1. Chapter 9 THE EUROPEAN UNION

2. THE MAKING OF THE EUROPEAN UNION Video

3. CRITICAL JUNCTURES May 9, 1950 – Robert Schuman proposed “community” to govern coal/steel industries across national boundaries – became ECSC – European Coal and Steel Community (1951) Later signed Treaty of Rome to create EEC – European Economic Community (1957) Merger Treaty: European Community (1967) Basle Agreement (early 1970s) attempt at European monetary cooperation after collapse at Bretton Woods – collapsed 1973

4. CRITICAL JUNCTURES - CONTINUED 1985 – Single European Act 1991 – Treaty on European Union – agreed to form Economic and Monetary Union – EMU – single currency 1992 – Maastricht Treaty – proposed common EU foreign/security policy and names changed to European Union 1997 – Amsterdam Treaty – created way to represent EU to third parties and military force 2001 Treaty of Nice 2005 – tried to pass European Constitutional Treaty to deal with democratic deficit

5. GOVERNANCE: INSTITUTIONS OF THE EU

6. EUROPEAN COMMISSION: EXECUTIVE BODY Does the day-to-day work of the EU Acts independently of the governments of the Member States Propose legislation; supervise implementation of policy; guardian of EU treaties; represents EU internationally; draws up EU budget; Appointed to five year terms by member state government – must be accepted by Parliament President – chosen by governments of EU member states and approved by Parliament

7. THE COUNCIL OF THE EUROPEAN UNION LEGISLATIVE BODY #1 – VOICE OF THE MEMBER STATES Main legislative and decision making body in the EU Members are foreign ministers, finance ministers, President of France, all Prime Ministers Assigned number of votes in proportion to share of population Decisions are unanimous or by majority of “qualified majority” vote Presidency rotates every six months: he/she controls the agenda and represents EU at diplomatic functions

8. EUROPEAN PARLIAMENT: LEGISLATIVE BODY #2 Weakest EU institution – until 1979 MEP were chosen by national governments; now directly elected – up to 732 members Codecision – Council and Commission must consult the Parliament Direct election every 5 years Members sit in 7 political blocs – not by country but by ideology Bulk of work done by 17 permanent committees Elects European Ombudsman to investigate complaints from citizens about poor administration in the EU

9. European United Left-Nordic Green Left (34) Progressive Alliance of Socialists and Democrats (188) European Greens-European Free Alliance (58) Alliance of Liberals and Democrats for Europe (85) European People’s Party (267) European Conservatives and Reformists (54) Europe of Freedom and Democracy (35) Non-Inscrits (27) Members of the Seventh European Parliament

10. EUROPEAN COURT OF JUSTICE: JUDICIAL BODY Ensures compliance of European law based on treaties signed by member states Only has jurisdiction over national law when related to EU treaty Is in Luxembourg, 27 justices – one from each country - serve 6 years 9 Advocates-general review cases and provide legal opinion to assist the judges Can sit in whole session but MUST do so if matter is brought by EU or member state – otherwise 3-5 panel sits Workload led to Court of First Instance (like superior court in USA) Court of Auditors now deals with EU finances

11. EXAMPLE CASES Cassis de Dijon (1979)  German firm wanted to import cassis (liqueur)  German law banned it because it contained too little alcohol to be a liqueur and too much to be a wine.  Court ruled in favor of the French firm - mutual recognition: except for very unusual circumstances, member states must recognize the standards used by other countries Jean-Marc Bosman (1995)  Belgian soccer player wanted to move to a new team in France after his contract expired  Old team denied him the right to do so  Court ruled in his favor

12. THE EU AND ITS POLICIES

13. THE EURO  Came into effect 1 January 2002  World’s second most important currency  Increasingly being used for international payments and as a reserve currency (like the US dollar)  “Only the euro is legal tender in the euro area countries”

14. OTHER EU POLICIES One European Market - is single most important thing EU has done Common Agriculture Policy – CAP - largest budget item in EU Confronting Globalization –still not at top of competitiveness and vulnerable to global competition Shared policy areas – areas of public interest are upheld at EU level, all else at national level; environment is strong area where there is shared policy

15. ADVANTAGES OF THE EU  Free to move: travel, work, study  Keep the peace  Freedom, security, justice: uniform laws  More job opportunities  Lower prices  Spread information, develop technology quickly  Environmental protection  Stability

16. DISADVANTAGES OF THE EU  Interdependency  Seeming and real inequalities: distribution of costs and benefits unequal  Infringement on sovereignty  Poor vs. Wealthy countries  How to deal with exceptions and infractions

17. EURO-POLITICS IN TRANSITION

18. INSTITUTIONS AND DEMOCRACY Need adjustments due to enlargement: but often put off issue until absolutely needed 2000 call for European Convention – tried to create “draft” constitutional treaty to act as EU’s single legal basis but way too dense Face issues with poor voter turnout, poor media attention Other issues: Low growth and high unemployment Globalization and outsourcing immigration democracy deficit EU is not a state and structure is confusing Real politics still happens at national level