Isis Quinones 2009535001

The European Union (EU)The European Union (EU)

Isis Quinones Isis Quinones

Introduction: Let’s go to the essentials of EU.

The European Union

Conclusions: The EU Future

History of the EU

The Microeconomics behind the European Union

55

44

33

22

11

Table of Contents Table of Contents

REFERENCESREFERENCES

Wilem Molle (2006).The Economics of European Integration: Theory, Practice, Policy, London: Ashgate.

John Gllingham (2003). European Integration. 1950-2003 Superstate or New Market Economy, Cambridge University Press.

http://www.learnliberty.org/content/economic-freedom-and-growth

Isis Quinones 2009535001

The European Union (EU)The European Union (EU)

HISTORY OF THE EUHISTORY OF THE EU

Isis Quinones 2009535001

1815-1870

Introduction (1815-1870)

•Two Factors Stimulating Integration: Technical Progress and Political Idealism.

•Trade remain slow: Luxury Goods -Three main Reasons: : Countless Countless

obstacles, Primitive means of obstacles, Primitive means of transportation and Economic Policy.transportation and Economic Policy.

•Poor movement of production factors.

• Capital Movements were in principle free but defected monetary system. defected monetary system.

•French Revolution: Political event

History of EUHistory of EU

French Revolution

•Britain Leadership on the European Market.

•Eastern Europe: Growing Nationalism.Eastern Europe: Growing Nationalism.

•“Protection” and “Free Trade” central topic among politicians and Economist.

•1834 Germany Establish a Custom Union

•1842 Britain has to abolished the Legal Barriers enforced by Citizens.

•Europe Fast Economy Growth due to : Europe Fast Economy Growth due to : Industrialization and Technological Industrialization and Technological Advances. Advances.

History of EUHistory of EU

•Economic Integration spelled a way Economic Integration spelled a way to political unityto political unity: Germany, Austria and Italy.

•Specialization possible and desirable.

•Railways advances but needed to be liberalized to a high degree.

•River transport was liberalized.

•International Agreements ensured free navigation on the Rhine.

•Monetary Integration attempted in Monetary Integration attempted in this period (1868) . this period (1868) .

•Western Germany has considerable degree of internal monetary integration.

History of EUHistory of EU

•Unsuccessful Monetary Integration due Unsuccessful Monetary Integration due to some degree related to political union. to some degree related to political union.

•Peace in Europe three different initiatives were taken:

1. Monarchist and anti-revolutionary2. Philosophical and Visionary. 3. Republican and Democratic.

• 1870 Period of growth came to a sudden end: Depression, governments responded in a protectionist fashion.

• French-German war and the French-German war and the Italian struggle for unity had Italian struggle for unity had completely upset the situation. completely upset the situation.

• Tariffs and subsidy wars were fought between some countries.

History of EUHistory of EU

•National states impose Taxes and Customs Duties: protectionist and nationalism policies.

•Last part of 19Last part of 19thth century: Socialist century: Socialist International suggesting there is no gains International suggesting there is no gains from capitalists. from capitalists.

•Foundation of International Institutions: International Telecommunication Union (1865) Universal Postal Union (1874).

•1890 Abolition of Slavery.

•First World War: Process of disintegration effects in markets and policy

•The Peace Treaty of Versailles: Nations The Peace Treaty of Versailles: Nations right to self determinationright to self determination.

History of EUHistory of EU

•German Debt after First World War: Low prices and diminishing sales prospects on export markets.

•Unemployment, consolidated the protectionist tendencies reducing imports to half the pre war level, this led to a decrease of exports as well.

•Decrease of Capital movements.

•Monetary Policy most important area of Monetary Policy most important area of disintegration: Devaluationsdisintegration: Devaluations.

•““In order to cut the depression the In order to cut the depression the Second World War brought some Second World War brought some integration among members states of integration among members states of the same Political Blocs was the same Political Blocs was demanded”. Winston Churchilldemanded”. Winston Churchill

Founders

New ideas for lasting peace and prosperity…New ideas for lasting peace and prosperity…

Konrad Adenauer

Robert Schuman

Winston Churchill

Alcide De Gasperi

Jean Monnet

FoundersFoundersFounders

History of EUHistory of EU

On the 9th of May 19501950, Robert Schuman presented his proposal on the creation of an organized Europe, indispensable to the maintenance of peaceful relations.

This proposal, known as the "Schuman declaration", "Schuman declaration", is considered to be the beginning of the creation of what is now the EU.

Today, the 9th of May has become a European symbol (Europe Day).

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

History of EUHistory of EU

18 April 1951

Based on the Schuman plan, six countries sign a treaty to run their heavy industries under a common management. In this way, none can on its own make the weapons of war to turn against the other, as in the past.

The six are Germany, France, Italy, the Netherlands, Belgium and Luxembourg.

European Coal and Steel CommunityEuropean Coal and Steel Community ((ECSCECSC))

European Coal and Steel Community European Coal and Steel Community (ECSC)(ECSC)

The Schuman Declaration that created the ECSC had several distinct aims:

• Birth of a United Europe.

• Make War impossible between member states.

• Encourage World Peace

• It would transform Europe 'step by step''step by step' process leading to the unification of

Europe democratically, including both East and West Europe.

• Create the world's first supranational supranational institution

• Create a single market across the Community

• Revitalize the whole European economy by similar community processes

• Improve the world economy and the developing countries. Improve the world economy and the developing countries. Africa.

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

25 March 1957

Building on the success of the Coal and Steel Treaty, the six countries

expand cooperation to other economic sectors. They sign the TREATY OF TREATY OF

ROMEROME, creating the European Economic Community (EEC), European Economic Community (EEC), or ‘common

market’. The idea is for people, goods, capital people, goods, capital and servicesservices to move

freely across borders.

TREATY OF ROME

30 July 1962

The EEC starts its ‘‘COMMON AGRICULTURAL POLICYCOMMON AGRICULTURAL POLICY’ ’ giving the countries

joint control over food production. The EEC grows enough food for its needs and

farmers earn well. The unwanted side-effect is overproduction overproduction with mountains

of surplus produce. Since the 1990s, priorities have been to cut surpluses and

raise food quality

COMMON AGRICULTURAL POLICY

1 July 1968The six remove customs dutiescustoms duties on goods imported from each other, allowing allowing free cross-border free cross-border trade for the first time. They also apply the same duties on their imports from outside countries. The world’s biggest trading group is The world’s biggest trading group is bornborn. Trade among the six and between the EEC and the rest of the world grows rapidly.

24 April 1972The EU’s first plan for a single currency single currency dates from 1970. To maintain monetary stability, EU members decide to allow their currencies to fluctuate against each other only within narrow limits. This exchange rate mechanism (ERM), created in 1972 through the European Monetary System European Monetary System the, is a first step towards the introduction of the euro,euro, 30 years later.

1 January 1973The six become nine when Denmark, Ireland and the United Kingdom formally enter the EU.

1 January 1981Membership of the EU reaches double figures when Greece joins.

An organization established in Europe in 1979 to coordinate financial policy and exchange rates for the continent by running the Exchange Rate Exchange Rate Mechanism (ERM) Mechanism (ERM) and assisting movement toward a common European currency and a central European bank

European Monetary System (EMS)European Monetary System (EMS)

The Schengen Agreement is a treaty signed on 14 June 1985 near the town of Schengen in Luxembourg, between five of the ten member states of the European Economic Community.

25 European countries25 European countries, covering a population of over 400 million 400 million people and an area of 4,312,099 4,312,099 square kilometers square kilometers (1,664,911 sq mi)

Schengen Treaty Schengen Treaty

1 January 1986Spain and Portugal enter the EU, bringing membership to 12.

17 February 1986Although customs duties disappeared in 1968, trade is not flowing freely across EU borders.

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

European Single Act: The Single Market

The Single European Act (SEA) 1987 revises the Treaties of Rome in order to add new momentum to European integration and to complete the internal market.

It was necessary to conclude, on the one hand, a Treaty relating to common common foreign and security policy foreign and security policy and, on the other hand, an act amending the EEC Treaty,EEC Treaty, notably at the level of:

• Decision-making procedure within the Council;• Commission's Powers• European Parliament's Powers;• Extension of the Communities' Responsibilities.

Forces of Change and Resistance in 1980s Europe:

• Influence by also abroad forces of changes.

• European Community was facing the change of “Globalization” in the form of “Regime Competition”.

• Jaques Delors, was the incoming president of the European Commission who try to reverse by building a centralized, federal and state-directed Europe dedicated to the protection of the “European Social model”.

The United States and Globalization: Challenges To Europe

Globalization brings ideological, organizational, financial and technological dimensions.

The Expansion of World Trade in the 1970s brought:

1- Increase Cross-Border Capital Flows.

2- Advances in micro processing that reduced manufacturing costs, improved design and performance and stimulated product development.

3- Changes in America was the 3rd ingredient in Globalization!

If Europe do not change in combination with the United States it would have to become dependent of United States

!TINA !(There is not Alternative)

USA Reaganomics worked: Money Policy in 1983 applied by Volcker’s worked:

These theories hold the view that decreases in taxes, especially for corporations, is the best way to stimulate economic growth.economic growth.

• Cut down inflation• The tax cut marked the beginning of the “SEVEN FAT YEARS” “SEVEN FAT YEARS” of prosperity that followed. • Growth-steady.• Wages grew.• The number of Jobs Increased and everyone seemed to work harder. • The pace of innovation stepped up. • The development and application of new technologies brought wide-ranging change in social organization and values.

According to Reagan’s former director of the council of According to Reagan’s former director of the council of economic advisors, Mr. Martin Feldstein: economic advisors, Mr. Martin Feldstein:

“Much of our supply-side economics was a return to basic ideas about creating capacity and removing government impediments to

individual initiative that were central in Adam Smith’s Wealth of in Adam Smith’s Wealth of NationsNations, and in the writings of the classical economists of the

nineteenth century (that) has characterized most economic policy analysis during the past two hundred years”.

The European fear of American Financial takeover

Rapid American Growth due to foreign capital inflows and heavy investments by Europeans would present a daunting economic challenge to ancient ways. Retreat from change was impossible; nevertheless, ongoing pressure for adaptation would be applied both nationally and regionally.

1980s scenario: - Large-Scale waves on industrial and financial reorganization

- Unhappy accompaniment, massive unemployment.

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

7 February 1992

The Treaty on European Union is signed in Maastricht, but entered into force on 1 November 1993.

In this context, the Treaty of Maastricht responds to five key goals:

• Strengthen the democratic legitimacy of the institutions.• Improve the effectiveness of the institutions.• Establish economic and monetary union.• Develop the Community social dimension.• Establish a common foreign and security policy.

Treaty of Maastricht

1 January 1993The single market and its four freedoms are established: the free movement of goods, services, people and money is now reality.

1 January 1995Austria, Finland and Sweden join the EU.

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

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

2 October 1997

The Treaty of Amsterdam meant a greater emphasis on citizenship and the rights of individuals, an attempt to achieve more democracy in the shape of increased powers for the European Parliament.

Entered into force on 1 May 19991 May 1999; it made substantial changes to the Treaty on European Union, which had been signed at Maastricht in 1992.

Treaty of Amsterdam

Free to move

““Schengen”: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

© C

orbi

s

Free to moveFree to move

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

Treaty of Nice. OBJECTIVES

The Intergovernmental Conference which resulted in the Treaty of Nice had the very clear mandate of preparing the European Union for enlargement by revising the Treaties in four key areas:

• Size and composition of the Commission.• Weighting of votes in the Council.• Extension of qualified-majority voting.• Enhanced cooperation.

13 December 1997EU leaders agree to start the process of membership negotiations with 10 countries of central and eastern Europe: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia.

1 January 1999The euro is introduced in 11 countries (joined by Greece in 2001) for commercial and financial transactions only. Notes and coins will come later. Accomplishing EMU.

1 January 2002Euro notes and coins arrive. Printing, minting and distributing them in 12 countries is a major logistical operation. At the moment 16 countries use the Euro.

Eight countries of central and eastern Europe — the Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia — join the EU.

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

The EUROThe EURO – – a single currency for Europeans a single currency for Europeans

Treaty Of Lisboan

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

Treaty of LisbonIs an International agreement that amends the two treaties which comprise the constitutional basis of the EU. Signed on December 2007, and entered into force on December the first of 2009.

The Lisbon treaty - taking Europe into the 21st century

The Treaty would make the European Union:

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

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

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

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

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

Treaty of Lisbon

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

Isis Quinones 2009535001

What is the EU? What is the EU?

What is the Structure?What is the Structure?

The European Parliament- Voice of the People- Voice of the People Jerzy Buzek, President of of the European Parliament

The council of Ministers- - Voice of the Member StatesVoice of the Member StatesHerman Van Rompuy, President of the European Council

The European Commission- Promoting the Common Interest- Promoting the Common InterestJosé Manuel Barroso, Presidentof the European Commission

European Union Structure:

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

Free to move

““Schengen”: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

© C

orbi

s

Free to moveFree to move

European Parliament

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)

EU Institutions

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

How the EU works? How the EU works?

Policy Areas Policy Areas

Agriculture Audiovisual and media Budget Research and innovation

Competition Consumers Culture Transport Taxation Customs

Development and Cooperation Economic and monetary affairs

Education, training, youth Employment and social affairs

Energy Enlargement Enterprise Environment

External relations External trade

Fight against fraud Food safety Foreign and security policy

Humanitarian aid Human rights Information society

Institutional affairs Internal market Justice, freedom and security

Maritime affairs and fisheries Public health Regional policy

17

Major EU Duties:

1.Global Challenges: Peace, Security, Counterterrorism, Homeland

Security, Democracy, Human Rights, Development Assistant,

Humanitarian Relief.

2.Trade

3.Environmental Protection

4.Education & Research

5.Global Leadership : Transatlantic Relation

6.Dynamic Transatlantic Economy

Challenges: Challenges:

Demography: Europeans live longer, have fewer children Globalisation: European economy faces competition from other parts of the worldClimate change: Emission of greenhouse gases must come down

Solutions: Solutions:

European leaders have therefore agreed on a joint strategy for:

More research and innovationA more dynamic business environmentInvesting in peopleA greener economy

How 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

How rich is the EU compared to the rest How rich is the EU compared to the rest of the world?of the world?

Facts: Size of economies • Economic size distribution is VERY

uneven• 6 nations (Germany, the UK,

France, Italy, Spain and the Netherlands) account for more than 80% of EU27’s economy.

• Other nations are small, tiny or miniscule,

• ‘Small’ is an economy that accounts for between 1% and 3% of the EU27’s output

– Sweden, Belgium, Austria, Denmark, Poland, Finland, Greece, Portugal and Ireland.

• “Tiny’”is one that accounts for less than 1% of the total,

– Czech Republic, Hungary, Slovak Republic, Luxembourg, Slovenia, Lithuania, and Cyprus.

• “Miniscule” as one that accounts for less than one-tenth of one percent.

– Latvia, Estonia and Malta.

GDP, current prices, 2000

I

F

UK

Cyp

Lith

Sl

SR

Hu

CzPol

Lat

ABNL S DK Fin

D

E

MalEst

L

Gr P Ire

The budget: The budget: ExpenditureExpenditure

Cohesion Spending refers to Regions in Disadvantages, small economies.

The European flagThe European anthem

Europe Day, 9 MayThe motto: United in diversity

Isis Quinones 2009535001

The Crisis of the Welfare State and the

Challenge of Modernization in

1980s Europe: Country -Cases

Shift toward “less state” but also a shift toward a different kind of state. Feeling of different degree of forces.

Member states roles : Agent – Excuse (both) introduce hard to impose change.

Relationship between the EC and member state vary country to country so they must be study case by case basis.

The Crisis of the Welfare State and the Challenge of Modernization in 1980s Europe: Country -Cases

New Zealand Experiments:

Benchmark of European progress in the 1980s. Serve as a model for the Thatcherite Reform

Process:Process: -Deregulation of the financial sector .

- Creation of a legal and administrative framework to guide monetary, fiscal, and competition policy.

- Privatization of state owned companies and marketization of the government services “costless”

- Labor reform (last item in the agenda)

Valuable Lessons applicable to Europe could be learned from New Zealand experience:

-Imposing open financial markets, formidable disclosure requirements, and formal contractual relations with respect to monetary and fiscal policy, the reforms set constraints that future governments could not easily lift.  -Privatization, particularly of telecommunications yielded immediate and unsuspected payoffs.  -Fiscal Consolidation took rapid place 9% deficit turned into 10% surplus within 10 years.  -Intangibles as: “Credible Commitments” and “transparency” can produce immediate, demonstrable and widely recognize benefits.

Denmark Conserves:

Two different governments: Social Democratic which gave up and then came the Bourgeois government of Poul Schlulter. -1980s took a no accommodating policy, liberalizing only partially. - Inflation rates to high - Wage bargaining system - Decentralization of government services. -“Austerity” policy winning credibility in the Capital Markets bringing interest down.- Confronted labor directly. - Wages went down, unemployment remained high but declined, and growth resumed. - Deregulation of a Wage bargaining system - Employment raise.

Valuable Lessons applicable to Europe could be learned from Denmark experience:

-Cut spending as a percentage of GNP.

-Directed state enterprises to make profitability their goal, just privatized some of them.

-Lifted all restrictions on the movement of capital, including restraints on foreign direct investment.

-Centralized Wage Bargaining.

-Swedish productivity problem was the extensive tax and benefit wedge, or spread between employer costs and employee wages.

France Regroups:

- Offer subsidizes into modern sectors of industry.- Restored managerial autonomy.- Encouraged nationalized companies to sell off subsidiaries. - Launched the next great signal of reform –the Privatization, with the purpose of restore national competitiveness. - Emphasis in reducing the power of an over-mighty state.-“Enterprise as the source of national welfare”- Progress easily in the financial field: Top priority reform. - The creation of a functional financial market .

Isis Quinones 2009535001

Microeconomics Behind Microeconomics Behind the EU the EU

How does the EU affect Economic Well Being?How does the EU affect Economic Well Being?

Who Gains?Who Gains?

Who Loses?Who Loses?

And how do the gains compare to the losses?And how do the gains compare to the losses?

Price Before Trade

Price After Trade

A

B

C

D

Domestic Quantity Demanded

Domestic Quantity Supplied

  Before Trade After Trade ChangeConsumer Surplus A+B A - BProducer Surplus C B+C+D +(B+D)Total Surplus  A+B+C A+B+C+D + D

International Trade in FranceInternational Trade in FranceExporting Exporting

Quantity of Wines

Price of Wines

EXPORTS

Price Before Trade

Price After Trade

A

B

C

D

Domestic Quantity Demanded

Domestic Quantity Supplied

  Before Trade After Trade ChangeConsumer Surplus A A+B+D +( B+D)Producer Surplus C+B C -BTotal Surplus  A+B+C A+B+C+D +D

International Trade in FranceInternational Trade in FranceImporting Importing

Quantity of Wines

Price of Wines

IMPORTS

Price without tariff

Price with Tariff

A

C D

B

Q1S

  Before Tariff After Tariff Change

Consumer Surplus A+B+C+D+E+F A+B -(C+DE+F)

Producer Surplus G C+G +C

Government Revenue 0 E +E

Total Surplus  A+B+C+D+E+F+G A+B+C+D+E+G -(D+F)

The effects of a TariffThe effects of a Tariff

Quantity of Wines

Price of Wines

Q2S Q2D Q1D

FE

G

tariff

Equilibrium without trade

Isis Quinones 2009535001

CONCLUSIONSCONCLUSIONS

The European Union has accomplished :The European Union has accomplished :

1- Political Union 2- Economic Integration (due to technical progress, automation and mechanization).

This Economic Integration Process was stimulated by various factors:This Economic Integration Process was stimulated by various factors:

-Technical and Economical Factors (Rails, Transport advances, Tech., etc)-Strongly motivated to maintain PEACE in the continent. -Recover from World War II: Crisis are also motive for Success.

Until now the European Union has been the most dynamic example of Until now the European Union has been the most dynamic example of Economic Integration, extending both:Economic Integration, extending both:

-Field of Activities ( Foreign, Security, Justice Policies, Home Affairs, Defense, and European Citizenship and Economic Union)

-Field of Geographical Coverage: Starting with 6 member countries and having 27 members country at the moment.

FUTURE OF THE EU:FUTURE OF THE EU:

-Continuity Expansion Continuity Expansion

-Require of more POLITICAL ENERGY Require of more POLITICAL ENERGY

-Budget Increment : Actual 1 % of GDPBudget Increment : Actual 1 % of GDP

-No country has the possibility of block Progress: Door to Exit Cases ?No country has the possibility of block Progress: Door to Exit Cases ?

-More Democracy : Establishment of Clear Conditions (Marginal Aspect)More Democracy : Establishment of Clear Conditions (Marginal Aspect)

-Order Restoration of Unanimity Order Restoration of Unanimity

-Constitutional Treaty Constitutional Treaty

¿

!Lessons learnt from the !Lessons learnt from the European Union ! European Union !