1. Environmental Policy
Sustainable development a key pillar of the Lisbon strategy
‘meeting the needs of the present without compromising the ability of the future generations to meet their own needs.’
Highly regulated area of EU policy in order to avoid distortions of the single market
Green member states (Germany, Denmark, Netherlands, Finland, Sweden)
Amsterdam Treaty
Environmental protection integrated into EU policies and activities
Co-decision procedure
Exceptions to EU rules

2. Environmental Policy Problems of enforcement
Uneven implementation
Commission relies on national governments for information
Effects of 2004 enlargement
International dimension
EU party to international environmental agreements on behalf of member states
Kyoto Protocol
European Emissions Trading Scheme
Conflict with United States

3. Turkey and Environmental Policy
70 billion euros spending necessary
40% of industrial plants have waste management facilities compared to 95% in EU.
Waste production per person is 1,35kg, compared to 0,35kg. in Germany.
According to recent UN report on Climate Change, Turkey’s emissions have increased 72% in , the fastest rate of growth in the world.
Turkey not party to Kyoto Protocol.

4. Economic and Monetary Union
One market one money
European Monetary System (EMS)
Mark the unofficial anchor
Re-alignments
Three stage approach
Stage 1: free capital movement
Stage 2: Launch of European System of Central Banks
Stage 3: monetary union (irrevocably fixed exchange rates, transfer of monetary authority)

5. Economic and Monetary Union
Gains from EMU?
EU is not an optimum currency area.
Criteria for Stage 3
Price stability
Budgetary discipline
Currency stability
Interest rate convergence
currency crisis
Absence of realignments since 1987
Ratification crisis, currency speculation
Mark increases in value, lira and pound weak
Bundesbank unwilling to support weak currencies
Lira devalues, Britain pulls out of EMS.
EMS band widened to 15%.

6. Economic and Monetary Union
Meeting the criteria
Currency crisis strengthened political will in EMU
Germany’s tight monetary policy
Stage 3 postponed.
European economic recovery mid-1997.
Creative accounting
Political will in worst performers
Only Greece unable to meet

8. Economic and Monetary Union
Managing EMU
Two-tier system
ERM II between participating and non-participating countries (15% margin)
Sustainability
Stability and Growth Pact
International exchange rates
Selection of ECB president
Poor economic performance in Germany