Slide 1 Amy Medearis, Senior Economist Delegation of the European Commission to the United States From Europe to the Euro Amy Medearis Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States Euro Challenge 2009 Faculty Orientation New York, NY November 25, 2008 EUROPEAN UNION Delegation of the European Commission

Slide 2 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States From Europe to the Euro - Brief History The Single Market Enlargement The Euro - EU versus Euro Area - Why Care?

Slide 3 Amy Medearis, Senior Economist Delegation of the European Commission to the United States A Brief History of the EU: Deepening and Widening Political goals, Economic steps

Slide 4 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States A Brief History of the European Union The original goal behind the integration of Europe was to prevent the devastating wars of the first half of the twentieth century from ever happening again… Dresden, Germany, 1945.

Slide 5 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States March 1957 Rome Treaties European Economic Community (EEC) European Atomic Energy Community (EURATOM) A Brief History of the European Union

Slide 6 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States 1973 United Kingdom, Ireland and Demark A Brief History of the European Union

Slide 7 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States 1981 Greece A Brief History of the European Union

Slide 8 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States 1986 Spain and Portugal Same year: the “Single European Act” was signed, revising the Treaty of Rome and re-launching European Integration and the completion of the internal market A Brief History of the European Union

Slide 9 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States 1989 Fall of the Berlin Wall “Hidden enlargement” E. Germany A Brief History of the European Union

Slide 10 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States 1992 “Deadline” for completing the single market (Dec. 31, 1992) A Brief History of the European Union

Slide 11 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States 1993 Maastricht Treaty TREATIES Treaty of European Union established 3 pillars of cooperation : Economic (EMU), Political, Judicial A Brief History of the European Union

Slide 12 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States 1995 Austria, Finland and Sweden A Brief History of the European Union

Slide 13 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States 1999 EURO launched A Brief History of the European Union

Slide 14 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States May 1, 2004 Cyprus The Czech Republic Estonia Hungary Latvia Lithuania Malta Poland The Slovak Republic Slovenia Jan. 1, 2007 Romania Bulgaria 1999 EURO launched A Brief History of the European Union

Slide 15 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States Decision-Making in the EU European Commission Council of the EU European Parliament

Slide 16 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States The goals of EU enlargement To spread stability, peace, democracy, freedom To make the EU stronger than the sum of its parts To strengthen and sustain the European social model/s To realize the potential of significant economic opportunities in the form of a larger market

Slide 17 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States Economic Benefits and Challenges of Enlargement EU Euro area107 Cyprus91 Slovenia83 Czech Republic75 Malta74 Hungary64 Slovakia57 Estonia56 Poland51 Lithuania51 Latvia46 Romania34 Bulgaria33 It is estimated that the enlargement of 2004 will have added 1.0%-1.8% per year to the GDP of the 10 new Member States ( ), and a cumulative % to GDP of the EU GDP per capita in PPS, EU25=100

Slide 18 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States 27 EU Member States (FYI) Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom

Slide 19 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States The Single Market Based on Four Freedoms: –Free movement of goods; –Free movement of capital; –Free movement of persons; –Free movement of services. Impact: GDP boosted by nearly €900 billion over 10- year period (over $1 trillion) and 2.5 million jobs created from the single market alone.

Slide 20 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States The Single Market More than a free trade area: Free trade area: no tariffs on traded goods inside FTA Customs Union (1968): FTA + common external tariff Single (or Internal) Market (1992): breakdown of all tariff and non-tariff barriers to trade and business Benefits of the Single Market: increased prosperity; more jobs; easier travel; more opportunities to live, work and study in other EU countries; wider choice of products and services; lower prices; less red tape; huge potential market (economies of scale); easier to do business.

Slide 21 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States The Euro has boosted economic integration within the Euro Area (trade, foreign direct investment, and financial services) The Euro One market, one money?

Slide 22 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States

Slide 23 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States

Slide 24 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States The euro area (13) versus EU (27) Euro area: Euro area: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovakia*, Slovenia, Spain EU Member States obliged to adopt the euro eventually: EU Member States obliged to adopt the euro eventually: Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Sweden EU Member States with an “opt out” from adopting the euro: Denmark, UK * Slovakia will adopt the euro 1/1/09

Slide 25 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States Why teach about the EU? The European economy? The Euro? 1.Europe is a major player in the global economy 2. It is the most important trade and investment partner for the United States 3. Common challenges (e.g., related to globalization and ageing)

Slide 26 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States EU-US Economic Relations The European Union's 27 members represent just 7% of the world's population, but they account for more than one-fifth of world trade. –Transatlantic flows of trade and investment amount to around $1 billion a day –jointly, US and EU global trade accounts for almost 40% of world trade the largest bilateral trade partnership in the world! –Together, EU and US make up nearly 40% of global output (GDP) and are drivers of global economic policy.

Slide 27 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States Common Interests and Problems EU & US have common values in democratic government, human rights and market economics, and they are bound by addressing global challenges (i.e. security/terrorism & sustainable development) Common economic issues, such as financial reform; ageing populations; need for budgetary savings; global competitiveness; immigration

Slide 28 Amy Medearis, Senior Economist, Economic and Financial Affairs Section Delegation of the European Commission to the United States FOR MORE INFO... For additional resources to prepare for the Euro Challenge: For more information on the European Union in the US, please visit: To access EUROPA, the EU’s official web portal, please visit: