1. The European Union www.europa.eu.int Copyright © 2002 by David P. Baron and Romain Wacziarg. All rights reserved. Reprinted with permission.

3. What is the future of nonmarket strategy in EU? u The broadening of the EU will produce a greater heterogeneity of interests. Will cooperation and consensus deteriorate? That is, will local interests begin to dominate? (Do they today?) Will geographic representation matter more? u Will this lead to more US-style nonmarket activity; i.e., activity that is broadscale, publicly visible, and directly competitive? u Will calls for greater direct democracy change the institutions (e.g., more power to the EP) making representational strategies more important? u Will political integration deepen or fragment?

4. Major EU institutions* Initiates legislation Main EU executive body Enforces EU Treaties Negotiates trade agreements Executive and legislative functions Weighted voting; different rules for different decisions, determined by treaties Regulations, decisions, directives Directly elected by voters in member nations. Political groups (parties) Evolving powers, responsibilities Commission (20) Council of Ministers (15) Parliament (626) Approves, can censure Appoints Consults, advises, amends, vetoes * European Court of Justice omitted

5. Dimensions and differences Seek oversight, delay, amendments Indirect lobbying (e.g., COREPER, thru home country) Early informational lobbying (esp. initiators) Strategy: rules of thumb Congress, its committees and parties None Executive Branch: The Cabinet and Bureaucracy US Counterpart Simple majority Simple majority Qualified majority Unanimity Consensus Decision rules ConstituentsIntegrationist Relative preferences Few; low-med.In member statesMany, high Staff; expertise Political Groups, Committees (weak) Policy-specific Ministries Directorates General Division of labor ParliamentCouncilCommission Member states

6. EU Decision Making u The authority of the EP has increased (Maastricht 92, Amsterdam 97); not yet an equal player u 1999 the EP threatened the Commission with censure; entire Commission resigned u Debate over the “democratic deficit” –that is, “democratic supervision” is not the same as “democracy” u The future is uncertain –EP seeks greater authority (reduce the democratic deficit) –Debate on political integration is intense

7. Legislative Procedures in the EU u Consultation Procedure –Commission prepares a proposal; EP gives opinion (non- binding); Council votes –Used for agriculture, justice, home affairs issues u Assent Procedure –EP has veto, single reading, no amendments –Used for new members, international agreements, structure of ECB, etc. u Co-decision Procedure –Created by the Maastricht Treaty (effective 1993) –Extended by the Amsterdam Treaty (effective May 1999) –Applies to free movement of workers, internal market, technological R&D, the environment, consumer protection, education, culture and health. –EP has a veto - no override

8. Voting Weights at the Council 3 votesDenmark, Finland, Ireland 4 votesAustria, Sweden 2 votesLuxembourg 5 votesBelgium, Greece, Netherlands, Portugal 8 votesSpain 10 votesGermany, France, Italy, United Kingdom  Meets as ministerial councils; Council of Europe meets twice a year  Uses qualified majority and unanimity  Overrepresentation of small countries  How will these be adjusted when new member states join EU? (Hungary, Poland, Czech Republic, Estonia, Slovenia + Cyprus) (next in line are Bulgaria, Romania, Slovakia, Latvia, Lithuania, Turkey)

9. Unanimity and qualified majority rule preferences in Council qualified majority (62 of 87) unanimity (87 of 87)  Qualified majority rule and unanimity rule make it difficult to change the status quo.  Repeated play among a small number of decision makers allows for vote trading across issues.  Vote buying is possible; compensating losers using structural funds.

10. Ambiguities in the EU System u Subsidiarity -- EU government is to take action only if the objective cannot be sufficiently achieved by the member states. Where is the line? u Do the member states fully implement the Directives? (In 1997 the EU initiated 1,436 infringement proceedings against member states for violating treaties or failing to implement directives.) u Will the present institutions be adequate for a broader union? u Will “democratic deficit” concerns result in more direct democracy? For example, will “democratic supervision” be replaced by a fully-empowerd European Parliament?

11. EU Institutions, Constituencies, and Access Institution Constituency Access

12. Organization of Interests in the EU The organization of interests at the level of the member states reflects the characteristics of parliamentary government; i.e., parties and ministries are the focal points. -- industry associations -- peak organizations of associations: BDI in Germany (40,000 businesses, represents 85% of German business) -- confederations of employers; BDA in Germany, CNPF in France in some countries (e.g., Germany) associations have formal consultative rights with government EU-wide industry organizations: -- industry peak organizations; CEFIC (chemical associations of 14 member states); relatively homogeneous interests -- Confederation of Food and Drink Industries; relatively heterogeneous interests EU-wide umbrella organizations -- UNICE (speaks for European industry) -- American Chamber of Commerce in Europe (does careful homework) Individual companies are increasingly active; e.g., Philips

13. Organization of Lobbying: CEFIC CEFIC G (14 associations in the Member States) G Member States Commission COREPERCouncilEP Parties legislative process represents Council