The European Union (EU)

What is it? The European Union (EU) is a family of democratic European countries, committed to working together for peace and prosperity. It is not a State intended to replace existing states, but it does represent a greater compromise of sovereignty than any other international organization. The EU is unique; its Member States have set up common institutions to which they delegate some of their sovereignty so that decisions on specific matters of joint interest can be made democratically at European level. This pooling of sovereignty is also called "European integration" 

Background… post WWII governments.

West Germany By the 1950’s, West Germany had evolved into a stable two-party democracy [Christian Democratic Union (CDU) and Social Democratic Party (SPD)]. Konrad Adenauer (CDU) (Chancellor: 1949-1967) led W. Germany towards closer ties with the US and the other W. European nations.

West Germany, continued Following the death of Adenauer, Willy Brandt (SPD) took over and began a process called Ostpolitik, which meant he tried to open diplomatic contacts and with Eastern Europe. Brandt formally recognized E. Germany and accepted the post-war settlements in the east, thus easing tensions with the USSR, Poland and Czechoslovakia.

Post-war Italy Following WWII, Italy adopted a new constitution which brought the Italian monarchy to an end and created a democratic republic (which still is there today). Two major parties dominated the new government: the communists (because they had been anti-fascist during the war) and the Christian Democratic Party. Italy remained in the W. European bloc.

Post-war France The 4th French Republic was formed after WWII, but it was plagued by the frequent changes in government ministries and by factionalism. France had many small parties and so they all had to rely on multi-party coalitions to implement their policies. Women in France voted in parliamentary elections for the first time in 1946.

Fifth French Republic Using the Algerian crisis as a pretext, DeGaulle created the 5th French Republic in 1958, giving the French President much more power. DeGaulle used his power to build an independent France and to try to make France somewhat independent of America.

Economic Recovery in Western Europe Marshall Plan aid was used to provide the financial underpinnings for the post-war economic recovery and expansion of W. Europe. This growth lasted until the economic downturn of the early 1970’s.

Economic Recovery For approximately a decade after the war, worker’s wages failed to keep up with economic growth. To offset the potential social problems this could have caused, most W. European governments provided social welfare protection programs for their citizens.

Post-war Great Britain The British Labor Party tried to direct national policy toward solving many problems, such as inadequate housing for workers, poor safety standards and wages in industries, and lack of security in employment. The Labor Party concentrated on many issues that had been big problems since the industrial revolution.

Britain, continued To avoid social unrest, the government enacted a variety of reforms. The British government nationalized the Bank of England, the railways, the airlines, and the coal & steel industries. The government also established old-age pensions, unemployment insurance, allowances for child-rearing, and the National Health Service.

Reforms in Europe France and West Germany also faced many of the same social and economic problems that were found in Britain. The French communist party was somewhat powerful after WWII and forced many socialist reforms. West Germany also adopted many similar reforms to bring recovery and stability after the war.

The Cost of Reform The economic cost of these social & economic reforms was long debated. Because the 1990’s process of globalization often had a negative effect for the nations of W. Europe, (with their high wages and very comprehensive social welfare programs), they often found it much harder to compete in the global marketplace. Under Margaret Thatcher, there was a significant rollback of the Br. welfare state.

Implementation of Economic Reforms 1951: Formation of the European Coal & Steel Community. Goal: to coordinate the production of coal & steel and to prevent some of the economic competition that had served as a cause for previous 20th century wars.

Economic Reforms, cont. 1958: Formation of the European Common Market (now the European Economic Community--EC) The EC was established to eliminate custom duties among the participating nations and to establish a common tariff on imports from the rest of the world.

European Union 1991: Members of the European Union (European Parliament) signed the Maastrict treaty in 1991 in Maastrict, Netherlands. Goal: to establish a common European currency and a central banking structure by 1999. The Euro is currently in use in member nations.

Map 30–1 THE GROWTH OF THE EUROPEAN UNION This map traces the growth of membership in the European Union from its founding in 1957 through the introduction of its newest members in 2004. Note that Turkey though having applied for membership has not yet been admitted.

History of the EU Phases of growth The historical roots of the European Union lie in the Second World War. Idea of European integration conceived to prevent such killing and destruction from ever happening again First proposed by the French Foreign Minister Robert Schuman in a speech on May 9, 1950. This date, the "birthday" of what is now the EU, is celebrated annually as Europe Day Phases of growth Initially, the European Economic Community (EEC) consisted of just six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands (1958) European Communities (EC) (1967) Denmark, Ireland and the United Kingdom joined in 1973 Greece in 1981 Spain and Portugal in 1986 European Union (EU) (after 1992) (Maastricht Treaty) Austria, Finland and Sweden in 1995 Largest enlargement took place with 10 new countries joining May 9, 2004

Creation of the EU

GROWTH OF THE EU

GROWTH OF THE EU Admission of Romania and Bulgaria 2007 Croatia and Macedonia are new candidates Major debates about Turkey

D O M A I N ? CORE ANTICIPATED EXPANSION ?

CONFIRMATION OF CORE-DOMAIN MODEL

How does it work? There are five EU institutions, each playing a specific role: European Parliament (one of two legislative bodies in the EU; elected by the peoples of the Member States)  Council of the European Union (EU’s highest Legislative Body; has legislative initiative; is made up of representatives appointed by member states according to a population-based allotment)  European Commission (EU’s executive body; one commissioner per country appointed by each government)  Court of Justice (ensures compliance with the EU laws)  Court of Auditors (manages the EU budget) These are flanked by five other important bodies: European Economic and Social Committee (expresses the opinions of organized civil society on economic and social issues)   Committee of the Regions (expresses the opinions of regional and local authorities)   European Central Bank (responsible for monetary policy and managing the euro)   European Ombudsman (deals with citizens' complaints about maladministration by any EU institution or body)  European Investment Bank (helps achieve EU objectives by financing investment projects) 

The Euro The Treaty of Rome (1957) Declared a common market as a European objective Aim: increase economic prosperity and contribute to "an ever closer union among the peoples of Europe" The Single European Act (1986) and the Treaty on European Union (1992) built on this introduced Economic and Monetary Union (EMU) laid the foundations for a single currency name “Euro” was selected in 1995 in January 1999, the exchange rates of the participating currencies were irrevocably set and Euro area Member States began implementing a common monetary policy in January 2002, 12 States in the EU introduced the new euro banknotes and coins

The Eurozone Coins and banknotes 1st used Jan 1, 2002 Cyprus sheduled to join in 2008 Slovakia scheduled to join in 2009 Estonia scheduled to join in 2010 Sweden is technically obliged to join but the EU has made public that they will not enforce this with regard to Sweden Britain and Denmark have a “derogation” releasing them from having to join

Why have bills different sizes & colors? What values are reflected in these “artifacts” that are not found in American money?

What about Switzerland? Swiss are traditionally suspicious of other countries Swiss tradition of neutrality (WWI & WWII) self-imposed permanent armed In some ways Switzerland is like the US Nationalistic government not interested in ceding sovereignty Economic policies are currently designed to protect local industries (esp. agriculture) from foreign competition Initial cost of joining EU (progressive financial redistribution policy would cost the Swiss) Switzerland has embarked on a policy of building bilateral agreements with the EU rather than joining outright

Costs of staying out Export problems Inflation problems Capital flight Access to EU markets is not guaranteed Inflation problems Europeans nervous about the Euro due to expansion of the EU invest in Swiss Francs, inflating the value of the currency and inhibiting Swiss exports Capital flight High construction costs, expensive labor, and skill shortages already make investment in Switzerland unattractive Several multinational corporations, such as Roche, Sulzer and Alusuisse, have frozen planned investment projects in Switzerland Large Swiss companies, including Nestle, are shifting activities out of Switzerland in fear of discrimination by other nations Already four out of five employees of the top 15 Swiss companies work in other countries Scientific information lag EU scientific exchange programs accept Swiss citizens only if they fail to fill such exchanges with persons from EU countries Accumulated bilateral agreements and cooperation may create de-facto incorporation in the EU for Switzerland

The EU in comparative perspective

US dominates entertainment industry in Europe Cultural hegemony?

SUMMARY The European Union is the strongest supranational organization in the world shared currency & financial management legislative, judicial, and executive bodies regulatory and planning bodies The EU is growing geographically, and its growth suggests a core-domain model core and domain are borne out by distribution of income The EU does not appeal to all Europeans (at least not yet) small states in particular seem skeptical Roughly comparable to the US in some ways population slightly larger than that of the US somewhat more densely settled than the US economy is at least as strong as the American economy other social statistics (e.g. literacy, infant mortality & homicide) are as good or better than the US