The European Union: “United in Diversity” Justin Sosne Coro Fellow in Public Affairs, 2006 - 2007 EU Presentation OARR Outcomes: 1) The Fellows will learn how and why the European Union came into existence 2) The Fellows will learn how the European Union is structured 3) The Fellows will learn about current issues surrounding the European Union Agenda: 1) 4WH of the European Union (O1) 2) LDWpF of the European Union (O2) 3) WIGO of the European Union (O3) Roles: Justin will present Rules: 1) Fellows will listen actively 2) Fellows will question for clarification. 3) Fellows will not fall asleep. What is the EU? The European Union (EU) is a 27-member multi-national intergovernmental and supranational organization aimed at the promotion of economic and political integration on the European continent. Where is the EU? Who lives in the EU? • 457 million citizens – expected WORLD 6,661,208,350 to reach 470 million by 2025 1. China 1,315,844,000 • Net population gain will be due primarily to migration, since 2. India 1,110,000,000 total deaths will outnumber total births after 2010 3. EU 457,000,000 • This gain will stop in 2025, however – population 4. United States 301,574,000 estimates for 2050 are around 450 million 5. Indonesia 222,781,000 Why did the EU form? 1) War experience: - 25 million people died in WWI and 40 million died in WWII - nationalism (extreme patriotism) was perceived as the most deadly force in human history - EU formed to prevent Germany from regaining military might as well as future Europe-wide conflicts - put war-making industries (coal and iron) under supranational control (ECSC – 1951) - constrain nationalism through web of political rules (EEC – 1957) Why did the EU form? 2) Cold War: - end of Western European great powers, imperial rivalries in Africa, South America, and Asia - formed EU to unite against rising Soviet threat - US was main catalyst of EU formation because they wanted a strong Europe next to the USSR 3) Economic Benefits: a. Comparative advantage b. Economies of scale c. Bargaining power How did the EU form? ● 1946: Winston Churchill calls for a “kind of United States of Europe” during a speech at Zurich University ● 1949: Formation of Council of Europe ● 1950: Schuman Declaration ● 1951: Formation of the European Coal and Steel Community (ECSC) between Belgium, the Netherlands, Luxemburg, France, Italy, and West Germany through the signing of the Treaty of Paris How did the EU form? • Early 1950s - Two failed proposals: 1) European Defense Community (EDC) – called for creation of a common European army, with joint high command; designed to protect Europe against rising Soviet threat without allowing Germany too much military control 2) European Political Community (EPC) – called for a federation of European states with a bicameral parliament, executive organ, and a European Court • 1954: Both ideas were shelved after French assembly rejects EDC treaty because it did not want to cede French military control to a supranational defense force How did the EU form? • 1957: Treaty of Rome signed, two new communities: 1) European Economic Community (EEC) - purpose of the EEC was to establish a customs union among the six founding members, based on the "four freedoms": freedom of movement of goods, services, capital and people 2) European Atomic Energy Community (Euratom) - created to pool the non-military nuclear resources of states • 1967: EEC, Euratom, and ECSC merge into one body, the European Community (EC) EU Enlargement • 1973: United Kingdom, Ireland, Denmark • 1981: Greece • 1986: Spain, Portugal • 1995: Sweden, Austria, Finland • 2004: Cyprus, Malta, Slovenia, Hungary, Lithuania, Slovakia, Poland, Czech Republic, Estonia, Latvia • 2007: Bulgaria, Romania Candidates: Croatia, Turkey, Former Yugoslav Republic of Macedonia (FYROM) EU Integration • 1979: European Parliament – first direct elections • 1986: Single European Act (SEA) 1) reformed the operating procedures of the institutions 2) Qualified Majority Voting (QMV) was extended to new areas 3) 1992 was set as goal for establishment of a single market 4) Eliminated non-tariff barriers (i.e. – size of products, health regulations) EU Integration • 1992: Maastricht Treaty 1) Established the EUROPEAN UNION!!! 2) Created three pillars under this heading: a. European Communities (all the economic stuff) b. Common Foreign and Security Policy c. Justice and Home Affairs 3) Established Economic and Monetary Union as a formal objective • 1997: Treaty of Amsterdam – updated Maastricht and aimed to make the EU more democratic EU Integration 2002 – 12 countries form monetary union, abolish national currencies for Euro; administered by the European Central Bank (ECB) Who can belong? Copenhagen Criteria (1993): 1) stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; 2) the existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union; 3) the ability to take on the obligations of membership including adherence to the aims of political, economic & monetary union. Load Goals of the EU: 1) Fewer frontiers, more opportunities - Any EU citizen can live, travel, and work in any EU country (Schengen Agreement) 2) A greener Europe - Taking the lead in implementing the Kyoto Protocol - Preventing pollution from crossing borders 3) Going abroad to learn - Facilitate student exchanges 4) Jobs and prosperity - EU leaders have pledged to make the EU the world’s most dynamic knowledge-based society with a competitive economy and skilled workforce Load Goals of the EU: 5) Equal opportunities - First treaties stated that men and women must receive equal pay for equal work 6) Freedom, security, and justice for all - Adopting common rules on these crimes, and taking steps to ensure full cooperation between their police and customs officers, immigration services and law courts (i.e. – European arrest warrant) 7) Exporting peace and stability - Spread prosperity through aid and expansion Design Intergovernmentalism Supranationalism Who makes decisions? Member states Independent appointed officials or elected reps How are decisions Unanimity Majority vote made? Other facets Independent appointees Member states fully and elected reps only retain sovereignty and serve in advisory role participate on voluntary basis Examples Council of Ministers, Parliament, EC, QMV, European Council, policy Council of Ministers, areas acquis communitaire Design How is the EU intergovermental? 1) Decisions made by European Council – members act on behalf of national interests 2) Pillars II (Foreign Affairs) and III (Justice and Home Affairs) – decisions require unanimous vote 3) Treaties – all new treaties must be ratified by member states Design How is the EU supranational? 1) European Commission functions as the agenda setter - members swear an oath to the EU - initiate legislation geared towards Europe as a whole 2) Qualified Majority Voting (QMV) in Council of Ministers - 62% of EU population must be represented by decision - one state cannot block a decision 3) Acquis communitaire – EU laws must be implemented on national level 4) European Court of Justice (ECJ) – can overturn national decisions Working Parts European Commission (executive branch): - Headquarters: Brussels, Belgium - Official languages: English, French, German - Structure: 1) College of Commissioners - current president: Jose Manuel Durão Barroso - one member from each EU member state - commissioners are supposed to represent interests of EU as a whole, rather than country (supranational) 2) Directorate-General - 26 department bureaucracy comprised of over 5,000 employees Working Parts European Commission (cont.) - Functions: 1) Power of initiation – all EU legislation must be initiated here 2) Implementation – responsible for implementing legislation passed by Parliament 3) “Guardian of the Treaties” – interprets how to implement 4) Manages finances 5) Handles external relations 6) Only body that can take member state to ECJ Working Parts • European Parliament (legislative branch): - Headquarters: Strasbourg, France and Brussels - Structure: - directly elected by EU citizens once every 5 years - only part of the EU that is democratic - represents around 457 million EU citizens - members are known as Members of the European Parliament (MEPs) – 736 overall - no uniform voting system to elect MEPs, each state is free to choose, as long as it’s a form of proportional representation (PR) - 7 Europe-wide political parties (supranational) Working Parts • European Parliament (cont): - Structure (cont): - “degressive proportionality” – based on population, but small states have more than they should Strasbourg Brussels Working Parts • European Parliament (cont.) - Functions: - cannot initiate legislation, but can amend or veto it in about ¾ of policy areas (codecision procedure) - decides rest using assent or consultation procedure - supervises the European Commission – must approve all appointments en bloc; can dismiss it with a vote of censure, but need 2/3 majority (1999) - controls the EU budget - serves as “lower-house”, as in a bicameral system - appoints European Ombudsman Working Parts • Council of Ministers (legislative branch): - serves as “upper-house” of European legislature with the Parliament - Structure: 1) 9 Councils – top ministers in particular policy area of each member nation meet Areas: General Affairs and External Relations; Economic and Financial Affairs; Agriculture and Fisheries; Justice and Home Affairs; Employment, Social Policy, Health and Consumer Affairs; Competitiveness; Transport, Telecommunications, and Energy; Environment; Education, Youth, and Culture Working Parts • Council of Ministers (cont.): - Structure (cont.): 2) Committee of Permanent Representatives (COREPER) - ambassadors or representatives from diplomatic missions of member states to the European communities - prepares the Council agenda and negotiates minor and non-controversial matters, leaving controversial issues for discussion, and other issues for formal agreement, by the Council Working Parts • Council of Ministers (cont.): - Structure (cont.): 3) Working groups – 3000 civil servants (eurocrats) who often reach de facto agreement then submit for approval at Councils 4) Presidency – minister from country with presidency presides over Council meetings; presidency rotates every six months based on a pre-established rotation (current presidency: Finland) Working Parts • Council of Ministers (cont.): - Functions: 1) Legislation - the Council passes EU law on the recommendations of the European Commission and the European Parliament. 2) Approval of the EU budget - the Council and the Parliament must agree on the budget. 3) Foreign and defense policy - while each member state is free to develop its own foreign and defense policy, the Council seeks to achieve a common foreign and defense policy for the member states. 4) Economic policy - the Council also seeks to achieve a common economic policy for the member states. 5) Justice - the Council seeks to co-ordinate the justice system of the member states, especially in areas such as terrorism. Working Parts • European Council: - also known as “European Summit” - works like a Council of Ministers meeting, except with the heads of state present - takes place 4 times a year on average • European Court of Justice (judicial branch): - two courts: 1) European Court of Justice (ECJ) - high court, 25 judges, 6 year renewable terms - President of the Court – 3 year renewable term - 8 advocates-general – serve special advisory role – research cases and present opinion to justices, but decision not binding Working Parts • European Court of Justice (cont.) - two courts: 1) European Court of Justice (ECJ) – areas of jurisdiction: a) Claims by the European Commission that a member state has not implemented a European Union Directive or other legal requirement. b) Claims by member states that the European Commission has exceeded its authority. c) References from national courts in the EU member states asking the ECJ questions about the meaning or validity of a particular piece of EU law. Working Parts • European Court of Justice (cont.) - two courts: 2) Court of First Instance: - 25 judges, 6 year renewable terms - independent court affiliated with the ECJ - no permanent advocates-general - jurisdiction to hear all direct actions by individuals and member-states against EU - types of actions: failure to act, damages, public or private contracts entered into by the EU, civil service Working Parts • European Central Bank – sets monetary policy for 12 Eurozone countries, based in Frankfurt, Germany Fuel • MONEY - €100 billion budget - Gross Domestic Product (GDP), 2003 – total output of goods and services annually - EU: €9755.4 billion (≈US$12775 billion) - United States: US$12445 billion (≈ €9500 billion) - Germany: €2128.2 billion (≈US$2786 billion) - Trade - EU only accounts for 7% of world population, but accounts for 25% of all imports and exports - Trade between EU countries accounts for 2/3 of all EU trade - EU trade accounts for over half of all trade in each of the 25 member nations, sometimes as much as 80% Trade with other countries, as a percentage of each country’s total trade, 2003 Country % Belgium (BE) 75.1 Czech Republic (CZ) 78.4 Denmark (DK) 71.5 Germany (DE) 64.8 Estonia (EE) 72.0 Greece (EL) 56.1 Spain (ES) 71.6 France (FR) 68.0 Ireland (IE) 62.4 Italy (IT) 61.0 Cyprus (CY) 59.3 Latvia (LV) 76.7 Lithuania (LT) 58.6 Luxembourg (LU) 82.4 Hungary (HU) 71.7 Malta (MT) 60.1 Netherlands (NL) 68.1 Austria (AT) 77.2 Poland (PL) 74.3 Portugal (PT) 79.9 Slovenia (SI) 71.4 Slovakia (SK) 79.2 Finland (FI) 63.7 Sweden (SE) 64.4 United Kingdom (UK) 57.0 International trade in goods, in billions of Euro, 2002 € billion China Exports 463 Imports 436 Trade Balance 27 European Union Exports 883 Imports 941 Trade Balance -58 Japan Exports 499 Imports 405 Trade Balance 94 United States Exports 765 Imports 1380 Trade Balance -615 Fuel • Political security: - no wars have been fought between EU members since its formation - Europe wants to secure its borders to the east and south by spreading economic prosperity • Enhanced services: - education – university student exchanges enhances intellectual capital - infrastructure development – money is spread out to poorer countries to develop roads, ports, etc. - environment – prevent pollution from other countries entering yours WIGO • Immigration: - causing cultural clashes – i.e. – riots in Paris - big deal in Rotterdam when a new mosque obstructed the view of the local soccer stadium - Berlin is second-largest Turkish city after Istanbul - Muhammad just became the most popular boy’s name in England - EU has traditionally had very liberal immigration policy (lots of social benefits, high level of tolerance, etc.) - Changing in wake of terrorist attacks and increasing xenophobia - Immigrants have boosted aging and declining EU population - How will EU policy reflect cultural & demographic change? WIGO • Enlargement: - just enlarged by 10 countries, 2 more this month - new entrants cause EU funds to be spread thin, don’t necessarily meet anti-corruption and economic requirements - culturally very different from Western Europe - translation now necessary in many more languages ($$) - new EU members want more power – i.e. – Poland; mirrors what’s happening in the United Nations - What to do about Turkey? WIGO • Constitution: - EU constitution was signed by all 25 heads of state in 2004 - Designed to streamline previous treaties, codify human rights, and streamline decision-making - All 25 countries must ratify for it to pass into law - France and the Netherlands voted it down - What is the future of EU law?