European Union

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European Union

The European Union (EU) is a grouping of states from Western, Eastern, and Central Europe. Those interested in politics view the EU with great interest because it is unique among regional and international power arrangements. Even non–political scientists study the entity; following its 2004 enlargement, it represented approximately 450 million people and 25 percent of the world's economic production, making it a significant international actor.

States created the EU and states make up its members. Unlike most other international organizations, however, the EU holds a measure of power over members' policies, especially in the realm of economics. This difference has led to debate about whether the EU has an intergovernmental (states alone hold power) or supranational (states and EU institutions together hold power) character. The answer depends on where one looks—which institutions and policy areas—as evidence for both characterizations exists. In the early twenty-first century students of the EU have turned to explanations provided by "multilevel governance" and "two-tiered bargaining." For many, these theoretical models better capture the reality of Europe's multiple arenas of bargaining, and the varied interests, actors, and influences that collaborate to create policy in the EU.

This sometimes untidy, always complex entity results from a long historical process. During its evolution, citizens of member states witnessed the completion of a single market encompassing all their economies, the removal of most barriers to intra-EU movement, as well as the adoption of a single currency (euro) and monetary policy by most member governments. Further, the November 1993 Maastricht Treaty on European Union (TEU) committed members to "deepening" integration. They agreed to coordinate a common foreign and security policy and justice and home affairs (police and legal functions). In addition, the EU continues to widen its membership, admitting ten states from Central and Eastern Europe (Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovenia, and Slovakia) in 2004. Romania and Bulgaria are scheduled to join the EU in 2007 and Turkey in 2010. The EU is a fascinating experiment in new ways of organizing power, sovereignty , and citizenship.

history of european integration

Following World War II (1939–1945), France and other states sought to "cage" Germany so that it could never again threaten its neighbors. This effort led first to the Brussels Treaty Organization (BTO) in 1948; its member states were Belgium, the Netherlands, and Luxembourg (Benelux), as well as France and the United Kingdom. The BTO evolved into the Western European Union (WEU) with the addition of West Germany (formed in 1949 from the British, French, and U.S.–occupied sectors of defeated Germany) and Italy in 1955. In 1950, BTO's members plus Canada, Denmark, Iceland, Italy, Norway, Portugal, and the United States became the North Atlantic Treaty Organization (NATO), formed to protect against military threats from the Soviet-led East bloc .

The Allies focused on rebuilding Europe to insulate it from perceived threats by the Communist Union of Soviet Socialist Republics (USSR). To stretch scarce European resources, the United States conditioned Marshall Plan aid (initiated in 1947) on recipients preparing integrated recovery plans. This requirement helped countries develop cooperative habits that served the community's later integrative efforts.

Integration took place in stages: first, the European Coal and Steel Community (ECSC); next, the European Economic Community (EEC); then the European Community (EC); and finally the EU. From a limited agenda and membership, European unity now encompasses vast new policy areas and reflects a much wider association.

France's Jean Monnet, regarded as the Father of Europe, and West Germany's Chancellor Konrad Adenauer notably provided the political finesse and inspiration for the ECSC. It came into existence after the Benelux states, France, Italy, and Germany signed the Treaty of Paris in 1951. Although the "Six" invited the United Kingdom to participate, domestic politics prevented British membership. The ECSC assumed regulatory authority over the production and sale of coal and steel. In focusing on these important products—essential to war and industry—the ECSC helped appease members' fears regarding their neighbors' ability to wage war during post-World War II reconstruction.

The ECSC was composed of a supranational High Authority, an intergovernmental Council of Ministers, an independent Court of Justice, and an advisory Assembly. The High Authority served as the executive. To ensure its supranationality, members pledged to take no instruction from their home governments. The authority had significant autonomy, including the power to fine firms, raise and invest money, arrange loans for members, and finance the retraining and resettlement of workers. In addition, it regulated the common market for coal and steel.

The Council of Ministers and Court of Justice both limited the authority. The council's members came from the Six's national cabinets, usually in the person of the minister of economics or industry. It could set the authority's agenda and block its initiatives. The council also exercised budgetary control. The Court of Justice also could check the authority through judicial review . Council members could ask the Court to examine whether the authority had overstepped its mandate or acted contrary to ECSC law.

On the other hand, the Assembly, made up of representatives from members' national legislatures, had little influence; it could not directly stop authority initiatives. The assembly could only censure the authority as a whole, forcing its resignation. Also, the assembly held limited proposal power regarding the budget.

This system of checks and balances created several important legacies. The High Authority showed great reluctance—and perhaps great wisdom—in refusing to exercise its powers contrary to explicit member preferences. Clearly, states' wishes restrained the authority's supranationality. This delicate balance continues in the EU. In addition, the court's capacity to evaluate and overturn the authority's decisions legitimized the use of judicial review, which later courts have employed to enhance European supranationality. Finally, the assembly, with its limited powers and non-elected members, does not always represent popular opinion, a serious deficiency for an organization of democratic states. The EU continues to struggle with this "democratic deficit," seeking to remedy this problem through bestowing greater power on the European Parliament (EP).

The ECSC's successes inspired its members to integrate additional policy areas. When an attempt to incorporate defense and security through the European Defense Community failed in 1954, ECSC members contemplated other possibilities. In 1957 they signed the Treaties of Rome that created the European Atomic Energy Community (Euratom) for peaceful atomic development and the EEC for construction of a common market in a wider array of goods in addition to ECSC products. Again, the British were invited to participate; again, they declined.

In the 1960s the EEC removed barriers to trade and freed the movement of labor within the Community, two prerequisites to a common market. Additionally, members negotiated the politically sensitive Common Agricultural Program (CAP), which provided Community support for farming (this subsidy remains a significant budget item). Moreover, in 1965, the states signed a Merger Treaty—fusing the ECSC, Euratom, and EEC into the EC—and created common institutions.

This same year witnessed the Empty Chair Crisis, in which France refused to move from unanimous to majority voting (on some issues) in the Council of Ministers as envisioned by the Treaties of Rome. Majority voting would have forced states that were opposed to an action to accept it if enough other states agreed. This reflected the ongoing debate over the nature of the Community's character. French President Charles de Gaulle (b. 1948) refused to cede any national prerogatives and withdrew France's representative. The 1966 Luxembourg Compromise filled France's "empty chair," allowing unanimity on any issue deemed very important by a member. This agreement gave each state a veto, preserving intergovernmentalism. Although this slowed the momentum of the EC, even the most intergovernmental states began to feel more secure.

By 1968 the Europeans completed the Common Market and again began to consider expansion. After two attempts to join, which were vetoed by de Gaulle (who considered Great Britain a rival), the United Kingdom entered the EC in 1973, along with the Republic of Ireland and Denmark. (Norway's citizens rejected EC membership by referendum .)

This period reflected great economic uncertainty. In 1971 the United States delinked the dollar—the peg of the international currency system—from a fixed relationship with gold. The Community responded, in 1972, with the Snake in the Tunnel policy (the "snake" represented tightly joined European currencies, while the "tunnel" symbolized their more flexible relationship to the U.S. dollar). That same year, the Organization of Petroleum Exporting Countries (OPEC) drastically increased the price of oil, which led to wide swings in EC currency values. The Europeans decided to create a better system and, in 1979, launched the European Monetary System (EMS). Another reform in 1979 was direct elections of Members of the European Parliament (MEPs), an important step toward democracy.

The 1980s witnessed significant activity, from widening membership to deepening integration. Beginning with Greece (1981), followed by Spain and Portugal (1986), the Community grew. In addition, the Council of Ministers named Jacques Delors as Commission president in 1985. Under his energetic leadership, the Community made great progress, including passage of the 1986 Single European Act outlining the steps remaining for, and committing members to, the completion of a Single Market. The 1989 Delors Report by central bankers detailed the steps toward a Economic and Monetary Union (EMU). Finally, the Council of Ministers dropped the requirement for unanimity on many issues, eroding the Luxembourg Compromise and easing EC operations.

The enthusiasm and optimism of the 1980s swept the EC forward with ambitious plans. In 1990 most members signed the Schengen Treaty that eliminated internal borders. Given its problems with domestic terrorism, the United Kingdom declined to sign the treaty (with Ireland abstaining), as did Norway, which sought to preserve travel agreements with non–EC Nordic states. Member states—including a newly unified Germany—signed the TEU in 1992, greatly expanding Community competencies. Ratification meant coordination of common foreign and security policies, as well as policing, immigration, political asylum, and legal procedures under the rubric "justice and home affairs." Members' initial steps toward the EMU included making central banks autonomous, coordinating monetary policies, and irrevocably linking participating states' currencies. In 1995 Sweden, Finland, and Austria joined the EU. Additionally, the group considered numerous new candidates for membership, mostly from the former Soviet bloc.

Economic difficulties, citizen revolt, and Commission scandal undermined these positive steps, however. In 1992 and 1993 the EMS underwent speculative attacks that led to its virtual collapse. In addition, states seeking to join the EMU often had to cut social spending, raise taxes, and even practice creative accounting to meet stringent entrance criteria. Such actions, especially in high unemployment areas, led many of them to question the desirability of membership. Political repercussions included Danish rejection of the TEU (later reversed) and France's ratification of the treaty by less than a 1 percent margin. The entire Commission, led by Jacques Santer, resigned in 1999 following reports of fraud, nepotism , and mismanagement of resources.

The early twenty-first century saw the EU focus on the ambitious agenda of the TEU, enlargement, and institutional reform. On January 1, 2002, citizens of the twelve "euroland" states began using paper euros. The EU also began developing an autonomous military "rapid reaction force," for use in a variety of situations. Further, members are coordinating asylum and immigration policies and other justice and policing activities.

The EU's enlargement by ten new members, in 2004, highlighted the need for institutional reform. The Treaty of Nice, signed in 2000, furthered reforms mandated by the 1996 Treaty of Amsterdam. Both agreements left many issues unsettled, however, in anticipation of a future constitutional conference. Reallocation of power and budget responsibilities particularly troubled members that wanted no reduction in the first or increase in the second, but such disagreements were overcome and leaders agreed to the EU Constitutional Treaty in the summer of 2004. Although many countries support the new constitution, France and the Netherlands do not. When put to a vote, both the French and the Dutch people rejected it. Unless the treaty receives a unanimous vote, the new constitution cannot be ratified.

institutions of the eu

The institutions governing the EU distribute power and responsibility uniquely. Functions overlap, creating unfamiliar authorities and responsibilities compared to national governments. This, in large measure, reflects the starting point provided by the ECSC and the evolutionary nature of the institutions' development.

European Council. This intergovernmental body should not be confused with the Council of Europe. The head of the country holding the presidency of the Council of Ministers convenes at least two meetings of this council during his or her six-month term. Here, national leaders set the EU's extraordinary agenda for the near future and approve previous efforts, usually in the form of treaties (e.g., the Single European Act). Originally an informal forum of heads of member states, the Community in 1974 accorded this meeting legal status. This move shifted the supranational/intergovernmental balance, returning power to the states. At the same time, it allowed bold expansion into new areas, for example, security and defense, that less senior diplomats could not propose, given political ramifications.

Commission. The supranational Commission, heir to the High Authority, serves both legislative and executive functions. Currently each member appoints one Commissioner, although that may change with future enlargements. After gaining approval from the Council of Ministers' (based on qualified majority voting) and European Parliament, commissioners serve five-year renewable terms. While many have served prominently in national governments, commissioners swear to forsake allegiance to any national agenda and agree to put EU interests first. The Commission president assigns commissioners to the twenty-three functionally distinct directorates-general and various services. The EP may censure and remove the commission en masse for failure to fulfill its commitments.

the european coal and steel community

The European Coal and Steel Community (ECSC) was the first organization established by treaty that led to the eventual formation of the European Union. The ECSC is sometimes called the Schuman Plan, after the French foreign minister who proposed it in 1950. It was originally intended to pool French and German coal and steel production. By the time the Treaty of Paris was signed on April 18, 1951, however, the ECSC involved six countries (Italy, Belgium, Luxembourg, and the Netherlands in addition to France and Germany). The treaty went into effect on July 24, 1952 and was scheduled to expire fifty years later on July 23, 2002.

The six members agreed to create a common market for coal and steel, to lift restrictions on imports and exports, and to set up a unified labor pool. The structure of the ECSC included a nine-member High Authority, a Council of Ministers, an Assembly, and a Court of Justice. This organizational structure served as the model for the later European Union. The ECSC was an economic success in its early years; it raised iron and steel production in the member nations by 75 percent between 1952 and 1960, and general industrial production by 58 percent.

The ECSC's assets were turned over to the European Community when it went out of existence in July 2002.

As a legislative body, the Commission proposes bills in consultation with the EP, states, and lobbyists , with direction from the European Council. Its submissions make up much of the Council of Ministers' agenda. As an executive body, the commission supervises implementation of legislation at the EU level through oversight of a bureaucracy of "Eurocrats," as well as at the state level by monitoring members' implementation of regulations and directives. (Regulations are immediately applicable and binding on member states, whereas directives outline objectives that states must achieve through means determined in national legislation.) In this executive capacity, the commission often writes guidelines for the implementation of legislation, giving it significant interpretative powers.

The Council of the European Union. This body, formerly, the Council of Ministers, representing states' national interests, counterbalances the commission's supranational bias. Several different councils do, in fact, exist, as membership varies based on the issue. In all cases, national ministers compose the council. The six-month council presidency rotates among members. The state holding this office also presides over the European Council. Ministers' dual role—both national and EU responsibilities—dictates additional support. Thus, the Council of Permanent Representatives (COREPER), a permanent bureaucracy of national civil servants, and a General Secretariat aid ministers.

The Council of Ministers performs a legislative function. Although formerly one could summarize operations as "the Commission proposes, the Council disposes," given increasing parliamentary responsibility, this no longer holds true in most instances. While the council still approves, amends, or rejects commission proposals, now, after it acts, proposals often move to the EP for approval (co-decision). In other situations, however, the Council still need only consult the EP or gain its assent.

Council ministers enjoy a different number of votes, weighted according to their states' sizes. Thus, the five largest members represent about 60 percent of total votes. After the Luxembourg Compromise, the council often required unanimity, but in treaties beginning with the TEU, it has added a growing number of issues to those decided by qualified majority voting (QMV). To ensure the protection of states' interests, QMV voting requires more than a simple majority. According to the Treaty of Nice, passage by "qualified majority" requires assent by a majority of member states, holding at least 72.3 percent of total Council votes and representing at least a majority of member states and at least 62 percent of the EU's population. The Constitutional Treaty further addresses this system.

European Parliament (EP). Since 1979 Europeans have elected MEPs directly, to five-year terms, with each delegation 's size based on its state's population. After the 2004 enlargement, the EP's size grew, but it should return to 535 in 2009. In the EP, MEPs sit in transnational party groupings. In addition, the EP has structured parliamentary activity and funding to enhance these cross-border political identities. Still, EP elections more often serve as referendums on national governments rather than reflecting voter opinions on European issues.

Parliament's authority varies depending on the issue, because European treaties have awarded it different roles. From humble "consultation" under the Treaties of Rome, the EP won the powers of cooperation and co-decision in the Single European Act and Maastricht Treaty, respectively. Honoring the EP's consultation role, the council must listen to its views, but it is not obliged to act on them. When operating under the cooperation procedure, the EP can amend or reject council proposals, although the ministers, acting unanimously, may overturn the EP's decision. Finally, co-decision gives the EP veto power over legislation approved by both commissioners and ministers. Such increases in EP power are one way to address the previously mentioned democratic deficit.

European Court of Justice. The EU's legal system encompasses several specialized bodies, for example, the Court of Auditors and two general courts: the Court of First Instance and the European Court of Justice (ECJ). The Community created the Court of Auditors, in 1977, to ensure that the budget is spent correctly and the Court of First Instance, in 1988, to relieve the ECJ's heavy caseload. Members each appoint one judge to the ECJ. With the 2004 enlargement, the number of judges increased to twenty-five, each serving a six-year term. These judges rarely sit en masse, meeting instead in smaller panels to hear cases. Judges consider suits involving EU institutions, firms, individuals, and member states. The court system has increased Europe's supranational character in two important ways. As discussed earlier, ECSC members accepted judicial review of the High Authority. The later ECJ also reviews actions by member states, in some cases ruling against national legislation. This derives from the ECJ judgment that European legislation is supreme over conflicting national legislation. Thus, ECJ rulings have driven forward the EU's agenda, in some cases against members' legislated preferences.

conclusion

As the EU looks forward, it faces new and continuing challenges. The 2004 enlargement highlighted the need for additional reform of its institutions and budget. In addition, worries by many about the fairness of representation (the democratic deficit) persist, despite a strengthened EP. The nature of the EU and whether true authority lies with the states alone, or with the institutions of the EU, remains contentious. Further, such debate spotlights the difficulty of agreement in new areas of involvement: foreign policy, security, justice, and domestic affairs. The EU's recent and planned expansions also bring it into increasingly close contact with developing areas of the world (e.g., the Balkans, the former Soviet republics, and Turkey) with special needs. The EU remains an important international actor as it addresses these internal and external challenges.

See also: European Court of Justice; European Parliament.