1. European Institutions and context Joy Johnson

2. 2 Europe provokes divisions across political spectrum “In Europe, not run by Europe”

3. 3 BRITAIN’S RELATIONS WITH EUROPE: TIMELINE 1951Creation of ECSC under Treaty of Paris 1957Creation of EEC under Treaty of Rome 1960sDe Gaulle rebuffs Britain’s application (1963, 1967) 1973Britain (+ Den, Ire) members of EEC 1986Deepening of internal market: Single European Act 1992Deepening of political union: Treaty on European Union (‘Maastricht’) – paved the way for single currency 1997Treaty of Amsterdam - S(((SSScScSchengenSchngenSchengenSchengenSchengen 2000Treaty of Nice – paved the way for enlargement 2007Treaty of Lisbon – created President European Council NB. Similar material in Kavanagh et al, 2005: Table 8.2:

4. Amsterdam Treaty freedom of movement one of the main objectives of the European Union, the Treaty of Amsterdam agreed to incorporate Schengen into EU law. 4

5. Question is: ‘to stay in’ Former Prime Minister Margaret Thatcher originally yes supporter in the UK’s first referendum in 1975 in the then European Economic Community (Common Market) 67% of voters supported the Labour government's campaign despite several (Labour) cabinet ministers having come out in favour of British withdrawal. 5

6. Thatcher says No, No, No Former Prime Minister supported single market (Single European Act) Greater integration (contents of the Maastricht treaty – moving to ever greater union) drew a No, No, No Her Chancellor (Lawson) and former Foreign Secretary (Howe) resigned Political elite ousted her from office over Europe (For the masses it was the Poll Tax) 6

7. Conservative’s fault line Her successor John Major’s premiership was riven with division by Maastricht Maastricht created European Union based on 3 pillars – European Communities; a common foreign and security policy; cooperation in the fields of Justice and Home Affairs (Nugent p 85 - 105) Economic and Monetary Union leading to single currency Debacle of Black Wednesday with Britain thrown out of the Exchange Rate Mechanism (September 1992) 7

8. John Major tried to appease Eurosceptics opted out of the Social Chapter –included the Working Time Directive (48 hours working week) eventually signed by Tony Blair 8

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10. Exchange Rate Mechanism (ERM) Linked the values of participating European currencies and limits the extent of their fluctuations Britain signed up in 1990 (Nigel Lawson had previously shadowed the German deutschmark and spectacularly fell out with his boss Margaret Thatcher) 10

11. Black Wednesday Britain kicked out in 1992 Panic set in after stock market speculation and interest rates shot up to 15% in one day Pound sterling found itself in an unsustainable position during the months after signing up to ERM Value of the pound against the dollar too high affect on exports market Membership of ERM meant that Chancellor couldn’t devalue the pound to remedy over valued pound (Morrison p 302) 11

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13. Black Wednesday Lamont statement on the day Useful chapter putting ERM into its contemporary context Gowland et al, Britain and European Integration Since 1945) 13

14. European Monetary Union Single currency - Euro zone Gordon Brown’s five tests (economic, political and social) Brown concluded that interest rates appropriate in one country were not necessarily right for another Countries not growing in harmony Lack of flexibility to adjust economies to crises Useful chapter Brown, Beyond the Crash 14

15. EU less toxic David Cameron has sought to make EU less toxic for the Conservative Party HOWEVER Global financial crisis – problems - Eurozone Irish Bailout – In Britain’s national interest Angela Merkel seeking to revise treaty rules (Lisbon) to handle any future financial crisis Recent decisions enraged Conservative backbenchers (and others) Loss of Parliamentary sovereignty 15

16. Budget increase down from 6% to 2.9 what happened to the freeze promise? 16

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18. 18 DELEGATION OF POWER TO EU NOT NECESSARILY DETRIMENTAL Supra-national ‘collective action’  National government may not be able to meet citizens’ needs on some (international) policy issues - Environmental pollution, immigration, crime EU ‘fit’ with Britain  EU sometimes doesn’t ‘fit’ (eg. social policy)  … but sometimes it does (eg. single market).

19. EUROPEAN INTEGRATION  Incremental progress  Economic integration followed by political integration Britain/Denmark/Sweden opted out of Eurozone  domestic concerns over ‘political union’, loss of sovereignty  Grand theory (Neill Nugent govt and politics of the EU p 557 – 576) 19

20. Structures and Procedures in EU Supranational (e.g Single Market) Intergovermental (e.g. Defence) 20

21. 21 KEY EUROPEAN UNION INSTITUTIONS European Commission (President Jose Barruso) http://europa.eu/ European Parliament (736 MEPs) Council of Ministers (eg Ecofin)

22. European Commission Regarded as EU Civil Service Headed by President currently Jose Manuel Barruso Has 27 commissioners appointed by nation states (past UK - Peter Mandelson, Chris Patten, Neil Kinnock) Overseas EU laws, proposes new ones Can’t legislate 22

23. European Commission’s responsibilities draft budget formulating policy, overseeing its implementation Guardians of the ‘treaties’ If member states fail to implement a policy the Commission might bring the matter to the European Court of Justice (ECJ) 23

24. 24 EUROPEAN PARLIAMENT Powers of ‘co-decision’ with Council Power to reject Commission Powers to reject EU budget

25. European Parliament The European Parliament is made up of 736 Members elected in the 27 Member States of the enlarged European Union. Co-decision with Council of Ministers making following Amsterdam and Nice Treaties. Judged necessary by enlargement. (except in areas of policy that remained inherently inter-governmental) MEPs elected by PR – UK party regional list system 72 UK MEPs were elected in the European Parliament elections on 4 June 2009 for 5 year term Sits in Brussels 3 weeks, 1 week in Strasbourg 25

26. Council of Ministers Made up of government ministers from member states ministers attend the council depends on the subject under discussion (e.g. An Agricultural Council) Chancellor attends Economic Council of Finance Ministers (separate meeting of Eurozone ministers but Chancellor still attends key meetings i.e. Irish bailout) 26

27. European Council Is not an institution as such but it does have a pivotal role to play within the EU Strategic role with regard to structural funding or englargement Government of member states not only are represented in the Council they also implement EU policy 27

28. European Court of Justice (ECJ) Resolves disputes for example between member states and the EU Based in Luzembourg Has its own President (elected by their fellow judges on 3 year term) One judge per member state 27 (13 hear one case at a time) Since Lisbon Treaty assisted by 11 advocate-generals Judgements require unanimity 28

29. ECJ Areas of law covered Free trade and free movement of goods and services in the EU single market Employment law and the European Social Chapter Competition law (cartels, monopolies, mergers and acquisitions) Public sector regulation 29

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31. European Central Bank (ECB) Established 1 January 2002 – the day euro notes and coins issued the 12 EU member states. Based in Frankfurt Britain, Sweden and Denmark opted out of single currency 31

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33. The European Central Bank (ECB) sets monetary policy for all 12 nations that are members of the euro. It is the successor of the European Monetary Institute - set up to oversee the transitional second stage of monetary union. The ECB works with national central banks within what is called the European System of Central Banks. Its key tasks are to: Define and implement monetary policy, such as setting interest rates; Maintain price stability; Support economic policies of member states as long as they do not affect price stability; Conduct foreign exchange operations and look after the official foreign reserves of the member states; Promote smooth operation of payment systems that link banks. 33

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35. Responsibilities Define and implement monetary policy, - setting interest rates; Maintain price stability; Support economic policies of member states as long as they do not affect price stability; Conduct foreign exchange operations and look after the official foreign reserves of the member states; Promote smooth operation of payment systems that link banks. 35

36. 36 : OPTING OUT OF COLLECTIVE AGREEMENTS  1992: Monetary union; ‘Social Chapter’  1993: ‘Working Time Directive’  1997: Immigration and asylum  2007: Police and judicial cooperation on crime

37. Schengen As freedom of movement is one of the main objectives of the European Union, the Treaty of Amsterdam agreed to incorporate Schengen into EU law. UK opted out 37

38. Lisbon Treaty Under EU rules, the treaty had to be ratified by all 27 member states before coming into force. Ireland voted no in a referendum – in 2 nd referendum voted yes The last country to ratify the treaty was the Czech Republic, which completed the process on 3 November 2009. The treaty became law on 1 December. 38

39. Lisbon Treaty Created two new top jobs - EU Council president and EU foreign affairs chief Boosted powers of European Parliament, making co- decision with governments the norm Paved way for new EU diplomatic service, headed by UK's Baroness Ashton Took eight years of negotiation, including two Irish referendums 39

40. Lisbon Treaty The new President of the European Council - Belgium's Herman Van Rompuy - chairs EU summits though many EU ministerial meetings will still be chaired by the country holding the six-month presidency - currently Spain 40

41. 41 Herman van Rumpuy President & Baroness Ashton Foreign Affairs

42. Hostile media 42

43. Lisbon Treaty Treaty often described as an attempt to streamline EU institutions to make the enlarged bloc of 27 states function better. Opponents see it as part of a federalist agenda that threatens national sovereignty. 43

44. After Lisbon The Parliament will be on an equal footing with the Council - the grouping of member states' governments - for most legislation, including the budget and agriculture – ‘co-decision’. 44

45. After Lisbon Removal of national vetoes in a number of areas, including fighting climate change, energy security and emergency aid. Unanimity will still be required in the areas of tax, foreign policy, defence and social security. 45

46. After Lisbon Removal of national vetoes in a number of areas, including fighting climate change, energy security and emergency aid. Unanimity will still be required in the areas of tax, foreign policy, defence and social security. 46

47. After Lisbon A redistribution of voting weights between the member states, phased in between 2014 and 2017 based on a "double majority" of 55% of member states, accounting for 65% of the EU's population. 47

48. After Lisbon – New powers New powers for the European Commission, European Parliament and European Court of Justice, for example in the field of justice and home affairs. Parliament will be on an equal footing with the Council - the grouping of member states' governments - for most legislation including the budget and agriculture 48

49. After Lisbon Removal of national vetoes in a number of areas, including fighting climate change, energy security and emergency aid. Unanimity will still be required in the areas of tax, foreign policy, defence and social security. 49

50. After Lisbon The new European Parliament was elected in June 2009 under the existing Nice Treaty - 736 MEPs - down from the previous 785. Under the Lisbon plan, the number will be fixed at 751 50

51. After Lisbon Qualified Majority Voting Some extensions of qualified majority voting in the European Council are already in place, but plans to redistribute voting weights have been delayed until after 2014. 51

52. EU in survival crisis...the EU Council president, Herman Van Rompuy, warned that the European Union was in a "survival crisis" over eurozone debt problems, as the economic health of members such as the Republic of Ireland and Portugal came under fresh scrutiny. Mr Van Rompuy said that if the euro failed, so too would the EU. (BBC News) 52

53. Referendum Cameron commitment If any future treaty proposes changes to British sovereignty to referendum – if not then there won’t be one European Union Bill (See Coalition Agreement section 13 on Europe) 53

54. Council of Europe Council of Europe is not an institution within the European Union Roots lay in the desire to combat nationalism post second world war European states should work together May 2949 Statute of the Council of Europe established 54

55. Aims of the Council of Europe To achieve greater unity between its members for the purpose of safeguarding and realising the ideals and principles which are the common heritage and facilitating their economic and social progress While regarded as weak nevertheless it still performs useful functions – notably in the field of human rights through the European Convention of Human Rights Neill Nugent, The Government and Politics of he European Union 55

56. Issues Eurozone Further Treaty? Referendum on any further transfer of powers Budget Turkey’s membership Loss of sovereignty Recent decisions made by ECJ i.e. Prisoner voting rights 56

57. Seminar questions Identify major institutions of the EU and describe the role, powers and membership of; The European Parliament The European Commission The Council of Ministers The European Court of Justice The European Central Bank Also the Council of Europe (not an institution) 57