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Copyright 2006 – Biz/ ed

The European Union 1

All photographs and graphics courtesy of European Commission Audiovisual Libraryhttp:/ / europa.eu.int/ comm/ mediatheque/ photo/ index_ en.html

History of the European Union (EU)• 1948 – Organization for European

Economic Cooperation (OEEC) founded to administer U.S. Marshall Plan

• 1957 – Treaty of Rome established European Economic Community (EEC)

• 1967 – European Community (EC) established

History of the European Union (EU)• 1991 – The Maastricht Treaty – laid

down main elements for future European gov’t

• Single currency, common foreign & security policy, common citizenship, & an EU parliament with more extensive powers

• Ratified in 1993 – called it the EU

Political Institutions• 1. EU Parliament – 786 by 2009

(directly elected by pop.)• Based in France, Belgium, and

Luxembourg• EU Parl. passes laws, monitors budget,

& monitors EU institutions• 2. EU Council – ministerial

representations from each member state

Political Institutions• Council passes laws, approves EU

budget, coordination of economic policies, develops foreign policy, and coordinates anti-crime strategies

• 3. EU Commission – 20 commissioners appointed by each member state every 5 years (over 21,000 employees)

• Proposes legislation, implements EU policies, law enforcement, international coordination

Financial Institutions• 1. European Central Bank –

inflation target of less than 2% per year, sets short term interest rates for the whole eurozone area

• Implements and monitors Eurozone monetary policy

• 2. European Investment Bank – “owned” by member states

Financial Institutions• Raise finance through financial

markets

• Invest in projects to promote aims of EU – large-scale projects

• 3. Court of Auditors – monitors legality and efficiency of EU income & expenditure

Judicial Institutions• Court of Justice – one judge from

each member state

• Interprets and applies EU legislation

• The Commission or a member country can bring other member countries or the Commission to the court for failing to meet treaty obligations

EU Activities• Long list includes agriculture,

fisheries, environment, regions, finance/economics, aid, employment, energy, etc.

• CAP – Common Agricultural Policy – food quality, food safety, animal welfare, farmer welfare/incomes, employment in agriculture

Activities

Finance/Economics• Euro – monitor introduction &

development• Tax harmonization – reduce

differences in taxes throughout the single market to aid competition & transparency

• Single Market – free movement of goods, services, labor, & capital between member states

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Copyright 2006 – Biz/ ed

Eurozone 2001

Members of the Eurozone, 2001. UK, Denmark and Norway currently outside the zone

Council Voting Methods

• UNANIMITY – used to be the main voting method; used in matters exclusive to the justice & home affairs & common and foreign security policy

• Certain financial and constitutional matters also require unanimity as do some legislative procedures

Council Voting Methods

• SIMPLE MAJORITY – each member state has one vote & a simple majority of 8 is required

• Restricted mainly to minor procedural matters & to certain measures covered by the Common Commercial Policy (about tariffs)

Council Voting Methods

• QUALIFIED MAJORITY VOTING (QMV) – each state is given a number of votes, roughly in proportion to population

• Covers broad range of policy decisions

• Adoption of acts requires 62 votes (out of 87 total or 71.3%) in favor, cast by not less than 10 member states

Community Legislative Instruments

• REGULATIONS – decisions which have direct legal force in member states with immediate effects

• Mostly concerned with technical decisions, particularly relating to CAP

• Binding in their entirety and directly applicable

Community Legislative Instruments

• DIRECTIVES – set out principles of legislation, but left up to member states to implement through national law

• Time limit left to do this is usually 2-3 years

• Once passed into national law, they are binding & expected to have same results in member states that apply

Community Legislative Instruments

• DECISIONS – similar to regulations but addressed to governments, undertakings, or individuals

• RECOMMENDATIONS and OPINIONS – not binding; used to provide additional information on specific issues