Course

Question 1

Legislative power

Answer 1

Council of Minister, Brussels

Question 2

Executive power

Answer 2

European Comission Brussels : Jean Claude Juncker

Question 3

Judicial power

Answer 3

European Court of Justice, Lux

Question 4

Council Ministiers

Answer 4

Intergovernmental

Can only pass new legislation, decisions need qualified majority or unanimity

Question 5

Europ Comission

Answer 5

Brussels, Supranational

Carry into practice stipulations of various EU treaties

Question 6

European Court of Justice

Answer 6

Lux, Supranational

Question 7

European Parlamaent

Answer 7

Brux, only advisor to Comission and Council

Supranational

Question 8

6 levels of integration

Answer 8

Free trade area 
Customs Union 
Common Market
Monetary union 
Economic union
Politic Union

Question 9

Traite de rome

Answer 9

1957 / free trade of goods, common external tariff, Value added tax, common agricultural policy

Question 10

Eurosclerosis

Answer 10

1966-1986

Stagnation / develept more countries and a monetary system with snake and SME

Question 11

The SNAKE

Answer 11

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

Question 12

EMS

Answer 12

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

Question 13

Single europe act 4 freedoms

Answer 13

1986 / 12 countries

Instaure 4 freedoms :

• freedom of goods and services
• movement of people
• establish and provide service
• movement of capital

Question 14

Why a Single EUR act ?

Answer 14

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

Question 15

3 features of SINGLE ACT

Answer 15

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

Question 16

Conclusion of SINGLE ACT ?

Answer 16

POSTIVE !!!
=> big sucess
4 freedoms
=> leads to MAASTRICHT

Question 17

Maastricht treaty, why ?

Answer 17

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

Question 18

3 pillars of Mastricht

Answer 18

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

Question 19

Masstricht, SO ?

Answer 19

+ big SUCESS, set up institutions
More role of Parlament
Europe citizenship
Euro

• britain refused ti sign social charts and euro
• foreign policy

Question 20

5 conditions (Mundell & Mc Kinnan - 1960s) for Optimal Currency Area Theory’s

Answer 20

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

Question 21

What is solution for converging to Mundell Theory ?

Answer 21

Engage further supranational policy effort :

• adoption lf a real supra EU budget
• common european fiscql policy