Transcript Document

European Union
Presented By
Jun Yun Hao
Hin “Stephen” Kwok
Kadambala Muralidhar
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What is European Union ?
European Union earlier known as
European Community was created after
World War II to unite the European
nations economically.
 EU is an institutional framework for the
construction of a United Europe.
 25 Countries are the current members.
 12 Countries share the same currency.

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Chronology of EU.
1952
Six countries - Belgium, France, the Federal Republic of
Germany, Italy, Luxembourg and the Netherlands - create
the European Coal and Steel Community (ECSC) by
pooling their coal and steel resources in a common
market controlled by an independent supranational
authority.
1958
The Rome Treaties set up the European Economic
Community (EEC) and the European Atomic Energy
Community (Euratom), extending the common market for
coal and steel to all economic sectors in the member
countries.
1965
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The Merger Treaty is signed in Brussels on April 8. It
provides for a Single Commission and a Single Council of
the then three European Communities.
Chronology of EU.
1967
The Merger Treaty enters into force on July 1
1973
The United Kingdom, Ireland, and Denmark join the
European Community (EC).
1979
The European Parliament is elected, for the first time, by
direct universal suffrage and the European Monetary
System (EMS) becomes operative.
1981
Greece becomes the 10th member state.
1985
The program to complete the Single Market by 1992 is
launched.
1986
Spain and Portugal become the 11th and 12th member
states.
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Chronology of EU.
1987
The Single European Act (SEA) introduces majority voting
on Single Market legislation and increases the power of
the European Parliament.
1989
The Madrid European Council launches the plan for
achievement of Economic and Monetary Union (EMU).
1990
East and West Germany are reunited after the fall of the
Berlin Wall.
1991
Two parallel intergovernmental conferences produce the
Treaty on European Union (Maastricht) which EU leaders
approve at the Maastricht European Council.
1992
Treaty on European Union signed in Maastricht and sent
to member states for ratification. First referendum in
Denmark rejects the Treaty.
1993
The Single Market enters into force on January 1. In May,
a second Danish referendum ratifies the Maastricht
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Treaty, which takes effect in November.
Chronology of EU.
1994 The EU and the 7-member European Free Trade Association
(EFTA) form the European Economic Area, a single market of
19 countries. The EU completes membership negotiations with
EFTA members Austria, Finland, Norway and Sweden.
1995 Austria, Finland and Sweden join the EU on January 1. Norway
fails to ratify its accession treaty. The EU prepares the 1996
Intergovernmental Conference on institutional reform.
1997 The Treaty of Amsterdam, resulting from the 1996
Intergovernmental Conference, is signed on October 2.
1999 The Euro is introduced on January 1 electronically in 12
participating member states, with complete introduction to occur
in 2002. The Amsterdam Treaty enters into force on May 1.
2001 The Treaty of Nice results from the 2000 Intergovernmental
Conference.
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Chronology of EU.
2002
The Euro is fully launched on January 1. The European
Convention begins, as part of the debate on the future of
Europe, to propose a new framework and structures for the
European Union--geared to changes in the world situation,
the needs of the citizens of Europe and the future
development of the European Union.
2003
The Treaty of Nice enters into force on February 1.
2004
Ten countries (Cyprus, the Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Malta, Poland, the Slovak
Republic and Slovenia) join the European
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Five EU Institutions

European Parliament (elected by the peoples of the
Member States);

Council of the European Union (representing the
governments of the Member States);

European Commission (driving force and executive
body);

Court of Justice (ensuring compliance with the law);

Court of Auditors (controlling sound and lawful
management of the EU budget).
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Five EU Bodies

European Economic and Social Committee (expresses the
opinions of organized civil society on economic and social
issues);

Committee of the Regions (expresses the opinions of
regional and local authorities);

European Central Bank (responsible for monetary policy and
managing the euro);

European Ombudsman (deals with citizens' complaints about
maladministration by any EU institution or body);

European Investment Bank (helps achieve EU objectives by
financing investment projects);
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The EU Then and Now
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In 1958, 6
members
23% of population
relied on farming
for job
40% of population
work in industry
37% of population
work in service
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By 2001, 15
members
4% of population
relied on farming
for job.
29% of population
work in industry
67% of population
work in service
Achievements and Goals
 Creation
of a customs union
 The single market
 Economic and monetary union
(EMU)
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The Bigger the EU, The Greater the Benefit
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Enlargement of EU to 25 countries cost
money initially.
“Old” member states could be 1% larger
than they could otherwise have been.
New members can expect up to 1% more
growth each year from membership.
It could mean the creation of more then
300,000 jobs in these countries by 2010.
Benefit of Custom Union

Benefits of custom union were clear from an
early stage.By 1970,member states were
trading
6 times as much between themselves
than 12 years earlier.
 3 times as much with the rest of the
world
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Their economies more than doubled in size
and were expanding faster than the US
economy
Benefit of Single Market

Keen competition and room to expand
within the single market helps keep
European companies among the world
leaders.
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Of the world’s 100 largest companies, 32 are
from EU.
Of the world’s 100 largest commercial bank,
39 are from EU.
Of the world’s 100 largest most valuable
brands, 27 are from EU.
Benefit of Single Market (continue)
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Added 1.8 percentage points to GDP
growth in the EU as a whole.
Generated 900 billion in extra prosperity.
Created 2.5 million jobs in the EU.
Contributed to a 30% increase in trade in
manufactured goods in EU.
Been a key factor in boosting flows of direct
investment within EU.
Benefit of Single Market (continue)
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Encouraged new inflows of foreign direct
investment from outside the EU.
Made EU more internationally competitive.
For example, EU exports to countries
outside the EU increased from 6.9% of EU
GDP to 11.2%.
Boosted purchasing power through
pressure on prices.
Benefit of Single Currency
 “Tax”
on doing business within
EU countries used to amount to
1% of GDP before single
currency.
 After single currency, 80% of “tax”
disappear.
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EU Benefit of Single
Currency
Single currency makes investment
among member states more stable.
 Single currency also help attract
foreign investors.
 Because of the stability of the Euro,
many countries are now using Euro as
their reserved in addition to US dollar.

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Benefit of Single Currency
 “Tax”
on doing business within
EU countries used to amount to
1% of GDP before single
currency.
 After single currency, 80% of “tax”
disappear.
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Freedom for People Too
 Freedom
of movement has since
been extended to job seekers,
students, pensioners, in fact
virtually everybody.
 More than 15 million EU citizens
have moved to work or retire in
another EU country. (i.e. Bavaria)
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EU’s impact on domestic and
foreign economy
EU has placed a vital part in the global
economy recovery. Especially in some
of the Ex-USSR states.
 Increase Trade among member states
helps ease the global recession in 1999.
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EU’s impact on domestic and
foreign economy
Austria, Bavaria, Czech Republic,
Poland, and Hungary are just some
countries that have benefit from the
creation of EU, the Euro, and the
continue expansion of EU.
 Many of these benefit comes from
increase of trade and export to member
states of EU.
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EU’s impact on domestic and
foreign economy
Bigger bargaining power with other
major country outside the EU
membership. (i.e. US)
 EU is able to impose stronger economic
standard against foreign economy then
previously able to due to a single
agreement that covers many EU
member countries.
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Landmarks in EU-US Cooperation.

2 Greatest Economies in the World.
(both put together is about half the entire world economy)
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Biggest Bilateral Trading and
investment relationship. (Transatlantic flows of
trade and investment amount to around $1 billion a day)
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EU and it’s problem
Continue agreement and cooperation
within member states.
 Lost of some national identity.
 Fear of lost of control of the country’s
own natural resource (i.e. Iceland’s
fishing industries).
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Questions ?
Thanks for Your Patience.
Have a Great Memorial
Day Weekend.
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