The European Union

THE EUROPEAN UNION

 The European Union

Celebrating the European Union:

A Half Century of Change and Progress

• Since the creation of the EU half a century ago,

Europe has enjoyed the longest period of
peace in its history.

• European political integration is unprecedented

in history.

• EU enlargement has helped overcome the

division of Europe – contributing to peace,
European Union prosperity, and stability across the continent.
United in diversity
• A single market and a common currency
conditions for companies and consumers.

• EU has united the citizens of Europe – while

preserving Europe’s diversity.
 The European Union

What is the European Union?

• Shared values: liberty, democracy, respect
27 Member States
for human rights and fundamental freedoms,
and the rule of law.
Combined • Largest economic body in the world.
population of
EU Member
490 • World’s most successful model for advancing
States million peace and democracy.
• A unique institution – Member States
Percent of world’s voluntarily cede national sovereignty in many
7 population
areas to carry out common policies and
governance.
Percent of
global GDP 30 • Not a super-state to replace existing states,
nor just an organization for international
cooperation.
Percent of combined
55 worldwide Official
Development Assistance
• World’s most open market for goods and
commodities from developing countries.
 The European Union

EU Institutions
European Commission
• 27 Commissioners, representing the European
perspective, each responsible for a specific policy area.
• EU’s executive branch proposes legislation, manages
Union’s day-to-day business and budget, and enforces
rules.
• Negotiates trade agreements and manages Europe’s
multilateral development cooperation.
Council of the European Union
• EU’s main decision-making body, comprised of
European Commission President ministers of 27 Member States, representing Member
José Manuel Barroso State’s point of view.
• Decides on foreign policy issues.
• Council presidency rotates among Member States
every six months.
 The European Union

EU Institutions
European Parliament
• Voice of European citizens – members elected for
five-year terms.
• With the Council, passes EU laws and adopts EU
budgets.
• Approves EU Commissioners.
European Parliament in session

European Court of Justice

• Highest EU judicial authority.
• Ensures all EU laws are interpreted and applied
correctly and uniformly.
• Can act as an independent policy maker but unlike
the U.S. Supreme Court, the ECJ can only deal
with matters covered by the Treaties.
 The European Union

European Central Bank

• The European Central Bank (ECB) is the
central bank for Europe's single currency,
the euro.
• The ECB’s main task is to maintain the euro's
purchasing power and thus price stability in
the euro area.
• The euro area comprises the 15 European
The euro was introduced in 1999 Union countries that have introduced the
euro since 1999.
• The ECB operates independently from
Member State governments.
 The European Union

United in Diversity - The €uro

 The European Union

The €uro
€ In 1999, the euro area was established as a
currency in eleven of the then fifteen EU
Member States.

€ Of the 27 EU Member States today, fifteen

have adopted the euro.

€ One of the striking benefits of a single

European currency are low interest rates due
to a high degree of price stability.

€ The euro is as stable and credible as the best-

performing currencies previously used in the
euro area countries.
 The European Union

1951:
European Coal and

Steel Community
• In the aftermath of World War II, the aim was to
secure peace among Europe’s victorious and
vanquished nations and bring them together as
equals, cooperating within shared institutions.

• Based on a plan by French Foreign Minister

Jean Monnet and other leaders with Robert Schuman.
the first “European” ingot of steel
• Six founding countries – Belgium, the Federal
Republic of Germany, France, Italy, Luxembourg
and the Netherlands – signed a treaty to run heavy
industries (coal and steel) under common
management.
 The European Union

1957:

Treaty of Rome

• The six founding countries

expanded cooperation to other
economic sectors, creating the
Signing of the Treaty of Rome European Economic Community
(EEC) – or “common market.”

• As a result, people, goods,

services, and capital today
move freely across the Union.
 The European Union

1951

Founding
Members

Belgium
France
Germany
Italy
Luxembourg
Netherlands
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1973

Denmark
Ireland
United Kingdom
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1981

Greece
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1986

Portugal
Spain
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November
1989

Fall of the
Berlin Wall
sets the
stage for
unifying
Europe and
EU
enlargement
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1995

Austria
Finland
Sweden
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2004

Cyprus
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Slovakia
Slovenia
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2007

Bulgaria
Romania
 The European Union

Candidate Countries

Croatia
Former Yugoslav
Republic of Macedonia
Turkey

Potential
Candidate Countries

Albania
Bosnia & Herzegovina
Montenegro
Serbia including Kosovo
under UN Security Council
Resolution 1244
 The European Union

50 Years of EU Integration
Enlargement has:

“Enlargement has been a • Inspired reforms and consolidated common

success story for the principles of liberty, democracy, respect for human
European Union and
rights, fundamental freedoms, the rule of law, and
Europe as a whole. It has
helped to overcome the market economy.
division of Europe and
contributed to peace and • Enhanced the EU’s weight in the world and made it
stability throughout the a stronger and more attractive international
continent.” partner.
European Council
Declaration
Dec. 15, 2006 1957 2007
Member States 6 27
Population 174 million 493 million
Languages 4 23
 The European Union

Exchange Rates
• 1999 : € 1 = $ 1.17

• October, 2000: € 1 = $ 0.83

• March, 2005 : € 1 = $ 1.33

• February, 2006: € 1 = $ 1.30

• November, 2009: € 1 = $ 1.50

 The European Union

The EU in the World

The EU is a global player.

Its soft power promotes
stability, prosperity,
democracy and human
rights, delivers concrete
results in the fight to
eradicate poverty, and in
achieving sustainable
UN Secretary General Ban Ki-moon, High Representative development.
for the Common Foreign and Security Policy Javier Solana,
and EU Commissioner Benita Ferrero-Waldner
 The European Union

Addressing Global Challenges

• Peace & Security

– Works for global peace and security alongside the
United States and multilateral organizations –
including NATO and the United Nations.
– Undertakes humanitarian and peacekeeping
missions and has provided military forces for crisis
management around the globe.

• Counterterrorism & Homeland Security

– Taken steps to improve intelligence sharing,
enhance law enforcement and judicial cooperation,
curtail terrorist financing.
– Boosts trade and transport security to support the
struggle against terrorism.
 The European Union

Addressing Global Challenges

• Democracy & Human Rights
– Works globally for free elections and open
democratic processes.
– Fights racism and intolerance at home and
abroad.
– Campaigns globally against capital punishment.

• Development Assistance & Humanitarian

Relief
– The EU and its Member States are the world’s
largest aid donor, providing 55% of total official
development assistance.
– Provides billions of dollars in humanitarian aid
to more than 100 countries in response to
crises and natural disasters.
 The European Union

Addressing Global Challenges

• Trade
– European Commission represents all 27 EU
Member States before the World Trade
Organization.
– Supports free trade and open markets, within
the rules-based structure of the WTO, to
promote growth and jobs in both industrialized
and developing countries.
– The world's most open market for products and
commodities from developing countries – 40%
of all EU imports are from developing countries.
 The European Union

Addressing Global Challenges

• Environmental Protection
– A leader in global efforts to protect the
environment, maintaining rigorous and
comprehensive systems at home.
– Plays a key role in developing and
implementing international agreements,
such as the Kyoto Protocol on Climate
Change.
– Executing a “cap and trade” system to
reduce greenhouse gas emissions
– Takes the lead in the fight against global
warming with the adoption of binding
energy targets (cutting 20% of the EU’s
greenhouse gas emissions by 2020).
Source: German Information Center USA
 The European Union

The European Union and the United States

“The relationship between the

United States and Europe is the
“Our strong friendship is
world’s strongest, most
essential to peace and
comprehensive, and
prosperity around the globe.
strategically important
No temporary debate, to
partnership. The United States,
passing disagreement
and a united Europe – this is
among nations, no power
really the indispensable
on earth, will ever divide us.”
partnership.”
President George W. Bush
President of the
European Commission
José Manuel Barroso
 The European Union

Partners in Global Leadership

• EU and U.S. work together to develop
international standards:

– Fighting terrorism and transnational crime

– Advancing global trade liberalization

– Combating piracy and intellectual property

violations
EU Commissioner Benita Ferrero- – Spreading benefits of globalization
Waldner & U.S. Secretary of State
Condoleezza Rice • EU and its Member States are helping restore
peace and stability in Afghanistan.

• EU and U.S. work together in the Middle East

Quartet to advance the peace process.

• When the EU and U.S. agree, others tend to

follow.
 The European Union

Shared Values and Responsibilities

• Freedom & Democracy
Support free elections, good governance, human rights,
and the rule of law around the world.

• Security
Cooperate to fight terrorism, limit the spread of nuclear
weapons, and work for global peace.

• Development
Together, EU and U.S. provide 80% of global
development assistance and an even larger share of
global humanitarian aid in times of disaster and
conflict.
 The European Union

A Dynamic
Transatlantic Economy
• EU and U.S. together account for 40% of total
global trade (more than $1.5 billion in
transatlantic trade every day).

• The $3 trillion EU-U.S. transatlantic economy

employs 14 million workers on both sides of the
Atlantic.

• In 2005, Europe accounted for roughly two-

thirds of total global investment flows into the
U.S. – by far the most significant source of
foreign investment in the U.S. economy.
 The European Union

• European companies are the leading

foreign investors in the U.S.
– The UK, Germany, France, and the
Netherlands – top four sources of
jobs created by foreign investment
in the United States.
BMW’s assembly plant is South Carolina’s
largest private sector employer.
• American companies invest far more in
EU countries than in Asia.
– U.S. businesses make 5 times the
profit in the Netherlands - alone -
as they make in China.
– In 2005, EU investments in Texas
alone surpassed all U.S.
investments in China and Japan,
combined.
 The European Union

Future of Transatlantic Relations

• EU and U.S. face common challenges that are global in
origin and impact. With global challenges, come global
responsibilities.

• EU and U.S., with our shared values and common

interests, are natural partners to give a lead in four
key areas:
– Promote peace, human rights and democracy
worldwide.
– Confront global challenges, including security and
non-proliferation.
– Foster prosperity and opportunity.
– Advance strategic cooperation on energy security,
climate change and sustainable development.
 The European Union

“Since no single nation can efficiently

and effectively deal with global
challenges such as climate change,
counterterrorism, non-proliferation,
pandemics and natural disasters on its
own, we commit ourselves to
strengthening our cooperation to
address these challenges.”

EU-U.S. Summit Declaration

Vienna, July 2006
 The European Union

Education & Research

• EU and U.S. cooperate on science and

technology education through:
– Exchange programs
– More than 700 institutional
partnerships
– Vocational training
EU supports R&D to – Scholarship programs
increase Europe’s
growth and global – R&D cooperatives
competitiveness. • EU and U.S. provide joint or dual
higher educational degree programs.
• EU funds Centers of Excellence at
leading U.S. universities.
The European Union