International Relations

• The EU is unique as it exists as a level of government above the state level.
• Member states' sovereignty is reduced within the EU, but it is still maintained.
• State: A monopoly of coercion within a defined territory.
• Sovereignty: Ultimate authority within a defined territory.
• Nation: A group sharing culture, language, religion, and history.
• Legitimacy: Accepted rightful authority.
• Supranationalism: Complete sovereignty erosion where sovereignty is surrendered to a higher governmental level.
• The UN aligns with the side of sovereignty.
• USMCA (NAFTA): A free trade agreement between the US, Mexico, and Canada which means no tariffs.
• NATO acts as a defense agreement (Article 5 states that an attack on one is an attack on all).
• WTO exists as well.
• Banana Wars is an event.
• Mercosur includes Argentina, Paraguay, Uruguay, and Brazil and is a customs union.
• The EU leans toward supranationalism.
• Deepening enhances an organization's sovereignty.
• Widening adds more member countries to the organization.
• 1957 marks the creation of the "EU", which underwent several name changes.
• This was the creation of the European Economic Community (original name)
• Key original founders include France, (West) Germany, Italy, Belgium, Netherlands, and Luxembourg
• Benelux is the combination of Belgium, Netherlands, and Luxembourg
• Italy's inclusion was monitored through a democratization process by the EU
• 1973: The first enlargement included the UK, Denmark, and Ireland.
• Austria was unable to join due to an agreement with the USSR to remain neutral.
• The UK initially hesitated to join because it lacked a large agricultural base but possessed old industrial production, leading to the EU's Cohesion policy to support lagging countries (about 30% of the EU's budget today).
• 1981: Greece joined the EU.
• Formerly under a military dictatorship, Greece joined to solidify their move towards democracy.
• 1986: Spain and Portugal joined the EU.
• Both countries had transitioned from military dictatorships through democratization.
• 1995: Austria, Finland, and Sweden joined the EU when the Soviet Union fell (1989-91) since they no longer had to remain neutral, concerned about environmental policy above all.
• 2004 - "The Big Bang" included Malta and Cyprus (Greek side only), Czech Republic, Slovakia, Hungary, Poland, Estonia, Latvia, Lithuania, and Slovenia.
• All countries had State-controlled economies and wanted to switch to a free market economy/

Further EU Enlargement

• Enlargement is a lengthy process due to extensive agreement negotiations.
• Accession refers to the body of EU laws.
• 2007: Bulgaria and Romania joined
• Romania's transition was tumultuous, marked by the murder of its leader, Ceausescu.
• They both had underdeveloped economies relative to other Eastern European countries.
• Corruption with communist government officials was a problem.
• The EU granted them leeway to meet certain requirements from 2007 and 2004.
• Bulgaria and Romania are considered "problem children" due to corruption and misuse of EU funds.
• Political movements have strived to eliminate corruption, but misuse of funds caused enlargement fatigue within the EU as many Romanians and Bulgarians moved to Western Europe.
• 2023: Croatia joined
• Formerly part of Yugoslavia, Croatia use to be dragged into the Civil War due to seceding from the Serbs.
• Candidate status notes countries the EU is willing to discuss and negotiate membership with (Albania (June 2014), Bosnia and Herzegovina (June 2022), Moldova (June 2022), Montenegro (December 2010), North Macedonia (formerly the Former Yugoslav Republic of Macedonia) (December 2005) change their name to please Greece and join the EU, Serbia (March 2012), Turkiye (applied 1987- candidate in 1997; 1995 Customs Union), Ukraine (June 2022) given the status to anger the Russians.
• Possible candidate countries include Georgia and Kosovo.
• Serbia does not recognize Kosovo as its own state.
• Non-EU Members: Norway and Switzerland also have free movement
• Switzerland does not want it's banking system regulated by the EU.
• Switzerland contributes to the EU for Free Movement.
• Norway rejected the EU to maintain its regulation over gas extraction and fishing.
• Iceland also has a large fishing industry and is hesitant about EU regulation.
• Due to EU's issues with banking Iceland considered joining after the Financial Crisis of 2009 apply in 2009 for a bailout and bailed after rebuilding through tourism.
• The US military base in Iceland improved tourism there and Americans are well-recieved.
• Iceland also has Free Movement within the EU.
• UK - Brexit officially happened in 2020.
• The EU and UK need an agreement regarding movement between Ireland and Northern Ireland (part of the UK).

Stages of Integration

• Free Market: Removal of tariff and non-tariff barriers (regulations) among the members (ex. USMCA priorly NAFTA)
• Customs Union: Free market, plus a single tariff barrier to the outside (ex. Mercosur)
• Common Market: Includes free market, customs union and the free movement of labor, capital, goods, and services (ex. European Economic Community, European Community, and parts of the EU today)
• EU citizens can apply to work anywhere within the EU
• Monetary Union: Economic and monetary union (creation of a single currency), such as the Euro
• Monetary Policy shapes the value of currency and the economic system
• Examples include the European Central Bank and FED; determining interest rates, print more money
• The EU is based on Neoliberalism which prioritizes free markets, and no trade barriers, less government intervention in the economy
• State run subsidies are government expenditures to keep an industry afloat
• Fiscal policy involves both spending (budgets) and Taxation

Main Institutions of the EU

• European Commission: Executive body; introduces legislation
  • Members are nominated by member states.
  • The European Parliament appoints the Commission.
  • Represents Europe (acts in the interest of Europe).
  • Supranational body.
• Council of the EU: Co-legislative body
  • Members are appointed by member states.
  • Represents member states.
  • Exercises sovereignty.
• European Parliament: Co-legislative function
  • Members are directly elected.
  • Represents Europe and citizens of their district.
  • Supranational body.
• European Union Court of Justice: Judiciary; upholds the spirit of the treaties; like the Supreme Court
  • Members are appointed by member states (27 Justices).
  • Represents Europe.
  • Supranational body.
• Historically weaker, the three institutions representing the states, particularly the Council, were the most powerful.
• "Democratic deficit" refers to the EU's lack of democracy.

History of the EU

• Post WWII, there were high levels of destruction and the Cold War era.
  • There was fear of Soviet Aggression and internal Communist subversion (popularity of Communists) (namely in France and Italy)
• The US supported European internal cooperation.
• Europe felt economic weakness and Europe’s vulnerability to the Soviets (the Marshall Plan).
• Positions on European Integration included
  • Federalist: continental Europe
  • Unionist: UK
• Both agreed on the desirability of European unity and the need for an international organization with a parliament.
• Federalists aimed to create an assembly to draft a constitution for a United States of Europe.
• Unionists favored a limited form of integration with a consultative assembly deferring to a committee of government ministers.
• Winston Churchill was a Unionist.
• The Council of Europe was formation but not part of the EU.
• In May 1948, 16 countries met in the Hague.
• Outcome: Capitulation was due to unionist position when creating the Council of Europe
• The purpose was to: exchange of ideas and information of social, legal and cultural matters
  • Most progress was made with human rights issues
• France wanted to win control over the Saar (coal-rich) and prevent economic recovery of the Ruhr, as occupying France post WWII
• US and Britain wanted to promote economic growth and pressured France into an acceptable solution concerning Ruhr.
• Founding Fathers of European Integration included
  • Jean Monnet: head of the French Modernization Plan
  • Robert Schuman: French Foreign Minister
  • Created the May 9, 1950 Schuman Declaration - reconciled Germany economic recovery with French national security
  • The European Coal and Steel Community was created (ECSC)
• The ECSC was important because it would create the foundation and idea to create Euratom and the European Economic Community (EEC), European Community (EC) and later the European Union (EU).
• European Coal and Steel Community (ESCS) - Treaty of Paris
  • High Authority: the institutional depository of shared sovereignty over coal and steel
  • Court of Justice: adjudicate disputes
  • Council of Ministers: acted as a break to supranationalism
  • Common Assembly: composed of delegates of national parliaments for an appearance of democratic accountability
• Treaty of Paris in 1951: created the ESCS
• Treaty of Rome in 1957: was the founding treaty of the EU
  • Created the European Economic Community (EEC) and Euratom
    • Euratom: researched and regulated nuclear energy
• EEC committed 6 countries to the creation of a common market
• Harmonization of economic policies were to be completed within 12 years
• Agreed to remove restrictions on internal trade, have a common external tariff, and to reduce barriers to the free movement of people, services and capital
• Development of Common Policies include
  • Development of Common Agricultural Policy (CAP); subsidize and protect European agricultural production
  • France (largest agricultural) would not join EU unless there was subsidization of common agriculture
  • Development of common transportation policy
  • Creation of European Social Fund: job education
  • Creation of European Investment Bank (EIB): long term lending institution to finance projects in Europe

Shaping of the European Economic Community

• Importance of French President Charles de Gaulle (1958-1969)
• Positive and negative aspects thanks to de Gaulle include the creation of CAP (common agricultural policy)
• France wanted economic rejuvenation, de Gualle wanted to modernize French agricultural sector by
  • Keeping Britain out of Europe
  • Curtailing the powers of the European Parliament and the Commission
• Common Agricultural Policy provided EEC wide-outlet for French produce
  • Guaranteed high agricultural prices regardless of low prices on the world market
  • Subsidized the exports of surplus produce outside the EEC (European goods can be cheaper on the international market)
• Good: Ensured food security and helped farmers
• Bad: Created a bit of a trade war with undeveloped countries and was very expensive (70-80% of the budget was going to CAP)
• The British counter to EEC created the
• EFTA (European Free Trade Area)
• Established November 1959
• Membership of EFTA: Britain, Austria, Denmark, Norway, Portugal, Sweden, and Switzerland
  • EFTA had no political aspirations and little institutional structure
• August 1961: Britain applied for membership to the EEC
• The British wanted to join due to decline of EFTA and success of EEC
• Commonwealth was an inadequate vehicle to promote British interest
• Businessmen and gov't leaders became convinced EEC membership was key
• Britain was rebuffed twice
• Britain was seen as a threat to the importance of France in the German-Franco axis who founded the EEC
  • Fear of close British association with US
• German-Franco axis: Adenauer and de Gaulle had a close relationship
• 1950s and 60s Europe saw high levels of growth and an escalation of international trade
• EEC's economic success facilitated the assertion and general acceptance of its international identity
• Paralysis of the Community in the 1970s, called Eurosclerosis, Euroskepticism, Europessimism
• 1965 Empty Chair Crisis: sought to
  • Reform CAP
  • Give Commission and Parliament more budgetary powers
  • Qualified Majority Voting in the Council (moving away from unanimity)
• de Gualle pulled out all the French council members when nothing could happen in the EEC
• Luxembourg Compromise: “in cases of vital national interest of one member state the Council would aim to find a consensus solution, thus creating a de-facto veto”; does not change anything
• de Gaulle resigns in 1969

Eurosclerosis/Europessimism

• 1971 had a currency crisis in Europe due to Nixon's suspension of the gold standard
  • European economies slipped into a recession in 1973
• 1973 had an Oil Embargo/Oil Crisis, where 63% of EEC oil needs were met by Middle East oil
  • Britain, Demark, and Ireland join the EEC
• The community had problems with
  • A paralyzed decision-making process and a weak Commision as well as with CAP cost being out of control
• A new French President Francoise Mitterrand was Pushing for growth of the French economy that strained EC solidarity
• Margaret Thatcher demanded a budget rebate on the claim the UK said that they were a net contributor and not a net beneficiary
• 1979 - Treaty of Accession of Greece, went into effect in 1981
  • First direct election of the European Parliament
• Inauguration of European Monetary Systems (EMS) to create European Currency Unit (ECU)
• 1979 Cassis de Dijon Case: concerned German prohibition on imports from other member of alcoholic beverages that did not meet minimum alcohol requirements
  • Great example of integration by establishing establishing mutual recognition
  • Involved Harmonization which is the idea of standardizing across the EU like with Pharmaceutical and Chemicals using REACH
  • Brussels Effect: ability of EU to shape regulatory regimes across the globe
  • Involved Denomination of origin
• Thatcher also became a strong proponent of market integration, reviving the EEC
• Members of the European Parliament began meeting informally to discuss reviving the EEC
• 1983: Led to the creation of: “Draft Treaty Establishing the European Union"
• 1986 Single European Act
  • gave the Commission a renewed sense of purpose by creating European Commission President Jacques Delors
    • 1986 saw Spain and Portugal join the EC and Ratification of the Single European Act (SEA) occurs when the members state agree to the treaties
  • The SEA sought to create a homogeneous internal economic area, restrict the use of unanimity in the Council of Ministers, enhance legislative role of the EP, give Greater executive power for the Commission
  • The SEA also created New initiatives in the Environment and Regional development policy
  • The act was an attempt at giving smaller regional governments more responsibility in regional development policy.

Treaties of the EU

• Treaty of Rome
• Single European Act
• Maastricht Treaty/Treaty of European Union (1993)
  • Purposes include
    • Prepare for Economic Monetary Union (EURO) as well as to deal with Citizenship and Common foreign and internal affairs policy
  • Main changes include
    • Establishment of the EU, the introduction of the co-decision procedure (giving Parliament more say in decision-making), inclusion of Defense, Justice and home affairs and the Reassertion of the principle of subsidiarity-
      • Subsidiarity: issues are dealt with at the lowest most appropriate level of government added to the EU
• Maastricht also added the Three Pillars which include
  • Pillar 1: the former EC of the treaty of Rome as modified by the SEA
  • Pillar 2: Common Foreign and Security Policy
    • CFSP principle is to safeguard the fundamental interests of the Community and to reinforce its world role
      • Decisions must be made unanimously
        • One of the problems with this pillar is unanimity
        • The pillar needed to be instated because of The war in Yugoslavia in 1991 where Germany recognized Croatia before the EC made a formal statement.
  • Pillar 3: Justice and Home Affairs-
    • Pillars 2-3 remained quite weak and the treaty puts more emphasis on Pillar 1
• The European Parliament is going to gain more power from these treaties
• Codecision is introduced allowing the european parliaments to have a veto in limited areas to address the democratic deficit when co-legislating with the Council.
• Treaty of Amsterdam (1999)
  • Purposes was to Reform of the EU institutions in preparation for the arrival of future member countries when the fall of the Soviet Union the EU was preparing to take in a bunch of the communist countries which would require Preparing Europe for enlargement
  • Main Changes included
    • More transparent decision making (extension of co-decision) in which Schengen becomes part of EU legal framework (Schengen Agreement of 1985) but happens outside integration
  • The Shengen agreement emerged out of concerns with Free movement of persons where member states wanted to only apply to citizens rather for everyone or just non EU
• France, Germany, Belgium, Luxembourg and the Netherlands created a territory without internal borders called Schengen
• What it does is that it allows the Signatory states to the agreement have abolished all internal borders in lieu of a single external border with
  • Common rules and procedures are applied with regards to visas for short stays, asylum requests and border controls
  • Cooperation and coordination between police services and judicial authorities have been stepped up to guarantee security within the Schengen area
• Not all countries cooperating in Schengen are parties to the Schengen area
  • Countries do not wish to eliminate border controls or because not fulfill the required conditions for the application of the Schengen acquis.
• Opt-out exists for ex: UK and the euro
• Denmark and Sweden have gotten a constitutional pass.
• Denmark has signed the Schengen Agreement but can still YET choose whether or not to apply any new measures taken under Title IV of the Amsterdam Treaty within the EU framework
  • Demark is bound by certain measures under the common visa policy and can opt in if they want to due to denmark's constitution
• Ireland and the United Kingdom were given opt out because they are a separate island they are able to monitor who comes in and out better that allows for
  • Part in some or all of the Schengen arrangements
    • If the Schengen Members States and the government representative of the country in question vote unanimously in favor within the Council
• In March 1999, the United Kingdom asked to cooperate in police and judicial cooperation in criminal matters (fight against drugs and the Schengen Information System (shared database for police security)
• In June 2000 Ireland asked for the same
• Nice Treaty (2003) was there to reform the institutions so that the EU can function effectively after reaching 25 member countries -The main changes involved methods for changing the composition of the Commision and redefining the voting system in the Council
  • Insteads of large countries getting two members in the Commission everyone gets one
• One of the interesting changes of the Nice Treaty is that the appointment of commission would be done be the EU Council in a closed room and would choose The EU Council of the EU would choose the president of the Commission while the EU Parliament would approve the President of the Commission.
  • the member states pick who they want to represent them in the commission which also goes before the EU parliament for an up or down vote
• A constitution was a Failed attempt at a Constitution (2002-2005) which was
  • Signed in Rome October 29, 2004 and was due to come into force on November 1, 2006 - if ratified by all members and rejected by France over war in Iraq
• Lisbon Treaty takes bits and pieces of the Constitution and puts them into a treaty to make the EU more democratic, more efficient and better able to address global problems( climate change), with one voice.
• The changes thanks to it included more power being passed on to the the European Parliament, a change in the voting procedures in the Council, citizens' initiative, a permanent president of the European Council, a new High Representative for Foreign Affairs, a new EU diplomatic service.
• The Co decision is called Ordinary Legislative Procedure because it is a Co decision: meaning It is a supranational organization that allows the power being given to institution protects sovereignty equally