• 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

    Has the creation of the Single European Market been a success?

    4 star(s)

    opening up public procurement reinforcing the powers of the competition authorities and in reducing State aid. As a result, price reductions started the liberalisation of the telecommunications and electricity market. Only the market in rail transport and postal services remained less advanced.8 In terms of achievements, taking into account that

  2. Marked by a teacher

    The European Union and UK Businesses

    3 star(s)

    In this way, the member States specifically affirmed the political objective of a progressive political integration. The brand new institution was a customs union. As a consequence, the EEC was colloquially known as "Common Market". The member countries agreed to dismantle all tariff barriers over a 12-year transitional period.

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

    It forms a part of the legislative arm of the EU. Its membership is not permanent. Even the role of the president rotates among candidates from the member states every six months.

  2. The Institution of the European Union and Theories.

    The enlargement of the European Union has created opportunities and treats for UK businesses. These treaties have created opportunities and treats for UK businesses, the Treaty of Rome allows movement between countries without any barriers. This means people are allowed to move from one country to another no matter if its for work or for a holiday.

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

    The first reason was that while EFTA may have been living up to it's limited expectations , it had done little to counter the growing importance of EEC . This was true not just of the d developments that had occurred within the EEC and the prospects of further progress

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

    This too has led to difficulty. As Regulations are automatically binding, they should, in theory, become part of domestic law without the need for UK legislation, in practice however, some give rise to significant secondary legislation or require repeal or amendment of existing Acts.

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

    Macmillan also had to begin to withdraw from the Commonwealth countries, granting them independence; he did this because the Commonwealth countries were beginning to drain money from Britain, they couldn't create enough trade. Trade with Western Europe increased between 1953-1960, exports to the Common Market rose by 29%, while only at 1% to Sterling countries.

  2. The Foreign Policy of Great Britain in relationship to the European Union.

    The UK sells more to the EU than the US. More than 30% of inward investment into the EU comes to Britain, creating 800,000 jobs. Almost two-thirds of Scottish exports go to other countries in the EU. The UK exports more than four times as much to the EU as to the US.

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