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European Union

Presented By

Jun Yun Hao

Hin “Stephen” Kwok

Kadambala Muralidhar

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What is European Union ?

European Union earlier known as European Community was created after World War II to unite the European nations economically.

EU is an institutional framework for the construction of a United Europe.

25 Countries are the current members. 12 Countries share the same currency.

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Chronology of EU.

1952 Six countries - Belgium, France, the Federal Republic of Germany, Italy, Luxembourg and the Netherlands - create the European Coal and Steel Community (ECSC) by pooling their coal and steel resources in a common market controlled by an independent supranational authority.

1958 The Rome Treaties set up the European Economic Community (EEC) and the European Atomic Energy Community (Euratom), extending the common market for coal and steel to all economic sectors in the member

countries. 1965 The Merger Treaty is signed in Brussels on April 8. It

provides for a Single Commission and a Single Council of the then three European Communities.

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Chronology of EU.

1967 The Merger Treaty enters into force on July 1

1973 The United Kingdom, Ireland, and Denmark join the European Community (EC).

1979 The European Parliament is elected, for the first time, by direct universal suffrage and the European Monetary System (EMS) becomes operative.

1981 Greece becomes the 10th member state.

1985 The program to complete the Single Market by 1992 is launched.

1986 Spain and Portugal become the 11th and 12th member

states.

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Chronology of EU.1987 The Single European Act (SEA) introduces majority voting

on Single Market legislation and increases the power of the European Parliament.

1989 The Madrid European Council launches the plan for achievement of Economic and Monetary Union (EMU).

1990 East and West Germany are reunited after the fall of the Berlin Wall.

1991 Two parallel intergovernmental conferences produce the Treaty on European Union (Maastricht) which EU leaders approve at the Maastricht European Council.

1992 Treaty on European Union signed in Maastricht and sent to member states for ratification. First referendum in Denmark rejects the Treaty.

1993 The Single Market enters into force on January 1. In May, a second Danish referendum ratifies the Maastricht

Treaty, which takes effect in November.

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Chronology of EU.

1994 The EU and the 7-member European Free Trade Association (EFTA) form the European Economic Area, a single market of 19 countries. The EU completes membership negotiations with EFTA members Austria, Finland, Norway and Sweden.

1995 Austria, Finland and Sweden join the EU on January 1. Norway fails to ratify its accession treaty. The EU prepares the 1996 Intergovernmental Conference on institutional reform.

1997 The Treaty of Amsterdam, resulting from the 1996 Intergovernmental Conference, is signed on October 2.

1999 The Euro is introduced on January 1 electronically in 12 participating member states, with complete introduction to occur

in 2002. The Amsterdam Treaty enters into force on May 1. 2001 The Treaty of Nice results from the 2000 Intergovernmental

Conference.

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Chronology of EU.

2002 The Euro is fully launched on January 1. The European Convention begins, as part of the debate on the future of Europe,  to propose a new framework and structures for the European Union--geared to changes in the world situation, the needs of the citizens of Europe and the future development of the European Union.

2003 The Treaty of Nice enters into force on February 1. 2004 Ten countries (Cyprus, the Czech Republic, Estonia,

Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia) join the European

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Five EU Institutions

European Parliament (elected by the peoples of the Member States); 

Council of the European Union (representing the governments of the Member States); 

European Commission (driving force and executive

body); 

Court of Justice (ensuring compliance with the law); 

Court of Auditors (controlling sound and lawful management of the EU budget).

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Five EU Bodies European Economic and Social Committee (expresses the

opinions of organized civil society on economic and social issues); 

Committee of the Regions (expresses the opinions of regional and local authorities); 

European Central Bank (responsible for monetary policy and managing the euro); 

European Ombudsman (deals with citizens' complaints about maladministration by any EU institution or body); 

European Investment Bank (helps achieve EU objectives by financing investment projects); 

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The EU Then and Now

In 1958, 6 members

23% of population relied on farming for job

40% of population work in industry

37% of population work in service

By 2001, 15 members

4% of population relied on farming for job.

29% of population work in industry

67% of population work in service

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Achievements and Goals

Creation of a customs union The single market Economic and monetary union

(EMU)

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The Bigger the EU, The Greater the Benefit

Enlargement of EU to 25 countries cost money initially.

“Old” member states could be 1% larger than they could otherwise have been.

New members can expect up to 1% more growth each year from membership.

It could mean the creation of more then 300,000 jobs in these countries by 2010.

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Benefits of custom union were clear from an early stage.By 1970,member states were trading 6 times as much between themselves

than 12 years earlier.3 times as much with the rest of the

world Their economies more than doubled in size

and were expanding faster than the US economy

Benefit of Custom Union

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Benefit of Single Market

Keen competition and room to expand within the single market helps keep European companies among the world leaders. Of the world’s 100 largest companies, 32 are

from EU. Of the world’s 100 largest commercial bank,

39 are from EU. Of the world’s 100 largest most valuable

brands, 27 are from EU.

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Benefit of Single Market (continue)

Added 1.8 percentage points to GDP growth in the EU as a whole.

Generated 900 billion in extra prosperity. Created 2.5 million jobs in the EU. Contributed to a 30% increase in trade in

manufactured goods in EU. Been a key factor in boosting flows of direct

investment within EU.

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Benefit of Single Market (continue)

Encouraged new inflows of foreign direct investment from outside the EU.

Made EU more internationally competitive. For example, EU exports to countries outside the EU increased from 6.9% of EU GDP to 11.2%.

Boosted purchasing power through pressure on prices.

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Benefit of Single Currency

“Tax” on doing business within EU countries used to amount to 1% of GDP before single currency.

After single currency, 80% of “tax” disappear.

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EU Benefit of Single Currency

Single currency makes investment among member states more stable.

Single currency also help attract foreign investors.

Because of the stability of the Euro, many countries are now using Euro as their reserved in addition to US dollar.

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Benefit of Single Currency

“Tax” on doing business within EU countries used to amount to 1% of GDP before single currency.

After single currency, 80% of “tax” disappear.

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Freedom for People Too

Freedom of movement has since been extended to job seekers, students, pensioners, in fact virtually everybody.

More than 15 million EU citizens have moved to work or retire in another EU country. (i.e. Bavaria)

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EU’s impact on domestic and foreign economy

EU has placed a vital part in the global economy recovery. Especially in some of the Ex-USSR states.

Increase Trade among member states helps ease the global recession in 1999.

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EU’s impact on domestic and foreign economy

Austria, Bavaria, Czech Republic, Poland, and Hungary are just some countries that have benefit from the creation of EU, the Euro, and the continue expansion of EU.

Many of these benefit comes from increase of trade and export to member states of EU.

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EU’s impact on domestic and foreign economy

Bigger bargaining power with other major country outside the EU membership. (i.e. US)

EU is able to impose stronger economic standard against foreign economy then previously able to due to a single agreement that covers many EU member countries.

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Landmarks in EU-US Cooperation.

2 Greatest Economies in the World. (both put together is about half the entire world economy)

Biggest Bilateral Trading and investment relationship. (Transatlantic flows of trade and investment amount to around $1 billion a day)

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EU and it’s problem

Continue agreement and cooperation within member states.

Lost of some national identity. Fear of lost of control of the country’s

own natural resource (i.e. Iceland’s fishing industries).

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Questions ?

Thanks for Your Patience.

Have a Great Memorial Day Weekend.