European Integration Final

Roles of the Council of Ministers

- Along with the European Parliament, it is a legislative decision-making institution - it deliberates and decides on legislative proposals put forward by the European Commission - It has a joint budgetary authority - Voting: QMV or unanimity depending on treaty provision.

Roles of the European Parliament

- Amend EU law - Can now veto newly proposed legislation - Exert co-decision powers (with CoM) - Gained in power since first elections in 1979

European Commission

- Executive body: proposals and implementation - Supranational - Unelected politicians from each state - appointed ('democratic deficit')

Roles of the European Commission

- Initiate legislation - Implement policies - Represent EU on international stage - Each commissioner responsible for directorate general

European Council

- Intergovernmental - Provides general political directions and priorities - Comprised of Heads of State/Government of each member state

Council of Ministers

- Legislative body: adopting laws and coordinating policies. - Intergovernmental - Consists of ministers representing member states

Roles of the European Council

- Takes high-profile decision such as specifying to Copenhagen criteria - Attracts mode media attention - One of the most democratic of the EU institutions as Heads of State/Government are elected by the public

Common Agricultural Policy (CAP)

-1962 -Provided subsidies to farmers -This led to over-production (surpluses) -Led to dumping (selling at low price) Today: 80% receive 15% of the subsidies (small farms) while 20% receive 85% of the subsidies (large farms) The CAP created: 1. Pollution -Fertilizers, herbicides, pesticides (green revolution) 2. Monocultures -Affected biodiversity -Soil erosion -Poor water quality -increased allergens 3. Animal welfare/factory farming -Antibiotics to control disease -Scientific design of animal feed -Breeding of higher-yielding disease resistant animals

Merger Treaty

-1967 -Combined the ECSC, Euratom and EEC into one body -Regarded as the beginning of the modern EU

European Monetary System (EMS)

-1979-1999 -After the demise of Bretton Woods system, floating exchange rates began -Led by Chancellor Helmut Schmidt and Valerie Giscard D'Estang -Committed to create an area of Europe with exchange rate stability Components: 1. Exchange Rate Mechanism (ERM) -Must tie currency to a +2.25 fluctuation rate 2. European Currency Unit -Way to average different currencies 3. European Monetary Cooperation Fund (EMCF) -Account with the different countries -The Deutche mark and the Bundesbank emerged as the center of the EMS -Other countries were forced to follow its lead which led to the dissatisfaction in most countries, driving the switch to the euro

European Commission

-28 members -President: Jean-Claude Juncker -Established in 1958 -Proposes/Enforces new laws -Implements budget -Executive arm of EU

European Parliament

-751 Members -Passes laws with Council of EU -Elects Commission President/approving Commission body -Establishes/Approves EU budget with CouncilEuropean Council -Includes the head of each member state, council's own president, and the president of the commission -No legislative power -Provides the EU with general political directions -Acts as a collective presidency Council of the EU -Main decision making body of the EU along with the European Parliament -28 seats (one for each EU member) -Negotiates and adopts EU laws -Develops EU's foreign & security policy -Adopts the annual EU budget -Decisions require qualified majority (55%)

European Parliament

-Supranational - Adopts legislation and budget together with the Council. - 751 MEPs from member states directly elected on basis of PR

The 1992-1993 Exchange Rate Crisis

-The Role of the Bundesbank 1. Attack on the Finnish Markka 2. The Swedish Krona was attacked and the Riks bank raises interest rates by 500%, in order to protect their currency from being devaluated 3. On Sept. 14, 1992 "Speculative Attacks" on the Italian Lira forced a 7% devaluation 4. Sept. 16, 1992 massive "Speculative Attacks" on the pound forced the bank of England to intervene in order to keep the pound within +- 2.25. (Black Wednesday) 5. Attack on the Irish Pound forced the Irish Central bank to raise interest rates by 1000% 6. France lost half of its reserve to protect the franc - on July 30th, 1993 the worst day in the ERM (Black Friday)

Single European Act (SEA)

-There was a feeling that Europe was falling behind US and Japan -Lord Cockfield (Internal Market Commissioner) -In 1987, European legislation members adopted the SEA -Jacques Delors was the president of the EU Commission 1. Adoption of the SEA 2. Launched EMU Four Freedoms: Free movement of goods, services, capital and people How were they achieved? 1. Harmonize VAT rates with in wide bands 2. Liberalization of government procurement 3. Removal of capital controls (enables investment in other countries)

List at least seven main EU policy-making areas.

1. Agriculture 2. Environment 3. Foreign Affairs and Security 4. Enlargement 5. Justice and Home Affairs 6. EMU 7. Cohesion 8. Science and Technology

Causes of ERM Crisis

1. Capital liberalization -If capital is free to move, it puts pressure on exchange rates 2. Unwillingness of the Bundesbank to lend its currency

Three-pillar structure

1. European Communities: single market/supranationalism 2. CFSP: intergovernmentalism 3. JHA: even more intergovernmental

ECSC Institutions

1. High authority (executive) 2. Council of Ministers 3. Assembly 4. Court of Justice 5. Consultative Committee

The 5 Maastricht Convergence Criteria for the former EU15

1. Inflation Rate: An inflation rate should be no more than 1.5 percentage points above the average inflation rate of the three countries with the lowest inflation rates. 2. Long-Term Interest Rate: A long-term interest rate should be no more than 2 percentage points above the average interest rate of the three countries with the lowest inflation rates. 3. Government Deficit: A government budget deficit to Gross Domestic Product (GDP) ratio should be no more than 3 percent. 4. Government Debt: A government debt to GDP ratio should not exceed 60 percent or rapidly approach 60 percent. 5. Exchange Rate: The exchange rate should be within ± 2.25 percent of the normal band of the Exchange Rate Mechanism (ERM). Each country should not devalue its currency during the last two years prior to the examination.

The 3 stages of the formation of the EMU

1. July 1, 1990 - Dec. 31, 1993 -Coordinate economic policies, all candidate countries were to join the ERM +- 2.25 2. Jan 1994 - Dec 31, 1998 -The European Monetary Institute was established 3. Jan 1999- Present -1st substage: Jan 1999- Dec, 2001. The EMI was replaced by the ECB -2nd substage: Jan 2002-March 31 the currencies of the 11 countries + greece (12) were removed and replaced with the euro -March - current

3 events of disintegration

1. WW1 2. Great Depression 3. WW2

Single European Act (1986-1987)

12 EEC members. First major revision of the 1957 Treaty of Rome. Setting the objective for the European Community to establish a single market by 31 December 1992. Codified European Political Cooperation (EPC), the forerunner of the European Union's Common foreign and Security Policy.

European Coal and Steel Community

1953 France, Luxembourg, Netherlands, Denmark, Germany, Italy, Belgium European Coal and Steel Community France did not endorse for fear of Germany Originally wanted to establish a defense community Organized by Jean Monnet Called for an integration of the coal and steel industries of France and West Germany It is arguably the basis of what is the European Union. The first Community organization was created in the aftermath of the Second World War when reconstructing the economy of the European continent and ensuring a lasting peace appeared necessary. Thus the idea of pooling Franco-German coal and steel production came about and the European Coal and Steel Community (ECSC) was formed The underlying political objective was to strengthen Franco-German solidarity, banish the spectre of war and open the way to European integration.

The Werner Plan

A plan for monetary integration 1. Coordination of monetary and exchange rate policies -Decrease exchange rate by 1% 2. Creation of the European Monetary Cooperation Fund 3. Evolvement of the EMCF to the European Central Bank -Ten year goal -Not successful

Supernationalism

A venture involving 3 or more state, political, economic or culture cooperation to promote shared objectives. Started in 1944 with the Benelux agreement. Charles De Gaulle is not a fan.

The 'subsidiarity principle'

According to this principle, the EU may only act (i.e. make laws) where action of individual countries is insufficient. The principle was established in the 1992 Treaty of Maastricht.

Euro-Summit meeting

All heads of state of Eurozone countries - 2 times a year at least.

Marshall Plan

April 3, 1948 European Recovery Program Post-war reconstruction US gave generous plan for European countries to work out for themselves how to coordinate and sort out the plans for using aid given by US This was to reduce occupation costs and promote recovery throughout Europe.

The 'empty chair crisis'

As from July 1965, in opposition to a slew of Commission proposals addressing, among other things, the financing of the Common Agricultural Policy, France boycotted the meetings of the Council and insisted on a political agreement concerning the role of the Commission and majority voting if it were to participate again. This episode in European history is known as the "empty chair crisis". This crisis was resolved thanks to the Luxembourg compromise (January 1966), which states that "when vital interests of one or more countries are at stake members of the Council will endeavor to reach solutions that can be adopted by all while respecting their mutual interests."

Steralization

Bundesbank sold bonds, therefore reduced monetary supply

Merger Treaty (1965-1967)

Combined the executive bodies of the European Coal and Steel Community (ECSC), European Atomic Energy Community (Euratom), and the European Economic Community (EEC) into a single institutional structure. Signed by "The Six": Belgium, France, West Germany, Italy, Luxembourg, and Netherlands. Creation of a single Commission and a single Council to serve the then three European communities. Repealed by the Treaty of Amsterdam (1999). Widely regarded as the real beginning of a modern European Union.

CMA

Council for Mutual economic Assistance

Structural Fund

Designed to bridge gap between rich and poor.

The 'triple majority' and 'double majority'

Double majority voting is a form of QMV: (1) require the support of at least 55% of the Council of the European Union members; (2) who must also represent at least 65% of the EU's citizens.

What was the rationale for establishing the ECSC and what problems did it aspire to solve?

ECSC = European Coal & Steel Community Make production more efficient (economies of scale) Formally established by Treaty of Paris (1951) after WWII; signed by Belgium, France, West Germany, Italy, the Netherlands and Luxembourg. Based on the principles of supranationalism (multi-national organization where the negotiated power is delegated to an authority by government of member states). Create a common market for coal and steel to neutralize competition between European nations over natural resources make war impossible.

What is the configuration of the Council of Ministers? Please give some example.

Each council configuration deals with a different functional area, for example agriculture and fisheries. In this formation, the council is composed of ministers from each state government who are responsible for this area: the agriculture and fisheries ministers. The chair of this council is held by the member from the state holding the presidency (see section above). Similarly, the Economic and Financial Affairs Council is composed of national finance ministers, and they are still one per state and the chair is held by the member coming from the presiding country. The Constitution makes the General Affairs Council responsible for ensuring consistency in the work of the various Council configurations. When meeting in this configuration, the Council prepares and ensures follow-up to meetings of the European Council. Configurations include: General Affairs; Foreign Affairs; Economic and Financial Affairs; Agriculture and Fisheries; JHA; Education, Youth, Culture and Sport; etc

Treaty of Rome (1957-1958)

Established the European Commission. Signed by Belgium, France, Italy, Luxembourg, the Netherlands and West Germany. Led to the founding of the European Economic Community (EEC: its aim was to bring about integration, including a common market. It proposed the progressive reduction of customs duties and the establishment of a customs union. It proposed to create a common market of goods, workers, services and capital within the EEC's member states.

EURATOM

European Atomic Energy Community -Merger Treaty

ECB

European Central Bank

ECSC

European Coal and Steel Community -Merger Treaty

ECU

European Currency Unit

EEC

European Economic Community -Merger Treaty

EFTA

European Free Trade Agreement

EMFC

European Monetary Cooperation Fund

EMI

European Monetary Institude

EPU

European Payments Union

ERM

Exchange Rate Mechanism

the three kinds of jurisdiction in the EU policy-making?

Exclusive Competence: Shared Competence: Supporting Competence:

Jean Monnet

Founding father of EU French Federalist and realist Champion of cosmopolitanism and efficiency beyond political conflict Monnet Plan - France has control over German coal and steel

Robert Schuman

Founding father of EU, Council of Europe, and NATO French Schuman Declaration

Four Freedoms

Free movement of goods, services, capital and people.

Common Market

Free movement of services, capital and labor.

Flexible integration

General term for the possibility of member states to have different rights and obligations with respect to certain common policy areas and refers to the possibility of the temporary or permanent existence of different levels of integration within the EU.

What were the attempts at European integration before WWII? How successful were they?

In 1929, Aristide Briand, French prime minister, gave a speech in the presence of the League of Nations Assembly in which he proposed the idea of a federation of European nations based on solidarity and in the pursuit of economic prosperity and political and social co-operation.

setbacks in the process of European integration in 1963 and 1965

In 1963 Charles De Gaulle famously vetoed the British application to join the European Economic Community. In 1965, De Gaulle withdrew French ministers from the Council, unable to pass legislation to allow UK to enter EU because of unanimity voting

Jacques Delors

In 1988 in the Hannover Summit the council appointed Jacques to head of the Committee to investigate the possibility of the formation of a Monetary Union

EMS/ERM 1992-1993 Exchange Rate Crisis

In 1991, the Maastrich Treaty approved to create the EMU -In 1992, the turbulence began and at the time there were only 10 members in the EMU 1. The crisis started with an attack on the Finnish Marka which was pegged to the Deutchmark 2. The Swedish Krona was attacked, which forced the bank to raise interest rates by 500% in order to attract people 3. Speculated attacks on the Italian Lira forced a 7% devaluation September 16th 1992 (Black Wednesday) -Attack on British pound -Massive interference of the Bank of England -UK withdrew its currency from the ERM and EMS -Attacked the Irish Punt -Bank of Ireland increased interest rates by 1000% -France lost its reserves trying to protect the Franc July 1993 (Black Friday) -European council increased ERM band

Please explain why we can reasonably compare EU policy-making with policy-making in federal systems of government.

In a federal system, like the federalism of Germany, powers are predominantly shared (states can exercise federal powers where the federation has not already exercised them) between the levels of government, and the states participate strongly with decision making at the federal level. This is similar to the EU as competences are predominantly shared as well.

Western European Union

Intergovernmentalism A defensive alliance that provided the framework for a creation of a European defense policy

ILO

International Labor Organization

IMF

International Monetary Fund

European Economic Community (EEC/EC)

International organization created by Treaty of Rome (1957); aim was to bring about economic integration, including a common market, among 6 founding members of Belgium, France, Italy, Luxembourg, the Netherlands and West Germany.

Customs Union

Lift off or lower trade barriers between each other and agree to common kind of barriers with outsiders.

Free Trade Area

Lift off trade barriers between each other and maintain separate barriers with other countries who are outsiders to the FTA for restricting trade.

Snake in the tunnel

Limiting fluctuations of individual currencies before euro was introduced; the limits were too narrow and were therefore later widened.

Amsterdam Treaty (1997-1999)

Made substantial changes to the Treaty of Maastricht, signed in 1992. Purpose was to reform the EU institutions to allow for future enlargement. More transparent decision making (increased use of the co-decision voting procedure).

Schuman Declaration

May 9, 1950 1950 governmental proposal by then French Foreign Minister to create a new form of organization of states in Europe called a supranational community led to ECSC.

Eurogroup

Meeting of all financial ministers of Eurozone countries.

Court of Justice of the EU (CJEU)

Members: -Court of Justice: 1 judge from each country -General Court: 1 judge from each country -Civil Service Tribunal: 7 judges -Established in 1952 -Located in Luxembourg -Interprets and enforces laws -Annuls EU legal acts -Ensuring the EU takes action -Sanctioning EU institutions

NCB

National Central Bank

NATO

North Atlantic Treaty Organization

OEEC

Organization of European Economic Cooperation

Maastricht Treaty

Perhaps the greatest achievement of the Maastricht Treaty was the establishment of the European Union based on the three pillars, namely the European Communities, Common Foreign and Security Policy and Justice and Home Affairs. Another major achievement of the Maastricht Treaty was the establishment of the single European currency, the euro. The Treaty of Maastricht also introduced the concept of European citizenship, reinforced the power of the European Parliament and launched economic and monetary union (EMU).

Fiscal Compact

Policy adopted as a result of Eurocrisis with aim of economic improvement and stability.

Explain the difference between 'Presidency of the Council' and 'President of the European Council'.

Presidency of the Council: every 6 months (different country). President of the European Council: permanent for 2.5 years - can be extended one more time.

Lisbon Treaty (2007-2009)

Purpose was the make the EU more democratic, more efficient and better able to address global problems with one voice. Stated aim was "to complete the process started by the Treaty of Amsterdam and by the Treaty of Nice with a view to enhancing the efficiency and democratic legitimacy of the Union and to improving the coherence of its actions." Move from unanimity to qualified majority voting. More power to the European Parliament. Creation of a long-term President of the European Council and a High Representative for Foreign Affairs. Weakening of trade unions Decentralization of labor unions

Regulations, Directives, Decisions, Recommendations and Opinions

Regulations: binding legislative act that must be applied to the whole EU Directives: an act that sets out to create a goal that all EU countries must achieve. It is up to the individual countries to decide how to achieve that goal Decisions: Binding on those to whom it is addressed Recommendations: Not binding. Allows for instiutions to make their views known Opinions: an instrument that allows an institution to make a statement in a non-binding fashion

The Luxembourg Compromise

Resolved the Empty Chair Crisis. -President of the Commission wanted to promote federalism in decision making -Charles De Gaulle did not agree and ordered the empty chair policy -Tabled discussion until unanimity

Exclusive vs. Shared competences

Shared: Two different decision makers have the right to decide and make laws Exclusive: Member states are not permitted to make laws concerning that area

Brussels Treaty (1948-1948)

Signed between Belgium, France, Luxembourg, the Netherlands and the United Kingdom, as an expansion t the preceding year's defense pledge, the Dunkirk Treaty signed between Britain and France. As it contained a mutual defense clause, it provided a basis upon which the 1954 Paris conference established the Western European Union (WEU). It also led to the formation of NATO (North Atlantic Treaty Organization; military alliance). A goal of the treaty was to show that western European states could cooperate, thus encouraging the United States to play a role in the security of Western Europe.

Treaty of Paris (1951-1952)

Signed between Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands. It established the ECSC, which subsequently became part of the European Union. Was seen as producing diplomatic and economic stability in Western Europe after WWII. Some of the main enemies of the war were now sharing production of coal and steel. This eased distrust and tensions.

Maastricht Treaty (1992-1993)

Signed by member of the European Community. Created the EU and led to the creation of the single European currency, the euro. Created a EU consisting of three pillars: (1) the European Communities; (2) Common Foreign and Security Policy (CFSP); and (3) police and judicial cooperation in criminal matters (JHA). Introduces the concept of European citizenship, reinforces the powers of the European Parliament and launches economic and monetary union (EMU). Has been amended by the treaties of Amsterdam, Nice and Lisbon.

SEA

Single European Act

Spillover effect

Spillover effects are economic events in one context that occur because of something else in a seemingly unrelated context.

European Defense Community

Supranationalism Would have established a pan-European military Never went into effect 6 countries

Alsace-Lorraine

Territory between France and Germany; went back and forth; sense of belonging.

Eurosclerosis' of 1970s

The "eurosclerosis" was a period of economic stagnation resulting in high skepticism of the EU

the Lisbon Treaty

The Lisbon Treaty's main purpose was making the EU more democratic, more efficient, and better able to address global problems with one voice. As with the Maastricht Treaty, the EP gained yet more power. The Lisbon Treaty created a long-term president of the European Council and a High Representative for Foreign Affairs. The Lisbon Treaty also created a new body, the European External Action Service.

What were the key motivations that led the U.S. government to devise and offer the Marshall Plan to the European countries?

The Marshall Plan was the American initiative to provide economic support to help rebuild European economies after the end of WWII. The plan was in operation for four years beginning in April 1948. The goals of the United States were to rebuild war-devastated regions, remove trade barriers, modernize industry, and make Europe prosperous again.

Intergovernmental Conference

The formal procedure for negotiating amendments to the founding treaties of the European Union.

The Hague Congress of 1948

This congress recognized that it is the urgent duty of European nations to create an economic and political union in order to assure security and social progress. The Congress also discussed the future structure and the role of the Council of Europe. It also provided the means to heighten public opinion for European unity.

Economic integration

Unification of economic policies between different states through the abolition of tariff and non-tariff restrictions on trade

WTO

World Trade Organizations

Eurozone

the group of European Union nations whose national currency is the euro.

What are the key aims and tools of the Competition Policy?

• Agreement that restricts unfair competition (e.g. monopolization or abuse of a dominant position). • Oversees mergers. • Efforts to open up market to competition. • Financial support for companies from the EU government. • Cooperation with national competition authorities in EU member countries. • Tools: the Commission.

What are the main differences between policy-making at the national level and at the EU level?

• Distance between legislation and execution of policies.

What institution oversees the monetary policy in the Eurozone, what are its objectives and tools available to achieve these?

• ECB • Objective: around 2% inflation to channel more money into the economy by increasing spending. Tool: interest rates.

What are the key aims and tools of the Cohesion Policy?

• EU's main investment policy. • Main responsibility: to mainstream environment into its programs and projects. • For 2014-20, sustainable development is reconfirmed as one of the key principles. • Tools: financial instruments.

Exclusive Competence

• In some areas the EU has exclusive competence, where member states are unable to act independently, including: The customs union Monetary policy for the Member States whose currency is the euro.

Supporting Competence:

• In these areas, the EU only plays a supporting role and the Member States are free to act, including: Culture. Tourism. Education.

What are the key roles of the Commission in the integration process?

• Pursues European interest. • Proposes legislation. • Ensure equal implementation of policies

Shared Competence:

• The majority of competencies are 'shared', meaning that member states may legislate only when the EU has not, or they may elaborate the laws of the EU provided their elaborations do not harm the objectives of the EU law. These areas include: Research and technological developments. Agriculture and the environment (when the EU has not exercised competence). Coordination of economic, employment and social policies.

What are the main powers of the European Parliament?

• Together with the Council, the EP adopts/amends proposals from the Commission. • Supervise work of the Commission. • Rejects/adopts draft budget. • Exert co-decision powers with the Council of Ministers. • Can force the Commission to resign. • Grill candidates for Commission.