LECTURE 1 United in diversity: the European project in the making
The EU A economic and political unions of 27 member states with its own institutions, governing bodies
and political cycle. It’s a mixture of intergovernmental and supranational policy making
Binding legal provisions 1) Primary legislation: treaties
2) Secondary legislation; directives and regulations + CJEU rulings
Directives legislative acts that all EU countries should achieve
regulations binding legislative acts it must be applied entirely across EU
CJEU Doctrines
- Direct effect: EU law is directly enforceable in national courts
- Supremacy of EU law over national law
Subsidiarity The EU should only deal with a subject when action at European level is more efficient than at
national or regional levels
Conferral Only those competences conferred upon the EU by the Treaties
Proportionality The content and form of the action does not exceed what is necessary to achieve the objectives
set by the Treaties
The treaty of Paris Form an area of free trade for several resources including coal, steel and iron ore, chosen for
their key role in industry and the military.
ECSC European Coal and Steel community
Supranationals A level of governance above the nation state
- A group of them was created to legislate the ECSC
- Council of Ministers, Common assembly and court of Justice
from these key bodies the later EU would emerge
EEC European Economic Community (later became EU) created in the Treaty of Rome
Treaty of Rome Success of the ECSC led to the member nations signing two new treaties in 1957, both called the
1957 treaty of Rome.
Created two new bodies: the European Atomic Energy Community (Euratom), and the European
Economic Community.
This EEC created a common market among the member nations, with no tariffs or impediments
to the flow of labour and goods
- Creation of the internal market
- Social policy remained national responsibility
- Coordination instead of harmonisation
- Gender and non-discrimination in terms of free movement
Maastricht Treaty (on Changed the EEC into the newly named European Union.
European Unions) Broadened the work of the supranational bodies
1993 Involvement in the domestic affairs of member nations on “justice and home
affairs”
Single European currency created (plus conditions for membership)
It's basically the foundation that gave the union the power to enact instruments on the social
front.
Treat of Amsterdam Brings employment, working and living conditions into the EU
Social chapter & employment chapter
- Broadening of health, safety and working regulations
- New directives
- Stronger and more active role for European Court of Justice
Lisbon Treaty The Convention on the Future of Europe was created in 2002 to create an EU constitution, and
the draft, signed in 2004, aimed to install a permanent EU president, a Foreign Minister and a
Charter of Rights.
The moment that social policy coordination really became more prominent on the European
level It became part of what we known as primary law and is therefore legally binding.
Horizontal clause An additional newly implemented by the Lisbon strategy. Horizontal Clause which means that it
, should be taken into account in all possible policies developed by the EU. There are two ways to
interpret it
a) Critics useless, way too vague to be of legal value. In this sense it's a non-binding clause =
soft love found its way into the treaties
b) Those who say of course it is soft law but it is important progress in the development of
social policy in the EU because it is binding in a procedural sense in a procedure of the EU
to develop new initiatives and new programs it should from now on always reflect on
these aims. this makes it harder to promote or implement projects that are opposed to
any of this of these aims = more optimistic
Council of Lisbon Globalization and the challenges of a new knowledge-driven economy, need for a greater social
cohesion.
- Modernizing the European social model
- A new method: the Open Method of Coordination (OMC)
The single market The European Single Market, Internal Market or Common Market is a single market which seeks
to guarantee the free movement of goods, capital, services, and labour – the ‘four freedoms‘ –
within the European Union (EU)
- It also has an increasing international element, with the Single Market represented as
one in international trade negotiations.
- Benefits (look at slides for disadvantages and advantages
Hechser-Ohlin If you allow international division of Labor, then every country can focus on their own
competitive advantage. if everyone do's what they do best then you take away trade barriers so
that these goods can be traded easily , everyone will be better off in the end
The euro = single 9069 this is very important towards removal of trade barriers and creating a single market snake
currency in the tunnel idea: each country would commit to a border with the other countries in the euro
zone
EMS European Monetary System (1979) to fix exchange rates into the European Currency Unit (ECU)
to stabilize exchange rates and counter inflation.
Stability and Growth Designed to ensure budgetary discipline after creation of the euro (1997) (euro launched in 1999)
Past
OCA = optimal currency An optimal currency area (OCA) is the geographic area in which a single currency would create
area the greatest economic benefit.
(see criteria page 15) Countries that share strong economic ties may benefit from a common currency.
This allows for closer integration of capital markets and facilitates trade.
However, a common currency results in a loss of each country's ability to direct fiscal and
monetary policy interventions to stabilize their individual economies. (criteria, see slide)
EU spending - The EU budget stands at about 1% of the 28 EU countries' gross domestic product (GDP)
- Five of these funds, the European Structural and Investments Funds (ESIF), represent
33% of the total budget.
- Around 6% of the budget goes to the administration of the European institutions,
whereas around 94% is allocated to various European programmes.
- There are more than 100 authorities managing EU funds. 20% of these are managed
directly by the European Commission. The remaining 80% are managed by other
authorities.
The EU budget - It has recipients who receive more than they pay but also contributors who pay more
than they receive but they benefit from it in another way
Fundamental Very different economic realities together with very different institutions and policies with as
conundrum only coordination of the major policy domains the Open Method of Coordination
YET we have a currency union with one currency, one central bank … and only limited
mechanisms for cross -country levelling CONTRADICTION
Social policy EU Hard law only in limited set of domains
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