T2 Budget,desicion making process(1) Flashcards
Treaty of Rome
it laid out virtually every aspect of economic integration implemented up to the 1992 Maastricht Treaty.
The Treaty of Rome was re-labelled as
“Four freedoms”: of Treaty of Rome
goods, service, workers and capital;
Main elements of the treaty of rome( 3)
Free trade in goods: eliminate tariffs, quotas and all other trade barriers
(customs union): - this element constitutes the difference with a free trade area - customs Union to prevent “trade deflection” or “tariff cheating”.
Ensuring undistorted competition (to avoid “deals” that offset trade barrier removal): - state aids are mostly prohibited; - anti-competitive behaviour regulated by Commission; - approximation of laws (i.e., harmonization); - taxes (weak restrictions but no explicit harmonization).
Main elements of treaty of rome (4)
Unrestricted trade in services: - principle of freedom of movement of services
Labour and capital market integration: - free movement of workers (extended to “people” in the SEA); - free movement of capital
Exchange rate and macroeconomic coordination
Common policy in agriculture
Tax policy
like social policies, tax policy directly touches the lives of most citizens and it is the outcome of a national political compromise. Thus, tax policies have been slightly harmonized (and it was not easy!) but not made equal.
Until the Maastricht Treaty, most integration initiative were decided with
supranational decision-making procedures.
supranational decision-making procedures. Two problems:
old debate between federalists and intergovernmentalists:
integration that was taking place outside of the EU’s structure (e.g. Schengen Accord).
old debate between federalists and intergovernmentalists
the ‘vanguard’ wished to spread European integration to areas not covered in the original Treaties;
- the ‘doubters’ worried that supranational decision-making procedures were producing an irresistible increase in the depth and breadth of European integration;
The Maastricht Treaty drew
a clear line between supranational and intergovernmental policy areas: the 3-pillar organizational structure.
The Lisbon Treaty has
a roof and only 2 pillars: one for supranational issues and one for intergovernmental issues.
One of the most unusual and important things about the EU is
its supranational legal system
By the standards of every other international organization in the world, the European legal system is
extremely supranational.
Main principles of EU LAW
direct effect: EU law can create rights which EU citizens can rely upon when they go before their domestic courts;
- primacy: Community law has the final say (e.g., highest French court can be overruled) so that it cannot be altered by national, regional or local laws in any member state;
- autonomy: system is independent of members’ legal orders.
The ‘Big-5’ institutions
the European Council(national leaders)
- the Council;
-Commission(excecutive branch - proposes law and budget)
- the European Parliament(like lower house)
- Court of Justice of the European Union (like supreme court)
