European Union
The European Union (EU) is a supranational political and economic
union formed in 1993, consisting 27 member states that are located
primarily in Europe, (A supranational union is a type of international organization
that is empowered to directly exercise some of the powers and functions which
have been otherwise reserved to state discretion). As a supranational
organization, it has deep political, economic and social integration, which includes
a common market, joint border control, a supreme court, and regular popular
elections.
EU policies aim to ensure the free movement of people, goods, services and
capital within the internal market; enact legislation in justice and home affairs;
and maintain common policies on trade, agriculture, and regional
development. Passport controls have been abolished for travel within the
Schengen Area.
Through the Common Foreign and Security Policy, the union has developed a
role in external relations and Defence. It maintains permanent diplomatic
missions throughout the world and represents itself at the United Nations, the
World Trade Organization, the G7 and the G20. Due to its global influence, the
European Union has been described by some scholars as an emerging
superpower.
Historical Evolution:
Factors Leading to the Establishment of the European Union:
1. Post-World War II Reconstruction: The devastation of World War II led
European leaders to seek ways to prevent future conflicts and promote
economic cooperation.
2. The Schuman Declaration (1950): Proposed by French Foreign Minister Robert
Schuman, this laid the groundwork for the European Coal and Steel Community
(ECSC), which aimed to pool coal and steel production among its members.
3. Formation of the European Coal and Steel Community (ECSC) - 1951: The
ECSC, established by the Schuman Declaration, marked the beginning of
supranational cooperation in Europe. It aimed to prevent future conflicts by
pooling coal and steel resources among member states.
4. Treaty of Rome (1957): Established the European Economic Community (EEC)
and the European Atomic Energy Community (EURATOM), aimed at further
economic integration and peaceful cooperation.
5. Expansion and Enlargement: The EU gradually expanded its membership,
integrating new countries and territories into its fold.
6. Single European Act - 1986: This treaty aimed to establish a single market by
removing trade barriers, harmonizing regulations, and promoting the free
movement of goods, services, capital, and people within the EU.
7. Maastricht Treaty (1992): Created the European Union as a political and
economic union, introducing the pillars of European Citizenship, Common
Foreign and Security Policy (CFSP), and Justice and Home Affairs (JHA).
8. Enlargement - Various Dates: The EU has expanded its membership multiple
times, integrating new countries from Central and Eastern Europe, as well as
the Mediterranean region. This expansion has contributed to stability,
prosperity, and democracy in these regions.
9. Single Market and Economic Integration: The EU focused on creating a single
market, removing barriers to trade, and implementing common policies to
promote economic growth and prosperity.
10.Eurozone and Monetary Union (1999): The adoption of the euro currency by
several member states marked a significant step towards further economic
integration.
11.Treaty of Lisbon (2007): Reformed EU institutions and decision-making
processes to make them more efficient and transparent.
Decision-making Processes and Their Impact on Member States:
a. Ordinary Legislative Procedure: Involves the European Commission
proposing legislation, which is then amended and adopted through
negotiation between the European Parliament and the Council of the
European Union.
b. Consultation Procedure: The European Parliament is consulted, but the
Council of the European Union has the final say.
c. Consent Procedure: The European Parliament gives its consent to a
legislative proposal without the power to amend it.
d. Co-decision Procedure: Involves joint decision-making between the
European Parliament and the Council of the European Union, providing equal
weight to both institutions.
e. Impact on Member States: EU decision-making processes can have
significant implications for member states, as EU laws and policies can
override national legislation in areas of EU competence. Member states must
balance their national interests with the collective goals of the EU.
Milestones achieved by European Union (EU)
Certainly, the European Union (EU) has achieved numerous milestones that have
contributed to its success as a union. Here are some additional milestones that
have played a significant role in shaping the EU and lessons that other organizations
could potentially learn from them:
1. Creation of a Single Market: The EU's establishment of a single market,
beginning with the Single European Act in 1986, has been crucial to its
success. This initiative aimed to remove barriers to trade, harmonize
regulations, and promote the free movement of goods, services, capital, and
people within the EU. Other organizations can learn from the EU's
commitment to creating a unified economic space, which fosters
competition, innovation, and economic growth.
2. Economic and Monetary Union (EMU): The introduction of the euro
currency in 1999 marked a significant step towards deeper economic
integration within the EU. The EMU aims to coordinate economic policies,
stabilize exchange rates, and promote economic convergence among
member states. Other organizations seeking to achieve similar levels of
integration could consider the importance of a common currency in fostering
economic stability and facilitating trade.
3. Enlargement and Integration: The EU's expansion to include new member
states from Central and Eastern Europe, as well as the Mediterranean region,
has been instrumental in promoting stability, prosperity, and democracy in
these regions. By extending membership opportunities to neighboring
countries, the EU has encouraged political and economic reforms,
strengthened regional cooperation, and enhanced security. Other
organizations could emulate the EU's inclusive approach to enlargement,
which prioritizes the promotion of shared values and mutual benefits.
4. Institutional Reforms: The EU has undergone various institutional reforms,
such as those outlined in the Maastricht Treaty, the Treaty of Amsterdam,
and the Treaty of Lisbon, to enhance its effectiveness, democratic
accountability, and transparency. These reforms have streamlined decision-
making processes, strengthened the role of the European Parliament, and
improved the protection of fundamental rights. Other organizations could
draw lessons from the EU's commitment to institutional adaptation and
reform, which are essential for addressing evolving challenges and
maintaining public trust.
5. Promotion of Peace and Stability: One of the EU's fundamental objectives is
to promote peace, stability, and prosperity within and beyond its borders.
Through initiatives such as the European Neighbourhood Policy, the
Common Security and Defence Policy, and development cooperation
programs, the EU works to prevent conflicts, support democratic transitions,
and address global challenges, including climate change and migration.
Other organizations could learn from the EU's proactive approach to
promoting peace and security through diplomacy, dialogue, and multilateral
cooperation.
Overall, the EU's success as a union can be attributed to its commitment to shared
values, cooperation, and solidarity among member states. Other organizations
seeking to emulate this success should prioritize inclusive governance, economic
integration, institutional flexibility, and the promotion of peace and stability in their
respective contexts.
Challenges Faced by the European Union:
1. Sovereignty Concerns: Balancing national sovereignty with supranational
governance remains a persistent challenge for the EU. Member states often
grapple with relinquishing control over key policy areas, such as immigration,
taxation, and defense.
2. Democratic Deficit: Critics argue that EU decision-making processes lack
transparency and democratic accountability. The complex institutional setup
of the EU, coupled with the perceived distance between Brussels and
citizens, has led to concerns about legitimacy and citizen engagement.
3. Economic Crises: The Eurozone debt crisis, which began in 2009, exposed
vulnerabilities in the Eurozone's economic governance and highlighted
disparities in competitiveness among member states. Subsequent recessions
and austerity measures have strained the cohesion of the EU and raised
questions about its ability to address economic challenges collectively.
4. Brexit: The decision of the United Kingdom to leave the EU (Brexit) following
a referendum in 2016 has presented one of the most significant challenges
in the history of the EU. Brexit negotiations, trade agreements, and the
implications for EU unity and cohesion have posed complex challenges for
both the EU and the UK.
5. Migration and Refugee Crisis: The EU experienced a migration crisis in the
mid-2010s, with a large influx of refugees and migrants from the Middle East
and Africa. The influx of migrants and refugees into Europe, particularly from
conflict-ridden regions in the Middle East and North Africa, has strained the
EU's asylum system and exposed divisions among member states over
burden-sharing, border control, and immigration policies. Finding a unified
approach to manage migration remains a formidable challenge for the EU.
This crisis strained EU solidarity and led to debates over immigration policies.
6. Rise of Populism: The rise of populist and nationalist movements in some EU
member states challenged the principles of European integration, as these
movements often advocated for more autonomy and less cooperation.
7. Enlargement Challenges: Expanding the EU to include new member states
with diverse economies and political systems required careful negotiation
and integration efforts.
8. Security Concerns: The EU faced security challenges, including terrorism and
cyber threats, which prompted discussions about enhancing cooperation in
defense and security policies.
Addressing these challenges requires concerted efforts by EU institutions, member
states, and stakeholders to strengthen the EU's resilience, effectiveness, and
relevance in an ever-changing global landscape.
Organisational Structure of the European Union
I. The Commission:
It consists of 17 members appointed by the member states to serve for 4
years. The President and the Vice- Presidents are appointed initially for 2
years but are generally reappointed for the rest of their term. The
Commission acts independently of any country in the interests of the
Community as a whole.
It has a mandate for implementation and guardianship of the Treaties. In
this it has the right of initiative i.e. putting proposals to the Council for
action. It executes the decisions of the Council. In case any member country
or individual renege upon its responsibilities, the Commission can take the
matter to the European Court of Justice.
II. The Council of Ministers:
It consists of the foreign ministers of the governments of member states. It
represents the nations’ interests and not the community interests. It takes
decisions under the Treaties. Legally all decisions are to be made by majority.
In actual practice, the unanimity rule is followed.
The Council works through several special councils, e.g. the Agricultural
Council, for discussing matters related to individual policies. Since 1974, the
Heads of States and Governments have also been meeting three times a year
at the European Council for discussing the affairs of the Community as also
matters connected with Foreign Policy. The term of the Presidency of the
Council is 6 months and it rotates among the member countries.
III. The European Parliament:
It consists of 518 members who are directly elected from all member
countries. France, Germany, Italy and the U.K. return 81 members each.
Spain 60 the Netherlands 25, Belgium, Greece and Portugal 24, Denmark 16,
Ireland 15 and Luxembourg 6. Several political parties- Socialists, European
Peoples Party (Christian Democratic Group), European Democrats (formerly
European Conservatives), Liberal Democrats and Reforms Group,
Communists and Allies, the Rainbow Group, the European Rights and
Independents—contest these elections in the member countries. The
Parliament has the right to be consulted on a wide range of legislative
proposals. It forms one arm of the Community’s Budgetary Authority.
IV. The Economic and Social Committee (ECSC):
It is an advisory institution. It consists of 189 representatives of employers,
trade unions, consumers etc. The ECSC has a separate consultative
committee of the members.
V. The European Court of Justice:
It consists of 13 judges and 6 advocate-generals. It is responsible for the
adjudication of disputes arising out of the application of the treaties. Their
judgments are enforceable in all member countries.
VI. The Court of Auditors:
It was established by a treaty signed on 22nd July, 1975 and came into
operation on 1 June, 1977. It replaced the former Audit Board. It consists of
12 members. It audits all income and current and past expenditure of the
European countries.
VII. The European Investment Bank (EIB):
It was created by the EEC Treaty to which its statute stands annexed. Its
governing body is the Board of Governors consisting of ministers designated
by member states. Its main task is to contribute to the balanced development
of the common market in the interest of the community by financing
projects; developing less-developed regions, for modernizing or converting
undertakings, developing new activities, or those of common interest to
several member states.
VIII. Community Law:
Provisions of the treaties and secondary legislation may be either directly
applicable in member states or only applicable after member states have
enacted their own implementing legislation. Secondary legislation consists
of regulations, which are of general application and binding in their entirety
and directly applicable in all member states; directives which are binding
upon each member state as to the result to be achieved within a given time,
but leave the national authority the choice of form and method of achieving
this result; and decisions which are binding in their entirety on their
addresses. In addition the Council and the Commission can issue
recommendations and opinions, which have no binding force.
IX. Legislative Process of the Community:
It starts with a proposal from the Commission to the Council. The Council
generally seeks the views of the European Parliament on the proposal, and
the Parliament adopts a formal opinion after consideration of the matter by
its specialist committees. The Council may also consult the economic and
social committee, which similarly delivers an opinion.
Mostly decisions are taken by majority. However, the reservations expressed
by the individual member states are also taken into account. The text
eventually approved can be substantially different from the original proposal
of the Commission.
X. Finances of the Community:
The resources of the community, levies and duties, have been surrendered to
it by the EC Treaty. The Budget is made by the Council and the Parliament
acting jointly as Budgetary Authority. The Parliament has control within a
certain limit, of non-obligatory expenditure i.e. expenditure where the
amount to be spent is not set out in the legislation concerned. It can also
reject the budget totally; otherwise the Council is the deciding body.
ECSC operations are partly funded by a turnover levy on coal and steel
industries of the community and partly from the general budget. The
European Union has developed over the years as a highly developed
economic community with an integrated economic base. It is now having a
single currency (Euro) and a single Banking Union system. It is now also
trying to supplement the existing economic integration with a viable political
integration of the European Community.
Related Articles:
1. European Free Trade Association (EFTA)
2. Role of European Union
European Free Trade Association (EFTA)
European Free Trade Association (EFTA)
The European Free Trade Association (EFTA) was established on May 5,
1960 as an alternative for European states that were not allowed or did not
wish to join the European Community (now the European Union (EU)).
The EFTA Convention was signed to January 4, 1960 in Stockholm by seven
states. Today only Iceland, Norway, Switzerland and Liechtenstein remain
members of EFTA. The Stockholm Convention was subsequently replaced by
the Vaduz Convention.
This Convention provides for the liberalization of trade among the Member
States. Three of EFTA countries are part of the European Union internal
Market through the Agreement on a European Economic Area (EEA), which
took effect in 1994. The fourth country; Switzerland, opted to conclude
bilateral agreements with the EU. In addition, the EFTA states have jointly
concluded free trade agreements with a number of countries worldwide.
Membership History:
Its original membership was United Kingdom, Denmark, Norway, Sweden,
Austria, Switzerland and Portugal. Finland became an associate member in
1961 (it later became a full member in 1986) and Iceland joined in 1970. The
United Kingdom and Denmark joined the European Community in 1973
(together with Ireland) and hence ceased to be EFTA members.
Portugal also left EFTA for the European Community in 1986. Liechtenstein
joined in 1991 (previously its interests in EFTA had been represented by
Switzerland). Finally, Austria, Sweden and Finland joined the European
Union in 1995 and hence ceased to be EFTA members.
Institutions:
EFTA is governed by the EFTA Council and serviced by the EFTA Secretariat.
In addition, in connection with the Agreement of 1992, two other EFTA
organizations were established, the EFTA Surveillance Authority and the
EFTA Court.
EEA-Related Institutions:
The EFTA Surveillance Authority and the EFTA Court regulate the activities
of the EFTA member in respect of their obligation in the European Economic
Area (EEA). Since Switzerland is not EEA member, it does not participate in
these institutions.
The EFTA Surveillance Authority performs the European Commission’s role
as guardian of the EFTA countries, while the EFTA Court performs the
European Court of Justice’s role for those countries.
The original plan for the EEA lacked the EFTA Court or the EFTA
Surveillance Authority and instead had the European Court of Justice and
the European Commission was to exercise those roles.
However, during the negotiations for the EEA agreement, the European
Court of Justice informed the Council of the European Union by way of letter
that they considered that giving the EU institutions powers with respect to
non-EU member states would be a violation of the treaties and therefore, the
current arrangement was developed instead.
Locations:
The EFTA Secretariat is headquartered in Geneva, Switzerland. The EFTA
Surveillance Authority has its headquarters in Brussels, Belgium (the same
location as the headquarters of the European Commission), while the EFTA
Court has its headquarters in Luxembourg (the same location as the
headquarters of the European Court of Justice).
Portugal Fund:
The Portugal Fund was established in 1975 when Portugal was still a member
of EFTA, to provide funding for the development and reconstruction of
Portugal after the end of the dictatorship.
When Portugal left EFTA in 1985, the remaining EFTA members decided to
nonetheless continue the Portugal Fund, so Portugal would continue to
benefit from it. The Fund originally took the form of a low- interest loan for
the EFTA member states to Portugal, to the value of US$ 100 million.
Repayment was originally to commence in 1988, but EFTA then decided to
postpone the start of repayments until 1998. The Portugal Fund has now
been dissolved by the Member States.
International Conventions:
EFTA also originate from the Hallmarking Convention and the
Pharmaceutical Inspection Convention, both of which are open to Non-EFTA
states.
Relationship to the European to the European Economic Area:
The EFTA members, except of Switzerland, are also members of the
European Economic Area (EEA).
Future of EFTA:
Norwegians have rejected in referendums to join the EU on two occasions.
At the time to the first referendum (1972) their neighbours the Danes joined.
The second time (1994) two other Nordic neighbours. Sweden and Finland
joined the EU. The two last governments of Norway have been unable and
unwilling to advance the question, as they both been coalition governments
consisting of both proponents and opponents.
Iceland is not likely to join the EU in the near future due to political
indifference towards the Union. Only one party supports starting entry
negotiations.
In mid-2005, representatives of the Faroe Islands have hinted at the
possibility of their territory joining EFTA. However, the changes of the
Faroes’ bid for membership are uncertain because, according to the EFTA
Conversion, only states may become members of the Association.
United Kingdom:
The United Kingdom benefited from the lack of common traffics for EFTA
members, by importing goods from the Commonwealth of Nations and
selling them on to other EFTA members.
Due to the advancement of the European Economic Community (EEC) and
the decision to focus on European, rather than the United States and
Commonwealth, as trading partners, the United Kingdom chose to apply for
EEC membership in 1961 (however, it did not becomes a member until 1973).
Related Articles:
1. EEC: European Economic Community: Nature, Objectives and its
Economic Impact
2. Latin American Free Trade Association (LAFTA)
