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  7. Multinationals and European Institutions. (HBBA24C)

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Summary European Institutions (2021/2022)
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  • Grado
  • Multinationals and European Institutions. (HBBA24C)
  • Institución
  • Katholieke Universiteit Leuven (KU Leuven)

Complete summary of the part "European Institutions" of the course Multinationals and European Institutions (HBA24C). This course was taught by Professor A. Pauwels and A. Sels in 2021/2022. (BBA KU Leuven)

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Información del documento

  • 1 de agosto de 2022
  • 23
  • 2021/2022
  • Resumen

Temas

  • european institutions
  • bba
  • kul
  • 20212022

Escuela, estudio y materia

  • Katholieke Universiteit Leuven (KU Leuven)
  • Business Administration
  • Multinationals and European Institutions. (HBBA24C)
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European Institutions
Part 1: Introduction

What is the EU?
 EU is an international organization
- Interaction between several states
- Cooperation on a permanent base with common goals
- This implies several rules/conditions the members must respect
- Established by signing a treaty  Contract between states
- This international organization is now a separate legal entity
- Number of organs/institutions are established within this framework ( To achieve goals)
- Other examples  UN, NATO, World Trade Organization, …
- EU is (mostly) a supranational organization ( Special type of international organization)

 International organizations ( 2 types)
1) Supranational organization
- Member states transfer sovereignty to the organization
- This implies member states partially give up control
- Decisions are taken by majority-voting and are legally binding for all member states
- In some cases, adaptation of some decisions will be against will of some member states
- Examples  EU (mostly),

2) Intergovernmental organization
- No transfer of power/sovereignty to the organization
- Implementation of new decision is not legally binding ( Recommendation)
- Organization can impose legally binding decisions ( If all member states agree)
- In case of majority-voting  Decision is only binding for members that voted in favor
- Examples  UN, IMF, NATO, WHO, OPEC, …

Historical overview of European integration
1) After WW2
 Europe faced some challenges
- Rebuilding infrastructure & economy after WW2  Very costly
- European nations were looking for a way to make future wars impossible
- The solution to these issues is/was increased co-operation between European nations
- This resulted in the creation of 3 European organizations (with very specific goals)
- These initiatives were all still intergovernmental

 Creation of Organization for European Economic Co-operation (1948)
- Established to distribute the financial aid granted by the Marshall Plan
- USA invested a large sum of financial aid to rebuild Europe after WW2
- Only condition  Creation of a new international organization
- Membership of mainly West-European states, USA, and Canada
- Purely intergovernmental organization ( Has been replaced by OECD)

, Creation of the Council of Europe (1949)
- Idea of Winston Churchill  European cooperation between former enemies
- European cooperation based on a partnership between France & West-Germany
- Cooperation based on several values  Democracy, human rights & rule of law
- Purely intergovernmental initiative ( Small step towards political cooperation)
- Not associated with EU  Separate European organization
- One of oldest European organizations  Still exists today
- Started with 10 member states and counts 47 member states today ( Bigger than EU)

 Creation of the North Atlantic Treaty Organization (= NATO)
- Established in 1949
- Military alliance  Due to possible communist threat of USSR
- Not a purely European organization  US and Canada play a big role
- Purely intergovernmental initiative

2) 1950’s
 First big steps in European integration process are taken
- Former foreign minister of France took the initiative ( Schuman Plan)
- European cooperation & integration in specific policy areas to make future wars impossible
- First supranational organization after WW2 ( ECSC)

 ECSC (1951)
- ECSC  European Coal and Steel Community
- Unification of French and German coal and steel industry + regulation by higher authority
- Membership of 6 states: Benelux, Germany, France & Italy ( Founding fathers of EU)
- Promotes sectoral integration ( Spill-over to other sectors)
- Established by Treaty of Paris ( Schuman Plan)

 EDC (1952)
- EDC  European Defense Community
- Created during times of political instability in the world + lack of protection for Europe
- USA wants to rearm Germany against external threat of communism
- Integration of European military forces under supranational command
- France refused to ratify this treaty due to multiple reasons
- Why?  Fear/distrust of Germany + French military sovereignty + absence of the UK
- EDC failed to institutionalize

 Western European Union (1952)
- Created as alternative to EDC
- Purely intergovernmental organization of collective military defense
- This time the UK was involved to please France
- West-Germany was rearmed because of this organization

,  EEC and EAEC (1957)
- EEC  European Economic Community
- EAEC  European Atomic Energy Community
- Established by the Treaties of Rome
- Benelux countries decided to focus on economic integration ( Military = Too complex)
- Goal  Using economic integration as a method of keeping peace in Europe
- Establishment of a common market
- Establishment of a common commercial, agricultural, transport and competitional policy
- Same 6 members as ECSC + supranational features

3) 1960’s
- Crisis of European integration
- France was very reluctant to giving up its sovereignty

3) 1970’s
- Oil crisis  No coordinated common European response
- First steps towards European political and monetary cooperation

4) 1980’s
- New start for European Integration
- First revision of the Treaty of Rome  Single European Act (1986)
- The goal of a single market was still opposed by many barriers ( Requires new legislation)
- New initiatives for economic integration + deadline for a single/common market ( 1992)

5) 1990’s
- Late 1980’s  Collapse of Soviet Union + German reunification ( Many challenges)
- Reunification of Germany required increased European economic integration
- Establishment of the EU (= European Union)
- Established by the Treaty of Maastricht (1992)
- Structure of EU  3 pillars
- ECSC, EEC and EURATOM are integrated into the EU ( First pillar of EU)
- Establishment of economic and monetary union ( First pillar of EU)
- CFSP  Common Foreign and Security Policy ( Second pillar of EU)
- Cooperation in the field of Justice and Home Affairs ( Third pillar of EU)
- First pillar of EU is supranational
- Second and third pillar of EU is intergovernmental
- EU is both intergovernmental and supranational
- Revision of treaty was required due to possible future enlargement of EU
- Treaty of Amsterdam (1997)  First revision of Treaty of Maastricht ( Insufficient)

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