the european union craig kelso, sam harrold, jeff benes, david schon, and david wilson
TRANSCRIPT
The European UnionThe European Union
Craig Kelso, Sam Harrold, Jeff Benes, Craig Kelso, Sam Harrold, Jeff Benes,
David Schon, and David WilsonDavid Schon, and David Wilson
15 Nations of the EU15 Nations of the EU AustriaAustria BelgiumBelgium DenmarkDenmark FinlandFinland FranceFrance GermanyGermany GreeceGreece IrelandIreland ItalyItaly LuxembourgLuxembourg The NetherlandsThe Netherlands PortugalPortugal Spain Spain SwedenSweden United KingdomUnited Kingdom
1997 EU Statistics 1997 EU Statistics
1.249 billion square miles1.249 billion square miles 373.3 million people373.3 million people 298.9 people per square mile298.9 people per square mile GDP $ 8.093 trillionGDP $ 8.093 trillion
Preparing for a Unified Preparing for a Unified EuropeEurope
World War II depleted resources World War II depleted resources The German-French Problem to The German-French Problem to
solvesolve The Communist Threat The Communist Threat Need for UnificationNeed for Unification
– France- EconomicFrance- Economic– Germany- PoliticalGermany- Political
Before there was an EUBefore there was an EU
European Coal and Steel Community European Coal and Steel Community (1951-1958)(1951-1958)– Treaty of Paris April 1951Treaty of Paris April 1951
European Economic Community (1958-1986)European Economic Community (1958-1986)– Treaty of Rome March 1957 Treaty of Rome March 1957
European Community (1986-93)European Community (1986-93)– The Single European Act February 1986The Single European Act February 1986
European Union (1993- present)European Union (1993- present)– Treaty of European Union February 1992Treaty of European Union February 1992
The Politics of the EUThe Politics of the EU
Sam HarroldSam Harrold
Trea ty o f th e E u rop ean U n ion
E u rop ean U n ion
P illa r 1E con om ic an d M on eta ry U n ion
P illa r 2C om m on F org ien an d S ecu rity P o lic y
P illa r 3Ju s tice an d H om e A ffa irs
Maastricht February 7, Maastricht February 7, 19921992
Institutions of the Institutions of the European UnionEuropean Union
European ParliamentEuropean Parliament
European CouncilEuropean Council
Council of the Council of the
European UnionEuropean Union
European European
CommissionCommission
Court of JusticeCourt of Justice
Court of AuditorsCourt of Auditors
Decision Making in the Decision Making in the European UnionEuropean Union
D ec is ion M ake in g in th e E u rop ean U n ion
The CouncilProposal Adoption
A p p rove
The CouncilProposal Adoption through M ajority or Unanim ous Vote
The Com m isionAdopts/Rejects Am endm ents
A m en d
Th e C ou n c ilAppeal through Unanim ous Vote
R ejec t
The European Parliam entHas Three M onths w ith Proposal
The CouncilProposal
The Com m issionProposal
EU AND INTERNATIONAL EU AND INTERNATIONAL TRADETRADE
Jeff BenesJeff Benes
GENERAL TRADE POLICIESGENERAL TRADE POLICIES
Promote liberal tradePromote liberal trade– common external tariffcommon external tariff– elimination of tariffs among memberselimination of tariffs among members– reduced non-tariff barriersreduced non-tariff barriers
EU TRADE WITH JAPANEU TRADE WITH JAPAN
Key market for EUKey market for EU EU key market for JapanEU key market for Japan Both cooperate on multilateral Both cooperate on multilateral
trade issuestrade issues Bilateral trade relations have Bilateral trade relations have
improvedimproved Market access problems remainMarket access problems remain
EU TRADE WITH U.S.EU TRADE WITH U.S.
EU & U.S. each other’s largest EU & U.S. each other’s largest single trading partnersingle trading partner
19% in total EU imports, 17.8% in 19% in total EU imports, 17.8% in total EU exports (1995)total EU exports (1995)
21.2% of US exports, 17.7% of US 21.2% of US exports, 17.7% of US imports (1995)imports (1995)
Trade between EU and US nearly Trade between EU and US nearly 227 billion ECU (1 ECU=$1.134)227 billion ECU (1 ECU=$1.134)
EU TRADE WITH U.S.EU TRADE WITH U.S.
EU second largest market for US EU second largest market for US agricultural productsagricultural products
heavily concentrated in sophisticated heavily concentrated in sophisticated high technology productshigh technology products
EU offers good opportunities for EU offers good opportunities for American suppliers of goods/services American suppliers of goods/services in telecommunications, health & in telecommunications, health & medical, and environmental sectorsmedical, and environmental sectors
CONCERN OVER US TRADE CONCERN OVER US TRADE POLICYPOLICY
Extraterritoriality: Extraterritoriality: persons/companies incorporated in persons/companies incorporated in EU to follow US laws or policies EU to follow US laws or policies outside the USoutside the US
Unilateralism: unilateral sanctions Unilateralism: unilateral sanctions or retaliatory measures against or retaliatory measures against “offending” countries or “offending” countries or companies.companies.
RECENT DEVELOPMENTSRECENT DEVELOPMENTS 1990: EU and the US adopt a 1990: EU and the US adopt a
Transatlantic DeclarationTransatlantic Declaration laying down laying down principles for greater EU-US principles for greater EU-US consultation and cooperation.consultation and cooperation.
1995: EU and US agree on a 1995: EU and US agree on a New New Transatlantic Agenda (NTA)Transatlantic Agenda (NTA) and and Action Action PlanPlan to promote cooperation, to promote cooperation, partnership, and joint action in areas partnership, and joint action in areas ranging from trade liberalization to ranging from trade liberalization to security.security.
RECENT DEVELOPMENTS RECENT DEVELOPMENTS CONT’DCONT’D
1998: EU-US Summit--moving 1998: EU-US Summit--moving closer to launching new drive to closer to launching new drive to liberalize global trade in the liberalize global trade in the twenty-first centurytwenty-first century– removed one of EU’s biggest removed one of EU’s biggest
complaints against US, the complaints against US, the extraterritorial reach of its domestic extraterritorial reach of its domestic lawslaws
The EuroThe Euro
David SchonDavid Schon
What is the Euro?What is the Euro? The Euro is the much anticipated single The Euro is the much anticipated single
European currency.European currency. Many European Big Businesses hope that the Many European Big Businesses hope that the
Euro will cut transaction costs and encourage Euro will cut transaction costs and encourage cross-border mergers.cross-border mergers.
They also hope that it will allow them to They also hope that it will allow them to better compete in the global economybetter compete in the global economy
Not being welcomed by all Nations...Not being welcomed by all Nations... It is expected to equal to about 2 marks It is expected to equal to about 2 marks
($1.18)($1.18)
When will the Euro ArriveWhen will the Euro Arrive
The birth of the Euro will be on The birth of the Euro will be on January 1st, 1999, at which time all January 1st, 1999, at which time all participating currencies will be fixed participating currencies will be fixed against the Euro.against the Euro.
However, the physical Euro will not However, the physical Euro will not appear until January 1st, 2002. For appear until January 1st, 2002. For these 3 years, old currencies will be these 3 years, old currencies will be used as some percentage of the Euroused as some percentage of the Euro
Is the ECB another USFR?Is the ECB another USFR? The European Central Bank is not a The European Central Bank is not a
duplicate of the US Federal Reserves duplicate of the US Federal Reserves The US Federal Reserve has two primary The US Federal Reserve has two primary
goals, price stability & employment and goals, price stability & employment and economic growth.economic growth.
The ECB has only one goal, to provide The ECB has only one goal, to provide economic stabilityeconomic stability
The ECB also faces the problems associated The ECB also faces the problems associated with handling 11 politically diverse nationswith handling 11 politically diverse nations
What Effects will this have What Effects will this have World-Wide.World-Wide.
In the United States, the Euro is expected In the United States, the Euro is expected to create an economic block that can to create an economic block that can compete with Domestic Economy.compete with Domestic Economy.
““Euroland” will have a population that Euroland” will have a population that exceeds that of the US by 23 millionexceeds that of the US by 23 million
It will force firms to completely change It will force firms to completely change their perspectives on international tradetheir perspectives on international trade
On the up side, tourist will take no losses On the up side, tourist will take no losses from border to border in Europe.from border to border in Europe.
Will the Euro Work?Will the Euro Work? This is a good question.This is a good question. One year ago, many did not feel that the One year ago, many did not feel that the
Euro would be on track.Euro would be on track. Today the idea of common currency uniting Today the idea of common currency uniting
such diverse nations is still very such diverse nations is still very questionable, especially with certain nations questionable, especially with certain nations like Britain being excluded (for present).like Britain being excluded (for present).
Politics will ultimately make or break the Politics will ultimately make or break the Euro...Euro...
The Future of the EUThe Future of the EU
David WilsonDavid Wilson
By the year 2000…...By the year 2000…... Set up a single currency, the “Euro”Set up a single currency, the “Euro” Reform political machinery and Reform political machinery and
policies to cater for larger unionpolicies to cater for larger union Establish a new financial frameworkEstablish a new financial framework Decide on guidelines for future Decide on guidelines for future
defensedefense Economic and Monetary Union by Jan Economic and Monetary Union by Jan
1, 19991, 1999– Denmark and Great Britain around 2002.Denmark and Great Britain around 2002.– Euro becomes legal tender in 2002.Euro becomes legal tender in 2002.
Increased World Increased World EffectivenessEffectiveness
More influential than ever beforeMore influential than ever before Proactive rather than reactive to political and Proactive rather than reactive to political and
global changesglobal changes Assertion of “new identity”Assertion of “new identity” A common (united) foreign security agreementA common (united) foreign security agreement Possible common defense policyPossible common defense policy The “Euro”The “Euro”
– provide access to lower interest ratesprovide access to lower interest rates– better stability and reliabilitybetter stability and reliability– eliminate inefficiencies in transactionseliminate inefficiencies in transactions– no internal exchange rate uncertaintyno internal exchange rate uncertainty– will attract foreign investmentwill attract foreign investment
A Citizens European UnionA Citizens European Union ““In the future, the EU’s institutions will In the future, the EU’s institutions will
have to become more responsive to the have to become more responsive to the needs of its citizens and to be more needs of its citizens and to be more open, transparent and democratically open, transparent and democratically accountable”accountable” Le Figaro Le Figaro
Reduced unemploymentReduced unemployment New improved environmental protection policiesNew improved environmental protection policies Protection of human rightsProtection of human rights Voters will feel more involved in europeVoters will feel more involved in europe Increased powers of justiceIncreased powers of justice A more cohesive, inclusive societyA more cohesive, inclusive society
Other United Fronts…...Other United Fronts…...
One common energy (power) grid for the unionOne common energy (power) grid for the union An integrated transportation networkAn integrated transportation network Development in progress for a re-vamped Development in progress for a re-vamped
common agricultural policycommon agricultural policy Common policies on:Common policies on:
– ImmigrationImmigration– VisasVisas– AsylumAsylum
Expansion of area covered by NATOExpansion of area covered by NATO
Where to from here?Where to from here? Expansion to the east - 100 million new members Expansion to the east - 100 million new members
by early next decadeby early next decade As many as 30 new members - As many as 30 new members -
– Hungary, Poland, Estonia, Czech Rep. and Slovenia to join Hungary, Poland, Estonia, Czech Rep. and Slovenia to join union approximately 2003union approximately 2003
– Bulgaria, Romania, Latvia, Lithuania and Slovakia (later Bulgaria, Romania, Latvia, Lithuania and Slovakia (later on…)on…)
Deepening economic and monetary union Deepening economic and monetary union Increased powers for the European Parliament???Increased powers for the European Parliament??? Build a Europe so strong, that it never splits againBuild a Europe so strong, that it never splits again New political reality - a new EuropeNew political reality - a new Europe A leaner Union - less welfareA leaner Union - less welfare
How will this affect the How will this affect the United States?United States?
Business will be enticed to expand into europe Business will be enticed to expand into europe because of a rapidly expanding but stable market because of a rapidly expanding but stable market opening upopening up
Loss of defense contractsLoss of defense contracts New, higher level of competition with the USNew, higher level of competition with the US The “euro” - competition as a world leading The “euro” - competition as a world leading
currencycurrency European mergers will continue, offering stiff European mergers will continue, offering stiff
competition for US companies (eg. Airbus)competition for US companies (eg. Airbus) Possible stand-offs, trade wars and political Possible stand-offs, trade wars and political
stalemates as continents differ on global issues.stalemates as continents differ on global issues.
Potential Barriers to Potential Barriers to UnificationUnification
Division between:Division between:– larger and smaller countrieslarger and smaller countries– poorer and richer countriespoorer and richer countries– northern and southern countriesnorthern and southern countries– economic liberals and protectionistseconomic liberals and protectionists
Disagreement between “federalists” (Germany and Disagreement between “federalists” (Germany and Benelux countries) and nation states (Great Britain)Benelux countries) and nation states (Great Britain)
Countries will have to swallow national prideCountries will have to swallow national pride Steady erosion of social democratic parties due to re-Steady erosion of social democratic parties due to re-
orientation to profitabilityorientation to profitability Economic gap between EU nations and those Economic gap between EU nations and those
preparing to enter the EUpreparing to enter the EU