• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What were the key provisions of the Treaty on European Union (Maastricht)? Discuss how this Treaty affects European Business.

Extracts from this document...

Introduction

What were the key provisions of the Treaty on European Union (Maastricht)? Discuss how this Treaty affects European Business The objective of this essay is to address the key provisions of the Treaty of Maastricht and how it affected European business. Therefore since the creation of the European Union, has not only involved the establishment of a new type of legal order operating in the international or transnational area but also promoting a process of integration leading towards a 'union' of European states of people as well as economical development. Consequently I shall firstly begin by mentioning the historical developments of the European Union, which lead to the creation of the four main institutions of the EU and a number of treaties being passed to govern the member states that joined the EU. Secondly I will move onto mentioning the key provisions of the Treaty of Maastricht followed by stating how the treaty affects European business. Finally to conclude this essay with a brief summary of whether the treaty has made any differences in the lives of working Europeans and the business they are involved in. The building of a United Europe is undoubtedly one of the greatest historical undertakings of the 20th century.1 The original impetus for the founding of the European Union was the desire to repair Europe after the unfortunate events of World War II and to prevent Europe from ever again falling victim to the scourge of the war. ...read more.

Middle

Critics of the UK position argue that the refusal to adopt minimum working conditions (and also a minimum wage) will make the UK the 'sweat-shop' of Europe. 11 The expectation of the treaty of Maastricht was that the functioning of the common market, in conjunction with the Treaty's rules preventing unfair competition, would automatically result in social development. When the EU was set up there was rapid economic growth therefore the underlying objectives of European social policy were to avoid any distortion of competition and to promote free movement of labour within the community. Because it was feared that unfair competition might emerge if some countries imposed higher social charges on employment, leading to social dumping as companies relocated to areas with lower labour costs. Therefore the creation of a common market formed areas without barriers in which the free movement of goods, services and capital in accordance with the provisions of the treaty.12 Now moving onto discussing how the Maastricht treaty affects European Business. The introduction of the Maastricht has affected European business in many ways. The 1985 agenda for the single market intended at removing all non-tariff barriers to the free movement of goods, persons, services and capital. It became clear, that the benefits of the internal market would be difficult to achieve with the uncertainties created by exchange rate fluctuations and the high transaction costs for converting one currency into the other. Therefore the single currency was seen as the vital piece in the single market development. ...read more.

Conclusion

However the union is now moving towards greater political and economic unity through the adoption of a single currency and the co-ordination of members states in relation to areas of state policy, such as defence and security, and justice and home affairs. Consequently to achieve such a Union there must be further sacrifice of national sovereignty. Consequently if Britain had joined the single market and adopt the single currency, the major decisions in economic policy would be taken centrally rather than by individual national governments.14 1 http://europa.eu.int/abc/obj/chrono/40years/en.htm 2 Page 4, Vincenzi, 1999 3 Page 15, Jo Shaw 2000 4 The six member states included France, Germany, the Netherlands, Italy, Luxembourg and Belgium 5 Page 4, Kent, 2001 6 Since 1993 when the Treaty of European Union came into force, the EEC has been redesignated as the 'European Community' (EC) 7 The central aim of EEC Treaty set in article 2 EC, was to establish a customs union among the six founding members, based on the 'four freedoms'; freedom of movement of goods, services, capital and people. 8 PJC also known as Co-operation on justice and home affairs (JHA) 9 Page 7, Jo Shaw, 2001 10 See Appendix One, for a diagram of the EU's pillar structure after the treaties of Maastricht and Amsterdam. 11 Page 6, Cavendish Cards 12 Page 279, Dick Leonard, 1997 13 The 11 countries of the euro zone are: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain 14 http://www.no-euro.com/release.cfm?IDNO=15 Nafeeza Javed - 1 - ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level European Union section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level European Union essays

  1. Marked by a teacher

    The European Union and UK Businesses

    3 star(s)

    The Treaties were ratified by National Parliaments over the following months and came into force on 1st January 1958. The Treaty establishing the EEC affirmed in its preamble that signatory States were "determined to lay the foundations of an ever closer union among the peoples of Europe".

  2. Why did Britain join the EEC in 1973 and not in 1957?

    He tried to persuade the Five, without France, trying to convince them Britain was needed for Europe to become a great force. But the Five didn't want to loose France by letting Britain join, France went on to veto the application with the reason of Britain's entry was only to

  1. This report encompasses six aspects of organizational behavior, that is team building, communication, culture, ...

    Japan, Greece, Portugal, and Korea are examples of societies that seek to avoid uncertainty, leading to relatively well-articulated laws and expectations for scrupulous conformance to social standards. Many South American countries fall along less certain points of the continuum, and France scored relatively higher in uncertainty avoidance than its European

  2. Describe the main institutions of the European Union and evaluate their roles. ...

    It drafts the annual budget. It negotiates international trade agreements with countries outside the EU. It also decides on matters concerning the accession of new members to the EU. The Council of EU is the most powerful organisation of EU.

  1. Supremacy of the European Union has, to all intents and purposes, crippled the domestic ...

    Any consequential legislation must follow what the EU intended. Failure to legislate or transpose correctly can give rise to a case against the State. (Marshall v Southampton Health Authority [1986]) The case having vertical effect under the directive as M.

  2. The aim of this essay is to present the reason of British government changing ...

    in the near future, but also as a relationship between the EEC and individual EFTA states. Members of EFTA such as - Austria and Switzerland a swell as Britain it self- were still trading more with the EEC then with their EFTA associates.

  1. "What is the importance of the concept of citizenship in the development of EC ...

    It includes the following titles: * Free movement of goods and workers * The free movement of capital and payments * Freedom of establishment and the freedom to provide services * Competition policy, * Economic and monetary policy, * Agricultural policy, * Transport policy, environmental policy, * Research and technology

  2. The Institutional Consequences of Domestic Politics on Africa's International Relations and Regional Cooperation.

    These institutions write Laporte are indispensable for implementing the large and increasing number of conclusions and recommendations formulated at regional levels. It against this background that one should examine the proposed African Union. In doing this, one would first of all be confronted with few basic questions.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work