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European Integration Deepening / Widening...

The deepening of the integration process


Vertical integration
Policy expansion

The widening of the integration process


Horizontal integration
Geographical expansion

Intense nature
Treaty strengthening

Moderate nature
Treaty tweaking

Institutional strengthening
Can make widening process tricky to achieve

Institutional weakening
Can make deepening process tricky to achieve

European Integration Deepening as set out in treaties


Founding treaties 1950s common market 1986 Single European Act Community gains broader policy remit (free movement goods, services, persons, capital)... QMV in Council extended, EP power grows slightly (cooperation)... 1992 Maastricht procedure and timetable for EMU = more QMV in Council, EP powers grow into co-decision (some areas) 1997 Amsterdam EU gains powers in justice & home affairs (JHA). EP more co-decision 2009 Lisbon Treaty JHA strengthened, defence policy more recognised, new institutional posts (e.g. Foreign policy chief / European Council president)

European Integration Deepening via institutional changes


1. Institutions beginning to integrate / overlap and eventually share powers e.g. Council initiating more policies / EP influencing more policies Heads of government now assume agenda setting roles QMV used more often than unanimity in Council speeds up intergration Policy processes more supranational key and binding decisions taken without all member states approving e.g. Commission over competition policy, ECB in respect of monetary policy New institutional posts e.g. High Rep for Foreign Affairs / European Council President

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European Integration Deepening of policy areas...


1. Large expansion of EUs policy portfolio 1950s present. 2. But EU still has limited involvement in big spend policy areas (health, education, defence). CAP is the exception 3. Spillover has occured: policy development in one sphere has given rise to policy development in other spheres e.g. Single market >> social policy >> EMU >> fiscal pact etc.

Deepening of policy areas case study in spillover - single market


1. Basic idea - promotion of free movement of goods, services, capital, people 2. Basic idea requires establishing conditions for product standards 3. Becomes necessary to opening up competition in energy, transport, telecommunications markets 4. Sensible to set out a criteria for trading in EU market 5. Becomes fair to control the circumstances in which governments can or cant subsidise domestic industries 6. Makes sense to tackle those broader issues that have market implications too: employment law / consumer protection / working conditions... 7. Some states opt to prepare for economic & monetary union (EMU) 8. EU sets convergence criteria :low inflation, low interest rates, low debt, currency stability Stability & Growth Pact 9. Many countries join Euro same interest rates / external exchange rates 10.A deep level of integration has therefore taken place...

European Integration Widening via enlargement phases


1973 Enlargement Disruption of Franco-German informal leadership system Euro-cautious members added to the mix

But a bigger market place established

European Integration Widening via enlargement phases


1981 / 1986 Mediterranean Enlargements
A tilt to the south Inclusion of less prosperous states

European Integration Widening via enlargement phases


1995 Austria, Finland, Sweden Small, prosperous, well-functioning states
Virtually all of western Europe now in the EU

European Integration Widening via enlargement phases


2004/2007 Central / Eastern Europe states plus Cyprus/Malta

Europe-wide integration truly begins Inclusion of ex-Communist states

European Integration widening why has the EU embraced it?


1. Cost v benefit analysis (rational thinking by political elites...) yes some disadvantages, but outweighed by advantages... Economic advantages larger internal market Political / security advantages

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European Integration widening key impacts?


The EU may be becoming too large and its resources too stretched...
Political system under strain e.g. decision making is becoming more difficult Cultural issues, notably in relation to the East European states. The influx of cheap labour into Western Europe can be seen as both a benefit and a problem. Some of the new entries and proposed members have poor human rights records and are thought to bring the danger of imported organised crime. When new countries are considerably poorer it is feared that there will be large transfers of resources from rich to poor countries. Economic policy making becomes more difficult with so many different types of economy included

EU Integration - widening does it aid the deepening process?


Does a widening of the EU lead to a deepening of the EU? There was a surge of integrationist developments from the mid-1980s to the mid-1990s SEA / Maastricht. Such developments coincided with EU expansion. Monetary union has been a key development since 2000, and this has coincided too with EU expansion. Fiscal compact will apply to 25 of the 27 member states, including member states who have recently joined the EU New member states are keen to integrate fully - e.g. there are some recent converts to the Euro e.g. Estonia, Slovenia

EU Integration - widening does it hinder the deepening process?


Do some states support enlargement because this diverts attention and energy from greater integration? Preparations for the eastward expansion of 2004 clearly affected the treaties of Amsterdam and Nice, which were intended to have an integrationist agenda but were limited to administrative institutional adjustments to facilitate enlargement The two most recent enlargements have required time and resources to bring new members to the economic level of existing member states