3. History of the European Union (EU) 1948 – Organization for European Economic Cooperation (OEEC) founded to administer U.S. Marshall Plan 1957 – Treaty of Rome established European Economic Community (EEC) 1967 – European Community (EC) established

4. History of the European Union (EU) 1991 – The Maastricht Treaty – laid down main elements for future European gov’t Single currency, common foreign & security policy, common citizenship, & an EU parliament with more extensive powers Ratified in 1993 – called it the EU

5. Political Institutions 1. EU Parliament – 786 by 2009 (directly elected by pop.) Based in France, Belgium, and Luxembourg EU Parl. passes laws, monitors budget, & monitors EU institutions 2. EU Council – ministerial representations from each member state

6. Political Institutions Council passes laws, approves EU budget, coordination of economic policies, develops foreign policy, and coordinates anti-crime strategies 3. EU Commission – 20 commissioners appointed by each member state every 5 years (over 21,000 employees) Proposes legislation, implements EU policies, law enforcement, international coordination

7. Financial Institutions 1. European Central Bank – inflation target of less than 2% per year, sets short term interest rates for the whole eurozone area Implements and monitors Eurozone monetary policy 2. European Investment Bank – “owned” by member states

8. Financial Institutions Raise finance through financial markets Invest in projects to promote aims of EU – large-scale projects 3. Court of Auditors – monitors legality and efficiency of EU income & expenditure

9. Judicial Institutions Court of Justice – one judge from each member state Interprets and applies EU legislation The Commission or a member country can bring other member countries or the Commission to the court for failing to meet treaty obligations

10. EU Activities Long list includes agriculture, fisheries, environment, regions, finance/economics, aid, employment, energy, etc. CAP – Common Agricultural Policy – food quality, food safety, animal welfare, farmer welfare/incomes, employment in agriculture

11. Activities

12. Finance/Economics Euro – monitor introduction & development Tax harmonization – reduce differences in taxes throughout the single market to aid competition & transparency Single Market – free movement of goods, services, labor, & capital between member states

14. Council Voting Methods UNANIMITY – used to be the main voting method; used in matters exclusive to the justice & home affairs & common and foreign security policy Certain financial and constitutional matters also require unanimity as do some legislative procedures

15. Council Voting Methods SIMPLE MAJORITY – each member state has one vote & a simple majority of 8 is required Restricted mainly to minor procedural matters & to certain measures covered by the Common Commercial Policy (about tariffs)

16. Council Voting Methods QUALIFIED MAJORITY VOTING (QMV) – each state is given a number of votes, roughly in proportion to population Covers broad range of policy decisions Adoption of acts requires 62 votes (out of 87 total or 71.3%) in favor, cast by not less than 10 member states

17. Community Legislative Instruments REGULATIONS – decisions which have direct legal force in member states with immediate effects Mostly concerned with technical decisions, particularly relating to CAP Binding in their entirety and directly applicable

18. Community Legislative Instruments DIRECTIVES – set out principles of legislation, but left up to member states to implement through national law Time limit left to do this is usually 2-3 years Once passed into national law, they are binding & expected to have same results in member states that apply

19. Community Legislative Instruments DECISIONS – similar to regulations but addressed to governments, undertakings, or individuals RECOMMENDATIONS and OPINIONS – not binding; used to provide additional information on specific issues