1. The European Union

2. What is the European Union?
The European Union (EU) is unique in the international system.
Some characteristics of an international organization.
Created through treaties among sovereign states
Many functions of a state
Provides a greater number of public goods and enforces a wider range of more detailed contracts than any other IO in the modern era

4. How big is the European Union?
The land area is slightly less than half of the United States.
The EU has about 460 million citizens, just over 1.5 times the US population.

5. Members of the EU
1953: Belgium, France, Germany, Italy, Luxembourg, Netherlands
1973: Denmark, Ireland, United Kingdom
1981: Greece
1986: Portugal, Spain
1995: Austria, Finland, Sweden
2004: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia
2007: Bulgaria
2013: Croatia

6. Beginnings of European Integration
1944: Anti-Nazi resistance movements call for “federal union of European peoples” after the war
1948: Transnational NGO, International Committee of the Movements for European Unity, holds international congress

7. Beginnings of European Integration
US supports creation of Organization of European Economic Cooperation to administer Marshall Plan aid
Council for Mutual Economic Assistance- COMENCON founded for economic cooperation and integration among USSR and its satellites

8. Beginnings of European Integration
Coal and steel producing regions of Alsace-Lorraine part of frequent wars between France and Germany
Economic production devastated by WWII
European Coal and Steel Community eliminated trade barriers on coal, steel, and iron ore
Explicitly intended as first step towards a “European federation indispensable to the preservation of peace”

9. History of European Integration
The EU gradually evolved through a series of treaties.
1951: European Coal and Steel Community (ECSC)
6 members: Belgium, West Germany, Luxembourg, France, Italy and the Netherlands.
1957: Treaties of Rome were signed, creating
European Atomic Energy Community (EURATOM)
the European Economic Community (EEC).
Removal of all intra-European tariffs to form common market and customs union (common external tariffs)

10. History of European Integration
1967: The ECSC, EURATOM, and EEC merged.
1985: Single European Act
Removal of all non-tariff barriers to mobility of people, goods, services, and capital

11. European Union 1992: Treaty of Maastricht
Makes the EEC into the European Union
Cooperation on defense, justice, and domestic policy
2002: Common currency, the Euro, introduced in twelve member countries
UK, Denmark, and Sweden opt out.

12. Broadening and Deepening
2003: The Treaty of Nice
Expands qualified majority voting (limits states’ veto power)
2004: Ten new states from eastern Europe, including former Soviet republics, join the EU.
Before joining, new members must adopt and adjust to body of EU law (acquis communautaire).

13. Structure of the EU Legislative Branch Executive Branch
European Parliament (popularly elected but little power)
Council of Ministers (represents national governments)
Executive Branch
European Commission (main bureaucracy)
Council of Auditors (budget)
European Central Bank (monetary policy)
Judicial Branch
European Court of Justice (reviews national law)

14. Implementing integration
EU directives are proposed by the Commission and approved by the Council of Ministers.
National governments then pass their own laws to implement the directive.
EU regulations are directly binding.
Basic regulations come from the Council of Ministers.
Executive regulations come from the Commission.
ECJ can hear complaints from the Commission or member states if a member does not implement EU law.

15. Fully integrated issue areas
Trade policy
No tariffs with EU, common tariffs with other trading partners
Collective negotiation in WTO
Competition policy
Limitation on monopolies, etc.
Monetary policy
Single interest rate from Central Bank
Requires constraints on taxation, spending, deficits

16. Mostly integrated issue areas
Consumer health & safety regulations
Harmonized rules allow for economies of scale
Free movement of people
Citizens of EU states can travel & work in other EU states without visas or passports
Police cooperate in tracking across borders
Does not fully include UK, Ireland, or 10 new members
Some free movement suspended after terrorist attacks on London 2005

17. Least integrated issue area
Foreign and security policy
Ireland, Austria, Finland, Sweden are neutral
Must compete with NATO for relevance
So far, mostly focused on humanitarian intervention
Division over 2003 US invasion of Iraq

18. EU Constitution Negotiated between member states in 2004
Intended to simplify institutional structure
Necessary for further expansion
Creates President and Foreign Minister of EU
5/29/2005 – Rejected by referendum in France
6/1/2005 – Rejected in Netherlands

19. Realism on the EU
US security guarantees after WWII freed European states from concerns about relative gains.
Enlargement locks in Eastern Europe against future Russian encroachment.
Classical realists: Integration will collapse in the absence of US guarantees.
Neo-realists: European states will ally to balance against US unipolarity.
Does not require deep integration

20. Neo-liberalism on the EU
European integration was intended to
Create wealth
Make war between European states too costly to contemplate
Enlargement expands the markets and allows for further specialization.
European integration will continue as long as there are efficiency gains to be made by supranationalizing policy.
Often requires side-payments/issue linkage

21. Constructivism on the EU
An attempt to create a common identity.
Flag created in 1955
Anthem adopted in 1972 (Beethoven’s “Ode to Joy”)
Enlargement expands the EU to include all of the region of shared history and identity.
Turkey, a Muslim state, is “Other”, so may never join
Integration continues through development of European identity, particularly in elites.