European Union Essay

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An international organization  comprised  of independent nations that share their sovereignty to be stronger and have a greater global influence, the European Union (EU) was created by the Maastricht Treaty (1992), and put into operation by 12 countries (Belgium, Denmark, France, the Federal Republic of Germany, Greece, Ireland,  Italy, Luxembourg,  the  Netherlands,  Portugal, Spain, and the United Kingdom) on November 1, 1993. The purpose was to form a continent united by common institutions, progressively harmonize national economies,  establish a greater  common  market,  and gradually coordinate social policy.

Since its emergence, Austria, Finland, and Sweden (1995);  Cyprus,  Slovakia, Slovenia,  Estonia,  Hungary, Latvia, Lithuania, Malta, Poland, and the Czech Republic (2004); and  Bulgaria and  Romania  (2007) have been incorporated into the EU. The 27 members have a total population  of 495 million people and a land extension of 4.2 million sq. km.

European Institutions

Institutions  are essential in the assumption  of decision making in the  European  Union: These are the European   Council,  the  Council  of  the  European Union (CEU), the European  Commission,  the European Parliament  (EP), the European Court of Justice (ECJ), and the European Court of Auditors (ECA).

The European  Council was created  to make official the meetings of heads of state that had previously been convoked  irregularly. It convened  for the first time in 1975 in Dublin. Meeting at least twice a year, it is formed by the heads of government  of member countries,  and attended  by foreign affairs ministers. The state that  currently  holds the presidency  of the CEU presides over the function.

The Maastricht  Treaty was the initiator of the Union’s first policies, which granted arbitration power in questions  of conflict between ministers  who cannot reach an agreement in the CEU. It also addresses pressing  international problems  through  the  Common  Foreign  and  Security  Policy (CFSP), which  is designed to allow the EU to speak with one voice on diplomatic issues.

The Council  of the  European  Union  (CEU), the Ministers Council, pertains to the defense of the interests of member states. Council presidency is held by one of the member states for six-month terms, which grants  an essential role in the organization  of work in the institution and is a driving force in the legislative and political decision process. The assemblies are held in the CEU and attended  by the member states’ ministers  responsible  for issues to be addressed (for example, foreign affairs, finance, social issues, transportation, agriculture). It executes a legislative power, generally in codecision with the European Parliament to assure economic  policy coordination of member states; define and put common  foreign and security policy into practice; observe international accords in the name of the Union; coordinate  state movement and adopt measures  in the scope of police cooperation and penal matters; and constitute  the authority that passes the Community  budget.

The most  customary  procedure  to approve  decisions  is by a qualified majority  of the  27 member states, whereby each country, depending on its population, has a portion of the 345 total votes (2007). Any adopted decisions must be passed by a majority of the member states, and any state may solicit confirmation that the votes in favor represent  at least 62 percent of the total population of the EU.

The European Commission represents and defends the interests of the EU, proposes legislation, policies, and proceedings programming, and is responsible for applying the decisions of the EP and the CEU. Since 2007 it has comprised of 27 members and 24,000 functionaries. The president is elected for five years by the governments of member states and he or she thereby elects his or her commissioner, who must be accepted as a whole by the Parliament. The Commission, with headquarters in Brussels and  Luxembourg,  is supported  by an administration made up of 36 General Directorates. The president is in charge of delegating work to each commissioner.  The Commission  meets once a week to pass proposals.

The European Parliament

Since 1979, members  of the  European  Parliament (EP) have been  directly  elected  by the  citizens  of the EU. There are currently 785 members due to the entry of Bulgaria and Romania (2007), but this will be reduced  to 732 in the  2009–14  legislature. The two most significant political groups are the European People’s Party (Christian  Democrats)  and the Party of European Socialists. The Parliament’s headquarters are in Strasbourg.

The EP has legislative, budgetary, and democratic checking  powers.  With  respect  to  the  legislative, it employs  three  procedures: “codecision” with  the Council, which allows it to influence the orientation of European politics like the free circulation of workers, the interior  market,  research  and development, culture, and health; “consultation” that submits international  accords  negotiated  by the  Commission  to parliamentary  approval, as well as future expansions of the EU; modification  of functions  and statutes  of the European Central Bank (ECB), which implements objectives and organization  of structural  and cohesion funds; and “cooperation” for which the  Parliament participates in community directives, essentially deciding what to propose in the Commission.

Since 1970 the  EP has shared  budgetary  power with the  Council.  The European  Commission  prepares a preliminary budget that is elaborated by the Council  and  sent  to the  Parliament.  In December, the Parliament  either approves or rejects the Union budget.  It  also guards  against  public  funds  fraud. Finally, the EP exercises checks on the performance of the  Commission,  the  Council  of the  European Union,  and  the  European   Council.  Furthermore, it can create commissions to investigate possible infractions of community rights or cases of administration  deficiencies of the institutions  of the Union. Monthly  plenary sessions take place in Strasbourg. The Parliament  also functions  in Belgium and Luxembourg, where the secretariat of the European Parliament has its installations.

The European Court Of Justice

The European Court of Justice (ECJ), based in Luxembourg, was established by the Treaty of Paris in 1952. In early 2007 it was comprised  of 27 judges, one for each member state, and eight attorneys general. This judicial body is in charge  of guaranteeing  community rights,  interpreting treaties,  and  avoiding legal discrepancies  from one state to the next. Created  in 1989, the  Court  of First  Instance  oversees  matters intervened  by physical persons  and  cases of unfair competition  practices between businesses. The decisions of the Court of First Instance (CFI) are appealable before the European Court of Justice.

The European Court of Auditors (ECA) was created in 1975. After the Treaty of Maastricht  was put into effect, it was recognized  as an institution.  Its function consists of controlling  the correct  execution  of the community  budget, as well as being accountable to European  citizens for the management  of public funds of community  authorities  and member  states.

This court is made up of members from each country of the EU who are designated by a qualified majority in the Council after consulting  the EP. A member’s term is six years and can be repeated.

Origins

After  World  War  I (1914–18),  Count  R. Coudenhove-Kalergi (1894–1972) pushed the idea of a federation of the people of Europe (1924). Even before World   War   I,  others   had   found   commonalities among European countries and proposed systems designed  to  maintain  peace  and  establish  institutions  that  assured  cooperation  between  them.  But the  most  spectacular  initiative  was that  of French minister Aristides Briand (1862–1932), who presented  in 1929 a project  for the League of Nations to  create  “a  common   market  to  maximally  raise human well-being throughout the entire territory of the European Community.” However, the economic crisis, Briand’s death,  and  the  victory of nationalsocialism in Germany ended the project.

At the conclusion of World War II (1939–45), the end  of European  hegemony  was visible. The Yalta Conference (1945) had divided the continent into two blocs under the direction of the United States and the Soviet Union, which led to a new conflict: the Cold War.  It  was necessary  to  recover  lost  ground  and impede  future  confrontations. That is why Europeans looked again to the ideas proposed  by Winston Churchill (1874–1965) at the University of Zurich to advance the construction of “a type of United States of Europe” (1946).

Meanwhile, steps were being taking to reconstruct Europe. The United States launched the Marshall Plan (1947) as economic  aid. To administer  that  aid, the Organization for European Economic Cooperation (OEEC) was created to liberalize trade, develop economic cooperation,  and introduce  ideas about monetary agreements  (1948). The Marshall Plan resulted in being a great economic success as it enabled restoration of productive infrastructures in war-torn western Europe.

The Rome Treaty

France, the Federal Republic of Germany, Italy, Belgium, Luxembourg, and the Netherlands  signed the Treaty of Paris in 1951, through  which the European Coal and Steel Community (ECSC) was born in 1952.

The initiative, shared by French politicians Jean Monnet (1888–1979) and Robert Schuman (1886–1963), tried to coordinate  the production of coal and steel, fundamental  instruments of war, by suppressing  the restrictions  on its entry and exit. New room for confidence was born  for “a future  European  federation that  assures peace keeping” that  would put  an end to Franco-German disputes over the resources of the Saar and Ruhr coalfields.

In parallel, in 1956, a report sent to the Council of Ministers of the ECSC proposed to complement itself with two new communities: one, for a common market and the other, for atomic energy. Signed by the six members of the ECSC in the Rome Treaty on March 25, 1957, the European Economic Community  (EEC) and the European Atomic Energy Community  (EURATOM) came to be. When the Rome Treaty was put into effect on January 1, 1958, it proposed  as objectives the principles to

promote, by means of the establishment  of a common  market  and the progressive rapprochement of politics among  member  states, a harmonious development of economic activities in the whole of the Community, a continuous expansion and equilibrium, a growing stability, an accelerated rise in the standard of living and closer relations between the States that form the Community.

As each institution functioned  with distinct components, the next step was to unify them through the Merger Treaty. On July 1, 1967, the EEC joined the ECSC and  EURATOM with  the  Council  of Ministers (CEU) and the European Commission. One of its fundamental  contributions was the launching of the Common  Agricultural  Policy (CAP) in 1960, which was greatly needed since a fifth of the active population of the Community  worked in agriculture. Prices were maintained  by means of purchasing production surpluses, placing protective  tariffs on importations from  other  countries  and  establishing  a system  of subsidies to  improve  agrarian  structures  and  input costs. The European Agricultural Guarantee Fund (EAGF, 1962) executes these policies and absorbs a greater  part  of the  Community  budget  (60 percent until 1989). As financial solidarity had been set out in the CAP, its cost has become a center of permanent dispute between member states.

The Rome Treaty achieved its objective. In 1968, it established  a customs  union  that  eliminated  any type of restrictive  duty and instituted  the Common External Tariff (CET) for nonmember countries. This customs union facilitated economies of scale and improvements in  competitiveness  of businesses  in the global market. Trade grew and converted the EEC into one of the first economic powers in the world.

The European Twelve

Meanwhile, Great Britain had founded the European Free Trade  Association  (EFTA) in 1959 as an alternative organization,  which eventually failed. That is why, soon  after, Great  Britain requested  entry  into the EEC. However, the request was denied by General Charles De Gaulle (1963 and 1967), alleging it would put  the  French  leadership  in danger.  The arrival to the presidency of the Republic of France by Georges Pompidou (1911–74) allowed the entry of Great Britain, Ireland, and Denmark  in 1973. Thus began the journey of the “European Nine.”

In 1981 Greece entered, resulting in the “European Ten.” Shortly after in 1986, Spain and Portugal joined to  make  the  “European  Twelve.” This enlargement generated difficulties, especially in terms of the CAP, since the new members brought such an agricultural weight. It was also necessary to adopt policies geared toward  alleviating significant structural  deficiencies and to reduce economic differences between the new members and countries of the north.

In February 1986, the “European Twelve” signed the Single European  Act (SEA). After achieving the goal of a Common  Market at the end of the 1960s, aspirations of a political union emerged. These were outlined over the following decade and during the presidency of Jacques Delors were materialized  with the “White Paper” (1985). In 1987 all the member  states ratified the SEA that guaranteed the free circulation of goods, services, capital, and people, and permitted  the constitution of an authentic  economic and monetary union. On December 31, 1992, free circulation  was put into effect, and later the single market on January 1, 1993.

The SEA meant important advances in social policies, especially those referring to health and safety in the workplace, dialogue with social partners, and social and economic cohesion. In addition, it created Structural Funds to stimulate development in new member states and gave a base for common foreign policy.

At the end of the 1980s, the ECC had to address the fall of the Berlin Wall (1989), which allowed it to participate in the unification of Germany. On the other hand, beginning in 1991, problems began in the former Yugoslavia. NATO in 1995 tried to put an end to the war with selective bombing, and the signing of the Dayton Accords paralyzed the conflict in November of the same year. However, fighting resumed in 1998, and only from renewed bombing by NATO was the surrender  of S. Milosevic (1941–2006)  obtained  in the summer of 1999.

The Maastricht  Treaty And Beyond

The Maastricht  Treaty (Netherlands),  approved February  7, 1992, came  into  effect November  1, 1993. From then  on, the European  Economic Community was to be called the  European  Union,  bestowing  a more political dimension. The treaty, which extended all the previous agreements, constituted a new phase of relations between the nations of Europe. It established a structure  based on “three pillars:” the European Communities,  the Common  Foreign and Security Policy (CFSP), and the Justice and Home Affairs (JHA). Newly added  innovations  recognized  European Citizenship (right of abode, to vote, and candidacy in any country  of the Community),  ended  the single market,  and  established  the  economy  of the European Union.

Attempting  monetary  unification  was not  a new concept (the Belgium-Luxembourg Economic Union in 1921 is one example). In the context  of the crisis of the 1970s, the European Monetary System (EMS) was established to create a monetary area in search of financial stability in the EEC. Due to its relative success, it was not until 1989 that  Delors (1925–) presented  a plan to carry out the Economic and Monetary Union (EMU). Ratified in the Maastricht Treaty (1992), soon  after  it established  criteria  that  states had to comply with to participate, involving, for example, inflation, interest  rates, budgetary  deficits, public debt, and exchange rates. The euro as currency appeared in 1999, and since 2002 has been the single currency in the eurozone (except for the United Kingdom, Denmark, Sweden, and 10 new members). The European Central Bank (ECB), created in 1998, guarantees price stability and management  of the euro.

The Maastricht  Treaty also hoped to achieve economic and social cohesion among diverse regions. The establishment  of the Cohesion Fund allowed financial resources to be transferred  to less prosperous  countries to improve infrastructures. On January 1, 1995, Austria, Sweden, and Finland were incorporated into the EU, resulting in the “European Fifteen.”

The Treaty  of Amsterdam  took effect on May 1, 1999, to  try  to  adapt  European  institutions  to  the Community  that opened the accession of central and eastern  Europe.  Its  main  accomplishment was the ratification of the Stability and Growth Pact and the agreement  to promote  employment  policies (18 million unemployed  in 1997) financed by the European Investment  Bank (EIB). Furthermore, it was agreed when the EU would increase the number  of member states and that there would be only one commissioner from each country in the Commission. The final draft foresaw the establishment  of a common  foreign and security policy, and the naming of Javier Solana, former secretary general of NATO, as Mr. CFSP, which also made him secretary general of the Council of the European Union.

The  Treaty  of  Nice,  signed  in  2001  and  taking effect in 2003, tried to resolve questions about future enlargements  that had remained pendant  in Amsterdam. The composition  of the Commission, weighting of votes in the Council, and the expansion of subjects to be passed by a qualified majority were addressed. Also, the  effectiveness of the  jurisdictional  system was increased and the recourse for “enhanced cooperation” procedure was simplified.

Negotiations  for the entry of new countries  from central and eastern Europe, which were presented  at the beginning of the 1990s, began in 1997. In 2004, the Czech Republic, Slovakia, Slovenia, Estonia, Hungary, Latvia, Lithuania, Poland, and the islands of Malta and Cyprus were admitted  to the Union, forming part of the “European Union-25.” Romania and Bulgaria were added in 2007 and subsequently comprise part of the “European Union-27.”

The European Convention  on the future of the EU that  was presided  over by Valéry Giscard d’Estaing, adjourned  with the conclusion  in 2003 that the creation of a constitution for the EU was necessary. The idea was that after the entry of 12 new states, internal cohesion had to be strengthened and the correct functioning of the supranational  institutions  guaranteed. That is why the treaty that established a Constitution for Europe was signed in October 2004. However, France and Holland did not obtain its approval by referendum in 2005 as six more countries canceled its confirmation.  Hence, in June of 2007, the leaders of the EU agreed to work out a new Treaty for the Institutional Reform of the  European  Union  before the end of 2007.

The Treaty of Lisbon was signed by member states on December 13, 2007. The new treaty declared that a president would serve a two-and-half-year term, facilitated the functioning of the institution,  recognized a legally binding Charter  of Fundamental  Rights, and intended to display a greater personality on the international level as the CFSP became the true community ministry of foreign affairs. Furthermore, it established a new weighting of votes that will permit, beginning in 2014, the approval of matters  that must be passed by double majority (55 percent of member states and 65 percent of the population).

Bibliography:   

  1. Alberto Alesina and  Francesco  Giavazzi, The Future of Europe: Reform or Decline (MIT Press, 2006);
  2. Ian Bache and George Stephen,  Politics in the European Union (Oxford University Press, 2006);
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  4. Desmond Dinan, Europe Recast: A History of European Union (Palgrave Macmillan, 2004);
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  6. “Enlarging the European  Union: Chicken  or  Kiev?” Economist  (v.387/8582,  2008);
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  11. John  McCormick, Understanding the European Union, Third Edition: A Concise Introduction  (Palgrave Macmillan, 2005);
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  14. Neill Nugent, The Government  and  Politics of the  European  Union  (Duke University  Press,  2006);
  15. “The European Union  Europe’s Mid-Life Crisis,” Economist (v.8520, 2007).

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