Modern Europe: The EU Modern Europe: The EU and Euro and Euro

What IS the EU?What IS the EU?

In-between a nation-state and inter. Org?In-between a nation-state and inter. Org? It is NOT: a federation (USofE); a It is NOT: a federation (USofE); a

confederation; a “super-sate”; a small UN confederation; a “super-sate”; a small UN Core Purpose = Free Trade Area (agr., Core Purpose = Free Trade Area (agr.,

import/export, food, labor, ) import/export, food, labor, ) No defense or taxes?No defense or taxes? ““EU is an economic giant, a foreign policy EU is an economic giant, a foreign policy

dwarf, a military worm”dwarf, a military worm”

Who drives the EU?Who drives the EU?

MerkozyMerkozy? Germany and France? Germany and France

Post Cold War EuropePost Cold War Europe Europe was devastated by WWI, WWII, the Europe was devastated by WWI, WWII, the

Holocaust and the Cold War.Holocaust and the Cold War. These events continue to haunt and shape These events continue to haunt and shape

Europe’s global outlook:Europe’s global outlook: Focus on Focus on multilateral solutions multilateral solutions (NATO; United (NATO; United

Nations; Kyoto Treaty; ICC) to global issuesNations; Kyoto Treaty; ICC) to global issues Force as an absolute last resort (not ALL of Europe Force as an absolute last resort (not ALL of Europe

agrees)agrees) ““Humane Capitalism”: stronger socialist influence Humane Capitalism”: stronger socialist influence

on economyon economy Recently, Europe and the United States have Recently, Europe and the United States have

faced growing differences in their approaches to faced growing differences in their approaches to the issues confronting the world, ex: environment, the issues confronting the world, ex: environment, globalization, terrorism, human rights, etc….globalization, terrorism, human rights, etc….

The European Union: Towards a The European Union: Towards a United States of Europe? United States of Europe?

19571957: 6 Nations (Germany, France, Italy, : 6 Nations (Germany, France, Italy, Belgium, Netherlands, and Luxembourg) Belgium, Netherlands, and Luxembourg) form the European Economic Communityform the European Economic Community

Nov. 9th 1989Nov. 9th 1989. the Berlin Wall is breached. the Berlin Wall is breached October, 1990October, 1990: West and East Germany are : West and East Germany are

unifiedunified 19921992: The Maastricht Treaty is signed : The Maastricht Treaty is signed

creating the European Unioncreating the European Union 19981998: European Central Bank is created: European Central Bank is created 20022002: Euro currency is introduced (no : Euro currency is introduced (no

Britain)Britain)

Ever Closer Union?Ever Closer Union? 20042004: EU expands by ten nations in Eastern : EU expands by ten nations in Eastern

Europe (former communist) to 25 membersEurope (former communist) to 25 members 20052005: Voters in France and the Netherlands : Voters in France and the Netherlands

reject the EU Constitution; big blow to “ever reject the EU Constitution; big blow to “ever closer union”closer union”

20052005: Turkey begins negotiations to join the : Turkey begins negotiations to join the EU; several nations oppose their entryEU; several nations oppose their entry

20072007:: Romania, Bulgaria join EU (not really Romania, Bulgaria join EU (not really ready)ready)

20102010: Euro crisis over Greek and Irish debt: Euro crisis over Greek and Irish debt 2011-20122011-2012 crisis continues; massive bail outs of crisis continues; massive bail outs of

several nationsseveral nations

So…What’s up with the Euro?So…What’s up with the Euro?

A monetary (same $) union; not a fiscal A monetary (same $) union; not a fiscal one (not same tax/spend policy)one (not same tax/spend policy)

Germany dominates; but worries about ; but worries about inflation; makes it hard on ECB to print inflation; makes it hard on ECB to print moneymoney

Euro allowed more of Europe Euro allowed more of Europe to “get rich” to “get rich” (esp: Greece; Portugal, Ireland, Spain) so (esp: Greece; Portugal, Ireland, Spain) so they can buy more (German?) stuffthey can buy more (German?) stuff

Lower interest rates!; cheap credit!Lower interest rates!; cheap credit!

So…what’s up with Greece?So…what’s up with Greece? Turns out Greece (and others) did not tell truth Turns out Greece (and others) did not tell truth

to Germany and France in 1999-2000to Germany and France in 1999-2000 When truth comes out; banks and bond traders When truth comes out; banks and bond traders

freak out (ex: freak out (ex: PIMCOPIMCO; ; What is PIMCOWhat is PIMCO?)?) New dilemma? Kick Greece out? Get rid of New dilemma? Kick Greece out? Get rid of

Euro? Create mini-EU’s? North Euro vs. South Euro? Create mini-EU’s? North Euro vs. South Euro ? Ever closer political Union?Euro ? Ever closer political Union?

EU = “EU = “may not work in theory; but does in may not work in theory; but does in practicepractice””

EURO= does not work as is; must reform…but EURO= does not work as is; must reform…but how? No one agrees…how? No one agrees…

Reinheitsgebot and Casu marzuReinheitsgebot and Casu marzu

Examples of EU vs. National LawExamples of EU vs. National Law

The Four Core Institutions of the The Four Core Institutions of the European Union: European Union:

The Council of MinistersThe Council of Ministers (the most powerful): the (the most powerful): the “Congress” of Europe; meets in Brussels; “Congress” of Europe; meets in Brussels; representatives of all EU nations vote and create EU representatives of all EU nations vote and create EU legislationlegislation

The European CommissionThe European Commission (the engine of (the engine of integration; the “Eurocrats”): the other “Congress” of integration; the “Eurocrats”): the other “Congress” of Europe; dominated by the Big 5 (France, Germany, Europe; dominated by the Big 5 (France, Germany, Italy, Spain, Britain) each having two commissioners Italy, Spain, Britain) each having two commissioners and other nations one; works on executive AND and other nations one; works on executive AND legislative issues (implementation and regulation)legislative issues (implementation and regulation)

The European Court of JusticeThe European Court of Justice: each nation sends a : each nation sends a judge for renewable six year terms; hears cases judge for renewable six year terms; hears cases dealing with EU law and policydealing with EU law and policy

The European ParliamentThe European Parliament (most democratic and (most democratic and weakest): the 3rd “Congress”; meets in Brussels and weakest): the 3rd “Congress”; meets in Brussels and Strasburg; MEPs are elected directly by the people of Strasburg; MEPs are elected directly by the people of the EU nationsthe EU nations

How EU Gov. Works (short How EU Gov. Works (short version)version)

European Parliament

The EU institutions

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)

Issue: Loss of National Sovereignty?

Key EU Issues:Key EU Issues: 1) 1) Conflict and confrontation (Conflict and confrontation ( ALL ABOUT ALL ABOUT

NATONATO)) 19911991: Europe and NATO participated heavily in the : Europe and NATO participated heavily in the

first Gulf War (first Gulf War (particularly Great Britain and Franceparticularly Great Britain and France)) 1992-19951992-1995: However, they : However, they failed to prevent the failed to prevent the

escalating conflict in the Balkans over the escalating conflict in the Balkans over the devolution of Yugoslavia devolution of Yugoslavia (The Dutch received harsh (The Dutch received harsh criticism for their failure to stop a mass killing by criticism for their failure to stop a mass killing by Serbs vs. Bosnians in SrebrenicaSerbs vs. Bosnians in Srebrenica))

19991999: : NATO (w/German troops for the first time) NATO (w/German troops for the first time) begins an air war vs. Serbia over Kosovobegins an air war vs. Serbia over Kosovo))

20012001: NATO sends over 10,000 troops to : NATO sends over 10,000 troops to Afghanistan; they lead peace-keeping efforts thereAfghanistan; they lead peace-keeping efforts there

1999 and 20021999 and 2002: : NATO expands to include former NATO expands to include former Warsaw Pact nationsWarsaw Pact nations

Conflict cont… Conflict cont… 2003: Europe divided over Iraq invasion2003: Europe divided over Iraq invasion March 2004: Madrid terror bombingsMarch 2004: Madrid terror bombings June 2005: London terror bombingsJune 2005: London terror bombings 2005-2011: Europe plays “good cop” to USA’s “bad 2005-2011: Europe plays “good cop” to USA’s “bad

cop” in conflict overcop” in conflict over Iran and nuclear materials Iran and nuclear materials 2007-2011: EU NATO members worried over US 2007-2011: EU NATO members worried over US

pressure increase troop levels in Afghanistan; now pressure increase troop levels in Afghanistan; now begin withdrawalsbegin withdrawals

2011-2012: Europe (GB; France; Italy) leads the 2011-2012: Europe (GB; France; Italy) leads the way in bombing campaign to overthrow Libyan way in bombing campaign to overthrow Libyan dictator Qaddafidictator Qaddafi

Overall; European defense budgets are being Overall; European defense budgets are being slashed….making USA slashed….making USA

The “Faces” of Europe's The “Faces” of Europe's Extreme Right WingExtreme Right Wing

EU Key IssuesEU Key Issues 22) ) Immigration: How much is too Immigration: How much is too

manymany?? Europe is seeing a huge influx of people Europe is seeing a huge influx of people

from from North AfricaNorth Africa, the , the Middle EastMiddle East, , sub-sub-Saharan AfricaSaharan Africa, , Asia and the former USSRAsia and the former USSR

½ mil½ mil. Illegal and . Illegal and ¾ mil¾ mil. Legal a year. Legal a year This is giving rise to increasing numbers of This is giving rise to increasing numbers of

nationalist, right-wing conservative political nationalist, right-wing conservative political partiesparties; for example:; for example:

France: The National Front; Netherlands: France: The National Front; Netherlands: List List Pim FortuynPim Fortuyn; Germany: National ; Germany: National Democratic Party; Britain: British National Democratic Party; Britain: British National Party; Austria: Party; Austria: Jorg Heider’sJorg Heider’s Freedom Party Freedom Party

Not un-Common Opinion Not un-Common Opinion among European conservativesamong European conservatives

"The social order of Islam is opposed to our Western values. Human rights and democracy are as incompatible with the Muslim religious doctrine as is the equality of women. In Islam, the individual and his free will count for nothing; faith and religious struggle – jihad, the holy war – for everything.” Jorg Haider- Austrian Freedom party

EU ImmigrationEU Immigration However, most of these groups However, most of these groups

usually receive less than 5-10% of any usually receive less than 5-10% of any national vote; but in 2002 national vote; but in 2002 Jean-Marie Jean-Marie Le PenLe Pen (France) won 20% of the vote (France) won 20% of the vote

Many European nations are having Many European nations are having difficulty integrating new immigrants difficulty integrating new immigrants (especially Muslims) into their society;(especially Muslims) into their society;

2005: 2005: Massive riots hit immigrant Massive riots hit immigrant communities in Francecommunities in France

Story of Story of Anders Behring Breivik (July 2011)

EU Key IssuesEU Key Issues 3) 3) The Welfare State: Will it surviveThe Welfare State: Will it survive?? Europe leads the world in the generosity Europe leads the world in the generosity

of its social welfare system; but these of its social welfare system; but these state sponsored programs are very state sponsored programs are very costly and tax burdens are highcostly and tax burdens are high

The ultimate aim is The ultimate aim is two foldtwo fold; ; 1) 1) a decent standard of living is provided a decent standard of living is provided

to those worst off in the society and to those worst off in the society and 2) 2) increase the equality of increase the equality of

socioeconomic groups without socioeconomic groups without undercutting capitalism too muchundercutting capitalism too much

Welfare StateWelfare State

The Problem: not enough new jobs The Problem: not enough new jobs created; not enough new workers; created; not enough new workers; too few paying too much for too too few paying too much for too manymany

EU unemployment rate near 12-EU unemployment rate near 12-15% (USA: 5-6% 15% (USA: 5-6% usuallyusually); );

““Old Europe”: 91 million EU people Old Europe”: 91 million EU people will be over 65 by 2010will be over 65 by 2010

EU Key IssuesEU Key Issues 4) 4) Enlargement: How large should Europe Enlargement: How large should Europe

be?be? As the EU has grown larger, in continues to move As the EU has grown larger, in continues to move

eastward; but how far to go? Russia? Ukraine? eastward; but how far to go? Russia? Ukraine? Germany and Britain have favored enlargementGermany and Britain have favored enlargement; ;

France and Italy have reservationsFrance and Italy have reservations; all but Britain ; all but Britain are nervous about Turkeyare nervous about Turkey

IssuesIssues: : 1) 1) Free movement of laborFree movement of labor? Western Europe ? Western Europe

fears workers from Eastern Europe taking jobs; fears workers from Eastern Europe taking jobs; 2) 2) Farm SubsidiesFarm Subsidies? Eastern farmers want them, ? Eastern farmers want them,

but West does not want to give them as much as but West does not want to give them as much as their farmers; their farmers;

3)3) DefenseDefense? Iran? Russia? North Africa?? Iran? Russia? North Africa?