European Union Intro Tomas Cahlik

1. European Union IntroTomas Cahlik

2. Outline Deepening Enlargement Transition in the Central and East European Countries EU Development since 1990s US – EU – EMU – Japan

3. Since WWII, two basic processes have been forming Europe: • EU Deepening • EU Enlargement

4. EU Deepening: • From the Sectoral Integration in the European Coal and Steel Community (ECSC) and Euratom to: • Free Trade Area • Customs Union • Common Market (1992 ?) • Full Economic Intergration (Eurozone 2002 ?) • Full Political Integration ?

5. Introduction • EU Enlargement: • 1957: six founding members: Belgium, France, Germany, Italy, Luxembourg and the Netherlands • 1973: Denmark, Ireland and the United Kingdom • 1981: Greece • 1986: Portugal and Spain • 1995: Austria, Finland and Sweden • 2004: 8 former socialist countries + Cyprus and Malta • 2007: Romania, Bulgaria • Farther countries are on the waiting list

6. Since 1989, the third process has added: • The Transition of Central and East European Countries (CEECc) from totalitarian dictatorships to liberal democracies

7. Transition in the CEECs • How it started? • The Collapse of the Soviet Union (as a fundamental change in external conditions) + • The Support of Population Opened the Window of Opportunity for • The Leading Forces to remove the communist leaders

8. EU Development since 1990s In the 1st half of the 90s, EU slowly accepted the idea for the eastern enlargement Geo-political costs and benefits Economic costs and benefits Normative costs and benefits Enthusiasm for joining the EU was higher in the CEECs in that time

9. EU Development since 1990s EU policies have always been reflecting and influencing the processes of enlargement and deepening Analyses of changes in EU policies gives us the basic information about those processes themselves

10. EU Development since 1990s EU External Policies Enlargement Policy Trade Policy Development Policy CFSP – Common Foreign and Security Policy

11. EU Development since 1990s Enlargement Policy since 1990s: Copenhagen Criteria – 1993 – for EU accession: Political Criterion Economic Criterion Criterion concerning adoption of the Community „acquis“

12. EU Development since 1990s Selected areas for EU Internal Policies Internal Market EMU (Economic and Monetary Union) EU Budget and Taxation

13. EU Development since 1990s Internal Market – the main achievement of the EU Indicator of its importance for the EU: First four of the 31 negotiating chapters in the enlargement negotiations were about 4 basic freedoms on the internal market: Free movement of goods Free movement of persons Free movement of services Free movement of capital

14. EU Development since 1990s EMU The Eurozone: 16 member states of the EU that have a common currency (the Euro) and a common monetary policy

16. EU Development since 1990s EMU Maastrich criteria for accesion into the Eurozone: Low inflation Low interest rate Low public deficit Low public debt 2 years membership in the ERM II (practically fixing of the exchange rate of domestic curency to Euro)

17. EU Development since 1990s EU Budget Relatively low in comparison with the USA federal budget Multianual financial framework 2007-2013 Main outlay categories Sustainable growth Competitiveness for growth and employment Cohesion for growth and employment Preservation and management of natural resources Citizenship, freedom, security and justice The European Union as a global partner