The European Union Nicole Vicano

The European Union Nicole Vicano Group Members Greg Handley Kate Merrifield LOSS OF SOVEREIGNTY Lee Pilon INTRODUTION Mission statement The European Union is a family of democratic European countries, committed to working together for peace and prosperity In the early years, much of the co-operation operation between EU countries was about trade and the economy, but now the EU also deals with many other subjects of direct importance for everyday life, such as citizens' rights, ensuring freedom, security and justice, job creation, regional development, environmental protection, and making globalization work for everyone. TIMELINE OF EVENTS Created following WWII to ensure that kind of devastation would never happen again. May 9, 1950 has been delegated the birthday of the EU. It is now known as Europe Day. Initial began as a coal and steel treaty Six countries France, Germany, Italy, Belgium, the Netherlands and Luxembourg, in 1951, signed the Treaty of Paris establishing the European Coal and Steel Community 1

TIMELINE cont. On 25 March 1957, the six ECSC members signed the Treaty of Rome establishing the European Economic Community (EEC) and the European Atomic Energy Community (Euratom( Euratom). The main objective of the EEC was to create an economic community based on the free movement of goods, services and workers. In 1967, the institutions of the three European communities merged. It was from this date onwards that one Commission, one Council of Ministers and a European Parliament came into operation. TIMELINE cont. The success of the EEC encouraged the United Kingdom, Ireland and Denmark to join in 1973 The Treaty on European Union (Maastricht Treaty), signed in December 1991, was a milestone in the course of European integration. The twelve Member States decided on a plan that would lead to monetary union and the establishment of a single currency. At the same time, a common foreign and security policy was developed in order to strengthen the influence of the EU internationally. The euro, name of the single European currency, was put into circulation on January 1 2002. ORGANIZATION The European Parliament (EP) is the democratic voice of the peoples of Europe. Directly elected every five years, the members of the European Parliament (MEPs( MEPs) ) sit not in national alignments, but in seven political groups. Each group reflects the political ideology of the national parties to which its members belong. Some MEPs are not attached to any political group. Five main branches within the EU 1. European Parliament (elected by the peoples of the Member States) 2. Council of the European Union (representing the governments of the Member States) 3. European Commission (driving force and executive body) 4. Court of Justice (ensuring compliance with the law) 5. Court of Auditors (controlling sound and lawful management of the EU budget) Five lesser bodies within the Union 1. European Economic and Social Committee (expresses the opinions of organized civil society on economic and social issues) 2. Committee of the Regions (expresses the opinions of regional and local authorities) 3. European Central Bank (responsible for monetary policy and managing the euro) 4. European Ombudsman (deals with citizens' complaints about administration by any EU institution or body) 5. European Investment Bank (helps achieve EU objectives by financing investment projects) Allocation of votes (as of 2004) 29 votes Germany, United Kingdom, France, Italy 27 votes Spain, Poland 14 votes Romania 13 votes Netherlands 12 votes Greece, Czech Republic, Belgium, Hungary, Portugal 10 votes Sweden, Bulgaria, Austria 7 votes Slovakia, Denmark, Finland, Ireland, Lithuania 4 votes Latvia, Slovenia, Estonia, Cyprus, Luxembourg 3 votes Malta - 72% voting approval needed to make decisions the rule of law is fundamental to the European Union. All EU decisions and procedures are based on the Treaties, which are agreed by all the EU countries. 2

Applicant Countries In order to become a member of the EU, a country must have a stable democracy that guarantees the rule of law, human rights and protection of minorities, and it must have a functioning market economy as well as a civil service capable of applying and managing EU laws. In October 2002, the European Commission recommended the conclusion of accession negotiations with ten countries: the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. The European Council of Copenhagen, in December 2002, decided that those countries will join the European Union as members, on May 1st 2004, the largest addition in history. Some Benefits You can travel, study and work wherever you want in the 15 European Union countries, if you are an EU citizen. The EU is working constantly to give its citizens greater freedom of movement as a fundamental right and to get rid of all discrimination based on nationality. In most of the EU you can travel without carrying a passport and without being stopped for checks at the borders. With very few exceptions, you may buy anything you want anywhere you want and take it all back home with you. Some Benefits cont. The euro has replaced the old national currencies in 12 European Union countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Some Benefits cont War between EU countries is now unthinkable, thanks to the unity that has been built up between them over the last 50 years. Given this success, the EU is now increasingly involved in preserving peace and creating Having a single currency makes it easier to travel and to compare prices, and it provides a stable environment for European business, stimulating growth and competitiveness. VIDEO European Union Historical Overview A A Growing Europe Is the EU a loss of sovereignty? France Czech Republic Britain 3

France Introduction Head of state: President Jacques Chirac Head of government: Prime Minister Jean-Pierre Raffarin Total area: 547,030 sq km Pop. 59 million GDP: $1.32 trillion GDP per capita: $22,600 Intro cont. One of the original "six" who signed up to the Treaty of Paris (1951), France is an enthusiastic member of the European club. Support for the Union has not always been unwavering -- in a public referendum on the Maastricht Treaty (1992) 48.95% of the population voted against ratification. France remains strongly pro-european, and as one of the continent's most powerful economies its influence on the development of the Union continues to be crucial. Advantages for Joining the EU Superior human rights movement reputation Admission to a huge world market Political partnership with other members of the EU Advanced national security features France in Power: January 2000 June 2000 In 1957, they were one of 6 countries that signed the treaty in hopes of the number reaching 30 They tackled 4 main issues: The 4 Issues: Enhanced Cooperation Under French President Jacques Chirac, countries could speed up the process of their policy making, even if other countries didn t like it. There was fear that this could cause many problems Qualified Majority Voting (QMV) Rallied for majority voting rather then unanimous voting. It was thought nothing would get done otherwise. They wanted national vetoes to disappear on most issues. But France would not agree to lose the veto on world trade talks negotiations, fearing deals that would dilute its cultural identity 4

4 Issues cont. Balance of Power quantified voting based on population size. Number of Commissioners In the past big countries had 2 EU commissioners in Brussels and smaller countries only had one, now a vote was passed that says everyone has only one. Conclusion France played an active role in the creation of the EU They have taken advantage of what the EU has to offer An ideal EU member Took an active role in creating policies that will benefit the UE while they were in power in 2000 Central and Eastern Europe Communism falls in the late 1980s and early 1990s Trading patterns shift westward Former Soviet Bloc nations eye economic integration with their richer counterparts in Western Europe Not all of the former Soviet states integrated equally as some are positioned much stronger Cont Nationalism gains popularity in these reconstituted nations In 1993 European Union member states design the Copenhagen Criteria by which the nations of Central and Eastern Europe s EU bids are judged In most Central / Eastern European nations the debate over European accession is healthy - consequently most nations now have EU aspirations Cont Czech Republic In 2004 the Visegrad nations gain EU membership including; Slovenia, Slovakia, Hungary, Czech Republic, Poland, Latvia, Lithuania, and Estonia Romania and Bulgaria target 2007 as an EU entry date. The Balkan nations along with Belarus, Moldova and the Ukraine may also seek entrance within the decade 5

Introduction November 1989, after massive demonstrations, the Communist regime allows for a gradual democratisation of the political system The former Czechoslovakia functions as the Czechoslovak Federation until 1993 and then continues as two autonomous Republics An ambitious economic reform program, termed voucher privatization transfers most state owned companies to private control Introduction Cont The Czech Republic is for its smooth transition from a command to a market economy 1993-1994 1994 - The Czech Republic signs the Association Agreements and effectively makes trade within the established EU zone easier 1996 - The Czech Republic applies for EU membership 1998 entrance negotiations begin 2002 final entrance approval granted 2003 In a referendum, 77% of Czech s vote to join the EU Advantages of joining the EU The majority of Czechs want to enter the European Union and this is reflected in the political mainstream. Both the centre-right right Civic Democrats and the centre-left Social Democrats approve of European accession and have aided the process during each of their terms in government. Here are their main arguments: Advantages: expanded freedom of movement; persons, capital, goods and services access to the world s largest common market (totalling 470 million people after 2004 expansion) availability of funds ($35 billion annually) earmarked to subsidize poorer regions will benefit Czech transport, communications, power systems, water, and education stabilization and cooperation through the political institutions of the EU an eventual increase in living standards to match the original EU members Disadvantages of joining the EU While Czech s voted largely in favour of European accession, some saw entry into the EU as the wrong move. These Euro- sceptic views were largely espoused by fringe politicians, mainly from the nationalistic right and the communist party. Their supports were generally older and less educated. Their main arguments are as follows: Disadvantages: monetary tools no longer influenced by Prague greater economic dependence on others with a relatively small population (10 million) the Czech voice is drowned by the giants of Europe unfair competition to Czech Enterprises an influx of foreigners 6

Conclusion A majority of Czechs support their nation s entry into the EU. A united Europe without the Czech Republic would be a disastrous and backwards situation. While the nations of Europe are undoubtedly already linked, the institutions of the EU will solidify and streamline these processes. Arguments against the Czech Republic s accession to the EU are largely based on outdated principles of protectionist economics and nationalistic sentiments Conclusion Cont The rising sense of nationalism can only be expected of a nation who gained independence such a short time ago and is debating forgoing some of this sovereignty. Like other nations of Europe, the Czechs will realize that their culture and economy can and will flourish in a united Europe. Britain EURO Should Britain join the Euro? The policy package offered to Britain by the advocates of the euro has three significant components: 1. The abolition of the pound will mean we can no longer either have exchange rate changes with respect to the rest of the euro area, nor have a different interest rate set by the Bank of England. 7

What do the advocates of the euro say? They say there are benefits from exchange rate stability. One is that the international trade is likely to be greater if no currency transactions are required. Another is that the elimination of uncertainty about future exchange rates will promote deeper economic integration, and in particular cross-border investment. The euro will eliminate uncertainty is nothing more than an illusion. In fact Britain loses the ability to set appropriate interest rates. That clearly increases uncertainty. Business will have to operate on the basis that at any point in the future we might find Britain in recession with high interest rates or in a boom with low interest rates. Therefore it is only pretence the euro brings is greater certainty. Rather, it removes one kind of uncertainty, replacing it with another, more serious one 2. The details about growth and stability pact were agreed but a requirement of conformity with it now accompanies membership of the euro. It seeks to limit government borrowing and make spending and taxation plans subject to international approval. The advocates of the euro deny that it raises any issue of sovereignty. 2. Cont The danger of the stability pact arises from the fact that there are occasions when it would be desirable to have larger government borrowing. For example, when there is a period of unusually high unemployment. In those circumstances, government revenues have a tendency to fall, because fewer taxes are paid, and their expenditures rise, because more benefits are paid. Thus, if a deficit is to be avoided, action would have to be taken to reduce expenditure and raises taxes. That action worsens unemployment. So the rules of EMU require us to take action to make it worse. 2. Cont Support of the stability pact is that it does not prohibit government borrowing buy permits deficits of up to 3 per cent of national income. The advocates of the euro say that the 3 percent is sufficient, but in fact they are wrong. The British recession in the 90 s resulted in unemployment of almost 3 million and a vast and quite proper increase in government borrowing, taking it well beyond the limits of stability pact for several years. What that pact would have required is huge further cuts in government expenditure or huge tax increases. 3. The third plank of the euro in the status of the European Central Bank. In Britain the Bank of England is independent. It sets policy as it thinks best in order to meet a target set by the government. But it is an essential aspect of this arrangement, designed to ensure its democratic acceptability, that the government can change that target when it chooses. There is no provision for instructing the European Central Bank as to its targets. There are substantial benefits to business from a single market: There would be further strengthening of the European single market through the creation of the largest single currency in the world. A single market, made more transparent and effective because it offers more choice and better value. Should bring lower inflation, and lower and more stable interest rates, which will be beneficial to all borrowers 8

Single market benefits Cont Eliminates the cost and time incurred in carrying out transactions between different currency areas Currency volatility, would disappear Discussion Questions? Final Thoughts Conclusion Non Europeans, keen to trade in the UN, have found Britain a good place to do business. Members of the single currency will strengthen the attraction Bibliography and References: http://www.wsws.org/articles/2003/apr2003/eu- a19.shtml http://www.france.diplomatie.fr/actu/actu.gb.asp?dos=12408 http://www.cnn.com/specials/2000/eurounion/ story/french.presidency/index.html http://europa.eu.int europa.eu.int/ http://www.eu2003.gr/en/cat/76/ http://www.eurunion.org www.eurunion.org/ Bibliography and References Cont http://www.worldpress.org/europe/1231.cfm http://czechopinion.soc.cas.cz/web/2002_2/c05. html http://www.radio.cz/en/article/49000 Dabrowski,, M., Rotowski,, J. (eds.). (2001). The Eastern Enlargement of the EU. Kluwer Academic Publishers: Boston. Mannin,, M. (ed.). (1999). Pushing Back the Boundaries: The European Union and Central and Eastern Europe.. Manchester University Press: Manchester. Bibliography and References Cont Nicoll,, W., Schoenberg, R. (eds.). (1998). Europe Beyond 2000. Whurr Publishers: London Rosenbaum.(2001). Britain and Europe: The Choices we face. Oxford University Press: NY Ross, C. (ed.). (2002). Perspectives on the Enlargement of the European Union.. Brill: Leiden Rupnik,, J., Zielonka,, J. (eds.). (2003). The Road to the European Union Volume 1: The Czech and Slovak Republics.. Manchester University Press: Manchester. 9