History of the European Union Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
Fakultät für Wirtschafts- und Organisationswissenschaften www.kit.edu
04.08
EU and Euro Crisis, UniBW Unit 1
Structure ! Against all odds – Franco-German cooperation after World War II ! European Coal and Steel Community (ECSC) ! Important treaties and further enlargement
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
Against all odds – Franco-German Cooperation after World War II
Francois Mitterand, Helmut Kohl Charles de Gaulle, Konrad Adenauer
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
Franco-German cooperation after world war II ! May, 8th, 1945: End of World War II ! September, 19th, 1946: Churchill proposes the United States of
Europe (èCouncil of Europe, May 1949, Treaty of London) ! 1945-1950: Before the background of an intensified East-West
Conflict, France (or French politicians) considers the sovereignty of (West-) Germany and its Re-Militarization a necessity for a peaceful development in Europe (èSchuman Declaration) ! May, 23rd, 1949: Military occupation zones in Germany, controlled by
France, UK and the USA merge to form the Federal Republic of Germany (Oct, 7th German Democratic Republic)
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
Franco-German cooperation after world war II ! January, 22nd, 1963: Élysée Treaty (Treaty of Friendship) – concluded
by Charles de Gaulle and Konrad Adenauer – seals reconciliation between France and Germany and calls for consultations on all important questions but in particular on: ! Foreign Policy ! Security Policy ! Cultural and educational policy
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
European Coal and Steel Community (ECSC)
Jean Monnet, Robert Schuman
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
European Coal and Steel Community (ECSC)
! May, 9th, 1950: Schuman Declaration: French Foreign Minister
Robert Schuman proposes that Franco-German coal and steel production be placed under a common High Authority ! Open for further members ! None of the members can on its own make weapons of war to turn
against the other member(s) ! Common authority ensures equal access to the sources, modernization of
production, the establishment of low prices and improved working conditions ! Coal and steel was considered major driving force for a fast growing
economy in Europe
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
Institutions and tasks of ECSC ! Institutions ! High Authority: Independent collegiate executive with the task of
achieving objectives of the community ! Assembly: Representatives of national Parliaments with supervisory
power ! Council: Representatives of national governments (Presidency changes
every 3 month) aim to harmonize national and community interests. ! Court of Justice: Judges (nominated for 6 years) ensure that law was
observed in the interpretation and implementation of the Treaty. ! Tasks ! Ensure fair competition ! Ensure appropriate wages ! Ensure sufficient investments
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
Founding members of ECSC ! Members ! Belgium ! France ! Italy ! Luxembourg ! The Netherlands ! Germany
! Note that the number
of stars in the flag matches the number of ECSC members. 8
KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
Important treaties and further enlargement
EU “Barcode“ Flag 9
KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
The Treaties of Rome ! June 1955: Meeting of ECSC foreign ministers in Italy – nice weather
in Sicily – who decided to relaunch the European idea and to go far beyond the coal and steel industry. A committee was set up. ! March 25th, 1957: Two treaties (signed by the six members of the
ECSC) gave birth to the European Economic Community (EEC) and to European Atomic Energy Community (Euratom): The Treaties of Rome - both of which came into force in 1958. ! The EEC from its birth was based on a series of institutions, most
important the European Council, the European Commission, the European Parliament and the European Court of Justice. ! The EEC treaty committed the signing members to create a common
market within 12 years by gradually removing all restrictions on internal trade and reducing barriers to the free movements of people. 10
KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
The Treaties of Rome ! Development of common agricultural and transport policies ! EEC adopted a Common agricultural policy, which created a free market
inside the EEC and established protectionist policies that guaranteed prices (and therefore sufficient revenues) to EEC farmers. ! EEC agreed on liberalization of the road freight market and the air market
(liberalization of rail market followed much later). ! Creation of the European Social Fund (promoting geographical and
occupational mobility of workers) and the European Investment Bank (promoting European infrastructure projects)
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
The Treaties of Rome ! Two fundamental objectives of the second treaty that established
Euratom: ! Ensure modern installations to guarantee safe production of nuclear
energy, ! Ensure regular and equitable supply of nuclear ores and fuels.
! The treaties of Rome clearly mark a major milestone in EU s
development. The treaties put in motion a process in which progressive economic integration has been paving the way to the long term objective, the political union.
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
European Economic Community 1957-1968 ! January, 1960, European Free Trade Assocoaition (EFTA) came to
birth with signing members Austria, Denmark, Norway, Portugal, Sweden, Switzerland and UK (trade bloc alternative to ECC) ! In order to increase its political influence, UK wanted to join the EEC
club (together with Denmark and Ireland). However, UK s application was vetoed by de Gaulle twice (1963, 1967). ! Greece applied for membership in late 50ies but was turned down
because of underdeveloped economy. Negotiations in 60ties were interrupted by military coup in 1967. ! Spain and Portugal had requested membership in 1962, but both
were dictatorships and the request was denied. ! Tariffs were fully eliminated in July 1968, thus EEC had the status of a
customs union. 13
KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
European Economic Community 1969-1986 ! After de Gaulles resignation in 1969, application of UK, Denmark and
Ireland were accepted and they became members in 1973. ! Establishment of the European Regional Development Fund (ERDF)
in 1975 to foster regional cohesion (promoting Greenland, Ireland, Northern Ireland and Southern Italy) ! After returning to civilian government in 1974, Greece applied again.
This time EEC approved application in order to ensure democratic development. Greece became a member in 1981 and strongly benefitted from the ERDF. ! The membership of Greece can be considered a milestone in the
integration process. For the first time a country became a member for mere political reasons (EEC wanted to stabilize the civilian government) 14
KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
European Economic Community 1969-1986 ! When dictatorships in Spain and Portugal came to an end in mid
70ies, EEC started negotiations despite relative poverty in both countries. The aim was ensure a democratic development in both countries. Finally, Spain and Portugal became members in 1986 – and strongly benefitted from ERDF. ! Thus in 1986 EEC consisted of 12 members ! Belgium, France, Luxembourg, Italy, The Netherlands and Germany ! UK, Denmark and Irleand ! Greece, Portugal and Spain
! The first phase of enlargement ended with signing the 1986 Single
European Act in Luxembourg ! Note, the EEC adopted the flag with the 12 stars in 1985, but the
number of stars does not refer to the number of members. 15
KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
European Economic Community 1969-1986 ! The 1986 Single European Act in Luxembourg ! Prior aim was to relaunch the idea of a single market and to push political
integration, (the act created the single biggest market and trading unit in the world). ! Financial institutions got full access to all markets. ! Monopolies on electricity supply and telecommunication were broken
down. ! Internal passport and customs control were eased or lifted. ! The European commission became responsible for common policies in
the field of energy, telecommunication, the environment and R&D (in addition to transport, agriculture and regional policy). ! Finally the Act made economic and monetary union an ECC objective.
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
Schengen Agreement ! 1985: Schengen (Town in Luxembourg, with a couple of 1000
inhabitants) agreement: Gradual abolition of checks at internal borders ! Schengen convention: ! Abolition of internal borders and creation of a single external frontier. ! Common Visa Policy (important for immigrants, once you get a visa in
one Schengen-Country you are allowed to travel in all SchengenCountries). ! Note: neither Schengen agreement nor Schengen convention is EU law
(but intergovernmental agreement). However, the EU court of justice is the highest court ! Founding members: Luxembourg, Belgium, The Netherlands, France and
Germany
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
Schengen Agreement (2013)
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
European Economic Community 1987-1992 ! In the aftermath of the Single European Act, the members felt that
they need to go one step further in order to !
Foster integration.
!
Establish an economic and political union.
!
Ease political decision making.
!
Give common European Institutions more power.
! Preparation of Maastricht Treaty
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
The treaty of Maastricht, 1992 ! In contrast to former treaties, a distinctive vocation of political union
was claimed. ! Official denomination EEC was replaced by EU. ! Three Pillar Structure of the EU. Community Pillar
Common Foreign and Security Policy
Increasing power of EU institutions and setting up new arrangements
Police and judicial cooperation in international criminal matters
Intergovernmental Pillars 20
KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
The treaty of Maastricht, 1992 ! Community pillar !
Establishment of EU Citizenship
!
Establishment of Economic and Monetary Union
!
Cohesion fund as complementary fund to ERDF
!
Full liberalisation of energy-, telecommunication and transport markets
!
Establishment of Trans European Networks (TEN)
! ERDF !
Direct investments in SMEs
!
Infrastructure
!
Financial instruments
! Cohesion Fund
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!
TEN
!
Environment
KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
European Union 1993-2003 ! Austria, Finland, Sweden and Norway applied for membership in 1994
and all but Norway (a referendum went against membership) joined the Club in 1995 (EU15). ! On 16th of June in 1997 the European Council decides at Amsterdam
to adopt the Stability and Growth Pact which prepares the floor for the Monetary Union !
!
Criteria to join the monetary union !
Inflation rates no more than 1.5 percentage points higher than the average of the three best performing member states of the EU.
!
The ratio of the annual government deficit to GDP must not exceed 3% at the end of the fiscal year
!
The ratio of gross government debt to GDP must not exceed 60% at the end of the preceding fiscal year.
Exit strategies?
! In 1999 the Eurozone started with 11 countries. Today 17 countries
are member states. 22
KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
European Union 1993-2003 Eurozone 2012 Dark blue: Members of Monetary Union Light blue: Passive users of Euro (Kosovo, Montenegro)
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
European Union 1993-2003 ! Switzerland considered applying for membership, but a referendum in
2001 went heavily against membership (77%/23%) ! After the fall of the iron curtain the EU had to decide, how to deal with
the new situation. Borne by the Franco-German axis (Mitterand and Kohl) EU decided to open the club for Central and Eastern European Countries. ! In order to prepare for the biggest enlargement ever, the EU adopted
the Treaty of Nice (2001).
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
The treaty of Nice and Eastern Enlargement ! The treaty of Nice was signed in Feb. 2001 to make institutional
changes needed to prepare for the eastward enlargement. ! 10 new members joined the EU in May 2004: CY, CZ, EE, HU, LT, LV,
MT, PL, SK and SI ! Together their economies were smaller than the Dutch economy and
EU population increased by less than 20% ! However, EU was no longer a club for the rich economies of Western
Europe ! BG and RO joined the club in 2007
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
EU 27 Population: 504 Million (USA: 312 Million) Area: 4.3 Million km2 (USA: 9.6 Million km2)
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KIT- die Kooperation von Forschungszentrum Karlsruhe GmbH und Universität Karlsruhe (TH)
Institut für Entwicklung zukunftsfähiger Organisationen / Professur für Nachhaltigkeit und Wandel
EU 27 GDP per capita 2012 (prices of 2005) 5+T:3H2+/-" R2/K.;" DK06E:/,.4@" S:43./9" L/:,.4@" DK:@:4" MDQ" R:6
