Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus...

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Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012

Transcript of Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus...

Page 1: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Topical Problems of European Public Administration

VSFS

Prof. El. ThalassinosUniversity of Piraeus

Greece

Nov. 2012

Page 2: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Europe’s Institutional Organization

Europe Today

Page 3: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The EU todayEU population in the world

Population in millions, 2009

500

1339

128 142

307

EU China Japan Russia United States

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The EU todayThe area of the EU compared to the rest of the world

Surface area, 1 000 km²

EU China Japan Russia United States

16 889

9327 9159

4234

365

Page 5: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The EU todayHow rich is the EU compared to the rest of the world?

EU China Japan Russia United States EU China Japan Russia United States

12 508

1 326

3 329

468

9819

25 100

4 400

27 800

12 200

38 700

Size of economy: 2008 gross domestic product in billion of euros

Wealth per person: 2008 gross domestic productper person

Page 6: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Development of European Integration Process in 19th and 20th century

The EU is by far the most successful peace project in history.

EU’s development is a history of incremental approach towards:

Political integration; Economic integration of national policies with the EMU

constituting the “crowns’ jewel”.Both speak volumes of EU’s political nature but also of the advancements made in the field of economic theory.

Strategy: promoting further integration through the attainment of specific economic goals.

Result: development of institutional bonds and common interests between member states aiming to reconciliate historical differences between great European Powers

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Past Attempts to Unify Europe through the Use of Violence Roman Empire. Charlemagne (Carolingian Dynasty) Holly Roman Empire Habsburg Monarchy Napoleonic France Hitler

EU represents a fundamental break with Europe’s violent past.

Zollverein (GER): the roots of the EU’s (E.E.C.) theoretical foundation. Ironically enough, a French (Schuman & Monnet) conception of establishing a common market (due to fear of the German power) is based on the German culture of a decentralized federal system of economic and political management.

Page 8: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The Holy Roman Empire was a highly decentralized state for most of its history, composed of hundreds of smaller states, most of which operated with some degree of independent sovereignty.

The splintering of territory and states over generations meant that by the 1790s in the German-speaking Holy Roman Empire in Central Europe, there were approximately 1800 customs barriers. The myriad of customs barriers restricted trade and hampered the industrial development, but the rulers of the states were reluctant to forgo their income from the customs.

The German Customs Union (Zollverein) was a coalition of German states formed to manage customs and economic policies within their territories.

The political strength of the Customs Union lay with the Prussians, whose promotion of the Little Germany solution of national political unification mirrored the Customs Union's economic solution.

Zollverein (1834-1919)

Page 9: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Zollverein (1834-1919) Objectives (Friedrich List, German Economist)• to improve the economies of the German states;• to strengthen Germany against potential French aggression while reducing the

economic independence of smaller states;• To provide protection from English exports

Results: It removed the various obstacles (such as different weights ad measure in

German states) to economic exchange and growth by the new commercial classes;

It created a national unity in economic matter at a time when Germany was divided;

It created a larger market for German-made farm and handicraft products and promoted commercial unification under fiscally sound economic parameters;

It accustomed German States to co-operate with Austria who had not become a member of Zollverein;

While the Union sought to limit trade and commercial barriers between and among member states, it continued to uphold the protectionist barriers with outsiders (“Fortress Europe”, the same as the Napoleonic “Continental System”).

Page 10: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Political Impact: The Zollverein, in retrospect, did much more than simply

cement alliances between the various German states as its Prussian architects had intended.

It set the groundwork for the unification of Germany under Prussian dominance, achieved less than five decades later.

The economic dominance of Prussia made unification inevitable, as it led invariably to military dominance and thus political primacy.

It established an anti-Austrian tradition among the Prussians.

Zollverein (1834-1919)

Page 11: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

European Unification Idea in the 19th Century

Tsar Alexander: as the most advanced internationalist of the day, suggested a kind of permanent European union and even proposed the maintenance of international military forces to provide recognized states with support against changes by violence.

William Penn: As a pacifist Quaker, Penn considered the problems of war and peace deeply, and included a plan for a United States of Europe ("European Dyet, Parliament or Estates") in his voluminous writings.

Charles-Irenee Castel de Saint-Pierre: Saint-Pierre was possibly the earliest person to mention the possibility of a European Union. His work on a European community was direct inspiration for the idea of an international order based on the principle of collective self-defense, and was important to the creation of the Concert of Europe, and, later, the League of Nations

Giuseppe Mazzini: Mazzini was an early advocate of a "United States of Europe" about a century before the European Union began to take shape. For him, European unification was a logical continuation of Italian unification.

Page 12: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

European Unification Idea in the 20th Century – Pre WW II The idea of a United Europe became greater

in Europe following World War I, with the massive loss of life it entailed, but it was not until after World War II that real steps were taken.

Richard Nikolaus von Coudenhove-Kalergi: is recognized as the founder of the first popular movement for a united Europe. In the early 1920s he joined a Masonic lodge at Vienna, where he would reach several degrees. In 1922 he co-founded the Pan-European Union (PEU) with Archduke Otto von Habsburg, as "the only way of guarding against an eventual world hegemony by Russia". In 1923, he published a manifesto entitled Pan-Europa, each copy containing a membership form which invited the reader to become a member of the Pan-Europa movement. He favored social democracy as an improvement on "the feudal aristocracy of the sword" But his ambition was to create a conservative society that superseded democracy with "the social aristocracy of the spirit"

Page 13: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

European Unification Idea in the 20th Century – Timeline Winston Churchill: in 1946 at the University of Zurich, he calls for a United

Europe 1949: establishment of the Council of Europe 1950: 9th May, the French Foreign Minister Robert Schuman proposed a

community to integrate the coal and steel industries of Europe - these being the two elements necessary to make weapons of war.

Treaty of Paris (1951) – ECSC Treaties of Rome (1957) – European Atomic Energy Community and European

Economic Community Hague Treaty (1958) – BENELUX Economic Union (free transfer of good,

services, capital and people) Treaty of Brussels (1967) – Merger of the three Communities 1970: the Werner Report Collapse of Bretton Woods Regime & the European Monetary Snake (Basle

Accord): first attempt to limit fluctuations in participating currencies 1979 – European Monetary System & ERM I 1986: Single European Act 1989: Delors Report 1992: Treaty of the European Union, Maastricht Convergence Criteria and

Monetary Union Structures. 1996: Treaty of Amsterdam 2000: Treaty of Nice 2004: Treaty Establishing the Constitution of Europe 2007: Treaty of Lisbon

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The treaties – basis for democratic cooperation built on law

1952The European Steel and Coal Community

1958The treaties of Rome:

The European Economic CommunityThe European Atomic Energy Community

(EURATOM)

1987The European Single Act:

the Single Market

1993Treaty of European Union

– Maastricht

1999Treaty of Amsterdam

2003Treaty of Nice

Page 15: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

EU Enlargements 1958: FRA, GER, ITA, BEL, NETH, LUX 1973: UK, IRL, DNM 1981: GRE 1986: SPN, PORT 1994: AUT, FIN, SWE 2004: CYP, MLT, SLVN, SLVK, CZE, HUN, POL, EST, LTV, LITH 2007: BUL, ROM

EMU Enlargement 1999: FRA, GER, BELG, NETH, LUX, ITA, SPN, POR,

AUT, FIN, IRE, MLT 2001: GRE 2007: SLVN 2008: CYP 2009: SLVK 2011: EST

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Enlargement: from six to 27 countries

1952 1973 1981 1986

1990 1995 2004 2007

Page 17: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The big enlargement: healing the division of Europe

Fall of Berlin Wall – end of CommunismEU economic help begins: Phare programme

Criteria set for a country to join the EU:• democracy and rule of law• functioning market economy• ability to implement EU laws

Formal negotiations on enlargement begin

Copenhagen summit agrees enlargement

10 new EU members: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia

1989

1992

1998

2002 2004

2007 Bulgaria and Romania join the EU

CandidatesIceland, Former Yugoslav Republic of Macedonia, Montenegro, Turkey

© R

eude

rs2013 Croatia joins on 1st of July

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European Integration Evolution European Economic Cooperation:

- The basis and the institutional framework had been laid down from:a) Treaty of Paris (1951) – ECSCb) Treaties of Rome (1957) – European Atomic Energy Community and European Economic Communityc) Hague Treaty (1958) – BENELUX Economic Union (free transfer of good, services, capital and people)d) Treaty of Brussels (1967) – Merger of the three Communities

Monetary Union Early Attempts:

- 1970: Werner Report – envisioned the creation of an Economic and Monetary Union in three stage. Characteristics: common currency, fixed exchange rates. Too early, as conditions had not matured for such a big step, let alone international monetary pressures that the Bretton Woods system was undertaking along with USA’s economy- 15/8/1971: Collapse of Bretton Woods monetary regime- 23/8/1971: Benelux agreement on setting the margin of exchange rates fluctuation between them at 1,5% (+/- 0.75%)

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European Integration Evolution 1972 - European Monetary Snake (Basle Accord): attempt to limit fluctuations

in participating currencies (+/- 2.25%) with mint parity currency the US dollar- Collapse: final collapse of the Bretton Woods regime after the Smithsonian agreement coupled with the first Petroleum Crisis in 1973 put pressure on the European monetary system of exchange rates coordination to such extent that practically was abandoned due to several revaluations of almost all member states currencies. However, the experience and the foundations laid were valuable for the road ahead (institutions-European Monetary Cooperation Fund- and monetary cooperation culture)

1979 – European Monetary System: second attempt to prevent large currency fluctuations. Characteristics: 1) ECU: European unit of account whose value was value was determined as a weighted average of participated currencies. It served as the mint parity in the ERM2) Exchange Rate Mechanism (ERM): bilateral exchange rates were calculated on the basis of the central rates expressed in ECUs and were bound to fluctuate within certain margin (2.25% with the exception of ITA lira – 6%)3) Extension of European Credit Facilities: 4) European Monetary Cooperation Fund: allocates ECUs to member Central Banks in exchange for Gold and US dollar deposits. Significant Remark: The DM and Bundesbank were without any shadow of doubt the centre of the EMS due to its relative strength and stability compared to other currencies, that reflected GER’s predominant economic position, low inflation and a tradition of monetary discipline policies from the Bundesbank that enjoyed independence from centers of political decisions.

Page 20: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

European Integration EvolutionCollapse – Reasons that had rendered it dysfunctional until

1998:1) DM’s central role dissatisfied many countries in the EU. 2) 1990’s: free capital movements within the EU + 3) German Unification (GER had to allocate many funds for incorporating East Germany) and other political developments gave rise to differing economic policies of the participating states and led to relative instability of the DM due to increased interest rates4) Speculative attacks on weaker participating currencies led to periodic adjustments raising the values of strong currencies and lowered those of weaker onesAftermath: Created a culture of Monetary Discipline and Monetary Institutions (European Monetary Institute that superseded the European Monetary Cooperation Fund and TARGET) that laid the foundation for & were to be succeeded by those of the EMU

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European Integration Evolution 1986 – Single European Act: Due to de facto lack of free

trade between EU member states, they embarked on the project of invigorating the Single Market. SEA is the first revision of the Treaty of Rome that resets the objective of establishing a Single Market intending to remove barriers, increase harmonization and competitiveness through the promotion of Cooperative procedures and Qualified Majority Voting to several areas. Additionally, the SEA made mention that for a Single Market to function and thrive there needed to be Economic and Monetary Convergence in the EU adopting, grosso modo, the essence of the proposals that had been made in the “Werner Plan”. The SEA formalized political cooperation in the European Union, including competency in Monetary Policy

1989 – Delors Report: laid down the foundations of the EMU establishment. It anticipated the creation of the EMU in three stages and the creation of relevant institutions. The Maastricht Treaty proceed to the adoption of the Delors Report, with small changes.

Page 22: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

European Integration Evolution 1992 – Treaty of the European Union (Maastricht): European Monetary Union

– Common Foreign and Security Policy – European Union and the Three PillarsGoal: Creation of a Monetary Union based on the establishment of a Common Currency that is managed by a Common and Independent European Central Bank. The model reflects, to a great extent, GER’s monetary structures and attitudes. Maastricht Economic and Monetary Convergence Criteria for joining the EMU:1) Inflation: no more than 1,5% higher than the average of the three best performing (lowest inflation) member states of the EU.2) Long Term Interest Rates: should not be more than 2% higher than those in the three lowest inflation member states.3) Exchange Rates Stability: applicant countries should have joined the ERM II under the European Monetary System for two consecutive years and should not have devalued their currency during that period.4) Fiscal Criteria: - Annual Government Deficit: ratio of annual government deficit to GDP must not exceed 3% at the end of the preceding fiscal year. - Government Debt: ratio of Government debt to GDP must not exceed 60% at the end of the preceding fiscal yearGoal: relatively stable prices, healthy fiscal sector, healthy monetary conditions, stable Balance of Payments for each country that wished to participate.

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The Treaty will make the European Union:

More efficient Simpler processes, full-time president for the Council, etc.

More democratic Stronger role for the European Parliament and national parliaments, "Citizens Initiative", Charter of Fundamental Rights, etc.

More transparent Clarifies who does what, greater public access to documents and meetings, etc.

More united on High Representative for Foreign Policy, etc. the world stage

More secure New possibilities to fight climate change and terrorism, secure energy supplies, etc.

The lisbon treaty – Taking the EU to the 21st Century

Page 24: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

EMU Institutions:1) ERM II: It succeeded ERM I in 1999 and substituted the EMS. Goal: to connect the currencies of those countries that are not in the Eurozone with the EURO and help them adopt and implement stabilizing policies that would enable them to join the Eurozone in the future The margin of fluctuation of those currencies with respect to their exchange rate to EURO is 15%. In case of divergence the county’s Central Bank is allowed to intervene to the extent that this intervention is not contrary to the Eurozone’s goals. 2) European System of Central Banks: it is comprised by the European Central Banks and the Central Banks of the participating countries in the Eurozone. It enjoys full independence, in terms of decision making, from central governments and EU’s institutions but have to answer to the latter regarding its course of actions. EU institutions and Central Governments should not seek to influence its decisions. This was decided on the premise that Monetary issues in the EU context are of utmost importance with significant political implications that should not be left at the hands of politicians who would be tempted, in case of elections, to use them for their benefit. Therefore, independence of EMU structures is ensured as a prerequisite for monetary stability in the EU. Goals:- to define and implement the monetary policy of the Eurozone- to conduct foreign exchange operations- to hold and manage the official foreign reserves of the Member States- to promote the smooth operation of the payment system- to supervise credit institutions and ensure the smooth operation of the financial system

EMU Structures

Page 25: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

EMU Institutions (continue):3) European Central Bank: succeeded the EMI. It forms, decides and implements its policies and measures through the Governing Council, the Executive Board and the General Council: i) Governing Council: comprises of all the members of the Executive Board plus the governors of the ECB’s member states.Goals: a) adopt guidelines and decisions necessary for ensuring the tasks entrusted to the Eurosystemb) formulate Monetary Policy for the Eurozonec) Establish necessary guidelines for the implementation of its policyii) Executive Board: comprises of the President, the Vice President and four other members of distinguished carrier in the financial and the banking sector (appointed by heads of governments and council of ministers, after consultation with European Parliament and the Governing CouncilGoals: a) implement Monetary Policy and guidelines that are decided by the Governing Councilb) execute powers that have been delegated to it by the Governing Counciliii) General Council: comprises by President, Vice President and governors of NCB’s. It performs tasks that the ECB took over from the EMI, that is:a) ECB’s advisory functionsb) Collection of statistical informationc) Preparation of ECB’s annual reportsd) Establishing necessary rules for standardizing accounting and reporting of operations undertaken by the ECBe) Preparations for irrevocably fixing the exchange rates of the currencies of the member states with a derrogation against the EUROand others

EMU Structures

Page 26: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

4) Stability and Growth Pact: is an agreement among the members of the EU that take part in the Eurozone, to facilitate and maintain the stability of the EMU. It consists of fiscal monitoring of members by the European Commission and the Council of Ministrers and, after multiples warnings, sanctions against offending members.The pact was adopted in 1997 so that fiscal discipline would be maintained and enforced in the EMU. Member states adopting the euro have to meet the Maastricht convergence criteria, and the SGP ensures that they continue to observe them, especially as regards the fiscal convergence criteria. SGP is placed in the context of Economic Policy Coordination and convergence between the Eurozone states.5) Eurogroup: meeting of the finance ministers of the Eurozone regarding the political control over the EURO and related aspects over the European Monetary Policy, such as the SGP. Their meeting is held one day before the meeting of ECOFIN, which decides on issues regarding the Eurozone.

EMU Structures

Page 27: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

In U.S. style central banking, liquidity is furnished to the economy primarily through the purchase of Treasury bonds by the Federal Reserve Bank. The Eurosystem uses a different method. There are about 1500 eligible banks which may bid for short term repo contracts of two weeks to three months duration.

The banks in effect borrow cash and must pay it back; the short durations allow interest rates to be adjusted continually. When the repo notes come due the participating banks bid again. An increase in the quantity of notes offered at auction allows an increase in liquidity in the economy. A decrease has the contrary effect. The contracts are carried on the asset side of the European Central Bank's balance sheet and the resulting deposits in member banks are carried as a liability.

All lending to credit institutions must be collateralised as required by Article 18 of the Statute of the ESCB

EMU Structures

Page 28: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

To qualify for participation in the auctions, banks must be able to offer proof of appropriate collateral in the form of loans to other entities. These can be the public debt of member states, but a fairly wide range of private banking securities are also accepted. The fairly stringent membership requirements for the European Union, especially with regard to sovereign debt as a percentage of each member state's gross domestic product, are designed to insure that assets offered to the bank as collateral are, at least in theory, all equally good, and all equally protected from the risk of inflation.

The economic and financial crisis that began in 2008 has revealed some relative weaknesses in the sovereign debt of such member countries as Portugal, Ireland, Greece and Spain. These securities are not limited to the countries of issue, but held in many cases by banks in other member states. To the extent that the banks authorized to borrow from the ECB have compromised collateral, their ability to borrow from the ECB—and thus the liquidity of the economic system—is impaired.

EMU Structures

Page 29: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Significance of Monetary Union

Political Significance1) The significance of a Monetary System & Monetary Issues2) The EURO as an alternative reserve currency. 3) While in 1995 only few member states could claim that they fulfilled the Maastricht criteria, in 1997 eleven member states were considered as eligible for the EMU…

Economic Significance1) The International Economic Environment today2) Monetary Unions Theory- Motives for establishing a Monetary Union: a) Increase of Monetary stability & Economic Security against speculation. b) Increase of Financial Credibility in International Markets. c) Boosting of a Single Market that precedes a Monetary Union. d) Increase of Economic power and independence in the International Political and Economic arena.

Economic Rationale of a Monetary Union- Elimination of exchange rates fluctuations & devaluations- Greater price transparency - Reform of labor markets & opening up of economies to greater competitionResults:- More efficient allocation of resources- Reduction of Cost of Capital- Boost of Productivity & Investments- Greater Prosperity

Page 30: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Stages of European Integration

Preferential Trade Area Free Trade Area Customs Union Single Market Monetary Union Fiscal Union Full Economic Union/Integration

Page 31: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

2012 EU budget: €147.2 billion = 1.12% of gross national income

Citizens, freedom,security and justice

1%

Other, administration6%

Sustainable growth:jobs, competitiveness, regional development

46%

The EU as a global player:including development aid

6%

Natural resources:agriculture,

environment41%

How does the EU spend its money?

Page 32: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The euro – a single currency for Europeans

EU countries using the euroEU countries not using the euro

Can be used everywhere in the euro area

Coins: one side with national symbols, one side common Notes: no national side

Page 33: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Beating inflationEuropean Economic and Monetary Union: stable prices

Average annual inflation in the 15 EU-countries that used the euro in 2008 

Page 34: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The single market: freedom of choice

Four freedoms of movement:

goods

services

people

capital

© G

etty

Im

ages

The single market has led to:

significant reductions in the price of many products and services, including internet access and airfares.

40% drop in price of phone calls from 2000-2006

2.8 million new jobs

Page 35: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Free to move

“Schengen”: No police or customs checks at borders between most EU countries

Controls strengthened at EU external borders

More cooperation between police from different EU countries

You can buy and bring back any goods for personal use when you travel between EU countries ©

Cor

bis

Free Movement of People

Page 36: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

An area of freedom, security and justice

Charter of Fundamental Rights

Joint fight against terrorism

Police and law-enforcers from different countries cooperate

Coordinated asylum and immigration policies

Civil law cooperation

© E

urop

ean

Uni

on P

olic

e M

issi

on

Page 37: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The EU – a major trading power

Share of world trade in goods (2007)

Share of world trade in services (2007)

Others53.2%

EU17%

United States14.5%

Japan5.8%

China9.5%

Others40.6%

EU28.5%

United States18.2%

Japan6.8%

China5.9%

Page 38: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The EU is the biggest provider of development aid in the world

Official development assistance per citizen, 2007

93€

44€

53€

EU Japan United States

The EU provides 60% of all development aid

Page 39: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

European Parliament

The EU institutions

Court of Justice

Court of Auditors

Economic and Social Committee Committee of the Regions

Council of Ministers(Council of the EU) European Commission

European Investment Bank European Central BankAgencies

European Council (summit)

Page 40: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Citizens, interest groups, experts: discuss, consult

Commission: makes formal proposal

Parliament and Council of Ministers: decide jointly

Commission and Court of Justice: monitor implementation

National or local authorities: implement

The EU Law Making

Page 41: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

EU Decision Making

Ordinary Legislative Procedure

Page 42: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

EU Decision Making Flow Chart

EU Decision Making Flow Chart

Page 43: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

EU Competencies Exclusive competence:"The Union has exclusive competence to make directives and

conclude international agreements when provided for in a Union legislative act." the customs union the establishing of the competition rules necessary for the functioning of the

internal market monetary policy for the Member States whose currency is the euro the conservation of marine biological resources under the common fisheries policy common commercial policy conclusion of certain international agreements

Shared competence:"Member States cannot exercise competence in areas where the Union has done so.""Union exercise of competence shall not result in Member States being prevented from exercising theirs in:"

the internal market social policy, for the aspects defined in this Treaty economic, social and territorial cohesion agriculture and fisheries, excluding the conservation of marine biological

resources environment consumer protection transport trans-European networks energy the area of freedom, security and justice common safety concerns in public health matters, for the aspects defined in this

Treaty research, technological development and space development cooperation, humanitarian aid

Page 44: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

EU Competencies "The Union coordinates Member States policies or

implements supplemental to theirs common policies, not covered elsewhere"

coordination of economic, employment and social policies common foreign, security and defence policies

Supporting competence:"The Union can carry out actions to support, coordinate or supplement Member States' actions in:"

the protection and improvement of human health industry culture tourism education, youth, sport and vocational training civil protection (disaster prevention) administrative cooperation

Page 45: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

EU Foundations EU Pillars

Page 46: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The European Parliament – voice of the people

Decides EU laws and budget together with Council of MinistersDemocratic supervision of all the EU’s work

Number of members elected in each country (January 2012)

United Kingdom12

22

74

73

13

Italy

Ireland

22Hungary

Greece

99Germany

France

Finland

6Estonia

13Denmark

22Czech Republic

6Cyprus

18Bulgaria

22Belgium

19Austria

Total 753

72

20Sweden

54Spain

8Slovenia

13Slovakia

33Romania

22Portugal

51Poland

26Netherlands

6Malta

6Luxembourg

12Lithuania

9Latvia

Page 47: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The European political parties

Greens/European Free Alliance58

European Conservatives and Reformists 53

Alliance of Liberals andDemocrats for Europe

84European People’s Party (Christian Democrats)271

Non-attached members 30

Total : 753

Progressive Alliance of Socialists and Democrats

190

European UnitedLeft - Nordic Green Left

34

Europe of Freedom and Democracy33

Number of seats in the European Parliament per political group

(January 2012)

Page 48: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Council of Ministers – voice of the member states

One minister from each EU country

Presidency: rotates every six months

Decides EU laws and budget together

with Parliament

Manages the common foreign and

security policy

Page 49: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Council of Ministers – number of votes per country

345Total:

3Malta

4Estonia, Cyprus, Latvia, Luxembourg and Slovenia

7Denmark, Ireland, Lithuania, Slovakia and Finland

10Austria, Bulgaria and Sweden

12Belgium, Czech Republic, Greece, Hungary and Portugal

13Netherlands

14Romania

27Spain and Poland

29Germany, France, Italy and the United Kingdom

“Qualified majority” needed for many decisions:255 votes and a majority of member states

From 2014: 55% of the Member States with 65% of the population

Page 50: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Summit at the European CouncilSummit of heads of state and government of all EU countries

Heldat least 4 times a year Sets the overall guidelines for EU policies

President: Herman Van Rompuy

Page 51: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Catherine Ashton

Double hat: chairs the Foreign Affairs Council meetings + Vice-president of the European Commission

Manages the common foreign and security policy

Head of European External Action Service

A High Representative for Foreign Policy and Foreign Affairs

Page 52: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

The European Commission – promoting the common interest

27 independent members, one from each EU country

Proposes new legislationExecutive organ Guardian of the treatiesRepresents the EU on the international stage

Page 53: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

27 independent judges, one from each EU country

Rules on how to interpret EU lawEnsures EU countries apply EU laws in the same way

The Court of Justice – Upholding the Law

Page 54: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

27 independent members

Checks that EU funds are used properly Can audit any person or organisation dealing with EU funds

The European Court of Auditors – Getting value for your money

Page 55: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Ensures price stability

Controls money supply and decides interest rates

Works independently from governments

Mario DraghiPresident of the Central Bank

The European Central Bank – Managing the Euro

Page 56: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

344 members

Represents trade unions, employers, farmers, consumers etc

Advises on new EU laws and policies

Promotes the involvement of civil society in EU matters

The European Economic and Social Committee – the voice of Civil Society

Page 57: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

344 members

Represents cities, regions

Advises on new EU laws and policies

Promotes the involvement of local government in EU matters

The Committee of the Regions – voice of local governemnt

Page 58: Topical Problems of European Public Administration VSFS Prof. El. Thalassinos University of Piraeus Greece Nov. 2012.

Permanent civil servants

Selected by open competitions

Come from all EU countries

Salaries decided by law

EU administration costs €15 per EU citizen per year

Commission employs about 23 000 permanent civil servants and 11 000 temporary or contract workers

Other EU institutions: about 10 000 employed

EU Bureaucracy - Civil Servants working for the EU