Transcript The EMS and the Monetary Union

The EU and the Monetary Union
History 101
September 1946:
Winston Churchill calls for "a kind of United States of
Europe" as the only means of re-building society and
creating a third force, independent of the newly
dominant super-powers of the Soviet Union and the
United States of America.
The Treaty of Rome:1957
EC is born
Belgium
The Netherlands
Luxembourg
France
Germany
Italy
The Treaty of Rome: Initial goals
Free trade
Deregulation of capital markets
Free flow of labor
Where was Britain?
UK was supporting EFTA
What was the difference between EU and EFTA?
Different countries :)
EU countries had no barriers to intra-EU trade and one
set of common import duties and trade policies with
respect to third countries.
EFTA countries had no barriers to intra-EFTA trade, but
retained independence in setting their trade policy with
respect to third countries
The Brussels Agreement: 1962
Import duties and taxes to protect European farmers
Price controls on food products
Subsidies to European farmers
EU expansion
1972: Denmark, Ireland, and UK
1980: Greece
1986: Spain and Portugal
1995: Austria, Finland, and Sweden
EU expansion: 2004
Czech Republic
Cyprus
Lithuania
Malta
Estonia
Poland
Hungary
Slovakia
Latvia
Slovenia
EU expansion: 2007
Romania
Bulgaria
EU objectives today
To promote economic and social progress
To assert the identity of the European Union on the international scene
To introduce European citizenship
(which does not replace national citizenship but complements it and confers a number of civil and politic
rights on European citizens)
To develop an area of freedom, security and justice
To maintain and build on established EU law
Organization of EU
European Parliament
European Executive Commission
European Council
European Court of Justice
European Court of Auditors
European Parliament (Strasbourg)
It exercises democratic supervision over the Commission
It shares with the Council the power to legislate
It shares budgetary authority with the Council
Elected every five years by direct universal suffrage - party (not country)
representation
European Commission (Brussels)
The Commission is the Union's executive body
It represents the Union on the international stage and negotiates
international agreements
European Council (Brussels)
The Council is the EU's main decision-making body
Decision making: Consensus
Court of Justice (Luxembourg)
The Court of Justice ensures that Community law is uniformly interpreted
and effectively applied.
It has jurisdiction in disputes involving Member States, EU institutions,
businesses and individuals
Court of Auditors (Luxembourg)
It sees that financial management of the EU budget has been sound.
European Central Bank
The European Central Bank frames and implements
European monetary policy
Decision making
By consensus
The Accord of Nice on EU expansion
and institutional reform
Expansion into Eastern Europe
Institutional reform:
Qualified majority (at least 14 countries and 62% of total population)
instead of unanimity in making decisions, in 39 areas of interest
Country
Number of votes
Country
Number of votes
Germany
29
Denmark
7
France
29
Finland
7
UK
29
Ireland
7
Italy
29
Slovak
Republic
7
Spain
27
Luxembourg
4
Poland
27
Latvia
4
Romania
14
Lithuania
4
Holland
13
Estonia
4
Greece
12
Cyprus
4
Czech Republic
12
Malta
1
Belgium
12
TOTAL
345
Hungary
12
Portugal
12
Sweden
10
Bulgaria
10
THE COMPETENCES OF THE UNION
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Traditional EU policy areas
Coordination of economic policy (I-15)
Special rules for the Euro zone (I-15.1 and protocol)
Common foreign and security policy, and gradually a
common defense Area of Freedom, Security and Justice
(I-42)
EU negotiates international agreements on behalf of all
member states in areas where EU can legislate internally
Legal personality (I-7, I-40, I-41, I-42)
EXCLUSIVE COMPETENCES
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Customs Union
Competition rules for the functioning of the internal market
Monetary policy for the Euro countries
Conservation of marine biological resources
Common commercial policy
International agreements = “legal personality”
Points of contention
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Length and complexity: It is very long, at over 60,000
words compared to the 4,600-word US Constitution
Qualified majority voting
Union law and national law
Trappings of statehood: the TCE introduces a number of
elements that are traditionally the province of sovereign
states: flag, motto, anthem
Lack of democracy
Secularism
Militarism
Economic policy
Human rights
EU Constitution Ratification Map
The Treaty of Lisbon (13 December 2007)
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A strengthened European Parliament
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Rules for withdrawal from the Union
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Qualified majority voting in the Council & double majority (in 2014): 55% of
the Member States representing at least 65% of the Union’s population
The function of President of the European Council
Charter of Fundamental Rights (civil, political, economic and social rights)
into European primary law: binding legal force
New provisions on civil protection, humanitarian aid and public health
A new High Representative for the Union in Foreign Affairs and Security
Policy, new European External Action Service, single legal personality for
the Union
EU in 2009
http://europa.eu/abc/european_countries/index_en.htm