The European Union

Taking Europe Into the 21st Century

 The European Union

My background
• PhD theoretical physics (Nijmegen) and MBA (Warwick)
• Set up a software company, worked at Philips Electronics
• Since 1991 at European Commission
– Managing policy and cooperation programs (IT related)
– Personal staff European Commissioner Liikanen (telecoms)
– Headed e-government, now head of IT for inclusion

• Managing policies and programmes (M€ 40-50 p.a.)

• Currently on EU Fellowship at UNC/Chapel Hill
 The European Union

Celebrating the European Union:

A Half Century of Change and Progress

• Since the creation of the EU half a century ago,

Europe has enjoyed the longest period of
peace in its history.

• European political integration is unprecedented

in history.

• EU enlargement has helped overcome the

division of Europe – contributing to peace,
European Union prosperity, and stability across the continent.
United in diversity
• A single market and a common currency
conditions for companies and consumers.

• EU has united the citizens of Europe – while

preserving Europe’s diversity.
 The European Union

What is the European Union?

• Shared values: liberty, democracy, respect
27 Member States
for human rights and fundamental freedoms,
and the rule of law.
Combined • Largest economic body in the world.
population of
EU Member
499 • World’s most successful model for advancing
States million peace and democracy.
• A unique institution – Member States
Percent of world’s voluntarily cede national sovereignty in many
7.4 population
areas to carry out common policies and
governance.
Percent of
global GDP 30 • Not a super-state to replace existing states,
nor just an organization for international
cooperation.
Percent of combined
59 worldwide Official
Development Assistance
• World’s most open market for goods and
commodities from developing countries.
 The European Union

EU Institutions
European Commission
• 27 Commissioners, representing the European
perspective, each responsible for a specific policy area.
• EU’s executive branch proposes legislation, manages
Union’s day-to-day business and budget, and enforces
rules.
• Negotiates trade agreements and manages Europe’s
multilateral development cooperation.
Council of the European Union
• EU’s main decision-making body, comprised of
European Commission President ministers of 27 Member States, representing Member
José Manuel Barroso State’s point of view.
• Decides on foreign policy issues.
• Council presidency rotates among Member States
every six months.
 The European Union

EU Institutions
European Parliament
• Voice of European citizens – members elected for
five-year terms.
• With the Council, passes EU laws and adopts EU
budgets.
• Approves EU Commissioners.
European Parliament in session

European Court of Justice

• Highest EU judicial authority.
• Ensures all EU laws are interpreted and applied
correctly and uniformly.
• Can act as an independent policy maker but unlike
the U.S. Supreme Court, the ECJ can only deal
with matters covered by the Treaties.
 The European Union

European Central Bank

• The European Central Bank (ECB) is the
central bank for Europe's single currency,
the euro.
• The ECB’s main task is to maintain the euro's
purchasing power and thus price stability in
the euro area.
• The euro area comprises the 16 European
The euro was introduced in 1999 Union countries that have introduced the
euro since 1999.
• The ECB operates independently from
Member State governments.
 The European Union

United in Diversity - The €uro

Cyprus Malta Slovakia

 The European Union

The €uro
€ In 1999, the euro area was established as a
currency in eleven of the then fifteen EU
Member States.

€ Of the 27 EU Member States today, sixteen

have adopted the euro.

€ One of the striking benefits of a single

European currency are low interest rates due
to a high degree of price stability.

€ The euro is as stable and credible as the best-

performing currencies previously used in the
euro area countries.
 The European Union

1951:
European Coal and

Steel Community
• In the aftermath of World War II, the aim was to
secure peace among Europe’s victorious and
vanquished nations and bring them together as
equals, cooperating within shared institutions.

• Based on a plan by French Foreign Minister

Jean Monnet and other leaders with Robert Schuman.
the first “European” ingot of steel
• Six founding countries – Belgium, the Federal
Republic of Germany, France, Italy, Luxembourg
and the Netherlands – signed a treaty to run heavy
industries (coal and steel) under common
management.
 The European Union

1957:

Treaty of Rome

• The six founding countries

expanded cooperation to other
economic sectors, creating the
Signing of the Treaty of Rome European Economic Community
(EEC) – or “common market.”

• As a result, people, goods,

services, and capital today
move freely across the Union.
 The European Union

1951

Founding
Members

Belgium
France
Germany
Italy
Luxembourg
Netherlands
 The European Union

1973

Denmark
Ireland
United Kingdom
 The European Union

1981

Greece
 The European Union

1986

Portugal
Spain
 The European Union

November
1989

Fall of the
Berlin Wall
sets the
stage for
unifying
Europe and
EU
enlargement
 The European Union

1995

Austria
Finland
Sweden
 The European Union

2004

Cyprus
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Slovakia
Slovenia
 The European Union

2007

Bulgaria
Romania
 The European Union

Candidate Countries

Croatia
Former Yugoslav
Republic of Macedonia
Turkey

Potential
Candidate Countries

Albania
Bosnia & Herzegovina
Iceland
Montenegro
Serbia including Kosovo
under UN Security Council
Resolution 1244
 The European Union

2007 Treaty of Lisbon

Taking Europe into the 21st Century
 The European Union

The Treaty of Lisbon at a Glance

• A More Democratic and Transparent Europe

• A More Efficient Europe

• A Europe of Rights and Values, Freedom,

Solidarity and Security

• A More Visible Europe on the Global Stage

 The European Union

The Treaty of Lisbon at a Glance

• A More Democratic and Transparent Europe

- A strengthened role for the European Parliament

- Greater involvement by national parliaments

- Decision-making of the Council must now be open to public

- A Citizens' Initiative
European Parliament

- Clearer categorization between Member State and EU

competences

- Explicit recognition of a Member State’s right to withdraw from

the Union
 The European Union

The Treaty of Lisbon at a Glance

• A More Efficient Europe

- Decision making based on a double majority system
from 2014 (vote can only be carried by 55% of
Member Countries who must represent at least 65% of
EU’s population)

- More Actions to be decided by majority voting in the

Council

- New full-time President of the European Council to give

more coherence to EU actions

- Improvement in the ability of the EU to act more

swiftly in policy areas such as freedom, security and
justice
 The European Union

The Treaty of Lisbon at a Glance

• A Europe of Rights and Values, Freedom,
Solidarity and Security

- Democratic values: Reinforcement of the values and

objectives on which the European Union is built

- Guarantee of the freedoms and principles in the

Charter of Fundamental Rights

- Solidarity between Member States in the event of a

terrorist attack or natural or man-made disaster

- Extended capacity to act on freedom, security and

justice including the fight against crime and terrorism
 The European Union

The Treaty of Lisbon at a Glance

• A More Visible Europe on the Global Stage

- A new High Representative for the Union in Foreign

Affairs and Security Policy

- A new European External Action Service

- A single legal personality for the Union

- Progress in European security and defense policy

 The European Union

The European Union and the United States

“America has no better

partner than Europe. Now
is the time to build new
bridges across the globe as
strong as the one that
bound us across the
Atlantic. Now is the time to
join together, through
constant cooperation,
strong institutions, shared
sacrifice, and a global
commitment to progress,
to meet the challenges of
the 21st century.”
President Barack
Obama
“The relationship between
the United States and
Europe is the world’s
strongest, most
comprehensive, and
strategically important
partnership. The United
States, and a united Europe
– this is really the
indispensable partnership.”
President of the
European Commission
José Manuel Barroso
 The European Union

Partners in Global Leadership

• EU and U.S. work together to develop
international standards:

– Fighting terrorism and transnational crime

– Advancing global trade liberalization

EU Commissioner for External

– Combating piracy and intellectual property
Relations Benita Ferrero- violations
Waldner and US Secretary of
State Hillary Clinton
– Spreading benefits of globalization

• EU and its Member States are helping restore

peace and stability in Afghanistan.

• EU and U.S. work together in the Middle East

Quartet to advance the peace process.

• When the EU and U.S. agree, others tend to

follow.
 The European Union

Shared Values and Responsibilities

• Freedom & Democracy
Support free elections, good governance, human rights,
and the rule of law around the world.

• Security
Cooperate to fight terrorism, limit the spread of nuclear
weapons, and work for global peace.

• Development
Together, EU and U.S. provide 80% of global
development assistance and an even larger share of
global humanitarian aid in times of disaster and
conflict.
 The European Union

A Dynamic
Transatlantic Economy
• EU and U.S. together account for 40% of total
global trade (more than $1.5 billion in
transatlantic trade every day).

• The $3.75 trillion EU-U.S. transatlantic economy

employs 14 million workers on both sides of the
Atlantic.

• Since 2001, Europe has accounted for roughly

two-thirds of total global investment flows into
the U.S. – by far the most significant source of
foreign investment in the U.S. economy.

BMW’s assembly plant is South Carolina’s
largest private sector employer.
The European Union
• European companies are the leading
foreign investors in the U.S.
– The UK, Germany, France, and the
Netherlands – top four sources of
jobs created by foreign investment
in the United States.
• American companies invest far more in
EU countries than in Asia.
– U.S. investment in India is half of
American investment in Sweden
and roughly the same as in Poland,
the Czech Republic, and Hungary
– Between 2000 and 2008, US firms
invested $26.4 billion in China, less
than U.S. investment in Belgium
and less than half of American
investment in Ireland
 The European Union

• The EU-US Summit

• At the last EU-US Summit on 10 June 2008,

European Commission President Barroso,
Slovenian Prime Minister Janez Janša and US
President Bush committed to the Transatlantic
role in:
– promoting international peace, stability,
human rights, international criminal justice,
US President Bush, Slovenian Prime the rule of law and good governance
Minister Janez Janša and European
Commission President Barroso at the 2008 – fighting terrorism while protecting the
EU-US Summit
fundamental freedoms of democracy
– combating climate change, promoting energy
security, helping developing nations lift
themselves out of poverty, and curing the
most crippling infectious diseases
 The European Union

• The EU-US Summit

• EU and US leaders also committed to:

– work together in conflict prevention and post-
conflict reconstruction
– encourage the world’s fastest growing economic
powers to assume their responsibilities in the
global rules-based system
– foster open, competitive and innovative
economies through free movement of goods,
persons, services and capital, while working
towards a prompt, balanced and ambitious
agreement in the WTO Doha Round that creates
new market access and strengthens growth in
both developed and developing nations
 The European Union

• The Transatlantic Economic Council

• The TEC is a political body to oversee and

accelerate government-to-government
cooperation with the aim of advancing economic
integration between the EU and the US.

• The TEC brings together Members of the

European Commission and Members of the US
Cabinet who carry the political responsibility for
the policy areas covered by the Framework.

• The TEC convenes a Group of Advisers,

consisting of the Co-chairs of the three existing
transatlantic dialogues (the Transatlantic
Legislators' Dialogue, Transatlantic Consumer
Dialogue and Transatlantic Business Dialogue).
 The European Union

• EU-US Aviation Agreements: Opening

the Transatlantic Skies

• In the margins of the 2007 EU-US Summit in

Berlin, the EU and US signed the first aviation
treaty between Europe and America.

The “Open Skies” Agreement:

• Encompasses 60% percent of world air traffic

• Is expected to generate billions of dollars in

economic benefits on both sides of Atlantic

• Is expected to generate up to 80,000 new jobs

and millions of additional passengers over the
next five years
 The European Union

Future of Transatlantic Relations

• EU and U.S. face common challenges that are global in
origin and impact. With global challenges, come global
responsibilities.

• EU and U.S., with our shared values and common

interests, are natural partners to give a lead in four
key areas:
– Promote peace, human rights and democracy
worldwide.
– Confront global challenges, including security and
non-proliferation.
– Foster prosperity and opportunity.
– Advance strategic cooperation on energy security,
climate change and sustainable development.
 The European Union

“Since no single nation can efficiently

and effectively deal with global
challenges such as climate change,
counterterrorism, non-proliferation,
pandemics and natural disasters on its
own, we commit ourselves to
strengthening our cooperation to
address these challenges.”

EU-U.S. Summit Declaration

Vienna, July 2006
 The European Union

But… what does ‘Europe’ do for the

European citizens?
 The European Union

Illustrating European collaboration

Action Plan for Aging Well in the

Information Society
• European Commission adopted 4-point Action Plan to improve quality of
life and reduce cost of care of elderly with the help of information
technology: 1) raise awareness, 2) reduce legislative and technical
barriers, 3) validate European-wide solutions 4) joint research
• European Commission proposed legislation for cooperation of Member
States to step up financial support for joint research
• Council of Ministers and European Parliament agreed this legislation,
resulting in investment of $800 million and alignment of national rules.
• Academics, user organisations, industry, public authorities are now
running many EU projects for independent living of elderly people in
situations of mild dementia, Alzheimer, risk of falling, social isolation.
 The European Union

Examples of EU research in IT for aging well

Smart shoes in EU SMILING project
Falls of elderly: frequent, costly,
and reduce quality of life – but…
technology can be of help

Fall sensors in vest, Second Life simulation in

EU CAALYX project
iWalker in EU Share-IT project
 The European Union

Example of EU legislation
• Temporary Workers Directive (Directive = EU Law)
• 3 million temporary agency workers to get rights for equal treatment
with permanent employees (pay, working hours, training, …)
• Proposed in 2002 by European Commission, requiring approval by
Council of Ministers and European Parliament
• Main opposition by UK, concerned about temporary agency workers
becoming less attractive; but also initial opposition by unions,
concerned about permanent employees
• Adopted in 2008, with still 3 years for entry into national law and a UK
exception (12 weeks rather than immediate equal treatment in UK).
 The European Union

Another example of EU
legislation:mobile phone rates

• Cell phone rates used to be very high and variable to call from one
country to another (roaming): the return-from-holiday bill shock
• European Commission in 2006 proposed lower and capped rates
• After a lot of opposition this was adopted as EU law in June 2007
• Consumer prices fell by 60%, traffic has gone up by
The European Union