EU-15: The

existing Member States…

…and 13 Candidate countries

Map: European Commission

• 1958 - Customs Union Common Market

• 1992 - Single Market• 1993 - European Union• 1999 - Eurozone• 20?? – Political union?

What is the EU?

• Economic aims prevail in founding treaties

• Majority of Community legislation and Commission powers initially in economic areas

• Major projects are often of an economic nature: Common Market, Euro, etc

• ECSC economic in nature, but politically motivated• Treaty of Rome calls for “an ever closer Union” between the peoples of Europe: politically motivated• Maastricht Treaty added dimension of Political Union• EU constitution debate• Economic integration as a means to an end, not an end in itself

Economic or Political?

Political integration as a spill-over from economic integration Primary aim of European integration: safeguard peace and prosperity in Europe

• Framework for cooperation• Rules - decided by States• EU on the world stage

• Foreign and Defence policy

• Common policies• Community legislation • Single Market and EMU• Regional and structural funding • EC – EU

What does the EU do?

374.2

301

268

126.2

0

50

100

150

200

250

300

350

400

EU-15 Eurozone USA Japan

Population(million inhabitants)

323620

937260

37780

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

EU-15 USA Japan

Surface areain 1000 ha

Share of world GDP (in %)

20

218

23

49

Rest of the WorldEU-15

Eurozone

JapanUSA

GDP per capita(at market prices PPS)

21200

24770

2287421131

EU-15

Eurozone

Japan

USA

19.118.2

16.3

23.1

9.8

6.7

0

5

10

15

20

25

EU-15 USA Japan

ExportsImports

Share of world trade in %

3120

1560

1040

520

0

500

1000

1500

2000

2500

3000

3500

Mill

ion

€

EU total Phare ISPA SAPARD

Financial assistance for Central and Eastern Europe

(Pre-accession assistance)*

* EC programmes excluding bilateral aid

• Common Policies (e.g. agricultural, social, commercial, environmental, competition, development, etc.)

• Monetary Union• Citizenship of the Union

• All areas of foreign policy• European Security and Defence Policy

• Asylum and Immigration• External border control• Judicial cooperation• Police cooperation and Europol

European Community

Common Foreign and

Security Policy

Justice and Home Affairs

European Union

• End of World War II– Marshall aid for Europe linked to the condition of international

cooperation in Europe

• 1950: Schuman Plan– France and Germany pool their coal and steel resources under a

single supranational framework: European Coal and Steel Community (ECSC)

• New markets for German heavy industry • More coal and steel supply for France• Joint control of war-relevant branches industry increased transparency

and reduced mutual fear

– Italy, The Netherlands, Belgium and Luxembourg joined, too– “High Authority” of the ECSC predecessor of today’s

Commission

• 1952-54: European Defence Community fails to materialise, but economic cooperation succeeds

History of European Integration

• 1958: The Founding Treaties– Success of ECSC prompts members to extend cooperation to all areas of the

economy– Treaty establishing the European Economic Community

• Creation of a customs union and, subsequently, a single market by 1970– Euratom: Cooperation in matters of nuclear energy– ECSC Treaty continuedCreation of the European Economic Community (EEC)

• 1968: Werner plan suggests monetary union by 1980• 1969: The Hague summit

• Council confirms extraordinary success in setting up common market, further integration decided

• 1973: First enlargement: the UK, Ireland and Denmark join the EEC

• 1973/4: Economic crisis, EEC development in stagnation, plans for monetary union abandonned

History of European Integration

• 1974: European Council begins to meet informally, European Political Cooperation launched to coordinate foreign policies (outside the Treaty Framework)

• 1979: European Monetary System and Exchange Rate Mechanism set up• 1979: First direct election of the European Parliament• 1981: Second enlargement: Greece joins EEC• 1981-85: Revival of European integration dynamics: Genscher-Colombo

plan, Solemn declaration on European Unity, Spinelli draft Treaty on European Union

• 1984: Fontainebleau Council resolves British budget crisis: “I want my money back” (Margaret Thatcher)

• 1985: Commission White Paper on “Completing the Single Market” suggests some 300 measures to be implemented by 1992

• 1985: Schengen agreement (abolishing border controls within EEC) • 1985: Delors Commission takes office• 1986: Third enlargement: Spain and Portugal join the EEC

History of European Integration

• 1986: First Treaty revision: the Single European Act– Creation of the European Community by merging the three separate

Communities– Formal recognition of European Council as EC institution– First mention of foreign policy competence for EC– More powers for the European Parliament

• 1989: European Council lays basis for monetary union• 1989-91: Iron curtain opened, revolutions in Central and Eastern Europe

and German re-unification change political and security situation in Europe almost overnight,

• 1990-91: EC opts for “widening before deepening”: Two Intergovernmental Conferences prepare moves towards monetary and political union and conclude by signing the Maastricht Treaty

• 1991: First “Europe Agreements” signed with Central and Eastern European Countries, all of which applied for EU membership between 1990 and 1996

• 1992: Single Market virtually completed

History of European Integration

• 1993: Maastricht Treaty enters into force – European Union – Monetary Union– Common Foreign and Security Policy (CFSP)– Cooperation in Home and Justice Affairs– European Parliament gains co-decision and blocking powers

• 1994: European Monetary Institute begins operating • 1995: Fourth enlargement: Sweden, Finland and Austria join the EU• 1995: New Commission under Jacques Santer• 1995: Schengen agreement enters into force between 7 countries• 1997: Amsterdam Treaty signed

– Institutional reform largely postponed– Amendment and extension of procedures for CFSP– New IGC before wide enlargement

• 1998: Accession negotiations opened with Cyprus, the Czech Republic, Estonia, Hungary, Poland and Slovenia

• 1998: European Central Bank operational, participants of EMU identified

History of European Integration

• 1999: Final stage of monetary union: Euro introduced and exchange rates fixed between 11 participating countries.

• 1999: Santer Commission resigns over maladministration scandals• 1999: Berlin European Council agrees financing arrangements for 2000 – 2006

(Agenda 2000), allowing for the possibility of eastern enlargement. Romano Prodi invited to head new Commission

• 1999: Helsinki Council decides to open accession negotiations with remaining candidate countries

• 2000: Lisbon European Council sets aim of becoming the most competitive knowledge-based economy in the world

• 2000: Nice Treaty– Institutional arrangements for an enlarged EU– Important issues left unresolved and to be dealt with during the “post-Nice process”

• 2001: Greece becomes 12th country to participate in EMU• 2001: Ireland rejects ratification of Nice Treaty• 2001: EU decides to strengthen justice and police cooperation after 11 September• 2001: Laeken European Council adopts Declaration on the future of Europe and

convenes a Convention on the Future of Europe• 2002: Monetary Union completed: Euro coins and notes introduced

History of European Integration