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The European UnionThe European UnionAnd Why It Matters To And Why It Matters To

IndianaIndiana

Teachers’ Training Workshop, 5/11/2007Teachers’ Training Workshop, 5/11/2007

Presentation by Prof. Beate SissenichPresentation by Prof. Beate SissenichIndiana UniversityIndiana University

BloomingtonBloomington

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Part 1: Part 1: General Introduction to the EUGeneral Introduction to the EU

Please refer to Please refer to

The European Union: A Guide for The European Union: A Guide for AmericansAmericans

and and

How the European Union WorksHow the European Union Works

33

Please reflect in writing on the following Please reflect in writing on the following

question:question:

How does the European Union How does the European Union affect Indiana?affect Indiana?

44

What is the EU?What is the EU?See map and table on p. 4 in The European Union: A Guide for See map and table on p. 4 in The European Union: A Guide for

AmericansAmericans

The world’s most deeply integrated The world’s most deeply integrated system of regional inter-state cooperationsystem of regional inter-state cooperation

27 European member states27 European member states Ca. 490 million people (US: 300 million)Ca. 490 million people (US: 300 million) Independent countries pooling their Independent countries pooling their

sovereignty in shared institutions to create sovereignty in shared institutions to create common policiescommon policies

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What the EU is NOT:What the EU is NOT:

A “superstate”A “superstate” A “United States of Europe”A “United States of Europe” A welfare stateA welfare state A federationA federation An international organization such as the An international organization such as the

United NationsUnited Nations

the EU is unique in structure and the EU is unique in structure and compositioncomposition

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Goals and PurposesGoals and Purposes

Peace and stabilityPeace and stability DemocracyDemocracy Economic growthEconomic growth Social solidaritySocial solidarity ““Unity in diversity”Unity in diversity”

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HistoryHistory

1951: European Coal and Steel Community (F, D, I, BeNeLux)1951: European Coal and Steel Community (F, D, I, BeNeLux)

1957: Treaties of Rome: European Economic Community 1957: Treaties of Rome: European Economic Community (EEC), European Atomic Energy Community (EURATOM)(EEC), European Atomic Energy Community (EURATOM)

1986: Single European Act to facilitate Single Market1986: Single European Act to facilitate Single Market

1992: Treaty on European Union (Maastricht Treaty)1992: Treaty on European Union (Maastricht Treaty)

1997 Treaty of Amsterdam1997 Treaty of Amsterdam

2001 Treaty of Nice2001 Treaty of Nice

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Governance:Governance:The 3 Pillars of the EUThe 3 Pillars of the EU

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Gradual Enlargement: Gradual Enlargement: from 6 to 27 membersfrom 6 to 27 members

1957: BeNeLux, D, F, I1957: BeNeLux, D, F, I

1973: Denmark, UK and Ireland1973: Denmark, UK and Ireland

1981: Greece1981: Greece

1986: Spain and Portugal1986: Spain and Portugal

1995: Sweden, Finland, Austria1995: Sweden, Finland, Austria

2004: “jumbo” enlargement: Cyprus, Czech Republic, Estonia, 2004: “jumbo” enlargement: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, SloveniaHungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia

2007: Bulgaria, Romania2007: Bulgaria, RomaniaCandidates: Croatia, Turkey, FYR MacedoniaCandidates: Croatia, Turkey, FYR Macedonia

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How is the EU run?How is the EU run?See ch. 2 in See ch. 2 in The European Union: A Guide for AmericansThe European Union: A Guide for Americans

Unique system of governance—some key Unique system of governance—some key institutionsinstitutions::

European CommissionEuropean Commission Council of the European Union and Council of the European Union and

European CouncilEuropean Council European ParliamentEuropean Parliament European Court of Justice and Court of European Court of Justice and Court of

AuditorsAuditors Interest representation: Economic and Interest representation: Economic and

Social Committee and Committee of the Social Committee and Committee of the RegionsRegions

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European CommissionEuropean Commissionp. 6 in p. 6 in The European Union: A Guide for Americans; The European Union: A Guide for Americans;

pp. 20-24 inpp. 20-24 in How the EU Works How the EU Works Represents European perspectiveRepresents European perspective 27 Commissioners, appointed for 5-year 27 Commissioners, appointed for 5-year

termsterms Executive branch w/seat in Brussels (also Executive branch w/seat in Brussels (also

Luxembourg)Luxembourg) Sole initiator of legislationSole initiator of legislation Implements EU policies and budgetImplements EU policies and budget Enforces EU lawEnforces EU law Represents the EU internationallyRepresents the EU internationally

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Council of the EUCouncil of the EU

p. 6-7 in The European Union: A Guide for Americans; p. 6-7 in The European Union: A Guide for Americans; pp. 14-19 in How the EU Workspp. 14-19 in How the EU Works

Main decision-making bodyMain decision-making body Voice of the member statesVoice of the member states Made up of one member from each member state Made up of one member from each member state

governmentgovernment Meets in 9 issue-specific configurations: general Meets in 9 issue-specific configurations: general

affairs and external relations, economics & finance, affairs and external relations, economics & finance, agriculture, etc.agriculture, etc.

Rotating presidency (6 months)Rotating presidency (6 months) Responsibilities: adopting laws; coordinating Responsibilities: adopting laws; coordinating

economic policies; concluding international economic policies; concluding international agreements; approving the budget (w/ Parliament); agreements; approving the budget (w/ Parliament); developing Common Foreign and Security Policy; developing Common Foreign and Security Policy; coordinating cooperation in police and judicial affairscoordinating cooperation in police and judicial affairs

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Voting in the CouncilVoting in the Councilp. 19 in How the EU Worksp. 19 in How the EU Works

By By unanimityunanimity in Common Foreign and in Common Foreign and Security Policy, taxation, and asylum and Security Policy, taxation, and asylum and immigrationimmigration

By By qualified majorityqualified majority in most policy areas: in most policy areas: majority of member states majority of member states andand minimum minimum of 72.3 % of votesof 72.3 % of votes

Weighted voting: larger countries have Weighted voting: larger countries have more votes, but smaller countries are more votes, but smaller countries are disproportionately representeddisproportionately represented

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European ParliamentEuropean Parliamentp. 7 in p. 7 in The European Union: A Guide for AmericansThe European Union: A Guide for Americans

pp. 10-13 in pp. 10-13 in How the EU WorksHow the EU Works

Directly elected since 1979Directly elected since 1979 785 members from 27 member states, elected for 785 members from 27 member states, elected for

5-year terms5-year terms Organized in 8 political groups, each of which is Organized in 8 political groups, each of which is

based on national partiesbased on national parties Seats in Strasbourg and BrusselsSeats in Strasbourg and Brussels Passes legislation (together with the Council)Passes legislation (together with the Council) Democratic supervision of other EU institutionsDemocratic supervision of other EU institutions Approves/rejects the budgetApproves/rejects the budget

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What does the EU do?What does the EU do?See pp. 24-33 in See pp. 24-33 in The European Union: A Guide for AmericansThe European Union: A Guide for Americans

Single market: freedom of movement Single market: freedom of movement for goods, services, capital and for goods, services, capital and peoplepeople

Common currency (13 out of 27 Common currency (13 out of 27 member states currently use the member states currently use the euro)euro)

Common foreign and security policyCommon foreign and security policy Police and judicial cooperation in Police and judicial cooperation in

criminal matterscriminal matters

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Activity:Activity: Please consult Please consult

Key Facts and Figures about Europe and Key Facts and Figures about Europe and the Europeans the Europeans

to answer the following questions:to answer the following questions:

How wealthy are Europeans?How wealthy are Europeans? How much does the EU spend on How much does the EU spend on

research?research? How much does the EU produce?How much does the EU produce? How much do EU countries trade inside How much do EU countries trade inside

the EU? How much do they trade with the EU? How much do they trade with other countries?other countries?

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Spending and Government Spending and Government in the EUin the EU

EU budget is capped at 1.27 % of EU GNPEU budget is capped at 1.27 % of EU GNP 2003: 1.02% of EU GDP 2003: 1.02% of EU GDP ↔ ↔ US: 36.7 % of GDPUS: 36.7 % of GDP↔ ↔ D: 48.3 % of GDPD: 48.3 % of GDP↔ ↔ SW: 57.3 % of GDPSW: 57.3 % of GDP↔ ↔ EI: 33.5 % of GDPEI: 33.5 % of GDP EU administration is smaller than national EU administration is smaller than national

administrations:administrations:EU permanent staff = 30,000, of which 73 % are EU permanent staff = 30,000, of which 73 % are Commission staff Commission staff

↔ ↔ US US federalfederal civilian employment = 2.73 million civilian employment = 2.73 million

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TradeTrade

Source: http://www.eurunion.org/profile/EUUSStats.pdfSource: http://www.eurunion.org/profile/EUUSStats.pdf

1919

2020

Foreign Direct Investment Foreign Direct Investment

Source: http://www.eurunion.org/profile/EUUSStats.pdfSource: http://www.eurunion.org/profile/EUUSStats.pdf

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EU-Indiana TradeEU-Indiana Trade

Indiana’s goods exports to EU25 were USD 3.96 billion representing Indiana’s goods exports to EU25 were USD 3.96 billion representing 24.1% of total exports in 2003.24.1% of total exports in 2003.

http://www.eurunion.org/partner/usstates/Indiana%20-%20IN%202003.ppt http://www.eurunion.org/partner/usstates/Indiana%20-%20IN%202003.ppt

Top 5 Exports to the EU25, 2002-2003 (USD millions).3

1,918.3

346.0452.5 325.7 217.3445.01,373.9

293.7 255.0602.1

0500

1,0001,5002,0002,500

CHEMICALS TRANSPORTATIONEQUIPMENT

MACHINERY, EXCEPTELECTRICAL

COMPUTER ANDELECTRONIC PRODUCTS

MISCELLANEOUSMANUFACTURED

COMMODITIES

2002

2003

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Foreign Investment in IndianaForeign Investment in Indiana

EEU15 Investment in Indiana supported an estimated 84,200 jobs in 2002. U15 Investment in Indiana supported an estimated 84,200 jobs in 2002. EU15 EU15 was #1 foreign investor in Indiana in 2002. EU15 Investment amounted to an was #1 foreign investor in Indiana in 2002. EU15 Investment amounted to an estimated USD 18,454 millions or 65.6% of total foreign direct Investment in estimated USD 18,454 millions or 65.6% of total foreign direct Investment in Indiana in 2002.Indiana in 2002. http://www.eurunion.org/partner/usstates/Indiana%20-%20IN%202003.ppt http://www.eurunion.org/partner/usstates/Indiana%20-%20IN%202003.ppt

Major FDI in 2002 (USD millions).2

18,464

7,436

1,318

921

0 5,000 10,000 15,000 20,000

EU15

Jap

Other

Can

Percentage of Investment in 2002 (%).2

EU15, 65.6

Jap, 26.4

Other, 4.7

Can, 3.3

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Please revisit your earlier notes on the Please revisit your earlier notes on the

question:question:

How does the European Union How does the European Union affect Indiana?affect Indiana?

How has your assessment changed?How has your assessment changed?

What would you add to your earlier What would you add to your earlier observations?observations?