Europe in 12 lessons - the European External Action Service - Europa

Europe in12 lessonsEurope in 12 lessonsby Pascal Fontaine,former assistant to Jean Monnet and Professorat the Institut d’Études Politiques, Paris

Contents1. Why the European Union? 42. Ten historic steps 83. Enlargement and neighbourhood policy 124. How does the EU work? 165. What does the EU do? 226. The single market 287.Economic and monetary union (EMU) 32and the euro8. Towards a knowledge-based society 36Europe in 12 lessons9. A citizens’ Europe 4010. Freedom, security and justice 4411. The European Union on the world stage 4812. What future for Europe? 54Key dates in the history of European 58integration

1. Why the European Union?

Europe’s mission in the 21st century is to:• provide peace, prosperity and stability for its peoples;• overcome the divisions in the continent;• ensure that its peoples can live in safety;• promote balanced economic and social development;• meet the challenges of globalisation and preserve the diversityof the peoples of Europe;Europe in 12 lessons• uphold the values that Europeans share, such as sustainabledevelopment and a sound environment, respect for human rightsand the social market economy.I. Peace and stabilityBefore becoming a real political objective,the idea of uniting Europe was just a dreamin the minds of philosophers and visionaries.Victor Hugo, for example, imagined apeaceful ‘United States of Europe’ inspiredby humanistic ideals. The dream was shatteredby the terrible wars that ravaged thecontinent during the first half of the 20thcentury.However, a new kind of hope emerged fromthe rubble of World War Two. People whohad resisted totalitarianism during the warwere determined to put an end to internationalhatred and rivalry in Europe andcreate the conditions for lasting peace. Between1945 and 1950, a handful of courageousstatesmen including Robert Schuman,Konrad Adenauer, Alcide de Gasperiand Winston Churchill set about persuadingtheir peoples to enter a new era. New structureswould be created in western Europe,based on shared interests and foundedupon treaties guaranteeing the rule of lawand equality between all countries.Robert Schuman (French foreign minister)took up an idea originally conceived by JeanMonnet and, on 9 May 1950, proposed establishinga European Coal and Steel Community(ECSC). In countries which had oncefought each other, the production of coaland steel would be pooled under a commonHigh Authority. In a practical but also richlysymbolic way, the raw materials of war werebeing turned into instruments of reconciliationand peace.II. Bringing Europetogether againThe European Union encouraged Germanunification after the fall of the Berlin Wallin 1989. When the Soviet empire crumbledin 1991, the former communist countries ofcentral and eastern Europe, after decadesunder the authoritarian yoke of the WarsawPact, decided that their future lay within thefamily of democratic European nations.The enlargement process continues to thisday. Entry negotiations began with Turkeyand Croatia in October 2005, while severalcountries in the Balkans have set out alongthe road that could one day lead to EUmembership.III. Safety and securityEurope in the 21st century still faces safetyand security issues. The EU has to take effectiveaction to ensure the safety and security

of its members. It has to work constructivelywith the regions just beyond its borders:the Balkans, North Africa, the Caucasusand the Middle East. It must also protectits military and strategic interests byworking with its allies, especially withinNATO, and by developing a genuine commonEuropean security and defence policy.Internal security and external securityare two sides of the same coin. The fightagainst terrorism and organised crime requiresthe police forces of all EU countriesto work together closely. Making the EU an‘area of freedom, security and justice’ whereeveryone has equal access to justice and isequally protected by the law is a new challengethat requires close cooperation betweengovernments. Bodies like Europol, theEuropean Police Office, and Eurojust, whichpromotes cooperation between prosecutors,judges and police officers in different EUcountries, also have a more active and effectiverole to play.IV. Economic and socialsolidarityThe European Union was created to achievethe political goal of peace, but its dynamismand success spring from its involvement ineconomics.EU countries account for an ever smallerpercentage of the world’s population. Theymust therefore continue pulling together ifthey are to ensure economic growth and beable to compete on the world stage withother major economies. No individual EUcountry is strong enough to go it alone inworld trade. The European single marketprovides companies with a vital platform forcompeting effectively on world markets.But Europe-wide free competition must becounterbalanced by Europe-wide solidarity.This has clear tangible benefits for Europeancitizens: when they fall victim to floodsand other natural disasters, they receive assistancefrom the EU budget. The StructuralFunds, managed by the European Commission,encourage and supplement the effortsof the EU’s national and regional authoritiesto reduce inequalities between differentparts of Europe. Money from the EU budgetand loans from the European InvestmentBank (EIB) are used to improve Europe’stransport infrastructure (for example, to extendthe network of motorways and highspeedrailways), thus providing better accessto outlying regions and boosting trans-Europeantrade. The EU’s economic successwill be measured in part by the ability of itssingle market of half a billion consumers tobenefit as many people and businesses aspossible.V. Identity and diversityin a globalised worldEurope’s post-industrial societies are becomingincreasingly complex. Standards of livinghave risen steadily, but there are still significantgaps between rich and poor. Enlargementhas widened the gap since countrieshave joined with living standards below theEU average. It is important for EU countriesto work together to narrow the gap.But these efforts have not been made at theexpense of compromising the separate culturalor linguistic characteristics of EU countries.On the contrary — many EU activitieshelp to create new economic growth basedon regional specialities and the rich diversityof traditions and cultures.Half a century of European integration hasshown that the EU as a whole is greaterthan the sum of its parts: it has much moreeconomic, social, technological, commercialand political clout than if its member stateshad to act individually. There is added valuein acting together and speaking with a singlevoice as the European Union.Why?• Because the EU is the world’s leadingtrading power and therefore plays a decisiverole in international negotiations, suchas those at the 149-country World TradeOrganisation (WTO), as well as in the implementationof the Kyoto protocol on air pollutionand climate change;

© Sylvain Grandadam/Van Parys MediaEurope in 12 lessonsUnited in diversity – a bilingual street sign in Malta.• Because it takes a clear position on sensitiveissues affecting ordinary people, suchas environmental protection, renewable energyresources, the ‘precautionary principle’in food safety, the ethical aspects of biotechnologyand the need to protect endangeredspecies;• Because it launched important initiativesfor sustainable development on thewhole planet, in connection with the ‘EarthSummit’ in 2002 in Johannesburg.The old saying ‘unity is strength’ is as relevantas ever to today’s Europeans. But theprocess of European integration has notsmothered the different ways of life, traditionsand cultures of its peoples. Indeed, theEU makes its diversity one of its key values.So the EU stands for a view of humanity anda model of society that the great majority ofits citizens support. Europeans cherish theirrich heritage of values, which includes a beliefin human rights, social solidarity, freeenterprise, a fair distribution of the fruits ofeconomic growth, the right to a protectedenvironment, respect for cultural, linguisticand religious diversity and a harmoniousblend of tradition and progress.The Charter of Fundamental Rights of theEuropean Union, which was proclaimed inNice in December 2000, sets out all therights recognised today by the EU’s memberstates and their citizens. These values cancreate a feeling of kinship between Europeans.To take just one example, all EU countrieshave abolished the death penalty.VI. ValuesThe EU wishes to promote humanitarianand progressive values, and ensure thatmankind is the beneficiary, rather thanthe victim, of the great global changes thatare taking place. People’s needs cannot bemet simply by market forces or imposed byunilateral action.

2. Ten historic steps2. Ten historic steps

1951: The European Coal and Steel Community is establishedby the six founding members1957: The Treaty of Rome establishes a common market1973: The Community expands to nine member statesand develops its common policies1979: The first direct elections to the European Parliament1981: The first Mediterranean enlargementEurope in 12 lessons1993: Completion of the single market1993: The Treaty of Maastricht establishes the European Union1995: The EU expands to 15 members2002: Euro notes and coins are introduced2004: Ten more countries join the Union1. On 9 May 1950, the Schuman Declarationproposed the establishment of a EuropeanCoal and Steel Community (ECSC),which became reality with the Treaty ofParis of 18 April 1951. This put in place acommon market in coal and steel betweenthe six founding countries (Belgium, theFederal Republic of Germany, France, Italy,Luxembourg and the Netherlands). The aim,in the aftermath of World War Two, was tosecure peace between Europe’s victoriousand vanquished nations and bring them togetheras equals, cooperating within sharedinstitutions.© ECOn 9 May 1950, French Foreign Minister Robert Schuman first publicly put forward the ideasthat led to the European Union. So 9 May is celebrated as the EU’s birthday.

2. The Six then decided, on 25 March1957 with the Treaty of Rome, to build aEuropean Economic Community (EEC)based on a wider common market coveringa whole range of goods and services. Customsduties between the six countries werecompletely abolished on 1 July 1968 andcommon policies, notably on trade and agriculture,were also put in place during the1960s.3. So successful was this venture thatDenmark, Ireland and the United Kingdomdecided to join the Community. This firstenlargement, from six to nine members,took place in 1973. At the same time, newsocial and environmental policies wereimplemented, and the European RegionalDevelopment Fund (ERDF) was establishedin 1975.4. June 1979 saw a decisive step forwardfor the European Community, with the firstelections to the European Parliament bydirect universal suffrage. These elections areheld every five years.5. In 1981, Greece joined the Community,followed by Spain and Portugal in 1986.This strengthened the Community’s presencein southern Europe and made it all themore urgent to expand its regional aid programmes.6. The worldwide economic recession inthe early 1980s brought with it a wave of‘euro-pessimism’. However, hope spranganew in 1985 when the European Commission,under its President Jacques Delors,published a White Paper setting out a timetablefor completing the European singlemarket by 1 January 1993. This ambitiousgoal was enshrined in the Single EuropeanAct, which was signed in February 1986 andcame into force on 1 July 1987.© ReutersThe Berlin Wall was pulled down in 1989 and the old divisions of the European continentgradually disappeared.10

7. The political shape of Europe was dramaticallychanged when the Berlin Wall fellin 1989. This led to the unification of Germanyin October 1990 and the coming ofdemocracy to the countries of central andeastern Europe as they broke away from Sovietcontrol. The Soviet Union itself ceasedto exist in December 1991.At the same time, the member states werenegotiating the new Treaty on EuropeanUnion, which was adopted by the EuropeanCouncil, composed of presidents and/orprime ministers, at Maastricht in December1991. The Treaty came into force on 1 November1993. By adding areas of intergovernmentalcooperation to existing integratedCommunity structures, the Treaty createdthe European Union (EU).At the same time, unemployment and therising cost of pensions are putting pressureon national economies, making reform allthe more necessary. Voters are increasinglycalling on their governments to find practicalsolutions to these problems.10. Scarcely had the European Uniongrown to 15 members when preparationsbegan for a new enlargement on an unprecedentedscale. In the mid-1990s, theformer Soviet-bloc countries (Bulgaria, theCzech Republic, Hungary, Poland, Romaniaand Slovakia), the three Baltic states thathad been part of the Soviet Union (Estonia,Latvia and Lithuania), one of the republicsof former Yugoslavia (Slovenia) and twoMediterranean countries (Cyprus and Malta)began knocking at the EU’s door.Europe in 12 lessons8. This new European dynamism and thecontinent’s changing geopolitical situationled three more countries — Austria, Finlandand Sweden — to join the EU on 1 January1995.9. By then, the EU was on course for itsmost spectacular achievement yet, creatinga single currency. The euro was introducedfor financial (non-cash) transactionsin 1999, while notes and coins were issuedthree years later in the 12 countries of theeuro area (also commonly referred to as theeuro zone). The euro is now a major worldcurrency for payments and reserves alongsidethe US dollar.Europeans are facing globalisation. Newtechnologies and ever increasing use of theInternet transform the economies, but alsobring social and cultural challenges.In March 2000, the EU adopted the ‘Lisbonstrategy’ for modernising the Europeaneconomy and enabling it to compete onthe world market with other major playerssuch as the United States and the newlyindustrialised countries. The Lisbon strategyinvolves encouraging innovation andbusiness investment and adapting Europe’seducation systems to meet the needs of theinformation society.The EU welcomed this chance to help stabilisethe European continent and to extendthe benefits of European integrationto these young democracies. Negotiationson future membership opened in December1997. The EU enlargement to 25 countriestook place on 1 May 2004 when 10 of the12 candidates joined. Bulgaria and Romaniafollowed on 1 January 2007.11

123. Enlargement andneighbourhood policy

• The European Union is open to any European country that fulfils thedemocratic, political and economic criteria for membership.• Following several enlargements, the EU has increased from six to27 members. Several other countries are candidates to join.• Each treaty admitting a new member requires the unanimous approvalof all member states. In addition, in advance of each new enlargement,the EU will assess its capacity to absorb the new member(s) and theability of its institutions to continue to function properly.Europe in 12 lessons• The successive enlargements have strengthened democracy, made Europemore secure and increased its potential for trade and economic growth.I. Uniting a continenta. A union of 25When it met in Copenhagen in December2002, the European Council took one ofthe most momentous steps in the history ofEuropean integration. By inviting 10 morecountries to join the EU on 1 May 2004, theEuropean Union was not simply increasingits geographical size and population; it wasputting an end to the split in our continentwhich, from 1945 onwards, had separatedthe free world from the communist bloc.This fifth enlargement of the EU had apolitical and moral dimension. It enabledcountries — Cyprus, the Czech Republic,Estonia, Hungary, Latvia, Lithuania, Malta,Poland, Slovakia and Slovenia — whichare as European as the others, not justgeographically but also in terms of culture,history and aspirations, to join thedemocratic European family. They are nowpartners in the momentous projectconceived by the EU’s founding fathers.b. Further enlargementBulgaria and Romania became candidatesin 1995. The process took longer for thesetwo countries than for the other 10, but theyjoined the EU on 1 January 2007, bringingthe number of EU countries to 27.c. Candidates for membershipTurkey, a member of NATO, with a longstandingassociation agreement with theEU, applied for membership in 1987. Itsgeographical location and political historymade the EU hesitate for a long time beforereplying positively to its application. However,in October 2005, the European Councilopened accession negotiations with Turkey.At the same time, it entered into negotiationswith Croatia, another candidate country.No date has yet been set for the entryinto force of any future accession treaty forthese two countries at the end of the membershipnegotiations.d. The western BalkansThese countries, most of which were oncepart of Yugoslavia, are turning to the EuropeanUnion to speed up their economicreconstruction, improve their mutual relations,which have been scarred by ethnicand religious wars, and consolidate theirdemocratic institutions. The EU gave statusas ‘candidate country’ to the former YugoslavRepublic of Macedonia (FYROM) in November2005. Other potential candidatesinclude Albania, Bosnia and Herzegovina,Montenegro and Serbia.13

.4. How does the EU work?4. How does the EU work?16

• The Council of Ministers of the European Union, which represents themember states, is the EU’s main decision-taking body. When it meetsat Heads of State or Government level, it becomes the EuropeanCouncil whose role is to provide the EU with political impetuson key issues.• The European Parliament, which represents the people, shareslegislative and budgetary power with the Council ofthe European Union.• The European Commission, which represents the common interest ofthe EU, is the main executive body. It has the right to proposelegislation and ensures that EU policies are properly implemented.Europe in 12 lessonsI. The decision-making triangleThe European Union is more than just a confederationof countries, but it is not a federalstate. It is, in fact, a new type of structurethat does not fall into any traditional legalcategory. Its political system is historicallyunique and has been constantly evolvingover more than 50 years.The Treaties (known as ‘primary’ legislation),are the basis for a large body of ‘secondary’legislation which has a direct impact on thedaily lives of EU citizens. The secondary legislationconsists mainly of regulations, directivesand recommendations adopted by theEU institutions.These laws, along with EU policies in general,are the result of decisions taken by theinstitutional triangle made up of the Council(representing national governments),the European Parliament (representing thepeople) and the European Commission (abody independent of EU governments thatupholds the collective European interest).© ECThe European Parliament: his vote is your voice.a. The Council of the EuropeanUnion and the European CouncilThe Council of the European Union (alsoknown as the Council of Ministers) is theEU’s main decision-making body. The EUmember states take it in turns to hold theCouncil Presidency for a six-month period.Every Council meeting is attended by oneminister from each EU country. Which ministersattend a meeting depends on whichtopic is on the agenda: foreign affairs, agriculture,industry, transport, the environment,etc.The Council has legislative power, which itshares with the European Parliament underthe ‘co-decision procedure’. In addition tothis, the Council and the Parliament shareequal responsibility for adopting the EUbudget. The Council also concludes internationalagreements that have been negotiatedby the Commission.17

Number of votes for each country in the CouncilGermany, France, Italy and the United Kingdom 29Spain and Poland 27Romania4NetherlandsBelgium, Czech Republic, Greece, Hungary and Portugal2Austria, Bulgaria and Sweden 10Denmark, Ireland, Lithuania, Slovakia and FinlandEstonia, Cyprus, Latvia, Luxembourg and Slovenia 4MaltaTotal: 345A minimum of 255 votes out of 345 (73.9%) is required to reach a qualified majority.In addition:• a majority of member states (in some cases two thirds) must approve the decision, and• any member state may ask for confirmation that the votes cast in favour representat least 62% of the EU’s total populationAccording to the Treaties, the Council hasto take its decisions either by a simple majorityvote, a ‘qualified majority’ vote orunanimously, depending on the subject tobe decided.The Council has to agree unanimously onimportant questions such as amending theTreaties, launching a new common policy orallowing a new country to join the Union.In most other cases, qualified majority votingis used. This means that a Council decisionis adopted if a specified minimum numberof votes are cast in its favour. The number ofvotes allocated to each EU country roughlyreflects the size of its population.Under the Treaty of Maastricht, the EuropeanCouncil officially became an initiator ofthe Union’s major policies and was empoweredto settle difficult issues on which ministersmeeting in the Council of the EuropeanUnion fail to agree.The European Council also deals with pressinginternational issues through the commonforeign and security policy (CFSP), which isintended to allow the EU to speak with onevoice on diplomatic questions.b. The European ParliamentThe European Parliament is the elected bodythat represents the EU’s citizens. It exercisespolitical supervision over the EU’s activitiesand takes part in the legislative process.Since 1979, members of the European Parliament(MEPs) have been directly elected,by universal suffrage, every five years.The European Council meets, in principle,four times a year. It is chaired bythe president or prime minister of the countryholding the presidency of the Councilof the European Union at the time. ThePresident of the European Commissionattends as a full member.18

Number of seats in the EuropeanParliament per country 2007–09Austria 18Belgium 24Bulgaria 18CyprusCzech Republic 24Denmark4EstoniaFinland4France8Germany 99Greece 24Hungary 24IrelandItaly8Latvia 9LithuaniaLuxembourgMaltaNetherlands 27Poland4Portugal 24RomaniaSlovakia4SloveniaSpain4Sweden9United Kingdom8Total 785The European Parliament normally holds itsplenary sessions in Strasbourg and any additionalsessions in Brussels. It has 20 committeeswhich do the preparatory work forplenary sessions, and a number of politicalgroups that usually meet in Brussels. TheGeneral Secretariat is based in Luxembourgand Brussels.The Parliament takes part in the legislativework of the EU at three levels:• Under the ‘cooperation’ procedure,introduced by the Single European Act in1987, the European Parliament can give itsopinion on draft directives and regulationsproposed by the European Commission,which is asked to amend its proposals to takeaccount of Parliament’s position.• Since 1987, there has also been the ‘assent’procedure, under which the EuropeanParliament must give its assent to internationalagreements negotiated by the Commissionand to any proposed enlargement ofthe European Union.• The 1992 Treaty of Maastricht introducedthe ‘co-decision’ procedure, whichputs the Parliament on an equal footing withthe Council when legislating on a whole seriesof important issues including the freemovement of workers, the internal market,education, research, the environment, trans-Europe in 12 lessonsThe political groups in the European ParliamentTotal : 785Situation in October 200619

European networks, health, culture, consumerprotection, etc. The European Parliamenthas the power to throw out proposed legislationin these fields if an absolute majorityof members of Parliament vote againstthe Council’s ‘common position’. The Treatyhas made provision for a conciliationprocedure.The European Parliament also shares, withthe Council, equal responsibility for adoptingthe EU budget. The Parliament canreject the proposed budget, and it has alreadydone so on several occasions. Whenthis happens, the entire budget procedurehas to be re-started. The European Commissionproposes the draft budget, which isthen debated by the Council and the EuropeanParliament. Parliament has made fulluse of its budgetary powers to influence EUpolicymaking.Last but not least, the European Parliamentexercises democratic supervision overthe Union. It has the power to dismiss theCommission by adopting a motion of censure.This requires a two-thirds majority. Italso supervises the day-to-day managementof EU policies by putting oral and writtenquestions to the Commission and the Council.Finally, the President of the EuropeanCouncil reports to the Parliament on the decisionstaken by the Council.c. The European CommissionThe Commission is the third part of the institutionaltriangle that manages and runs theEuropean Union. Its members are appointedfor a five-year term by agreement betweenthe member states, subject to approval bythe European Parliament. The Commissionis answerable to the Parliament, and the entireCommission has to resign if the Parliamentpasses a motion of censure against it.Since 2004, the Commission has been madeup of one Commissioner from each memberstate.The Commission enjoys a substantial degreeof independence in exercising its powers.Its job is to uphold the common interest,which means that it must not take instructionsfrom any national EU government. As‘Guardian of the Treaties’, it has to ensurethat the regulations and directives adoptedby the Council and Parliament are being implementedin the member states. If they arenot, the Commission can take the offendingparty to the Court of Justice to oblige it tocomply with EU law.As the EU’s executive arm, the Commissionimplements the decisions taken by the Councilin areas such as the common agriculturalpolicy. It has wide powers to manage theEU’s common policies, such as research andtechnology, overseas aid, regional development,etc. It also manages the budget forthese policies.The Commission is assisted by a civil servicemade up of 36 directorates-general (DGs)and services, which are mainly based inBrussels and Luxembourg.II. Other institutions and bodiesa. The Court of JusticeThe Court of Justice of the European Communities,located in Luxembourg, is madeup of one judge from each EU country,assisted by eight advocates-general. Theyare appointed by joint agreement of thegovernments of the member states for a renewableterm of six years. Their independenceis guaranteed. The Court’s role is toensure that EU law is complied with, andthat the Treaties are correctly interpretedand applied.b. The Court of AuditorsThe Court of Auditors in Luxembourg wasestablished in 1975. It has one memberfrom each EU country, appointed for aterm of six years by agreement between themember states following consultation of theEuropean Parliament. It checks that all theEuropean Union’s revenue has been receivedand all its expenditure incurred in a lawfuland regular manner and that the EU budgethas been managed soundly.20

© Marcy Maloy/Photodisc Red/Getty Imagesf. The European Central BankThe European Central Bank (ECB), basedin Frankfurt, is responsible for managingthe euro and the EU’s monetary policy(see Chapter 7 ‘Economic and monetaryunion (EMU) and the euro’).Europe in 12 lessonsThe Court of Justice makes sure EU law isrespected; it has for example acted to ensurethat mothers are treated fairly when they goback to work.c. The European Economicand Social CommitteeWhen taking decisions in a number of policyareas, the Council and Commission consultthe European Economic and Social Committee(EESC). Its members represent the variouseconomic and social interest groups that collectivelymake up ‘organised civil society’, andare appointed by the Council for a four-yearterm.d. The Committee of the RegionsThe Committee of the Regions (CoR) was establishedunder the Treaty on European Unionand consists of representatives of regionaland local government proposed by the memberstates and appointed by the Council fora four-year term. Under the Treaty, the Counciland Commission must consult the CoR onmatters of relevance to the regions, and it mayalso issue opinions on its own initiative.e. The European Investment BankThe European Investment Bank (EIB), basedin Luxembourg, provides loans and guaranteesto help the EU’s less developed regionsand to help make businesses morecompetitive.21

.5. What does the EU do?5. What does the EU do?22

• The European Union acts in a wide range of policy areas — economic,social, regulatory and financial — where its action is beneficial to themember states. These include:• solidarity policies (also known as cohesion policies)in regional, agricultural and social affairs;• innovation policies, which bring state-of-the-art technologiesto fields such as environmental protection, researchand development (R&D) and energy.Europe in 12 lessons• The Union funds these policies through an annual budget of morethan €120 billion, which is largely paid for by the member states.It represents a small proportion of the EU’s collective wealth(a maximum of 1.24 % of the combined gross national income of allmember states).I. Solidarity policiesThe main purpose of the solidarity policiesis to support the completion of the singlemarket (see Chapter 6, ‘The single market’),and to correct any imbalances by means ofstructural measures to help regions laggingbehind or industrial sectors encounteringdifficulties. The need for solidarity betweenEU countries and between regions becameeven more acute following the recent entryof 12 newcomers with incomes well belowthe EU average. The EU must also play itspart in helping to restructure sectors of theeconomy which have been badly affected byfast-growing international competition.a. Regional aidThe EU’s regional policy is based on transfersof funds from rich to poor countries.The money is used to boost developmentin regions lagging behind, to rejuvenateindustrial regions in decline, to help youngpeople and the long-term unemployed findwork, to modernise farming and to help lessfavouredrural areas.The funds earmarked for regional activitiesin the 2007–13 budget are targeted atthree objectives.• Convergence. The aim here is to helpthe least-developed countries and regionscatch up more quickly with the EU averageby improving conditions for growthand employment. This is done by investingin physical and human capital, innovation,the knowledge society, adaptation tochange, the environment and administrativeefficiency.• Regional competitiveness and employment.The objective is to increase thecompetitiveness, employment levels andattractiveness of regions other than theleast-developed ones. The way to make thishappen is to anticipate economic and socialchanges and promote innovation, entrepreneurship,environmental protection, accessibility,adaptability and the development ofinclusive job markets.• European territorial cooperation. Theaim of this new objective is to increase crossborder,transnational and interregional cooperation.It aims to promote joint solutions toproblems that are shared by neighbouringauthorities in sectors such as urban, ruraland coastal development, the cultivation ofeconomic relations, and networking betweensmall and medium-sized enterprises (SMEs).These objectives will be financed by specificfunds, which will top up or stimulate investmentby the private sector and by nationaland regional government. These funds are23

known as the Structural Funds and theCohesion Fund:• The European Regional DevelopmentFund (ERDF) is the first Structural Fund andprovides funding to strengthen economic,social and territorial cohesion by reducingdifferences between regions and supportingthe structural development and adjustmentof regional economies, including the redevelopmentof declining industrial regions.• The European Social Fund (ESF), thesecond Structural Fund, provides fundingfor vocational training and job-creationinitiatives.• In addition to the Structural Funds,there is a Cohesion Fund, which is used tofinance transport infrastructure and environmentalprojects in EU countries whoseGDP per capita is lower than 90% of the EUaverage.b. The common agriculturalpolicy (CAP)The aims of the CAP, as set out in the originalTreaty of Rome from 1957, have largelybeen achieved: a fair standard of living hasbeen ensured for the farming community;markets have been stabilised; supplies reachconsumers at reasonable prices; farming infrastructurehas been modernised. Otherprinciples adopted over the course of timehave also worked well. Consumers enjoysecurity of supply and the prices of agriculturalproducts are kept stable, protectedfrom fluctuations on the world market.The European Agricultural Guidance andGuarantee Fund (EAGGF) is the name ofthe budget for the CAP.However, the CAP has been a victim of itsown success. Production grew far faster thanconsumption, placing a heavy burden onthe EU budget. In order to resolve this problem,agriculture policy had to be redefined.This reform is beginning to show results.Production has been curbed. Farmers are beingencouraged to use sustainable farmingpractices that safeguard the environment,preserve the countryside and contribute toimproving food quality and safety.Producing the food that you eat: qualityis as important as quantity.The new role of the farming community is toensure a certain amount of economic activityin every rural area and to protect the diversityof Europe’s countryside. This diversityand the recognition of a ‘rural way of life’— people living in harmony with the land —are an important part of Europe’s identity.The European Union wants the World TradeOrganisation (WTO) to put more emphasison food quality, the precautionary principleand animal welfare. The European Unionhas also begun reforming its fisheries policy.The aim here is to reduce the overcapacityin fishing fleets, to preserve fish stocks andto provide financial assistance to allow fishingcommunities to develop other economicactivities.c. The social dimensionThe aim of the EU’s social policy is to correctthe most glaring inequalities in Europeansociety. The European Social Fund (ESF) wasestablished in 1961 to promote job creationand help workers move from one typeof work and/or one geographical area toanother.Financial aid is not the only way in whichthe EU seeks to improve social conditions© Chris Windsor/Photodisc Red/Getty Images24

in Europe. Aid alone could never solve allthe problems caused by economic recessionor by regional under-development. Thedynamic effects of growth must, above all,encourage social progress. This goes handin hand with legislation that guarantees asolid set of minimum rights. Some of theserights are enshrined in the Treaties, e.g. theright of women and men to equal pay forequal work. Others are set out in directivesconcerning the protection of workers (healthand safety at work) and essential safetystandards.In 1991, the Maastricht European Counciladopted the Community Charter of BasicSocial Rights, setting out the rights that allworkers in the EU should enjoy: free movement;fair pay; improved working conditions;social protection; the right to formassociations and to undertake collectivebargaining; the right to vocational training;equal treatment of women and men; workerinformation, consultation and participation;health protection and safety at the workplace;protection for children, the elderlyand the disabled. At Amsterdam in June1997, this Charter became an integral partof the Treaty and is now applicable in all themember states.II. Innovation policiesThe European Union’s activities impact onthe day-to-day life of its citizens by addressingthe real challenges facing society: environmentalprotection, health, technologicalinnovation, energy, etc.a. The environment and sustainabledevelopmentThe cornerstone of EU environmental activityis an action programme entitled ‘Environment2010: our future, our choice‘. Thiscovers the period from 2001 to 2010 andemphasises the need to:• mitigate and slow down climate changeand global warming;• deal with problems linked to environmentand health;• preserve natural resources and managewaste efficiently.Throughout the period covered by this programmeand the five programmes precedingit, and in more than 30 years of settingstandards, the EU has put in place a comprehensivesystem of environmental protection.The problems being tackled are extremelyvaried: noise, waste, the protection of naturalhabitats, exhaust gases, chemicals, industrialaccidents, the cleanliness of bathingwater and the creation of a Europeaninformation and assistance network foremergencies, which would take action in theevent of environmental disasters such as oilspills or forest fires.More recently, concerns about the health effectsof pollution have been examined in anenvironment and health action plan for the2004–10 period. This plan establishes thelink between health, the environment andresearch policy.European regulation provides the same levelof protection throughout the EU, but is flexibleenough to take account of local circumstances.It is also constantly being updated.For example, it has been decided to reworkthe legislation concerning chemicals and replaceearlier rules, which were developed ona piecemeal basis, with a single system forthe registration, evaluation and authorisationof chemicals (REACH).This system is based on a central databaseto be managed by a new European ChemicalsAgency, located in Helsinki. The aim isto avoid contamination of the air, water, soilor buildings, to preserve biodiversity and toimprove the health and safety of EU citizenswhile at the same time maintaining thecompetitiveness of European industry.Europe in 12 lessons• protect natural habitats and wild faunaand flora;25

© Andersen Ross/Digital Vision/Getty Imagesb. Technological innovationThe founders of the European Union rightlysaw that Europe’s future prosperity woulddepend on its ability to remain a world leaderin technology. They saw the advantagesto be gained from joint European research.Research fuels economic growth.So, in 1958, alongside the EEC, they establishedEuratom — the European Atomic EnergyCommunity. Its aim was for EU countriestogether to exploit nuclear energy forpeaceful purposes. As part of this, the JointResearch Centre (JRC) was created consistingof nine institutes at four locations: Ispra(Italy), Karlsruhe (Germany), Petten (theNetherlands) and Geel (Belgium).However, as innovation gathered pace,European research had to diversify, bringingtogether as wide a variety of scientistsand research workers as possible. The EUhad to find new ways of funding their workand new industrial applications for theirdiscoveries.fusion (a potentially inexhaustible sourceof energy for the 21st century). Moreover,it encourages research and technologicaldevelopment in key industries such as electronicsand computers, which face stiff competitionfrom outside Europe.The main vehicle for funding EU researchis a series of framework programmes. Theseventh research and technological developmentframework programme coversthe 2007–13 period. The biggest share ofthe €50 billion plus budget will go on areaslike health, food and agriculture, informationand communications technology, nanosciences,energy, the environment, transport,security and space and socioeconomic sciences.Additional programmes will promoteideas, people and capacities, via researchwork at the frontiers of knowledge, supportfor researchers and their career developmentand international cooperation.c. EnergyFossil fuels — oil, natural gas and coal — accountfor 80% of energy consumption inthe EU. A large and growing proportion ofthese fossil fuels are imported from outsidethe EU. At present, 50% of gas and oil isimported, and this dependence could growto 70% by 2030. The EU will thus be morevulnerable to cuts in supply or price hikescaused by international crises. Another reasonto reduce its consumption of fossil fuelsis to reverse the process of global warming.Various steps will have to be taken in future,such as saving energy by using it moreintelligently, developing alternative energysources (particularly renewable energy sourcesin Europe), and increasing internationalcooperation. Energy consumption could fallby one fifth by 2020 if consumers changedtheir behaviour and if technologies that improveenergy efficiency were fully used.Joint research at EU level is designed tocomplement national research programmes.It focuses on projects that bring together anumber of laboratories in several EU countries.It also supports fundamental researchin fields such as controlled thermonuclear26

© Targa/Van Parys MediaEurope in 12 lessonsHarnessing the planet’s natural sources of energy is one way of combating climate change.III. Paying for Europe:the EU budgetTo fund its policies, the EuropeanUnion has an annual budget of more than€120 billion. This budget is financed bywhat is called the EU’s ‘own resources’,which cannot exceed an amount equivalentto 1.24% of the total gross national incomeof all the member states.Each annual budget is part of a sevenyearbudget cycle known as the ‘financialperspective’. The financial perspectives aredrawn up by the European Commission andrequire unanimous approval from the memberstates and negotiation and agreementwith the European Parliament. Under the2007–13 financial perspective, the totalbudget for this period is €864.4 billion.These resources are mainly drawn from:• customs duties on products importedfrom outside the EU, including farm levies;• a percentage of the value-added taxapplied to goods and services throughoutthe EU;• contributions from the member statesin line with their respective wealth.27

.7. Economic and monetary union(EMU) and the euro6. The single market28

• The single market is one of the European Union’s greatestachievements. Restrictions between member countries on tradeand free competition have gradually been eliminated,with the result that standards of living have increased.• The single market has not yet become a single economic area.Some sectors of the economy (public services) are still subjectto national laws.• The individual EU countries still largely have the responsibilityfor taxation and social welfare.Europe in 12 lessons• The single market is supported by a number of related policies putin place by the EU over the years. They help ensure that market liberalisationbenefits as many businesses and consumers as possible.I. Achieving the 1993 objectivea. The limits of the common marketThe 1957 Treaty establishing the EuropeanEconomic Community made it possible toabolish customs barriers within the Communityand establish a common customstariff to be applied to goods from non-EEC countries. This objective was achievedon 1 July 1968.However, customs duties are only one aspectof protectionist barriers to cross-bordertrade. In the 1970s, other trade barriershampered the complete achievement of thecommon market. Technical norms, healthand safety standards, national regulationson the right to practise certain professionsand exchange controls all restricted the freemovement of people, goods and capital.b. The 1993 objectiveIn June 1985, the Commission, under itsthen President, Jacques Delors, published aWhite Paper seeking to abolish, within sevenyears, all physical, technical and tax-relatedbarriers to free movement within the Community.The aim was to stimulate industrialand commercial expansion within a large,unified economic area on a scale with theAmerican market.The enabling instrument for the single marketwas the Single European Act, whichcame into force in July 1987. Its provisionsincluded:• extending the powers of the Communityin some policy areas (social policy, research,environment);• gradually establishing the single marketover a period up to the end of 1992,by means of a vast legislative programmeinvolving the adoption of hundreds of directivesand regulations;• making more frequent use of majorityvoting in the Council of Ministers.II. How the single marketlooks todaya. Physical barriersAll border controls within the EU on goodshave been abolished, together with customscontrols on people. Random spot checks bypolice (part of the fight against crime anddrugs) still take place when necessary.29

The Schengen Agreement, which was signedby a first group of EU countries in 1985and later extended to others (although Irelandand the United Kingdom do not participate),governs police cooperation and acommon asylum and immigration policy, soas to make it possible to completely abolishchecks on persons at the EU’s internal borders(see Lesson 10: ‘Freedom, security andjustice’). The countries which have joinedsince 2004 are gradually coming into linewith the rules of the Schengen area.b. Technical barriersFor the majority of products, EU countrieshave adopted the principle of mutual recognitionof national rules. Any product legallymanufactured and sold in one member statemust be allowed to be placed on the marketin all others.It has been possible to liberalise the servicessector thanks to mutual recognition orcoordination of national rules concerningaccess to or practice of certain professions(law, medicine, tourism, banking, insurance,etc.). Nevertheless, freedom of movementfor persons is far from complete. Obstaclesstill hinder people from moving to anotherEU country or doing certain types of workthere.Action has been taken to improve workermobility, and particularly to ensure thateducational diplomas and job qualifications(for plumbers, carpenters, etc.) obtainedin one EU country are recognised in allthe others.The opening of national services marketshas brought down the price of national telephonecalls to a fraction of what they were10 years ago. Helped by new technology,the internet is being increasingly used fortelephone calls. Competitive pressure hasled to significant falls in the price of budgetairfares in Europe.c. Tax barriersTax barriers have been reduced through thepartial alignment of national VAT rates. Taxationof investment income was the subjectof an agreement between the member statesand some other countries (including Switzerland)which came into force in July 2005.d. Public contractsRegardless of whether they are awarded bynational, regional or local authorities, publiccontracts are now open to bidders fromanywhere in the EU as a result of directivescovering services, supplies and works inmany sectors, including water, energy andtelecommunications.III. Work in progressa. Financial servicesThe EU’s action plan to create an integratedmarket for financial services by 2005 hasbeen completed. This cuts the cost of borrowingfor businesses and consumers, andwill offer savers a wider range of investmentproducts — savings plans and pensionschemes — which they will be able to obtainfrom the European provider of their choice.Bank charges for cross-border paymentshave been reduced.b. Administrative and technicalbarriers to free movementEU countries are often still reluctant to accepteach other’s standards and norms or,on occasion, to recognise the equivalence ofprofessional qualifications. The fragmentednature of national tax systems also hindersmarket integration and efficiency.c. Piracy and counterfeitingProtection is required to prevent piracy andcounterfeiting of EU products. The EuropeanCommission estimates that these crimes costthe EU thousands of jobs each year. This iswhy the Commission and national governmentsare working on extending copyrightand patent protection.IV. Policies underpinningthe single marketa. TransportThe EU’s activities have targeted mainly thefreedom to provide services in land transport,particularly free access to the international30

transport market and the admission of nonresidenttransport firms into the nationaltransport market of member countries. Decisionshave been taken to harmonise the conditionsof competition in the road transportsector, particularly worker qualifications andmarket access, the freedom to establish abusiness and provide services, driving timesand road safety.The common air transport policy has to respondto the effects of worldwide competition.The skies over Europe are being liberalisedin stages, with the result that there isgreater scope for capacity-sharing betweenmajor airlines, reciprocal market access andthe freedom to set fares. This goes hand inhand with safeguard clauses so as to takeaccount of airlines’ public service responsibilitiesand zoning requirements.b. CompetitionThe EU’s robust competition policy datesfrom the Treaty of Rome. It is the vital corollaryto the rules on free trade within theEuropean single market. This policy is implementedby the European Commissionwhich, together with the Court of Justice, isresponsible for ensuring that it is respected.The reason for this policy is to prevent anyagreement between businesses, any aidfrom public authorities or any unfair monopolyfrom distorting free competition withinthe single market.Any agreement falling under the Treaty rulesmust be notified to the European Commissionby the companies or bodies concerned.The Commission may impose a fine directlyon any companies which break its competitionrules or fail to make the required notification.Europe in 12 lessonsIn the event of illegal public aid, or failureto notify such aid, the Commission may demandthat it be paid back by the recipient.Any merger or takeover that could lead toa company having a dominant position ina particular sector must be notified to theCommission.© Strauss/Curtis/Van Parys MediaIncreased competition has driven airfares downand made travel easier.Shipping — whether carried out by Europeancompanies or by vessels flying the flag ofnon-EU countries — is subject to EU competitionrules. These rules are intended tocombat unfair pricing practices (flags ofconvenience) and also to address the seriousdifficulties facing the shipbuilding industryin Europe.c. Consumer policyThe EU’s consumer policy permits its citizensto shop in confidence in any member country.All consumers benefit from the samehigh level of protection. The products youbuy and the food you eat are tested andchecked to make sure they are as safe ascan be. The EU acts to make sure you arenot cheated by rogue traders and are notthe victim of false or misleading advertising.Your rights are protected and you haveaccess to redress wherever you are in theEU and whether you buy your goods ina shop, by mail-order or via the telephoneand internet.31

327. Economic and monetaryunion (EMU) and the euro

• The euro is the single currency of the European Union. Twelve of the then15 countries adopted it for non-cash transactions from 1999 and for allpayments in 2002 when euro notes and coins were issued.• Three countries (Denmark, Sweden and the United Kingdom) did notparticipate in this monetary union.• The new member countries are getting ready to enter the euro area assoon as they fulfil the necessary criteria.• In parallel with the objective of monetary stability, which is the responsibilityof the European Central Bank, the member states are committed tohigher growth and economic convergence.Europe in 12 lessonsI. The history of monetarycooperationa. The European monetarysystem (EMS)In 1971, the United States decided to abolishthe fixed link between the dollar and theofficial price of gold, which had ensured globalmonetary stability after World War Two.This put an end to the system of fixed exchangerates. With a view to setting up theirown monetary union, EU countries decidedto prevent exchange fluctuations of morethan 2.25% between the European currenciesby means of concerted intervention oncurrency markets.This led to the creation of the Europeanmonetary system (EMS) which came intooperation in March 1979. It had three mainfeatures:• a reference currency called the ecu: thiswas a ‘basket’ made up of the currencies ofall the member states;• an exchange rate mechanism: eachcurrency had an exchange rate linked to theecu; bilateral exchange rates were allowedto fluctuate within a band of 2.25%;• a credit mechanism: each country transferred20% of its currency and gold reservesto a joint fund.b. From the EMS to EMUThe EMS had a chequered history. Followingthe reunification of Germany and renewedcurrency pressures within Europe, the Italianlira and pound sterling left the EMS in1992. In August 1993, the EMS countriesdecided to temporarily widen the bands to15%. Meanwhile, to prevent wide currencyfluctuations among EU currencies and toeliminate competitive devaluations, EU governmentshad decided to relaunch the driveto full monetary union and to introduce asingle currency.At the European Council in Madrid in June1989, EU leaders adopted a three-stageplan for economic and monetary union. Thisplan became part of the Maastricht Treatyon European Union adopted by the EuropeanCouncil in December 1991.II. Economic and MonetaryUnion (EMU)a. The three stagesThe first stage, which began on 1 July1990, involved:• completely free movement of capitalwithin the EU (abolition of exchangecontrols);• increasing the amount of resourcesdevoted to removing inequalities betweenEuropean regions (structural funds);33

© Janez Skok/CorbisLjubljana’s market traders swapped the Slovenian tolar for the euro on 1 January 2007.• economic convergence, through multilateralsurveillance of member states’ economicpolicies.The second stage began on 1 January1994. It provided for :• establishing the European Monetary Institute(EMI) in Frankfurt. The EMI was madeup of the governors of the central banks ofthe EU countries;• independence of national centra banks;• rules to curb national budget deficits.The third stage was the birth of the euro.On 1 January 1999, 11 countries adoptedthe euro, which thus became the commoncurrency of Austria, Belgium, Finland, France,Germany, Ireland, Italy, Luxembourg, theNetherlands, Portugal and Spain. (Greecejoined them on 1 January 2001). From thispoint onwards, the European Central Banktook over from the EMI and became responsiblefor monetary policy, which is definedand implemented in euros.Euro notes and coins were issued on 1 January2002 in these 12 euro area countries.National currencies were withdrawn fromcirculation two months later. Since then,only the euro has been legal tender for allcash and bank transactions in the euro areacountries, which represent more than twothirds of the EU population.b. The convergence criteriaEach EU country must meet the five convergencecriteria in order to go to the thirdstage. They are:• price stability: the rate of inflation maynot exceed the average rates of inflation ofthe three member states with the lowest inflationby more than 1.5%;• interest rates: long-term interest ratesmay not vary by more than 2% in relation tothe average interest rates of the three memberstates with the lowest interest rates;• deficits: national budget deficits mustbe below 3% of GDP;34

• public debt: this may not exceed 60%of GDP;d. The EurogroupThe Eurogroup is the informal body wherethe finance ministers of the euro area countriesmeet. The aim of these meetings is toensure better coordination of economic policies,monitor the budgetary and financialpolicies of the euro area countries and representthe euro in international monetaryforums.• exchange rate stability: exchange ratesmust have remained within the authorisedmargin of fluctuation for the previous twoyears.c. The Stability and Growth PactIn June 1997, the European Council adopteda Stability and Growth Pact. This was apermanent commitment to budgetary stability,and made it possible for penaltiesto be imposed on any country in the euroarea whose budget deficit exceeded 3%.The Pact was subsequently judged to be toostrict and was reformed in March 2005.e. The new member states and EMUNew EU members are all due to adopt theeuro, when they are able to meet the criteria.Slovenia was the first of countries fromthe 2004-enlargment to do so and joinedthe euro area on 1 January 2007.Europe in 12 lessons© Creativ Studio Heinem/Van Parys MediaThe euro: the common currency for over 310 million people in the EU.35

.8. Towards a knowledge-based society8. Towards aknowledge-based society36

Priority on growth and jobs• The Union intends to respond to globalisation by making the European economy more competitive (liberalisation of telecommunications,services and energy).• The Union is supporting the reform programmes of member countriesby making it easier to exchange ‘best practice’.• It seeks to match the need for growth and competitiveness withthe goals of social cohesion and sustainable development which areat the heart of the European model.Europe in 12 lessons• The EU Structural Funds will spend more on training, innovationand research, in the 2007–13 budget period.At the beginning of the 1990s, two greatchanges began transforming economiesand daily life throughout the world, includingEurope. One was the emergence of aglobalised economy as economies everywherebecame increasingly interdependent.The other was the technological revolution,including the internet and new informationand communication technologies.© IMAGEMORE Co, Ltd/Getty ImagesEuropeans have to be equipped for today’s job market.37

© Javier Larrea/Van Parys MediaTomorrow’s pensioners need social security which must be prepared today.I. The Lisbon Processa. ObjectivesBy the year 2000, EU leaders were wellaware that the European economy neededthorough modernisation in order to competewith the United States and other majorworld players. Meeting in Lisbon in Marchthat year, the European Council set the EUa new and ambitious goal: to become, by2010, ‘the most competitive and dynamicknowledge-based economy in the world, capableof sustainable growth with more andbetter jobs and greater social cohesion’.b. The strategyThe European Council also agreed on adetailed strategy for achieving this goal.The ‘Lisbon strategy’ covers a whole rangeof areas, such as scientific research, education,vocational training, internet access andonline business. It also covers reform of Europe’ssocial security systems. These systemsare one of Europe’s great assets, as theyenable our societies to embrace necessarystructural and social changes without excessivepain. However, they must be modernisedso as to make them sustainable and sothat their benefits can be enjoyed by futuregenerations.Every spring, the European Council meets toreview progress in implementing the Lisbonstrategy.II. Closer focuson growth and jobsThe European Council in spring 2006 didnot attempt to hide the fact that, six yearsafter its launch, the results of the Lisbonprocess have been mixed. As a result, it decidedto address the problem of continuinghigh unemployment in many EU countriesand refocus the EU’s priorities on growthand jobs. If it is to make its economies moreproductive and increase social cohesion, Europemust continue to concentrate its effortsmainly on raising economic performance, innovationand improving its people’s skills.38

On the initiative of the President of the EuropeanCommission, José Manuel Barroso, theEU member states have therefore decided:• to invest more in research andinnovation;• to give the European Commission agreater role as coordinator in order to givesupport to member states, particularlythrough the dissemination of ‘best practice’in Europe;• to speed up reforms in the financialmarkets and in social security systems andaccelerate liberalisation of the telecommunicationsand energy sectors.Europe in 12 lessons39

409. A citizens’ Europe

Finally, the Amsterdam Treaty improvedthe EU policy of transparency and allowedcitizens greater access to the official documentsof the European institutions.The European Union’s commitment to citizens’rights was reaffirmed in Nice in December2000 with the solemn proclamation ofthe Charter of Fundamental Rights of theEuropean Union. This Charter was drawnup by a Convention composed of membersof national parliaments, MEPs, representativesof national governments and a memberof the European Commission. Undersix headings — Dignity, Freedoms, Equality,Solidarity, Citizens’ Rights and Justice — its54 articles set out the European Union’sfundamental values and the civil, political,economic and social rights of EU citizens.The opening articles cover human dignity,the right to life, the right to the ‘integrityof the person’ and the right to freedomof expression and of conscience. The chapteron solidarity brings together, in an innovativeway, social and economic rightssuch as:• the right to strike;• the right of workers to be informed andconsulted;• the right to reconcile family life andprofessional life;• the right to healthcare, social securityand social assistance throughout the EuropeanUnion.The Charter also promotes equality betweenmen and women and introduces rights suchas data protection, a ban on eugenic practicesand the reproductive cloning of humanbeings, the right to environmental protection,the rights of children and elderly peopleand the right to good administration.IV. Europe means educationand cultureA sense of belonging together and having acommon destiny cannot be manufactured. Itcan only arise from a shared cultural awareness,which is why Europe now needs to focusits attention not just on economics butalso on education, citizenship and culture.The EU’s educational and training programmesare one element in this. They promoteexchange programmes so studentscan go abroad, participate in joint schoolactivities across borders and learn new languages,etc. It is still decided at national orlocal level how schools and education areorganised and what the exact curriculum is.In the field of culture, the EU programmes‘Culture’ and ‘Media’ foster cooperationbetween programme makers, promoters,broadcasters and artists from different countries.This helps to produce more EuropeanTV programmes and films, thereby redressingthe balance between European andAmerican output.V. The Ombudsmanand the right to petitionTo help bring the EU closer to its citizens,the Treaty on European Union created thepost of Ombudsman. The European Parliamentappoints the Ombudsman, whoremains in office for the duration of theParliament. The Ombudsman’s role is to investigatecomplaints against EU institutionsand bodies. Complaints may be brought byany EU citizen and by any person or organisationliving or based in an EU membercountry. The Ombudsman tries to arrange anamicable settlement between the complainantand the institution or body concerned.Another important link between citizens andthe EU institutions is the right of any personresiding in a member state to petition theEuropean Parliament.42

The EU programmes for lifelong learning:estimated figures for the programme period 2007–13Area concernedName of EUprogrammeAimsSchool education Comenius 5% of schoolchildren in the EuropeanUnion will participate in joint educationalactivities.Higher education Erasmus Three million students will be able tostudy at universities abroad.Europe in 12 lessonsVocational training Leonardo da Vinci Every year 80 000 people will be ableto do traineeships in companies andtraining centres in another Europeancountry.Adult education Grundtvig 7 000 people every year will be able tocarry out educational activities abroad.Europeanintegration studiesJean MonnetSupport for academic research andteaching in European integration.VI. Involving the citizensThe idea of a ‘citizens’ Europe’ is very new.Some symbols that represent a shared Europeanidentity already exist, such as theEuropean passport (in use since 1985), theEuropean anthem (Beethoven’s ‘Ode to Joy’)and the European flag (a circle of 12 goldstars on a blue background). EU driving licenceshave been issued in all EU countriessince 1996. The EU has adopted a motto,‘United in diversity’, and 9 May has beenmade ‘Europe Day’.Since 1979, the European Parliament hasbeen directly elected by universal suffrage.This gives greater democratic legitimacy tothe process of European integration, linkingit directly with the will of the people. Europecould be made even more democratic by givingthe Parliament a greater role, by creatinggenuine European political parties and bygiving ordinary people a greater say in EUpolicymaking via non-governmental organisationsand other voluntary associations.The use of euro notes and coins since 2002has had a major psychological impact. Morethan two thirds of EU citizens now managetheir personal budget and savings in euro.Pricing goods and services in euro meansthat consumers can compare prices directlyfrom one country to another. Border checkshave been abolished between most EUcountries under the Schengen Agreement(to which all EU countries should eventuallysign up), and this already gives citizens asense of belonging to a single, unified geographicarea.‘We are not bringing together states, we areuniting people’, said Jean Monnet back in1952. Raising public awareness about theEU and involving citizens in its activities isstill one of the greatest challenges facingthe EU institutions today.43

.10. Freedom, security and justice10. Freedom, securityand justice44

• The opening of internal borders between EU member statesis a very tangible benefit for ordinary people, allowing them to travelfreely without being subject to border controls.• However, this freedom of internal movement must gohand in hand with increased controls at the EU’s external bordersso as to combat effectively the trafficking of people and drugs,organised crime, illegal immigration and terrorism.• The EU countries cooperate in the area of policing and justiceso as to make Europe safer and more secure.Europe in 12 lessonsEuropean citizens are entitled to live infreedom, without fear of persecution or violence,anywhere in the European Union. Yetinternational crime and terrorism are amongthe main concerns of Europeans today.Integration in the field of justice and homeaffairs was not envisaged in the Treaty establishingthe European Community. However,as time went by, it became clear thatfreedom of movement had to mean givingeveryone, everywhere in the EU, the sameprotection and the same access to justice. Soan area of freedom, security and justice wascreated gradually over the years throughamendments to the original Treaties underthe Single European Act, the Treaty on EuropeanUnion (Maastricht Treaty) and theAmsterdam Treaty.I. Free movementThe free movement of people within the EUraises security issues for the member governments,since they no longer control internalEU borders. To compensate for this, extrasecurity measures have to be put in placeat the EU’s external borders. Moreover, sincecriminals can also exploit freedom of movementwithin the EU, national police forcesand judicial authorities have to work togetherto combat cross-border crime.One of the most important moves to make lifeeasier for travellers in the European Uniontook place in 1985, when the governmentsof Belgium, France, Germany, Luxembourgand the Netherlands signed an agreementin a small Luxembourg border town calledSchengen. They agreed to abolish all checkson people, regardless of nationality, at theirshared borders, to harmonise controls attheir borders with non-EU countries and tointroduce a common policy on visas. Theythus formed an area without internal frontiersknown as the Schengen Area.The Schengen package and the secondarylegislation derived from it have since becomean integral part of the EU Treaties, andthe Schengen Area has gradually expanded.By 2006, 13 EU countries (Austria, Belgium,Denmark, Finland, France, Germany, Greece,Italy, Luxembourg, the Netherlands, Portugal,Spain and Sweden), together with non-EU countries Iceland and Norway, were fullyimplementing the Schengen rules.When 10 new countries joined in 2004, theywere given seven years to fulfil the criteriafor membership of the Schengen Area.II. Asylum and immigration policyEurope is proud of its humanitarian traditionof welcoming foreigners and offeringasylum to refugees fleeing danger and persecution.Today, EU governments face thepressing question of how to deal with risingnumbers of immigrants, both legal and illegal,in an area without internal frontiers.45

© IOMPeople traffickers exploit the vulnerable — international police cooperation is needed.EU governments have agreed to harmonisetheir rules so that applications for asylumcan be processed in accordance with a setof basic principles uniformly recognisedthroughout the European Union. In 1999,they set themselves the goal of adopting acommon asylum procedure and giving equalstatus throughout the Union to persons whohave been granted asylum. Some technicalmeasures were adopted, such as minimumstandards for the admission of asylum-seekersand for the granting of refugee status.A European Fund for Refugees was established,with a budget of €114 million ayear. Despite this large-scale cooperationbetween national governments, a true EUasylum and immigration policy still has tobe put in place.III. Fighting internationalcrime and terrorismTo make an asylum and immigration policyviable, the EU must have an effective systemfor managing migration flows, carrying outchecks at its external borders and preventingillegal immigration. A coordinated effortis needed to combat criminal gangs whorun people-trafficking networks and who exploitvulnerable human beings, particularlywomen and children.Organised crime is becoming ever more sophisticatedand regularly uses European orinternational networks for its activities. Terrorismhas clearly shown that it can strike,with great brutality, anywhere in the world.46

This is why the Schengen information system(SIS) was set up. This is a complex databasewhich enables police forces and judicialauthorities to exchange information on peoplefor whom an arrest warrant or extraditionrequest has been issued, and on stolenproperty such as vehicles or works of art.One of the best ways of catching criminals isto track their ill-gotten gains. For this reason,and to cut off the funding of criminal andterrorist organisations, the EU has broughtin legislation to prevent money laundering.The greatest advance made in recent yearsin the field of cooperation between law enforcementauthorities was the creation ofEuropol, an EU body based in The Hagueand staffed by police and customs officers. Ittackles a wide range of international crime:drug trafficking, trade in stolen vehicles,people trafficking and illegal immigrationnetworks, the sexual exploitation of womenand children, pornography, forgery, the traffickingof radioactive and nuclear material,terrorism, money-laundering and counterfeitingthe euro.The European arrest warrant, operationalsince January 2004, is intended to replacelong extradition procedures.International crime and terrorism do notrespect national boundaries. This meansthat a common EU criminal justice policyis required, since cooperation between thecourts in different countries can be hamperedby their differing definitions of certaincriminal acts. The objective is to give the EUa common framework for fighting terrorism,so as to guarantee its citizens a high level ofprotection and step up international cooperationin this area.In the area of civil law, the EU has adoptedlegislation to facilitate the application ofcourt rulings in cross-border cases involvingdivorce, separation, child custody and maintenanceclaims so that judgments in onecountry are applicable in another. The EUhas established common procedures to simplifyand speed up the settlement of crossbordercases in small and uncontested civilclaims like debt recovery and bankruptcy.Europe in 12 lessonsIV. Towards a ‘Europeanjudicial area’At present, many different judicial systemsoperate side by side in the European Union,each within national borders. If the Unionwants its people to share the same conceptof justice, its justice system must maketheir daily lives easier rather than morecomplicated.The most significant example of practicalcooperation in this field is the work done byEurojust, a central coordinating structure establishedin The Hague in 2003. Its purposeis to enable the national investigating andprosecuting authorities to work together oncriminal investigations involving several EUcountries.47

4811 . The European Unionon the world stage

• The EU has more influence on the world stage when it speaks witha single voice in international affairs. Trade negotiationsare a good example of this.• In the area of defence, each country remains sovereign, whethera member of NATO or neutral. However, the EU member statesare developing military cooperation for peacekeeping missions.• For reasons of history and geographic proximity, the southernMediterranean and Africa are areas to which the EU gives closeattention (development aid policies, trade preferences, food aidand human rights).Europe in 12 lessonsIn economic, trade and monetary terms,the European Union has become a majorworld power. However, some have describedthe EU as an economic giant but a politicaldwarf. This is an exaggeration. It hasconsiderable influence within internationalorganisations such as the World TradeOrganisation (WTO) and the specialisedbodies of the United Nations (UN), and atworld summits on the environment and development.Nevertheless, it is true that the EU and itsmembers have a long way to go, in diplomaticand political terms, before they canspeak with one voice on major world issueslike peace and stability, relations with theUnited States, terrorism, the Middle East andthe role of the UN Security Council. Whatis more, the cornerstone of national sovereignty,namely military defence systems, remainin the hands of national governments,whose ties are those forged within alliancessuch as NATO.I. An embryonic commondefence policyThe common foreign and security policy(CFSP) and the European security anddefence policy (ESDP), introduced by theTreaties of Maastricht (1992), Amsterdam(1997) and Nice (2001), define the EU’smain tasks in the area of defence. To carryout these tasks, the EU has developed its“second pillar”, the policy domain in whichaction is decided by intergovernmentalagreement and in which the Commissionand the Parliament play only a minor role.Decisions in this domain are taken by consensus,although individual states are allowedto abstain.a. The political and strategiclandscape in 2006More than half a century of Cold War hasended – Russia has a new orientation andthe former communist countries has joinedNATO and the EU almost simultaneously.The continent of Europe is coming togetherpeacefully, and European countriesare working together to fight internationalcrime, people trafficking, illegal immigrationand money laundering.The enlarged EU has established a partnershipstructure with its neighbours, someof whom have medium-term prospects ofjoining the European Union.The United States has accepted that, for militaryaction in which the Americans are notinvolved, Europe can use some of NATO’slogistical capacity such as its intelligence,communications, command facilities andtransport capabilities.The terrorist violence that has scarred theworld since the 11 September 2001 attackson New York and Washington and thebombings in Madrid in 2004 and Londonin 2005 has profoundly altered the strategiclandscape. European countries have towork more closely together to uncover informationthat will help prevent terroristsand their backers from carrying out attacks.Cooperation with the United States and all49

© ECHelping out in tough times – EU soldiers help restore peace in the Congo.countries that support democracy and humanrights now goes beyond the frameworkof traditional defensive alliances.b. Tangible achievementsfor security and defenceUnder the Amsterdam Treaty, Javier Solanawas appointed the EU’s first High Representativefor the Common Foreign andSecurity Policy (CFSP) in 1999.EU member states have set a specific goalas part of the task of establishing a Europeansecurity and defence policy. This is tobe able to deploy a rapid reaction force withnaval and air support and sustain it for oneyear. This rapid reaction force will not yetbe a real European army. Instead it will bemade up of contingents from the existingnational armed forces.However, following the establishment ofa Political and Security Committee (PSC),a European Union Military Committee(EUMC) and a European Union MilitaryStaff (EUMS), under the authority of theCouncil and located in Brussels, the Unionalready has a political and military tool forcarrying out the missions that it has set foritself: humanitarian missions outside Europe,peacekeeping operations and othercrisis-management tasks.As military technology becomes ever moresophisticated and expensive, EU governmentsare finding it increasingly necessaryto work together on arms manufacture.Moreover, if their armed forces are to carryout joint missions, their systems must be interoperableand their equipment sufficientlystandardised. The European Council in Thessalonikidecided, in 2003, to establish aEuropean Defence Agency.Since 2003, the EU has undertaken a seriesof peacekeeping and crisis managementmissions. The most important of these hasbeen in Bosnia and Herzegovina where aEuropean Union military force (EUFOR) of7 000 troops replaced NATO peacekeepingforces in December 2004.50

II. A trade policythat is open to the worldThe European Union supports the rulesbasedsystem of the World Trade Organisation(WTO), which provides a degree of legalcertainty and transparency in the conduct ofinternational trade. The WTO sets conditionsunder which its members can defend themselvesagainst unfair practices like dumping(selling below cost) through which exporterscompete against their rivals. It also providesa procedure for settling disputes that arisebetween two or more trading partners.The EU’s trade policy is closely linked to itsdevelopment policy. Under its general systemof preferences (GSP), the EU has grantedduty-free or cut-rate preferential accessto its market for most of the imports fromdeveloping countries and economies in transition.It goes even further for the world’s49 poorest countries. All of their exports,with the sole exception of arms, enjoy dutyfreeentry to the EU market under a programmelaunched in 2001.The EU does not, however, have specifictrade agreements with its major tradingpartners among the developed countrieslike the United States and Japan. Here,trade relations are handled through theWTO mechanisms. The United States andthe European Union are seeking to developrelations founded on equality and partnership.However, EU countries are not alwaysin agreement on the type of diplomatic, politicaland military ties to establish with theUnited States.The European Union is increasing its tradewith the emerging powers in other parts ofthe world, from China and India to Centraland South America. Trade agreements withthese countries also involve technical andcultural cooperation.© ReutersEurope in 12 lessonsWine is one the EU’s main exports to its biggest trade partner, the United States.51

III. Relations between the EU andthe Mediterranean countriesGiven their geographical proximity, historicaland cultural ties, and current and futuremigration flows, the countries on thesouthern shores of the Mediterranean arepartners of prime importance. This is whythe EU has traditionally chosen to pursuea policy of regional integration.In November 1995, the EU laid the foundationsfor a new Euro-Mediterraneanpartnership at the Barcelona Conference,which was attended by all the EU memberstates and the Mediteranean countries(except for Albania, Libya and the countriesof former Yugoslavia). This conference madeit possible to trace the outline of a new partnershipinvolving:• political dialogue between the participatingcountries and a security partnershipbased, in particular, on mechanisms forarms control and the peaceful resolution ofconflicts;• stepping up economic and trading relationsbetween the two regions: the key tothis is the creation of a Euro-Mediterraneanfree trade area by 2010;• partnership in social and cultural fields.The EU granted financial assistance to thetune of €5.3 billion to the Mediterraneancountries in 2000–06. In the budget period2007–13, a European Neighbourhood andPartnership Instrument (ENPI) follows onfrom and merges into one the previouslyseparate support programme for the Mediterraneancountries and its other neighboursamong the successor states of the formerSoviet Union.© ECEnsuring everyone has access to clean water is an EU priority.52

IV. AfricaRelations between Europe and sub-SaharanAfrica go back a long way. Under the Treatyof Rome in 1957, the then colonies and overseasterritories of member states became associatesof the Community. Decolonisation,which began in the early 1960s, turned thislink into a different kind of association, onebetween sovereign countries.The Cotonou Agreement, signed in 2000in Cotonou, the capital of Benin, marked anew stage in the EU’s development policy.This agreement between the European Unionand the African, Caribbean and Pacific(ACP) countries is the most ambitious andfar-reaching trade and aid agreement everconcluded between developed and developingcountries. It followed on from the LoméConvention, which was signed in 1975 inLomé, the capital of Togo, and subsequentlyupdated at regular intervals.The new agreement goes significantly furtherthan earlier agreements, since it hasmoved from trade relations based on marketaccess to trade relations in a wider sense. Italso introduces new procedures for dealingwith human rights abuses.The European Union has granted specialtrading concessions to the least developedcountries, 39 of which are signatories to theCotonou Agreement. Since 2005, they havebeen able to export practically any type ofproduct to the EU, duty free. The EuropeanDevelopment Fund finances the ACP supportprogrammes, paying out between twoand three billion euro a year.Europe in 12 lessonsThe basic aim of this wide-ranging tradeand aid agreement remains the same asthat of the Lomé Convention: ‘to promoteand expedite the economic, cultural andsocial development of the ACP states andto consolidate and diversify their relations[with the European Union and its memberstates] in a spirit of solidarity and mutualinterest’.53

5412. What future for Europe?

• European integration will continue in the fields in which the memberstates consider it is in their best interests to work together within thetraditional EU framework (on issues like trade, globalisation, thesingle market, regional and social development, researchand development, measures to promote growth and jobsand many others.)• The institutional process of updating the rules governing the relationsbetween the member countries and the EU and between the EU and itscitizens will continue. The issue of the Constitutional Treaty will be atthe forefront of discussions in the years to come, regardless of the formand content of any text that will eventually be adopted.Europe in 12 lessons‘A day will come when all the nations ofthis continent, without losing their distinctqualities or their glorious individuality, willfuse together in a higher unity and formthe European brotherhood. A day will comewhen the only battlefield will be the marketplacefor competing ideas. A day will comewhen bullets and bombs will be replaced byvotes.’Victor Hugo spoke those prophetic words in1849, but it took more than a century forhis utopian predictions to start coming true.During that time, two world wars and countlessother conflicts on European soil causedmillions of deaths and there were timeswhen all hope seemed lost. Today, the firstdecade of the 21st century offers brighterprospects, but it also brings Europe new difficultiesand challenges.A major enlargement of the Union has goneahead. As a politician from a new memberstate put it, ‘Europe has finally managed toreconcile its history with its geography’. Infuture, the European Union will continue towelcome new members. In the meantime,its leaders, listening carefully to public opinion,will have to decide where to draw theUnion’s geographical, political and culturalboundaries.The European Union is a pact between sovereignnations which have resolved to sharea common destiny and to pool an increasingshare of their sovereignty. It toucheson things that Europeans care most deeplyabout: peace, economic and physical wellbeing,security, participatory democracy,justice and solidarity. This pact is beingstrengthened and confirmed all across Europe:half a billion people have chosen tolive under the rule of law and in accordancewith age-old values centred on humanityand human dignity.The current technological revolution is radicallytransforming life in the industrialisedworld, including Europe. It is vital to understandthat this creates new challenges thattranscend traditional frontiers. Sustainabledevelopment, population trends, economicdynamism, social solidarity and an ethicalresponse to progress in the life sciences areissues that can no longer be effectively dealtwith at national level. We must also showconsideration to future generations.The process of European integration nowaffects the whole continent, which, in turn,is part of a rapidly and radically changingworld that needs to find new stability.Europe is affected by events on other continents,whether it be relations with the Islamicworld, disease and famine in Africa,unilateralist tendencies in the United States,the dynamic economic growth in Asia or theglobal relocation of industries and jobs. Europemust not only concentrate on its owndevelopment but also embrace globalisation.The European Union still has a longway to go before it can claim to be speakingwith one voice or to be a credible player inglobal politics and diplomacy.55

The EU institutions have proved their worth,but they must be adapted to cope with theenlargement of the Union and the increasingnumber of tasks for which it is responsible.The bigger the number of members, thegreater the centrifugal forces that threatento tear it apart. Short-term interests can alltoo easily derail long-term priorities. That iswhy everyone involved in this unprecedentedadventure must shoulder their responsibilitiesto make sure the EU’s institutionalsystem can continue to work effectively. Anydefinitive change in the present system mustensure plurality and respect the differencesthat are the most precious assets of Europe’snations. Reforms must also concentrate onthe decision-making process. Insisting onunanimous agreement in all cases wouldsimply lead to paralysis. The only kind ofsystem that will work is a political and legalsystem based on majority voting, withchecks and balances built in.The Constitution, which was adopted, subjectto ratification, by the 25 Heads of Stateor Government in Rome in October 2004,tried to answer the need for simplificationof the existing Treaties and greater transparencyin the EU’s decision-making system.Ordinary people need to know ‘who doeswhat in Europe’. Only then will they feelthat it is relevant to their daily lives, votein European elections and support the ideaof European integration. The Constitutionclarifies the powers and responsibilitiesof the EU, its member states and regionalauthorities. It makes it clear that Europeanintegration is based on dual legitimacy: thedirectly expressed will of the people and thelegitimacy of the nation states, which arestill the framework within which Europeansocieties operate.Whatever constitutional system the EUcountries finally choose on the basis offresh discussions, it will have to be ratifiedby each of them either by parliamentaryvote or national referendum. To facilitatethe debate, the European Commission haslaunched a drive to reach out to its citizensthrough Plan D for Democracy, Dialogueand Debate.© Flying Colours/Digital Vision/Getty ImagesEurope – a marketplace of ideas.56

The European ConstitutionBackgroundIn December 2001, to meet the many challenges that enlargement to the countries ofcentral and eastern Europe would create for the European Union, the European Councilestablished a Convention to prepare a draft Constitutional Treaty.This Convention, which carried out its work in 2002 and 2003 under the presidency ofValéry Giscard d’Estaing, had 105 members, including representatives of the membergovernments and candidate countries, national parliamentarians, MEPs and members ofthe European Commission.Europe in 12 lessonsThe Convention adopted its draft treaty by consensus in June 2003.The Treaty was formally signed in Rome on 29 October 2004, and sent to member statesfor ratification.Although the majority of member states have ratified the treaty, it was rejected in Mayand June 2005 by voters in France and the Netherlands. Following these ‘no’ votes, theEuropean Council meeting later in June announced a period of reflection on the futureof the Constitutional Treaty.Main provisions of the Constitution• Election of a President of the European Council by qualified majority for a term oftwo and a half years, renewable once.• Election of the President of the Commission by a simple majority of MEPs followinga proposal from the European Council, and ‘taking into account the European parliamentaryelections’.• Creation of the post of EU Foreign Minister.• Incorporating the Charter of Fundamental Rights into the EU Treaty.• Increasing the number of fields covered by qualified majority voting in the Council.• Giving the European Parliament greater legislative and budgetary powers.• A clearer presentation of the breakdown of powers and responsibilities betweenthe Union and its member countries.• Giving national parliaments a role in ensuring that the EU complies withthe principle of subsidiarity.57

58Key dates in the historyof European integration

19509 MayRobert Schuman, the French Minister ofForeign Affairs, makes an important speechputting forward proposals based on the ideasof Jean Monnet. He proposes that Franceand the Federal Republic of Germany pooltheir coal and steel resources in a new organisationwhich other European countriescan join.Since this date can be regarded as the dateof birth of the European Union, 9 May isnow celebrated annually as Europe Day.195118 AprilIn Paris, six countries — Belgium, the FederalRepublic of Germany, France, Italy, Luxembourgand the Netherlands — sign the Treatyestablishing the European Coal and SteelCommunity (ECSC). It comes into force on23 July 1952, for a period of 50 years.19658 AprilA treaty is signed merging the executivebodies of the three Communities (the ECSC,EEC and Euratom) and creating a singleCouncil and a single Commission. It comesinto force on 1 July 1967.196629 JanuaryThe ‘Luxembourg compromise’. Following apolitical crisis, France agrees to take part inCouncil meetings once again, in return foran agreement that the unanimity rule bemaintained when ‘vital national interests’are at stake.19681 JulyCustoms duties between the member stateson industrial goods are completely abolished,18 months ahead of schedule, and acommon external tariff is introduced.Europe in 12 lessons19551–2 JuneAt a meeting in Messina, the foreign ministersof the six countries decide to extendEuropean integration to the economy as awhole.195725 MarchIn Rome, the six countries sign the treatiesestablishing the European Economic Community(EEC) and the European Atomic EnergyCommunity (Euratom). They come intoforce on 1 January 1958.19604 JanuaryAt the instigation of the United Kingdom,the Stockholm Convention establishes theEuropean Free Trade Association (EFTA),comprising a number of European countriesthat are not part of the EEC.196320 JulyIn Yaoundé, an association agreement issigned between the EEC and 18 Africancountries.19691–2 DecemberAt the Hague Summit, the EEC’s politicalleaders decide to move further ahead withEuropean integration, opening the way forits first enlargement.197022 AprilIn Luxembourg, a treaty is signed allowingthe European Communities to be increasinglyfinanced from ‘own resources’ and givinggreater supervisory powers to the EuropeanParliament.197222 JanuaryIn Brussels, treaties of accession to the EuropeanCommunities are signed with Denmark,Ireland, Norway and the United Kingdom.19731 JanuaryDenmark, Ireland and the United Kingdomjoin the European Communities, bringingtheir membership to nine. Norway stays out,following a referendum in which a majorityof people voted against membership.59

19749–10 DecemberAt the Paris Summit, the political leadersof the nine member states decide to meetthree times a year as the European Council.They also give the go-ahead for direct electionsto the European Parliament, and agreeto set up the European Regional DevelopmentFund.197528 FebruaryIn Lomé, a convention (Lomé I) is signed betweenthe EEC and 46 African, Caribbeanand Pacific (ACP) countries.22 JulyA treaty is signed giving the European Parliamentgreater power over the budget andestablishing the European Court of Auditors.It comes into force on 1 June 1977.19797–10 JuneThe first direct elections to the 410-seatEuropean Parliament.19811 JanuaryGreece joins the European Communities,bringing the number of members to 10.198414–17 JuneThe second direct elections to the EuropeanParliament.19857 JanuaryJacques Delors becomes President of theCommission (1985–95).14 JuneThe Schengen Agreement is signed withthe aim of abolishing checks at the bordersbetween member countries of the EuropeanCommunities.19861 JanuarySpain and Portugal join the European Communities,bringing their membership to 12.17 and 28 FebruaryThe Single European Act is signed in Luxembourgand The Hague. It comes into forceon 1 July 1987.198915 and 18 JuneThe third direct elections to the EuropeanParliament.9 NovemberThe fall of the Berlin Wall.19903 OctoberGerman unification.19919–10 DecemberThe Maastricht European Council adopts aTreaty on European Union, laying the foundationfor a common foreign and securitypolicy, closer cooperation on justice andhome affairs and the creation of an economicand monetary union, including a singlecurrency.19927 FebruaryThe Treaty on European Union is signed atMaastricht. It comes into force on 1 November1993.19931 JanuaryThe single market is created.19949 and 12 JuneThe fourth direct elections to the EuropeanParliament.19951 JanuaryAustria, Finland and Sweden join the EU,bringing its membership to 15. Norwaystays out again following a referendum inwhich a majority of people voted againstmembership.60

23 JanuaryA new European Commission takes officewith Jacques Santer as its President(1995–99).27–28 NovemberThe Euro-Mediterranean Conference in Barcelonalaunches a partnership between theEU and the countries on the southern shoreof the Mediterranean.19972 OctoberThe Amsterdam Treaty is signed. It comesinto force on 1 May 1999.199830 MarchThe accession process begins for the newcandidate countries. Cyprus, Malta and 10central and eastern European countries willbe involved in this process.19991 JanuaryStart of the third stage of EMU: 11 EU countriesadopt the euro, which is launched onthe financial markets, replacing their currenciesfor non-cash transactions. The EuropeanCentral Bank takes on responsibility formonetary policy. The 11 countries are joinedby Greece in 2001.10 and 13 JuneThe fifth direct elections to the EuropeanParliament.15 SeptemberA new European Commission takes officewith Romano Prodi as its President (1999–2004).15–16 OctoberThe Tampere European Council decides tomake the EU an area of freedom, securityand justice.© ReutersEurope in 12 lessonsA new currency was born in 1999, when the euro was introduced for financial (non-cash)transactions. Notes and coins followed in 2002.61

200023–24 MarchThe Lisbon European Council draws upa new strategy for boosting employmentin the EU, modernising the economyand strengthening social cohesion in aknowledge-based Europe.7–8 DecemberIn Nice, the European Council reaches agreementon the text of a new Treaty changingthe EU’s decision-making system so thatthe Union will be ready for enlargement.The presidents of the European Parliament,the European Council and the EuropeanCommission solemnly proclaim the Charterof Fundamental Rights of the EuropeanUnion.200126 FebruarySigning of the Treaty of Nice. It comes intoforce on 1 February 2003.14–15 DecemberLaeken European Council. A declaration onthe future of the EU is agreed. This opensthe way for the forthcoming major reform ofthe EU and for the creation of a Conventionto draft a European Constitution.20021 JanuaryEuro notes and coins are introduced in the12 euro-area countries.20041 MayCyprus, the Czech Republic, Estonia, Hungary,Latvia, Lithuania, Malta, Poland, Slovakiaand Slovenia join the European Union.10 and 13 JuneThe sixth direct elections to the EuropeanParliament.29 OctoberThe European Constitution is adopted inRome (subject to ratification by memberstates).22 NovemberA new European Commission takes officewith José Manuel Barroso as its President.200529 May and 1 JuneVoters in France reject the Constitution ina referendum, followed three days later byvoters in the Netherlands.3 OctoberAccession negotiations begin with Turkeyand Croatia.20071 JanuaryBulgaria and Romania join the EuropeanUnion.Slovenia adopts the euro.13 DecemberThe Copenhagen European Council agreesthat 10 of the candidate countries (Cyprus,the Czech Republic, Estonia, Hungary, Latvia,Lithuania, Malta, Poland, Slovakia and Slovenia)can join the EU on 1 May 2004.200310 JulyThe Convention on the Future of Europecompletes its work on the draft EuropeanConstitution.4 OctoberStart of the intergovernmental conferenceresponsible for drawing up the constitutionaltreaty.62

The European Union63

European CommissionEurope in 12 lessonsby Pascal FontaineLuxembourg: Office for Official Publications of the European Communities2006 — 62 pp. — 16.2 x 22.9 cmISBN 92-79-02864-2What purpose does the EU serve? Why and how was it set up? How does it work? What hasit already achieved for its citizens, and what new challenges does it face today? How cancitizens get more involved?In an age of globalisation, can the EU compete successfully with other major economies andmaintain its social standards? Can Europe continue to play a leading role on the world stageand help protect against terrorism?These are just some of the questions Pascal Fontaine — EU expert and former university lecturer— explores in the new 2007 edition of his popular booklet ‘Europe in 12 lessons’.

Other information about the European UnionEUROPEAN COMMISSION REPRESENTATIONSRepresentation in Ireland18 Dawson Street, Dublin 2Tel. (353-1) 634 11 11Fax (353-1) 634 11 12Internet: www.euireland.ieE-mail: eu-ie-info-request@ec.europa.euRepresentation in the United Kingdom8 Storey’s Gate, London SW1P 3ATTel. (44-20) 79 73 19 92Fax (44-20) 79 73 19 00/10Internet: www.ec.europa.eu/ukRepresentation in Wales2 Caspian Point, Caspian Way,Cardiff CF10 4QQTel. (44-29) 20 89 50 20Fax (44-29) 20 89 50 35Internet: www.ec.europa.eu/ukGo onlineInformation in all the official languages of the European Union is availableon the Europa website: europa.euVisit usAll over Europe there are hundreds of local EU information centres. You can findthe address of the centre nearest you on this website: europedirect.europa.euCall or write to usEUROPE DIRECT is a service which answers your questions about the European Union. Youcan contact this service by freephone: 00 800 6 7 8 9 10 11(or by payphone from outside the EU: (32-2) 299 96 96),or by electronic mail via europedirect.europa.euYou can also obtain information and booklets in English about the European Union from:Representation in Scotland9 Alva Street, Edinburgh EH2 4PHTel. (44-131) 225 20 58Fax (44-131) 226 41 05Internet: www.ec.europa.eu/ukRepresentation in Northern IrelandWindsor House9/15 Bedford Street, Belfast BT2 7EGTel. (44-28) 90 24 07 08Fax (44-28) 90 24 82 41Internet: www.ec.europa.eu/ukInformation services in the United States2300 M Street, NW — 3rd floorWashington DC 20037Tel. (202) 862 95 00Fax (202) 429 17 66Internet: www.eurunion.org222 East 41st Street, 20th floorNew York, NY 10017Tel. (212) 371 38 04Fax (212) 688 10 13Internet: www.eurunion.orgEUROPEAN PARLIAMENT OFFICESOffice in IrelandEuropean Union House43 Molesworth Street, Dublin 2Tel. (353-1) 605 79 00Fax (353-1) 605 79 99Internet: www.europarl.ieE-mail: epdublin@europarl.europa.euUnited Kingdom Office2, Queen Anne’s Gate, London SW1H 9AATel. (44-20) 72 27 43 00Fax (44-20) 72 27 43 02Internet: www.europarl.org.ukE-mail: eplondon@europarl.europa.euOffice in ScotlandThe Tun, 4 Jackson’s Entry,Holyrood Road, Edinburgh EH8 8PJTel. (44-131) 557 78 66Fax (44-131) 557 49 77Internet: www.europarl.org.ukE-mail: epedinburgh@europarl.europa.euThere are European Commission and Parliamentrepresentations and offices in all the countries ofthe European Union. The European Commissionalso has delegations in other parts of the world.

Europe in 12 lessonsWhat purpose does the EU serve? Why and how was it setup? How does it work? What has it already achieved for itscitizens, and what new challenges does it face today? Howcan citizens get more involved?In an age of globalisation, can the EU compete successfullywith other major economies and maintain its socialstandards? Can Europe continue to play a leading role onthe world stage and help protect against terrorism?These are just some of the questions Pascal Fontaine — EUexpert and former university lecturer — explores in the new2007 edition of his popular booklet ‘Europe in 12 lessons’.9 78 9 2 7 9 0 2 8 6 4 9 >NA-AK-06-290-EN-C