4.2 European Union

The European Union (EU) is a unique economic and political partnership of 27 European countries. Born from the ashes of World War II, it has evolved through treaties to foster peace, stability, and cooperation among its members.

The EU's complex structure includes institutions like the European Commission, Parliament, and Council. It has achieved significant economic integration through a single market and common currency, while facing challenges like Brexit and balancing national sovereignty with supranationalism.

Formation of the EU

• The European Union (EU) is a unique economic and political union of 27 member states, established to promote peace, stability, and economic cooperation in Europe after World War II
• The EU has evolved through a series of treaties, gradually increasing the level of integration and cooperation among its member states

Treaties establishing the EU

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• The European Coal and Steel Community (ECSC) was established in 1951 by the Treaty of Paris, integrating the coal and steel industries of six European countries (France, West Germany, Italy, Belgium, Netherlands, and Luxembourg)
• The Treaty of Rome (1957) established the European Economic Community (EEC) and the European Atomic Energy Community (Euratom), expanding cooperation to include a common market and nuclear energy
• The Merger Treaty (1965) combined the institutions of the ECSC, EEC, and Euratom, creating a single set of institutions for the European Communities
• The Single European Act (1986) set the goal of establishing a single market by 1992 and introduced qualified majority voting in certain areas

Maastricht Treaty and the euro

• The Maastricht Treaty (1992) established the European Union, introducing the concept of European citizenship and laying the foundation for a common foreign and security policy
• The treaty also set the stage for the creation of the euro, the EU's common currency, by outlining the convergence criteria and timeline for the Economic and Monetary Union (EMU)
• The euro was introduced as a virtual currency in 1999 and became physical currency in 2002, replacing the national currencies of participating member states

Expansion of EU membership

• The EU has undergone several rounds of enlargement, growing from its original six members to the current 27
• In 1973, Denmark, Ireland, and the United Kingdom joined the EU
• Greece joined in 1981, followed by Spain and Portugal in 1986
• In 1995, Austria, Finland, and Sweden became members
• The largest enlargement occurred in 2004, with the accession of ten countries: Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia
• Bulgaria and Romania joined in 2007, and Croatia became the 28th member state in 2013
• The United Kingdom withdrew from the EU in 2020 (Brexit), reducing the number of member states to 27

Governing institutions of the EU

• The EU has a unique institutional structure that combines supranational and intergovernmental elements, with power shared among various institutions

European Commission

• The European Commission is the executive branch of the EU, responsible for proposing and enforcing legislation, implementing policies, and representing the EU internationally
• Commissioners are appointed by member states and approved by the European Parliament, with each member state having one Commissioner
• The Commission is divided into various Directorates-General (DGs), each responsible for a specific policy area (trade, agriculture, competition)
• The Commission has the sole right to propose legislation in most policy areas, and it ensures that EU laws are applied correctly by member states

European Parliament

• The European Parliament is the directly elected legislative body of the EU, representing the citizens of member states
• Members of the European Parliament (MEPs) are elected every five years by universal suffrage in each member state
• The Parliament shares legislative power with the Council of the European Union, and it has the power to approve, amend, or reject legislation in most policy areas
• The Parliament also exercises democratic oversight over other EU institutions, including the power to approve the appointment of the European Commission and to censure it

Council of the European Union

• The Council of the European Union (also known as the Council) represents the governments of the member states and is the main decision-making body of the EU
• The Council is composed of ministers from each member state, with the composition varying depending on the policy area being discussed (agriculture ministers for agricultural issues, finance ministers for financial matters)
• The Council shares legislative power with the European Parliament, and it is responsible for coordinating member states' policies in specific fields (economic policy, foreign and security policy)
• Decisions in the Council are typically made by qualified majority voting (55% of member states representing at least 65% of the EU population), although some sensitive areas require unanimity

European Council

• The European Council consists of the heads of state or government of the member states, along with the President of the European Commission and the President of the European Council
• The European Council sets the overall political direction and priorities of the EU, but does not have legislative powers
• It meets at least four times a year and decisions are typically made by consensus
• The President of the European Council is elected by the European Council for a two-and-a-half-year term, renewable once, and represents the EU externally

Court of Justice of the EU

• The Court of Justice of the European Union (CJEU) is the judicial branch of the EU, ensuring that EU law is interpreted and applied consistently across all member states
• The CJEU consists of two main courts: the Court of Justice, which deals with requests for preliminary rulings from national courts, appeals, and infringement cases brought by the Commission; and the General Court, which hears cases brought by individuals and companies against EU institutions
• The CJEU also includes specialized courts, such as the Civil Service Tribunal
• The CJEU plays a crucial role in the development of EU law through its judgments and interpretations of the EU treaties and legislation

Economic integration in the EU

• Economic integration is one of the core objectives of the EU, aiming to create a single market with free movement of goods, services, capital, and people

Single market and four freedoms

• The single market is an area without internal borders, where the free movement of goods, services, capital, and people (known as the four freedoms) is ensured
• The free movement of goods allows for the elimination of customs duties and quantitative restrictions between member states, as well as the harmonization of product standards and regulations
• The free movement of services enables businesses to provide services across member states without facing discriminatory barriers
• The free movement of capital allows for the unrestricted flow of investments and financial transactions within the EU
• The free movement of people (also known as the freedom of movement for workers) allows EU citizens to work and reside in any member state

Common Agricultural Policy (CAP)

• The Common Agricultural Policy (CAP) is one of the oldest and most significant policies of the EU, aiming to support farmers, ensure food security, and promote rural development
• The CAP provides income support to farmers through direct payments, which are based on the size of their land and their compliance with environmental and animal welfare standards
• The policy also includes market measures to stabilize prices and manage supply, such as intervention buying and private storage aid
• The CAP encourages rural development through measures such as investments in modernization, diversification, and environmental protection
• The policy has undergone several reforms to address challenges such as overproduction, environmental sustainability, and global competitiveness

Monetary union and the eurozone

• The Economic and Monetary Union (EMU) is the process of harmonizing the economic and monetary policies of EU member states, with the ultimate goal of adopting a single currency (the euro)
• The eurozone consists of the EU member states that have adopted the euro as their official currency
• To join the eurozone, member states must meet the convergence criteria, which include price stability, sound public finances, exchange rate stability, and long-term interest rate convergence
• The European Central Bank (ECB) is responsible for conducting monetary policy for the eurozone, aiming to maintain price stability and support economic growth
• The eurozone has faced challenges, such as the sovereign debt crisis and economic disparities among member states, leading to debates about the need for further fiscal and political integration

Regional development funds

• The EU operates several regional development funds to reduce economic and social disparities among member states and regions
• The European Regional Development Fund (ERDF) supports investments in infrastructure, innovation, and small and medium-sized enterprises (SMEs) in less developed regions
• The European Social Fund (ESF) invests in human capital, supporting projects related to employment, education, and social inclusion
• The Cohesion Fund supports investments in environmental and transport infrastructure in member states with a gross national income (GNI) per capita below 90% of the EU average
• The EU also operates other funds, such as the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF), to support specific sectors and regions

Political integration in the EU

• Political integration in the EU involves the development of common policies and cooperation in areas such as foreign policy, security, justice, and home affairs

Common foreign and security policy

• The Common Foreign and Security Policy (CFSP) aims to strengthen the EU's external action and promote its values and interests globally
• The CFSP is based on the principles of democracy, the rule of law, human rights, and fundamental freedoms
• The High Representative of the Union for Foreign Affairs and Security Policy, who is also a Vice-President of the European Commission, is responsible for conducting the CFSP and representing the EU externally
• The CFSP includes the Common Security and Defence Policy (CSDP), which enables the EU to undertake peacekeeping, conflict prevention, and crisis management operations
• Decision-making in the CFSP is primarily intergovernmental, with most decisions requiring unanimity in the Council of the European Union

Justice and home affairs cooperation

• Cooperation in the area of justice and home affairs (JHA) aims to create an area of freedom, security, and justice within the EU
• JHA cooperation includes policies related to border control, asylum, immigration, judicial cooperation in civil and criminal matters, and police cooperation
• The EU has established agencies such as Europol (for police cooperation), Eurojust (for judicial cooperation in criminal matters), and the European Asylum Support Office (EASO) to support JHA cooperation
• The EU has also developed common instruments, such as the European Arrest Warrant and the Schengen Information System, to facilitate cross-border cooperation in criminal matters and border management

Schengen Area and border control

• The Schengen Area is a zone within the EU where internal border controls have been abolished, allowing for the free movement of people
• The Schengen Area currently consists of 26 European countries, including 22 EU member states and four non-EU countries (Iceland, Liechtenstein, Norway, and Switzerland)
• EU member states that are not part of the Schengen Area (Bulgaria, Croatia, Cyprus, Ireland, and Romania) are legally obliged to join once they meet the necessary conditions
• The Schengen Borders Code sets out the rules for external border control and the temporary reintroduction of internal border controls in exceptional circumstances
• The EU has also established the European Border and Coast Guard Agency (Frontex) to support member states in managing the EU's external borders and combating cross-border crime

EU citizenship and rights

• The Maastricht Treaty introduced the concept of EU citizenship, which is complementary to national citizenship and confers certain rights on EU citizens
• EU citizens have the right to move and reside freely within the territory of the member states, subject to certain conditions
• They also have the right to vote and stand as candidates in European Parliament and municipal elections in their member state of residence
• EU citizens have the right to petition the European Parliament, apply to the European Ombudsman, and address the EU institutions in any of the official languages of the EU
• The Charter of Fundamental Rights of the European Union enshrines the civil, political, economic, and social rights of EU citizens and residents

Challenges facing the EU

• The EU faces several challenges that test its unity, effectiveness, and legitimacy

Democratic deficit and legitimacy

• The democratic deficit refers to the perceived lack of democratic accountability and transparency in the EU's decision-making processes
• Critics argue that the EU institutions, particularly the European Commission and the Council of the European Union, are not sufficiently accountable to the citizens they serve
• The complex and often opaque nature of EU decision-making can make it difficult for citizens to understand and engage with the process
• Efforts to address the democratic deficit include increasing the powers of the directly elected European Parliament and enhancing the involvement of national parliaments in EU affairs

Euroscepticism and populism

• Euroscepticism refers to criticism of or opposition to the EU and the process of European integration
• Eurosceptic parties and movements have gained prominence in several member states, often advocating for a reduction in the EU's powers or even withdrawal from the EU
• Populist parties, which often combine Euroscepticism with anti-immigration and nationalist rhetoric, have also made electoral gains in recent years
• The rise of Euroscepticism and populism can be attributed to factors such as economic insecurity, cultural anxiety, and dissatisfaction with mainstream political parties

Economic disparities among members

• The EU faces significant economic disparities among its member states, with wide variations in GDP per capita, unemployment rates, and public debt levels
• The eurozone crisis, which began in 2009, exposed the vulnerabilities of the Economic and Monetary Union and the challenges of coordinating economic policies among member states
• The crisis led to bailouts for several member states (Greece, Ireland, Portugal, Spain, and Cyprus) and the implementation of austerity measures, which have had social and political consequences
• Addressing economic disparities and promoting convergence among member states remains a key challenge for the EU, requiring a combination of structural reforms, investment, and solidarity mechanisms

Migration and refugee crisis

• The EU has faced a significant migration and refugee crisis in recent years, with large numbers of people seeking to enter the EU from countries affected by conflict, persecution, and economic hardship
• The crisis has strained the EU's asylum system and exposed divisions among member states on how to respond
• Some member states have reintroduced temporary border controls within the Schengen Area, challenging the principle of free movement
• The EU has sought to address the crisis through measures such as the relocation of asylum seekers, increased border security, and cooperation with countries of origin and transit
• The migration and refugee crisis has also fueled political tensions and the rise of anti-immigration parties in several member states

Brexit and its implications

• In June 2016, the United Kingdom voted in a referendum to leave the EU, a process known as Brexit
• The UK formally withdrew from the EU on January 31, 2020, after a prolonged period of negotiation and political uncertainty
• Brexit has significant implications for the EU, including the loss of a major member state, changes to the EU budget and institutional balance, and the need to redefine the EU's future relationship with the UK
• The withdrawal of the UK also raises questions about the future direction of European integration and the potential for further disintegration
• The EU has sought to maintain unity among the remaining 27 member states and to negotiate a comprehensive agreement with the UK on their future relationship, covering areas such as trade, security, and citizens' rights

Future of European integration

• The future of European integration involves debates about the direction, scope, and pace of further integration among EU member states

Deepening vs widening debate

• The deepening vs widening debate refers to the tension between the goals of further integration among existing member states (deepening) and the enlargement of the EU to include new member states (widening)
• Proponents of deepening argue that the EU should prioritize the consolidation and strengthening of its existing policies and institutions before considering further enlargement
• Advocates of widening contend that the EU should remain open to new members, particularly from the Western Balkans and Eastern Europe, to promote stability, democracy, and economic development in these regions
• The EU has sought to balance these two goals through a combination of internal reforms and a cautious approach to enlargement, based on strict accession criteria and the principle of conditionality

Potential for further enlargement

• The EU has a formal enlargement policy, which sets out the conditions and process for countries seeking to join the EU
• Candidate countries must meet the Copenhagen criteria, which include stable democratic institutions, the rule of law, human rights, a functioning market economy, and the ability to take on the obligations of membership
• Currently, there are five candidate countries: Albania, Montenegro, North Macedonia, Serbia, and Turkey
• Bosnia and Herzegovina and Kosovo are considered potential candidates, with the EU engaging in stabilization and association processes with these countries
• The potential for further enlargement depends on the progress made by candidate countries in meeting the accession criteria, as well as the political will and capacity of the EU to absorb new members

Reforming EU institutions

• Reforming the EU institutions is an ongoing process aimed at improving the effectiveness, accountability, and legitimacy of the EU's decision-making processes
• The Lisbon Treaty, which entered into force in 2009, introduced several institutional reforms, such as the creation of the position of President of the European Council and the strengthening of the European Parliament's powers
• Further reforms have been proposed in areas such as the composition of the European Commission, the voting system in the Council of the European Union, and the role of national parliaments
• The Conference on the Future of Europe, launched in 2021, is a citizen-led series of debates and discussions intended to generate ideas for reforming the EU and shaping its future direction
• Reforming the EU institutions requires balancing the need for efficiency and decisiveness with the principles of democratic accountability, transparency, and subsidiarity

Balancing national sovereignty and supranationalism

• The balance between national sovereignty and supranationalism is a fundamental tension in the process of European integration
• Supranationalism refers to the transfer of decision-making powers from the national level to the EU level, with EU institutions having the authority to make decisions that are binding on member states
• Member states have traditionally been reluctant to cede sovereignty in sensitive policy areas such as taxation, social policy, and foreign and security policy
• The principle of subsidiarity, enshrined in the EU treaties, seeks to address this tension by ensuring that decisions are taken at the most appropriate level, with the EU only acting when objectives cannot be sufficiently achieved by member states alone
• The future of European integration will depend on finding a sustainable balance between the need for common action at the EU level and the desire of member states to maintain control over key policy areas