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The European Union

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The European Union. Presentation Outline. The Creation of the EEC The Masstricht Treaty Political Institutions a) EU Parliament b) EU Council c) EU Commission d) EU Court of Justice 4) The Lisbon Treaty 5) EU broadening and deepening - PowerPoint PPT Presentation

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The European Union

Presentation Outline1) The Creation of the EEC

2) The Masstricht Treaty

3) Political Institutions

a) EU Parliament

b) EU Council

c) EU Commission

d) EU Court of Justice

4) The Lisbon Treaty

5) EU broadening and deepening

6) Economic and political issues

The E.U. comprises 27 states as of 2012

1) The European Economic Community

• The E.U. was created in 1957 as the European Economic Community (EEC) by the Treaty of Rome

• Only France, W. Germany, Italy, Belgium, Luxembourg, and the Netherlands originally joined

Original EEC members in 1957 and evolving EU membership to 2007

Mission of the EEC

• The EEC was founded by European leaders who wanted to create a common European market, harmonize and encourage trade, and improve economic and political relations of member states

• The bitter memories of two world wars provided the motivation for Europeans to cooperate and promote prosperity

2) The Maastricht Treaty

• The 1991 Maastricht Treaty established what the EU is today

• The EU was now given the authority to act in the following areas: monetary policy, foreign affairs, health, the environment, national security and justice

Towards a supranational organization

• A supranational organization is defined as one which has power and a degree of sovereignty over member states

• Example of supranational organizations include: EU, United Nations, World Bank, World Trade Organization, NATO

The EU introduced its currency in 2003 replacing all national currencies except the British Pound, Czech

Koruna, and Danish Krone, and Swedish Krona

Three E.U. Pillars

• 1) Cooperation in trade and economic matters ( common currency)

• 2) Cooperation in justice and home affairs (JHA)

• 3) Desire to create a Common Foreign and Security Policy (CFSP)

“Four Freedoms”

1) Free movement of labor within the EU

2) Free movement of capital (investment) within the EU

3) Free movement of people within the EU

4) Free movement of goods and services within the EU

3) EU Political Institutions

European Parliament (legislative)

Council of Ministers (legislative)

European Commission (executive)

European Court of Justice (judicial)

European Parliament

• Members of the European Parliament (MEP) are directly elected by national voters in member states in EU elections

• Codecision principle means that the Commission and Council must consult with Parliament on legislation

• Votes and makes amendments to laws

EU elections take place every 5 years using proportional representation

EU Parliament in Strasbourg, France

The European Council

• Composed of the Ministers of national governments (ie. Foreign Affairs, Agriculture Ministers etc.)

• 27 appointed members- one for each member state

• All EU laws and proposals must be passed by the Council

• More powerful than the EU Parliament as it can overturn the decisions of Parliament

EU Council

All laws passed by the EU Parliament must be approved by the Council. A qualified majority is needed to pass any law: 55% of EU Council members (15 states) representing at least 65% of the EU's population must vote in favour of a proposal for it to pass.

European Commission• 27 Commissioners in total one for each member

state• Appointed by member states• They must be approved by the European

Council• Commissioners swear oath of allegiance to

the EU• Commission functions as the executive of the

EU and supervises the EU bureaucracy• Proposes policy to the EU Parliament

The President of the Commission

• The Commission elects one Commissioner to be its President

• He represents the EU’s interests to world leaders and at major forums and conferences

• Portugal’s Jose Manuel Barroso is the current President

The EU Court of Justice

• Justices (judges) are appointed by member states

• Each member state appoints one justice• Justices swear allegiance to the EU and

not to national governments• Provides judicial review• All decisions by the court take

precedence over national laws

Judicial Review in action:

• In 1999 the EU Court declared British Beef safe to export to France declaring France’s ban of British beef illegal

• In 2008 it ruled that only cheese produced in Italy could be called Parmesan cheese

• In 2006 it overruled Italy’s policy of imprisoning illegal immigrants who do not leave the country

4) Lisbon Treaty Key Features• Ratified by all member states in Nov. 2009

• Strengthens the power of the European Parliament in the areas of EU budget, border, and immigration policies

• Greater involvement of national govts in the EU

• Creation of a permanent full-time EU Council president

• Introduction of EU Charter of Fundamental Rights and Freedoms

• Allows member states to withdraw from the EU

5) EU Broadening and Deepening

• EU Broadening means adding new members states to the EU

• All candidate members must be approved by all EU states – Unanimity principle

• And must satisfy three major requirements:1) must have a functioning and stable democratic

regime2) must have a market-oriented, capitalist

economy3) must accept all current EU laws and regulations

Issues and Problems with Broadening

• Should Turkey become a member of the EU?• It has recently liberalized its economy• Democracy is still illiberal• Civil and political rights of Kurdish minority are

heavily restricted• Should the richer Western European countries

be forced to subsidize new poorer members such as Romania, Bulgaria or bailout more Greeces?

• How many members is too many?

EU Deepening

• EU Deepening means adding new powers to the EU, and thus taking away decision making powers from national governments

Issues and Problems with Deepening

• How much sovereignty are national states willing to give up?

• Will member states ever agree on a common foreign policy (many were divided over the U.S. led invasion of Iraq)

• Britain, Denmark, Sweden, and the Czech Republic continue to use their own national currency instead of the euro

6)Economic and Political Issues

• EU Monetary Policy has been successful• The Euro is one of the strongest and most stable

world currencies• EU Common Agricultural Policy (CAP) has

not worked well• CAP provided EU subsidies (EU money) to help

farmers in member states compete against the world market

• Subsidies continue to burden the EU’s budget• Food prices have been on the rise• EU farmers are pressuring their national

governments to keep the subsidies

Democratic Deficit?

• Many Europeans have complained that most of the decision-making is done by high-level Ministers and bureaucrats

• The Parliament’s powers are weak• The turn-out for EU elections is much

lower than national elections• Many Europeans feel they have little

influence over the policies of the EU

Continued

• National legislatures do not have direct input into the decisions of the Commission

• Meetings of the Council of Ministers and the Commissioners are closed to the public.

Which state(s) trust the European Central Bank the least?

Greek Financial Crisis and bailout

Greece was admitted to the eurozone currency in 2003. Greece’s debt has been much higher than the eurozone average and its economy has been much weaker than other EU states

The 2009 global recession hit Greece especially hard. The state was near bankrupt, unable to pay its creditors or finance spending and programs. The International Monetary Fund (IMF) and the European Union agreed in 2009 to lend Greece 240 billion euros to avoid bankruptcy. These loans are conditional on Greece taking austerity measures:cutting spending, and reducing its debt

The rich EU member states had to pay for most of the Greek bailout. This add appeared in a German newspaper urging German representatives not to vote to give Greece billions of dollars.