. Josling Discussion Conclusion