1. The Single Market and the Economic and Monetary Union October 27, 2011

2. Challenges in the 1980s Economic: Competitiveness Institutional International/Political

3. How Europe responded Fontainebleau Summit (1984) Commitment to accelerate European integration BBQ resolved Enlargement to Spain and Portugal cleared Dooge Committee

4. How Europe responded Two proposals on the table in 1985: Dooge Report Restricting unanimity Strengthening the EP & Comm. More competences for the EC White Paper on Completing the Single Market Achieving SM by removing physical, fiscal and technical barriers (300 measures) Timetable: complete SM by Dec 1992

5. Single European Act (1987) Tasks: eliminating physical, fiscal and technical barriers. Mutual recognition (Cassis de Dijon) Around 300 proposals to adopt to achieve the single market by 1992 Institutional reform

6. Europe 1992: Single European Act (1987) Majority voting in the Council of Ministers on single market issues Increased powers for the Parliament European Political Cooperation New competences: environment, R&D…

7. Europe 1992: Why did the MS agree to delegating more sovereignty (majority voting + more power for the EP and Commission)? Neofunctionalist explanation Intergovernmental explanation

8. Explaining SEA Neofunctionalism Role of supranational institutions European Parliament European Court of Justice European Commission …And their leaders (Jacques Delors) Role of transnational groups (ERT, UNICE) Success of EMS: SPILLOVER?

9. Explaining SEA: Intergovernmentalism Realist roots European integration as a bargain between states Argument Member state interests States would resist integration in areas of high politics

10. Explaining SEA: Liberal Intergovernmentalism A. Moravcsik Theory of intergovernmental bargaining AND Theory of national preference formation

11. Negotiating the Single European Act (Moravcsik 1991) criticizes the neofunctionalist explanation: Parliament and Commission role minimal Transnational business groups (ERT, UNICE) got involved late Supranat’l elites (Delors, Cockfield)

12. Negotiating the Single European Act (Moravcsik 1991) His explanation: SEA rests on interstate bargains Lowest-common-denominator bargaining and threat of exclusion Protection of sovereignty Little role for supranational institutions or actors Changes in national interests (convergence of preferences)

13. Developments in and outside of the EC after the SEA Berlin Wall came down Cold War ended German re-unification Proposals for monetary and political union Thatcher replaced by Major (1990)

14. Intergovernmental Conference (1990-1) Member states negotiate political union and monetary integration in parallel Treaty on European Union (Maastricht Treaty) signed in 1991 Ratification and the Danish no vote

15. Treaty on European Union (1992) The three pillars: First pillar: Economic, Coal and Steel Communities and the Euratom Second Pillar: Common Foreign and Security Policy Third Pillar: Justice and Home Affairs Economic and Monetary Union European Parliament strengthened (codecision) Subsidiarity More EU competences European citizenship

16. Monetary Union and single currency History of monetary cooperation Hague Summit and the Werner Plan (1970) European Monetary System (1979) Delors Report (1989) Member state interests in monetary union

17. Economic and Monetary Union: 1992: TEU: three stage plan confirmed. Convergence criteria: Price stability Budgetary discipline Currency stability Interest rate convergence

18. EMU evolution: December 1995: Madrid Summit Renewed commitment and the “Euro” 1996 Stability and Growth Pact May 1998 Decisions on which member states will participate European Central Bank set up January 1999 Exchange rates irrevocably fixed Virtual Euro January 2002: Euro notes and coins start circulation