Regionalism and the European Union II Flashcards
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Timeline of the European Union - 1945 - 1959
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- A peaceful Europe – the beginnings of cooperation
- The European Union is set up with the aim of ending the frequent and bloody wars between neighbours, which culminated in the Second World War. As of 1950, the European Coal and Steel Community begins to unite European countries economically and politically in order to secure lasting peace. The six founding countries are Belgium, France, Germany, Italy, Luxembourg and the Netherlands. The 1950s are dominated by a cold war between east and west. Protests in Hungary against the Communist regime are put down by Soviet tanks in 1956. In 1957, the Treaty of Rome creates the European Economic Community (EEC), or ‘Common Market’
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Timeline of the European Union - 1960 - 1969
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- A period of economic growth
- The 1960s is a good period for the economy, helped by the fact that EU countries stop charging custom duties when they trade with each other. They also agree joint control over food production, so that everybody now has enough to eat - and soon there is even surplus agricultural produce. May 1968 becomes famous for student riots in Paris, and many changes in society and behaviour become associated with the so-called ‘68 generation’.
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Timeline of the European Union - 1970 - 1979
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- A growing Community – the first enlargement
- Denmark, Ireland and the United Kingdom join the European Union on 1 January 1973, raising the number of Member States to nine. The short, yet brutal, Arab-Israeli war of October 1973 results in an energy crisis and economic problems in Europe. The last right-wing dictatorships in Europe come to an end with the overthrow of the Salazar regime in Portugal in 1974 and the death of General Franco of Spain in 1975. The EU regional policy starts to transfer huge sums of money to create jobs and infrastructure in poorer areas. The European Parliament increases its influence in EU affairs and in 1979 all citizens can, for the first time, elect their members directly. The fight against pollution intensifies in the 1970s. The EU adopts laws to protect the environment, introducing the notion of ‘the polluter pays’ for the first time.
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Timeline of the European Union - 1980 - 1989
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- The changing face of Europe - the fall of the Berlin Wall
- The Polish trade union, Solidarność, and its leader Lech Walesa, become household names across Europe and the world following the Gdansk shipyard strikes in the summer of 1980. In 1981, Greece becomes the 10th member of the EU, and Spain and Portugal follow five years later. In 1986 the Single European Act is signed. This is a treaty which provides the basis for a vast six-year programme aimed at sorting out the problems with the free flow of trade across EU borders and thus creates the ‘Single Market’. There is major political upheaval when, on 9 November 1989, the Berlin Wall is pulled down and the border between East and West Germany is opened for the first time in 28 years. This leads to the reunification of Germany, when both East and West Germany are united in October 1990.
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Timeline of the European Union - 1990 - 1999
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- A Europe without frontiers
- With the collapse of communism across central and eastern Europe, Europeans become closer neighbours. In 1993 the Single Market is completed with the ‘four freedoms’ of: movement of goods, services, people and money. The 1990s is also the decade of two treaties: the ‘Maastricht’ Treaty on European Union in 1993 and the Treaty of Amsterdam in 1999. People are concerned about how to protect the environment and also how Europeans can act together when it comes to security and defence matters. In 1995 the EU gains three more new members: Austria, Finland and Sweden. A small village in Luxembourg gives its name to the ‘Schengen’ agreements that gradually allow people to travel without having their passports checked at the borders. Millions of young people study in other countries with EU support. Communication is made easier as more and more people start using mobile phones and the internet.
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Timeline of the European Union - 2000 – 2009
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- Further expansion
- The euro is now the new currency for many Europeans. During the decade more and more countries adopt the euro. 11 September 2001 becomes synonymous with the ‘War on Terror’ after hijacked airliners are flown into buildings in New York and Washington. EU countries begin to work much more closely together to fight crime. The political divisions between east and west Europe are finally declared healed when no fewer than 10 new countries join the EU in 2004, followed by Bulgaria and Romania in 2007. A financial crisis hits the global economy in September 2008. The Treaty of Lisbon is ratified by all EU countries before entering into force in 2009. It provides the EU with modern institutions and more efficient working methods.
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Timeline of the European Union - 2010 – today
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- A challenging decade
- The global economic crisis strikes hard in Europe. The EU helps several countries to confront their difficulties and establishes the ‘Banking Union’ to ensure safer and more reliable banks. In 2012, the European Union is awarded the Nobel Peace Prize. Croatia becomes the 28th member of the EU in 2013. Climate change is still high on the agenda and leaders agree to reduce harmful emissions. European elections are held in 2014 and more Eurosceptics are elected into the European Parliament. A new security policy is established in the wake of the annexation of Crimea by Russia. Religious extremism increases in the Middle East and various countries and regions around the world, leading to unrest and wars which result in many people fleeing their homes and seeking refuge in Europe. The EU is not only faced with the dilemma of how to take care of them, but also finds itself the target of several terrorist attacks. Perhaps it’s most serious challenge was the Brexit vote in 2016, leading to the exit of the UK in January 2020. Tensions have arisen about how to ‘Brexit’ and other populist movements have been emboldened by this. Italy has also come into conflict with the EU over its budget, with the Commission rejecting Italy’s draft budget proposals. In 2019, Italy agreed to back down over it’s high spending plans and avoided a high fine. As of December 2020, the UK and the EU negotiated a just in time trade deal and Poland and Hungary have increasingly diverged from the democratic requirements of EU membership, but the EU Commission has agreed new protocols to deprive state aid from states who become too authoritarian, it remains to be seen how effective these new protocols will be.
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Intergovernmentalism
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Any form of interaction between states that takes place on the basis of sovereign independence. Sovereignty is preserved through a process of unanimous decision-making that gives each state a veto, at least over matters of national importance
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Supranationalism
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The existence of an authority that is ‘higher’ than that of the nation-state and capable of imposing its will on it. It can therefore be found in international organisations where sovereignty is shared between central and peripheral bodies.
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The Council
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- Informally called the Council of Ministers, this is the decision-making branch of the EU, and comprises ministers from the 27 states, who are accountable to their own assemblies and governments. The presidency (vested in a country not a person) of the Council rotates amongst member states every six months. Important decisions are made by unanimous agreement, and others are reached through qualified majority voting or by simple majority.
- Rotates between member states
- Intergovernmental - discussion between member states, QMV - 15/27 (55%) of member states representing 65% of the EU population need to approve for decision - most of the time unanimity and ultimately 1990-2016 - Britain was outvoted only 2% of the time
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The European Council
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- Informally called the European Summit, this is made up of the presidents or prime ministers of each member state, accompanied by their foreign ministers, and a permanent, full-time President of the European Council (since 2019, Charles Michel). The European Council meets four times a year and provides strategic leadership for the EU.
- President Antonio Costa
- Intergovernmental - Dec 2023 Hungary blocks 50bn of EU funding for Ukraine, Feb 2024 - Ukraine support package worth 50bn agreed by EU leaders - but NOT on behalf of Europe, but yourself - arguably most powerful council
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The European Commission
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- Based in Brussels, with a staff of some 20,000 people, the Commission is the executive – bureaucratic arm of the EU. It is headed by 27 Commissioners and a President (Ursula von der Leyen’s term of office as President began in 2019). The Commission proposes legislation, is a watchdog that ensures that the EU’s treaties are respected, and is broadly responsible for policy implementation
- President Ursula von der Leyen
- Supranational - 2021-2027 - failure by Warsaw to comply with crucial EU requirements on fundamental rights means the bulk of payments under the union’s new round of cohesion spending. 2004 - Imposed a 479M fee on Microsoft for abusing its dominant position in the market for computer operating systems
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The European Parliament
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- Usually located in Strasbourg, the EP is composed of 705 (previously 751 with the UK) Members of the European Parliament (MEPs), who are directly elected every five years. MEPs sit according to political groups, rather than their nationality. Although its powers have been expanded, the Parliament remains a scrutinising assembly, not a legislature. Its major powers (to reject the EU’s budget and dismiss the European Commission) are too far-reaching to exercise.
- Roberta Metsola
- Supranational - EU wide decisions, can approve or reject legislation across member states - makes decisions across the whole of the EU
- Most democratic, has the least power!
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The European Court of Justice
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- Based in Luxemburg, the ECJ interprets, and adjudicates on, EU law and treaties. There are 27 judges, one from each member state, and 11 advocates general, who advise the Court. As EU law has primacy over national law of EU member states, the Court can disapply domestic laws. A Court of First Instance handles certain cases brought by individuals and companies.
- Koen Lenaerts
- Supranational - Ireland fired 2.5M by EU over online-safety rule delayes. 2022 - Moving to withold millions of euros in funds intended for Poland after leaders there refunded to pay legal fines over the Tirow coal mine - Poland refused to shut it down, imposed a fine from ECJ of 500K a day as long as it operates
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The European Central Bank
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- Located in Frankfurt, the ECB is the central bank for Europe’s single currency, the Euro. The ECB’s main task is to maintain the Euro’s purchasing power and thus price stability in the Euro area. The Eurozone comprises the 19 EU countries that have introduced the Euro since 1999.
- Christine Lagarde
- Supranational
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Expansion of the EU
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- The end of the 2000s was a difficult time for the European Union. The rapid expansion during this decade of its membership, resulted in accusations of too greater differences between the member states. Similar complaints were made in relation to the Treaty of Lisbon (2009), with the argument being made that this put too much power into the hands of the European Union.
- These two complaints linked to the types of expansion the EU has undertaken, colloquially known as “widening” and “deepening” of the EU. Deepening and widening are two schools of thought as to how the EU should develop.
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Deepening
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The notion of deepening refers to this ever closer union and is seen in the increased integration of the EU. Its clearest manifestation has been the EU’s transition towards economic and monetary union (EMU) and the introduction of the single currency, the euro.
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Widening
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Proponents of widening consider that the EU should expand in terms of membership but that this membership should be looser than that desired by the deepening school. The EU has also managed to widen itself, enlarging from 15 countries in 2004 to 28 in 2013. It is now 27 after Brexit.
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The Treaty of Rome 1957
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- The Treaty of Rome established the European Economic Community (EEC) which is seen as a major stepping stone in the creation of the EU. The EEC established a common market, which gave members the freedom to move goods, services, capital and people, and also a customs union among the founding states.
- It was signed in Rome in March 1957 by France, the then West Germany, Italy, the Netherlands, Belgium and Luxembourg - the core of the original EEC, who described themselves as “determined to lay the foundations of an ever closer union among the peoples of Europe”.
- The treaty, which came into force on January 1 1958, is still the legal basis for the workings of EU institutions. Many people forget that there were actually two treaties signed that day.
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What did the Treaty of Rome say?
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- The treaty set up an organisation which ensured the establishment and government of the EEC. Four institutions were created to do this; a Commission, a Council of Ministers, a Parliamentary Assembly (that later morphed into the European Parliament) and a European Court of Justice.
- Just six members signed up initially, (known as “the original six”) but over the years more and more nations became members through the process of EU enlargement. Today there are 28 member states, although once the UK quits this will fall to 27.
- The aim was to transform trade, industry and manufacturing in the EEC and secondly, to work towards a unified Europe. These days, the Treaty of Rome, which has undergone multiple amendments, is called the Treaty on the Functioning of the European Union.
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Treaty of Rome - Establish CAP and CFP
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- History - The plan to increase economic integration between European countries came about following the Second World War as nations looked to protect and enhance their economies, raise living standards and reduce the risk of conflict by working together.
- Winston Churchill spoke of the need to create a “European Family” or a “United States of Europe” to ensure peace in Europe in a speech in Zurich in 1946. The first step along this road was to implement the Schuman Plan, the brainchild of French Foreign Minister Robert Schuman who wanted to create a single body to control the production of steel and coal in France and West Germany, and any other European country who wanted to be a member.
- The European Coal and Steel Community (ECSC) was born in 1951 under the Treaty of Paris, opening up the coal and steel markets in France, Italy, Luxembourg, West Germany, Belgium and the Netherlands for the first time. The aim was to encourage nations to be dependent on each other, and make war between historic rivals France and Germany “not merely unthinkable, but materially impossible”.
- In 1955, negotiations began in Messina, Italy which led to the formation of the Treaty of Rome two years later. The aim was to extend the principles of the ECSE and create a common market for all goods and services between members. That year, the European flag of 12 gold stars on a blue background was created.
- The United Kingdom joined in 1973, under Conservative Prime Minister Edward Heath. Ireland and Denmark also joined that year taking the number of member nations to nine. In 1981, Greece joined, followed by Spain and Portugal five years later. Austria, Finland and Sweden were added in 1995.
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The Maastricht Treaty 1993 - It established the European Union
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Officially known as the Treaty on European Union, marked the beginning of “a new stage in the process of creating an ever closer union among the peoples of Europe”. It laid the foundations for a single currency, the euro, and significantly expanded cooperation between European countries in a number of new areas:
- European citizenship was created, allowing citizens to reside in and move freely Member States
- A common foreign and security policy was established
- Closer cooperation between police and the judiciary in criminal matters was agreed
The Treaty was signed in the Dutch city of Maastricht, which lies close to the borders with Belgium and Germany. It was the result of several years of discussions between governments on deepening European integration.
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The Maastricht Treaty - It was signed by 12 countries
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- Representatives from 12 countries signed the Treaty on 7 February 1992 – Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain and the United Kingdom. The parliaments in each country then ratified the Treaty, in some cases holding referendums. The Maastricht Treaty officially came into force on 1 November 1993 and the European Union was officially established.
- Since then, a further 16 countries have joined the EU and adopted the rules set out in the Maastricht Treaty or in the treaties that followed later.
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The Maastricht Treaty - laid the foundations of the euro
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The Maastricht Treaty paved the way for the creation of a single European currency – the euro. It was the culmination of several decades of debate on increasing economic cooperation in Europe. The Treaty also established the European Central Bank (ECB) and the European System of Central Banks and describes their objectives. The main objective for the ECB is to maintain price stability, i.e. to safeguard the value of the euro.
European leaders revived the idea of a single currency in 1986 and committed to a three-stage transition process in 1989. The Maastricht Treaty formally established these stages:
- Stage 1 (from 1 July 1990 to 31 December 1993): introduction of free movement of capital between Member States
- Stage 2 (from 1 January 1994 to 31 December 1998): increased cooperation between national central banks and the increased alignment of Member States’ economic policies
- Stage 3 (from 1 January 1999 to today): gradual introduction of the euro together with the implementation of a single monetary policy, for which the ECB is responsible
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The Maastricht Treaty - It introduced the criteria that countries must meet to join the euro
Along with setting out the timeline for the introduction of the single currency
The Treaty also established rules on how the euro would work in practice. This included how to determine if countries were ready to join the euro.
The purpose of these particular rules, sometimes referred to as the Maastricht criteria or the convergence criteria, is to ensure price stability is maintained in the euro area even when new countries join the currency. The rules work to ensure that countries joining are stable in the following areas:
- Inflation
- Levels of public debt
- Interest rates
- Exchange rate
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The Maastricht Treaty - It was a giant leap forward for European integration
Since the signing of the Maastricht Treaty, European countries have grown closer together while some policy areas such as economic and fiscal policies remain at national level. European leaders have agreed on additional steps to promote further integration between European states:
- The Stability and Growth Pact was agreed in 1997 to ensure that countries followed sound budgetary policies
- The European Stability Mechanism was established to provide financial assistance to euro area countries experiencing or threatened by severe financing problems
- The Single Supervisory Mechanism and the Single Resolution Board were created after the financial crisis to make the European banking system safer, as well as to increase financial integration and stability
Today, more than 510 million citizens from 28 Member States enjoy the benefits of European cooperation. And 25 years after the roadmap towards the euro was agreed, the euro has become the world’s second most traded currency and is part of the daily life of 340 million citizens in 19 countries.
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Lisbon Treaty - 2009
- While it was not explicitly called a European constitution, the treaty addressed a number of issues that had been central to the 2004 EU draft constitution, an initiative that was scuttled after voters in France and the Netherlands rejected it in 2005. Under the amendments of the Lisbon Treaty, the European Community—which had provided the economic framework upon which the EU was built—disappeared, and its powers and structure were incorporated into the EU. Moreover, the office of a permanent EU president was created, with the president chosen by the leaders of the member countries from a pool of candidates that they had selected.
- The leader holding this two-and-a-half-year post, officially called the president of the European Council, would provide a “face” for the EU in matters of Union policy. (The rotating EU presidency) The power of the European Parliament also was enhanced and its number of seats revised. Additionally, the Charter of Fundamental Rights, initially proposed at the Council of Nice in 2000, entered into force as part of the Lisbon Treaty. It spelled out a host of civil, political, economic, and social rights guaranteed to all citizens of the EU.
- Perhaps the most sweeping changes, though, were to the voting mechanisms that determined EU policy. Within the Council of the European Union—the EU’s main decision-making body—the system of qualified majority voting (QMV), previously used only in certain circumstances, was extended to more policy areas, thereby easing the decision-making process. In addition, for most decisions, 55 percent of member states, provided they represented 65 percent of the EU’s population, would be able to approve a measure. This “double majority” voting rule, which represents a simplification of the former system of weighted votes, would be phased in over time. Matters of defense, foreign policy, social security, and taxation would still require unanimous approval, however. While QMV and the “double majority” rule were designed to streamline decision making at the highest levels, critics argued that they would reduce the influence of smaller countries at the expense of larger ones.
- Partly to address this, the Lisbon Treaty introduced the European Citizens’ Initiative, a process by which EU citizens could directly petition the European Commission (the EU’s main executive body) by gathering one million signatures from a number of member states.
- At the time of the Lisbon Treaty’s ratification, the EU was experiencing a period of territorial expansion and economic growth. The debt crisis that would hobble the euro zone economy was still on the horizon, and Bulgaria and Romania had completed the accession process just two years earlier. Little public attention was paid to Article 50 of the treaty, which outlined the provisions under which a country could leave the EU. As the Greek economy spiraled out of control in 2010 and austerity measures failed to slow its descent, EU leaders began to seriously address the possibility of a “Grexit” (“Greek exit”) from the euro zone and the EU.
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EMU (European Monetary Union)
- In 1991 it was agreed under the Maastricht Treaty that EU members would move beyond stabilising exchange rates and would establish a single currency (Britain and Denmark had opt outs) - it was later agreed to call this the euro.
- The countries qualifying to join the EMU had to meet convergence criteria set by the Maastricht Treaty. The fact that Britain, Denmark and Sweden stayed outside the euro meant that a ‘multi-speed Europe’ had developed. By 2018, 19 EU countries have the Euro, with 3 “opt-outs” and 6 countries yet to reach the criteria required to adopt the currency.
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How EMU works
Currencies of states participating in EMU were phased out in 2002 and replaced by the Euro. The European Central Bank controls the monetary policy of EMU members (e.g. money supply, interest rates). This is completely independent of member states' governments and has a council which includes the heads of national central banks (which must be independent of their national governments). The President is appointed for 8 years (currently Mario Draghi who took over from Jean-Claude Trichet in November 2011). Euro- zone Finance Ministers meet to discuss economic policy regularly.
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Why EMU?
As with all major stages in the EU's development, the motives are both economic and political. Potential economic benefits include:
- The euro completed the single market by removing further obstacles to trade - the costs to traders (and travellers) of converting from one currency to another. Without uncertainty about exchange rates, firms should be able to trade on lower profit margins, leading to savings and lower prices.
- Transparency of prices should benefit efficient producers, promote cross border trade and benefit consumers.
- The discipline of the Stability Pact and the independent control over monetary policy of the ECB should ensure stable money and low inflation.
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EMU political arguments
- It could be argued that national monetary sovereignty is a fiction. In reality, national decisions are heavily influenced by the financial markets - by pooling their sovereignty in this respect, EMU members actually gain sovereignty.
- The approach taken in order to stabilise the currency are now in theory shared between member states, rather than dominated by Germany.
- Finally, some of the supporters of EMU see it as a large step towards the federalist goal of political union. Not only does EMU represent a considerable step towards a federal system in itself, but it is possible that the logic of the EMU will lead on to further integration (tax harmonisation? a larger EU budget to offset the negative impact of EMU on depressed areas that can't protect themselves by devaluation?).
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EMU negatives
- Economic risks included misjudgements by the ECB and a lack of political will on the part of euroland governments to stick to the rules (e.g. the provisions of the Stability Pact). This has already happened – even though France & Germany had budget deficits that breached the rules in the mid 2000s, they persuaded the other members to water down the rules & evaded any penalties. Furthermore interest rate policies designed to suit some member states proved to be the opposite of what was needed by others (best exemplified by the examples of Ireland and Germany in the 1990s). Countries facing economic problems cannot improve their competitiveness by devaluation (as Italy used to do with the lire). Nor were they supposed to raise public spending by borrowing beyond Stability Pact limits to tackle unemployment - (though the refusal of France and Germany to keep to the rules seems to have made this aspect of the system unenforceable).
- Political costs involve the loss of national sovereignty over key areas of economic and monetary policy - interest rates, money supply, levels of public borrowing, etc. Moreover, the power removed from elected national governments has been transferred to an unelected, independent ECB, enormously adding to the 'democratic deficit' in the EU.
