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The European Union 2
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The European Union
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Enlargement
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Enlargement Increase in the membership of the EU, May 2004, from 15 – 25 members More states wanting to join – Turkey, Ukraine, Croatia, Romania Impact Greater opportunities Greater diversity Greater challenges?
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Enlargement Enlargement brings new countries with new problems
Poverty, unemployment, regional economic problems, different cultures and different employment regimes present problems to EU policy makers
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Constitution The enlargement of the EU has necessitated negotiating a new Constitution – not just for now but to cater for future expansion of the EU Decision making – how should it be made and by who? Voting rights of members? Majority voting? Vetoes? Subsidiarity – the principle that decision making should be made as far as possible at local level rather than the EU legislating for all But: Economic impact – EU already dominates legislation in a wide variety of areas
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The Role of the EU
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The Role of the EU What should the role of the EU be?
Enabling economies and the free market to operate more efficiently? Legislating to correct market failure? Acting as a benevolent dictator for the common European good? Two key areas of EU policy with regard to the Social Agenda:
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Poverty
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Poverty in the EU Impact of a Europe-wide ageing population – pensions, health care Discrimination – against ethnic minorities, women, the elderly, disabled Establishing the extent of welfare provision – incentives v protection (safety net) Establishing a minimum income scheme – the lessons of the CAP? The Common Agricultural Policy (CAP) was successful in raising agricultural output across Europe but at a huge cost to EU taxpayers. Could intervention by the EU in relation to minimum income schemes have the same results; is such intervention desirable and do the ends justify the means? Copyright: Stock.Xchng
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Unemployment
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Unemployment in the EU Several members with unemployment problems
Fiscal, supply side and monetary policies can be used by the EU to combat such problems What are the consequences?
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Unemployment in the EU Policies that affect the labour market could help protect some but cause problems to others Will such intervention lead to a less flexible labour market? Will this limit the freedoms provided by the single market to encourage free movement of labour across the Union? Will it lead to government failure on a Europe-wide scale?
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