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)
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- Purely intergovernmental organization ( Has been replaced by OECD)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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