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Brief history of post-WWII European integration

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Brief history of post-WWII European integration Prof. Marquis Lecture of 31 March 214 University of Verona 2. The TEU launched the Economic and Monetary Union (EMU) t ... – PowerPoint PPT presentation

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Title: Brief history of post-WWII European integration


1
Brief history of post-WWII European integration
  • Prof. Marquis
  • Lecture of 31 March 214
  • University of Verona

2
Outline
  • Today some history
  • 1950s gtgt Treaty establishing the EEC
  • 1960s gtgt The rise of intergovernmentalism
  • 1970s gtgt Economic crisis and policy
    stagnation
  • 1980s gtgt La rilancia
  • 1990s gtgt Toward European Union
  • 2000s gtgt The rise and fall of a
    constitution
  • t
  • Tomorrow finish history, then the EU
    institutions
  • The institutions of the EU as defined by the
    Treaty of Lisbon

3
Ragazzi non provare a scrivere tutto Andro
troppo veloce!Avrete comunque gli slide, quindi
Tranquillo!
4
1950s Treaty establishing the EEC
5
60 years ago...The story of European union
began with an important initial success followed
by aspectacular failure
6
Before the Treaty of Rome
  • Monnet (1888-79) and Schuman launched Europe
    with the Treaty establishing the Coal and Steel
    Community (ECSC Treaty)
  • t
  • Singed 18 April 1951. Effective 24 July 1952
  • Also called the Treaty of Paris
  • Expired in 2002
  • t
  • ECSC established new institutions
  • High Authority
  • European Court of Justice (ECJ)
  • T
  • But what was the purpose of this Treaty?

7
  • Coal and steel gtgt tanks, artillery, aerial
    bombers
  • t
  • ECSC was a way to retain some control of West
    German coal and steel
  • t
  • In view of the expectation that W Germany would
    in a few years regain its sovereignty (which it
    did in 1955)
  • t
  • But Monnet saw it as cooperation in one sector
    that would expand to cooperation in all sectors
  • LEurope des petits pas
  • And driven by a vision of a federal Europe
  • Because states in a federation do not war against
    each other

8
But then, the first crisis of European
integrationThe European Defence Community
9
  • Oct. 1950 French P.M. Pleven proposed the
    establishment of a European Defence Community
    (EDC)
  • t
  • With the Soviets next door, and with the Korean
    war breaking out, security was a top priority
  • t
  • So Integrate the armed forces of all NATO
    members, including those of West Germany, and
    place them all under the command of a European
    Minister of Defence
  • t
  • The EDC almost became a reality...

10
  • EDC Treaty signed by the Six govts. in May 1952
  • t
  • Thanks to P.M. Spaak, EDC was not limited to
    military integration
  • t
  • Also provided for political union in an attached
    Treaty establishing a European Political
    Community (EPC)
  • t
  • i. economic integration (customs union)
  • t
  • ii. federal decision-making institutions,
    including a Parliament with strong powers
  • t
  • iii. commitment to human rights protection

11
  • French rebellion Treaty ratified in D and
    BNLX... But the Assemblée Nationale rejected the
    text on 30.08.54. Why?
  • t
  • French army was in Indochina (1946-54) so a
    European Army implied a largely German Army
  • t
  • And the Right (the Gaullists) opposed the
    transfer of French sovereignty to supranational
    institutions
  • t
  • Già nel 1954 a clash between supranationalism
    and the Souverainistes
  • t
  • A recurring theme in EU history

12
  • But in June 1955, the Six were in Messina to
    negotiate a new Treaty
  • t
  • Impetus from BNLX, esp. Wim Beyen, Dutch MFA
  • He proposed a customs union (BNLX since 44)
  • t
  • But the failure of EDC/EPC had a profound effect
  • For the Europeans, best strategy was to limit
    the scope of the project to the economic sphere
  • t
  • But the ultimate goal was to move beyond economic
    integration
  • Ernst Haas (IR scholar), Jean Monnet concept of
    spillover (Neofunctionalism)

13
Beyen Plan and Messina Conference lead to the
EEC
14
  • At Messina, Spaak was appointed to study the
    possible avenues of integration
  • t
  • Spaak Report (21.04.56 presented to the MS of
    the ECSC)
  • Identified a need to create a common market
    among the Six
  • t
  • Furnished the basis for further negotiations
    among the FMs, and an intergovernmental
    conference (IGC) was launched

15
  • The FMs accepted the Spaak Report in Venice in
    May 1956
  • Then Spaak and committees started drafting
  • t
  • ... and in Rome, on 25.03.57, the Six signed two
    Treaties of Rome
  • t
  • The Treaty establishing a European Economic
    Community (EEC Treaty) and
  • The Euratom Treaty
  • Of special interest to France, dealing with
  • Trade in supplies of fissile materials like
    uranium and plutonium
  • Safety and operations of nuclear power plants

16
  • Preamble (EEC) The founders of the Community
    resolve to preserve and strengthen peace and
    liberty
  • So integration as a means of avoiding renewed
    conflict
  • t
  • Called for
  • an improvement of living and working conditions
    in the EEC and
  • a progressive abolition of trade barriers
  • t
  • And established numerous principles and
    mechanisms

17
  • creation of a common market
  • adoption of common policies (CAP, transport)
  • elimination of internal customs duties and
    quantitative restrictions
  • free movement of goods, services, workers
    capital
  • assurance of undistorted competition
  • establishment of a common commercial policy
  • promotion of coordination of policies regarding
    employment, the environment, the competitiveness
    of industry, and RD
  • eradication of discrimination on the basis of
    nationality
  • i.e., for those coming from the Six

18
  • Legislation in relation to economic integration
    the EEC Treaty (like the ECSC) provided for
    supranationalist legislative procedures
  • t
  • Commission proposes legislation for the Council
    to consider
  • t
  • Votes of the MS were weighted so that those of
    FR, D and IT counted for more than those of BNLX.
    This was the original definition of Qualified
    Majority Voting (QMV)
  • t
  • QMV implies a partial surrender of sovereignty
  • t
  • But in non-economic areas, MS retained their
    veto
  • t
  • Es. Taxation or migration of labor, etc.

19
  • EEC Treaty entered into force on 01.01.58
  • t
  • In those days, the MS would not have imagined
    putting that Treaty to a popular vote
  • t
  • The Treaty was concluded for an unlimited period
    of time
  • t
  • But has been modified many times
  • t
  • Today we call it the Treaty on the Functioning of
    the European Union (the TFEU)
  • Or in Italian the TFUE
  • last amended 2009

20
1960s The rise of intergovernmentalism
21
  • President De Gaulle (1959-69) held Monnet (who,
    as first President of the High Authority,
    represented supranationalism) in contempt
  • Favored increased funds for the CAP, but opposed
    any strengthening of the Communitys institutions
  • July 1965 when the Council met no France!
    (the empty chair crisis)
  • A crisis about who really had sovereign powers
  • France no longer accepted decisions of the
    Council on the basis of QMV
  • De Gaulle saw the Community as an international
    organization acting as an agent for its
    principals
  • Each principal should have the right to veto any
    Community initiatives

22
  • Compromise finally reached in LUX, 29 Jan 1966.
    According to the Luxembourg Accord
  • t
  • When very important interests of a MS were at
    stake, the MS would ignore the QMV rule and seek
    to reach a solution acceptable to all of the MS
  • t
  • De facto, this become a rule of unanimous voting
  • This is the essence of intergovernmentalism
  • t
  • LUX Accord gtgt slow positive integration in the
    1970s and early 1980s

23
1970sEconomic crisis and policy stagnation
24
  • In the 1970s, the problem was Eurosclerosis
    (stagnation)
  • t
  • Following the EECs establishment of a customs
    union in 1968, it was difficult for the Community
    to advance any farther (3 problems)
  • t
  • 1. The essential problem was gridlock
    (bloccaggio) in the Councils decision-making
  • t
  • The gridlock resulted from a compromise made in
    1966, leading to a de facto veto for the MS

25
  • 2. Another factor slowing down legislation
    Council tended to refer decisions to the HSG.
    But HSG only met twice a year not very efficient
  • t
  • 3. In the 1970s, a number of events shifted
    attention toward domestic problems
  • t
  • OPEC raised oil prices, exacerbated a more
    general energy crisis
  • Productivity was sluggish, and labor costs were
    increasing
  • Some European producers were at a competitive
    disadvantage compared to their rivals in the US
    and Japan
  • So MS resorted increasingly to NTBst
  • t
  • In general, lack of vision for the EEC

26
1980s il Rilancio.Completing the internal
market(Objectif 1992)
27
  • 1970s and early 1980s, European producers
    (different ones) were distressed
  • t
  • NTBs and fragmented markets made it difficult for
    them to profit from economies of scale
  • So business groups in Europe tried to stimulate
    more liberalized trade in goods and services
  • t
  • Ad es. the CEOs of Philips and Volvo set up the
    Roundtable of European Industrialists in 1983
  • t
  • Dekker produced a proposal for the creation of a
    common market

28
  • Then an official report by Lord Cockfield
    (Commissioner for the Internal Market, 1985-89 )
    in June of 1985
  • t
  • The Cockfield Report set out a detailed plan for
    the completion of the common market by 1992
  • t
  • The plan included proposals for 282 new pieces of
    legislation to harmonize national laws and to
    reduce or eliminate NTBs
  • t
  • All of this was to be accomplished within 6 or 7
    years

29
  • But the 282 proposals faced the obstacle of
    unanimous voting in the Council
  • t
  • So in late 1985 and early 1986, the MS began to
    negotiate the first significant revision of the
    (30 year-old) EEC Treaty
  • t
  • The Single European Act (SEA / Ehlermann) was
    signed in February of 1986, and entered into
    force on 01.07.87
  • t
  • SEA increased the scope for QMV (except tax,
    labor..)
  • In effect, abolished the de facto vetos of the MS
    (thus overturning the formally illegal Luxembourg
    Accord )
  • ... e poi ...

30
  • SEA institutional reforms
  • t
  • 1. The European Council
  • Recognized for the first time, but nothing said
    about its functions
  • t
  • 2. The Assembly formally became the Parliament
  • t
  • 3. (de facto) The Commission became more more
    important as a driver of the legislation
    necessary to complete the common market
  • t
  • So after 20 years, the Community returned to an
    ethos of supranationalism and integration

31
In the new favorable environment, why not go
further with the political dimension?1990s
Toward European Union
32
  • European Council met in Maastricht in Dec 1991
    and agreed a Treaty on European Union (TEU)
  • t
  • Signed in Feb 1992, took effect on 01.11.93
  • t
  • But the Union did not replace the Community!
  • t
  • Union co-existed with the Community and shared
    the same institutional structure
  • t
  • But it operated through different decision-making
    procedures
  • t
  • 4 notes about significance of the TEU...

33
  • 1. Created a 3-pillar (3 pilastri) structure
  • I. the three Communities (the EC, the ECSC, and
    Euratom)
  • II. Common Foreign and Security Policy (CFSP)
  • III. Justice and Home Affairs
  • Police and judicial cooperation on crime,
  • Visas, asylum, border controls, etc. (the
    Schengen Acquis)
  • Today, JHA commonly called Freedom, Security
    Justice
  • PILLAR STRUCTURE ABOLISHED in 2009

34
  • 2. The TEU launched the Economic and Monetary
    Union (EMU)
  • t
  • In 2002, Euro became the single currency for 12
    of 15 MS (today 18 of 28)
  • t
  • Politically, EMU was extremely delicate
  • t
  • Giving up a national currency and monetary
    control (above all, the DM) was a significant
    surrender of political sovereignty
  • t
  • Reflected by the opt-outs granted to the UK and
    Denmark

35
  • 3. Enhanced the role of the Parliament (EP)
  • Before Maastricht, EP was weak. Merely advised
    and passed resolutions
  • t
  • Critics often spoke/speak of a democratic deficit
  • t
  • Majone responded with arguments of output
    legitimacy
  • Another response is are we sure the committee
    work of national parliaments is democratic?
  • t
  • Maastricht did not make the EP co-equal with
    Council but it finally made the EP a legislator
  • t
  • Specifically, it established the co-decision
    procedure (today called the Ordinary
    Legislative Procedure)

36
  • Co-decision Commission proposes / approved by
    both the Council and the EP
  • Council and the EP each had/have a veto
  • t
  • TEU introduced the co-decision procedure for
  • t
  • Measures relating to the internal market
  • Environmental protection
  • RD
  • Some aspects of public health
  • Consumer protection
  • Education and Culture
  • t
  • So at Maastricht the competences of the Community
    grew to cover many more policy fields
  • This probably contributed to the 4th point, cioe
    ...

37
  • 4. Maastricht also introduced a new veto player
    the citizens of the MS
  • t
  • When the EU modifies its Treaties, each MS must
    ratify the new agreement in accordance with its
    constitutional requirements
  • t
  • In Denmark, when the people were asked, they said
    Nay! (51, June 1992)
  • t
  • So this was the first referendum crisis (end of
    the era of permissive consensus)
  • t
  • But the Danes eventually accepted the Treaty in a
    second referendum (57, May 1993)

38
Treaty of Amsterdam (1997, effective 1999)
39
  • SEA and TEU Treaty revisions happened within just
    5 years of each other. After the TEU the pace of
    Treaty reform in fact accelerated
  • t
  • Already in 1996, diplomats began discussing new
    reforms in the context of an Intergovernmental
    Conference (IGC) in Torino
  • t
  • The basic goal was to make changes necessary to
    accomodate the next (fifth) enlargement
  • i.e., the let the former Soviet States (Czech,
    Hungary, Poland, Baltic States, etc.) into the
    EU

40
  • Following IGC of 1996, the MS signed Treaty of
    Amsterdam on 2 Oct 1997, entered into force on 1
    May 1999
  • t
  • The Treaty was supposed to introduce
    institutional reforms to improve the ability of
    the EU to cope with a larger membership
  • But these issues were too controversial and had
    to be postponed
  • t
  • Called the Amsterdam leftovers

41
2000s The rise and fall of a Constitution
42
  • Another IGC in 2000 gtgt Treaty of Nice, Feb 2001
  • Mainly noteworthy for two things
  • t
  • 1. Re-defined QMV in a way that gave
    disproportionate power to Spain, Poland, France,
    etc. -- at the expense of Germany.
    Unsustainable.
  • t
  • 2. Treaty stopped in June 2001 by Irish voters
    (54 rejection)
  • t
  • Ireland had to hold a second referendum in
    October 2002 accepted by 63

43
  • Then Laeken Summit, Dec. 2001. European Council
    called for a convention to consider EUs future
    development, e.g.
  • Simplification of the Treaties
  • Greater democracy, transparency and efficiency
    in the Union
  • The Convention worked in 2002-03 and, in June
    2003, produced a draft Treaty establishing a
    Constitution for Europe
  • Submitted to the European Council in the summer
    of 2003

44
  • IGC of 2004 adopted a draft Constitutional
    Treaty not too different from the text prepared
    by the Convention
  • Signed 29 October 2004 in the Campidoglio
  • Was supposed to enter into force on 1 November
    2006
  • By mid-May of 2005 the CT had been ratified by 9
    MS
  • But in May and June, rejected in France (55) and
    Netherlands (62)
  • Dutch vote largely to protest against unpopular
    politicians
  • But French vote was a deliberate rejection

45
  • So another referendum crisis, like Maastricht
    and Nice
  • In June 2007, the European Council decided to
    abandon the project of a Constitution
  • Launched another IGC, but removing the rhetoric
    and symbols of a constitution
  • But the final text, signed in December 2007 in
    Lisbon, did not deviate radically from the text
    of 2004
  • (French, Dutch voters not given another chance to
    vote)
  • t
  • But uh oh! The Irish voters had to approve it!

46
  • Did the Irish voters approve it?
  • The Irish voters did not approve it!
  • Rejected in June 2008 (53)
  • Second Irish referendum in October 2009, with a
    strong yes (67)
  • So 8 years after the Laeken Declaration, the
    Lisbon Treaty finally entered into force on 1
    December 2009
  • Attention The EU is not governed by a single
    Treaty of Lisbon

47
  • ToL amended the EC Treaty (now TFEU) and the TEU
  • So there are STILL TWO MAIN TREATIES
  • 1. the TEU establishes the institutional
    framework and foundational principles
  • 2. the TFEU is a more detailed legal instrument
    aimed, inter alia, to establish a common market
  • N.B. Both Treaties of equal rank
  • And other important instruments too, such as the
    EU Charter of Fundamental Rights
  • Now binding primary law (but general
    principles and ECHR already applied before)
  • Binds the EU institutions and MS when they
    implement EU law or act within its scope

48
  • Main impact of the Treaty concerns institutional
    reform (tomorrow)
  • Is the Lisbon Treaty sufficient for the EU?
  • A far-reaching Treaty revision seems unlikely for
    now many MS and key figures and institutions
    suffer from Treaty fatigue
  • But few people were fully content with the ToL
  • For example, many felt the EU was ill-equipped to
    deal with macroeconomic problems
  • And a micro-Treaty entered into force in 2013
    with the aim of addressing the sovereign debt
    crisis (IRE, PRT, GRC) and achieving greater
    financial stability

49
2013 Fiscal Compact
  • Treaty on Stability, Coordination and Governance
    in the Economic and Monetary Union (the TSCG)
  • t
  • Entered into force, 01.01.13 for 16 MS, incl.
    Italy
  • Applies mostly to Eurozone countries (plus DMK)
  • The point of the Treaty is greater fiscal
    discipline to avoid repeats of the debt crisis

50
  • A MS of the Fiscal Compact is required to adopt a
    domestic law establishing an almost-balanced
    budget
  • This means mandatory limits (caps) on deficits,
    under the monitoring of a fiscal advisory council
  • t
  • The technical part General budget deficit must
    be less than 3 of GDP (PIL) and the
  • Structural deficit (SD i.e., ignoring the
    cyclical shortfalls in revenue) must be less than
  • 1 of GDP if the debt-to-GDP ratio is
    significantly below 60 - or,
  • for countries deeper in debt, the SD must be
    below 0.5 of GDP

51
TomorrowEU institutions under the Treaty of
Lisbon
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