The European Union (EU)

The Worlds Strongest

Supranational Organization

What is it?
The European Union (EU) is a family of democratic
European countries, committed to working together
for peace and prosperity.
It is not a State intended to replace existing states, but it
does represent a greater compromise of sovereignty
than any other international organization.
The EU is unique; its Member States have set up
common institutions to which they delegate some of their
sovereignty so that decisions on specific matters of joint
interest can be made democratically at European level.
This pooling of sovereignty is also called "European
integration"

European Coal and Steel

Community
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

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

GROWTH OF THE EU

Admission
of Romania
and
Bulgaria
2007
Croatia and
Macedonia
are new
candidates

Major
debates
about
Turkey

EU Member Countries
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy

Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain
Sweden
United Kingdom

Euro Area Member

Countries
Austria. Belgium. Cyprus.
Estonia. Finland. France.
Germany. Greece. Ireland.
Italy. Latvia. Luxembourg.
Malta. Netherlands. Portugal.
Slovakia. Slovenia. Spain

How does it work?

There are five EU institutions,

each playing 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
(EUs highest Legislative Body;
has legislative initiative; is made
up of representatives appointed by
member states according to a
population-based allotment)
European Commission (EUs
executive body; one
commissioner per country
appointed by each government)
Court of Justice (ensures
compliance with the EU laws)
Court of Auditors (manages the
EU budget)

These are flanked by five 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)
European Investment Bank
(helps achieve EU objectives by
financing investment projects)

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

The Eurozone

Coins and banknotes 1st used

Jan 1, 2002
Cyprus sheduled to join in 2008
Slovakia scheduled to join in
2009
Estonia scheduled to join in
2010
Sweden is technically obliged
to join but the EU has made
public that they will not enforce
this with regard to Sweden
Britain and Denmark have a
derogation releasing them
from having to join

Impact of the Eurozone

What impact do you think the Eurozone
has on cultural diffusion?
What impact do you think the Eurozone
has on economic development?
Why are some countries avoiding joining?

A strong currency!

Why have bills different

sizes & colors?

What values are

reflected in these
artifacts that are not
found in American
money?

Coins

Advantages to joining
the EMU

European countries saw the adoption of

the Euro as a way of creating world wide
competition
Integrate the European nations makes the
union a strong world power
World Balance

Advantages to joining
the EMU

Strengthen Banking System

European Central Bank would provide

an institution of monetary regulation
comparable to the FED
Ex) 6 member Executive Board of the
ECB acts much like the US 7 member
FED reserve board

Advantages to joining
the EMU

The Euro would advance ones

international trade

Way to challenge the power of the US in

foreign exchange
Inspire exporters to denominate their
goods in euros as well as dollars

Advantages to joining
the EMU

Company can create individualities with

different prices
Single Monetary Policy

Disadvantages to
joining the EMU
Introduction of a single monetary policy
among 12 individual national policies of
each country
Before joining the country controlled its
own money supply
Monetary decisions with economic and
national policies unique for the
circumstances of the country

Disadvantages to
joining the EMU

Ex) Monetary policy for France and

Germany could prove very costly for Spain
and Portugal
Surrender their individual policies on
inflation,unemployment, and economic
growth

SUMMARY
The European Union is the strongest supranational organization in
the world
shared currency & financial management
legislative, judicial, and executive bodies
regulatory and planning bodies

The EU is growing geographically, and its growth suggests a coredomain model

core and domain are borne out by distribution of income

The EU does not appeal to all Europeans (at least not yet)
small states in particular seem skeptical

Roughly comparable to the US in some ways

population slightly larger than that of the US

somewhat more densely settled than the US
economy is at least as strong as the American economy
other social statistics (e.g. literacy, infant mortality & homicide) are as
good or better than the US