TEST Flashcards
(63 cards)
- What was/is the Economic and Monetary Union created by the Maastricht treaty?
The Economic and Monetary Union (EMU)[1] is an umbrella term for the group of policies aimed at converging the economies of member states of the European Union at three stages. An economic and monetary union (EMU) is a type of trade bloc that features a combination of a common market, customs union, and monetary union
Economic and Monetary Union in three stages!
• Stage I: liberalization of capital movement (begin Jan. 1990)
• Stage II: margins in ERM progressively narrowed + E system of Centr Banks
• Stage III: fixation of exchange rate parities and transfer of responsibilities onto EC institutions – European Central Bank
- Explain the paradoxical nature of the ‘F-word’ in context of EU integration of course!
British MEPs “On the continent [federalism] is a harmless label, neither exciting nor controversial. In Britain, it carries connotations of unspeakable disloyalty and unmentionable perversity”
→ ICG dropped the word federal
- Emotionally charged word
- Paradox - the word has been dropped but the nature of integration has not changed (with or without it)
- How did the Maastricht treaty ratification process go?
In the first Danish referendum, on 2 June 1992, the treaty was rejected by a margin of 50.7% to 49.3%.[7] Concessions secured by the end of year in Edinburgh including, critically, the same exemption secured by Britain from the single currency (Denmark would not have to give up the krone), allowed for a second referendum. On 18 May 1993, Maastricht Treaty was endorsed by a vote of 56.7%.[8]
In Ireland, the Eleventh Amendment of the Constitution, allowing the state to ratify the Treaty, was approved in a referendum held on 18 June 1992 with the support of 69.1% of votes cast.
In September 1992, a referendum in France narrowly supported the ratification of the treaty, with 50.8% in favour. This narrow vote for ratification in France, known at the time as the ‘petite oui’, led Jacques Delors to comment that “Europe began as an elitist project in which it was believed that all that was required was to convince the decision-makers. That phase of benign despotism is over.”[9]
In the United Kingdom parliament ratification did not command a clear majority. In protest against the social-policy opt out, Labour opposed, while “anti-federalists” split the governing Conservatives. Prime Minister John Major was able to face down his “Maastricht Rebels” only by tying ratification to the survival of the government in a vote of confidence.[10]
Ratification of the treaty was completed by then twelve members of the EC by mid 1993 and came into legal fore on 1 November 1993.
- Name and shortly describe the three ‘pillars’ of the European Union created by the Treaty on European Union (up to 10 sentences/descriptions)!
Between 1993 and 2009, the European Union (EU) legally comprised three pillars. This structure was introduced with the Treaty of Maastricht on 1 November 1993, and was eventually abandoned on 1 December 2009 upon the entry into force of the Treaty of Lisbon, when the EU obtained a consolidated legal personality.
The Maastricht Treaty altered the former European treaties and created a European Union based on three pillars: the European Communities, the common foreign and security policy (CFSP) and cooperation in the field of justice and home affairs (JHI).
Within each pillar, a different balance was struck between the supranational and intergovernmental principles.
Supranationalism was strongest in the first pillar. Its function generally corresponded at first to the three European Communities (European Coal and Steel Community (ECSC), European Economic Community (EEC) and Euratom) whose organisational structure had already been unified in 1965–67, through the Merger Treaty. Later, through the Treaty of Maastricht the word “Economic” was removed from the EEC, so it became simply the EC. Then with the Treaty of Amsterdam additional areas would be transferred from the third pillar to the first. In 2002, the ECSC (which had a lifetime of 50 years) ceased to exist because the treaty which established it, the Treaty of Paris, had expired.
In the CFSP and PJCCM pillars the powers of the European Parliament, the Commission and European Court of Justice with respect to the Council were significantly limited, without however being altogether eliminated. The balance struck in the first pillar was frequently referred to as the “community method”, since it was that used by the European Community.
- Who was Jacques Delors and what was his contribution to European integration?
Delors became the President of the European Commission in January 1985. During his presidency, he oversaw important budgetary reforms and laid the groundwork for the introduction of a single market within the European Community. It came into effect on 1 January 1993 and allowed the free movement of persons, capital, goods, and services within the Community.[6][7]
Delors also headed the committee that in early 1989 proposed the monetary union to create a new currency—the Euro—to replace individual national currencies. This was done in the 1992 Maastricht Treaty.[8]
In opposition to the strident neoliberalism of American President Ronald Reagan (1981-1989) which dominated the American political agenda, Delors promoted an alternative interpretation of capitalism that embedded it in the European social structure. He synthesized three themes.[9] From the left came favouring the redistribution of wealth, and the protection of the weakest. Second a neo-mercantilist approach wanted to maximize European industrial output. A third was reliance on the marketplace. His emphasis on the social dimension of Europe was and remains central to a strong narrative that became a key element of the self identification of the European Union.[10]
The Delors presidency has been considered as the apex of the European Commission’s influence on European integration.
- What was the purpose of the Schengen treaty? When was it adopted?
The Schengen Agreement is a treaty which led to the creation of Europe’s Schengen Area, in which internal border checks have largely been abolished. It was signed on 14 June 1985, near the town of Schengen, Luxembourg, by five of the ten member states of the then European Economic Community.
- What was the purpose of the Single European Act? When was it adopted?
The Single European Act (SEA) was the first major revision of the 1957 Treaty of Rome. The Act set the European Community an objective of establishing a single market by 31 December 1992, and a forerunner of the European Union’s Common Foreign and Security Policy (CFSP) it helped codify European Political Co-operation. The amending treaty was signed at Luxembourg City on 17 February 1986 and at The Hague on 28 February 1986. It came into effect on 1 July 1987, under the Delors Commission. To facilitate the removal of NTBs, the SEA reformed the Community legislative process both by introducing the cooperation procedure and by extending Qualified Majority Voting to new areas.
- What are the ‘four freedoms’, and what is their relation to the internal market?
Rome Treaty 1957: “an area without internal frontiers in which the free movement of goods, persons, services and capital is ensured” = four freedoms
- What does ‘harmonization’ mean in EU integration?
-> approximation/harmonization of standards across EC
tax harmonization (who should pay VAT, where and how much),
→ Harmonization / new community-wide regulation
- What was Lord Cockfield’s White Paper about? What was its purpose?
A White Paper, Completing the Internal Market,[11] proposed by Lord Cockfield[12] was published in June 1985. It detailed 300 legislative proposals, including measures to eliminate a series of physical, technical and fiscal non-tariff barriers.
- By the European Commission - Lord Arthur Cockfield (British internal market commissioner) – in charge of the paper “succumbed” to ways of the Commission
- the White Paper contained powerful rationale for further economic integration
- The Paper identified 300 measures necessary to complete the internal market by the target date December 31st 1992
- 3 categories: physical, technical and fiscal
- Paper: a detailed action plan – a blueprint for implementation of the Single/Internal Market!
- Supported at the Milan summit
- What do we mean by ‘primary’ and ‘secondary’ EU law?
Primary law - It is the supreme source of law in the EU. It comes mainly from the founding treaties, notably the Treaty of Rome (which evolved in the Treaty of the Functioning of the European Union) and the Treaty of Maastricht (which evolved in the Treaty on European Union)
Secondary law comprises unilateral acts
Legally binding acts adopted usually, but not always, by the European Commission under powers given to it by the Council and European Parliament
- A delegated act under Article 290 of the TFEU.
- An implementing act under Article 291 of the TFEU.
- An act adopted using the legacy regulatory procedure with scrutiny (RPS).
- Which principle was established by the Cassis de Dijon case? What is its meaning for the internal market?
is an EU law decision of the European Court of Justice. The Court held that a regulation applying to both imported and to domestic goods (an “indistinctly applicable measure”) that produces an effect equivalent to a quantitative import restriction is an unlawful restriction on the free movement of goods.
products sold lawfully in one Member State may not be prohibited from sale in another.
- Evaluate Margaret Thatcher’s role in the European Communities!
Thatcher: allergic to EC’s “own resources” “I want my money back!”
BBQ
She opposed The Genscher-Colombo proposal (1981)
- Explain the British Budgetary Question: when did it take place, what was the context/issue and how was it solved?
In April 1970 the six founding member states of the then European Communities (EC) adopted the so-called ‘own resources system’[5] as the means of funding the EC budget. Under this system, revenues were to flow automatically to the EC budget rather than through agreement of the national parliaments, as had been the case until then, and calculated based on three elements:[6]
• Customs duties collected on imports from the rest of the world
• Agricultural resources
• VAT base.
As the UK’s VAT base in comparison with gross national product (GNP) was proportionally higher than in other member states, and the UK was more open than other member states to trade with non-EC countries, this system implied a disproportionate contribution by the UK when it joined the EEC in 1973. Additionally, the fact that around 70 per cent of the EC budget[7] was used to finance the Common Agricultural Policy (CAP), and that the UK had a small agricultural sector meant that the UK gained few receipts under the EEC’s redistributive policies.
To address this, at the Fontainebleau European Council in June 1984 Prime Minister Margaret Thatcher successfully negotiated the UK Rebate which was adopted in the May 1985 European Council decision
rebate (or UK correction) was a financial mechanism that reduced the United Kingdom’s contribution to the EU budget in effect since 1985. It was a complex calculation which equated to a reduction of approximately 66% of the UK’s net contribution – the amount paid by the UK into the EU budget less receipts from the EU budget.
- Characterize the ‘Mediterranean enlargement’! What were the big issues, who joined the European Communties and when?
The 1970s also saw Greece, Spain, and Portugal emerge from dictatorship. These countries desired to consolidate their new democratic systems by binding themselves into the EEC. Equally, the EEC was unsure about which way these countries were heading and wanted to ensure stability along its southern borders.[14] However François Mitterrand initially opposed their membership fearing they were not ready and it would water the community down to a free trade area.[15]
Greece joined the EU in 1981 followed by Spain and Portugal in 1986.
Both countries had been under dictatorships until just over a decade prior to the accession, with Spain under the military dictatorship of Francisco Franco, and Portugal under the corporatist dictatorship of the Estado Novo. This had meant that, whilst both countries had previously had relationships with the Communities in some form or another, they were ineligible to become members. The mid-1970s brought the death of Franco in Spain, and the Carnation Revolution in Portugal, which rapidly pushed both countries towards democracy.
- issues of agriculture, fisheries
- urged a reform of the CAP
Greece demanded financial assistance to meet the costs of the country’s adjustment to EC membership
– to COMPENSATE for the diversion of funds when Portugal and Spain join the EC in 1986!
- When was the first direct election to the European Parliament held?
June 1979
- What does ‘deepening’ and ‘widening’ mean in European integration terminology?
deeper integration and wider enlargement
- Why did the UK hold a referendum on European Communities membership just after its entry? How did it go?
The February 1974 general election had yielded a Labour minority government, which then won a majority in the October 1974 general election. Labour pledged in its February 1974 manifesto to renegotiate the terms of British accession to the EC, and then to consult the public on whether Britain should remain in the EC on the new terms, if they were acceptable to the government. The Labour Party had historically feared the consequences of EC membership, such as the large differentials between the high price of food under the Common Agricultural Policy and the low prices prevalent in Commonwealth markets, as well as the loss of both economic sovereignty and the freedom of governments to engage in socialist industrial policies, and party leaders stated their opinion that the Conservatives had negotiated unfavourable terms for Britain.
The referendum did temporarily achieve Harold Wilson’s ambition to bring the divided Labour Party together on the European issue; however, eight years later, Labour’s 1983 general election manifesto pledged withdrawal from the Communities.
The electorate expressed significant support for EC membership, with 67% in favour on a national turnout of 64%.
- Which countries joined the European Communities in 1973?
UK, Denmark and Ireland joined as part of the same expansion but Norway, who had signed the treaty, declined to ratify it and so it was amended to exclude that country.
- How many attempts did it take for the UK to become a member of the Communities? Why? How did it go?
The UK first applied to join the EU in 1961. This application was vetoed by the French government in 1963 and a second application was vetoed, again by the French, in 1967. It was only in 1969 that the green light was given to negotiations for British membership, with talks starting in 1970. The UK joined the European Economic Community (as it then was) on 1 January 1973, alongside Denmark and Ireland.
- Why was the European Council created? What was it’s role in relation to the other EC institutions?
While the European Council has no legislative power, it is a strategic (and crisis-solving) body that provides the union with general political directions and priorities, and acts as a collective presidency. The European Commission remains the sole initiator of legislation, but the European Council is able to provide an impetus to guide legislative policy
The European Council (informally EUCO) is a collegiate body that defines the overall political directions and priorities of the European Union. It is composed of the heads of state or government of the EU member states, along with the President of the European Council and the President of the European Commission
• 1975 – European Council = “European summits”
- regular meetings of top state officials Heads of State and government
- provide strategic leadership
- in intergovernmental format
- not a legislative decision-making body!
- What is the ‘Luxembourg Compromise’? When was it agreed? What was agreed?
The Luxembourg Compromise (or “Luxembourg Accord”) was an agreement reached in January 1966 to resolve the “Empty Chair Crisis” which had caused a stalemate within European Economic Community (ECC).
a de facto veto power was given to every state on topics that were deemed to be ‘very important national interest(s)’
The Common Agricultural Policy was born of the Treaty of Rome. CAP was partially reformed in 1966 as a result of the empty chair crisis and the Luxembourg Compromise
he Compromise had a restraining effect on the Commission. In stressing the vitality of a balance of powers between member state preferences and supranational ideals within the Community, it tethered the Commission to the Council. As a result, the process of integration slowed, and the minimal amount of legislation proposed by the Council limited the Commission’s power to implement policy. Overall, the administrative and initiative authorities that the Commission previously enjoyed on its own now needed the Council’s approval. In a joint meeting of the European Parliament, the Council and the Executives on 28 and 29 January 1966, it was agreed that the Commission must seek the Council’s approval on several policy measures. The compromise’s allowance for a veto also weakened the Commission’s ability to push for legislation. In knowing that any member state could terminate the effort with a no vote, the Commission was discouraged from proposing controversial and deeper integration policies.
- Describe the ‘Empty Chair Crisis’: when did it take place, what happened and why?
In July 1965, intergovernmentalist Charles de Gaulle boycotted European institutions due to issues he had regarding new political proposals by the European Commission.
De Gaulle believed that national governments should move towards integration and did not agree with the Commission’s attempt to create a shift towards supranationalism, extending powers beyond national borders.
After the failure of the Fouchet Plan and de Gaulle’s veto of the United Kingdom’s application for EC membership, the Commission attempted to move towards integration by proposing an idea that would combine the Common Agricultural Policy (CAP), the European Parliament, and Commission. De Gaulle supported the creation of the CAP and favoured its enactment. However, he disagreed with the Parliament’s new role, the Commission’s strength, the shift towards supranationalism, and the budget proposals for financing the CAP. De Gaulle made it a condition that majority voting with a right to veto must exist if France was to participate in the European Community. When de Gaulle was not granted a more intergovernmental Commission or voting and veto rights, the French representative left the Council of Ministers
- Why did the Brits change their mind and applied to join the Communities in 1961? How did it go?
• 180º policy turn in 1961 (under PM Harold Macmillan), Britain applied to join the EC → Easy access to the West European markets • Commonwealth/EFTA were not enough • United States (Kennedy): - thought British non-membership was awkward - Grand Design: idea of a transatlantic community of two equals (both federal) -> (no place for an UK intermediary)
- > Europe – not subservient to Washington in NATO
- De Gaulle was suspicious of British ‘special relationship’ with USA
- French fear of losing the leading role in the Community
- CAP negotiations could have been destroyed if Britain took part in the bargaining – results might not have been so favourable to France