Post on 12-Jan-2016
From Europe to EuroFrom Europe to Euro
Elisabeth Prugl, Co-Director Elisabeth Prugl, Co-Director Miami-Florida European Union Center of ExcellenceMiami-Florida European Union Center of Excellence
What is the EU?What is the EU?
State? State?
International Organization? International Organization?
Economic UnionEconomic Union
Outline of PresentationOutline of Presentation
ConceptsConcepts• Economic IntegrationEconomic Integration• Intergovernmentalism vs. Intergovernmentalism vs.
SupranationalismSupranationalism
HistoryHistory• Widening and DeepeningWidening and Deepening
Economic IntegrationEconomic Integration
Free Trade AreaFree Trade Area• Free movement of goods and servicesFree movement of goods and services
Custom’s UnionCustom’s Union• Common external tariffCommon external tariff
Common MarketCommon Market• Free movement of capital and laborFree movement of capital and labor
Economic UnionEconomic Union• Common policies (including monetary Common policies (including monetary
policy)policy)
Intergovernmentalism SupranationalismIntergovernmentalism Supranationalism
Integration with strong Integration with strong state controlstate control
Every state should be Every state should be allowed vetoallowed veto
Integration with supra-Integration with supra-national institutionsnational institutions
There should be There should be majority votingmajority voting
Decision-makingDecision-making
European Commission
European Parliament
Council of the EU
CommissionCommission
““Guardian of the Treaty”Guardian of the Treaty”
Proposes legislationProposes legislation
ExecutiveExecutive
27 Commissioners and Bureaucracy 27 Commissioners and Bureaucracy in Brusselsin Brussels
ParliamentParliament
Directly elected by European citizens Directly elected by European citizens (875 members)(875 members)
With the Council, passes legislationWith the Council, passes legislation
CouncilCouncil
Ministers from member statesMinisters from member states
Main decision-making bodyMain decision-making body
Rotating presidencyRotating presidency
Court of JusticeCourt of Justice
Ensures that European laws are Ensures that European laws are interpreted and applied correctly and interpreted and applied correctly and uniformlyuniformly
HistoryHistory
European Coal and Steel European Coal and Steel Community (ECSC)Community (ECSC)
19511951 Heavy Heavy
industry (coal industry (coal and steel) put and steel) put under under European European managementmanagement
Creates Creates institutionsinstitutions
Treaties of RomeTreaties of Rome
19571957 European Economic Community European Economic Community
(EEC)(EEC)• Envisions customs union, common Envisions customs union, common
marketmarket• ““Ever closer union”Ever closer union”
European Atomic Energy Community European Atomic Energy Community (EURATOM)(EURATOM)
1960s1960s
Completion of Customs UnionCompletion of Customs Union
Development of Common Development of Common Agricultural PolicyAgricultural Policy
Reintroduction of veto (Charles De Reintroduction of veto (Charles De Gaulle)Gaulle)
1970s1970s
First EnlargementFirst Enlargement• 19731973• Denmark, Ireland, United KingdomDenmark, Ireland, United Kingdom
““Eurosclerosis”Eurosclerosis”
1980s: Widening and Deepening1980s: Widening and Deepening
Mediterranean Mediterranean Enlargement Enlargement • 1981: Greece1981: Greece• 1986: Spain, 1986: Spain,
PortugalPortugal• EU 12EU 12
Single European Single European ActAct
Single European ActSingle European Act
19861986 ““Relance”Relance” 1992 deadline for the completion of 1992 deadline for the completion of
the common marketthe common market• Eliminate physical, technical, fiscal Eliminate physical, technical, fiscal
barriersbarriers Introduces qualified majority voting Introduces qualified majority voting
in the Councilin the Council
19891989
Fall of Berlin WallFall of Berlin Wall• Prospect of unifying Prospect of unifying
allall of Europe of Europe
German unification German unification (1990)(1990)• ““hidden hidden
enlargement”enlargement”
1990s: Deepening and Widening1990s: Deepening and Widening
Maastricht Treaty (1993)Maastricht Treaty (1993)• ““Treaty of European Union”Treaty of European Union”• Monetary Union (Euro)Monetary Union (Euro)• Political Union (common foreign and Political Union (common foreign and
security policy)security policy)• More power to the parliamentMore power to the parliament• Difficult process of ratificationDifficult process of ratification
Enlargement: Austria, Sweden, Enlargement: Austria, Sweden, Finland join the EU in 1995Finland join the EU in 1995
EU 15EU 15
The EuroThe Euro
Convergence CriteriaConvergence Criteria
1999: Euro launched as unit of 1999: Euro launched as unit of account for 11 member statesaccount for 11 member states
2002: Euro notes and coins replace 2002: Euro notes and coins replace national currencies in 12 member national currencies in 12 member statesstates
Deepening and Widening the 21Deepening and Widening the 21stst CenturyCentury
Enlargements:Enlargements:• Eastern enlargement Eastern enlargement
adds 12 new adds 12 new countries (2004 and countries (2004 and 2007)2007)
Effort to write constitutional treaty – problems with ratification
Treaty of Lisbon 2007• Change in voting• “Foreign Minister”• Voted down in
Ireland
EU vs. Euro AreaEU vs. Euro Area Euro area:Euro area: Austria, Belgium,
Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain.
EU Member States obliged to EU Member States obliged to adopt the euro eventually:adopt the euro eventually: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Sweden.
EU Member States with an opt out from adopting the euro: Denmark, United Kingdom.