1. Multinational Organizations
European Union

2. Origins of the EU
Before the end of WW2, Belgium, Luxembourg, and the Netherlands agreed to cooperate economically. They agreed to limit tariffs and quotas in an attempt to foster economic activity. This region is known as the Benelux region.

3. Marshall Plan 1948-52 Primary function of the OEEC:
To accept and distribute funds allocated under
the Marshall Plan
13 Billion $ from U.S. to help
rebuild European countries

4. European Iron and Steel Community-1951
France, Italy, Germany, and Benelux shared:
iron
scrap
coal
finished goods
To maintain peace in Europe
To present a united front against communism
Out-of-date steel plants closed

5. Common Market
Objective - a single market in which the following flow freely:
goods and services
labor
markets
capital
Founders determined that Europe would never go to war again

6. 1973 European Community - 9 Nations
France
Germany
Italy
Benelux
United Kingdom
Ireland
Denmark

7. 1979 European Parliament 410 directly elected representatives (MEPs)
Parliament meets in Strasbourg
New nations joined
1981 Greece
1986 Spain and Portugal
1990 E. Germany
15 Nations

8. 1991 Maastricht Treaty Set goals and 279 directives for 15 nations
Social Compact
Environment
Research
Agriculture
Regional Development
Banking
Foreign Policy

9. Common Agricultural Policy
Huge subsidies to agriculture absorb 50% budget
Inadequate controls lead to corruption
Surpluses sold at a loss

10. European Monetary and Economic Union
Euro - a single European currency by Jan 1, 1999
By 2002 European notes and coins
Complements European market with its free movement of:
people
goods and services
capital

11. Euro Zone (blue nations)
On January 1st, of the 15 nations in the EU decided to adopt a common currency. Some nations (UK, Denmark, and Sweden) chose not to adopt the Euro.
Establishing a common currency has the following benefits:
Eliminating fees for travelers
Making auditing easier for companies

12. Development Areas Under the Structural Funds there are 3 Objectives:
Objective 1: promoting the development of regions whose development is lagging behind;
Objective 2: supporting the economic and social conversion of areas facing industrial decline
Objective 3: supporting the adaptation and modernisation of policies and systems of education, training and employment.

13. Special Problem Areas Political Asylum Non EU Migrant workers
Terrorists
Guns, drugs, rabies,
Fear of Germany
Unemployment

14. Supranationalism
and Devolution

15. Contradiction Devolution- Supranationalism
regions within a state demand political strength and autonomy at the expense of the central government
Supranationalism
three or more states combine for political, cultural, or cultural cooperation

16. Devolution in Europe Scotland Northern Ireland Wales Flemish/French
Kaliningrad
Polish in Belarus
Basques
Catalonia
S. Tyrol
Corsica
Sardinia
Yugoslavia

17. European Union
By 2007, the European Union had grown to 27 members to include members of the former Soviet Union.
Many nations have had to align their legal standards and financial practices to conform to EU regulations.
Norway, Iceland, and Switzerland have all declined membership into the EU in order to maintain sovereignty.
Turkey, Croatia, and Macedonia are candidate countries and awaiting approval from current members.

18. Economic Strategy
European nations face the challenge of competing with other developing regions such as South America and Asia.
Location of factories, industries, and service centers is critical to the future success of the EU.
For example, moving factories to countries that are less developed to reduce the overall cost of production.

19. Economic Strategy
In an effort to gain economic power, the EU practices protectionist policies on the world market.
These policies typically give European companies exclusive rights to production, which in turn increases prices for European consumers.

20. Future of the European Union
Addition of eastern European nations?
Turkey?
Strength of the Euro
Struggle for political unity (central power)
Preserving culture, language, and tradition
Identity: “European” or “French”