Economic Integration

d) Treaty of Maastricht (1992)

• d) Treaty of Maastricht (1992)
• Creation of the Economic and Monetary Union EMU (12 members)
• UK, Denmark and Sweden opted out
• Establishment of European Central Bank on July 1998
• Main task is to maintain the euro’s purchasing power and the price stability in the euro area.
• Introduction of a common currency, euro on Jan. 1, 1999
• Circulation of euro on Jan 1, 2002
• e) The Treaty of Accession 2003
• 10 more countries became members of the EU 5/1/2004
• Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia
• f) On October 29, 2004 European heads of state signed a treaty establishing the first constitution for the European Union in Rome requires approval in national referenda.
• defeat in France and Dutch referenda in 2005 caused suspension of the ratification process
• g) 2007 Bulgaria and Romania became members of the EU.
• h) The Lisbon Treaty (2007) which after the rejection of the Constitution (the constitution attempted to replace all earlier EU treaties) for Europe modified the existing treaties, enhancing the efficiency of the decision making process and democratic participation in a Union of 27 Member States.

2007 EU USA

• 2007 EU USA
• Population 494 mln 303 mln
• Territory 4.3 mln sq km 9.6 mln sq.km
• 1.7 mln sq mi 3.7 mln sq mi
• Density 114/sq km 31/sq km

Organization of European Union

• Organization of European Union
• European Council (European summit)
• Is a meting of the heads of state and the president of the European Commission, Brussels, 4 times a year.
• b) European Commission is the executive body of the EU.
• Located in Brussels
• administrative body of 27 members (4-year terms)
• Each commissioner takes responsibility for a particular area of policy
• The commission is headed by a president Jose Manuel Barroso of Portugal in 2009 reelected for 5 more years.
• Unlike the Council of the EU, the Commission is intended to be a body independent of member states. Commissioners are not permitted to take instructions from the government of the country that appointed them, but are suppose to represent the interests of the citizens of the EU as a whole.
• Primary role is to propose and enact legislation, and to act as “guardian of the treaties” which provide the legal basis for the EU; and implementing policies
• c) European Parliament—Strasbourg, France
• 785 members elected according to population distribution
• Legislative body
• able to accept, amend or reject proposals for regulation, directives, decisions, recommendations, but final decision by Council of Ministers.
• Control over budget (adopting the final budget of the EU) and supervision of the Commission