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The European flag The European anthem
Group members:1.Saugata Sarkar- Roll no-44 2. Naveen Kumar- Roll no-42 The motto: United in diversity 3. Mohan Murari- Roll no-
Brief of the presentation
• What is the European Union? • How it came into existence- its evolution and various treaties? • What are the various EU Institutions? • How laws are made in EU? • What is Euro, its establishment, benefits and costs. • Some basic statistics of EU. • EU and the world. • Future of EU.
What is the European Union?
• • Largest economic body in the world. World’s most successful model for advancing peace and democracy. A unique institution – Member States voluntarily cede national sovereignty in many areas to carry out common policies and governance. Not a super-state to replace existing states, nor just an organization for international cooperation. World’s most open market for goods and commodities from developing countries.
Combined population of EU Member States
Percent of world’s population Percent of global GDP
Percent of combined worldwide Official Development Assistance
MAP of EU
Member states of the European Union Candidate countries
The treaties – basis for democratic cooperation built on law 1952 The European Steel and Coal Community 1958 The treaties of Rome: The European Economic Community The European Atomic Energy Community (EURATOM) 1987 The European Single Act: the Single Market 2003 Treaty of Nice 1999 Treaty of Amsterdam 1993 Treaty of European Union – Maastricht .
• In addition many Europeans were aware of the potential economic benefits of closer economic integration of the countries. . The European nations’ desire to hold their own on the world’s political and economic stage.Evolution of EU • EU is the product of two political factors: 1. Devastation of Western Europe during two World Wars and the desire for a lasting peace. 2.
the then French Foreign Minister affirmed on May 9 1950 in his declaration which launched the project that “ any war between France and Germany would become not merely unthinkable but materially impossible. Luxembourg and the Netherlands – signed a treaty to run heavy industries (coal and steel) under common management. • • .Evolution of EU ECSC-1952: • . Italy. For France and Germany. finding a way to live together in a durable peace was a fundamental political priority that the new community was designed to serve. Those two industries then still provided muscle for military power and Robert Schuman.. which had been at war with each other three times in the preceding eight decades.contd EU of today is the result of a process that began half a century ago with the creation of European Coal and Steel Community. the Federal Republic of Germany. France. Six founding countries – Belgium.
people. goods. services. • • • • • • • .1967: Provided for a Single Commission and a Single Council for the then three European Communities Enlargement of EU. Ireland and Denmark join EC. creating the European Economic Community (EEC) – or “common market” and European Atomic Energy Committee (Euratom) As a result. and capital today move freely across the Union.contd The six founding countries expanded cooperation to other economic sectors. 1992. Merger Treaty –Brussels. Single European Act (SEA)-1987: Provided for the adaptations required for the formation of one single market by Dec31.1973: UK..Evolution of EU • • Treaty of Rome -1958: .
.1993: .Evolution of EU • Treaty of Maastricht. the Maastricht Treaty created a new structure with three "pillars" which is political as well economic.by Jan 1999. It also introduced new forms of co-operation between the Member State governments . By adding this inter-governmental co-operation to the existing "Community" system. 'The Maastricht Treaty changed the name of the European Economic Community to simply "the European Community". This is the European Union (EU). entered into force on 1 November 1993.contd The Treaty of Maastricht which was signed in Maastricht on 7 February 1992.for example on defence. Committed them to adopting a common currency –euro. and in the area of "justice and home affairs"..
The Treaty of Nice.. Treaty of Lisbon: The Treaty of Lisbon was signed on 13 December 2007. Treaty of Nice: The Treaty of Nice. It dealt mostly with reforming the institutions so that the Union could function efficiently after its enlargement to 25 Member States.contd • • Treaty of Amsterdam : The Treaty of Amsterdam. signed on 26 February 2001. security and sustainable development. entered into force on 1 May 1999. transparency and participation. Its main objectives are to make the EU more democratic. meeting the European citizens’ expectations for high standards of accountability. openness. The Treaty of Amsterdam changed the articles of the Treaty on European Union. the former Treaty of the EU and the Treaty of the EC have been merged into one consolidated version. entered into force on 1 February 2003. signed on 2 October 1997. into numerical form. and to make the EU more efficient and able to tackle today's global challenges such as climate change. identified by letters A to S. . It amended and renumbered the EU and EC Treaties.Evolution of EU • . Consolidated versions of the EU and EC Treaties are attached to it.
1951 Founding Members Belgium France Germany Italy Luxembourg Netherlands .
1973 Denmark Ireland United Kingdom .
1981 Greece .
1986 Portugal Spain .
1995 Austria Finland Sweden .
2004 Cyprus Czech Republic Estonia Hungary Latvia Lithuania Malta Poland Slovakia Slovenia .
2007 Bulgaria Romania .
Candidate Countries Croatia Former Yugoslav Republic of Macedonia Turkey Potential Candidate Countries Albania Bosnia & Herzegovina Montenegro Serbia .
EU Institutions European Council (summit) Council of Ministers (Council of the EU) Economic and Social Committee Agencies European Parliament European Commission Committee of the Regions European Central Bank Court Court of of Justic Audit e ors European Investment Bank .
interest groups.How EU Laws are made Citizens. experts: discuss. consult Commission: makes formal proposal Parliament and Council of Ministers: decide jointly National or local authorities: implement Commission and Court of Justice: monitor implementation .
European Council Summit Summit of heads of state and government of all EU countries Heldat least 4 times a year Sets the overall guidelines for EU policies .
• Has monopoly in proposing new legislation • Executive organ • Guardian of the treaties and monitors compliance with EU laws by member countries • Represents the EU on the international stage . Belgium • Consists 27 independent members.The European Commission – promoting the common interest • Headquartered at Brussels. • Entire Commission has to be approved by the European Parliament. one from each EU country • President of the Commission is chosen by member states and then the President chooses other members in consultation with the states.
Council of Ministers – voice of the member states • • Represents the interests of member states. One minister from each EU country Presidency: rotates every six months Decides EU laws and budget together with Parliament Manages the common foreign and security policy • • • • . Is clearly the controlling authority within the EU since draft legislation from the Commission can become EU law only if the Council agrees.
Council of Ministers – number of votes per country Germany. Czech Republic. Hungary and Portugal Austria. Ireland. France. Italy and the United Kingdom Spain and Poland Romania Netherlands Belgium. Greece. Luxembourg and Slovenia Malta Total: 29 27 14 13 12 10 7 4 3 345 “Qualified majority” needed for many decisions: 255 votes and a majority of member states . Lithuania. Latvia. Slovakia and Finland Estonia. Bulgaria and Sweden Denmark. Cyprus.
The European Parliament – voice of the people Number of members elected in each country (January 2010) 17 Belgium 17 Bulgaria Cyprus 6 Austria 22 Finland 72 France Germany 22 Greece Hungary Ireland 12 Italy 72 22 99 13 8 Latvia Lithuania 12 6 Luxembourg Malta 5 Romania Slovakia 13 Slovenia Spain 50 Sweden 18 7 33 Czech Republic 22 Denmark 6 Estonia 13 25 Netherlands Poland 22 Portugal 50 72 United Kingdom Total 736 .
• • . Has the right to vote on the appointment of Commissioners as well as veto some laws such as the EU Budget and single market legislation. Debates legislation proposed by the Commission and forwarded to it by the Council It can propose amendments to that legislation which the Commission and ultimately the Council are not obliged to take up but often will.The European Parliament – voice of the people Has 736 members directly elected by the population of the member states • • Primarily a consultative rather than a legislative body.
The European Parliament – voice of the people Number of members elected in each country (January 2010) 17 Austria Belgium 17 Bulgaria Cyprus 6 22 Finland 72 France Germany 22 Greece Hungary Ireland 12 Italy 13 8 Latvia Lithuania 12 Romania Slovakia 13 Slovenia Spain 50 Sweden 33 99 6 Luxembourg Malta 5 7 Czech Republic 22 Denmark 6 Estonia 13 22 25 Netherlands Poland 50 18 72 United Kingdom Total 736 72 22 Portugal .
The Court of Justice 27 independent judges. one from each EU country Rules on how to interpret EU law Ensures EU countries apply EU laws in the same way .
employers.The European Economic and Social Committee. consumers etc Advises on new EU laws and policies Promotes the involvement of civil society in EU matters .Voice of 344 Society Civil members Represents trade unions. farmers.
European Court of Auditors 27 independent members Checks that EU funds are used properly Can audit any person or organisation dealing with EU funds .
The euro area comprises the 15 European Union countries that have introduced the euro since 1999. The ECB’s main task is to maintain the euro's purchasing power and thus price stability in the euro area.European Central Bank • • • The Maastricht Treaty called for the establishment of the ECB. • • The euro was introduced in 1999 • . The ECB operates independently from Member State governments. Controls Money Supply and thus Interest rates. the euro. The European Central Bank (ECB) is the central bank for Europe's single currency.
1.The Euro • • • EMU not enshrined until 1992 Maastricht treaty The 12 countries agreeing to the euro locked their exchange rates against each other on Jan 1. Pan. 3. Benefits of Euro: 1. Significant savings from having to handle one currency.exchange and hedging costs. Easy comparison of prices across EMU. Boost to development of pan-European capital market.lower cost of raising capital 5.virtual currency Euro appeared as physical currency on 1. 2. Producers forced to find ways to reduce costs to maintain their profit margins. 1999. 4. .European capital market offers range of investment options for both individuals and institutions.2002.
Beating inflation European Economic and Monetary Union: stable prices Average annual inflation in the 15 EU-countries that used the euro in 2008 .
EU not an optimal currency area. . 3. National Authorities have lost control over monetary policy.The Euro Costs of Euro: 1. 2.political Union i. Euro puts economic cart before political horse.e a single currency should follow and not precede political union.
one side common Notes: no national side EU countries using the euro EU countries not using the euro .The euro – a single currency for Europeans Can be used everywhere in the euro area Coins: one side with national symbols.
security and justice 2% The EU as a global player: including development aid 6% Other. administration 6% Natural resources: agriculture. environment 41% Sustainable growth: jobs. freedom. regional development 45% . competitiveness.How does EU spend its Money 2010 EU budget: €141.5 billion = 1.20% of gross national income Citizens.
France 544 506 410 357 313 305 295 244 230 131 111 93 92 83 77 68 63 62 Slovakia Estonia Denmark Netherlands Belgium Slovenia Cyprus Luxemburg Malta 3 0.3 49 43 43 34 30 20 9 Spain Sweden Germany Poland Finland Italy United Kingdom Romania Greece Bulgaria Hungary Portugal Austria Czech Republic Ireland Lithuania Latvia How big are the EU countries? Surface area in 1 000 km² .
8 0.3 2.8 10.0 9.8 38.Germany France 64.3 4.5 11.3 2.1 21. 2009 500 million total .5 10.5 0.1 45.3 8.3 0.3 10.4 5.5 16.4 7.0 1.6 5.6 10.5 3.1 How many people live in the EU? Population in millions.5 Slovakia Finland Ireland Lithuania Latvia Slovenia Estonia Cyprus Luxemburg Malta 5.6 60.4 61.4 United Kingdom Italy Spain Poland Romania Netherlands Greece Belgium Portugal Czech Republic Hungary Sweden Austria Bulgaria Denmark 82.
EU AND THE WORLD .
1 000 km² 16 889 9327 9159 4234 365 EU China Japan Russia United States .The area of the EU compared to the rest of the world Surface area.
2009 1339 500 307 128 142 EU China Japa n RussiaUnited States .EU population in the world Population in millions.
How rich is the EU compared to the rest of the world? 38 700 27 800 25 100 12 508 9819 4 400 3 329 1 326 468 Japan Russia United States EU China Japan 12 200 EU China Russia United States Size of economy: 2008 gross domestic product in billion of euros Wealth per person: 2008 gross domestic product per person .
2007 .The EU is the biggest provider of development aid in the world The EU provides 60% of all development aid 93€ 53€ 44€ EU Japan United States Official development assistance per citizen.
2% United States 14.9% Japan 6.The EU – a major trading power Share of world trade in goods (2007) Share of world trade in services (2007) EU 17% EU 28.5% Others 53.6% United States 18.5% Japan 5.5% Others 40.8% China 9.2% China 5.8% .
. The EU is the main exporter in the world and the second biggest importer. The United States is the EU’s most important trading partner. capital and people can now move freely across national borders.9% of global imports. services. most of whose exports enter the EU duty-free or at reduced rates of duty. The European Union is also an important trading partner for less developed countries. The single market has made trade between them much easier as goods.1% of world exports and 18. This preferential access to the EU market is aimed at boosting the economic growth of poorer countries around the world. The EU accounted for 18. although levels vary between the member states. • • • . followed by China. Trade between EU countries themselves represents two thirds of all EU trade. its trade with the rest of the world accounts for approximately a fifth of global exports and imports.The EU – a major trading power • Although the EU makes up only 7% of the world’s population.
commodity and energy supply issues will also be a matter of concern . • Great deal of variance in annual per capita income within individual EU nations • Successful Enlargement process is required for integration of newly joined members Demographic Challenge: • Aging populatio will have broad based adverse effects . By 2050 the Euro area will have 2 workers per one pensioner as opposed to the current ratio of four Limited Natural resources: • Since the Euro area has limited natural resources .Future challenges ahead of EU Enlargement challenge: • Enlargement of EU has exacerbated economic and social disparities across the EU.
Future challenges ahead of EU European sovereign debt crisis/PIGS crisis: • The Greek crisis has cast doubts on the future of the euro in a way no previous crisis has. the political will to implement required policies and increasing doubts about the integrity of the ECB. The real problem with the euro is the weaknesses of the Eurozone economies. There is an urgent need for co-ordinating the political mechanism with the economic apparatus created while ushering in the common currency • • .
The Greek Crises? A Euro Crisis? • • • Common monetary policy in EMU. The Greek crisis shows what can happen without a sound national fiscal policy. . but separate fiscal policy. The Greek deficit is so large that it comprises the Government’s ability to borrow.
democracy and human rights. and in achieving sustainable development. . Its soft power promotes stability.The EU in the World The EU is thus a global player. prosperity. delivers concrete results in the fight to eradicate poverty.
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