The European Union (EU) The World’s Strongest Supranational Organization

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" 

European Coal and Steel Community Founded in 1951 (Treaty of Paris) Purpose was to reduce potential for conflict between the member states by pooling vital resources Fore-runner of the EEC, EC, and EU

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

History of the EU

GROWTH OF THE EU

GROWTH OF THE EU Admission of Romania and Bulgaria set for 2007 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 (elected by the peoples of the Member States)  Council of the European Union (representing the governments of the Member States)  European Commission (driving force and executive body)  Court of Justice (ensuring compliance with the law)  Court of Auditors (controlling sound and lawful management of 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 Euro Jan 1, 2002 Belgium Germany Greece Spain France Ireland Italy Luxembourg The Netherlands Austria Portugal Finland

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

Switzerland an “island”

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

Questions Is Switzerland’s situation in the EU similar to that of the US, in the global political system? Does resisting international cooperation cost more than accepting it? Do countries that guard their sovereignty jealously ironically end up losing power relative to other countries? What is the wave of the future: Strong, EU-style cooperation (multidimensional political, economic, military and environmental) Limited, US-style cooperation (free-trade-ism, political insularity, and unilateral military and environmental policy)

The EU in comparative perspective

US dominates entertainment industry in Europe Cultural hegemony?

The Euro vs the Dollar

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