European Economy: History and Decision Making

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Questions and Answers

What was the prime concern for Europe in the early post-war period of 1945-50?

How to strengthen nationalism

How to increase economic competition

How to promote communism in Europe

How to avoid another war (correct)

What was the impact of the Marshall Plan in 1948?

It led to the establishment of the European Union

It facilitated economic recovery through a joint programme (correct)

It offered financial assistance to promote communism

It enforced trade barriers among European nations

How did the Organisation for European Economic Cooperation (OEEC) contribute to European integration?

By administering Marshall Plan aid (correct)

By establishing the European Parliament

By promoting military alliances

By creating the European Economic Area

Which countries were the initial members of the European Coal and Steel Community (ECSC) in 1951?

Belgium, France, Germany, Italy, Netherlands, and Luxembourg Signup and view all the answers

What was a key characteristic of the Cold War impact on Europe?

A division between Eastern and Western Europe Signup and view all the answers

Which plan aimed to embed Germany into a European supranational structure post-World War II?

Schuman Plan Signup and view all the answers

What was the objective of the European Defence Community (EDC) and the European Political Community (EPC) in the 1950s?

To integrate nations politically and militarily Signup and view all the answers

Which of the following statements reflects the perspective that prevailed in the late 1940s regarding the cause of war?

Nationalism needs to be suppressed through integration. Signup and view all the answers

What is primarily prohibited to ensure undistorted competition in the EU?

State aids (subsidies) Signup and view all the answers

What began to facilitate the approximation of laws in the European Union?

The Single European Act Signup and view all the answers

What significant change regarding leadership and representation in EU policy occurred with the Lisbon Treaty?

Merging the positions of the Council of Ministers and the European Commission into one Signup and view all the answers

Which of the following does the principle of freedom of movement not apply to?

Anti-competitive behavior Signup and view all the answers

Which of the following policy areas was not addressed by the Treaty of Rome?

Social policy Signup and view all the answers

What is the role of the European External Action Service?

To assist the High Representative in managing EU foreign policy Signup and view all the answers

Which body acts as the executive branch of the EU?

The European Commission Signup and view all the answers

What characterizes the 'supranational pillar' in the EU?

Member states may be outvoted and must implement policies Signup and view all the answers

What is a primary responsibility of the European Commission?

To manage the EU budget Signup and view all the answers

Which institution has direct executive authority in limited areas such as competition within the EU?

The European Commission Signup and view all the answers

What is the primary challenge to harmonising social and tax policies in the EU?

Direct impact on citizens' lives and national compromise Signup and view all the answers

How does the European Commission typically decide on actions?

By consensus among Commissioners Signup and view all the answers

What is a crucial power held by the European Parliament regarding the European Commission?

To dismiss the Commission as a whole Signup and view all the answers

Which two treaties currently structure the EU as of the 2020s?

TEU and TFEU Signup and view all the answers

How many people does the European Commission employ approximately?

32,000 people Signup and view all the answers

What main legislative power does the European Parliament share with the Council of Ministers?

To share legislative powers Signup and view all the answers

What percentage of EU legislation is passed under the ordinary legislative procedure?

80% Signup and view all the answers

What is the percentage threshold of member states required to approve a proposal under the QMV system?

55% Signup and view all the answers

What is the population share percentage that must be represented by the 'yes' voters for a proposal to pass under QMV?

65% Signup and view all the answers

Which budgetary framework defines the maximum spending for EU areas over a 7-year period?

Multiannual Financial Framework Signup and view all the answers

What is the total amount allocated for the 2021-2027 MFF in current prices?

€1.211 trillion Signup and view all the answers

What is the typical expenditure area that represents about 32% of the EU budget?

Agriculture Signup and view all the answers

Which financial recovery instrument was combined with the MFF after the COVID-19 crisis?

NextGenerationEU Signup and view all the answers

How does the annual EU budget compare to the public budgets in member states?

Much smaller than many Signup and view all the answers

What is a primary reason one-size-fits-all policies are considered inefficient?

They do not provide enough flexibility for local needs. Signup and view all the answers

What are scale economies in the context of centralization?

Reduction in the per-person cost of a service as usage increases. Signup and view all the answers

Which of the following best describes spillovers?

Negative and positive externalities resulting from local policies. Signup and view all the answers

How does democracy serve as a control mechanism that supports decentralization?

By enabling local officials to be held accountable by their constituents. Signup and view all the answers

What role does jurisdictional competition play in governance?

It forces decision-makers to respond to the wishes of the populace. Signup and view all the answers

What might be a consequence of significant externalities within a nation?

Local decisions may not align with national interests. Signup and view all the answers

Why are marginal costs described as horizontal in this context?

Because they remain constant, regardless of production levels. Signup and view all the answers

What could be a common outcome of decentralizing public services?

Greater alignment of policies with local needs. Signup and view all the answers

Study Notes

European Economy: A Review of EU History, Institutions, and Decision-Making Processes

Post-WWII Europe faced devastation, prompting a quest to prevent future wars and stabilize the continent.
Three main schools of thought emerged regarding the causes of war: blame Germany, oppose capitalism, or blame nationalism; the latter led to the idea of European integration.
The Cold War initiated a division in Europe with rising tensions between the US and USSR, prompting the Marshall Plan for economic recovery in 1948.
The Marshall Plan provided $12 billion in aid, primarily benefiting the UK, France, and West Germany, administered through the Organisation for European Economic Cooperation (OEEC).
The European Coal and Steel Community (ECSC) was formed in 1951 with Belgium, France, West Germany, Italy, Netherlands, and Luxembourg to foster economic cooperation.
Efforts to create the European Defence Community (EDC) and European Political Community (EPC) were unsuccessful.
Key principles established included the prohibition of state aids, regulation of anti-competitive behavior, and the groundwork for the Single European Act in 1986.
The Treaty of Rome established the foundations for the Common Agricultural Policy but left social and tax policies largely unregulated and difficult to harmonize.
The EU architecture is built on two primary treaties: the Treaty on European Union (TEU) and the Treaty on the Functioning of the EU (TFEU).
EU policies are categorized into supranational (economic-related policies) and intergovernmental (foreign and security policies) pillars.
Decision-making within the EU involves the European Commission, which proposes legislation, administers policies, and represents the EU internationally.
The Commission comprises one Commissioner from each member state, operates by consensus, and can be dismissed by the European Parliament.
The European Parliament shares legislative powers with the Council of Ministers and oversees EU institutions, focusing on efficient and representative policy-making.
Local governance can lead to inefficiencies due to varying regional needs and preferences; cooperation is critical for addressing externalities.
Jurisdictional competition incentivizes decentralization, allowing voters to exert influence on local governments through migration.
Approximately 80% of EU legislation follows the ordinary legislative procedure, where the Council utilizes Qualified Majority Voting (QMV) based on a double majority system.
The QMV requires approval from at least 55% of member states and representing a minimum of 65% of the EU population for legislation to pass.
The Multiannual Financial Framework (MFF) for 2021-2027 sets maximum spending limits across the EU budget, focusing on long-term budgetary discipline and predictability.
The MFF totals €1.211 trillion (€1.074 trillion in 2018 prices) alongside the €806.9 billion recovery instrument, NextGenerationEU, post-COVID-19.
The EU budget, around €145 billion, constitutes approximately 1% of EU27 GDP, with significant expenditure allocated to agriculture (32%).

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Description

This quiz covers the early post-war period in European history, focusing on the foundations of the European Union and its decision-making processes. Explore how Europe navigated the challenges of reconstruction after WWII and sought to prevent future conflicts. Test your knowledge on key historical events and institutions that shaped the EU.