Course Flashcards
Legislative power
Council of Minister, Brussels
Executive power
European Comission Brussels : Jean Claude Juncker
Judicial power
European Court of Justice, Lux
Council Ministiers
Intergovernmental
Can only pass new legislation, decisions need qualified majority or unanimity
Europ Comission
Brussels, Supranational
Carry into practice stipulations of various EU treaties
European Court of Justice
Lux, Supranational
European Parlamaent
Brux, only advisor to Comission and Council
Supranational
6 levels of integration
Free trade area Customs Union Common Market Monetary union Economic union Politic Union
Traite de rome
1957 / free trade of goods, common external tariff, Value added tax, common agricultural policy
Eurosclerosis
1966-1986
Stagnation / develept more countries and a monetary system with snake and SME
The SNAKE
1972-1978
Maintain fixed exchange rates among themselves = 2,25%
But NEGATIVE :
- lots of inflation
- central banks dependant for uktumate supply of reserve currency
- France & Italy left
- more beneficient for UK, IRE, DEN
EMS
1979-1999
a new reserve currency (ecu)
No dependant from the US
Commitment to maintain fixed echange rate 2,25 %
Convergence bcause countries follow same macroenconimcql fiscal and monetary policy
SUCESS - gives countries good level of currency stability
Facilitate trades => € and MASTRICHT
Single europe act 4 freedoms
1986 / 12 countries
Instaure 4 freedoms :
- freedom of goods and services
- movement of people
- establish and provide service
- movement of capital
Why a Single EUR act ?
2 reasons
1) economic Treaty of Rome failure too many internal borderchecks for good services too much paperwork / carte sejour no freedom of movement
2) frustration of eurosclerosis
Cold war so need of cooperation
Political personalities as Elmut Kohl FM
Reports and suggests
3 features of SINGLE ACT
1) Suppress internal customs frontiers
- less paperwork
- standards goods
- open public purchase
- convergence TVA
- dvpt common transport
2) New economic competences for the EC
- environment
- social
- health safety
3) Major Institutional Reform
- council of minister
- + parlament power
- new court of first instance
Conclusion of SINGLE ACT ?
POSTIVE !!!
=> big sucess
4 freedoms
=> leads to MAASTRICHT
Maastricht treaty, why ?
1) Commitment in Single Act
- single currency for a single market
- develop social common dimensiln for signle market
2) Powerful Politicial Factors
- Draft rreaty of EU
- URSS collaps
3 pillars of Mastricht
1) Supranational european community
- single currency, creation of eur cent bank
- 3 stages gradual (EMS, convergence of echange rate and central bank)
2) commin foreign and security policy
3) common home affairs policy
Masstricht, SO ?
+ big SUCESS, set up institutions
More role of Parlament
Europe citizenship
Euro
- britain refused ti sign social charts and euro
- foreign policy
5 conditions (Mundell & Mc Kinnan - 1960s) for Optimal Currency Area Theory’s
1) Common Market / OK
2) Similar goals in macroeconomic politics / OK
3) Similar mid long term business scycles / OK for nothern countries
4) Convergent in stages of business cycles
Current but temporary misalignment of cycles
5) Possibility of adjusting asymetric development through :
Fiscal transfers among members
High factors input mobility within the EU
Wage and Price flexibility
/ NOT OK
What is solution for converging to Mundell Theory ?
Engage further supranational policy effort :
- adoption lf a real supra EU budget
- common european fiscql policy
