The European Union

The European Union (EU) is unique in the international system.

Some characteristics of an international organization. Created through treaties among sovereign

states Many functions of a state

Provides a greater number of public goods and enforces a wider range of more detailed contracts than any other IO in the modern era

The land area is slightly less than half of the United States.

The EU has about 460 million citizens, just over 1.5 times the US population.

1953: Belgium, France, Germany, Italy, Luxembourg, Netherlands

1973: Denmark, Ireland, United Kingdom 1981: Greece 1986: Portugal, Spain 1995: Austria, Finland, Sweden 2004: Cyprus, Czech Republic, Estonia, Hungary,

Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia 2007: Bulgaria 2013: Croatia http://

europa.eu/about-eu/countries/member-countries/index_en.htm

1944: Anti-Nazi resistance movements call for “federal union of European peoples” after the war

1948: Transnational NGO, International Committee of the Movements for European Unity, holds international congress

1948 - US supports creation of Organization of European Economic Cooperation to administer Marshall Plan aid

1949 - Council for Mutual Economic Assistance- COMENCON founded for economic cooperation and integration among USSR and its satellites

Coal and steel producing regions of Alsace-Lorraine part of frequent wars between France and Germany

Economic production devastated by WWII 1951 - European Coal and Steel

Community eliminated trade barriers on coal, steel, and iron ore

Explicitly intended as first step towards a “European federation indispensable to the preservation of peace”

The EU gradually evolved through a series of treaties.

1951: European Coal and Steel Community (ECSC) 6 members: Belgium, West Germany,

Luxembourg, France, Italy and the Netherlands. 1957: Treaties of Rome were signed,

creating European Atomic Energy Community (EURATOM) the European Economic Community (EEC).

Removal of all intra-European tariffs to form common market and customs union (common external tariffs)

1967: The ECSC, EURATOM, and EEC merged.

1985: Single European Act Removal of all non-tariff barriers to mobility of

people, goods, services, and capital

1992: Treaty of Maastricht Makes the EEC into the European Union Cooperation on defense, justice, and domestic

policy

2002: Common currency, the Euro, introduced in twelve member countries UK, Denmark, and Sweden opt out.

2003: The Treaty of Nice Expands qualified majority voting (limits

states’ veto power) 2004: Ten new states from eastern

Europe, including former Soviet republics, join the EU. Before joining, new members must adopt and

adjust to body of EU law (acquis communautaire).

Legislative Branch European Parliament (popularly elected but

little power) Council of Ministers (represents national

governments) Executive Branch

European Commission (main bureaucracy) Council of Auditors (budget) European Central Bank (monetary policy)

Judicial Branch European Court of Justice (reviews national

law)

EU directives are proposed by the Commission and approved by the Council of Ministers.

National governments then pass their own laws to implement the directive.

EU regulations are directly binding. Basic regulations come from the Council of

Ministers. Executive regulations come from the Commission.

ECJ can hear complaints from the Commission or member states if a member does not implement EU law.

Trade policy No tariffs with EU, common tariffs with other

trading partners Collective negotiation in WTO

Competition policy Limitation on monopolies, etc.

Monetary policy Single interest rate from Central Bank Requires constraints on taxation, spending,

deficits

Consumer health & safety regulations Harmonized rules allow for economies of scale

Free movement of people Citizens of EU states can travel & work in

other EU states without visas or passports Police cooperate in tracking across borders Does not fully include UK, Ireland, or 10 new

members Some free movement suspended after

terrorist attacks on London 2005

Foreign and security policy Ireland, Austria, Finland, Sweden are neutral Must compete with NATO for relevance So far, mostly focused on humanitarian

intervention Division over 2003 US invasion of Iraq

Negotiated between member states in 2004 Intended to simplify institutional structure Necessary for further expansion Creates President and Foreign Minister of EU

5/29/2005 – Rejected by referendum in France

6/1/2005 – Rejected in Netherlands

US security guarantees after WWII freed European states from concerns about relative gains.

Enlargement locks in Eastern Europe against future Russian encroachment.

Classical realists: Integration will collapse in the absence of US guarantees.

Neo-realists: European states will ally to balance against US unipolarity. Does not require deep integration

European integration was intended to Create wealth Make war between European states too costly

to contemplate Enlargement expands the markets and

allows for further specialization. European integration will continue as

long as there are efficiency gains to be made by supranationalizing policy. Often requires side-payments/issue linkage

An attempt to create a common identity. Flag created in 1955 Anthem adopted in 1972 (Beethoven’s “Ode to Joy”)

Enlargement expands the EU to include all of the region of shared history and identity. Turkey, a Muslim state, is “Other”, so may never join

Integration continues through development of European identity, particularly in elites.