1. European Union By: Joel Ahrendsen & Jodi Calvert

2. Outline History History Government Government Funding Funding Expenditures Expenditures Common Agriculture Policy (CAP) Common Agriculture Policy (CAP) Trading Trading Global Economy Global Economy

3. History European Coal and Steel Community European Coal and Steel Community European Economic Community European Economic Community European Atomic Energy Community European Atomic Energy Community Three eventually came to be called European Communities

4. History Cont. Euro adopted in 2002 Euro adopted in 2002 Member States Member States –Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom AustriaBelgiumBulgariaCyprusCzech RepublicDenmarkEstoniaFinlandFrance GermanyGreeceHungaryIrelandItaly LatviaLithuaniaLuxembourgMalta NetherlandsPolandPortugalRomania SlovakiaSloveniaSpainSweden United KingdomAustriaBelgiumBulgariaCyprusCzech RepublicDenmarkEstoniaFinlandFrance GermanyGreeceHungaryIrelandItaly LatviaLithuaniaLuxembourgMalta NetherlandsPolandPortugalRomania SlovakiaSloveniaSpainSweden United Kingdom

5. Government Commission Commission –Executive Branch –27 members –Represent EU above own country –Legislative initiative power –President elected for five year terms The president is part of the 27 The president is part of the 27

6. Government Cont. Council Council –Legislative Branch (with Parliament) –Holds budgeting power –27 ministers for each topic in the EU i.e. each member state as an agriculture minister. i.e. each member state as an agriculture minister. –Have a six month rotating Presidency President is allowed to set the agenda during his or her term President is allowed to set the agenda during his or her term

7. Government Cont. Parliament Parliament –Only directly elected institution in the EU –Makes up Legislative Branch (with Council) Over powered by council if not using co-decisions Over powered by council if not using co-decisions –785 members - Represent Country before EU –Partied System, two main parties European Democrats and European Socialists European Democrats and European Socialists –22 committees

8. Funding Traditional Tax Traditional Tax –Generated Primarily through imports into member states. –If a state does not meet the requirement, remaining states must cover the loss. Value Added Tax (VAT) Value Added Tax (VAT) –Tax to EU citizens –Rate capped at 50% of countries Gross Income

9. Funding Cont. Gross National Income (GNI) Gross National Income (GNI) –Largest source of EU funds –Rate is capped at 1.24% of GNI for the EU as a whole Other Other –Interest –Surpluses –Roughly 1%

10. Contributions & Expenditures

11. Common Agriculture Policy (CAP) Origin 1962 Origin 1962 Helped struggling war countries Helped struggling war countries Unified Market Unified Market Internal Market vs. Foreign Products Internal Market vs. Foreign Products Financing Ag Programs Financing Ag Programs

12. Reforms 1993 1993 –Direct Payments 2000 2000 –Decreased Payments for New Countries 2003 2003 –Payments based on commodities

14. Commodity Payments Tariffs and export subsidies Tariffs and export subsidies Supply Limits/Quotas Supply Limits/Quotas –Dairy & sugar Price levels Price levels Single farm payments Single farm payments –Tobacco, cotton, & olive oil

16. Food Safety Country of Origin Country of Origin – BSE Organic Organic –Pass Inspection –Labeled Properly (vendor, inspection, producer, & preparer)

17. Food Safety Strategies Provide consumers with information of where the products came Provide consumers with information of where the products came Provide scientific devices to the public through research Provide scientific devices to the public through research Food and animal feed rules Food and animal feed rules Be able to enforce these rules and control processes Be able to enforce these rules and control processes

18. Environment Voluntary Voluntary Programs Programs –creating ponds –planting trees –reducing inputs – no tilling acres –using conventional farming practices. GMO's GMO's

19. Rural Development Education about new farming techniques Education about new farming techniques Assist retiring farmers Assist retiring farmers Assist beginning farmers Assist beginning farmers Assist in environmental and animal welfare standards Assist in environmental and animal welfare standards Update buildings and machinery Update buildings and machinery Developing home food processing facilities Developing home food processing facilities

20. Rural Development Cont. Improving food quality and marketing Improving food quality and marketing Develop farming in mountainous areas and other areas not in farming Develop farming in mountainous areas and other areas not in farming Encourage tourism Encourage tourism Protect heritage and customs Protect heritage and customs Develop strategies by local action groups Develop strategies by local action groups

21. Trading 2nd Leading Exporter 2nd Leading Exporter 1st Importer 1st Importer Trade with developing countries Trade with developing countries No tariffs or border controls in EU No tariffs or border controls in EU Single Currency Single Currency

24. Impacts of CAP Increased Production Increased Production Provided incentives for farmers Provided incentives for farmers More people willing to invest in agriculture More people willing to invest in agriculture

25. Economy All countries in the EU are recognized as a single market under the WTO. All countries in the EU are recognized as a single market under the WTO. –Free movement of goods, capital, people and service Generates U.S. equivalent of $17.6 trillion Generates U.S. equivalent of $17.6 trillion –~31% of the world's total economic output

27. Issues Integration Integration –Loss of Country identity –Conflict between EU and National interests Enlargement Enlargement –Is it growing too fast? –Can the EU support and control more countries?

28. Dank für Zuhören Irgendeine Fragen?