The European Community

THE EUROPEAN UNION AND THE EURO

History

The European Economic Community was born in Rome in 1957.

Six European countries (Italy, France, Luxembourg, Belgium, Holland, West Germany) agreed to cooperate to facilitate trade. They wanted to abolish duties inside the Community, to protect their economic interests and to help with funds in agricultural and industrial fields.

In the following years other countries entered the Community:

Great Britain, Ireland and Denmark (1973)

Greece (1981)

Spain and Portugal (1986),

other countries in the 1990s.

In 1993, with the ratification of the Treaty of Maastricht, the EC became the EU (European Union), an economic and political confederation of European nations and other organizations that are responsible for a common foreign and security policy and for co-operation on justice and home affairs. Fifteen countries - Austria, Belgium, Denmark, Finland, France, Germany,Great Britain, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain and Sweden– are full members of the organizations.

The European Monetary System is an arrangement by which most nations of the EU linked their currencies to prevent large fluctuations. It was organized in 1979.

In 1994 The European Monetary Institute was created as transitional step in establishing the European Central Bank (ECB) and a common currency.

Late in 1998, Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain prepared the way for a unified currency. The introduction of the euro was seen as the most important step towards European political unity. The European Currency Unit (ECU), which was established in 1979, was the forerunner of the euro.

The European Union members that don’t adopt the euro are Denmark, Great Britain and Sweden.

Among members not adopting the euro perhaps the most notable is Britain. However, British Prime Minister Tony Blair announced plans to consider adopting the euro in 2002-2005.

Fino qui è da sapere bene tutto.

Nel foglio successivo ho evidenziato le cose più importanti da dire perché ho temuto che per qualcuno fosse troppo complesso.

Why is Britain so reluctant to participate the euro?

British experience as for the currency differs from that of most other countries in Europe.

England has had a relatively stable single national currency with an unbroken history of over 900 years, and the origin of the pound Sterling go back even further still.

In 928 it was decided that there had to be one single type of money in England, and ever since there has been just one. This was many centuries before the history of the currencies now used in other major European countries started.

England became the first major countries of Europe to have a single national currency in post-Roman times, even if this event was interrupted by the invasion of Danes. However, England preceded France by more than 600 years, and Germany and Italy by nearly 900 years. This could be a factor that affects Britain’s decision not to join the European currency.

Most European countries, have often had to carry out changes which have drastically altered their internal currencies. On the contrary, the pound as a unit of account has never had to be replaced by a “new pound” in 1,300 years. Germany, for example, has had the Reichsmark, Rentenmark, Ostmark and Deutschmark, to mention only some of the more modern changes.

The pound sterling had a long era of supremacy over other countries.

With Britain’s head start in the Industrial Revolution, developments in banking, her victory over her most powerful rival in the Napoleonic Wars, and the spread of the British empire during the 19th century, the pound sterling became the world’s most important currency..

It was after the Second World War that the US dollar become the “boss” of the financial system. Other currencies, including the pound sterling, fixed their value against the US dollar.

The USA entered the new millennium in a position of apparently unprecedented strength. However, the start of the new millennium also heralded the birth of a currency that could possibly challenge the global supremacy of the US dollar.

In a few words the euro challenges (sfida) Britain, which declined the chance to participate in his birth.

If the euro is a success, it might signal the end of the pound sterling, a currency with one thousand years of continuous history. But first the Euro will have to survive its own challenges.

EUROPHILES AND EUROSKEPTICS

Within the various state members there are obviously people who believe in the union (Europhiles) and people who are against it (Euroskeptics). These latter mostly think of unemployment and fear that people coming from other countries can “steal” them job.

The Union will most probably enlarge in the near future. Today there are 12 formal applicant countries, that is to say countries that are going to reach the requested standards to enter, plus Turkey which, up to this moment, doesn’t even has the standards concerning human rights.

As far as immigration is concerned, during the past ten years people have come to Western Europe from Eastern Europe, North Africa, Central Asiaand even from China. Each year 2,5 million people come to Europe, half of which illegally. They are attracted by prosperity and by the granting of Human Rights.

The Union is surely a great event and the hope of everybody is that it will bring to a lasting peace.

FOR CENTURIES PEOPLE (Napoleon, Hitler) HAVE TRIED TO BUILD ONE EUROPE WITH FORCE, NOW IT’S A FREE CHOICE. MAYBE THERE WON’T BE WAR ANYMORE.

INITIAL PURPOSES:

- abolish duties inside the community

- protection of economic market

- help with funds in agricultural and industrial fields.

INSTITUTIONS:

1. EUROPEAN COUNCIL (gives general guidelines)

- composed of Heads of States

- meet at least twice a year

- purpose: discuss questions of the Community and foreign policy

2. EUROPEAN COMMISSION (initiator and executive)

- composed of 17 members :2 for Italy, France, Germany, Spain, Britain; 1 for the others

(appointed for 4 years by single governments).

- TASKS:

- control the observation of the Community rules.

It can decide fines either for - individuals or companies

or for - Member States.

- propose to the Council actions for the development (in agriculture, industry,

energy, environment,...)

- put into practice the decisions of the Council

- negotiate trade agreement with non-member countries (according to instructions

received by the Council)

- meeting place: mainly Brussels.

3. THE EUROPEAN PARLIAMENT (democracy at work)

- elected by universal suffrage.

- composed of 518 members elected every 5 years.

- they sit in political groups (and not according to their nationality)

- meeting places: Strasbourg/Brussels.

- TASKS:

- give opinion on proposals from the European Commision and propose amendments

- approve or reject international agreements prepared by th Commision

- adopt or reject the Community's budget

4. COUNCIL OF MINISTERS -----> decision maker

- formed by Ministers from each MemberState

- responsible for the major policy decisions.

- the PRESIDENT is each MemberState for six months in rotation

- meetings are attended by the competent Ministers according to the matters that have to be

discussed.

- meeting places: Brussel/Luxembourg

- examine the proposals from the Commision and accept or modify them (by unanimous

agreement).

5. COURT OF JUSTICE

- meeting place: Luxembourg

- composed of 13 judjes

- FUNCTIONS:

- annul decisions taken against the Community law

- solve complaints between the States or betw. individuals and the Community.

6. COURT OF AUDITORS

- 12 members, in charge for six years appointed by the Council of Ministers.

- check the money spent for the financial management.

5. COURT OF JUSTICE

- meeting place: Luxembourg

- composed of 13 judjes

- FUNCTIONS:

- annul decisions taken against the Community law

- solve complaints between the States or betw. individuals and the Community.

6. COURT OF AUDITORS

- 12 members, in charge for six years appointed by the Council of Ministers.

- check the money spent for the financial management.

5. COURT OF JUSTICE

- meeting place: Luxembourg

- composed of 13 judjes

- FUNCTIONS:

- annul decisions taken against the Community law

- solve complaints between the States or betw. individuals and the Community.

6. COURT OF AUDITORS

- 12 members, in charge for six years appointed by the Council of Ministers.

- check the money spent for the financial management.

The Union is surely a great event and the hope of everybody is that it will bring to a lasting peace.

FOR CENTURIES PEOPLE (Napoleon, Hitler) HAVE TRIED TO BUILD ONE EUROPE WITH FORCE, NOW IT’S A FREE CHOICE. MAYBE THERE WON’T BE WAR ANYMORE.

The Union is surely a great event and the hope of everybody is that it will bring to a lasting peace.

FOR CENTURIES PEOPLE (Napoleon, Hitler) HAVE TRIED TO BUILD ONE EUROPE WITH FORCE, NOW IT’S A FREE CHOICE. MAYBE THERE WON’T BE WAR ANYMORE.

The Union is surely a great event and the hope of everybody is that it will bring to a lasting peace.

FOR CENTURIES PEOPLE (Napoleon, Hitler) HAVE TRIED TO BUILD ONE EUROPE WITH FORCE, NOW IT’S A FREE CHOICE. MAYBE THERE WON’T BE WAR ANYMORE.

THE EUROPEAN UNION

1957 / Rome Treaty EEC
- abolish duties inside the community
- protection of economic market
- help with funds in agricultural and industrial fields.
1973 / United Kingdom – Denmark – Ireland
1981 / Greece
1985 / Shengen TreatyBelgium, FranceGermany, Luxembourg, Holland
-remove borders’ controls at roads and airports
-free circulation of people
-NO: UK + Ireland
-YES: Norway + Iceland
1986 / Spain, Portugal
1992 / Maarstricht Treaty -> European Union
-from economic to political union
-standardisation of labour laws and workers’ rights
-foundation of centralised banking system
-adoption of standard tax rates
-free movement of people (travel, reside, study, work)
-abolition of trade restrictions
-decision to introduce a single currency (Monetary Union)
1995 / Austria, Finland, Sweden
1997 /

Amsterdam Treaty

-greater judicial cooperation (working together on the status of refugees, combating terrorism and drug-trafficking)
-coordination of strategies on employment
-individual rights (combating discrimination, poverty and social exclusion, eliminating inequalities betw. Men and women)
1999 / 11 EU countries (NO UK, Sweden and Denmark) form the EMU (Economic and Monetary Union) and start using the EURO
(la Grecia non ha i parametri)
2002 / Introduction of EURO banknotes and coins

THE MAIN STAGES OF THE EU'S FIFTH ENLARGEMENT

19 December 1989: the EU sets up a programme known as Phare, for providing financial and technical assistance to the countries of central and eastern Europe.
3 and 16 July 1990: Cyprus and Malta apply for EU membership.
22 June 1993: the Copenhagen European Council lays down the criteria for joining the European Union.
31 March and 5 April 1994: Hungary and Poland apply for EU membership.
1995: applications received from Slovakia, Romania, Latvia, Estonia, Lithuaniaand Bulgaria.
1996: applications received from the CzechRepublicand Slovenia.
12-13 December 1997: the Luxembourg European Council decides to launch the enlargement process.
10-11 December 1999:the Helsinki European Council confirms that accession talks will be held with 12 candidate countries. Turkey is considered to be a candidate country "destined to join the Union".
13 December 2002: the EU reaches agreement with 10 candidate countries that they can join on 1 May 2004.
16 April 2003: the 10 accession treaties are signed in Athens.
1 May 2004: the 10 new member states join the EU.
December 2004: decision on whether to start accession talks with Turkey.
2007: the year set by the Copenhagen European Council for Bulgaria and Romania to become EU members.