The European Union

What is the European Union? The European Union (EU) is unique in the international system. Some characteristics of an international organization. Created through treaties among sovereign states Many functions of a state Provides a greater number of public goods and enforces a wider range of more detailed contracts than any other IO in the modern era

How big is the European Union? The land area is slightly less than half of the United States. The EU has about 460 million citizens, just over 1.5 times the US population.

Members of the EU 1953: Belgium, France, Germany, Italy, Luxembourg, Netherlands 1973: Denmark, Ireland, United Kingdom 1981: Greece 1986: Portugal, Spain 1995: Austria, Finland, Sweden 2004: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia 2007: Bulgaria 2013: Croatia http://europa.eu/about-eu/countries/member-countries/index_en.htm

Beginnings of European Integration 1944: Anti-Nazi resistance movements call for “federal union of European peoples” after the war 1948: Transnational NGO, International Committee of the Movements for European Unity, holds international congress

Beginnings of European Integration 1948 - US supports creation of Organization of European Economic Cooperation to administer Marshall Plan aid 1949 - Council for Mutual Economic Assistance- COMENCON founded for economic cooperation and integration among USSR and its satellites

Beginnings of European Integration Coal and steel producing regions of Alsace-Lorraine part of frequent wars between France and Germany Economic production devastated by WWII 1951 - European Coal and Steel Community eliminated trade barriers on coal, steel, and iron ore Explicitly intended as first step towards a “European federation indispensable to the preservation of peace”

History of European Integration The EU gradually evolved through a series of treaties. 1951: European Coal and Steel Community (ECSC) 6 members: Belgium, West Germany, Luxembourg, France, Italy and the Netherlands. 1957: Treaties of Rome were signed, creating European Atomic Energy Community (EURATOM) the European Economic Community (EEC). Removal of all intra-European tariffs to form common market and customs union (common external tariffs)

History of European Integration 1967: The ECSC, EURATOM, and EEC merged. 1985: Single European Act Removal of all non-tariff barriers to mobility of people, goods, services, and capital

European Union 1992: Treaty of Maastricht Makes the EEC into the European Union Cooperation on defense, justice, and domestic policy 2002: Common currency, the Euro, introduced in twelve member countries UK, Denmark, and Sweden opt out.

Broadening and Deepening 2003: The Treaty of Nice Expands qualified majority voting (limits states’ veto power) 2004: Ten new states from eastern Europe, including former Soviet republics, join the EU. Before joining, new members must adopt and adjust to body of EU law (acquis communautaire).

Structure of the EU Legislative Branch Executive Branch European Parliament (popularly elected but little power) Council of Ministers (represents national governments) Executive Branch European Commission (main bureaucracy) Council of Auditors (budget) European Central Bank (monetary policy) Judicial Branch European Court of Justice (reviews national law)

Implementing integration EU directives are proposed by the Commission and approved by the Council of Ministers. National governments then pass their own laws to implement the directive. EU regulations are directly binding. Basic regulations come from the Council of Ministers. Executive regulations come from the Commission. ECJ can hear complaints from the Commission or member states if a member does not implement EU law.

Fully integrated issue areas Trade policy No tariffs with EU, common tariffs with other trading partners Collective negotiation in WTO Competition policy Limitation on monopolies, etc. Monetary policy Single interest rate from Central Bank Requires constraints on taxation, spending, deficits

Mostly integrated issue areas Consumer health & safety regulations Harmonized rules allow for economies of scale Free movement of people Citizens of EU states can travel & work in other EU states without visas or passports Police cooperate in tracking across borders Does not fully include UK, Ireland, or 10 new members Some free movement suspended after terrorist attacks on London 2005

Least integrated issue area Foreign and security policy Ireland, Austria, Finland, Sweden are neutral Must compete with NATO for relevance So far, mostly focused on humanitarian intervention Division over 2003 US invasion of Iraq

EU Constitution Negotiated between member states in 2004 Intended to simplify institutional structure Necessary for further expansion Creates President and Foreign Minister of EU 5/29/2005 – Rejected by referendum in France 6/1/2005 – Rejected in Netherlands

Realism on the EU US security guarantees after WWII freed European states from concerns about relative gains. Enlargement locks in Eastern Europe against future Russian encroachment. Classical realists: Integration will collapse in the absence of US guarantees. Neo-realists: European states will ally to balance against US unipolarity. Does not require deep integration

Neo-liberalism on the EU European integration was intended to Create wealth Make war between European states too costly to contemplate Enlargement expands the markets and allows for further specialization. European integration will continue as long as there are efficiency gains to be made by supranationalizing policy. Often requires side-payments/issue linkage

Constructivism on the EU An attempt to create a common identity. Flag created in 1955 Anthem adopted in 1972 (Beethoven’s “Ode to Joy”) Enlargement expands the EU to include all of the region of shared history and identity. Turkey, a Muslim state, is “Other”, so may never join Integration continues through development of European identity, particularly in elites.