The EU: A Significant Global Actor? Flashcards
arguments suggesting that the European Union is a significant global actor
significant political influence
significant economic influence
significant structural influence
arguments suggesting that the European Union is NOT a significant global actor
limits to political influence
limits to economic influence
limits to structural and military influence
significant political influence
POLITICAL INFLUENCE
most successful body of its kind
through enlargement, the EU can get countries to change their ways in order to become members of the EU – as seen in Croatia, Serbia, etc.
can mould global opinions on environmental issues as it has been very influential at Paris and Kyoto conferences
both political and security concerns also meant that states were eager to join the EEC and the EU
many states in Europe has been through turbulent times in the latter half of the 20th century
some had been under right-wing dictatorships like Greece, Spain and Portugal, while others including Poland, Bulgaria and Estonia were part of the Soviet bloc or even part of the Soviet Union itself
defence against communism was a factor in bringing states together in the early days of the EEC
for countries that were previously under Soviet control, membership of the EU was a sign of their political maturity
joining the EU meant joining the club of the most respectable democracies in Europe, alongside the likes of France, the Netherlands and the UK
so with human rights respected and democracy embedded through the EU, these countries could leave the past behind them
2004 – 25 members: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia join, these 8 former Soviet or Soviet bloc countries were entrenching democracy while Malta and Cyprus had become capitalist, meaning they all met the accession criteria by 2004
2007 – 27 members: Bulgaria and Romania join, a further example of former Soviet bloc countries entrenching democracy and capitalism
2013 – 28 members: Croatia joins, an example of a former Yugoslav country entrenching democracy and capitalism
limits to political influence
POLITICAL INFLUENCE
28 member states, all with different national interests, makes agreement hard to achieve and results in a lot of division, reducing its political influence
Undermined by Brexit
significant economic influence
ECONOMIC INFLUENCE
508 million citizens, makes it the largest single market in the world
When combined, the EU is the second largest economy by GDP and is one of the most significant trading partners for most states across most continents, with a particularly heavy representation in America and Africa. Some of the world’s largest economies are represented within the EU and so the power of the EU to make and shape trade deals across the globe qualifies it as a major power in the global economy. Due to the single market and customs union, the EU sees its greatest cohesion of member states in international economic institutions, with the EU consistently being a dynamic, powerful bloc in WTO, WB and IMF votes. Though the subsidisation of agricultural goods has led to continued criticism of the EU’s treatment of developing states, the EU is still one of the most influential world economies in the development of LDCs. Besides (arguably) China’s infrastructure development scheme across Africa, the EU’s Everything But Arms policy is one of the most influential in encouraging growth amongst developing economies, granting the 48 UN designated LDCs duty-free and quota free trade. Thus, not only is the EU one of the largest and most competitive economies globally, but it is also one of the most influential forces in the development of the future economic order as it continues to invest in and cooperate with the world’s developing states.
TTIP
EU states are represented at the WTO by the European Commission, giving the EU economic leverage and clout
1957 – creation of the European Economic Community (EEC) or Common Market
EEC was established through the Treaty of Rome
the 6 countries of the ECSC set up a common market to facilitate trade and economic growth
the aim was to bring about peace, stability and prosperity for the 6 member states
the EEC quickly led to increased trade and prosperity in the 6 member states and states outside the EEC, like the UK, looked on in envy at the economic growth that these countries were achieving together
despite the UK’s attempts to emulate the success of the EEC through the European Free Trade Association (EFTA), by the early 1960s the UK had applied for membership of the EEC
the EEC, and later the EU, attracted more and more countries over the coming decades and by 2015, the EU had 28 member states
1973 – expansion of the EEC
the number of members states rose to 9 after Denmark, Ireland and the United Kingdom joined
the Single European Act (1986) led to the creation of the single market and the attempted elimination of non-tariff barriers to trade
2002 – introduction of Euro notes and coins in the Eurozone
12 states started using the same physical currency and 19 do today
limits to economic influence
ECONOMIC INFLUENCE
Contrastingly, critics of the EU’s position as a major economic actor point to the absence of a fiscal union as putting the Euro and the EU as a whole in financial jeopardy. The EU also lacks a cohesive direction amongst some of its most important members, with Britain often rejecting significant and symbolic economic EU schemes (such as the Euro) proposed by Germany and France, the two largest EU powers. The role of the EU as a major actor in the global economy can also often be confused with the role of France, Britain, Germany and other wealthy member states which completely outshine their poorer EU counterparts. However the free flow of goods and services, coupled with the world’s largest customs union, means the EU will likely remain one of the world’s most prominent and influential economic blocs despite any potentially limiting factors.
for others, the euro is a symptom of the madness of the European project
they see it as a triumph of ideology and dogma over reality and common sense, as well as an attempt to bind different countries together culturally, politically and economically with a one size fits all approach
critics see the economic project as damaging to states, companies and individuals, and even as the factor behind the recent low growth and high unemployment in Greece, Italy, Spain and Portugal
the Eurozone crisis
both the causes and solutions to the Greek debt crisis are linked to the politics and economics of the EU and the euro
the introduction of the euro meant that Greece could borrow at cheaper interest rates than before, as stronger economies like Germany and the Netherlands were in the euro
however, with the international financial crisis of 2008, recession hit and the cost of borrowing went up for Greece
their debt soon became unsustainable and the country was at risk of defaulting, so they had to rely on loans from the European Union and its member states, as well as the IMF and private lenders
many argue that the Greek situation was brought on and exacerbated by the euro
the deepening of the EU by introducing the single currency has made the financial situation for ordinary Greek people close to catastrophic
youth unemployment hit 60% during the crisis, with young Greeks leaving the country for jobs abroad, whole families were living off the dwindling income from grandparents’ pensions and the economy had been squeezed so much that it is struggling to get any growth at all
the euro is blamed because it relies on a single interest rate for the entire euro area
this area includes strong manufacturing and exporting economies like Germany and the Netherlands, known for their economic prudence, but it also includes weaker southern European economies like Greece and Spain
the cheap interest rates encouraged Greece to borrow too much
furthermore, the traditional and orthodox way of getting out of a debt crisis such as Greece’s would be to devalue their currency to kick-start their economy, making exports cheaper
however, this is not an option for Greece as they are a member of the euro, making such a drastic move impossible
overall, it seems to be clear that Greece has had fewer options available to them because they are in the euro, they are essentially in an economic straight jacket
for critics, the economic and political deepening of the EU has caused the Greek crisis
they believe that the euro was ill-conceived, an accident waiting to happen and will inevitably fail, arguing that you cannot just have one currency that works for 19 or more economies as these economies are vastly different and out of sync with each other
arguably, the euro is an integration too far and has been a major factor behind one the most notable debt crises in Europe
Brexit
significant structural influence
STRUCTURAL INFLUENCE
different national interests represented within institutions
agreement and a habit of working together
UK and France are both permanent members of the UNSC
the EU is represented in the G20 in its own right
IMF has a Europe office, primarily to deal with the EU
In the realm of international institutions and global governance, the EU is represented individually as either a member or an observer in the G20, the UN, the G8, the WTO and many more of the most influential international forums and institutions in the world. The European Commission also works closely with the IMF and World Bank, and the EU is also the most significant collaborative partner to NATO and the Council of Europe among others. Thus the European Union’s influence and reach is only paralleled by the likes of America, as even China lacks such solid representation at Western-exclusive institutions. The fact that within the EU exist some of the world’s most powerful states with a common and deeply felt Western European identity means that the EU as an independent organisation will always inherit some of this authority and influence, particularly whilst France and Germany in particular continue to champion the ‘European project’. Whilst many of the world’s most significant international institutions continue to be Western ones often housed in EU territory, the authority of EU law will also continue to be an integral pillar in the global international system. For example, the EU’s ability to effectively shutdown international access to the Iranian economy through legal authority over SWIFT in 2012 illustrates the institutional and influential power which the EU can exert when required.
Military - The EU is also a vital partner to NATO forces in data analysis, court proceedings and counter-terrorism as increasingly NATO operations branch out to tackling dangerous refugee overflows and increasing piracy around the horn of Africa. Though there may not be a significant effort to put boots on the ground under the EU flag, the EU’s influence and soft power still make it an effective (and potentially an increasingly important) actor in global security initiatives.
limits to structural and military influence
STRUCTURAL + MILITARY INFLUENCE
The recent Iran nuclear deal saw the main three EU powers contribute to negotiations, representing their respective nation states not the EU. Realists would also argue that the cohesive role of the EU internationally will always be undermined by the separate presence of member states as independent members. For example, though the EU may be member to the G20, the national priorities of France, Britain and Italy may be very different and damage the likelihood of a cohesive, sizeable European influence. For this reason, realists thinkers argue that the EU will only ever be influential when the goals of either its most prominent members or a majority of members align, in which case the EU’s influence is then somewhat superficial and totally contingent on the state actors which comprise its membership.
different histories, traditions and cultures within the EU, makes agreement difficult
member states also have different geo-political priorities
separate national militaries rather than one unified European army
not all EU members are also members of NATO
member states have different defence priorities (Russia)
