The European Union

From Europe to the Euro

Euro Challenge 2010 Student OrientationMiami, December 2, 2009

The European Union

Celebrating the European Union:A Half Century of Change and Progress

• Since the creation of the EU half a century ago, Europe has enjoyed the longest period of peace in its history.

• European political integration is unprecedented in history.

• EU enlargement has helped overcome the division of Europe – contributing to peace, prosperity, and stability across the continent.

• A single market and a common currency conditions for companies and consumers.

• EU has united the citizens of Europe – while preserving Europe’s diversity.

European UnionUnited in diversity

The European Union

What is the European Union?

• Shared values: liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law.

• Largest economic body in the world.

• World’s most successful model for advancing peace and democracy.

• A unique institution – Member States voluntarily cede national sovereignty in many areas to carry out common policies and governance.

• Not a super-state to replace existing states, nor just an organization for international cooperation.

• World’s most open market for goods and commodities from developing countries.

27

7.5

30

500million

Member States

Combined population of

EU Member States

Percent of world’spopulation

Percent of global GDP

60Percent of combinedworldwide OfficialDevelopment Assistance

The European Union

1951:

• In the aftermath of World War II, the aim was to secure peace among Europe’s victorious and vanquished nations and bring them together as equals, cooperating within shared institutions.

• Based on a plan by French Foreign Minister Robert Schuman.

• Six founding countries – Belgium, the Federal Republic of Germany, France, Italy, Luxembourg and the Netherlands – signed a treaty to run heavy industries (coal and steel) under common management.

European Coal and

Steel Community

Jean Monnet and other leaders with the first “European” ingot of steel

The European Union

Regional Integration (Theory)

• From Free Trade Area (FTA): the elimination of tariffs

– for goods and services within region (NAFTA)

• via Customs Union: an FTA with a common external tariff (EEC)

• to Single Market/Economic Union:

– Eliminating all tariff and non-tariff barriers

– Free circulation of goods, services, labor and capital (“Four Freedoms”)

– “Harmonization” of regulation

– May also have common currency (Monetary Union: Euro)

The European Union

Treaty of Rome

• The six founding countries expanded cooperation to other economic sectors, creating the European Economic Community (EEC) – or “common market.”

• As a result, people, goods, services, and capital today move freely across the Union (“The Four Freedoms”).

1957:

Signing of the Treaty of Rome

The European Union

1951

Founding Members

BelgiumFrance

GermanyItaly

LuxembourgNetherlands

The European Union

1973

DenmarkIreland

United Kingdom

The European Union

1981

Greece

The European Union

1986

PortugalSpain

The European Union

November 1989

Fall of theBerlin Wall

sets thestage forunifying

Europe andEU

enlargement

The European Union

1995

AustriaFinlandSweden

The European Union

2004

CyprusCzech Republic

EstoniaHungaryLatvia

LithuaniaMaltaPoland

SlovakiaSlovenia

The European Union

2007

BulgariaRomania

The European Union

Candidate Countries

Croatia

Former Yugoslav Republic of Macedonia

Turkey

Potential

Candidate Countries

Albania

Bosnia & Herzegovina

Iceland

Montenegro

Serbia including Kosovo under UN Security Council

Resolution 1244

The European Union

EU InstitutionsEuropean Commission

• 27 Commissioners, representing the European perspective, each responsible for a specific policy area.

• EU’s executive branch proposes legislation, manages Union’s day-to-day business and budget, and enforces rules.

• Negotiates trade agreements and manages Europe’s multilateral development cooperation.

Council of the EU (Council of Ministers)

• EU’s main decision-making body, comprised of ministers of 27 Member States, representing Member State’s point of view.

• Decides on foreign policy issues.

• Council presidency rotates among Member States every six months.

European Commission President José Manuel Barroso

The European Union

EU InstitutionsEuropean Parliament

• Voice of European citizens – members elected for five-year terms.

• With the Council, passes EU laws and adopts EU budgets.

• Approves EU Commissioners.

European Court of Justice

• Highest EU judicial authority.

• Ensures all EU laws are interpreted and applied correctly and uniformly.

• Can act as an independent policy maker and overrule national law in areas (economy, agriculture) covered by the Treaties.

European Parliament in session

The European Union

The €uroIn 1999, the euro area was established as a currency in eleven of the then fifteen EU Member States.

Of the 27 EU Member States today, sixteen have adopted the euro.

Benefits of a single European currency include price stability, elimination of exchange rate risks, low interest rates due to a high degree of price stability.

The euro is as stable and credible as the best-performing currencies previously used in the euro area countries.

€

€

€

€

The European Union

United in Diversity - The €uro

Cyprus Malta Slovakia

The European Union

European Central Bank

• The European Central Bank (ECB) is the central bank for Europe's single currency, the euro.

• The ECB’s main task is to maintain the euro's purchasing power and thus price stability in the euro area.

• The euro area comprises the 16 European Union countries that have introduced the euro since 1999.

• The ECB operates independently from Member State governments.

The European Union

Treaty of LisbonTaking Europe into the 21st Century

2007

The European Union

• A More Democratic and Transparent Europe

• A More Efficient Europe

• A Europe of Rights and Values, Freedom,

Solidarity and Security

• A More Visible Europe on the Global Stage

The Treaty of Lisbon at a Glance

The European Union

The Treaty of Lisbon at a Glance• A More Democratic and Transparent Europe

- A strengthened role for the European Parliament

- Greater involvement by national parliaments

- Decision-making of the Council must now be open to public

- A Citizens' Initiative

- Clearer categorization between Member State and EU competences

- Explicit recognition of a Member State’s right to withdraw from the Union

European Parliament

The European Union

The Treaty of Lisbon at a Glance

• A More Efficient Europe

- Decision making based on a double majority system from 2014 (vote can only be carried by 55% of Member Countries who must represent at least 65% of EU’s population)

- More Actions to be decided by majority voting in the Council

- New full-time President of the European Council to give more coherence to EU actions

- Improvement in the ability of the EU to act more swiftly in policy areas such as freedom, security and justice

The European Union

The Treaty of Lisbon at a Glance• A Europe of Rights and Values, Freedom,

Solidarity and Security

- Democratic values: Reinforcement of the values and objectives on which the European Union is built

- Guarantee of the freedoms and principles in the Charter of Fundamental Rights

- Solidarity between Member States in the event of a terrorist attack or natural or man-made disaster

- Extended capacity to act on freedom, security and justice including the fight against crime and terrorism

The European Union

The Treaty of Lisbon at a Glance

• A More Visible Europe on the Global Stage

- A new High Representative for the Union in Foreign Affairs and Security Policy

- A new European External Action Service

- A single legal personality for the Union

- Progress in European security and defense policy

The European Union

The European Union and the United States

“America has no better partner than Europe. Now is the time to build new

bridges across the globe as strong as the one that bound us across the

Atlantic. Now is the time to join together, through constant cooperation,

strong institutions, shared sacrifice, and a global

commitment to progress, to meet the challenges of

the 21st century.”

President Barack Obama

“The relationship between the United States and Europe is the world’s

strongest, most comprehensive, and

strategically important partnership. The United

States, and a united Europe – this is really the

indispensable partnership.”

President of theEuropean Commission José Manuel Barroso

The European Union

Partners in Global Leadership

• EU and U.S. work together to develop international standards:

– Fighting terrorism and transnational crime

– Advancing global trade liberalization

– Combating piracy and intellectual property violations

– Spreading benefits of globalization

• EU and its Member States are helping restore peace and stability in Afghanistan.

• EU and U.S. work together in the Middle East Quartet to advance the peace process.

• When the EU and U.S. agree, others tend to follow.

EU Commissioner for External Relations Benita Ferrero-Waldner and US Secretary of State Hillary Clinton

The European Union

Shared Values and Responsibilities

• Freedom & DemocracySupport free elections, good governance, human rights, and the rule of law around the world.

• SecurityCooperate to fight terrorism, limit the spread of nuclear weapons, and work for global peace.

• DevelopmentTogether, EU and U.S. provide 80% of global development assistance and an even larger share of global humanitarian aid in times of disaster and conflict.

The European Union

A Dynamic Transatlantic Economy

• EU and U.S. together account for 40% of total global trade (more than $1.5 billion in transatlantic trade every day).

• The $3.75 trillion EU-U.S. transatlantic economy employs 14 million workers on both sides of the Atlantic.

• Since 2001, Europe has accounted for roughly two-thirds of total global investment flows into the U.S. – by far the most significant source of foreign investment in the U.S. economy.

The European Union

• European companies are the leading foreign investors in the U.S.

– The UK, Germany, France, and the Netherlands – top four sources of jobs created by foreign investment in the United States.

• American companies invest far more in EU countries than in Asia.

– U.S. investment in India is half of American investment in Sweden and roughly the same as in Poland, the Czech Republic, and Hungary

– Between 2000 and 2008, US firms invested $26.4 billion in China, less than U.S. investment in Belgium and less than half of American investment in Ireland

BMW’s assembly plant is South Carolina’slargest private sector employer.

The European Union