EU Institutions Treaties CBF

8/12/2019 EU Institutions Treaties CBF

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From the European Community

to

the European Union

Since the first European CommunityECSCwas crated, European integration

has advanced in many ways.

Enlargement

Development of Policy Process

Development of Policies

Treaty Development

Concluding Remarks


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Treaty Development

1951 (Paris) and 1957 (Rome):Founding Treaties of the EuropeanCommunities;

In response to pressures for theEC/EU Treaty framework to beextended, strengthened, and mademore democratic, the FoundingTreatiesespecially the EEC Treaty

have been amended and

supplemented by subsequentTreaties;

Political, social, economic inputs;


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Merger Treaty

Signed: April 1965;

Coming into force: 1967;

Established a single Council of Ministers for all

the three Communities and merged the HighAuthority, the Commission of Euratom and the

EEC Commission into one Commission.

Merged bodies exercised power based on theFounding Treaties: the Treaties and the

Communities were non merged.


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Beginning 1980s: A Maze of Problems

Accumulation of many problems and needs;

As the 1980s began:

The prospect of disproportionately high UK payment to the budget;

The threatened exhaustion of budget resources, allied to the need to

curb the amount spent on the Common Agriculture Policy (CAP); The need to reform the Communitys Institutions in order to speed up

decision-making and to make them more accountable;

The need to respond to the technological challenge of the US and

Japan if Europe was not to become an industrial backwater;

The need to remove internal barriers within the Community;

The enlargement negotiation with Spain and Portugal (they werefeeling uncertaintygrowing frustration );


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The UK Budget Problem

The UK budget problem for several years proved the mostintractable (partly because of the personalities involved,especially Mrs. PM Margaret Thatcher ).

UK : Unacceptably high net contributor

- Large importer of food (high amount in import levies);

- Small food producer was getting much less than its proportionateshare back in payments under the CAP;

1979: Margaret Thatcher PM; robust line in defense of UK interests(in May 1980 manages to obtain temporary agreement limiting

UK contribution for 2-3 years while a longer-term solution wassought)

- Thatschers hard-hitting product: 1980 Labour Partys Annualconference called for UK withdrawal from EC. Labours Manifestofor 1983 general election.

Intractable = (ro.) de nerezolvat; intratabi l


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Mitterrands Initiative and

Fontainebleau 1984 Councils unwillingness to apply the majority voting rules of the Rome

Treaty; MITTERRANDs ambition made his own considerable mark on the history

of the EC (like his predecessors, go down in history); He wanted to solve most of the open problems before the end of the

French Councils presidency in the first half of 1984;

He succeeded in June 1984: Fontainebleau Summit:

Agreement on the UK budget issue(based on a yearly rebate of 66% of the difference between its VATcontribution and its share of EC expenditure)

Increasing the Community own resources

(after bargaining with PM Thatcher, general limit of VAT contributionshould be raised from 1% to 1.4 %)

Restraining the agriculture spending(in the future agriculture spending would rise in each year by a smallerproportion than the overall rise in expenditure).

Cleaning the way for the admission of Spain and Portugal

Europe of Citizens: Adonnino (PietroI) Committee (Committeefor the Peopoles Europe):

Two Adonnino Reports


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White Paper on Single MarketSingle Market - European Councils 1982-1985: need for completion of the internal

market; - Entrepreneurs Pressure

- 1985: Brussels European Council in Marchinstructed the Commissionto drawn up a detailed program with specific timetable for completingthe single market by 1992.;

Milan European Council in June 1985: IGC:

Amending the Rome Treaty to enable QMV for most internalmarket issues;

Update Institutional EC structure;

The call from Brussels summit was soon answered by theCommission which produces a White Paperdrawn by Lord

Cockfield, the commissioner responsible for the internal market.WP listed some 300 measures for the internal market:

The removal of physical barriers;

The removal of technical barriers;

The removal of fiscal barriers;

Goal: 1992


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Single market and beginning of the

Jacques Delors Era

Cecchini Report

Jacques DelorsEra: 1985 (10 years Trio with Mitterrand + Kohl)Special chapter

Cecchini Report: the 1992 program was launched in the belief thatit would bring substantial economic benefits to the countriesand people of the Community;

For quantifying benefits: Committee of experts presided by PaoloCecchini, a recently retired senior EC official:

Cecchini reportpublished: 1988, survey of 11.000 industrialistsand econometric modeling:

Over 5-6 years cumulative impact would add 4.5 % to the GDP ofthe Member states;

- Reduction of price levels around 6%;

- Creation an extra 2 million jobs;

- Put Europe on an upward trajectory of economic growth lasting

into the next century.


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Cecchini reports aftermath >>>

October 1996: Commissions progress report on first 3years:

- GDP + 1.11,5%

- Investments 2.7 %higher

- Up to 900,000extra jobs

- Inflationmarkedly reduced

- BUT black spots, largely owing to the failure of somemember states adequately to enforce the single marketlegislation.


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Single European Act (SEA)

February 1986 First mayor set of revision of the Founding Treaties were incorporated

in the 1986 Single European Act.

*It was a mixed bag containing:

tidying up provisions; provisions designed to give the Community a broader policy remit;

Provisions altering aspects of Community decision-making:

More QMV in the Council of Minister (Complete Internal market 1992agreed in Milan by EurCouncil 1985;

- Cut democratic deficit: EP (1962 called itself EP) two stageslegislative procedure with cooperation procedure for some legislativeproposals.

Heralding the re-launch of the European Integration


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The Single European Act

Summit Milan June 1995 realized that more legislative measureswere required to give effect to the ambitious goals of the SingeEuropean Market.

Institutional updating required.

Most important measures:

Completion of internal marker = goal to be incorporated into theEEC.

A number of policy areas formally incorporated into the EEC Treaty:environment;research and technological development;economic and social cohesion.

Introduction of QMV for most internal market decision.

Introduction of a new legislative procedurethe COOPERATIONprocedure: the established consultation procedure was extended totwo readings.

Consultation procedure: EP asked for an opinion on Commissionproposal for legislation; once that opinion has given the Councilmay take whatever decision it wishes. Council decision previous EPopinion will be ruled invalid ECJ.


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SEA cont. 1

Cooperation procedure: second reading process: TheCouncil is confined to adopting a common positiontobe referred back to EP with explanation of its commonposition and reasons of ejecting EP amendments.

If EP is dissatisfied, in second reading it can exercisepressure in amending or rejecting the common positionby absolute majority vote. This vote is non veto, butpolitical weight and Councilcan overcome such situationand adopt with unanimous vote only; interinstitutional

bargaining.


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SEA cont. 2- Several legislative areaswere covered by cooperation, most of the

measures which have as their objective the establishment and

functioning of the internal market.

- EP role and potential influence further increased by the establishmentof a new ASSENT procedure.

Assent (ro. acord, consimmnt): necessary EPs assent by anabsolute majority of members for accessionof new members and

associationagreements.- European Political Cooperation (EPC)official Community term for

Foreign Policy Cooperation(increasingly practiced since early1970s outside the framework of the treaty framework, was put on alegal bases (but not by treaty incorporation).

- Legal recognition(but not by treaty incorporation ) to the Summit that

had been taking place since 1975 (1974 Paris) in the framework of theEuropean Council.

- Capacity of the ECJ extended and Court of First Instance established.

- European Parliament = legal denomination

- SEA = a boost to the integration process; but not everybody satisfied


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The MaastrichtTreatyEU (February 1992)

Significant advance SEA in 2 main ways:

1 - It created the new organization of the

EUROPEAN UNION based on three pillars:I - European Communities;

II - Common Foreign and Security Policy (CFSP);

III - Justice and Home Affaires (JHA);

2 - It furthered policy and institutional deepening

(laying down procedure + timetable x moving to

Economic Monetary Union (EMU) andco-

decision + more QMV.
http://www.europa.eu.int/comm/avservices/download/photo_download_en.cfm?id=13681


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The Maastricht Treaty Several Community decision-making elites - both in the Community

and in member states - were disappointed with insufficient advance ofthe integration process with SEA (Italy; G. Andreotti), signed later.

The origins of the Treaty

The internal factors

- For full benefits of the internal market: Economic and Monetary Unionand especially a single currency (eliminate distortions by changes in

value of currencies)

- Growing acceptance of a social dimension (companies left countrieswith high social provisions for counties with less ones).

- Dismantling of border controls in the internal market crated pressure

for more cooperation against cross-border crime, drug trafficking,international terrorism; movement of people and later growingconcern about threat of mass migration from North Africa andEastern Europe.

- Long-standing problem of democratic deficit


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The Maastricht Treatycont. 1

The external factors

- Collapse of communism in Central and Eastern Europefrom the autumn 1989=Europe wide issue and not justWE.

- Unification of Germany: European Germany of GermanEurope?

- Break-up of the Soviet Union in 1991: more sense ofuncertainty about the future nature and stability of theEuropean continent.

- Ending of the Cold War: foreign and defense policy ?


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The Maastricht Treatycont. 2

1988-1990: a series of European Councilmeetings led to a IGC on Political Union andEconomic and Monetary Union.

Most states wanted the word federalincluded.

UK: no! federal goal. UK: no!

Compromise:This Treaty marks a new stage in

the process of creating an ever closer unionamong the people of Europe, in which decisionsare taken as closely as possible to the citizen.


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The Maastricht treatycont. 4

Pillar one:the European Community

The European Economic Community was renamedEUROPEAN COMMUNITY;

The European Community became partof the European

Communities , which in turn became partof the EuropeanUnion;

Pillar one: Institutional changes:

A new legislative procedure: Co-decision procedure.

Policy area subject to cooperationtransferred out toco-decision.

Extension of assent procedure;

Term of office of the Commission beginning 1995 = 5years;


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Committee of the Regions;

Subsidiarity principle;

ECJ power to impose fines to the member states (failed

to implement Community law and to comply with its

judgments);

European Mediator ( Ombudsman) to by appointed by

EP (maladministration);


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The Maastricht treatycont. 6 Pillar one: Policy changes

The ECs policy competences extended and strengthened. Economic and Monetary Union

Inclusion on new policy areas (or policy previously not explicit):

-commitment of developing countries;

- education;

- public health;- consumer protection;

-trans-European networks and competitiveness of industry;

Further development of Community responsibilities first given treatyrecognition in SEA:

- research and technological development;

- environment;

- economic and social cohesion (a new Cohesion Fund wasestablished);

Social Charta:eleven states wanted to give firm treaty base to the

Charta; UK: no! Compromise: protocol.


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Pillar two: Common Foreign and Security Policy

Systematic cooperation; unanimity for common position

and national policy to be conform; Western European Union is an integral part of the

development of the Union;

Defense made its first formal appearance on the policy

agenda; Bases for a common defense;


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Pillar Three: Cooperat ion on the Spheres ofJustice and Hone

Affaires

In nine areasof common interests the Council could adopt jointpositions and promote any suitable firm of cooperation , withdecision taken by unanimity;

implementation of the joint actions by qualified majority;

1 asylum policy;

2 crossing by persons of the external borders of the member stats;

3 immigration policy and residence rights of third-country nationals;

4 combating drug addiction;

5 combating international fraud;

6 judicial cooperation on civil matters;7 judicial cooperation in criminal matters;

8 customs cooperation;

9 policy cooperation to combat terrorism, drug trafficking and otherserious crimes throw an EU-wide police intelligence office(Europol)


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EU citizenship;

- Right of free movement and residence;

- Vote and strand as candidate in municipal and EP elections

in countries of residence other than their own;

- consular protection;- Petition to EP;


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The Amsterdam Treaty

October 1997

It did noncomplete what had been intended to

be its main job (adjusting the composition of theEUs institutions x Enlargement).

Neverthelessit carried policy andinstitutional

deepening further:

- Strengthened the EUs decision-making capacity

in JHA;- extended co-decision procedure and virtually

abolish cooperation procedure.


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The Amsterdam Treaty

TEU specifies that another IGC should be

convened in 1996.

June 1995: Corfu European Council established

a Reflection Group; it recommended IGC:- Making Europe more relevant to its citizens;

- Enabling EU to work better and prepare for

enlargement;- Giving the EU greater capacity for external

action.


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The Amsterdam Treatycont. 1

Section 1: Freedom , Security and Justice

The Union is found on principles of liberty, democracy,

respect for human rights and fundamental freedom, and

the rule of law;Member states must respect these principles;

For the first time a state can be suspendedif violate this

principles

EU empowered to take action to combat discriminationbased on sex, racial or ethnic origin, religion or belief,

disability, age or sexual orientation.


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A number of JHA-related policy transferred to EC: Pillar

Three changed in character; new denomination

Provisions on Police and Judicial Cooperation in

Criminal Matters;

Schengen integrated into EU;


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Section II: The Union and its Citizens

The importance of the EU in promoting employment

(new chapter in the Treaty); Social chapter of the EC, from protocol in Maastricht,

became fully incorporated in the Treaty;

Subsidiarity and proportionality re-emphasized;

Upgrading of some policies (public health etc.); Enhancement of openness and transparency;


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Section III : An Effective and Coherent

External Policy

High Representative for Common Foreign and SecurityPolicy ; Secretary General of the Council;

Troika: president of the Council, HR and President of the

Commission (or his/her nominee);

Constructive abstention: issue a declaration: not obligesto apply the decision taken, whilst recognizing that the

decision did commit the EU;


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Incorporation of the so-called Petersberger tasks:

- humanitarian and rescue tasks;

- peacekeeping tasks;

- task of combat forces in crises management, including

peacemaking;

The EU leaders decide the EU needs its own militaryforce to back up CFSP;

Aim: within 3 years rapid reaction force (RF) of 60,000troops available in 60 days, crises till 2,500 miles awayin place at least for a year.


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Section IV: The Unions Institutions

- The cooperationprocedure was virtually abandoned(restricted to a handful of EMU decisions);

- The remit of co-decision was extendedto many newcases, making it the normal procedure for most policylegislation;

- More QMV;

- A number of changes regarding appointment of thePresident of the Commission and its members (treatystatus what de facto1994);


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Section V: Closer CooperationFlexibility

The more pro-integrationist member states dont want

being held back by the less integrationists states.Enhanced cooperation

Section VI: Simplification and Consolidation

of the Treaties


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The Treaty of Nice

February 2001

Intended to be limited in scope , restricted to dealing withthe Amsterdam leftover.

-Changes EU institutions composition andvoting strengthen and procedures in the Council

to

enable the EU to absorb applicant states without

undermining the EUs capacity to function intolerably efficient manner.

---------

Charta of Fundamental Rights of the EU (Dec. 2000,

follow up June 1999 Cologne summit)


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The Treaty of Nice

Adopted in December 2000;

Initially limited to the Amsterdam leftovers;

Main purpose: provide x EU institutional changes andpave the way x expected adhesion of many new memberstates during the first decade of the 21th century;

Parts of the Treaty were due to come to effect only in2005;


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The Treaty of Nicecont. 1The composition and functioning of the Institutions

The Commission:

- Nominees (more EP involvement)

- Since 1 member/state

- 27 or more member states: number will be decided; rotation (smalland large equally treated)

Council: QMV extended to more that 30 articles of the Rome Treaty, including

notably the appointment of the president of the Commission

- Reweighting of votes in Council(strengthened position largermembers)

QMV at least 62 % of total population (Constitution 55% 65%)

EP:Ceiling: 732 members

ECJ: Changes for enlargement


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The Treaty of Nicecont. 2

Enhanced cooperation:

At least 8 states, less than Amsterdam (majority)

Extension of co-decision and assent procedures.

---------------- Charter of Fundamental Rights (proclaimed)

EP: number of seats: maximum 732 members (750

Constitution)

Minor changes ECJ


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Treaty Establishing a

Constitution for Europe

June 2004

Constitutional Treaty and not Constitution

General principles Charta Human Rights

Policies

T t t bli hi C tit ti f


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Treaty establishing a Constitution for

Europe (CT)

Leaken 2001: Convention : ...in the future

of Europe

European Council, Brussels, June 2004

Rome, October 2004

Convention:new way, transparency,

openness, participation, civil society;

105 members: national Parliaments, EP,

Governments, E. Commission;


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Treaty Constitution cont. 1

IGC has largely taken on board Conventions

proposals (editorial modifications);

Key elements: EU has been buildin stages: difficult to

understand today;

With CT: One European Union replacingthepresent European Communities and the

European Union;


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CT

Three pillars will be merged, even ifsome special procedures CFSP will be

maintained;

EU, EC Treaties + all the treaties

amending and supplementing them will be

replaced by the Treaty establishing aConstitution for Europe;


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CT

Charter for Fundamental Right integratedinto the text:clear acknowledgment of the

Union values and objectives as well as the

principles underlying the relationships betweenthe Union an its Member States: elements of a

Constitution;

Clear list of competenciesand simplifies

legal instruments and procedures;

European laws


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CT

In legal terms, Constitution remains aTREATY: ratification of all member states;

Changes require ratification;

Exception: extension of scope of QMV =unanimous decision by European Council

will suffice (ro. a ajunge, a satisface, a fi suficient);

Enhanced cooperation;


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CT

A revised institutional framework

Clarification respective roles EP, Council,

Commission (near monopoly initiatives,representation EU externally)

Legislative procedure (95 % EP + Cons)

Creation of the post of Union ForeignMinister for Foreign Affaires


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LISBON TREATY(2007)

The Treaty signed by the Heads of State ofGovernment of the 27 Member States inLisbon on 13 December 2007will provide theEU with modern institutions and optimised

working methods to tackle both efficientlyand effectively today's challenges in today'sworld.

In a rapidly changing world, Europeans lookto the EU to address issues such asglobalisation, climatic and demographic

changes, security and energy. The Treaty ofLisbon will reinforce democracy in the EUand its capacity to promote the interests of itscitizens on a day-to-day basis.


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Enlargement

1951: 6(France, W Germany, Italy + Benelux(Luxemburg. Belgian, Netherlands)

1857: 6

1973: +3(UK, Ireland, Denmark)=9

1981: +1(Greece) =10 1986: +2(Spain, Portugal) =12

1995: +3(Austria, Sweden, Finland)=15

2004: +10(Slovak Republic, Slovenia, Czech

Republic, Hungary, Poland, Lithuania, Latvia,Estonia, Malta, Cyprus) =25

2007: +2(Bulgaria, Romania)=27

2013: +1(Croatia) =28


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Enlargements impact

All enlargements have inevitably affected and changed

the Union in important ways:

1. becoming bigger = become a more importantinternational organization (it contains European statestraditionally very influential);

2. the worlds principal commercial power;

3. EUs institution has grown in size to accommodaterepresentatives of acceding countries;

4. Internal decision-making has become more complex,because the wider range of national and politicalinterests to be satisfied;


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Enlargement cont. 1

5 enlargement driving factor x more QMV;6 Franco-German axis, though still strong in to set the pace

of integration process, is not quite so dominant as it was

before;

7 increase of small state has made more difficult for largerstates to push through their preferences;

8 Policy debate, concern and priorities have been affected

by new member states bringing with them their own

requirements, preferences and problems (first and secondenlargement towards South= less industrialized and poorcountries with agriculture quite different from the North);


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Enlargement cont. 2

8 Reorientation of CAP and redistributive policies

9 2004 enlargement: enormous political,

economical and social impact:

- 2001 updating just the beginning;

- solidarity;

- decision-making

- policy-making


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Development of Policy Process

The EUs policy portfolio has expanded steadily over theyears.

Stimulated end encouraged by:

- New Treaty provisions

- Increasing internationalism- Competitiveness of economic forces

- Growing recognition of the benefits of working together

- Integrationist pressures emanating from Institutions

(notably Commission and EP- Stimulus that policy development in one sphere has given

to development in other spheres (agriculture, newtechnology to Internal marker)


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Development of Policy Process cont. 1

Policies closed to the heart of EUs politicalframework = those related to the CommonMarker, now known as INTERNAL MARKET orSingle European Market

Policies designed to promote free movement of:goods, services, capital,people.

EU to act jointlyand present common a front inits economic and trade relations with third

countries Since 1992, considerable development ofmarket-basedpolicies


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Development of Policy Process cont. 2

Concentrations of the decision-makers:

- Establishment essential conditions forproducts standards, tasting and

certification ( Cassis de Dijon case-79-80)- Liberalization of national economies, including

monopolies and protected industries, liketelecommunication, energy.

- Social sphere: environment, consumerprotection, working conditions.

- Economic Monetary Union


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E i d M U i (EMU)


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Economic and Monetary Union (EMU)

European Monetary Union (EMU)

The idea of EMU discussed as far back as 1956 in the negotiationson the Treaty of Rome;

Bretton Woods 1944 agreements (fixed exchange rate referred toUS$ and gold-dollar standard) gave the negotiators hope (certainty)for stable system;

1962: the Commission indicated EMU as a necessity for functioningsingle market;

EMU recurrent issue;

Two major precursorsof the Maastricht Treaty:

1. The Werner Reportof October 1970 (Pierre Werner former PMLuxemburg) with contribution of the French commissioner foreconomic affaires Raymond Barre, proposed a plan for a EMU to befulfilled by 1980. Never achieved after Europe plunged into recessionin the mid-1979s.


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EMU fw.up 1

2. The European Monetary System (EMS) with two mainelements:

a basket of currencies(the ECU), weighted according tothe strengths of the participating currencies;

An Exchange rate Mechanism (ERM) with a permissibleband of fluctuation.

Initial band set at + 2,25, sustainable till the internationalcurrency crises of 1992, when Italian and Britishcurrencies were unceremoniously expelled from the

EMS and a new +15percent band was set up for theremaining members currencies.

EMU f 2


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EMU fw.up 2 The Delors Report

The SEA 1986 proposed EMU eventual goal of the EU, but didnt setout how to achieve it.

1988, at the Hannover European Council, the governments set up acommittee chaired by the Commissions President Delors to prepare areport on the best way to launch EMU (two commissioners, the 12

central bank governors of the MS, three independent expert) .

The final Delors Report delivered to the European Council proposeda particular model of EMU:

I : the monetary union should involve the irrevocable fixing of exchangerates;

II: economic union should involve: a single market; competition policiestostrengthen market mechanism; common policies aimed at structuralchangeand regional development; macroeconomics policycoordinationwith binding rules of on budget deficits.


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EMU fw.up 3

III: three stage plan:

- Stage I : establishment of free capital circulation;

- Stage II: establishment of e European SystemofCentral Banks;

- Stage III: fixing exchange rate and establishment of

en independent European Central Bank;

October 1990: Commission : One Marker, One Money

EMU f 4


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EMU fw.up 4Maastricht Treaty

-June 1990 Dublin European Council; call a IGC

x implementing Delors proposal;

-October 1990: Roma European Council: all,Thatcher against: Stage II of EMU in January

1994;

-Dec. 1990: Rome European Council launchedIGC;

Maastricht: Dec. 92, Feb. 1992

EMU f 5


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EMU fw.up. 5

Convergence Criteria:

1 - Price stability, inflation rate nor exceeding more the 1,5 %

that of the three best-performing member states;

2 - Government budget position annual not more that 3 % ofGDP, gross debt not more that 60 % of GDP;

3 - Interest rate: normal long-term interest rate not exceeding

by more then 2 % of the three best performing Member states;

4 - Currency stability: narrow band of the ERM (fluctuation of

less than 2.5 % around the central rate) for at least 2 years.


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EUs Sources

- The EUs sources of revenues have changed over the years

- ECSC financed by a levy on the production of coal and steelfirms;

- The general Community budget was originally financed by asystem on national contributions based on the GDP of themember states;

- In 1970 it was decided progressively to replace thesecontributions by the Communitys own resources, that althoughcollected mainly by the member states, belong to the Communityas a right;

EUs Sources fw up 1


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EU s Sources fw.up 1

EUs revenue at the present:

Customs duty, levied on products imported from outside the EU;

Agricultural levies, charged on imports of various foodstuff to bring theprice up to EU levels plus levies on products in surplus supply;

A proportion of value-added taxVAT (ro. Taxa pe valoarea adugat

- TVA).But for the largest element, originally maximum 1% of the finalselling price of a common base of goods and services. This limit wasraised to 1.4 % in 1986, but had gradually dropped back to 1 % by1999.

Contributions from member states.Based on the member states

share of the total GNP of the EU; the size of this contribution is to belimited to that which would bring the total revenue of the EU to amaximum on 1.2 % of the EUs GNP in 1993 and 1994, gradually risingto a maximun of 1,27 % in 1999.

Financal perspectives 2007-2013

Documents

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