MS: member states
ECB: European central bank
- Supranational organization corresponding to a federation of 27 MS
- The largest confederation existing in the world and developing many links in terms of legal and commercial activities.
- Based on the principal of a common market
- The main principal is to organize a freerelationship between the different MS.
The specificities of the common market are developed through a customs union, a common currency system under the control of the ECB, but also a common agricultural policy and trade policy.
EU also means the possibility to move freely across the borders according to a common justice and a foreign policy.
With the Schengen agreement for an individual thereis the possibility to move and to set up without restriction in any EU country.
The treaty of Amsterdam has also established controls over the free circulation and restrictions for individuals with criminal records (=casier judiciaire).
Finally the UE must be seen as a global market where not only individuals but also investors, firms, can develop:
o A dominant position giving toEU a commercial and economic strength.
We can also compare the EU system to the USA federation with the same organization and institutions.
The objective is to put the European and American markets on the same level and to develop a common policy between the two continents.
However, the development of the EU has been different from the USA and its history is developed through the followingelements
Chapter 1: European Community and European Union
a) European communities (EC)
1945: The main objective was to bring peace to Europe and to create a kind of global Union between some states.
1946: The English Prime Minister, Churchill, had the idea to set up the United States of Europe.
In the first place the idea was to control the principal elements of European energy andalso so supervise the principal sources such as coal an d steel (=charbon et acier).
1951: An agreement was signed between Germany and France to develop the ECSC (=European coal and steel community).
2010: The countries of Eastern Europe (ex: Poland) will refer to the coal industry as a possible substitute to oil industry. It was not enough to have an agreement between 2 states and the finaltarget was to promote a common market inside which European countries could develop a free movement of individual’s merchandize and also a real freedom for business.
1957: The idea was achieved in the treaty of Roma known as EEC (=European Economic Community). The agreement was mainly for goods and services, labor, capital and currency.
It was also essential to organize strict rules for aglobal strategy in Europe, and it fact the success of the treaty was performed with the abolition of:
- Customs duties
- Tax barriers
- Quotas (Quantitative restrictions)
- Any tax or commercial limit constituting an obstacle to the free market
The treaty was finally signed by many countries in EU but the most difficult part was to convince the MS to realize the free circulation of people whichtook almost 40 years (to 1957 to 1997) to be completed.
In 1957, we had only 6 countries and it took more than 15 years to integrate more states such as: UK, Denmark (in 1973)
1951: the coal and steel organization had set up the 1st institution such as the High Authority which is now:
- European Council (=conseil de l’ordre)
- The parliament
- Court of Justice
1965: Merger treaty (fusiondes institutions), creating the European council, a Parliament and finally the European court of Justice. This was essential to prepare a larger access to the European community and to organize a more commercial unity between the different countries. In fact, the idea of the European states was to open the gates to more partners through the proceeding of enlargement.
In the 70’s and 80’s: more...