The European Union
Current State-Members
• Current State: The European Union (EU) and the Euro-zone: 27members in EU and 15 members in the euro-zone excluding U.K., Sweden and Denmark but including Malta, Cyprus and Slovenia. 27 members are Germany, France, Italy, Belgium, Netherlands, Luxembourg, Ireland, UK, Denmark, Greece, Portugal, Spain, Austria, Finland, Sweden, Czech Rep., Estonia, Hungary, Poland, Slovenia, Latvia, Lithuania, Slovak Rep., Cyprus, Malta, Bulgaria (2007), Romania (2007). • Hence, there are currently 16 European Monetary Union (EMU) members, Denmark and the UK negotiated opt-out clauses while Sweden postponed entry into the Euroland. Slovenia adopted the Euro on January 1st, 2007 and Malta and Cyprus on 2008. Slovakia adopted the Euro on January 1st, 2009. • 3 countries in the pre-accession state: These are Croatia, Turkey and Macedonia.
Finland Sweden
Ireland
Denmark England Netherlands Belgium Germany France Austria
Portugal
Spain
Italy Greece
The „EURO‟ area
History of European Union I
• Organization for European Economic Cooperation (OEEC) was founded in 1948 to administer US Marshall Plan aid to reconstruct postwar Europe. Europe sought to avoid fascism, Nazism and protectionism and establish peace and prosperity through trade kinks. Communism was feared to encroach Europe. • The Breakthrough into supranationalism: The Schuman Plan (1950) foresaw limited sectoral integration but on a supranational basis to place war-making sectors of coal and steel under one authority (The High Authority). • It was an explicitly political proposal but followed a functional approach of economic integration but with wider political objectives.
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WHY EUROPEAN COOPERATION and INTEGRATION?
Propelled by a distinctive set of historical circumstances and impulses and motivated by political, economic and security considerations. 1. Wish to avoid a repeat of governmental failures culminated in two World Wars in the 20th century and expansionist nationalism (Nazi Germany). 2. Economic devastation caused by wartime destruction. 3. Emergence of two superpowers, the USA and the Soviet Union with competing economic and political ideologies. 4. Division of Europe (East and West) and the need for security from Soviet threat and expansionism. 5. Need for rapid development in standards of living and economic performance to establish long-lasting peace and security. Poor economic performance was perceived as providing a climate of political instability conducive to the growth of Fascism and Communism as the extreme ideologies. 6. Franco-German reconciliation as the bedrock of stability within Western Europe.
History of European Union II
• Treaty of Paris (1951)-European Coal and Steel Community (ECSC) founded in 1952 to realize a common market for coal, steel and iron ore for the six member countries (West Germany, France, Italy, Belgium, the Netherlands and Luxembourg)Nascent political integration through sectoral integration to avoid another French-German war. • “Numero uno” problem at the time was governmental failure. Twice in the 20th century governments failed to deliver peace and this led to ruin in Europe. By 1950s, a middle aged man had seen two incredibly destructive wars!