EUROPEAN UNION Chapter 5

THE MAKING OF THE EUROPEAN UNION  Politics in Action  French Foreign Minister Robert Schuman  Establishing a transnational “community” to govern the coal and steel industries. Copyright © 2016 Cengage Learning. All rights reserved. 2 Section 1

THE MAKING OF THE EUROPEAN UNION  Critical Junctures  European Integration  Begins after WWI  European Coal and Steel Community (ECSC)  European Economic Community (EEC)  Treaty of Rome (1957)  Common Agricultural Policy Copyright © 2016 Cengage Learning. All rights reserved. 3

THE MAKING OF THE EUROPEAN UNION  Critical Junctures  European Union  Economic and Monetary Union  Common Foreign and Security Policy  Justice and home affairs cooperation  1991 Maastricht Treaty Copyright © 2016 Cengage Learning. All rights reserved. 4

THE MAKING OF THE EUROPEAN UNION  Critical Junctures  EU Challenges (after 1989)  Security  Formerly Communist countries  2001 Nice Treaty  2004 “European Convention”  2009 Lisbon Treaty  Global financial collapse Copyright © 2016 Cengage Learning. All rights reserved. 5

THE MAKING OF THE EUROPEAN UNION  Themes and Comparisons  Shrinking national sovereignty  EU role as mediator among states  “Fifth enlargement”  Role as normative Europe  Difficult for ordinary Europeans to understand Copyright © 2016 Cengage Learning. All rights reserved. 6

Where Do You Stand? Being part of a fervent national community is a fundamental part of a person’s identity. Is it dangerous to tamper with this, as the EU has done? Should the EU become a state? What kind of a state? Copyright © 2016 Cengage Learning. All rights reserved. 7

POLITICS AND ECONOMICS IN THE DEVELOPMENT OF THE EUROPEAN UNION  State and Economy: EU Economic Governance  Starting in the Cold War  Bretton Woods system – World Bank, IMF, GATT  Marshall Plan  Council of Europe  European Coal and Steel Community  The Common Market  European Commission  European Court of Justice Copyright © 2016 Cengage Learning. All rights reserved. 8 Section 2

POLITICS AND ECONOMICS IN THE DEVELOPMENT OF THE EUROPEAN UNION  State and Economy: EU Economic Governance  Crisis and Renewal: 1970–1993  British, Irish, Danes join in 1973  Stagflation  European Council  “Eurosclerosis”  Maastricht Treaty Copyright © 2016 Cengage Learning. All rights reserved. 9

POLITICS AND ECONOMICS IN THE DEVELOPMENT OF THE EUROPEAN UNION  Globalization and the EU  World Trade Organization  Treaty of Lisbon 2009 Copyright © 2016 Cengage Learning. All rights reserved. 10

POLITICS AND ECONOMICS IN THE DEVELOPMENT OF THE EUROPEAN UNION  Globalization and the EU  The Great Recession and the Euro zone Crisis  Greek financial crisis  Euro Plus Pact  Treaty on Stability, Coordination, and Governance  Banking Union  Overall loss of confidence in the EU Copyright © 2016 Cengage Learning. All rights reserved. 11

Where Do You Stand? Does EU-style transnational cooperation in response to large economic challenges inevitably create profound political problems? Some EU countries do better than others economically, even in crises as threatening as the recent global financial collapse. Why? Copyright © 2016 Cengage Learning. All rights reserved. 12

EU GOVERNANCE  The Maze of EU Institutions  The European Commission  Administers EU competition policies  Common Agricultural Policy  European single market administration  Development for poor nations  Environmental policy  Budget  Foreign aid and diplomacy Copyright © 2016 Cengage Learning. All rights reserved. 13 Section 3

EU GOVERNANCE  The Maze of EU Institutions  The Council of Ministers  Community method  The European Council Copyright © 2016 Cengage Learning. All rights reserved. 14

EU GOVERNANCE  The Maze of EU Institutions  The European Parliament  President and executive bureau elected  Co-decisions  Citizen initiative procedure  The European Court of Justice  Supersedes law of member states Copyright © 2016 Cengage Learning. All rights reserved. 15

EU GOVERNANCE  The Maze of EU Institutions  Other Institutions  Advisory committees  Court of Auditors  European Investment Bank  Community agencies Copyright © 2016 Cengage Learning. All rights reserved. 16

Where Do You Stand? EU institutions are much more difficult to understand than those of most democratic national states, to the detriment of European integration. If true, why? Copyright © 2016 Cengage Learning. All rights reserved. 17

Where Do You Stand? Imagine you are a European trying to make sense of all this. Would you throw up your hands and revert to your national identity or would you dive headlong into the brave new world of Europe? Copyright © 2016 Cengage Learning. All rights reserved. 18

THE EU AND ITS POLICIES  Building a European Market  Common market  “Four freedoms”  Sometimes blocked by special interests Copyright © 2016 Cengage Learning. All rights reserved. 19 Section 4

THE EU AND ITS POLICIES  Competition Policy  Commission’s negative powers: preventing illegal behavior  Commission’s positive powers: regulating and authorizing  Constantly evolving Copyright © 2016 Cengage Learning. All rights reserved. 20

THE EU AND ITS POLICIES  Agriculture  Common Agricultural Policy (CAP)  Redistributive  Regional Development  Structural funds  Economic and social cohesion policy Copyright © 2016 Cengage Learning. All rights reserved. 21

THE EU AND ITS POLICIES  The Euro and EMU  Economic transparency  Price stability  European System of Central Banks Copyright © 2016 Cengage Learning. All rights reserved. 22

THE EU AND ITS POLICIES  Shared Policies  Globalization and Competitiveness  Social Policy  Environmental Policy Copyright © 2016 Cengage Learning. All rights reserved. 23

THE EU AND ITS POLICIES  Intergovernmental Europe  Encroaching on national sovereignty  Justice and Home Affairs  Intergovernmentalism  Lisbon Treaty (communitization)  Foreign and Security Policy Copyright © 2016 Cengage Learning. All rights reserved. 24

Where Do You Stand? The EU’s institutional system seems to be too complicated to understand and does not work very well. Can the EU survive and thrive? The EU institutions may not be democratically legitimate enough to sustain the EU’s policies. What institutional changes might help to change this? Copyright © 2016 Cengage Learning. All rights reserved. 25

EURO-POLITICS IN TRANSITION  EU now in “young adult” status  Policy challenges:  Foreign affairs and defense  Environment  Market liberalization  Monetary union  Globalization and multipolarity  Great Recession and Eurozone crisis Copyright © 2016 Cengage Learning. All rights reserved. 26 Section 5

Where Do You Stand? Enlargement of the EU to include almost all European countries, ex-communist central and eastern European ones in particular, was bound to bring new difficulties. What are the most important of these difficulties, how has the EU responded to them, and how well have these responses worked? The Euro-zone crisis has left the EU in a difficult situation. EU member states are at odds, many citizens are unhappy, and economic conditions are not promising. How might the EU rekindle public enthusiasm for the cause of integration? Copyright © 2016 Cengage Learning. All rights reserved. 27