The European Union

THE EUROPEAN UNION

The European Union

What is the European Union?

• Shared values: liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law.

• Largest economic body in the world.

• World’s most successful model for advancing peace and democracy.

• A unique institution – Member States voluntarily cede national sovereignty in many areas to carry out common policies and governance.

• Not a super-state to replace existing states, nor just an organization for international cooperation.

• World’s most open market for goods and commodities from developing countries.

27

7

30

490million

Member States

Combined population of

EU Member States

Percent of world’spopulation

Percent of global GDP

55Percent of combinedworldwide OfficialDevelopment Assistance

The European Union

EU InstitutionsEuropean Commission

• 27 Commissioners, representing the European perspective, each responsible for a specific policy area.

• EU’s executive branch proposes legislation, manages Union’s day-to-day business and budget, and enforces rules.

• Negotiates trade agreements and manages Europe’s multilateral development cooperation.

Council of the European Union

• EU’s main decision-making body, comprised of ministers of 27 Member States, representing Member State’s point of view.

• Decides on foreign policy issues.

• Council presidency rotates among Member States every six months.

European Commission President José Manuel Barroso

The European Union

EU InstitutionsEuropean Parliament

• Voice of European citizens – members elected for five-year terms.

• With the Council, passes EU laws and adopts EU budgets.

• Approves EU Commissioners.

European Court of Justice

• Highest EU judicial authority.

• Ensures all EU laws are interpreted and applied correctly and uniformly.

• Can act as an independent policy maker but unlike the U.S. Supreme Court, the ECJ can only deal with matters covered by the Treaties.

European Parliament in session

The European Union

European Central Bank

• The European Central Bank (ECB) is the central bank for Europe's single currency, the euro.

• The ECB’s main task is to maintain the euro's purchasing power and thus price stability in the euro area.

• The euro area comprises the 15 European Union countries that have introduced the euro since 1999.

• The ECB operates independently from Member State governments.

The euro was introduced in 1999

The European Union

United in Diversity - The €uro

The European Union

The €uroIn 1999, the euro area was established as a currency in eleven of the then fifteen EU Member States.

Of the 27 EU Member States today, fifteen have adopted the euro.

One of the striking benefits of a single European currency are low interest rates due to a high degree of price stability.

The euro is as stable and credible as the best-performing currencies previously used in the euro area countries.

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The European Union

1951:

• In the aftermath of World War II, the aim was to secure peace among Europe’s victorious and vanquished nations and bring them together as equals, cooperating within shared institutions.

• Based on a plan by French Foreign Minister Robert Schuman.

• Six founding countries – Belgium, the Federal Republic of Germany, France, Italy, Luxembourg and the Netherlands – signed a treaty to run heavy industries (coal and steel) under common management.

European Coal and

Steel Community

Jean Monnet and other leaders with the first “European” ingot of steel

The European Union

Treaty of Rome

• The six founding countries expanded cooperation to other economic sectors, creating the European Economic Community (EEC) – or “common market.”

• As a result, people, goods, services, and capital today move freely across the Union.

1957:

Signing of the Treaty of Rome

The European Union

1951

Founding Members

BelgiumFrance

GermanyItaly

LuxembourgNetherlands

The European Union

1973

DenmarkIreland

United Kingdom

The European Union

1981

Greece

The European Union

1986

PortugalSpain

The European Union

November 1989

Fall of theBerlin Wall

sets thestage forunifying

Europe andEU

enlargement

The European Union

1995

AustriaFinlandSweden

The European Union

2004

CyprusCzech Republic

EstoniaHungaryLatvia

LithuaniaMaltaPoland

SlovakiaSlovenia

The European Union

2007

BulgariaRomania

The European Union

Candidate Countries

Croatia

Former Yugoslav Republic of Macedonia

Turkey

Potential

Candidate Countries

Albania

Bosnia & Herzegovina

Montenegro

Serbia including Kosovo under UN Security Council

Resolution 1244

The European Union

The European Union and the United States

“Our strong friendship is essential to peace and

prosperity around the globe. No temporary debate, to

passing disagreement among nations, no power

on earth, will ever divide us.”

President George W. Bush

“The relationship between the United States and Europe is the

world’s strongest, most comprehensive, and

strategically important partnership. The United States,

and a united Europe – this is really the indispensable

partnership.”

President of theEuropean Commission José Manuel Barroso

The European Union

Shared Values and Responsibilities

• Freedom & DemocracySupport free elections, good governance, human rights, and the rule of law around the world.

• SecurityCooperate to fight terrorism, limit the spread of nuclear weapons, and work for global peace.

• DevelopmentTogether, EU and U.S. provide 80% of global development assistance and an even larger share of global humanitarian aid in times of disaster and conflict.

The European Union

• European companies are the leading foreign investors in the U.S.

– The UK, Germany, France, and the Netherlands – top four sources of jobs created by foreign investment in the United States.

• American companies invest far more in EU countries than in Asia.

– U.S. businesses make 5 times the profit in the Netherlands - alone - as they make in China.

– In 2005, EU investments in Texas alone surpassed all U.S. investments in China and Japan, combined.

BMW’s assembly plant is South Carolina’slargest private sector employer.

The European Union

“Since no single nation can efficiently

and effectively deal with global

challenges such as climate change,

counterterrorism, non-proliferation,

pandemics and natural disasters on its

own, we commit ourselves to

strengthening our cooperation to

address these challenges.”

EU-U.S. Summit Declaration

Vienna, July 2006

The European Union