European Union

context and institutions

Joy Johnson

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Europe provokes divisions across political spectrum

“In Europe, not run by Europe”

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BRITAIN’S RELATIONS WITH EUROPE: TIMELINE

1951 Creation of ECSC under Treaty of Paris1957 Creation of EEC under Treaty of Rome1960s De Gaulle rebuffs Britain’s application (1963, 1967)1973 Britain (+ Den, Ire) members of EEC1986 Deepening of internal market: Single European Act1992 Deepening of political union: Treaty on European

Union (‘Maastricht’)1997 Treaty of Amsterdam2000 Treaty of Nice2007 Treaty of Lisbon

NB. Similar material in Kavanagh et al, 2005: Table 8.2:

Question is: ‘to stay in’ • Former Prime Minister Margaret Thatcher

originally yes supporter in the UK’s first referendum in 1975 in the then European Economic Community (Common Market)

• 67% of voters supported the Labour government's campaign despite several (Labour) cabinet ministers having come out in favour of British withdrawal.

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Thatcher says No, No, No• Thatcher supported single market

(Single European Act)• Greater integration (contents of the

Maastricht treaty) drew a No, No, No• Her Chancellor (Lawson) and former

Foreign Secretary (Howe) resigned• Political elite ousted her from office over

Europe • For the masses it was the Poll Tax

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Thatcher • http://www.youtube.com/watch?

v=U2f8nYMCO2I

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Bruge speechemblematic speech

• Individual nations • http://www.youtube.com/watch?

v=wkRwMFy0CVM 10.00

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Context Exchange Rate Mechanism

• Entry - when the time was right became a political issue not economic

• Entered October 1990 by then Chancellor John Major

• Thatcher ousted weeks later

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Turmoil September 16 1992 Black Wednesday – thrown

out • September 16, 1992 5 months after Major won an unexpected general election, became known as black Wednesday

• Bank of England put up interest rates from 10 – 12%

• Interest rates were promised to go up to 15%• Lamont makes statement• http://www.youtube.com/watch?

NR=1&v=AHDsO7gvXHQ&feature=endscreen• Morrison p279

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ERM Useful website• http://news.bbc.co.uk/1/hi/in_depth/

europe/euro-glossary/1216833.stm

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Aftermath • For John Major’s government the skids

were under it from then on in• But the consequence of being evicted

were economically benign but politically toxic

• Britain regained control of currency • Pound devalued pulling country out of

recession• Golden Wednesday?

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Conservative position • John Major’s premiership was riven with

division by Maastricht • 2010 new intake Thatcherite in euro

sceptic approach• Referendum on further powers

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John Major tried to appease Eurosceptics

• opted out of the Social Chapter –included the Working Time Directive (48 hours working week) eventually signed by Tony Blair

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Don’t mention Europe• David Cameron appeared to have made the EU

less toxic BUT• Rebellion on referendum vote despite 3 line whip

– 79 rebels plus 2 more who acted as tellers• residual anger that he didn’t have referendum

over Lisbon Treaty• revolt shows that the EU remains a major fault

line• Tensions with coalition partners the Liberal

Democrats

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Referendum on Treaty changes

• The European Union Act would ensure "significant" EU treaties must be approved by a referendum of UK voters, with the same rule in place for major changes to existing treaties

• This meant according to William Hague that any future government could not "wriggle out of a referendum".

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Where now for the leadership?

• http://www.telegraph.co.uk/news/politics/8807806/EU-referendum-would-hurt-Britains-economy-says-William-Hague.html

• Hague – reality over sceptism • Position changed – Elect a Conservative

Govt., renegotiation then in/out referendum

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DELEGATION OF POWER TO EU NOT NECESSARILY

DETRIMENTALSupra-national ‘collective action’ National government may not be able to meet

citizens’ needs on some (international) policy issues - Environmental pollution, immigration, crime

EU ‘fit’ with Britain EU sometimes doesn’t ‘fit’ (eg. social policy) … but sometimes it does (eg. single market).

EUROPEAN INTEGRATIONIncremental progressEconomic integration followed by

political integrationBritain/Denmark/Sweden opted out of

Eurozonedomestic concerns over ‘political

union’

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KEY EUROPEAN UNION INSTITUTIONS

European Commissionhttp://europa.eu/

European Parliament

Council of Ministers

European Commisioner• 27 commissioners appointed by

nations but supposed to represent pan Europe interests

• President Jose Manuel Barroso• Acts as the Civil Service • unelected

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Council of Ministers of the EU

• Powerful EU institution • Inter-governmental• Broad policy areas under its jurisdiction• 27 departmental ministers from each nation state

depending on issue discussed• e.g. Employment, transport, agriculture• Ecofin (economic meetings)• Chancellor attends even though UK out of the

eurozone• Voting by qualified majority voting (QMV)

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EUROPEAN PARLIAMENT

Powers of ‘co-decision’ with CouncilPower to reject CommissionPowers to reject EU budget

European Parliament• Elected body• Supranational • Once regarded as talking shop is now

more powerful • Maastricht Treaty gave it power to reject

legislation• Lisbon extended powers• UK divided into 12 regions

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European Parliament• There are 754 Euro MPs (check

fluctuates) - elected for five-year terms - in the European Parliament, with 72 representing the UK.

• From 2014 increase to751 MEPs.• Meets 3 weeks in Brussels and a

week in Strasbourg

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European Parliament• Seventy-two MEPs represent the UK in

the European Parliament. • sit according to political affiliation• seven main groups - with most MEPs

sitting in the centre-right, centre-left or liberal blocs

• Form mini-coalition - broad range of political positions and alliances.

• Next election June (fixed terms) 201325

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EU DECISION MAKING PROCESS I

EUROPEAN COMMISSION

COUNCIL OF MINISTERS

EUROPEAN PARLIAMENT

Schengen • Freedom of movement is one of the

main pillars of the European Union, the Treaty of Amsterdam agreed to incorporate Schengen into EU law.

• UK opted out

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Euro• Maastricht Treaty paved the way for single

currency• Britain opted out• Common currency 1 Jan 2002• Gordon Brown five economic tests• Warnings that a country can’t leave if

there is a fire• Greek sovereign debt• Deeper integration – fiscal

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Greek Bail Out as 29 Feb 2012

• http://www.telegraph.co.uk/finance/debt-crisis-live/

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Lisbon Treaty • Under EU rules, the treaty had to be

ratified by all 27 member states before coming into force.

• The treaty signed 2007• Came into force on 1 December

2009.

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Lisbon Treaty • Treaty often described as an attempt

to streamline EU institutions to make the enlarged bloc of 27 states function better.

• Opponents see it as part of a federalist agenda that threatens national sovereignty.

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Herman Van Rumpuy• Commonly but mistakenly known as President of Europe – correct titlePresident of the European Council

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After Lisbon • High Representative- new post• Catherine Ashton• David Miliband had beenexpected to go for it butchose instead to fightLabour Party leadership

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After Lisbon • The European Commission will

continue to have 27 commissioners - one from each member state. The previous Nice Treaty envisaged a smaller commission - and that idea was to be kept, but it was then dropped as a concession to the Irish Republic in 2008.

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After Lisbon – New powers• New powers for the European

Commission, European Parliament and European Court of Justice, for example in the field of justice and home affairs.

• Parliament will be on an equal footing with the Council - the grouping of member states' governments - for most legislation (co-decision), including the budget and agriculture

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After Lisbon • Removal of national vetoes in a

number of areas, including fighting climate change, energy security and emergency aid. Unanimity will still be required in the areas of tax, foreign policy, defence and social security.

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After Lisbon • The new European Parliament was

elected in June 2009 under the existing Nice Treaty - 736 MEPs - down from the previous 785.

• Under the Lisbon plan, the number will be fixed at 751

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After Lisbon Qualified Majority Voting

• Some extensions of qualified majority voting in the European Council are already in place, but plans to redistribute voting weights have been delayed until after 2014.

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European Central Bank• Italian Mario Draghi President• Sets interest rates• The primary objective of the ECB’s

monetary policy is to maintain price stability

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Greece and austerity• http://www.bbc.co.uk/news/business-

17067104• (Paul Mason)

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Electorates go left/right/and the protest vote

• Election of Hollande• New Dawn in Greece• Beppe Grillo and Berlusconi• UKIP

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Draghi will do anything to save the euro

• http://www.bbc.co.uk/news/business-19499950

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European Court of Justice

• Europe’s supreme legal institution• 27 members – one judge per member

state• 13 judges hear a case at any one time• EU law covered, free trade and

movement of goods and services; employment law and social chapter; competition law; public sector regulation

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Outside of the EU institutions

• http://www.guardian.co.uk/law/2012/feb/28/britain-reform-european-court-human-rights?newsfeed=true

• European Court of Human Rights• Council of Europe

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Issues

• Crisis in the Eurozone• Budget • Turkey’s membership• Open borders• In/out referendum

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Useful website• http://ec.europa.eu/

commission_2010-2014/president/index_en.htm

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