Eu_ppt for Ib Project

8/8/2019 Eu_ppt for Ib Project

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The European Union

The European flagThe European anthem

The motto: United in diversity

Group No-8

Group members:-

1.Saugata Sarkar- Roll no-44

2. Naveen Kumar- Roll no-42

3. Mohan Murari- Roll no-





Brief of the presentation

• What is the European Union?

• How it came into existence- its evolution

and various treaties?

• What are the various EU Institutions?

• How laws are made in EU?

• What is Euro, its establishment, benefits

and costs.• Some basic statistics of EU.

• EU and the world.

• Future of EU.



What is the European Union?

• Largest economic body in the world.

• World’s most successful model for advancing

peace and democracy.

• A unique institution – Member States

voluntarily cede national sovereignty in many

areas to carry out common policies and

governance.

• Not a super-state to replace existing states,

nor just an organization for internationalcooperation.

• World’s most open market for goods and

commodities from developing countries.

27

7

30

490million

Member States

Combinedpopulation of

EU MemberStates

Percent of world’spopulation

Percent of global GDP

55Percent of combinedworldwide OfficialDevelopment Assistance

European Union



Member states of the European Union

Candidate countries

MAP of EU



The treaties – basis for democratic cooperation

built on law

1952The European Steel and Coal

Community

1958The treaties of Rome:

The European Economic

Community

The European Atomic Energy

Community

(EURATOM)

1987The European

Single Act: the

Single Market

1993Treaty of European

Union

– Maastricht

1999Treaty of

Amsterdam

2003Treaty of Nice



Evolution of EU

• EU is the product of two political factors:

1. Devastation of Western Europe during two World Wars and the desire for a

lasting peace.

2. The European nations’ desire to hold their own on the world’s political and

economic stage.

• In addition many Europeans were aware of the potential economic benefits

of closer economic integration of the countries.



Evolution of EU ..contd

ECSC-1952:

• EU of today is the result of a process that began half a century ago with the

creation of European Coal and Steel Community. Those two industries then

still provided muscle for military power and Robert Schuman, the then

French Foreign Minister affirmed on May 9 1950 in his declaration which

launched the project that “ any war between France and Germany wouldbecome not merely unthinkable but materially impossible.

• For France and Germany, which had been at war with each other three

times in the preceding eight decades, finding a way to live together in a

durable peace was a fundamental political priority that the new community

was designed to serve.

• Six founding countries – Belgium, the Federal Republic of Germany,

France, Italy, Luxembourg and the Netherlands – signed a treaty to run

heavy industries (coal and steel) under common management.




• Treaty of Rome -1958:

• The six founding countries expanded cooperation to other economic

sectors, creating the European Economic Community (EEC) – or “common

market” and European Atomic Energy Committee (Euratom)

• As a result, people, goods, services, and capital today move freely across

the Union.

• Merger Treaty –Brussels- 1967:

• Provided for a Single Commission and a Single Council for the then three

European Communities

• Enlargement of EU- 1973:

• UK, Ireland and Denmark join EC.

• Single European Act (SEA)-1987:

• Provided for the adaptations required for the formation of one single market

by Dec31, 1992.




• Treaty of Maastricht- 1993:

The Treaty of Maastricht which was signed in Maastricht on 7 February 1992,entered into force on 1 November 1993.

'The Maastricht Treaty changed the name of the European EconomicCommunity to simply "the European Community".

It also introduced new forms of co-operation between the Member Stategovernments - for example on defence, and in the area of "justice and homeaffairs".

By adding this inter-governmental co-operation to the existing "Community"system, the Maastricht Treaty created a new structure with three "pillars" which

is political as well economic. This is the European Union (EU).

Committed them to adopting a common currency –euro- by Jan 1999.



Evolution of EU ..contd• Treaty of Amsterdam :

The Treaty of Amsterdam, signed on 2 October 1997, entered into force on 1May 1999. It amended and renumbered the EU and EC Treaties. Consolidated

versions of the EU and EC Treaties are attached to it. The Treaty of Amsterdam

changed the articles of the Treaty on European Union, identified by letters A to

S, into numerical form.

Treaty of Nice:

• The Treaty of Nice, signed on 26 February 2001, entered into force on 1February 2003. It dealt mostly with reforming the institutions so that the Union

could function efficiently after its enlargement to 25 Member States. The Treaty

of Nice, the former Treaty of the EU and the Treaty of the EC have been merged

into one consolidated version.

Treaty of Lisbon:

• The Treaty of Lisbon was signed on 13 December 2007. Its main objectives are

to make the EU more democratic, meeting the European citizens’ expectations

for high standards of accountability, openness, transparency and participation;

and to make the EU more efficient and able to tackle today's global challenges

such as climate change, security and sustainable development.

http://eur-lex.europa.eu/en/treaties/dat/11997D/htm/11997D.html

http://eur-lex.europa.eu/en/treaties/dat/12001C/htm/12001C.html

http://europa.eu/lisbon_treaty/index_en.htm

http://europa.eu/lisbon_treaty/index_en.htm

http://eur-lex.europa.eu/en/treaties/dat/12001C/htm/12001C.html

http://eur-lex.europa.eu/en/treaties/dat/11997D/htm/11997D.html



1951

Founding

Members

Belgium

France

Germany

Italy

Luxembourg

Netherlands



1973

Denmark

IrelandUnited

Kingdom



1981

Greece



1986

Portugal

Spain



1995

Austria

FinlandSweden



2004

Cyprus

Czech RepublicEstonia

Hungary

Latvia

Lithuania

Malta

PolandSlovakia

Slovenia



2007

Bulgaria

Romania



Candidate

Countries

Croatia

Former Yugoslav

Republic of

Macedonia

Turkey

Potential

Candidate

Countries

Albania

Bosnia &

Herzegovina

Montenegro

Serbia



EuropeanParliament

Courtof

Justice

Courtof

Auditors

Economic andSocial

Committee

Committee of the Regions

Council of

Ministers(Council of the

EU)

EuropeanCommission

EuropeanInvestment

Bank

EuropeanCentral Bank

Agencies

European Council(summit)

EU Institutions



Citizens, interest groups, experts:discuss, consult

Commission: makes formal

proposal

Parliament and Council of Ministers: decide jointly

Commission and Court of Justice:monitor implementation

National or local authorities:

implement

How EU Laws are made



European Council Summit

Summit of heads of state and government of all EUcountries

Heldat least 4 times a year Sets the overall guidelines for EU policies



The European Commission – promoting

the common interest

•Headquartered at Brussels, Belgium• Consists 27 independent members, one from each EU country

• President of the Commission is chosen by member states and then

the President chooses other members in consultation with the

states.• Entire Commission has to be approved by the European Parliament.

• Has monopoly in proposing new legislation• Executive organ• Guardian of the treaties and monitors compliance with EU laws by

member countries• Represents the EU on the international stage



Council of Ministers – voice of

the member states

• Represents the interests of member states.

• Is clearly the controlling authority within the EU since draft legislation from the

Commission can become EU law only if the Council agrees.

• One minister from each EU country

• Presidency: rotates every six months

• Decides EU laws and budget together with Parliament

• Manages the common foreign and security policy



Council of Ministers – number of

votes per country

345Total:

3Malta

4Estonia, Cyprus, Latvia, Luxembourg and Slovenia

7Denmark, Ireland, Lithuania, Slovakia and Finland

10Austria, Bulgaria and Sweden

12Belgium, Czech Republic, Greece, Hungary and Portugal

13Netherlands

14Romania

27Spain and Poland

29Germany, France, Italy and the United Kingdom

“Qualified majority” needed for many decisions:255 votes and a majority of member states



The European Parliament – voice of the

people

Number of members elected in each country (January 2010)

United Kingdom12

22

72

72

13

Italy

Ireland

22Hungary

Greece

99Germany

France

Finland

6Estonia

13Denmark

22Czech Republic

6Cyprus

17Bulgaria

22Belgium

17 Austria

Total 736

72

18Sweden

50Spain

7Slovenia

13Slovakia

33Romania

22Portugal

50Poland

25Netherlands

5Malta

6Luxembourg

12Lithuania

8Latvia



The European Parliament –

voice of the people

Has 736 members directly elected by the population of the member

states

• Primarily a consultative rather than a legislative body.

• Debates legislation proposed by the Commission and forwarded to it

by the Council

• It can propose amendments to that legislation which the Commission and

ultimately the Council are not obliged to take up but often will.

• Has the right to vote on the appointment of Commissioners as well as

veto some laws such as the EU Budget and single market legislation.



The European Parliament – voice

of the people

Number of members elected in each country (January 2010)

United Kingdom12

22

72

72

13

Italy

Ireland

22Hungary

Greece

99Germany

France

Finland

6Estonia

13Denmark

22Czech Republic

6Cyprus

17Bulgaria

22Belgium

17Austria

Total 736

72

18Sweden

50Spain

7Slovenia

13Slovakia

33Romania

22Portugal

50Poland

25Netherlands

5Malta

6Luxembourg

12Lithuania

8Latvia



27 independent judges,one from each EU country

Rules on how to interpret EU lawEnsures EU countries apply EU laws inthe same way

The Court of Justice



344 members

Represents trade unions, employers,

farmers, consumers etc

Advises on new EU laws and policies

Promotes the involvement of

civil society in EU matters

The European Economicand Social

Committee- Voice of Civil Society



27 independent members

Checks that EU funds are used

properlyCan audit any person ororganisation dealing with EU

funds

European Court of Auditors

European Central Bank



European Central Bank

• The Maastricht Treaty called for the establishment

of the ECB.• The European Central Bank (ECB) is the central

bank for Europe's single currency, the euro.

• The ECB’s main task is to maintain the euro's

purchasing power and thus price stability in the

euro area.

• Controls Money Supply and thus Interest rates.

• The euro area comprises the 15 European Union

countries that have introduced the euro since 1999.

• The ECB operates independently from Member

State governments.

The euro was introduced in 1999



The Euro

• EMU not enshrined until 1992 Maastricht treaty

• The 12 countries agreeing to the euro locked their exchange rates against

each other on Jan 1, 1999- virtual currency

• Euro appeared as physical currency on 1.1.2002.

Benefits of Euro:

1. Significant savings from having to handle one currency- exchange and

hedging costs.

2. Easy comparison of prices across EMU.

3. Producers forced to find ways to reduce costs to maintain their profit

margins.

4. Boost to development of pan-European capital market- lower cost of raisingcapital

5. Pan- European capital market offers range of investment options for both

individuals and institutions.



Beating inflation

European Economic and Monetary Union: stable prices

Average annual inflation in the 15 EU-countries that used the euro in 2008



The Euro

Costs of Euro:

1. National Authorities have lost control over monetary policy.

2. EU not an optimal currency area.

3. Euro puts economic cart before political horse- political Union i.e a single

currency should follow and not precede political union.



The euro – a single currency for

Europeans

EU countries using the euroEU countries not using the euro

Can be used everywhere in the euro area

Coins: one side with national symbols,one side common

Notes: no national side



2010 EU budget: €141.5 billion= 1.20% of gross national income

Citizens, freedom,

security and justice

2%

Other, administration

6%

Sustainable growth:

jobs, competitiveness, regional development

45%

The EU as a global player:

including development aid

6%

Natural resources:

agriculture,

environment41%

How does EU spend its Money



How big are the EU countries?

Surface area in 1 000 km²

France

Spain

Sweden

Germany

Poland

Finland

Italy

UnitedKingdom

Romania

Greece

Bulgaria

Hungary

Portugal

Austria

CzechRepublic

Ireland

Lithuania

Latvia

Slovakia

Estonia

Denmark

Netherlands

Belgium

Slovenia

Cyprus

Luxemburg

Malta

544

506

410

357

313

305

295

244

230

131

111

93

92

83

77

68

63

62

49

43

43

34

30

20

93 0

.3



How many people live in the EU?

Population in millions, 2009

500 million total

82.1

64

.4

61.6

60.1

45.8

38.1

21.5

16.5

11.3

10.6

10.8

10.5

10.0

9.3

8.4

7.6

5.5

5.4

5.3

4.5

3.3

2.3

2.0

1.3

0.8

0.5

0.4

France

Spain

Sweden

Poland

Finland

Italy

UnitedKingdo

m

Romania

Greece

Bulgaria

Hungary

Portugal

Austria

CzechRepub

lic

Ireland

Lithuania

Latvia

Slovakia

Estonia

Denmark

Netherlands

Belgium

Slovenia

Cyprus

Luxemburg

Malta

Germany



EU AND THE WORLD



The area of the EU compared to the

rest of the worldSurface area, 1 000 km²

EU China Japan Russia United States

16 889

9327 9159

4234

365



EU population in the worldPopulation in millions, 2009

500

1339

128 142

307

EU China Japa

n

RussiaUnited States



How rich is the EU compared to the

rest of the world?

EU China Japan Russia United States EU China Japan Russia United States

12 508

1 326

3 329

468

9819

25 100

4 400

27 800

12 200

38 700

Size of economy: 2008 gross domestic product

in billion of euros

Wealth per person: 2008 gross domestic product

per person

Th EU i h bi id f



The EU is the biggest provider of

development aid in the world

Official development assistance per citizen,2007

93€

44€

53€

EU Japan United States

The EU provides 60% of all development aid



The EU – a major trading power

Share of world tradein goods (2007)

Share of world tradein services (2007)

Others

53.2%

EU

17%

United States

14.5%

Japan5.8%

China

9.5%

Others

40.6%

EU28.5%

United States18.2%

Japan

6.8%

China

5.9%



The EU – a major trading power

• Although the EU makes up only 7% of the world’s population, its trade with the

rest of the world accounts for approximately a fifth of global exports and imports.

• Trade between EU countries themselves represents two thirds of all EU trade,

although levels vary between the member states. The single market has made

trade between them much easier as goods, services, capital and people can now

move freely across national borders.

• The EU is the main exporter in the world and the second biggest importer. The

United States is the EU’s most important trading partner, followed by China. The

EU accounted for 18.1% of world exports and 18.9% of global imports.

• The European Union is also an important trading partner for less developed

countries, most of whose exports enter the EU duty-free or at reduced rates of duty. This preferential access to the EU market is aimed at boosting the economic

growth of poorer countries around the world..



Future challenges ahead of EU

Enlargement challenge:

• Enlargement of EU has exacerbated economic and social disparities acrossthe EU.

• Great deal of variance in annual per capita income within individual EU

nations

• Successful Enlargement process is required for integration of newly joined

members

Demographic Challenge:

• Aging populatio will have broad based adverse effects . By 2050 the Euro

area will have 2 workers per one pensioner as opposed to the current ratio

of four

Limited Natural resources:

• Since the Euro area has limited natural resources , commodity and energy

supply issues will also be a matter of concern



Future challenges ahead of EU

European sovereign debt crisis/PIGS crisis:

• The Greek crisis has cast doubts on the future of the euro in a way no

previous crisis has.

• The real problem with the euro is the weaknesses of the Eurozone

economies, the political will to implement required policies and increasing

doubts about the integrity of the ECB.

• There is an urgent need for co-ordinating the political mechanism with theeconomic apparatus created while ushering in the common currency



The Greek Crises? A Euro Crisis?

• Common monetary policy in EMU, but separate fiscal policy.

• The Greek crisis shows what can happen without a sound national fiscal

policy.

•The Greek deficit is so large that it comprises the Government’s ability toborrow.

Th EU i th



The EU is thus a global player.

Its soft power promotes stability,

prosperity, democracy and human

rights, delivers concrete results in

the fight to eradicate poverty, and

in achieving sustainable

development.

The EU in the

World



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