The European Union

You Say You Want a Constitution?

What is the European Union?▪ A big nation?▪ A trade bloc?▪ A confederation?▪ A federation?▪ A Noble Peace Prize Winner?▪ Not “sovereign” yet!▪ However, whatever it is▪ It sure is complicated!

EU & Sovereignty

The EU is a supranational system An example of “McWorld”?

Sovereignty is shared between the member states and the EU

How much sovereignty are you willing to give up in order to gain the benefits of integration?

How O’Neil Sees The EU

Although advanced democracies all display a relatively high level of sovereignty, there has been movement toward more integration (blurring the lines between countries by creating common policies, rules, and tighter connections) and devolution (shifting power toward more local governments).

How O’Neil Sees the EU

The European Union (EU) is a prime example of integration.

The EU began its life as a small agreement among a handful of countries that dealt primarily with the production of steel and coal; today it includes more members and has grown in political and economic power.

How O’Neil Sees the EUBecause of its statelike institutions—the

European Commission, the Council of Ministers, the European Parliament, and the European Court of Justice (which rules on issues of EU law and settles disputes over legislation)—the EU has been called a supranational system—that is, a system where sovereign powers are shared among the members and held by EU institutions over the member states themselves.

The Dream

“Let us imagine a continent at peace, freed of its barriers and obstacles, where history and geography are finally reconciled.” Valery Giscard d’Estaing

Comparison to NAFTA

EU is a supranational political entity

▪ It uses economic means to a political end: European integration

NAFTA is a trade area▪ No supranational aims or

structures▪ No intention of unifying the

Americas into one political entity

You Say You Want a Constitution?

Increasingly, it is the EU that determines Europe’s laws and economy.

A third to a half of Europe’s legislation comes out of EU headquarters in Brussels.

Standardizing currency, taxes and regulations

You Say You Want a Constitution?

But the EU is not yet a union in the way that the US is.

◦ EU members may opt out of some provisions they dislike.

◦ Not all members use the Euro (e.g., the UK)◦ Sovereignty still resides in London, Paris,

Berlin and other national capitals.◦ Institutionally the EU structure is still

undemocratic◦ No concerted, unified foreign & security

policies.

Free to move

“Schengen”:

4 No police or customs checks at borders between most EU countries

4 Controls strengthened at EU external borders

4 More cooperation between police from different EU countries

4 You can buy and bring back any goods for personal use when you travel between EU countries

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EU Benefits

Economic integration (the internal market) Remove/lower transaction costs

▪ Tariffs & trade barriers Harmonize regulations

▪ Common standards and expectations Remove barriers on the movement of

goods, capital, & labor Common currency (Euro) makes it easier

to do business

O’Neil’s Take on the Euro Though not all EU members have joined, the

monetary union has helped increase the EU’s economic influence worldwide, as the euro has become a reserve currency that rivals the U.S. dollar.

However, the euro has also exposed significant economic tensions between EU members, as the Greek debt crisis highlights. Many are unsure of the future direction of EU monetary policy – whether it will result in further integration or in the disintegration of the euro.

A Common Currency

The Euro allows one measure of prices and values across Europe Increasing competition by stimulating

trade and investment across bordersHelp create a “European” identity

Reduce likelihood of repeating WWI & WWII

Increase the international power of the EU by creating a new “reserve currency”

The Euros Dark Side

Prevents individual countries from using monetary policy to deal with specific domestic economic issues

Interdependence is amplified Instability in one region affects other

regions Requires that member states take

responsibility for each otherMedia: How the Euro Caused the

Greek Crisis

The Euros Dark Side Banks in Euro zone are regulated by their

respective countries During the response to “Great Recession” there was

no coordination between various countries Many were forced to look to the IMF for help Little to no help for Spain and Portugal

Economic union prevented countries from resorting to currency devaluation for a quick boost to economy Would make exports cheaper

Weak political institutions didn’t help the situation

EU Terminology

Widening Enlargement (growth, expansion, broadening)

Who’s in? Who’s Out? EU grew to 27 member states

in ’07 28th (Croatia) added in 2013 500 million residents GDP about equal to U.S.

O’Neil’s Take on EnlargementEU membership has expanded, bringing the

total population of the EU to 500 million (compared to the U.S.’s population of a bit over 300 million), and their combined economy is as large as that of the U.S.

This enlargement has raised new issues and concerns, especially in the issues of immigration and jobs, as many of these new countries are considerably poorer than the original members. 

The Evolution of the EU Membership requirements

▪ A stable and functioning democratic regime

▪ Rule of law, human rights, protection of minorities

▪ A functioning market-oriented economy with the capacity to cope with market forces & competition

▪ Willingness & ability to accept and apply all EU laws and regulations

Thinking about the EU

The new Europe▪ Expansion forced debate

about governance▪ New members are

significantly poorer than others

▪ Many new countries had been ruled by Communists

Issues with EU EnlargementNewer countries mostly from eastern

Europe Former communist countries Cultural and historical differences from

western part of Europe Biggest future questions

▪ Where does “Europe” end?▪ Turkey▪ Ukraine

Issues with EU EnlargementEconomic differences

Most of the newer additions are poorer than the core countries

Sharing of resources between richer and poorer countries

Labor & capital Migration to the west for jobs Factories in the east for cheaper wages

EU Terminology

Deepening Integration (unity)

▪ Long-term goal: “We are not building coalitions of states, but we are uniting people.” (Jean Monnet)

Economic ▪ Common currency▪ Common trade regulations▪ Link national economies into one single

economic zone

EU Terminology

Deepening Political

▪ Governance institutions (European Parliament, Council of Ministers, the European Commission, etc.)

▪ Treaty of Lisbon added a “President” & “High Representative for Foreign Affairs and Security”

▪ “European” citizenship▪ Symbols associated with “government”?

The Evolution of the EU

Treaty of Lisbon, 2009 New powers for the

European Commission, European Parliament and European Court of Justice.

Removal of national vetoes in a number of areas

Deepening: Some early conclusionsCritics from the right blame EU

institutions for overreaching “Brussels' diktats” Too many rules and regulations Someone else (someone we didn’t elect)

is telling us what to do and how to do it!Critics from the left complain about a

“democratic deficit”

Conclusion: A Balance SheetWeaknesses

Democratic Deficit◦ Lack of participation by the public

◦ Low voting turnouts for European Parliament elections

◦ Not much control over the “executive” or the bureaucracy

◦ Anger over regulations, immigration rules, and financial policies

◦ Who is responsible?◦ Who is accountable?◦ How is accountability enforced?

Feedback

Little news coverage of EU and its politics

Voting rates lower than for national elections

▪ ≈ 43% in 2014 Alienation from/hostility

to EU politics widespread

The Rise of the Euroskeptics What is a Euroskeptic?

Generally opposed to both “widening” & “deepening”

Elections for MEPs 2014 Representatives of anti-EU parties were elected to

the European Parliament (≈100/751)▪ Many other MEPs are Euro-skeptics (1/3 ??)

Opposed to monetary union and economic policies Opposed to immigration

▪ For the same reasons as are many in the US▪ The “invasion of the Polish plumbers”

Political Culture and Participation in the EU

No sense of European patriotism

“Euroenthusiasts” and “Euroskeptics”

European integration is still very much an elite thing.

Political Culture and Participation in the EU

Political life remains almost exclusively national, not European

Media remain national, not European, except for Eurosport

Language differences remain

Democratic Deficit describes “distance” between citizens and EU decision making

The treaties – basis for democratic cooperation built on law

1952The European Steel and Coal Community

1958The treaties of Rome:

The European Economic CommunityThe European Atomic Energy

Community(EURATOM)

1987The European Single

Act: the Single Market

1993Treaty of European Union

– Maastricht1999

Treaty of Amsterdam2003

Treaty of Nice

2009Treaty of Lisbon

The Evolution of the EU◦ Creating the Common Market

Common Agricultural Policy (CAP), 1966

Single European Act, 1985 Maastricht Treaty, 1991 Schengen Agreement, 1994 Treaty of Nice, 2000 European Constitution, 2004

(failed) Treaty of Lisbon, 2009

Public Policy in the EU

The Common Agricultural Policy

▪ Huge, expensive program▪ Seems to inhibit free trade▪ Changes forced on EU by

global forces▪ Not extended to newest

members immediately

European Parliament

The EU institutions

Court of J ustice

Court of Auditors

Economic and Social Committee

Committee of the Regions

Council of Ministers(The Council) European Commission

European Investment Bank European Central BankAgencies

European Council (summit)

How the EU Works (media)European Council of MinistersEuropean CommissionEuropean Parliament

The European Council

Heads of State or Government Presidents and/or Prime Ministers

Highest –level policymaking body of the EU

The Council of Ministers

◦ The Council of Ministers Ministers from member governments

meet to deal with topics relevant to their portfolios

For example, if the topic is agricultural policy, the agricultural ministers from each country will participate

They decide on policies and adopt legislation

Complex system of “qualified majority voting” is an attempt to avoid gridlock of required unanimity

Council of Ministers – voice of the member states

4 One minister from each EU country4 Presidency: rotates every six months4 Decides EU laws and budget together

with Parliament4 Manages the common foreign and

security policy

Council of Ministers – how they vote

Most decisions in the Council are taken by "double majority".

A decision must have the support of at least:

• 55 % of the Member States (16 countries)

• Member States that represent 65 % of the EU's population

Voting at the Council of Ministers 352 total votes

France, Germany, Italy, UK: 29 votes each Spain, Poland: 27 votes each Romania: 14 votes Netherlands: 13 votes Belgium, Czech Republic, Greece, Portugal, Hungary: 12

votes each Austria, Bulgaria, Sweden: 10 votes each Croatia, Denmark, Ireland, Lithuania, Slovakia, Finland: 7

votes each Cyprus, Estonia, Latvia, Luxembourg, Slovenia: 4 votes

each Malta: 3 votes

“Qualified Majority” Voting

Votes weighted by countries’ populations Purpose is to resolve the old “big,

powerful states vs. smaller, weaker states.”

5 largest countries cannot band together and pass things over the objections of the others.

Nor can the smaller countries pass things over the objections of the largest.

Need a majority of the countries (15 states) AND a majority of the total votes (260/352)

The European Commission

Permanent executive of the EU Supervises work of 30 ministry-like

services Proposes laws (“right of initiative”) Supervises agreements, and implements

the decisions of the European Parliament & Council of Ministers

Commissioners nominated by their national government; approved by qualified majority of Council

Serve EU, not home countries (in theory)

The European Court of Justice

Court of First Instance Court of Auditors (EU finance cases) European Court of Justice

▪ Each government appoints one judge

▪ Broad constitutional jurisdiction▪ EU laws and regulations take

precedence over national law Charter of Fundamental Rights of the EU

4 Ensures price stability

4 Controls money supply and decides interest rates

4 Works independently from governments

The European Central Bank:managing the euro

Mario DraghiPresident of the Central Bank

Some Unique Offices

The European Ombudsman Investigates “maladministration” in EU

▪ Cases where an EU institution fails to do something it should have or does something it shouldn’t have.

The European Data Protection Supervisor Protecting personal information and

privacy

The Court of J ustice – upholding the law

28 independent judges,one from each EU country

4 Rules on how to interpret EU law4 Ensures EU countries apply EU laws in the same way

The European Parliament

Legitimacy increased after 1979 when MEPs were directly elected

“Co-decision” requires Council and Commission to consult and get Parliamentary approval or acquiescence without a unanimous Council vote

Approves all nominees to Commission

◦ The Complexities of EU Decision Making

The European Parliament – voice of the people

4 Decides EU laws and budget together with Council of Ministers4 Democratic supervision of all the EU’s work

Number of members elected in each country

United Kingdom11

21

74

73

13

I taly

I reland

21Hungary

Greece

96Germany

France

Finland

6Estonia

13Denmark

21Czech Republic

6Cyprus

11Croatia

18Austria

21Belgium

Total 751

73

20Sweden

54Spain

8Slovenia

13Slovakia

32Romania

21Portugal

51Poland

26Netherlands

6Malta

6Luxembourg

11Lithuania

8Latvia

Bulgaria 17

The European political parties

Greens/ European Free Alliance50

European Conservatives and Reformists70

Alliance of Liberals andDemocrats for Europe

67 European People’s Party (Christian Democrats)221

Non-attached members52

Total : 751

Progressive Alliance of Socialists and Democrats

191

European UnitedLeft - Nordic Green Left

52

Europe of Freedomand Direct Democracy48

Number of seats in the European Parliament per political group

(J une 2014)

From O’Neil (Echoes of “Jihad”) A second challenge to traditional state

sovereignty has been the tug of devolution from below.

Many political leaders in advanced democracies are concerned about public distrust of state power and advocate devolution to bring government closer to the public.

As with integration, there are critics of increasing devolution as it may polarize a society and undermine the capacity and autonomy of the central state.

The European State? Next steps?

▪ Membership for Turkey is next big question

The EU and national sovereignty▪ How much national

sovereignty has EU assumed?▪ Further regulation of trade will

be a demonstration of power of EU

Conclusion: A Balance Sheet

Major factor in post-WWII peace and prosperity

▪ “It has loosened borders, calmed nationalist sentiments that had inspired centuries of bloodshed and introduced a single currency, the euro.”

Demonstrates success of transnational organization

Conclusion: A Balance SheetWeaknesses

◦ No military◦ Often, lack of ability to enforce

laws & regulations. No effective macroeconomic institutions

to deal with EU-wide economic issues quickly & effectively (e.g., the southern European sovereign debt crisis)

One or two states can block responses Perception that the EU is a red-tape

monster, generating reams of minutiae on such matters as the interstate sale of bananas and the purity of cheese.

How EU laws are made

Citizens, interest groups, experts: discuss, consult

Commission: makes formal proposal

Parliament and Council of Ministers: decide jointly

Commission and Court of J ustice: monitor implementation

National or local authorities: implement

The Evolution of the EU

◦ Treaty of Lisbon, 2009◦ More political & economic

integration (“deepening”) A politician chosen to be president

of the European Council for 2 ½ years

A new post combining the job of the existing foreign affairs commissioner with the external affairs commissioner to give the EU more clout on the world stage,