European Union

• A peaceful Europe – the beginnings of cooperation

Introduction

• The ‘Swinging Sixties’ – a period of economic growth

Introduction

IntroductionFounding members of EU

• A growing Community – the first Enlargement

• Join the European Union on 1 January 1973, raising the number of member states to nine.

Introduction

• The changing face of Europe - the fall of the Berlin Wall

SEA Signed in 1986.

The fall of the Berlin Wall leads to free trade between North and South Germany.

Introduction

• A Europe without frontiersWith the collapse of communism across central and eastern Europe, Europeans become closer neighbors. In 1993 the Single Market is completed with the 'four freedoms' of: movement of goods, services, people and money.

• Further expansionThe euro is the new currency for many Europeans. 11 September 2001 becomes synonymous with the 'War on Terror' after hijacked airliners are flown into buildings in New York and Washington. EU countries begin to work much more closely together to fight crime.

Introduction

• EU is organization made up of 28 countries

• The capital of European union is Brussels , Belgium.

• The EU is run by five main bodies: European Parliament, Council of the Union, European Commission, Court of Justice, and the Court of Auditors.

• The united states is the main trading partner of European union

• The European flag symbolizes both the European Union and, more broadly, the identity and unity of Europe.

EU Trade policy with the WTO• Through the WTO, the EU also seeks to

promote sustainable development in trade, such as

• The Everything But Arms initiative – where all imports from the world's poorest countries enter the EU free of import duties or quotas, with the exception of armaments

• The special incentive arrangement for sustainable development and good governance, known as GSP+

• Aid for Trade.• The EU has also been an active player in the

Doha Development Agenda since its launch in November 2001.

History of the EU

• The historical roots of the European Union lie in the Second World War.

• Idea of European integration conceived to prevent such killing and destruction from ever happening again

• First proposed by the French Foreign Minister Robert Schuman in a speech on May 9, 1950. This date, the "birthday" of what is now the EU, is celebrated annually as Europe Day

Phases Of Growth• Initially, the European Economic Community

(EEC) consisted of just six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands (1958)

• European Communities (EC) (1967)• Denmark, Ireland and the United Kingdom

joined in 1973 • Greece in 1981• Spain and Portugal in 1986• European Union (EU) (after 1992) (Maastricht

Treaty)• Austria, Finland and Sweden in 1995• Largest enlargement took place with 10 new

countries joining May 9, 2004

The Euro• The Treaty of Rome (1957)

• Declared a common market as a European objective • Aim: increase economic prosperity and contribute to "an ever closer union

among the peoples of Europe"• The Single European Act (1986) and the Treaty on European Union (1992) built

on this• introduced Economic and Monetary Union (EMU) • laid the foundations for a single currency• name “Euro” was selected in 1995• in January 1999, the exchange rates of the participating currencies were

irrevocably set and Euro area Member States began implementing a common monetary policy

• in January 2002, 12 States in the EU introduced the new euro banknotes and coins

• Founded in 1951 (Treaty of Paris)• Purpose was to reduce potential for conflict between the member states by pooling vital resources

• Fore-runner of the EEC, EC, and EU

European Coal and Steel Community

Court of Auditors• Manages the EU budget

5 EU Institutions - each play a specific role

European Parliament • one of two legislative bodies

in the EU• Elected by the peoples of the

Member States

Council of the European Union• EU’s highest Legislative

Body• Made up of representatives

appointed by member states according to a population-based allotment

European Commission• EU’s executive body• One commissioner per

country appointed by each government

Court of Justice• ensures compliance with

the EU laws

How European Union works?

European Investment Bank• Helps achieve EU

objectives by financing investment projects

5 Other Important Bodies European Economic and Social Committee• Expresses the opinions

of organized civil society on economic and social issues 

Committee of the Regions• Expresses the opinions

of regional and local authorities

European Central Bank• Responsible for

monetary policy and managing the euro

European Ombudsman• Deals with citizens'

complaints about maladministration by any EU institution or body 

(Source: ec.europa.eu)

•Total US investment in the EU is three times higher than in all of Asia.

•EU investment in the US is around eight times the amount of EU investment in India and China together.

•This transatlantic relationship also defines the shape of the global economy as a whole. Either the EU or the US is the largest trade and investment partner for almost all other countries in the global economy.

•The EU and the US economies account together for about half the entire world GDP and for nearly a third of world trade flows.

EU and USA

The Commission's main roles are to:• propose legislation which is then adopted by the co-legislators, the European

Parliament and the Council of Ministers• enforce European law (where necessary with the help of the Court of Justice

of the EU)• set a objectives and priorities for action, outlined yearly in the Commission

Work Programme and work towards delivering them• manage and implement EU policies and the budget• represent the Union outside Europe (negotiating trade agreements between

the EU and other countries, for example.).• The European Commission has its headquarters in Brussels, Belgium, and

some services also in Luxembourg. The Commission has Representations in all EU Member States and 139 Delegations across the globe.

What we do ?

• A new team of 28 Commissioners (one from each EU Member State) is appointed every five years.

• The candidate for President of the Commission is proposed to the European Parliament by the European Council that decides by qualified majority and taking into account the elections to the European Parliament.

• The Commission President is then elected by the European Parliament by a majority of its component members (which corresponds to at least 376 out of 751 votes).

• Following this election, the President-elect selects the 27 other members of the Commission, on the basis of the suggestions made by Member States. The final list of Commissioners-designate has then to be agreed between the President-elect and the Council. The Commission as a whole needs the Parliament's consent. Prior to this, Commissioners-designate are assessed by the European Parliament committees.

1 President, 7 Vice-Presidents and 20 Commissioners

Ethics and transparency

Regular and emergency meetingsThe Commissioners meet as a College once a week, usually on Wednesday, in Brussels. The College agendas are determined by the President.The agenda for each meeting is based on the Commission's work programme. The meetings and debates are not open to the public, but the agendas and minutes are available.The Commission also meets when emergencies need to be addressed and when major issues are being discussed by the Council of Minister

Directorates-General and agencies23 000 staff members working in the Commission in departments, known as(DGs) or services.They draft laws, but their proposals become official only once College of Commissioners adopts them during its weekly meeting.They manage funding initiatives at EU level, carry out public consultations & communication activities.The Commission also administers a number of executive agencies, which help the European Commission manage EU programmes.

Sources : http://ec.europa.eu/social/main.jsp?catId=470

Non-EU Nationals Iceland: EU has strict limitations on fishing industry , as

its their main economic activity .Switzerland : one of the most highest living standards

and prefer its economy not to be regulated by EUTurkey’s culture, stability, and location to the Middle

East causes some EU members to not want Turkey to join

Russia : prefers an independency over its resources and economy .

TRADE POLICY of EU

Sources : http://ec.europa.eu/trade/policy/

3 Dimensions in Trade and Investments: Multilateral :Accord among three or

more Parties, Agencies, or National Governments.e.g.- EU- South Korea FTA

Bilateral , e.g.-fisheries partnership agreements – the EU gives financial and technical support in exchange for fishing rights, generally with southern partner countries.

Unilateral e.g. unilateral GSP to third countries like India

OBJECTIVES : Create a global system for fair and open trade Open up markets with key countries Make sure others play by the rules Ensure trade is a force for sustainable development shape a trade and investment environment that is

healthy and beneficial for people and for business Plays a key role in keeping markets open worldwide and

helping Europe to exit from the economic crisis. supporting the fight to protect our environment and

reverse global warming. striving to improve working conditions for workers in

developing countries. ensuring the highest standards of health and safety for

the products we buy and sell.

14.8% of world trade (in goods) in 2014

EU-28 received €523 billion in FDI 2013 (ranking 1st before US € 141.2 billion)

Second-larger exporter (after China) €1.702,9

billion (2014)

Second-largest importer (after

the US) € 1.680,5 billion

(2014)

Sources: Eurostat, UNCTAD

Rank Country Million Euro

1 USA 225.201

2 Brazil 37.829

3 Switzerland 28.472

4 Bermuda 22.082

5 Cayman Islands 20.846

6 Mexico 20.334

EU’s Investment in the world 2013

Sources: http://trade.ec.europa.eu/doclib/docs/2011/august/tradoc_148181.pdf

Sources: http://ec.europa.eu/trade/policy/in-focus/ttip/about-ttip/

CONTENTS : opening up the US to

EU firms helping cut red

tape that firms face when exporting

setting new rules to make it easier and fairer to export, import and invest overseas.

IMPACT: kick-starting

the economy responding

to conflicts close the borders

adapting to other, emerging economies outside Europe

maintaining the influence in the wider world

generating jobs and growth across the EU

cutting prices when shopping and offering more choice.

PROCESS: the

European Parliament business and

trade unions consumer, health and

other public interest groups

the public.

TTIP-Transatlantic Trade and Investment Partnership

TISA- Trade in Service Agreement

An agreement to liberalise trade in services

involves 24 WTO members, including the EU, who together account for 70% of world trade in services

Open to other WTO members and compatible with WTO/GATS

Could be made part of the WTO members join

TISA aims at opening up markets and improving rules in areas such as licensing, financial services, telecoms, e-commerce,Maritime transport, and professionals moving abroad temporarily to provide services.

Sources : http://ec.europa.eu/trade/policy/in-focus/tisa/

EU AND INDIA• EU-India relations go back to the early 1960s: India was amongst the

first countries to set up diplomatic relations with EEC• Bilateral agreements signed in 1973, 1981, The 1994 co-operation

agreement (signed 20 Dec 1993) is a wide-ranging 3rd generation agreement, well beyond trade and economic co-operation.

• EU is India’s largest trading partner.• The bilateral relationship is reviewed annually by India –EU Summit at

the level of our PM and the Presidency of the EU.• Announcement of Strategic Partnership was made at 5th India-EU

Summit in November 2004.

EU AND INDIA• India was EU’s 9th largest trading partner in fiscal year 2014 – 15.

• Trade in goods grew from €28.6 billion in 2003 to €72.7 billion in 2013.• Trade in commercial services tripled from €5.2billion in 2002 to €17.9 billion in

2010.• EU-India trade in goods as a percentage of India’s total trade has continuously

declined going from 26.5% in 1996-97 to 13.9% in 2011-12 and further to 13.2% in 2013-14. In 2013-14, only about 16.4% of all Indian exports went into the EU and about 11% of all Indian imports were from the EU.

• During the fiscal year 2014-2015, trade in goods dipped by about 4% to US$98 billion while trade in services pulled-back by 2.5% to US$26 billion in 2013.

• European FDI to India grew from €1.56 billion in 2004 to a peak of €13.83 billion in 2011 before dropping sharply to €5.48 billion in 2012 and €4.3 billion in 2013.

(Source: Evaluation of the EU-India Strategic Partnership and the potential for its revitalisation. European Parliament’s Committee on Foreign Affairs. - 18 June 2015“India-EU working to end trade huff over generic drugs” Economic Times – 17 August 2015)

EU – India Statistics

2012 2013 201434

34.535

35.536

36.537

37.538

38.539

Trade in Goods

EU Imports EU Exports

2012 2013 201410

10.511

11.512

12.513

Trade in Services

EU Imports EU ExportsSource: http://ec.europa.eu/

1- On 7 January 2016, the Council appointed Mr Kęstutis Lančinskas, a senior Lithuanian police official, as head of the European Union Advisory Mission Ukraine. Mr Lančinskas will replace Mr Kalman Mizsei and is expected to take up his duties in Kyiv on 1 February 2016. 2- IMF urges European Union to open job markets quickly to refugees

EU Highlights

EUROPEAN UNION AND UKRAINE AGREEMENT

1-The economic part of the pact signed between Ukraine and the EU will slash 98 percent of trade duties on the EU’s 28 member’s goods and 99 percent on Ukrainian products.2-Ukraine will save up to $500 million on lifted tariff and duty fees when trading with Europe, but it’s free trade access with Russia will be revoked.3-The EU thinks in the long-run closer ties with Europe will bring Ukraine economic prosperity. Moscow predicts a short-term windfall of $30-40 billion in the next year. The EU says it will make up for any counter actions by Russia.4-The costs of Ukraine's participation in the Eastern Partnership may turn out to be too high not only for Ukraine but also for the EU. That’s because the budget of the European Union has been calculated for 7 years ahead and does not envisage any extra expenditures, while Ukraine’s economy needs billions to revive its economy, as ITAR-TASS cites Sergei Kulik, Contemporary Development Institute Director for International Research.

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