The European Union History and Theory of European

The European Union History and Theory of European Integration ECON 0462 CHP 1

The European Union Celebrating the European Union: A Half Century of Change and Progress • Since the creation of the EU half a century ago, Europe has enjoyed the longest period of peace in its history. • European political integration is unprecedented in history. • EU enlargement has helped overcome the division of Europe – contributing to peace, prosperity, and stability across the continent. European Union United in diversity • A single market and a common currency conditions for companies and consumers. • EU has united the citizens of Europe – while preserving Europe’s diversity.

The European Union What is the European Union? 28 Member States Combined population of EU Member States 7 • Largest economic body in the world. 490 million Percent of world’s population Percent of global GDP 55 • Shared values: liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law. 30 Percent of combined worldwide Official Development Assistance • World’s most successful model for advancing peace and democracy. • A unique institution – Member States voluntarily cede national sovereignty in many areas to carry out common policies and governance. • Not a super-state to replace existing states, nor just an organization for international cooperation. • World’s most open market for goods and commodities from developing countries.

The European Union EU Institutions European Commission • 28 Commissioners, representing the European perspective, each responsible for a specific policy area. • EU’s executive branch proposes legislation, manages Union’s day-to-day business and budget, and enforces rules. • Negotiates trade agreements and manages Europe’s multilateral development cooperation. Council of the European Union European Commission President Jean Claude Juncker • EU’s main decision-making body, comprised of ministers of 28 Member States, representing Member State’s point of view. • Decides on foreign policy issues. • Council presidency rotates among Member States every six months.

The European Union EU Institutions European Parliament • Voice of European citizens – members elected for five-year terms. • With the Council, passes EU laws and adopts EU budgets. • Approves EU Commissioners. European Parliament in session European Court of Justice • Highest EU judicial authority. • Ensures all EU laws are interpreted and applied correctly and uniformly. • Can act as an independent policy maker but unlike the U. S. Supreme Court, the ECJ can only deal with matters covered by the Treaties.

The European Union European Central Bank • The European Central Bank (ECB) is the central bank for Europe's single currency, the euro. • The ECB’s main task is to maintain the euro's purchasing power and thus price stability in the euro area. • The euro area comprises the 15 European Union countries that have introduced the euro since 1999. The euro was introduced in 1999 • The ECB operates independently from Member State governments.

The European Union United in Diversity - The €uro

The European Union The €uro € In 1999, the euro area was established as a currency in eleven of then fifteen EU Member States. Of the 28 EU Member States today, fifteen have € adopted the euro. One of the striking benefits of a single European € currency are low interest rates due to a high degree of price stability. € The euro is as stable and credible as the bestperforming currencies previously used in the euro area countries.

The European Union Integration since WW II • European Integration since 1945 has been based on the idea, that integration of nations (not only states) would preclude war among European countries. • The first impulse for after-war integration were atrocities of the second world war. • However, until today there are no United States of Europe (as they were proposed by Winston Churchill in 1946 for continental Europe). The United States model cannot be simply adopted in Europe.

The European Union 1951: European Coal and Steel Community • In the aftermath of World War II, the aim was to secure peace among Europe’s victorious and vanquished nations and bring them together as equals, cooperating within shared institutions. Jean Monnet and other leaders with the first “European” ingot of steel • Based on a plan by French Foreign Minister Robert Schuman. • Six founding countries – Belgium, the Federal Republic of Germany, France, Italy, Luxembourg and the Netherlands – signed a treaty to run heavy industries (coal and steel) under common management.

The European Union 1957: Treaty of Rome Signing of the Treaty of Rome • The six founding countries expanded cooperation to other economic sectors, creating the European Economic Community (EEC) – or “common market. ” • As a result, people, goods, services, and capital today move freely across the Union.

The European Union Definition of economic integration • Economic (regional) integration consists in removing economic frontiers between two or more economies. • Economic frontier is any geographical border over which actual or potential mobility of goods, services and production factors is impaired (need not necessarily coincide with political frontiers). • Different forms of economic integration can be found around the globe. NAFTA (North American Free Trade Area): concluded in 1992 between USA, Canada and Mexico • Mercosur: integration grouping (customs union) among South American countries

The European Union Definition of economic integration • ANZCERTA: Australia New Zealand Closer Economic Relations Trade. West and Central African Monetary Unions • European economic integration: Unique in much higher ambitions and practical achievements in comparison with other examples of integration efforts (an ever closer union among the people of Europe) • Close relationship with political integration due to historical reasons (bloody wars, threat of communism, challenges of globalization)

The European Union Methods of integration • Negative versus positive integration • NI denotes the removal of discrimination in national economic rules and policies under joint surveillance (liberalization, removal of trade barriers) • PI refers to the transfer of some powers to supranational authorities (common policies, common institutions) • Viable integration must rely on an appropriate combination of NI and PI (there are no unique solutions)

The European Union Dimensions of European integration • Deepening: implementation of closer forms of integration into already existing areas • Widening: application of methods of integration into new areas • Original common policies: agriculture, commerce, competition • Current common policies: regional, energy, environment, fishery, Schengen convention, common currency, etc. • Enlargement: growing number of members of integration group 1 st enlargement (January 1974): Denmark, Ireland, UK, 2 nd enlargement (January 1981): Greece 3 rd enlargement (January 1986): Portugal, Spain (Iberian en. )Reunification of Germany (October 1990): East Germany entered EU via West Germany 4 th enlargement (January 1995): Austria, Finland, Sweden (Nordic en. )5 th enlargement, 1 st wave (May 2004): Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia (Eastern en. )5 th enlargement, 2 nd wave (January 2007): Bulgaria, Rumania 5 th enlargement, 3 rd wave (July 2013): Croatia • Accession countries: Turkey

The European Union Milestones in European economic integration 1. Beginnings (GATT, OEEC, Benelux, ECSC) 2. European Economic Community 3. Single Market Programme 4. EMU – Economic and Monetary Union 5. Eastern enlargement 6. Lisbon strategy and Strategy Europe 2020 7. Strengthened economic governance in the wake of economic and financial crisis

The European Union International Organizations for European Integration • Basic legal instrument for integration is international law. • Several international organisations, established by international conventions and treaties which are agreed and ratified by founding states are visible expression of European Integration. • Plurality of international organisations allows differentiated membership. European countries can choose level of participation they estimate appropriate and suitable for them.

The European Union North Atlantic Treaty Organization • (1949) is defense covenant and international organization of many European countries joined together with the United States and Canada (28 members, not all EU member states are members of NATO). • Basic legal instrument is obligation of members for joint defense if any member has been attacked in north Atlantic area.

The European Union The Council of Europe (1949) • The Council of Europe is international Organisation with 47 member states including all EU member states) for administrative, social and cultural cooperation and enforcement of basic human rights. • Two hundred treaties and conventions have been concluded in the Council of Europe. • The European Court for Human Rights is attached to the Council of Europe. It enforces the Convention of Human Rights and Fundamental Freedoms.

The European Union The Organisation for Security and Cooperation in Europe (1975, 1991) • The Council of Europe is international Organisation with 47 member states including all EU member states) for administrative, social and cultural cooperation and enforcement of basic human rights. • Two hundred treaties and conventions have been concluded in the Council of Europe. • The European Court for Human Rights is attached to the Council of Europe. It enforces the Convention of Human Rights and Fundamental Freedoms.

The European Union European (Economic) Community (1957, renamed 1993) • E(E)C was established for general economic integration with exception of sectors covered by already mentioned specialised European communities • Joint membership in all three/two communities (ECCS existed until 2002) is and was compulsory for all member states. • Enlargements of all European Communities and since 1993 simultanenously enlargements of the European Union

The European Union (1992) • The European Union was found with the Treaty of Maastricht as international structure. • It lacked legal personality. • It included two (three) European Communities (1 st pillar): and other forms of cooperation of member states: 2 nd pillar: i. e. common foreign and security policy, 3 rd pillar: i. e. cooperation in matters of (criminal) justice and interior.

The European Union EU = E(E)C + EU • Treaty establishing a Constitution for Europe expected merger of the European Community and the European Union. • „Reform“ Lisbon Treaty agreed in December 2007 expected same change. It entered into force in December 2009. • In year 2010, the European Union has absorbed the European Community. Euratom continues to exist.

The European Union Founding member states of the European Communities • Six original member states of the European Communities were: • France, Germany (west), Italy, the Netherlands, Belgium, Luxemburg.

The European Union Enlargements in 20 th century • Northern enlargement (1973): the United Kingdom, Ireland Denmark. Norway failed to ratify the treaty of accession. • Two southern enlargements (1981 and 1986): Greece, Spain and Portugal. • „Residual“ enlargement (1995): Austria, Sweden and Finland.

The European Union Enlargements in 21 st century • Great eastern“ enlargement (2004): Estonia, Latia, Lithuania, Poland, Czechia, Slovakia, Hungary, Slovenia, Malta and Cyprus. • „Additional eastern“ enlargement (2007): Romania, Bulgaria. • Small additional: Croatia (2013)

The European Union Candidate countries and countries applying for membership • Negotiations opened or to be opened soon: Iceland, Makedonia, Turkey • Membership wished: several other Balcan and Eastern European states (Serbia, Montenegro, Albania, Bosnia. Hercegovina, Ukraine, Georgia, Moldova. Morocco has also expressed its interest to be member state. • How to define an European country which is entitled to ask for membership?

The European Union as supranational organization • The European Union is an international organisation which shall be distinguished from numerous international nongovernmental organizations. • There are several special features which cannot be found in other international organisations. • Nevertheless, the European Union lacks many features of federations. • Therefore, it is labelled as supranational organization. • There is no similar structure in the world.

The European Union Overview of international organizations and federations • International organizations joining countries as members of international community: UNO, WTO, Co. E, OSCE, NATO etc. • Federations (federally organized countries composed of central and component states): USA, Germany, Switzerland, Russia, India, Australia, Brazil, Canada, Nigeria, Malaysia.

The European Union 1951 Founding Members Belgium France Germany Italy Luxembourg Netherlands

The European Union 1973 Denmark Ireland United Kingdom

The European Union 1981 Greece

The European Union 1986 Portugal Spain

The European Union November 1989 Fall of the Berlin Wall sets the stage for unifying Europe and EU enlargement

The European Union 1995 Austria Finland Sweden

The European Union 2004 Cyprus Czech Republic Estonia Hungary Latvia Lithuania Malta Poland Slovakia Slovenia

The European Union 2007 Bulgaria Romania

The European Union Candidate Countries Croatia Former Yugoslav Republic of Macedonia Turkey Potential Candidate Countries Albania Bosnia & Herzegovina Montenegro Serbia including Kosovo under UN Security Council Resolution 1244

The European Union 50 Years of EU Integration “Enlargement has been a success story for the European Union and Europe as a whole. It has helped to overcome the division of Europe and contributed to peace and stability throughout the continent. ” European Council Declaration Dec. 15, 2006 Enlargement has: • Inspired reforms and consolidated common principles of liberty, democracy, respect for human rights, fundamental freedoms, the rule of law, and market economy. • Enhanced the EU’s weight in the world and made it a stronger and more attractive international partner. 1957 2007 6 27 Population 174 million 493 million Languages 4 23 Member States

The European Union The EU in the World The EU is a global player. Its soft power promotes stability, prosperity, democracy and human rights, delivers concrete results in the fight to eradicate poverty, and in achieving sustainable development. UN Secretary General Ban Ki-moon, High Representative for the Common Foreign and Security Policy Javier Solana, and EU Commissioner Benita Ferrero-Waldner

The European Union Addressing Global Challenges • Democracy & Human Rights – Works globally for free elections and open democratic processes. – Fights racism and intolerance at home and abroad. – Campaigns globally against capital punishment. • Development Assistance & Humanitarian Relief – The EU and its Member States are the world’s largest aid donor, providing 55% of total official development assistance. – Provides billions of dollars in humanitarian aid to more than 100 countries in response to crises and natural disasters.

The European Union Addressing Global Challenges • Trade – European Commission represents all 27 EU Member States before the World Trade Organization. – Supports free trade and open markets, within the rules-based structure of the WTO, to promote growth and jobs in both industrialized and developing countries. – The world's most open market for products and commodities from developing countries – 40% of all EU imports are from developing countries.

The European Union Addressing Global Challenges • Environmental Protection – A leader in global efforts to protect the environment, maintaining rigorous and comprehensive systems at home. – Plays a key role in developing and implementing international agreements, such as the Kyoto Protocol on Climate Change. – Executing a “cap and trade” system to reduce greenhouse gas emissions Source: German Information Center USA – Takes the lead in the fight against global warming with the adoption of binding energy targets (cutting 20% of the EU’s greenhouse gas emissions by 2020).

The European Union and the United States “Our strong friendship is essential to peace and prosperity around the globe. No temporary debate, to passing disagreement among nations, no power on earth, will ever divide us. ” President George W. Bush “The relationship between the United States and Europe is the world’s strongest, most comprehensive, and strategically important partnership. The United States, and a united Europe – this is really the indispensable partnership. ” President of the European Commission José Manuel Barroso

The European Union Partners in Global Leadership • EU and U. S. work together to develop international standards: – Fighting terrorism and transnational crime – Advancing global trade liberalization – Combating piracy and intellectual property violations EU Commissioner Benita Ferrero-Waldner & U. S. Secretary of State Condoleezza Rice – Spreading benefits of globalization • EU and its Member States are helping restore peace and stability in Afghanistan. • EU and U. S. work together in the Middle East Quartet to advance the peace process. • When the EU and U. S. agree, others tend to follow.

The European Union Shared Values and Responsibilities • Freedom & Democracy Support free elections, good governance, human rights, and the rule of law around the world. • Security Cooperate to fight terrorism, limit the spread of nuclear weapons, and work for global peace. • Development Together, EU and U. S. provide 80% of global development assistance and an even larger share of global humanitarian aid in times of disaster and conflict.

The European Union A Dynamic Transatlantic Economy • EU and U. S. together account for 40% of total global trade (more than $1. 5 billion in transatlantic trade every day). • The $3 trillion EU-U. S. transatlantic economy employs 14 million workers on both sides of the Atlantic. • In 2015, Europe accounted for roughly twothirds of total global investment flows into the U. S. – by far the most significant source of foreign investment in the U. S. economy.

The European Union • European companies are the leading foreign investors in the U. S. BMW’s assembly plant is South Carolina’s largest private sector employer. – The UK, Germany, France, and the Netherlands – top four sources of jobs created by foreign investment in the United States. • American companies invest far more in EU countries than in Asia. – U. S. businesses make 5 times the profit in the Netherlands - alone - as they make in China. – In 2005, EU investments in Texas alone surpassed all U. S. investments in China and Japan, combined.

The European Union Future of Transatlantic Relations • EU and U. S. face common challenges that are global in origin and impact. With global challenges, come global responsibilities. • EU and U. S. , with our shared values and common interests, are natural partners to give a lead in four key areas: – Promote peace, human rights and democracy worldwide. – Confront global challenges, including security and non-proliferation. – Foster prosperity and opportunity. – Advance strategic cooperation on energy security, climate change and sustainable development.

The European Union “Since no single nation can efficiently and effectively deal with global challenges such as climate change, counterterrorism, nonproliferation, pandemics and natural disasters on its own, we commit ourselves to strengthening our cooperation to address these challenges. ” EU-U. S. Summit Declaration Vienna, July 2006

The European Union Education & Research • EU and U. S. cooperate on science and technology education through: – Exchange programs – More than 700 institutional partnerships EU supports R&D to increase Europe’s growth and global competitiveness. – Vocational training – Scholarship programs – R&D cooperatives • EU and U. S. provide joint or dual higher educational degree programs. • EU funds Centers of Excellence at leading U. S. universities.

The European Union