Introduction to the European Union

Dr. Milada Anna VachudovaAssociate ProfessorDepartment of Political Science

Dr. Erica E. EdwardsExecutive DirectorEuropean Union Center of ExcellenceUNC Chapel Hill

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

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

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.

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

Future enlargements

population EU 27 = 501 million

Croatia, Macedonia, Turkey are candidates

Serbia, Bosnia, Montenegro, Kosovo, Albania, Iceland

Impact of successive enlargements (1958-2007)

  1958 1973 1981 1986 1995 2004 2007 US NC

Area (1000km) 1,167 1,524 1,658 2,252 3,234 3,892 4,343 9,631 139

Population (millions) 185 273 287 338 370 457 501 300 9.4

Member States 6 9 10 12 15 25 27 50 100

OfficialLanguages 4 6 7 9 11 20 22 1 1

MEPs 142 198 434 518 626 732 736 435+6 170

Population Density (2008)

Regional Disparities

(2005)

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

Orthodox Christianity

Sunni Islam

Catholic Christianity

Protestant Christianity

Why is there a European Union?

Barroso Video

I. War experience

World War I: ≈20 million dead

World War II: ≈70 million dead

Nationalism: the most deadly force in human history

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)

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

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

How can war be averted?

Building a web of rules

European Coal and Steel Community (1951)

European Defense Community (1954)

European Economic Community (1957)

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

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

How does the EU work?

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 leviesOther= e.g. fines, taxes paid by employees, third country contributions

Ceiling =1.24%

of EU GDP (293 Euro/citizen)

2010: 142 billion Euro

Budget

37%

34%

10%

4%

5%

5%5%

cohesion policy

agriculture

rural development

research

administration

external relations

other

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)

US Separation of Powers

Presidency + Fed bureaucracy

Senate House of Representatives

LEGISLATION

Presidential veto

Supreme Court

Federal Reserve

EU Separation of PowersEuropean

Commission

Council of Ministers

European Parliament

European Council

EU LAWS

LEGISLATIVE PROPOSAL

LEGISLATIVEPROPOSAL

European Court of Justice

European Central Bank

National parliaments

HRFA

The Commission is the institution that represents the general interests of the Community.

Epitomizes supranationalism“Engineer of European integration”Ultimate scapegoatThe 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

• 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

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

Council of the European UnionSector-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

European ParliamentThe 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.

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).

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,

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

Challenges Facing the EU TodayFinancial 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?