The Evolution of the EU: PART II

Contemporary Europe

The Evolution of the EU:1950s to present

PART II

POLS 208 European StudiesEuropean University of Lefke

From Community to Union (1992 – 2003)

Developments in WE understood within int’l context (changes taking place: e.g. breakup of Yugoslavia)

End of Cold War, WE failed in the violence outbreak of YS

Political integration disregarded: political union – economic union – cooperation on foreign policy

False starts: European Political Community (1961), European Political Cooperation (1970)

(1974) European Council first meeting in March 1975

The Idea of EuropePart II


Fontainebleau European Council 1984 (Mitterand) – decision is taken in 1990 June E. Council to convene Intergovt’l conference (IGC) on political union

Treaty on the European Union in Maastricht 1991, signed in 1992

Treaty had to be ratified by 12 member states, due to referendum issues it was accepted by November 1993



Just as SEA, the Treaty on the EU (Maastricht Treaty) - changes to the contract between member states

- Reflect the lengths to which MS were to reach compromises

- Three “pillars” created to the new structure of the “EU”

- 1st Pillar: European Community

- 2nd and 3rd Pillars: a Common Foreign and Security Policy and justice and home affairs (more formal cooperation), but final responsibility remained with the individual gov’ts



- The plan for monetary union was confirmed

- EU new responsibilities: consumer protection, public health policy, education, social policy

- Greater cooperation on immigration and asylum, Eropean police intelligence agency to be created, new Committee of the Regions to be set up, regional funds got increased

- New rights for EU citizens, EU “citizenship”

- New powers of the EU parliament: “co-decision procedure” - third reading of certain legislation



The Danish rejection and near miss in France prove significant

Ordinary Europeans awake

Debate about pros and cons expand in line with EU expansion

Much of this Debate due to public confusion and misinformation

Euroskepticism has become new factor in debates over EU



Enlargement: still on the agenda

End of Cold War: EU turns to the east

June 1993 Copenhagen: new set of requirements for membership agreed

Copenhagen Conditions: applicant state must

a) Be democratic, with respect of human rights and the rule of law

b) Have a viable market economy and the ability to respond to market forces within the EU



c) Be able to take on the obligations of the acquis communautaire (the body of laws and policies already adopted by the EU)

d) Adapt their administrative structures in order to meet the demands of integration

January 1995: Austria, Finland and Sweden join the EU (only 4 WE countries left out: Norway, Iceland and Switzerland)

-Norway (due to referendum issues) but still impacted by the EU via the membership of the EEA, Iceland kept distance till the economic crisis of 2007 damaged its banking industry



Switzerland, rejects EEA, and by 1995 surrounded by the EU. 2001 National Referendum

Two new treaties signed, due to imminent eastern enlargement and to account for the EU integration:

- Treaty of Amsterdam – October 1997 – May 1999 (confirm eastern enlargement plans, launch the single currency ), plans for the CFSP, extend EU policy responsibilities, incorporate the Schengen Agreement into the treaties, expand the power of the EP



-Treaty of Nice – Feb.2001 (few more changes to the structure of the EU Institutions, increase the size of the EC and the EP, redistribute votes in the Council of Ministers)

June 2001, Irish reject T of N, argue it surrender too much nat’l control, concern about Irish neutrality

Nice Treaty came into force in Feb.2003

The Treaty also integrated the Charter of Fundamental Rights of the EU (dates back to the ECHR), which is now part of the legal structure



The euro, Lisbon and beyond

Rapid progress on the single currency, 1995 decision to name it the “euro”

Maastricht required MS to fix exchange rates by Jan.1999

Several “convergence criteria” considered essential prerequisites: limits on national budget deficits, public debt, consumer inflation, and long-term interest rates

Summit May 1998 concludes all but Greece fit the criteria



Public resistance in Britain and Germany esp., also confusion on which should or would fix exchange rates (MS inflation rate low, unemployment high, slowing industrial growth)

January 1999 euro becomes electronic currency in all but Denmark, Sweden and UK, banknotes start circulating in Jan.2002, 12 members of the Eurozone abolish own currencies in March

Concerns over the ability of the market to improve rates of productivity or create new jobs to meet demand (Eurosclerosis)

March 2000, EC launches the Lisbon Startegy



Lisbon sets the goal: make the EU most dynamic economy in the world (demands creation of more jobs, more women into the workplace, liberalize telecommunications & energy markets, improve transport, open up labor markets)

Lisbon strategy superseded by Europe 2020: focus on innovation, education, sustainable growth, low-carbon economy, and job creation)



May 2004, 10 eastern European and Mediterranean states join: Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovenia, and Slovakia (their economies smaller than that of Netherlands, population increase less than 20%)

Symbolic confirmation of the Cold War division in Europe, accelerate the process of transforming the economies and democratic structures of EE countries

January 2007, Romania and Bulgaria join (second phase of 2004 EU enlargement)



Croatia, Iceland, Macedonia, Montenegro and Turkey also accepted as “candidate countries”, Croatia joins in 2013

All policy and membership changes required to rewrite the rules of the EU, esp. to make it more democratic and closer to its citizens

Laeken EC Dec.2001: agreed to draw up a treaty containing a constitution to simplify and replace all other treaties

Convention on the future of the EU, Feb. 2002 to July 2003, numerous proposals, e.g. elected president of the EC, foreign minister to the EU, limit on the membership of the EU Commission, common EU foreign and Security policy, legal responsibility of the EU (whose laws would cancel out those of nat’l parliaments in areas of EU competence)



Lithuania: 1st to ratify it through a parliamentary vote in Nov.2004

Spain: 1st to ratify through a nat’l referendum in Feb.2005

Signs of political and public resistance, opinion that the treaty won’t survive a referendum in eurosceptical Britain

It was French and Dutch: negative votes in May and June 2005

The Constitution's debate took place against a background of the most serious rift in transatlantic relations (2001 terrorist attack in US, followed a multinational attack on Afghanistan, then US turns attention to Iraq)



Europe public opinion strongly against Iraq attack, but EU gov’ts divided: France and Germany leading the opposition, Britain and Spain offer support

Questionable: American leadership in NATO, EU’s ability to make a mark on the global stage

Despite transatlantic tensions EU leaders still discuss constitutional change, early 2007 agree to save as many elements as possible of the failed consitution



The New Treaty of Lisbon, almost a replica of the constitution

The treaty considered to be amendment to the previous treaties (thus no need for nat’l referendum)

Ireland, required by law, voted against in June 2008

Special protocol negotiated to address Irish concerns over neutrality and tax issues, October 2009 Irish vote positive

Lisbon ends the pillar arrangement of Maastricht, key institutional changes (creation of a new president of the EC and a single legal personality for the EU)



The identity of the EU on the global stage has undergone transformation all the while

EU leaders embarrassed by their failure to provide leadership (Yugoslavia), but EU policy succeeds in EE (took the lead on post cold war reconstruction)

The US role in EU Affairs declining (esp. the fallout over Iraq’s crisis)

More to come with the US rooted global economic crisis (too little regulation allowed extension of credit to consumers), much of the debt bought up by EU Banks and financial institutions

Greece, Ireland, Spain and Portugal budget crisis in 2010



The Evolution of the EU: PART II

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