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									 The European Union:
“United in Diversity”

               Justin Sosne
 Coro Fellow in Public Affairs, 2006 - 2007
     EU Presentation OARR
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

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

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
     - 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
  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
  3) 1992 was set as goal for establishment of a single
  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.
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
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
                       Intergovernmentalism        Supranationalism

Who makes decisions?   Member states            Independent appointed
                                                officials or elected reps

How are decisions      Unanimity                Majority vote

Other facets           Independent appointees   Member states fully
                       and elected reps only    retain sovereignty and
                       serve in advisory role   participate on voluntary
Examples               Council of Ministers,    Parliament, EC, QMV,
                       European Council, policy Council of Ministers,
                       areas                    acquis communitaire
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
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
   - 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
     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
    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
         Working Parts
• Council of Ministers (cont.):
  - Structure (cont.):
    2) Committee of Permanent Representatives
       - ambassadors or representatives from diplomatic
          missions of member states to the European
        - 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
• 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


Exports                                        463

Imports                                        436

Trade Balance                                  27

European Union

Exports                                        883

Imports                                        941

Trade Balance                                  -58


Exports                                        499

Imports                                        405

Trade Balance                                  94

United States

Exports                                        765

Imports                                        1380

Trade Balance                                  -615
• 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
• 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
  - Immigrants have boosted aging and declining EU population
  - How will EU policy reflect cultural & demographic change?
• 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
  - 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?
• Constitution:
  - EU constitution was signed by all 25 heads of state in
  - 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?

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