The European Union

1. The European Union Robert Harris Eric Jensen Scott Nielsen Clark Carpenter Josh Liljenquist

2. Schuman Declaration: 9 May 1950 On 9 May 1950 Robert Schuman, Minister of Foreign Affairs in the French Government, proposed to Germany that it should join on an equal footing a new body responsible for the joint management of coal and steel. The German Chancellor, Adenauer, gladly accepted: the first step towards the Union of Europe had been taken Robert Schuman, Jean Monnet

3. Timeline of Events • 1951 The European Coal and Steel Community • 1957 The European Economic Community and the European Atomic Energy Community • 1960 European Free Trade Association • 1968 The European Community customs union is completed, removing all customs duties between members of the EC and establishing a common external tariff • 1991 The European Council meets at Maastricht, The Netherlands, and agrees to the Treaty which establishes the European Union • 2002 The euro becomes the official currency of the 12 participating countries; euro coins and bills are issued and the currencies of the 12 states cease to be legal tender

5. The European Union • Standards of Entry • The Euro • Trade Statistics • The Future of the EU

8. Comparison of EU vs. Non-EU Nations

9. Common Side Portugal Holland Spain Ireland Luxembourg Finland France Austria Italy Belgium Greece Germany The Euro Euro coins have one common side, and one country specific side Euro banknotes are identical throughout Europe

10. 12 Members of the Euro 12 of the 15 European Union members have joined together to form a common currency • Belgium • Germany • Greece • Spain • France • Ireland • Italy • Luxembourg • The Netherlands • Austria • Portugal • Finland Denmark, Sweden, and the United Kingdom have not yet joined the Euro

11. European System of Central Banks (ESCB) The ESCB is comprised of the National Central Bank (NCB) from each country, and the European Central Bank (ECB) These banks all working together is called the Eurosystem • The Eurosystem's primary objective is maintaining price stability. • It meets its objectives through: • Deciding and implementing monetary policy; • Conducting foreign exchange operations; and • Operating payment systems. • The NCBs of the participating Member States played a key role in the smooth transition • to the euro. • Their responsibilities have included: • Introducing the euro in their respective countries; • Managing the changeover from national currencies to the euro; • Creating the necessary systems to effectively circulate the euro banknotes and coins; • Withdrawing national currencies; and • Providing advice about and promoting the use of the euro

12. Pros and Cons of a Single Monetary System • Consumer Pros • Allows easier price comparison between countries, making it difficult for companies to charge artificially higher prices • Travelers to not have to exchange money in traveling from one country to another in the Euro • Through a single market, competition will rise, lowering prices across Europe • Consumer Cons • For consumers in a country with a comparative advantage, the price of goods may rise, and since the average consumer is still more likely to purchase goods from his or her local market, they will be paying a higher price • Not all prices will lower to an equilibrium price across Europe because many prices are based on level of taxation, and the costs of labor, transportation, and property which still differ among countries • Since retailers will have to convert all their prices from their old currency to the new Euro currency, Some retailers will be enticed to round-up prices at the implementing of the Euro

13. Pros and Cons of a Single Monetary System • Business Pros • Trade among countries is stimulated due to lack of tariffs and exchange rates • With no Exchange rate to worry about, many potential problems are eliminated such as the possible raising of an exchange rate from the time a business signs for a deal, and when the deal is completed and the money transferred • Cross-Boarder investments will increase along with multinational mergers and acquisitions • Business Cons • Small businesses that do business only in its country end up paying a lot of money converting to the new monetary system (ie. accounting/payroll systems), but reap no benefits of the free trade since they don’t trade

14. To insert your company logo on this slide • From the Insert Menu • Select “Picture” • Locate your logo file • Click OK • To resize the logo • Click anywhere inside the logo. The boxes that appear outside the logo are known as “resize handles.” • Use these to resize the object. • If you hold down the shift key before using the resize handles, you will maintain the proportions of the object you wish to resize. E.U. Trade Statistics and Rows with the U.S. • The statistics are designed to give an idea of E.U. trade output and E.U. trading power. • The trade disputes with the U.S. show some of the "rough spots" in E.U. trading history, but do not include major disputes between the E.U. and other countries.

15. September 2003 $10.1 Billion US September 2002 $10.94 Billion US August 2003 $8.92 Billion US August 2002 $10.1 Billion US E.U. Trade Surplus With World

16. Trade and Investment

17. EU/US/World Trade

18. Key 2001 Statistics

19. Trade Area Chart

20. Trade Area Comparisons(2001)

21. Population and GDP, 2001

22. Import Comparisons, 2001

23. Export Comparisons, 2001

24. Totals, 2001

25. E.U. disputes with U.S.

26. U.S. disputes with E.U.

27. U.S. disputes with EU (cont’d)

28. Benefits of Enlargement • “Enlargement is one of the most important opportunities for the European Union at the beginning of the 21st century. It is a unique, historic task to further the integration of the continent by peaceful means, extending a zone of stability and prosperity to new members.

29. Benefits of Enlargement • Third countries will significantly benefit from an enlarged union • Single set of trade rules • Single tariff • Single set of administrative procedure. This will simplify dealings for third-country operators within Europe and improve conditions for investment and trade.

30. Benefits of Enlargement • Political • Economic • Cultural

31. Political • The extension of the zone of peace, stability, and prosperity in Europe will enhance the security of all peoples.

32. Economic • The addition of more than 100 million people, in rapidly growing economies, to the EU’s market of 370 million will boost economic growth and create jobs in both old and new member states • There will be a better quality of life for citizens throughout Europe.

33. Cultural • The arrival of new members will enrich the EU through increased cultural diversity, interchange of ideas, and better understanding of other peoples.

34. Other Benefits • Enlargement will strengthen the Union’s role in world affairs • Foreign and security policy • Trade policy • Global governance

35. Benefits of Enlargement • Other benefits are already visible • Stable democracies • Increased respect for minorities • Economic growth • Growing trade (€ 17 Billion trade surplus in 2000) • Higher employment

36. Costs of Non-Enlargement • Lower economic growth • Weaken the incentive for economic reform. • Create political instability • Less able to combat problems • Disillusion

37. “The Europeans will be saved if they are aware of their solidarity in the face of a common danger ... the current fears will be the immediate cause of European unification, but not its raison d'être. Depending on the circumstances surrounding its creation, Europe will be more or less complete. Will it ever be complete? No-one can say. This is not a reason for delaying the effort to achieve unification. Action is better than resignation and the desire for perfection is a poor excuse for inaction.” -Robert Schuman The European Union