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    The European Union (EU)

    The Worlds Strongest

    Supranational Organization

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    What is it?

    The European Union (EU) is a family of democraticEuropean countries, committed to working togetherfor peace and prosperity.

    It is not a State intended to replace existing states, but it

    does represent a greater compromise of sovereigntythan any other international organization.

    The EU is unique; its Member States have set upcommon institutions to which they delegate some of theirsovereignty so that decisions on specific matters of jointinterest can be made democratically at European level.

    This pooling of sovereignty is also called "Europeanintegration"

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    European Coal and Steel

    Community

    Founded in 1951(Treaty of Paris)

    Purpose was to

    reduce potential forconflict between themember states bypooling vitalresources

    Fore-runner of theEEC, EC, and EU

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    History of the EU

    The historical roots ofthe European Unionlie in the SecondWorld War. Idea of European

    integration conceived

    to prevent such killingand destruction fromever happening again

    First proposed by theFrench ForeignMinister RobertSchuman in a speech

    on May 9, 1950. Thisdate, the "birthday" ofwhat is now the EU, iscelebrated annually asEurope Day

    Phases of growth Initially, the European Economic

    Community (EEC)consisted of justsix countries: Belgium, Germany,France, Italy, Luxembourg and theNetherlands (1958)

    European Communities(EC)(1967)

    Denmark, Ireland and the UnitedKingdom joined in 1973

    Greece in 1981

    Spain and Portugal in 1986

    European Union(EU)(after 1992)(Maastricht Treaty)

    Austria, Finland and Sweden in 1995

    Largest enlargement took place with10 new countries joining May 9, 2004

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    Creation of the EU

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    GROWTH OF THE EU

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    GROWTH OF THE EU

    Admission

    of Romania

    and

    Bulgaria

    2007

    Major

    debates

    about

    Turkey

    Croatia and

    Macedonia

    are new

    candidates

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    CORE?

    ?

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    CONFIRMATION OF CORE-DOMAIN MODEL

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    How does it work?

    There are five EU institutions,each playing a specific role: European Parliament(one of two

    legislative bodies in the EU;elected by the peoples of theMember States)

    Council of the European Union

    (EUs highest Legislative Body;has legislative initiative; is madeup of representatives appointedby member states according to apopulation-based allotment)

    European Commission(EUsexecutive body; onecommissioner per country

    appointed by each government) Court of Justice(ensures

    compliance with the EU laws)

    Court of Auditors(manages theEU budget)

    These are flanked by five otherimportant bodies: European Economic and Social

    Committee(expresses theopinions of organized civil societyon economic and social issues)

    Committee of the Regions

    (expresses the opinions ofregional and local authorities)

    European Central Bank(responsible for monetary policyand managing the euro)

    European Ombudsman(dealswith citizens' complaints aboutmaladministration by any EUinstitution or body)

    European Investment Bank(helps achieve EU objectives byfinancing investment projects)

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    The Euro

    The Treaty of Rome (1957) Declared a common market as a European objective

    Aim: increase economic prosperity and contribute to "an evercloser union among the peoples of Europe"

    The Single European Act (1986) and the Treaty on

    European Union (1992) built on this introduced Economic and Monetary Union (EMU)

    laid the foundations for a single currency

    name Euro was selected in 1995

    in January 1999, the exchange rates of the participating

    currencies were irrevocably set and Euro area Member Statesbegan implementing a common monetary policy

    in January 2002, 12 States in the EU introduced the new eurobanknotes and coins

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    The Eurozone

    Coins and banknotes 1st

    usedJan 1, 2002

    Cyprus sheduled to join in 2008

    Slovakia scheduled to join in2009

    Estonia scheduled to join in2010

    Sweden is technically obligedto join but the EU has madepublic that they will not enforcethis with regard to Sweden

    Britain and Denmark have aderogation releasing themfrom having to join

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    Impact of the Eurozone

    What impact do you think the Eurozone

    has on cultural diffusion?

    What impact do you think the Eurozone

    has on economic development?

    Why are some countries avoiding joining?

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    A strong currency!

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    Why have bills different

    sizes & colors?

    What values are

    reflected in these

    artifacts that are not

    found in American

    money?

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    What about Switzerland?

    Swiss are traditionally suspicious of other countries

    Swiss tradition of neutrality (WWI & WWII) self-imposed

    permanent

    armed

    In some ways Switzerland is like the US Nationalistic government not interested in ceding sovereignty

    Economic policies are currently designed to protect localindustries (esp. agriculture) from foreign competition

    Initial cost of joining EU (progressive financialredistribution policy would cost the Swiss)

    Switzerland has embarked on a policy of buildingbilateral agreements with the EU rather than joiningoutright

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    Costs of staying out

    Export problems Access to EU markets is not guaranteed

    Inflation problems Europeans nervous about the Euro due to expansion of the EU invest in Swiss

    Francs, inflating the value of the currency and inhibiting Swiss exports

    Capital flight

    High construction costs, expensive labor, and skill shortages already makeinvestment in Switzerland unattractive

    Several multinational corporations, such as Roche, Sulzer and Alusuisse, havefrozen planned investment projects in Switzerland

    Large Swiss companies, including Nestle, are shifting activities out of Switzerlandin fear of discrimination by other nations

    Already four out of five employees of the top 15 Swiss companies work in other

    countries Scientific information lag EU scientific exchange programs accept Swiss citizens only if they fail to fill such

    exchanges with persons from EU countries

    Accumulated bilateral agreements and cooperation may create de-factoincorporation in the EU for Switzerland

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    The EU in comparative

    perspective

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    US dominates entertainment

    industry in Europe

    Cultural hegemony?

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    SUMMARY

    The European Union is the strongest supranational organization inthe world shared currency & financial management

    legislative, judicial, and executive bodies

    regulatory and planning bodies

    The EU is growing geographically, and its growth suggests a core-domain model core and domain are borne out by distribution of income

    The EU does not appeal to all Europeans (at least not yet) small states in particular seem skeptical

    Roughly comparable to the US in some ways

    population slightly larger than that of the US somewhat more densely settled than the US

    economy is at least as strong as the American economy

    other social statistics (e.g. literacy, infant mortality & homicide) are asgood or better than the US


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