© 2011 Pearson Education, Inc. II. MISSION OF THE EU A. Set out in Maastrict Treaty: To eliminate economic barriers between member nations the single market was established in 1993 Reduce tariffs between members, fewer border restrictions, “free trade” Single currency, the euro, launched in 1999 Dollar = $ Euro = €

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EUROPEAN INSTITUTIONS  European Parliament  Council of the European Union  European Commission  Court of Justice  Court of Auditors  European Central Bank (A number of agencies and other bodies complete the system.)

© 2011 Pearson Education, Inc. B. To introduce European citizenship Gives people rights as Europeans that are in addition to the rights guaranteed by their own countries Freedom = mobility: for each and every EU citizen to make it easier to live, study, work or start a business in any one of the EU member states. No discrimination on grounds of nationality.Freedom = mobility: for each and every EU citizen to make it easier to live, study, work or start a business in any one of the EU member states. No discrimination on grounds of nationality.

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Controversial, because individual countries must give up some of their autonomy (self-rule) already occurring – they share defense and environmental policy C. Eventually, become more of a political unit (like “the United States of Europe”)

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And you thought we had problems with political parties…

© 2011 Pearson Education, Inc. D. POLICY AREAS Agriculture Economics Education Environment Energy Food Safety Foreign Policy Human Rights International Aid Science/ Research Trade Transportation

© 2011 Pearson Education, Inc. III. ISSUES A. Since the fall of the Soviet Union in 1991, Eastern European countries (former satellite countries of the Soviet Union) have expressed interest in joining the EU. Is the EU ready? wide gap between economic and political development of eastern and western European countries

© 2011 Pearson Education, Inc. B. The EURO Not all EU members have adopted the Euro – the UK, Denmark and Sweden are eligible but don’t use it. Can the currency be successful without the support of countries like the UK?

© 2011 Pearson Education, Inc. C. Cultural Diversity – how to maintain the cultural identity of member nations With costs in excess of $1 million per day for translations / interpretation alone, will respect for differences be preserved?

© 2011 Pearson Education, Inc. The European Union (formerly the European Community)

© 2011 Pearson Education, Inc. WARM UP How are the United States and the European Union competitors? How can the United States and the European Union work together?

© 2011 Pearson Education, Inc. THE EUROPEAN UNION AND THE UNITED STATES “Our strong friendship is essential to peace and prosperity around the globe. No temporary debate, to passing disagreement among nations, no power on earth, will ever divide us.” President George W. Bush “The relationship between the United States and Europe is the world’s strongest, most comprehensive, and strategically important partnership. The United States, and a united Europe – this is really the indispensable partnership.” President of the European Commission José Manuel Barroso

© 2011 Pearson Education, Inc. PARTNERS IN GLOBAL LEADERSHIP EU and U.S. work together to develop international standards: Fighting terrorism and transnational crime Advancing global trade liberalization Combating piracy and intellectual property violations Spreading benefits of globalization EU and its Member States are helping restore peace and stability in Afghanistan. EU and U.S. work together in the Middle East Quartet to advance the peace process. When the EU and U.S. agree, others tend to follow. EU Commissioner Benita Ferrero- Waldner & U.S. Secretary of State Condoleezza Rice

© 2011 Pearson Education, Inc. SHARED VALUES AND RESPONSIBILITIES Freedom & Democracy Support free elections, good governance, human rights, and the rule of law around the world. Security Cooperate to fight terrorism, limit the spread of nuclear weapons, and work for global peace. Development Together, EU and U.S. provide 80% of global development assistance and an even larger share of global humanitarian aid in times of disaster and conflict.

© 2011 Pearson Education, Inc. A DYNAMIC TRANSATLANTIC ECONOMY EU and U.S. together account for 40% of total global trade (more than $1.5 billion in transatlantic trade every day). The $3 trillion EU-U.S. transatlantic economy employs 14 million workers on both sides of the Atlantic. In 2005, Europe accounted for roughly two-thirds of total global investment flows into the U.S. – by far the most significant source of foreign investment in the U.S. economy.

© 2011 Pearson Education, Inc. European companies are the leading foreign investors in the U.S. The UK, Germany, France, and the Netherlands – top four sources of jobs created by foreign investment in the United States. American companies invest far more in EU countries than in Asia. U.S. businesses make 5 times the profit in the Netherlands - alone - as they make in China. In 2005, EU investments in Texas alone surpassed all U.S. investments in China and Japan, combined. BMW’s assembly plant is South Carolina’s largest private sector employer.

© 2011 Pearson Education, Inc. FUTURE OF TRANSATLANTIC RELATIONS EU and U.S. face common challenges that are global in origin and impact. With global challenges, come global responsibilities. EU and U.S., with our shared values and common interests, are natural partners to give a lead in four key areas: Promote peace, human rights and democracy worldwide. Confront global challenges, including security and non- proliferation. Foster prosperity and opportunity. Advance strategic cooperation on energy security, climate change and sustainable development.

© 2011 Pearson Education, Inc. “Since no single nation can efficiently and effectively deal with global challenges such as climate change, counterterrorism, non-proliferation, pandemics and natural disasters on its own, we commit ourselves to strengthening our cooperation to address these challenges.” EU-U.S. Summit Declaration Vienna, July 2006

© 2011 Pearson Education, Inc. EDUCATION & RESEARCH EU and U.S. cooperate on science and technology education through: Exchange programs More than 700 institutional partnerships Vocational training Scholarship programs R&D cooperatives EU and U.S. provide joint or dual higher educational degree programs. EU funds Centers of Excellence at leading U.S. universities. EU supports R&D to increase Europe’s growth and global competitiveness.

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PROBLEMS? “PIGS” - Portugal - Italy/Ireland - Greece - Spain Using the articles, discuss the questions with your teammates.

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