Elected by direct universal suffrage since 1979, the European Parliament now comprises 626 members. (Reference
Parliament normally sits in Strasbourg, where, plenary meetings are held for one week each month. Some part-sessions and committee meetings are held in Brussels to facilitate contacts with the Commission and the Council. Its Secretariat is based in Luxembourg. The 1986 Single European Act increased Parliament’s powers with regard to legislation by introducing a cooperation procedure, which called for two readings of legislative proposals by Parliament and the Council with the active participation of the Commission. It introduced a new co-decision procedure in a number of important areas, which gives Parliament the power to adopt regulations and directives on an equal footing together with the Council. This procedure applies to the single market, social policy, economic and social cohesion, research and the new areas covered by the Union Treaty considering: condiment protection, education, culture and health. Parliament would like to see the co-decision procedure extended to include in particular agricultural prices and the definition of the Union’s own budgetary resources. Finally, for certain decisions of major importance (international agreements, accession of new members, uniform procedure for elections to Parliament, right of residence of Union citizens, etc.), the Council must obtain Parliament’s assent.
The European Council and the Council of Ministers
Established in 1974, the European Council is made up of the Heads of State or Government and the President of the Commission assisted by the Foreign Ministers and a Member of the Commission. It meets twice a year, providing the impetus and setting the broad guidelines for future action. The Council consists of representatives of each Member State at ministerial level, authorised to commit the government of that Member State. Meetings are attended by different ministers according to the agenda. Each Member State acts as President of the Council in rotation. With regard to Community activities, recent developments (Single Act, Union Treaty) have provided for wider use of qualified-majority voting, but some matters such as taxation continue to require unanimity. A qualified majority is constituted by 62 votes out of 87 if the decision is taken on a Commission proposal, and the 62 votes must be cast by at least 10 Member States in a few specific cases. Where the vote is taken by qualified majority, Germany, France, Italy and United Kingdom have 10 votes each, Spain has 8 votes, Belgium, Greece, the Netherlands and Portugal have 5 each, Austria and Sweden have 4 votes each, Denmark, Ireland Finland 3 each and Luxembourg 2. Unanimity is still required, however, where the Council wishes to deviate from the Commission's ’s proposals or to reject amendments by Parliament that have been accepted by the Commission.
The Court of Justice and the Court of First Instance
The Court of justice comprises 15 judges assisted by nine advocates - general. A Court of First Instance also comprising 15 judges was set up in 1989. The members of these Courts, which sit in Luxembourg, are appointed for six years by agreement between the governments of the Member States. Their independence is guaranteed
The Court’s role is to ensure that the European Treaties are interpreted and applied in accordance with the law. The Court can find that a Member State has failed to fulfil an obligation under the Treaties. If the Member State does not comply with the judgment, the Court may impose a lump-sum or penalty payment on it. The Court reviews the legality of measures taken by the institutions in actions brought to have such measures set aside, and it has power to judge that they are in breach of the Treaties for failing to act. The Court also gives preliminary rulings, on application by a national court, on the interpretation or validity of points of Community law. If a legal action produces a disputed point of this kind, a national court may seek a ruling from the European Court; it must do so if there is no higher court of appeal in the Member State concerned, in which case the judgment of the Court is binding.
The Court of First Instance deals with actions brought by individuals and businesses, appeals on points of law are only dealt with by the Court of justice. The Court of justice has helped to create a body of Community law, which applies to all in the same manner, thereby furthering the process of European integration.
The European Investment Bank and the European Central Bank
The European Investment Bank, the financial institution of the European Union, was set up by the Treaty of Rome in 1958 to finance investments in support of the Union’s objectives. The EIB has legal personality and is financially independent. Its members are the Member States of the Union, and it has its headquarters in Luxembourg. In 1997, it granted loans totalling 26.2 billion, by confirming its position as a leading international financial institution. The priority objective of the EIB is to contribute to the balanced development of the Union. A non-profit-making lender, the EIB passes on to promoters the advantages of its position on the financial markets.
As of 1 June 1998, the European System of Central Banks and the European Central Bank responsible for issuing and administering a single currency were set up as part of the process of economic and monetary union under the Union Treaty.
Single Currency (EURO)
Having one market was great as you have free trade without any taxes or tariffs, free movement and all the other benefits. The idea of being united as a Europe brought many thoughts on the EU countries to have a single currency. This currency was than later named Euro who was firstly mentioned in 1969 at the European Summit in The Hague. 10 years later in 1979 the process was re-launched with the creation of the European Monetary System (EMS), which constituted an unprecedented transfer of monetary autonomy. The talks on Economic and Monetary Union were resumed after 1985, when EMU progressively started to be considered a necessary complement to the single market. In 1988 Jacques Delors who was the President of the European Commission was asked to study the creation of the EMU. He produced a report and its first stage of the EMU would start in June 1990, and the Maastricht European Council of December 1991 decided that Europe would have a common currency before the year 2000. It all these years to study the famous answer, “why join the euro?” The Maastricht Treaty introduced the European currency. In March 1998, the European Commission proposed the participation of 11 Member States, including Portugal, in the euro area as from 1 January 1999. Euro became the single currency and the European Central Bank took over the responsibility for the single monetary policy decisions. Euro was than physically introduced in coins and notes, on the 1st January 2002. Euro is continually being used in the 12 countries of the EU (Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, Netherlands, Austria, Portugal and Finland) and so far has proved to have been a great success to over 300 million people have been affected by this change.
Benefits of the EURO
There are many benefits of the Euro in the Euro Zone. When travelling in the euro zone you only have to change money once: one currency is all you need now. For instance, when you visit a museum in Italy, you can pay the entrance fee using euro coins left over from your stay in Greece; you can buy a meal in France with euro banknotes you got from a cash dispenser in Spain; etc. All this saves both time and money. Shopping in the euro zone is also easy where prices are displayed in the same currency; they are easier to compare and help you make the right choice. Also when doing business on the Euro Zone there is no longer any risk of fluctuation between currencies. Interest and inflation rates are much lower. You buy, sell and borrow within a larger and more competitive market. Managing your business is easier and less expensive.
Disadvantages of the EU and the Euro
We can say that EU is united although has at the moment 15 countries with different languages this is creating at the moment a lot of constraints as although workers can move and work freely but they don’t speak the same language as it would be in America for instance. This simply means that people will move to work where they are more comfortable and in popular countries. This will be unfair for other countries who are less popular but cannot attract much of the work force as of the language barrier. An example would be England, France, Germany, Spain and Italian who are the 5 most famous languages in Europe. The work force is more likely to move in these countries than to Portugal or Greece or any other EU country. All the EU nations have different economic cycles or are at different stages in their cycles. The UK is growing reasonably well whereas Germany is having problems. Interest rates are set in each country at the appropriate level needed for that country. One central bank cannot set inflation at the appropriate level for each member state. National sovereignty is the most crucial points mentioned in the disadvantages of the Euro which will simply mean that countries are not only losing their old currency, national pride etc, but also strong economically and stable countries would have to make decisions for other weaker countries. Also the cost of producing has proved to have been a very high one. The cost of contributing in the EU is high too. Many countries suffered job losses over adapting the euro; such people working in exchange rates. Although we have one Europe we also have one golden triangle and unfortunately this is the place where the big buck is played. And this is seen as the biggest competition for UK businesses. The countries in the golden triangle are England, France, Germany, Austria and Benelux countries who have the highest GDP and play the most important role in the EU economy. The level of wealth and living standards between regions grew, by 1996 the richest regions were five times richer than the poorest.
Britain has failed four of the five economic tests by passing the financial services test and failing the tests on sustainable convergence, economic flexibility, investment and employment. The test conclusion it is still not solved; Entering the Euro Zone too soon without the ensuring that the five tests are met could result in rise in unemployment, (as your economy is controlled by the EURO) a fall in public service investment and stalled growth. If Britain is delaying entering than is missing out on the benefits that the euro offers, including increased trade and investment.
EMU impacts on the UK and in the UK Business
Having accepted EURO is than the profitable thing for much business. Businesses that are using the Euro can trade with other EU business without having to exchange their currency. Euro is not a very good thing for UK’s export as the sterling at the moment is higher than the euro. This has a huge impact in the UK government as there is a great competition in the EU and the strength of the sterling is not helping things for EU businesses. For Import it is great thing sterling has a better value than the Euro, we can bye more and cheaper also we can compare the prices from one country to another as they have one currency. The Euro has a number of effects on strategic and operational businesses functions i.e. products pricing, marketing, distribution, investment plans, purchasing issues, legal issues etc. It is possible that in time the Euro zone could become the most powerful economic zone in the world and with no doubt is increasing dramatically. The countries involved will then have far more influence when negotiating, for example, world trade agreements, than they ever could individually. If Britain does not join she will be without a significant voice as the giant economies of America, Asia and the Euro Zone make deals to suit there own interests. As the euro zone expands to the east to include former eastern bloc countries, Britain's influence on the policies being pursued by the European Central Bank would become even more diluted. It is then quite conceivable that decisions could be taken to suit a majority of countries but which were damaging to the UK's interests. Also Britain is trying to improve its infrastructure and also its NHS, Euro in the other hand is seen as a great distract.
Family Expansion – EU enlargement
The EU can already look back on a history of successful enlargements. The Treaties of Paris (1951), establishing the European Coal and Steel Community (ECSC), and Rome (1957), establishing the European Economic Community (EEC) and EURATOM, were signed by six founding members: Belgium, France, Germany, Italy, Luxembourg and the Netherlands. The EU then underwent four successive enlargements In 1973 Denmark, Ireland and the United Kingdom joined in followed by Greece in 1981, followed than by Portugal and Spain in 1986 and finally by Austria, Finland and Sweden in 1995. In 1995 there were 15 members that have joined the EU. The European Union has now welcomed a further ten countries in eastern and southern Europe: all of them have signed the Accession Treaty in Athens on 16 April 2003. The countries are Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia. These countries should join the EU sometime in 2004. Bulgaria and Romania expect to follow a few years later around 2007 and Turkey is also a candidate country who will discuss further negotiations after December 2004 about the political conditions that are not met yet. To ensure that the EU can continue functioning efficiently with 25 or more members, its decision-making system must be streamlined. That is why the Treaty of Nice lays down new rules governing the size of the EU institutions and the way they work. It came into force on 1 May 2004. This enlargement will be one of the most important developments for the European Union in the 21st century. It is an historic task to further the integration of the continent by peaceful means, extending a zone of stability and prosperity to new members. Europe has not given a limit to the number of the countries that could join in. This is left open and the countries that wish to join in must fulfil some criteria’s that was set down at the Copenhagen European Council in 1993. The criteria are often referred to as the Copenhagen Criteria which requires that the candidate country has achieved:
(Ref: please refer to this web site: http://www.euoffice.metu.edu.tr/abouteu/copenhagen.htm)
- Stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;
- The existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union;
- The ability to take on the obligations of membership including devotion to the aims of political, economic and monetary union.
Also the new countries that wish to join need to create:
- The conditions for its integration through the adjustment of its administrative structures, so that European Community legislation transposed into national legislation is implemented effectively through appropriate administrative and judicial structures.
UK is somehow affected by the countries that are joining. A lot more competition will be created, a lot more import and export will take place. New products will be discovered new methods will be used. UK will also be affected by a number of jobs cuts, as a lot more competitions will than take place. Newer members which their economy is not strong compare to Britain’s economy, may want to come and work in UK. This will create a lot of competition putting in a great risk UK jobs, as the best one’s will be recruited from the UK businesses. Because of the social charter, Maastricht treaty UK cannot reject this new workers arriving from new members to work in UK as this would be against the EU law and because UK is a member of the EU had to abbey to all laws and regulations set by EU.
EU, World Trade Organisation & G8
EU is dealing with many parts of the world, actually with the whole world. Europe is seen as a great super power and this is because a lot of powerful countries have joined together as one. Europe is also the richest continent in the world. World Trade Union (WTO) is seeing Europe’s cooperation as a great opportunity, in the other hand as a big threat that maybe Europe will only trade with its self and not the rest of the world. But as mentioned above this is not the case in April 2003, 146 member countries had joined the WTO, with around 28 negotiating to sign up. G8 are the top political leaders of the world's major industrialised countries. It was first convened in 1975 in Rambouillet, France and attended by Germany, France, Italy, the United Kingdom, Japan, United States, Canada and Russia in 1997 although Russia had and still has financial problems. The G8's has been around for 29-years, and is shifting from predominantly macroeconomic and trade issues to include a host of security and societal issues such as employment, the environment, crime and drugs, human rights and arms control. G8 is also concerned about the Europe’s future and this is because a lot of the G8 are also members of the EU. The establishment of the Single Market, the completion of Economic and Monetary Union and the development of EU Common and Foreign Security Policy greatly increased the importance of the European Union in the G8. Countries such as Japan will significantly benefit from an enlarged Union. A single set of trade rules, a single tariff, and a single set of administrative procedures will apply not only just across the existing Member States, but across the Single Market of the enlarged Union. This will simplify dealings for third-country operators within Europe and improve conditions for investment and trade.
The Role and Responsibilities of the EU (Social Charter and Environment)
Roles and the responsibilities of the EU are very much associated with the Social Charter which is a part of the Maastricht treaty. This looked at the fundamental Social Rights of Workers where everyone in the EU supported this idea except Britain. According to the charter all of these 12 points should be respected and seen as God’s 10 commandments. This is an excellent example to use:
- Rights of freedom of Movements – Mentioned in the treaty of Rome who emphasised the free movement, basically any body in the EU Zone can travel without any restrictions such as; visas or any other complications.
- Employment and remuneration – Gives rights to all EU citizens to work in the EU Zone without any restrictions, they must earn at least the minimum wage of that country that they are in as any thing below that minimum is against the charter therefore against the law.
- Improvement of living and working conditions – EU citizens can now have working contracts of fixed and unfixed duration, full or part time work, flexible hours and temporary work.
- Right to social protection – EU citizens can claim all the benefits of the hosted country that they are in.
- Right of freedom of association – Any EU employer or employee shall have the right to belong freely to any professional or trade union organisation based on hi/her choice.
- Right to vocational training – Every EU worker should have the privilege to continue vocational training during hi/her working life in the EU chosen country.
- Gender equal treatment – Beside being a charter point this is also an Act which is called the Equal Pay Act. It is there to make sure that man and woman receive an equal treatment pay wise calculated on the job that they perform, the hours etc.
- Right to information, consultation and participation of workers – Even when are not working in their countries EU workers have the rights to know and participate on any decisions taken by the management, or the business they work for, they have the rights to know about health and safety at work and any other relevant issues that that has to do with the workers its selves.
- Protection of children and adolescents – EU has strict rules and has taken the appropriate measures to make sure that no body is exploited especially children and adolescent. They should 16 years and older to work in any EU country. Any recruitment of children below that age in any EU countries is against the law.
- Health protection and safety at the workplace – This was established in the Single European Act 1986 which gave the EC new powers in the area of health and safety. This was made stronger ion the Social Charter, giving opportunities to EU citizens to use health protection and to have a safe environment at the work place.
- Rights of the elderly – Every elderly is entitled to his pension is case there is no pension then a minimum social protection and medical assistance is provided and this applies to all EU residents.
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Rights of the disabled - Any disabled person is treated fairly he/she is allowed to travel or live in any EU countries without any discrimination. They should be given access to work, access to training, and improved mobility for disabled persons, transport and housing. (Ref: parts of the information is taken from one of Robin’s assignment (EU and the UK 2000) and I have adopt its context to my EU assignment issued by my teacher Diane)
Environmental policy
Since now we have a greater movement of people also a greater economy and this is all through getting together as one becoming a strong power producing more and more everyday not only for each other but also for other places. Europe is a powerful tool and is expanding and increasing everyday if we don’t pay any attention to our environment by Protecting as that is essential for the quality of life of current and future generations. The challenge is to combine this with continuing economic growth in a way which is sustainable over the long term. European Union environment policy is based on the belief that high environmental standards stimulate innovation and business opportunities. It is therefore our future, Our Choice and the priorities of the foundation of European Union (EU) of the environmental action include:
- Tackling climate change and global warming;
- Protecting the natural habitat and wildlife;
- Addressing environment and health issues;
- Preserving natural resources and managing waste.
- The European Commission has in addition the job of making sure that:
Laws are not just passed, but also enforced;
- All relevant EU policies (e.g. agriculture, development, energy, fisheries, industry, the internal market, transport) take into account the impact they will have on the environment;
- Business and consumers are closely involved in identifying solutions to environmental problems;
- People have the information they need to make environmentally friendly choices;
- There is raised awareness of the importance of using land wisely in order to preserve natural habitats and landscapes, and minimise urban pollution.
To stop the pollution, dirt etc, a number of ideas have been used. A great propaganda is made so that even the products are environmentally friendly. For instance recycles such as glass, paper etc.
Environment policy is one of the EU's most successful areas of activity: thanks to EU environmental legislation, by now over 200 legal instruments, we have for example made great progress in cleaning up the air and our rivers. Environmental issues are also a good example perhaps the best of all of an area in which we must act together. Pollution knows no boundaries, and no country on its own can guarantee a clean environment. Many people are actively engaged in environmental issues and even the EU's bitterest opponents have to admit that common rules and institutions are crucial in the environment sector. Much remains to be done, however. The challenges are enormous, but the EU has the instruments to make a difference in the battle for sustainable development. (See ref: http://europa.eu.int/pol/env/overview_en.htm)
European Day
After the Second World War II, the whole Europe was very tense. The French Foreign Minister Robert Schuman on 9th May 1950 proposed the creation of European Coal and Steel Community (ECSC) . This was seen rather impossible due to the experiences that they have had with each other but in fact proved to be a very successful trade that involved six countries. Members like France and Germany signed peace agreement with each other and started dealing together. This was definitely a very positive thing and the 9th of May 1950 was therefore the day of peace. That day the prospect of Europe had changed and it was more like to build a Europe which respects freedom. Only by uniting its peoples can Europe control the mastery of its destiny and develop a positive role in the world. The European Union is at the service of its citizens. While keeping their own specific values, customs and language, European citizens should feel at ease in the 'European home'. Europe Day represents the very best of what it means to be European. (Reference this web site is taken as a guide )
The European Flag
On 8 December 1955, the blue flag with 12 stars became, in the course of an official ceremony in Brussels on 26 May 1986, the flag of the European Union. The flag, created from very strict guidelines, has the 12 stars arranged in a circle, set against a background of sky blue. The 12 stars will remain on the flag, no matter how many countries join the European Union. This unchanging number symbolises the entire perfection. (Reference this web site is taken as a guide )
The European Anthem
Almost every body knows about the EU flag and maybe about the EU day but hardly any body knows about the EU anthem.
The theme to the Ode to Joy, first heard as the prelude to the last movement of Ludwig van Beethoven's Ninth Symphony, was recognised by the European Council in Milan on 28-29 June 1985, as the anthem of the European Union.
In this context, it also is an ode to freedom, to a sense of community and to peace among the citizens of the 15 countries that have decided to unite and to the others who freely decide to join them. This anthem is played at European events. To make this second European symbol known, many orchestras play the Ode to Joy on Europe Day.
(Reference this web site is taken as a guide )
European Army
Many countries see Europe as a real threat and in fact it is a real threat. There is an EU day, EU currency, EU flag, EU anthem, EU language maybe (it started with Esperanto but it wasn’t very successful, the common language would most likely be English), and why not the European Army. EU army has not been very much mentioned and the whole reason is that it could create aggravation to many countries. Europe should not be seen as invader but as a saviour. Further more they got together firstly to form peace and than to trade and unite together with each other as one.
Fact and Figure on EU Export and Import
Ref: This table was taken from this web site: )
As we can see UK’s export in Jan - Oct of 2002 has been 251.1 billion euro and this when the euro was physically introduced to its members. One year later this figure has decreased to 224.2 billion which leaves -11% less export for Jan- Oct 2003.
Also the import has had a change too. When Euro was firstly introduced to its members on January 2002 it was week compare to the pound therefore UK bought a lot more. A year after euro gained its strength against the pound and UK has dropped his import with 7%. From 308.3 billion euros in Jan-Oct 2002 to 286.1 billion euro in Jan – Oct 2003.
Looking at table we can also see that United Kingdom is importing a lot more than exporting in Jan-Oct 2002. Exported 251.1 billion where as imported 308.3 billion which leaves a deficit of 57.2 billion or 18.6 % deficit.
(251.1 / 308.3 = 0.814 x100 =81.4 100 -81.4 =18.6)
Looking at the following year Jan – Oct 2003 UK has Exported 224.2 billion and has Imported a lot more 286.1 billion euro leaving a -62 billion or 21.6 % decrease.
(224.2 / 286.1 = 0.784 x100 =78.4 100 -78.4 =21.6)
Finally UK has not doing remarkable well as looking at the balance of export and import for 2002 and comparing it with the balance of export and import of 2003 UK
has still a decrease by 4.8 billion or 7.7 % (224.2 / 286.1 = 0.923 x100 =92.3 100 -92.3 =7.7)
Fact and Figure on new coming EU members on Export and Import
Ref: This table was taken from this web site: )
In this chart we see that the strongest countries like; Czech Republic, Hungary and Poland are exporting and importing a lot more than the other 7 remaining countries.
I believe that these countries are going to do quite well especially Hungary as in both years 2002 and 2003 has a positive trade balance comparing the import and the export.
New coming countries are a test for the existing 15 members of the EU. The better they do the more new countries EU would welcome. And as this graph explains that all 10 countries are doing fine especially those three countries that I have mentioned above. Cyprus, Malta especially need to increase their import and export as they are not given a lot of contribution to the EU, probably the are quite small as both of them are islands. But to keep with the rest of the group they must get them selves more involved.
Bibliography
To complete this assignment I have internet as a great resource but also books and information given by my teacher Diane
Books
European Business, Simon Mercado-Richard Welford-Kate Prescott, 4th ED (2001)
European Integration, Methods and Economic Analysis, Jacques Pelkmans, 2nd ED (2001)
European Studies, Tony Woods, Liz Bird, Maria Williams (1993)
Internet