Transcript A Brief History of the European Union

EUROPEAN UNION
Delegation of the European Commission
From Europe to the Euro
Amy Medearis
Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Euro Challenge 2009 Faculty Orientation
New York, NY
November 25, 2008
Amy Medearis, Senior Economist
Delegation of the European Commission to the United States
Slide 1
From Europe to the Euro
- Brief History
The Single Market
Enlargement
The Euro
- EU versus Euro
Area
- Why Care?
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 2
A Brief History of the EU:
Deepening and Widening
Political goals, Economic steps
Amy Medearis, Senior Economist
Delegation of the European Commission to the United States
Slide 3
A Brief History of the European Union
The original goal behind the integration of Europe was to
prevent the devastating wars of the first half of the
twentieth century from ever happening again…
Dresden, Germany, 1945.
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 4
A Brief History of the European Union
1950
2007
March 1957
Rome Treaties
European Economic Community (EEC)
European Atomic Energy Community (EURATOM)
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 5
A Brief History of the European Union
2007
1950
1973
United Kingdom,
Ireland and Demark
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 6
A Brief History of the European Union
2007
1950
1981
Greece
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 7
A Brief History of the European Union
2007
1950
1986
Spain and Portugal
Same year:
the “Single European Act”
was signed, revising the
Treaty of Rome and
re-launching European
Integration and the completion
of the internal market
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 8
A Brief History of the European Union
2007
1950
1989
Fall of the Berlin Wall
“Hidden enlargement”
E. Germany
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 9
A Brief History of the European Union
2007
1950
1992
“Deadline” for
completing the single
market (Dec. 31, 1992)
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 10
A Brief History of the European Union
2007
1950
1993
Maastricht
Treaty
1
2
TREATIES
3
Treaty of European Union
established 3 pillars
of cooperation:
Economic (EMU),
Political, Judicial
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 11
A Brief History of the European Union
2007
1950
1995
Austria, Finland and Sweden
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 12
A Brief History of the European Union
2007
1950
1999
EURO launched
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 13
A Brief History of the European Union
2007
1950
May 1, 2004
1999
EURO launched
Cyprus
The Czech Republic
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
The Slovak Republic
Slovenia
Jan. 1, 2007
Romania
Bulgaria
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 14
Decision-Making in the EU
Council
of the EU
European
Commission
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
European
Parliament
Slide 15
The goals of EU enlargement
To spread stability, peace, democracy,
freedom
To make the EU stronger than the sum of its
parts
To strengthen and sustain the European
social model/s
To realize the potential of significant
economic opportunities in the form of a
larger market
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 16
Economic Benefits and Challenges of Enlargement
2004 GDP per capita in PPS, EU25=100
It is estimated that
the enlargement of
2004 will have added
1.0%-1.8% per year to
the GDP of the 10
new Member States
(1994-2009), and a
cumulative 0.5-0.7%
to GDP of the EU-15.
EU 27
100
Euro area
Cyprus
Slovenia
Czech Republic
Malta
Hungary
Slovakia
Estonia
Poland
Lithuania
Latvia
Romania
Bulgaria
107
91
83
75
74
64
57
56
51
51
46
34
33
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 17
27 EU Member States (FYI)
Austria, Belgium, Bulgaria,
Cyprus, Czech Republic,
Denmark, Estonia, Finland,
France, Germany, Greece,
Hungary, Ireland, Italy,
Latvia, Lithuania,
Luxembourg, Malta,
Netherlands, Poland,
Portugal, Romania,
Slovakia, Slovenia, Spain,
Sweden, United Kingdom
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 18
The Single Market
Based on Four Freedoms:
–
–
–
–
Free movement of goods;
Free movement of capital;
Free movement of persons;
Free movement of services.
Impact: GDP boosted by nearly €900 billion over 10year period 1992-2002 (over $1 trillion) and 2.5
million jobs created from the single market alone.
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 19
The Single Market
More than a free trade area:
• Free trade area: no tariffs on traded goods inside FTA
• Customs Union (1968): FTA + common external tariff
• Single (or Internal) Market (1992): breakdown of all
tariff and non-tariff barriers to trade and business
Benefits of the Single Market:
increased prosperity; more jobs; easier travel; more
opportunities to live, work and study in other EU
countries; wider choice of products and services; lower
prices; less red tape; huge potential market
(economies of scale); easier to do business.
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 20
The Euro
One market, one money?
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
The Euro has boosted
economic integration
within the Euro Area
(trade, foreign direct
investment, and
financial services)
Slide 21
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 22
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 23
The euro area (13) versus EU (27)
Euro area: Austria, Belgium, Finland,
France, Germany, Greece, Ireland,
Italy, Luxembourg, Netherlands,
Portugal, Slovakia*, Slovenia, Spain
EU Member States obliged to adopt
the euro eventually: Bulgaria, Cyprus,
Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Malta, Poland,
Romania, Sweden
EU Member States with an “opt out”
from adopting the euro: Denmark, UK
* Slovakia will adopt the euro 1/1/09
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 24
Why teach about the EU? The European economy? The Euro?
1. Europe is a major player
in the global economy
2. It is the most important trade and
investment partner for the United States
3. Common challenges (e.g., related to
globalization and ageing)
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 25
EU-US Economic Relations
The European Union's 27 members
represent just 7% of the world's population,
but they account for more than one-fifth of
world trade.
– Transatlantic flows of trade and
investment amount to around $1 billion a day
– jointly, US and EU global trade
accounts for almost 40% of world trade
the largest bilateral trade partnership
in the world!
– Together, EU and US make up nearly 40% of global output
(GDP) and are drivers of global economic policy.
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 26
Common Interests and Problems
EU & US have common values in democratic
government, human rights and market
economics, and they are bound by addressing
global challenges (i.e. security/terrorism &
sustainable development)
Common economic issues, such as financial
reform; ageing populations; need for budgetary
savings; global competitiveness; immigration
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 27
FOR MORE INFO . . .
For additional resources to
prepare for the Euro Challenge:
www.euro-challenge.org
For more information on the
European Union in the US, please
visit: www.eurunion.org
To access EUROPA, the EU’s
official web portal, please visit:
http://ec.europa.eu/
Amy Medearis, Senior Economist, Economic and Financial Affairs Section
Delegation of the European Commission to the United States
Slide 28