European Integration Lecture Notes PDF

25/11/2023 Bachelor of European Studies Academic year 2023-24 EUROPEAN INTEGRATION Block 3: Legal-Political Foundations Lecture 1: The Story of the European Communities Prof. Dr. Jan Wouters (KU Leuven) 1 1 Structure 1. The 1950 Schuman Declaration 2. The 1951 Paris Treaty 3. The 1957 Rome Tr...

25/11/2023 Bachelor of European Studies Academic year 2023-24 EUROPEAN INTEGRATION Block 3: Legal-Political Foundations Lecture 1: The Story of the European Communities Prof. Dr. Jan Wouters (KU Leuven) 1 1 Structure 1. The 1950 Schuman Declaration 2. The 1951 Paris Treaty 3. The 1957 Rome Treaties 4. Supranationalism and the “Community method” 5. The original policies and how they developed NB: To understand the flow of the Treaties through which European integration was shaped, read Council, A Union of Law: from Paris to Lisbon 2 2 25/11/2023 1. The 1950 Schuman Declaration (I) “World peace cannot be safeguarded without the making of creative efforts proportionate to the dangers which threaten it. The contribution which an organized and living Europe can bring to civilization is indispensable to the maintenance of peaceful relations. … Europe will not be made all at once, or according to a single plan. It will be built through concrete achievements which first create a de facto solidarity. The coming together of the nations of Europe requires the elimination of the age-old opposition of France and Germany. Any action taken must in the first place concern these two countries. With this aim in view, the French Government proposes that action be taken immediately on one limited but decisive point.” 3 3 1. The 1950 Schuman Declaration (II) “It proposes that Franco-German production of coal and steel as a whole be placed under a common High Authority, within the framework of an organization open to the participation of the other countries of Europe. The pooling of coal and steel production should immediately provide for the setting up of common foundations for economic development as a first step in the federation of Europe, and will change the destinies of those regions which have long been devoted to the manufacture of munitions of war, of which they have been the most constant victims. The solidarity in production thus established will make it plain that any war between France and Germany becomes not merely unthinkable, but materially impossible. The setting up of this powerful productive unit, open to all countries willing to take part and bound ultimately to provide all the member countries with the basic elements of industrial production on the same terms, will lay a true foundation for their economic unification.” 4 4 25/11/2023 1. The 1950 Schuman Declaration (III) “This production will be offered to the world as a whole without distinction or exception, with the aim of contributing to raising living standards and to promoting peaceful achievements. With increased resources Europe will be able to pursue the achievement of one of its essential tasks, namely, the development of the African continent. In this way, there will be realised simply and speedily that fusion of interest which is indispensable to the establishment of a common economic system; it may be the leaven from which may grow a wider and deeper community between countries long opposed to one another by sanguinary divisions. By pooling basic production and by instituting a new High Authority, whose decisions will bind France, Germany and other member countries, this proposal will lead to the realization of the first concrete foundation of a European federation indispensable to the preservation of peace. To promote the realization of the objectives defined, the French Government is ready to open negotiations on the following bases.” 5 5 1. The 1950 Schuman Declaration (IV) “The task with which this common High Authority will be charged will be that of securing in the shortest possible time the modernization of production and the improvement of its quality; the supply of coal and steel on identical terms to the French and German markets, as well as to the markets of other member countries; the development in common of exports to other countries; the equalization and improvement of the living conditions of workers in these industries. To achieve these objectives, starting from the very different conditions in which the production of member countries is at present situated, it is proposed that certain transitional measures should be instituted, such as the application of a production and investment plan, the establishment of compensating machinery for equating prices, and the creation of a restructuring fund to facilitate the rationalization of production. The movement of coal and steel between member countries will immediately be freed from all customs duty, and will not be affected by differential transport rates. Conditions will gradually be created which will spontaneously provide for the more rational distribution of production at the highest level of productivity.” 6 6 25/11/2023 1. The 1950 Schuman Declaration (V) “In contrast to international cartels, which tend to impose restrictive practices on distribution and the exploitation of national markets, and to maintain high profits, the organization will ensure the fusion of markets and the expansion of production. The essential principles and undertakings defined above will be the subject of a treaty signed between the States and submitted for the ratification of their parliaments. The negotiations required to settle details of applications will be undertaken with the help of an arbitrator appointed by common agreement. He will be entrusted with the task of seeing that the agreements reached conform with the principles laid down, and, in the event of a deadlock, he will decide what solution is to be adopted. The common High Authority entrusted with the management of the scheme will be composed of independent persons appointed by the governments, giving equal representation. A chairman will be chosen by common agreement between the governments. The Authority's decisions will be enforceable in France, Germany and other member countries. Appropriate measures will be provided for means of appeal against the decisions of the Authority.” 7 7 1. The 1950 Schuman Declaration (VI) “A representative of the United Nations will be accredited to the Authority, and will be instructed to make a public report to the United Nations twice yearly, giving an account of the working of the new organization, particularly as concerns the safeguarding of its objectives. The institution of the High Authority will in no way prejudge the methods of ownership of enterprises. In the exercise of its functions, the common High Authority will take into account the powers conferred upon the International Ruhr Authority and the obligations of all kinds imposed upon Germany, so long as these remain in force.” 8 8 25/11/2023 1. The 1950 Schuman Declaration (VII) • The Schuman Plan was a peace project: symbolism of the date (9 May), first paragraphs, reference to war between FR and D becoming “not merely unthinkable, but materially impossible” • For FR, it was also about anticipating to D’s economic reawakening and lifting of limitations on steel production (dominance of the Ruhr) : how to tackle the “German issue”? => European integration instead of expropriation, fragmentation and disarmament • For D it was a way to get rid of occupation and obtain Gleichberechtigung • The US (Secretary of State Dean Acheson) had pressed Schuman in Dec 1949 for “a more constructive approach” to the German question 9 9 2. The 1951 Paris Treaty (I) • June-August 1950: first sessions of intergovernmental conference between six participating countries – Belgium, France, West Germany, Italy, Luxembourg and the Netherlands • Idea of “supranationalism” was not popular: e.g.  NL insisted High Authority would be clipped  New organ was created, Council of Ministers, to “harmonize” activity of HA with economic policies of Member States • Second phase of negotiations was complicated by the need to have Germany agree on re-organizing coal and steel industry (breaking up of trusts) • Essential role of US diplomacy : “If Robert Schuman made the initial offer of a new community, the Americans made possible its realization” (A.W. Lovett, ‘The United States and the Schuman Plan. A Study in French Diplomacy 19501952’, 39 The Historical Journal 1996, 425, at 452) 10 10 25/11/2023 2. The 1951 Paris Treaty (II) • Signature ECSC Treaty: Paris, 18 April 1951; entry into force: 23 July 1952; expired 23 July 2002 • High Authority started 10 August 1952 in Luxembourg • First President of the High Authority: Jean Monnet (1952-54); resigned after failure European Defense Community 11 11 12 25/11/2023 2. The 1951 Paris Treaty (III) Institutional balance under the ECSC Treaty Four institutions 13 13 2. The 1951 Paris Treaty (IV) • High Authority: general responsibility for ensuring that objectives Treaty were attained, including making binding decisions Compare current Article 17 TEU: Excerpt Article 9 ECSC Treaty: 14 The Commission shall promote the general interest of the Union […] In carrying out its responsibilities, the Commission shall be completely independent. Without prejudice to Article 18(2), the members of the Commission shall neither seek nor take instructions from any Government or other institution, body, office or entity. They shall refrain from any action incompatible with their duties or the performance of their tasks. 14 25/11/2023 2. The 1951 Paris Treaty (V) • Council: mainly consultative role with a view to “harmonizing the action of the High Authority and that of the governments, which are responsible for the general economic policy of their countries” (Art 26); in some cases concurrence (consent) with decisions HA needed (Art 28) • Assembly: Members selected by their national parliaments. Right to ask questions and to dismiss High Authority through motion of censure (Art 24) • Court of Justice: “The function of the Court is to ensure the rule of law in the interpretation and application of the present Treaty and of its implementing regulations.” (Art 31; French: “assure le respect du droit”) 15 15 2. The 1951 Paris Treaty (VI) Was the ECSC a success? • It advanced European integration and made war impossible • Policy-wise it was a failure: reconcentration instead of decartelization; paralysis of the HA • After French Assemblee’s rejection of European Defense Community in August 1954 consensus grew (Messina Conference, Spaak Report) that more ambition was needed:  not single sectors of economy but “complete integration” (Vollintegration), common market  Approach would be (i) no programme but commitment; (ii) decisionmaking not by a supranational authority, but by a Council representing interests of national governments 16 16 25/11/2023 3. The 1957 Rome Treaties (I) Treaty establishing the European Economic Community (EEC) Objectives Institutional framework 17 17 3. The 1957 Rome Treaties (II) Activities 18 18 25/11/2023 3. The 1957 Rome Treaties (III) Treaty establishing the European Atomic Energy Community (Euratom) Objectives Tasks 19 19 4. Supranationalism and the “Community method” (I) The Community method in the EEC Treaty was different from ECSC: “La Commission propose, le Conseil dispose” 20 European Commission:  - performs duties “in the general interest of the Community with complete independence” (Art 157(2) EEC)  - exclusive right to propose Community legislation  - carries out common policies (eg agriculture, transport, competition, common commercial policy) and represents EEC externally Council: - - Represents governments of Member States - - Decision-making power legislation / budget / agreements - - Votes in certain fields with qualified majority (QMV), with smaller MS relatively overrepresented in weighting of votes - 20 25/11/2023 4. Supranationalism and the “Community method” (II) European Parliament (Assembly):  - Originally merely consultative role in legislative process  - Calls itself “European Parliament” from 1962 onwards - - 1970/75 granted budgetary powers - - 1979 first direct elections - - Gradual upgrade in legislative process: cooperation procedure (1986 Single European Act) codecision procedure (1992 Maastricht Treaty) Court of Justice: - - More than an “administrative court” under EEC Treaty - - Crucial innovation: preliminary reference procedure (Art 177) - - In 1963/64 ECJ renders two landmark judgments which establish direct effect of Treaty provisions (Van Gend & Loos) and primacy thereof (Costa v Enel) 21 21 4. Supranationalism and the “Community method” (III) Intergovernmentalism strikes back: the Fouchet Plans 1961-62 • France (under President De Gaulle) proposed in 1961 a "Union of the European peoples" without supranational institutions; main objectives were a common foreign and defence policy + development of common heritage and protection of values • Adapted 1962 plan made some compromises but was still inherently intergovernmental • Rejected by Benelux countries; NL in particular feared subversion of NATO • France vetoes UK accession in 1963 and 1967 • In 1974 President Giscard d’Estaing obtains creation of European Council 22 22 25/11/2023 5. The original policies and how they developed (I) • EEC is in first place a customs union (completed July 1968), on the basis of which a common market is created:  Four fundamental freedoms (free movement of goods, persons, services, capital): “negative integration”  “Positive integration”: common policies for agriculture, transport, competition, trade + harmonization of laws • Original EEC plan was a 12-year transition period (1958-70), but objectives of full liberalization not achieved; in 1970s ECJ declares main Treaty provisions on free movement to have direct effect • Transition to QMV triggered the “empty chair” crisis with France (July 1965 – January 1966), resulting in the 1966 Luxembourg Compromise (“agreement to disagree”) with practical result: no voting anymore, decision-making by consensus in Council until 1986 Single European Act 23 23 5. The original policies and how they developed (II) The Community in the world since the 1960s: • Close association with 17 African countries and Madagascar to aid economic development • Association agreements with customs union with Greece and economic aid and trade facilities for Turkey • First bilateral trade agreements with Iran and Israel • Multilateral trade relations: EEC becomes major participant in “Kennedy Round” of GATT The 1970s brought financial turbulence, oil shocks, inflation, stagnation: “eurosclerosis”; but integration continued, inter alia with European Political Cooperation, creation of EMS, case-law ECJ (“Cassis de Dijon”) 24 24