European Union PDF

European Union -the EU is a trading bloc where all Member States enjoy close political, economic and social co-operation -there is free trade between the 27 Member States -each member contributes to the EU and shares the running costs of the union -they all contribute to the decision-making pro...

European Union -the EU is a trading bloc where all Member States enjoy close political, economic and social co-operation -there is free trade between the 27 Member States -each member contributes to the EU and shares the running costs of the union -they all contribute to the decision-making process when the European Union sets new policies and laws EU Values and Goals -peace in Europe -EU citizens have good lives -life is fair for all EU citizens and nobody is left out. -languages and cultures of all EU citizens are respected -there is a strong European economy EU Institutions 1. European Commission 2. European Parliament 3. Council of the European Union 4. European Council 5. European Court of Auditors 6. Court of Justice of the European Union Deregulation This has increased competition in the marketplace and reduced protectionism. In Ireland deregulation allows new business to enter the marketplace and offer Irish consumers value for their money.. Irish businesses now need to be more competitive. Deregulation of the electricity and airline sectors has offered choices and value for money for Irish businesses. Globalisation The growth in globalisation and multinational companies that produce high quality goods at low prices have made it difficult for indigenous firms to compete even on the home markets. Irish firms will need to become more competitive to profitably compete in world markets. Trend Explanation Irish Impact 14 European Commission -the executive body of the EU -made up of one commissioner from each EU country -their job is to defend the interests of the EU as a whole, rather than national interests -they oversee the day-to-day management of the EU -within the Commission the commissioners are the decision makers -Ursula Von Der Leyen is president of the European Commission -Mairead McGuinness is the Irish European Commissioner European Commission Function -consults externally with special interest groups and top experts on proposed laws -proposes new laws to the EU for discussion and adoption by the European Parliament and the Council of the European Union after external consultation -implements EU laws through EU regulations, recommendations, directives and decisions -supervises all Member States to ensure they are complying with and implementing laws -proposes the funding programmes and EU budget, making the decision on how EU funds are spent in each Member State European Parliament -the Members of the European Parliament (MEPs) are directly elected by voters in all Member States to represent EU citizens’ interests with regard to EU law-making -they make sure other EU institutions are working democratically -Ireland currently has 13 MEPs (will be increased to 14 as agreed in September 2023) European Parliament Function -discussing and debating proposed new legislation as proposed by the European Commission, before making any necessary amendments and sending it back to the European Commission, if required -discussing and debating the proposed EU budget, before making any necessary amendments and sending it back to the European Commission, if required -adopting the annual EU budget jointly with the Council of the European Union -supervising the EU, including who it funds and where it spends money 15 -appoints European Commission commissioners -can even dismiss the European Commission if it feels the Commission isn't working well Council of the European Union -the main decision-making body of the EU -in the Council, government ministers relating to the specific ministry topic from each EU country meet to discuss, amend and adopt laws, and to co-ordinate policies regarding to their specific ministry (eg all 27 education ministers gather to discuss EU education law) -the ministers have the authority to commit their government to the actions that were agreed in the meetings -has the final say as to whether proposed new legislation as proposed by the European Commission becomes law -any proposed law that it agrees upon is then decided upon in coalition with the European Parliament Council of the European Union Functions -negotiating and adopting proposed EU laws as proposed by the European Commission -adopting the annual EU budget jointly with the European Parliament -concluding agreements between EU and other countries or international organisations European Council -heads of Member States and the President of the Council and Commission make it up -the European Council is a body that defines the overall political direction of and priorities for the EU -they discuss and try to sort out complex issues facing the EU but do not have the power to decide on any new laws European Court of Auditors -the mission of the European Court of Auditors is to -contribute to improving the EU's financial management -promote accountability and transparency -act as the independent guardian of the financial interests of the citizens of the union 16 European Court of Auditors Function -acts as an external auditor of EU accounts to ensure sound financial management -acts as the EU's financial watchdog, warning policy makers of risks and guiding them in formulating new policies -carries out spot checks at various levels within the EU to ensure that taxpayers of European receive value for their tax paid money -provides an annual report to the European Parliament outlining details of the last financial year for the EU Court of Justice of the European Union -the CJEU interprets EU law to make sure it is applied in the same way in all EU countries -it settles legal disputes between national governments and EU institutions -it imposes fines on members states that break EU law -the CJEU has 27 judges, one judge per member state EU Decision Making Process 1. The European Commission drafts and proposes legislation. 2. The European Parliament discusses proposals, seeks opinions from interested parties and puts forward amendments to legislation to the European Commission. 3. The Council of the European Union decides on legislation drafted by the European Commission and discussed by the European Parliament. 4. If the Council of the European Union agrees to the proposal, there is co-decision on the proposal is passed or not with the European Parliament. 5. Once legislation is passed by the Council of the European Union and the European Parliament, it is the European Commission's responsibility to ensure it is implemented using regulations, directives and decisions. EU Law Implementation (R2D2) 1. Regulation 2. Recommendation 3. Decision 4. Directive 17 Regulation -a legislative act of the EU -it becomes enforceable immediately as law in all Member States -it takes precedence over national law -it is self-executing, which means no action is required by the Member State -uniformity is achieved as all member states apply the regulation in an identical ways -eg the EU Passenger Rights Regulation is in place to protect passengers against the inconvenience caused by long wait times or flight cancellations that an airline had the power to prevent, it applies in any EU airport in which passengers either start or finish their journey Recommendation -these are opinions and are not legally binding -they are only a form of advice to the government in Member States Decision -a legal instrument the EU can use that is binding upon specific people or countries -the decisions are binding, but only on those to whom they are addressed -they may apply to one, some or all member states or to individuals or companies. -common uses of decisions involve the European Commission ruling on proposed mergers and day-to-day agricultural matters, such as setting standard prices for vegetables -eg the European Commission found that Microsoft was abusing its dominant market position and was fined Directive -a legal instrument to implement and enforce EU law in member states -the EU sets out a desired result that each Member State must achieve by a certain date -if they fail to implement the directives within the time limit, the government may face fine -allows the Member State flexibility in how it reaches the desired outcome, each government decides how it will implement the directive, taking into account its own particular circumstances 18 -requires each member state to amend their national laws to take account of new rules -directives are used to bring different national laws into line with each other and are common in matters affecting the operation of the single market -eg the Waste Electrical and Electronic Equipment (WEEE) Directive sets criteria for the collection, treatment and recovery of waste for electrical and electronic equipment. Role of Special Interest Groups in EU -special interest groups attempt to influence the political and decision-making process but are not part of the accepted political structure -they have an important role in the EU decision-making process, particularly during the consultation stage Special Interest Groups Role -lobbying = they put pressure on EU decision-making bodies to try to influence their decisions by promoting their group's point of view -information campaigns = they gather and release data to support their argument -public protest = they have demonstrations to raise awareness of their issues, some special interest groups have permanent offices in Brussels and Strasburg and put pressure on Members of the European Parliament and the Commission through demonstrations and publicity -eg in 2019, the IFA protested outside the EU's Food and Veterinary Office about falling beef prices, which have caused a crisis for Irish beef farmers EU Common Policies 1. Economic and Monetary Union (EMU) 2. Common Agricultural Policy (CAP) 3. Common Fisheries Policy (CFP) 4. Competition Policy 5. EU Social Charter 19 Economic and Monetary Union (EMU) -the European EMU is made up of 19 of the 27 Member States that have adopted the Euro -other countries outside the EU also have the euro as their official currency eg the Vatican -there are many advantages to Ireland of being a ember of the EMU Benefits of Irish EMU Membership -transaction costs = Irish businesses do not have to pay to change currency when dealing with other EMU countries, previously they had to pay a charge to do this thus reducing transaction costs of doing business -exchange rate risks = Irish businesses do not face the risk of the currency strengthening or weakening against other EMU states, which makes exports more stable and certain -price comparisons = a single currency highlights price differences for similar products without the need to calculate currency exchange rates, businesses sourcing raw materials and components can readily identify the best bargains throughout the EU on the internet -price stability = the European Central Bank (ECB) has a monetary policy that focuses on price stability, and it will act to reduce inflation if it is too high (to an optimal of 2%), this includes changing interest rates for the Eurozone, low interest rates set by the ECB facilitate business expansion and investment, the main stated aim of the ECB is to maintain inflation at or close to 2 per cent (Unit 6 Notes page 27) -FDI benefit = Ireland's common currency attracts foreign direct investment because trade within a large European market is less bureaucratic and relatively cheap, increased FDI has positive side effects for Irish indigenous industry Common Agricultural Policy (CAP) -this policy aims to support farmers and improve agricultural productivity -it ensures a stable supply of affordable food from Europe -the policy ensures a reasonable standard of living for farmers -the CAP has quality logos with which it promotes European products which ensures that food is safe and traceable and that farmers continually improve their production standards 20 CAP Impact in Ireland -helps to promote a fair standard of living for farmers, who have always seen their average income lag behind average industrial earnings, it gives farmers direct payments to ensure they have a reasonable standard of living -it stabilises agricultural markets and regulates prices so that farmers can be assured there will not be huge fluctuations in the prices they receive for their annual output -Irish agriculture benefits from money from the EU structural funds, this funding is for direct payments and investment by the EU into rural development programmes -CAP preserves and restores Irish rural infrastructure -the allocation of CAP funding proposed for Ireland for the 2021 – 2027 period is €8.148 billion in direct payments and €1.853 billion in rural development funding Common Fisheries Policy (CFP) -a set of rules for managing European fishing fleets and conserving fish stocks -designed to manage a common resource -it gives all European fishing fleets equal access to EU waters and fishing grounds and allows fishermen in Europe to compete fairly -fish is renewable but also finite; overfishing is a threat to the fish in our waters -the CFP helps Ireland, as it guarantees a steady supply of fish products at reasonable prices for consumers while supporting Irish fishermen so they do not lose their jobs CFP Impact in Ireland -the EU can limit access to fishing grounds, this means that Irish coastal waters are reserved for fishermen from local ports -Irish fish stock is conserved due to rules regarding fishing net mesh size, limiting access to Irish waters protects against overfishing so fewer young fish are caught -the CFP helps to market and sell fish in Ireland, it aims to stabilise the Irish market so that there is a steady supply of fish at a reasonable price for the Irish consumer while also supporting local fishermen -the CFP promotes and pays for fishing marketing campaigns to encourage fish sales -the CFP provides monitoring aid to Ireland for Irish waters through fishery protection vessels and aircraft for authorities 21 Competition Policy -this policy ensures that there is always fair competition within markets -this means more choice for consumers and less chance of exploitation by sellers -also stops large firms from putting small firms under pressure to supply them exclusively -it gives the small business more choice and does not restrict them -eg in 2017 the EU blocked Ryanair's takeover bid for Aer Lingus, as it would have resulted in a lack of competition in the market Competition Policy Impact in Ireland -competition among suppliers leads to better quality goods and services through suppliers competing for the business of Irish consumers -it restricts Irish businesses from forming anti-competitive cartels, keeping prices artificially high or preventing newcomers from entering the market (Unit 6 Notes page 42) -it controls the growth of large mergers and takeovers, this ensures that Irish businesses operate fairly and that consumers benefit (Unit 5 Notes page 53) -the European Commission can fine companies for any unfair practices EU Social Charter -also known as the Council of Europe Treaty -the charter guarantees a broad range of human rights to European citizens related to employment, housing, health, education, welfare and social protection -the charter specifically emphasises the protection of vulnerable people such as children, the elderly people with disabilities and migrants -it requires that enjoyment of these rights is guaranteed without discrimination -the charter is particularly beneficial to Ireland when the economy is doing well and the country is experiencing economic growth as Irish businesses will find suitable staff more easily during labour shortages, as people can migrate to this country to fill positions EU Social Charter Impact in Ireland -the charter allows for free movement of labour between Member States, this means that workers have the right to migrate freely, this benefits employers in terms of recruitment and selection 22 -employees have the right to a fair wage, the establishment and enforcement of the minimum wage level has increased costs for business -health protection and safety at work sections in the charter have forced employers to improve health and safety conditions in the workplace, this adds to costs but should also help to keep staff happy and mean a lower staff turnover for businesses -employees can only work a maximum of 48 hours a week and have the right to public holidays and 29 days’ paid annually holidays, this is an extra cost for businesses and limits employers to how much overtime it can incur -it gives citizens the right to social protection, at times this can act as a barrier to incentivise employment as the current tax system means it is often not financially worthwhile for some peoples to work rather than claim social benefit Reasons to Stay in EU -single European market SEM = the creation of the SEM in 1993 eliminated trade barriers within the EU, allowing for the free movement of goods, services, labour and capital (the four freedoms) between Member States, if Ireland left, barriers would be re-introduced, reducing freedom -market access = Ireland has access to a large market in the EU (more than 500 million people) leading to greater economies of scale should Irish companies expand, it also helps to diversify the risk faced by businesses, as they can easily sell in other EU markets -CAP = farmers under the Common Agricultural Policy, receive income support measures eg Between 1973 and 2008, Irish farmers received €44 billion from the CAP -infrastructure = Ireland's infrastructure has been funded by the European Regional Development Fund and the European Cohesion Fund eg €17 billion was spent to improve the roads and public transport -FDI = as a member of the EU with open access to the EU market, the Irish economy attracts foreign direct investment, thereby creating employment opportunities -single currency = the introduction of the single Euro currency brought additional incentives for foreign investors to locate to Ireland, along with relative price stability, the Euro has made life easier for Irish business and travellers trading or visiting the Eurozone -public procurement = Irish firms can tender for foreign government contracts in any EU member state, increasing Ireland’s chances of winning procurement bids in EU countries 23 -common external tariffs = the EU has a common system of barriers on goods imported from outside the EU which protects Irish industry Reasons to Leave EU -regulations = the EU places extra regulations on businesses, which increase costs eg the airline compensation regulation and changes to roaming charges for mobile phones -reduced control = the Irish government does not have complete control over its decisions, Ireland is subject to EU regulations, which are binding immediately and take precedence over national laws -Brexit = Brexit has created uncertainty for Ireland's economic future, much of Ireland’s agri-food exports go to the UK and if tariffs and quotas are placed on the UK by the EU, Irish exporters will become less competitive but if Ireland left the the EU, the country could negotiate its own trade terms with the UK -housing demands = the free movement of labour has seen a huge increase in the demand for housing and rental accommodation, especially in urban areas as people come to take up jobs in Ireland -tax harmonisation = a push towards harmonised tax rates between Member States could damage Ireland's competitive edge in attracting FDI, if the country's 12.5% corporation tax rate was brought in line with other Member States, MNCs might relocate out of Ireland -EU fines = Ireland might face fines for its business behaviours such as granting tax breaks, if Ireland was not in the EU, the government could offer whatever business incentives it wanted to keep MNCs here eg the European Commission found that Ireland granted undue tax benefits to Apple worth €13 billion -sovereignty loss = some believe that the introduction of a single currency reduces national sovereignty -employment competition = under the SEM’s four freedoms, EU citizens can freely compete for jobs against Irish workers, cheaper labour may displace Irish workers eg some MNCs (Dell relocated from Limerick to Poland) have relocated due to high wage costs in Ireland -public procurement = EU Member State firms can tender for Irish government contracts, this reduces the ability of Irish firms to compete and survive