Transcript EU ECONOMICS

EUROPEAN UNITY MOVEMENT
• Federalists
• Functionalists and Neo-functionalists
• Nationalists
- supranational powers
two meanings
DEVELOPMENT OF THE EEC
1958-69
• Original Rome Treaty clearly called for the creation of a
common market
• It goes beyond a common market in the commitment to
create common policies in agriculture, transport and
commercial policy
• Also additional institutions such as the European Social
fund and European Investment Bank created
• Rudimentary system of macroeconomic co-ordination
- Considerable progress made in achieving proposed ends
- Main limitation was lack of genuine supranational element
EEC (Con)
1969 - 79
• New areas of policy opened up
• Proposal to move towards EMU
• Commencement of negotiations to form Common
Fisheries Policy
• New policies in relation to industry, science and research
Institutional Developments
• Recognition of meetings of Heads of State as European
Council
• System of own resources for European Budget
• European Parliament given greater powers
EEC (Con)
1979 -1990
• Difficulties as Community started to stagnate with
considerable barriers to trade emerging creating need for
more ambitious initiatives at integration
• Passing of Single European Act (SEA) though falling short
of full integration made important changes
1990 - 2000
• Maastricht Treaty ratified by member countries paving way
for full Economic Union
• Present issues - future of EMU, social and economic
concerns, democratic deficit in Community
SINGLE EUROPEAN ACT (1987)
• Placed three European Communities at centre of search for European
unity and European Council recognised as the supreme overall body
• Main changes to Rome Treaty
- majority voting introduced for certain decisions in Council of
Ministers in relation to completion of internal market, economic and
social cohesion and science and technology
- legislative relation between Council and Parliament reformed through
cooperation mechanism and power to conclude traties
- additional Court drafted on to Court of Jusice (Court of First
Instance)
- new provisions on macroeconomic policy
- provisions concerning social policy and working environment
- innovations in relation to economic and social cohesion (leading to
structural funds)
1988 – Delors Report – blueprint for EMU
MAASTRICHT TREATY
• Background
- considerable progress with SEM
- reunification of Germany
- two IGC’s on EMU and Political Union
• Maastricht Treaty (Treaty on European Union)
- achieving agreement difficult
- opt out clauses for some nations
- problems with exchange rates
- pressure on CAP
1993 - achievement of EEA (European Economic Area)
Cohesion fund set up
Enlargement of EEU - 1995 with need for institutional reform
AMSTERDAM TREATY - 1997
• Designed as an update to Maastricht Treaty
- Opt-out clause on Social Chapter removed
• Largely concerned with initial preparations foe enlargement of
Community though difficult decisions postponed till a later date
• Extension of majority voting to many decision areas at Council of
Europe
• Allowed for notion of two-speed Europe where countries willing to
cooperate would forge ahead on certain issues
• Incorporation of Schengen Agreement on free border movement
between EU countries into law (except Ireland and UK)
EUROPEAN CONSTITUTION
• Arose as a result of dissatisfaction with Nice Treaty which led to a
convention to consider more wide ranging reforms - made up of
representatives of national governments, national parliaments,
Commission and European Parliament with Chairman former French
President Valery Giscard d’Estaing
• Much disagreement in evidence
- between existing members such as France and Germany and the
new member states
- on the issue of federalism with some countries e.g. UK bitterly oppose
to federalism
- on institutional reforms with opposition by Spain to reforms in qualified
majority voting rules
EUROPEAN CONSTITUTION
• Draft constitution concluded in June 2003 - agreement on it after
intergovernmental meetings by June 2004
Constitution contained four parts
• Part 1, the quasi-constitutional part covered key areas such as EU’s
competences, institutions, membership, objectives and values
• Part 2 related to the Charter of Fundamental Rights (that had already been
proposed at an earlier stage)
• Part 3 consisted of existing treaties with some important changes
• Part 4 included protocols and ancillary material
EUROPEAN CONSTITUTION
Major proposed changes
• Presidency of European Council no longer to rotate every 6 months - rather
a President to be elected by QMV for a period of 2 and a half years
• New EU Foreign Minister to be elected
• National veto to be abolished in 20 additional areas though still remaining
with respect to defence, foreign policy, taxation and social security matters
• From 2009 present system of QMV currently weighted by economic
importance to be weighted by population with 60% majority required
- however in case of veto enhanced cooperation allowed for (provided one
third of member states support action
• Two-tier Commission proposed after 2009 with only 15 Commissioners
having full voting rights
- all states guaranteed Commissioner 10 out of every 15 years
EUROPEAN CONSTITUTION
• Parliament to see extension of its powers with its approval required with
respect to many new policy areas (from 34 to 70)
- after 2005 Parliament to have 732 seats (up from 626)
• Role given to national parliaments – with reconsideration of Commission
proposals required if one third request this
• Police and judicial issues brought within EU’s normal structures with
possibility of EU justice department being created
European Constitution rejected in Holland and France referenda ensuring that
it will not be adopted (at least in its present form)
NICE TREATY
• Concerned with constitutional arrangements for new member countries
• Difficulties with first Nice Treaty (2000) with a No vote in Ireland
• Eventually agreed in 2004 paving the way for entry of 10 new
countries
• Proposes changes wit respect to Parliament, Commissioners, weighting
of votes, majority decision issues, budget etc.