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The European Union or EU is an intergovernmental and supranational union of 25 European countries, known as member states. The European Union was established under that name in 1992 by the Treaty on European Union (the Maastricht Treaty). However, many aspects of the Union existed before that date through a series of predecessor relationships, dating back to 1951. The European Union's activities cover all areas of public policy, from health and economic policy to foreign affairs and defense. However, the extent of its powers differs greatly between areas. Depending on the area in question, the EU may therefore resemble:
A key activity of the EU is the establishment and administration of a common single market, consisting of a customs union, a single currency (adopted by 12 of the 25 member states), a Common Agricultural Policy, a common trade policy, and a Common Fisheries Policy. The most important EU institutions are the Council of the European Union, the European Commission, the European Parliament and the European Court of Justice.
StatusThe members of the European Union have transferred to it considerable sovereignty — more than that of any other non-sovereign regional organisation. As has been mentioned, in certain areas the EU begins to take on the character of a federation or confederation. However, in legal terms, member states remain the masters of the Treaties, which means that the Union does not have the power to transfer additional powers from states onto itself without their agreement through further international treaties. Further, in many areas member states have given up relatively little national sovereignty, particularly in key areas of national interest such as foreign relations and defence. This unique structure means the European Union is perhaps best seen as a sui generis entity. On 29 October 2004, European heads of government and state signed the Treaty establishing a Constitution for Europe. This has been ratified by some member states and is currently awaiting ratification by the other states. However, this process faltered on May 29, 2005 when the majority of French voters rejected the constitution in a referendum by 54.7%. The French rejection was followed three days later by a Dutch one on June 1 when in the Netherlands 61.6% of voters refused the constitution as well. The current and future status of the European Union therefore continues to be subject of political controversy, with widely differing views both within and between member states. This debate has gained intensity following the rejection of the constitutional treaty by France and the Netherlands. For example, in the United Kingdom, currently holding the EU presidency, one poll suggested that around 75% of the population are indifferent or opposed to the European Union. However, other countries are more in favour of European integration — soon after the Netherlands and the French voted "no" on the constitution, Luxembourg voted "yes." Current issuesMajor issues currently facing the European Union cover its membership, structure, procedures and policies; they include the adoption, abandonment or adjustment of the new constitutional treaty, the Union's enlargement to the south and east (see below), resolving the Union's problematic fiscal and democratic accountability, and revision of the rules of the Stability and Growth Pact, the future budget and the Common Agricultural Policy. At the next Intergovernmental Conference (IGC), which is a semi-annual meeting of EU member states' heads of state and government, EU member states must decide on how it will allocate the EU budget. Also, here is the issue of the "Financial Perspective", which is renegotiated every seven years. The next Financial Perspective will be for 2007-2013. Issues that will be controversial during upcoming budget debates will be the British rebate, France's benefits from the Common Agricultural Policy, Germany and the Netherlands' large contributions to the EU budget, and reform of the European Regional Development Funds. Many commentators have envisaged these debates to yield a major split between governments such as France and Germany, who call for a broader budget and a more federal union, and governments such as that of the UK, who demand a slimmer budget with more funding transferred to science and research (and whose watchword is modernisation). Turkey on 4 October 2005 furthered its will to enter the European Union, making them the first predominantly Muslim country to open membership talks with the organisation. Many states within the union are wary of this decision, chiefly Austria. Austrian apprehension for Turkey dates back for centuries, leading from the 1683 Battle of Vienna, where the Austrians defeated the Ottoman Turks. Fears of an influx of migration from Turkey into Austria if the country and its 70 million inhabitants are allowed into the union is a heated topic. Others argue that most of the country is on the wrong side of the Bosporus Strait, which many believe to be the dividing line between Europe and Asia. Turkey also refuses to acknowledge any relations with the state of Cyprus since Turkish troops invaded the northern section of the island in 1974 following a coup attempt by Greek ultra-nationalists. Austria has proposed for an esteemed partnership for Turkey which would come short of an actual membership. Turkey rejected that proposal. Other European states claim that denying Turkey to a membership would brew future hostilities with other Muslim nations. Origins and history![]()
Signing ceremony of the Treaty of Rome, 1957
Attempts to unify the disparate nations of Europe precede the modern nation states; they have occurred repeatedly throughout the history of the continent. Three thousand years ago, Europe was dominated by the Celts, and then conquered and ruled by the Merranean centred Roman Empire. These early unions were created by force. The Frankish empire of Charlemagne and the Holy Roman Empire united large areas under a loose administration for hundreds of years. More recently the 1800s customs union under Napoleon and the 1940s conquests of Nazi Germany had only transitory existence. Given Europe's heterogeneous collections of languages and cultures, these attempts usually involved military subjugation of unwilling nations, leading to instability, others have lasted thousands of years and large spells of peace and economical and technological progress as in the Roman Empire's Pax Romana. One of the first proposals for peaceful unification through cooperation and equality of membership was made by the pacifist Victor Hugo in 1851. Following the catastrophes of the First World War and the Second World War, the impetus for the founding of (what was later to become) the European Union greatly increased, driven by the desire to rebuild Europe and to eliminate the possibility of another such war ever arising. This sentiment eventually led to the formation of the European Coal and Steel Community by (West) Germany, France, Italy and the Benelux countries. This was accomplished by the Treaty of Paris, signed in April, 1951, and taking effect in July, 1952. The first full customs union was originally known as the European Economic Community (informally called the Common Market in the UK), established by the Treaty of Rome in 1957 and implemented on 1 January 1958. This later changed to the European Community which is now the "first pillar" of the European Union. The EU has evolved from a trade body into an economic and political partnership. For more details, please see History of the European Union. As president of the Convention on the Future of Europe, the former French president Valéry Giscard d'Estaing proposed to change the name of the European Union to United Europe but it was not adopted. Member states and enlargement
The European Union has 25 member states, an area of 3,892,685 km² and approximately 460 million EU citizens as of December 2004. If it were a country, it would be the seventh largest in the world by area and the third largest by population after China and India. The European Union has land borders with 20 nations and sea borders with 31. See Countries bordering the European Union Map of EU member states, 2007 admissions and candidate countries
![]() Since its inception with six countries, nineteen further states have joined in successive waves of enlargement:
Note:
Overseas territoriesSeveral overseas territories and dependencies have close associations with particular EU member states, for example Greenland, the Isle of Man, the Azores and Madeira. For the status of these and other overseas territories in relation to the EU, see Special member state territories and their relations with the EU. Future enlargement and close relationships
Context – rationale for enlargement and future prospectsSupporters of the European Union argue that the growth of the EU is a force for peace and democracy. They argue that the wars which were a periodic feature of the history of Western Europe have ceased since the formation of the European Economic Community (which later became the EU) in the 1950s. They also claim that in the early 1970s, Greece, Portugal and Spain were all dictatorships, but the desire of the business communities in these three countries to be in the EU created a strong impetus for democracy there. Others argue that peace in Europe since WW2 is more due to other causes, such as the need for a unified response to the threat from the Soviet Union, a need for reconstruction after WW2, and a collective temporary tiring of waging war, and that the dictatorships cited came to an end for totally different reasons. In more recent times, the European Union has been extending its influence to the east. It has accepted several new members that were previously behind the Iron Curtain, and has plans to accept several more in the medium-term. It is hoped that in a similar fashion to the entry of Spain, Portugal and Greece in the 1980s, membership for these states will help cement economic and political stability. Further eastward expansion also has long-term economic benefits, but the remaining European countries are not viewed as currently suitable for membership, especially the troubled economies of countries further east. It is hoped by some that eventual membership of states that are currently politically unstable might help deal with tensions resulting from earlier conflicts such as the Yugoslav wars and the Cyprus dispute, and help avoid such conflict in the future. As the EU continues to enlarge eastward, the candidate countries' accessions tend to grow more controversial. As discussed, the EU has finished accession talks with Bulgaria and Romania, and set an entry date for the two countries in 2007. However, the rejection of the EU Constitution by France and the Netherlands, and the EU's slow economic growth, have cast some doubt on whether the EU will be ready to accept new members in 2007, despite the fact that both Bulgaria and Romania have signed Accession Treaties to join in 2007. A further point of contention for EU members is the accession of Turkey. Accession preliminary talks between Turkey and the EU are due to begin in early October 2005. Turkey's Government, led by Prime Minister Recep Tayyip Erdogan, has enacted many legal reforms to meet the EU's entry requirements. However, some member states, especially Austria 1 repudiate Turkey joining the EU, and the possible economic, immigration and cultural implications that may bring. Institutions and legal frameworkEU institutionsThe functioning of the European Union is supported by several institutions:
There are several financial bodies:
There are also several advisory committees to the institutions:
There are also a great number of bodies, usually set up by secondary legislation, which exist to implement particular policies. These are the agencies of the European Union. Examples are the European Environment Agency, the European Aviation Safety Agency and the Office for Harmonisation in the Internal Market. Lastly, the European Ombudsman investigates complaints of maladministration by EU institutions. Location of EU institutionsThe EU has no official capital and its institutions are divided between several cities:
Legal frameworkEuropean Union law comprises a large number of overlapping legal and institutional structures. This is a result of its being defined by successive international treaties, with each new treaty amending and supplementing earlier onesw/ In recent years, considerable efforts have been made to consolidate and simplify the treaties, culminating with the final draft of the Treaty establishing a Constitution for Europe. If this proposed treaty is adopted, it will replace the set of overlapping treaties that form the current constitution of the EU with a single text. The earliest EU treaty was the Treaty of Paris of 1951 (took effect in 1952) which established the European Coal and Steel Community between an original group of six European countries. This treaty has since expired, its functions taken up by subsequent treaties. On the other hand, the Treaty of Rome of 1957 is still in effect, though much amended since then, most notably by the Maastricht treaty of 1992, which first established the European Union under that name. The most recent amendments to the Treaty of Rome were agreed as part of the Treaty of Accession of the 10 new member states, which entered into force on 1 May 2004. The EU member states have recently agreed to the text of a new constitutional treaty that, if ratified by the member states, would become the first official constitution of the EU, replacing all previous treaties with a single document. Although accepted by many countries, this document was rejected in a French referendum with a 55% majority on May 29th and in the Dutch referendum with a 62% majority on June 1st. If the Constitutional Treaty fails to be ratified by all member states, then it might be necessary to reopen negotiations on it. Most politicians and officials agree that the current pre-Constitution structures are inefficient in the medium term for a union of 25 (and growing) member states. Senior politicians in some member states (notably France) have suggested that if only a few countries fail to ratify the Treaty, then the rest of the Union should proceed without them, possibly creating an "Avant Garde" or Inner Union of more committed member states to proceed with "an ever-deeper, ever-wider union". See also: The role of the European Community within the UnionEuropean Communities: European Community plus Euratom The term European Communities refers collectively to two entities -- the European Economic Community (now called the European Community) and the European Atomic Energy Community (also known as Euratom) -- each founded pursuant to a separate treaty in the 1950s. A third entity, the European Coal and Steel Community, was also part of the European Communities, but ceased to exist in 2003 upon the expiration of its founding treaty. Since 1967, the European Communities have shared common institutions, specifically the Council, the European Parliament, the Commission and the Court of Justice. In 1992, the European Economic Community, which of the three original communities had the broadest scope, was renamed the "European Community" by the Treaty of Maastricht. European Union: European Communities plus CFSP and PJCC The European Communities are one of the three pillars of the European Union, being both the most important pillar and the only one to operate primarily through supranational institutions. The other two "pillars" – Common Foreign and Security Policy, and Police and Judicial Co-operation in Criminal Matters – are looser intergovernmental groupings. Confusingly, these latter two concepts are increasingly administered by the Community (as they are built up from mere concepts to actual practice). Effect of Constitutional Treaty If it is ratified, the proposed new Treaty establishing a Constitution for Europe would abolish the three-pillar structure and, with it, the distinction between the European Union and the European Community, bringing all the Community's activities under the auspices of the European Union and transferring the Community's legal personality to the Union. There is, however, one qualification: it appears that Euratom would remain a distinct entity governed by a separate treaty.
Inter-governmentalism and supra-nationalismA basic tension exists within the European Union between inter-governmentalism and supra-nationalism. Inter-governmentalism is a method of decision-making in international organisations where power is possessed by the member-states and decisions are made by unanimity. Independent appointees of the governments or elected representatives have solely advisory or implementational functions. Inter-governmentalism is used by most international organisations today. An alternative method of decision-making in international organisations is supra-nationalism. In supra-nationalism power is held by independent appointed officials or by representatives elected by the legislatures or people of the member states. Member-state governments still have power, but they must share this power with other actors. Furthermore, decisions are made by majority votes, hence it is possible for a member-state to be forced by the other member-states to implement a decision against its will. Some forces in European Union politics favour the intergovernmental approach, while others favour the supranational path. Supporters of supra-nationalism argue that it allows integration to proceed at a faster pace than would otherwise be possible. Where decisions must be made by governments acting unanimously, decisions can take years to make, if they are ever made. Supporters of inter-governmentalism argue that supra-nationalism is a threat to national sovereignty, and to democracy, claiming that only national governments can possess the necessary democratic legitimacy. Inter-governmentalism is being favoured by more Eurosceptic nations such as the United Kingdom, Denmark and Sweden; while more integrationist nations such as the Benelux countries, France, Germany, and Italy have tended to prefer the supranational approach. The European Union attempts to strike a balance between the two approaches. This balance however is complex, resulting in the often labyrinthine complexity of its decision-making procedures. Starting in March 2002, a Convention on the Future of Europe again looked at this balance, among other things, and proposed changes. These changes were discussed at an Intergovernmental Conference (IGC) in May 2004 and led to the Constitutional Treaty discussed above. Supranationalism is closely related to the inter-governmentalist vs. neofunctionalist debate. This is a debate concerning why the process of integration has taken place at all. Inter-governmentalists argue that the process of EU integration is a result of tough bargaining between states. Neofunctionalism, on the other hand, argues that the supranational institutions themselves have been a driving force behind integration. For further information on this see the page on Neofunctionalism. Main policiesAs the changing name of the European Union (from European Economic Community to European Community to European Union) suggests, it has evolved over time from a primarily economic union to an increasingly political one. This trend is highlighted by the increasing number of policy areas that fall within EU competence: political power has tended to shift upwards from the member states to the EU. This picture of increasing centralisation is counter-balanced by two points. First, some member states have a domestic tradition of strong regional government. This has led to an increased focus on regional policy and the European regions. A Committee of the Regions was established as part of the Treaty of Maastricht. Second, EU policy areas cover a number of different forms of co-operation.
The tension between EU and national (or sub-national) competence is an enduring one in the development of the European Union. (See also Inter-governmentalism vs. Supra-nationalism (above), Euroscepticism.) All prospective members must enact legislation in order to bring them into line with the common European legal framework, known as the Acquis Communautaire. (See also European Free Trade Association (EFTA), European Economic Area (EEA) and Single European Sky.) See table of states participating in some of the initiatives. Single marketMany of the policies of the EU relate in one way or another to the development and maintenance of an effective single market. Significant efforts have been made to create harmonised standards – which are designed to bring economic benefits through creating larger, more efficient markets. The power of the single market reaches beyond the EU borders, because to sell within the EU, it is beneficial to conform to its standards. Once a non-member country's factories, farmers and merchants conform to EU standards, much of the cost of joining the union has already been sunk. At that point, harmonising domestic laws in order to become a full member is relatively painless, and may create more wealth through eliminating the customs costs. The single market has both internal and external aspects: Internal policiesEuro banknotes
External policies
Co-operation and harmonisation in other areas
Economy
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Population and GDP per capita of EU member states and candidates.If considered a single unit, the European Union has the largest economy in the world with a 2004 GDP of 11,723,816 PPPs. The EU economy is expected to grow further over the next decade as more countries join the union - especially considering that the new States are usually poorer than the EU average, and hence the expected fast GDP growth will help achieve the dynamic of the united Europe. However, It is estimated that the Eurozone will only grow around 0.3 per cent (Q2 2005) 1, while other industrialised nations such as the United States is estimated to grow three times as much at around 3.2%. (Q2 2005) 2 Standard of livingBelow is a table and three graphs showing, respectively, the GDP (PPP), the GDP (PPP) per capita and the GDP (nominal) per capita for the European Union and for each of its 25 member states. This can be used as a rough gauge to the relative standards of living among member states. The two future members Bulgaria and Romania are also included in the table. The data set is for the year 2005 and graphs are for the year 2004. All 2005 data are projections. ![]()
GDP (PPP) per capita 2004 showing countries above and below EU average![]()
GDP (PPP), 2004![]()
GDP (PPP) per capita, 2004
Source: CIA World Factbook 2 Comparison with other blocs/countries
During 2003. Cyan for largest value, green for smallest, among the blocs compared. See alsoLists
Other
Partial bibliography
External links and referencesThe European Union On-LineOfficial EU website, europa.eu.int, in the official languages. Some subpages:
Other sites
European Union history
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