1. Introduction to the European Union Dr. Milada Anna Vachudova Associate Professor Department of Political Science Dr. Erica E. Edwards Executive Director European Union Center of Excellence UNC Chapel Hill

2. Is it a state or is it an international organization?  Greatest density of institutions and rules of any international organization  Primarily concerned with economic integration: 1. Common internal market: free movement of goods, labor, services and capital 2. Common currency, the Euro (2002) 3. Single voice in international economic negotiations  1981-86: Greece, Spain, Portugal  1995: Sweden, Austria, Finland  2004: “big bang”– eight countries in Central and Eastern Europe plus Malta and Cyprus  2007: Bulgaria and Romania

3. State or International Organization?  Common external border for most EU countries (but no common immigration policy)  Progress in forging a common foreign and defense policy. 1. EU peacekeeping + police missions abroad 2. Successful democracy promotion through enlargement. 3. European Neighborhood Policy moving bilateral agreements beyond trade

4. Still, not the “United States of Europe”  States guard their sovereignty in many key areas:  Taxes and spending (EU budget tiny).  Little EU legislation in key areas including education, health, the social safety net.  Small central institutions, rely on state institutions for implementation of EU rules.  Far from developing a truly unified foreign and defense policy.

5. An enlarging Union: from 6 to 27  1951/57: Benelux, Italy, France, Germany  1973: United Kingdom, Ireland, Denmark  1981-86: Greece, Spain, Portugal  1995: Sweden, Austria, Finland  2004: “big bang”– eight countries in Central and Eastern Europe plus Malta and Cyprus  2007: Bulgaria and Romania

7. Future enlargements  population EU 27 = 501 million  Croatia, Macedonia, Turkey are candidates  Serbia, Bosnia, Montenegro, Kosovo, Albania, Iceland

8. Impact of successive enlargements (1958-2007) 1958197319811986199520042007 USNC Area (1000km)1,1671,5241,6582,2523,2343,8924,343 9,631139 Population (millions) 185273287338370457501 3009.4 Member States691012152527 50100 Official Languages 4679112022 11 MEPs142198434518626732736 435+6170

9. Population Density (2008)

10. Regional Disparities (2005)

11. GDP/capita in Purchasing Power Parity $40,558 The Netherlands $36,358 United Kingdom $35,539 Germany $34,205 France $12,600 Romania USA $47,440 Canada $39,098 Mexico $14,534 Source: IMF figures for 2008

12. Orthodox Christianity Sunni Islam Catholic Christianity Protestant Christianity Judaism

13. Why is there a European Union? BarrosoBarroso Video

14. I. War experience  World War I: ≈20 million dead  World War II: ≈70 million dead  Nationalism: the most deadly force in human history

15. II. Constraining Germany How was France to deal with Germany? “I could see only one solution: we must bind ourselves inextricably to Germany in a common undertaking in which our other neighbors could join.” Jean Monnet, First High Commissioner of the European Coal and Steel Community (ECSC)

16. Churchill calls for a “United States of Europe”  European integration is necessary for future peace.  The UK would not participate.  Franco-German cooperation at the core. … What is this sovereign remedy? It is to recreate the European Family or as much of it as we can and provide it with a structure under which it can dwell in peace, in safety and freedom. We must build a kind of United States of Europe … Zurich, 19 Sept 1946

17. The Schuman Declaration European Coal & Steel Community Europe will not be made all at once, or according to a single plan.... Franco-German production of coal and steel as a whole be placed under a common High Authority..... as a first step in the federation of Europe. The solidarity in production thus established will make it plain that any war between France and Germany becomes not merely unthinkable, but materially impossible..... Robert Schuman, 9 May 1950

18. How can war be averted? Building a web of rules European Coal and Steel Community (1951) European Defense Community (1954) European Economic Community (1957)

19. III. The Cold War  End of Western European great powers. End of imperial rivalries.  Now bigger threat - the Soviet Union  Communist threat within highlights need for economic recovery (esp. France and Italy)  US support for European integration Marshall Plan as an extension of Truman Doctrine

20. IV. Benefits of integration & multi-level governance  Large = efficient Small = beautiful  Single market - eliminating trade barriers  comparative advantage / benefits of specialization  economies of scale  Spillover:  single competition authority  single currency  International economic bargaining power

22. How does the EU work?

23. Budget– Revenues (%) VAT=Value-added tax (equivalent of sales tax) GNI=Gross National Income (richer countries pay larger share) Traditional own resources=customs and excise taxes, agricultural levies Other= e.g. fines, taxes paid by employees, third country contributions Ceiling =1.24% of EU GDP (293 Euro/citizen) 2010: 142 billion Euro

24. Budget Social security $2,980 billion ( expenditures ) 18.8% of US GDP ( revenues ) €129 billion = $168 billion (expenditures) 1.1% of EU GDP ( revenues ) US spending (2008) 18% EU spending (2008)

25. US Separation of Powers Presidency + Fed bureaucracy Senate House of Representatives LEGISLATION Presidential veto Supreme Court Federal Reserve

26. EU Separation of Powers European Commission Council of Ministers European Parliament European Council EU LAWS LEGISLATIVE PROPOSAL European Court of Justice European Central Bank National parliaments HRFA

27. The Commission is the institution that represents the general interests of the Community. Epitomizes supranationalism “Engineer of European integration” Ultimate scapegoat The once powerful Presidency Policy entrepreneur, honest broker, manager of decisions taken by others, motor of integration? Barroso, President of Commission Berlaymont, seat of the Commission Commission

28. Currently 27 commissioners; serve 5-year terms. Tend to be individuals of high political stature. Headed by President of the Commission (Barroso). Nomination: both President and the College are selected by the European Council by QMV and confirmed by the EP. College of commissioners Barroso II Commission

29. European Council Represents national interests. Most intergovernmental body in the EU. Consists of all 27 Heads of State or Government and the Commission President. Formal institution with Lisbon Treaty Presidency: rotates every 6 months. Meets 4 times a year. The European Council shall provide the Union with the necessary impetus for its development and shall define the general political guidelines thereof. President of Council, Herman von Rompuy

30. Council of the European Union Sector-specific Councils Relevant ministers from various MSs Chaired by the MS currently holding the Presidency Commission represented by relevant Commissioner(s) About 75 meetings per year

31. European Parliament The European Parliament is the institution which represents the peoples of the states brought together in the Community. Only directly elected supranational assembly with significant powers. Constant struggle for legitimacy and power since its inception. EU institution with worst image.

32. Composition of EP  Currently 736 MEPs.  Seats distributed to MSs based roughly on population. Smaller MSs over-represented.  Elected every 5 yrs based on national rules.  “Union citizens” can vote and stand for elections in their country of residence (as of Maastricht).

33. Political groups Members of the seventh European Parliament European People’s Party (265) Progressive Alliance of Socialists and Democrats (184) Alliance of Liberals and Democrats for Europe (84) European Greens–European Free Alliance (55) European Conservatives and Reformists (54) European United Left–Nordic Green Left (35) Europe of Freedom and Democracy (32) Non-Inscrits (27) EP President, Jerzy Buzek,

35. The ECJ ensures that in the interpretation and application of the TEC the law is observed. It represents the rule of law. Structure Sits in Luxembourg 27 judges (one from each MS); 6-year renewable terms. Sources of EU law treaties EU legislation (regulations, directives, decisions) international law general principles of law (e.g. rule of law, proportionality) jurisprudence European Court of Justice

36. Challenges Facing the EU Today Financial crisis and the Euro, Greece Strengthening the economy Immigration policy: pressure from flows of migrants, strong domestic opposition to immigration, demographic crisis. Enlargement Foreign policy Future widening or deepening?