European Institutions and context Joy Johnson

1. European Institutions and contextJoy Johnson

2. Europe provokes divisions across political spectrum “In Europe, not run by Europe”

3. BRITAIN’S RELATIONS WITH EUROPE: TIMELINE NB. Similar material in Kavanagh et al, 2005: Table 8.2:

4. Amsterdam Treaty • freedom of movement one of the main objectives of the European Union, the Treaty of Amsterdam agreed to incorporate Schengen into EU law.

5. Question is: ‘to stay in’ • Former Prime Minister Margaret Thatcher originally yes supporter in the UK’s first referendum in 1975 in the then European Economic Community (Common Market) • 67% of voters supported the Labour government's campaign despite several (Labour) cabinet ministers having come out in favour of British withdrawal.

6. Thatcher says No, No, No • Former Prime Minister supported single market (Single European Act) • Greater integration (contents of the Maastricht treaty – moving to ever greater union) drew a No, No, No • Her Chancellor (Lawson) and former Foreign Secretary (Howe) resigned • Political elite ousted her from office over Europe • (For the masses it was the Poll Tax)

7. Conservative’s fault line • Her successor John Major’s premiership was riven with division by Maastricht • Maastricht created European Union based on 3 pillars – European Communities; a common foreign and security policy; cooperation in the fields of Justice and Home Affairs (Nugent p 85 - 105) • Economic and Monetary Union leading to single currency • Debacle of Black Wednesday with Britain thrown out of the Exchange Rate Mechanism (September 1992)

8. John Major tried to appease Eurosceptics • opted out of the Social Chapter –included the Working Time Directive (48 hours working week) eventually signed by Tony Blair

10. Exchange Rate Mechanism (ERM) • Linked the values of participating European currencies and limits the extent of their fluctuations • Britain signed up in 1990 • (Nigel Lawson had previously shadowed the German deutschmark and spectacularly fell out with his boss Margaret Thatcher)

11. Black Wednesday • Britain kicked out in 1992 • Panic set in after stock market speculation and interest rates shot up to 15% in one day • Pound sterling found itself in an unsustainable position during the months after signing up to ERM • Value of the pound against the dollar too high • affect on exports market • Membership of ERM meant that Chancellor couldn’t devalue the pound to remedy over valued pound (Morrison p 302)

13. Black Wednesday • Lamont statement on the day • Useful chapter putting ERM into its contemporary context Gowland et al, Britain and European Integration Since 1945)

14. European Monetary Union • Single currency - Euro zone • Gordon Brown’s five tests (economic, political and social) • Brown concluded that interest rates appropriate in one country were not necessarily right for another • Countries not growing in harmony • Lack of flexibility to adjust economies to crises • Useful chapter Brown, Beyond the Crash

15. EU less toxic • David Cameron has sought to make EU less toxic for the Conservative Party • HOWEVER • Global financial crisis – problems - Eurozone • Irish Bailout – In Britain’s national interest • Angela Merkel seeking to revise treaty rules (Lisbon) to handle any future financial crisis • Recent decisions enraged Conservative backbenchers (and others) • Loss of Parliamentary sovereignty

16. Budget increase down from 6% to 2.9what happened to the freeze promise?

18. DELEGATION OF POWER TO EU NOT NECESSARILY DETRIMENTAL Supra-national ‘collective action’ • National government may not be able to meet citizens’ needs on some (international) policy issues - Environmental pollution, immigration, crime EU ‘fit’ with Britain • EU sometimes doesn’t ‘fit’ (eg. social policy) • … but sometimes it does (eg. single market).

19. EUROPEAN INTEGRATION • Incremental progress • Economic integration followed by political integration Britain/Denmark/Sweden opted out of Eurozone • domestic concerns over ‘political union’, loss of sovereignty • Grand theory (Neill Nugent govt and politics of the EU p 557 – 576)

20. Structures and Procedures in EU • Supranational (e.g Single Market) • Intergovermental (e.g. Defence)

21. KEY EUROPEAN UNION INSTITUTIONS European Commission (President Jose Barruso) http://europa.eu/ European Parliament (736 MEPs) Council of Ministers (eg Ecofin)

22. European Commission • Regarded as EU Civil Service • Headed by President currently Jose Manuel Barruso • Has 27 commissioners appointed by nation states (past UK - Peter Mandelson, Chris Patten, Neil Kinnock) • Overseas EU laws, proposes new ones • Can’t legislate

23. European Commission’s responsibilities • draft budget • formulating policy, overseeing its implementation • Guardians of the ‘treaties’ • If member states fail to implement a policy the Commission might bring the matter to the European Court of Justice (ECJ)

24. EUROPEAN PARLIAMENT Powers of ‘co-decision’ with Council Power to reject Commission Powers to reject EU budget

25. European Parliament • The European Parliament is made up of 736 Members elected in the 27 Member States of the enlarged European Union. • Co-decision with Council of Ministers making following Amsterdam and Nice Treaties. Judged necessary by enlargement. (except in areas of policy that remained inherently inter-governmental) • MEPs elected by PR – UK party regional list system • 72 UK MEPs were elected in the European Parliament elections on 4 June 2009 for 5 year term • Sits in Brussels 3 weeks, 1 week in Strasbourg

26. Council of Ministers • Made up of government ministers from member states • ministers attend the council depends on the subject under discussion (e.g. An Agricultural Council) • Chancellor attends Economic Council of Finance Ministers (separate meeting of Eurozone ministers but Chancellor still attends key meetings i.e. Irish bailout)

27. European Council • Is not an institution as such but it does have a pivotal role to play within the EU • Strategic role with regard to structural funding or englargement • Government of member states not only are represented in the Council they also implement EU policy

28. European Court of Justice (ECJ) • Resolves disputes for example between member states and the EU • Based in Luzembourg • Has its own President (elected by their fellow judges on 3 year term) • One judge per member state 27 (13 hear one case at a time) • Since Lisbon Treaty assisted by 11 advocate-generals • Judgements require unanimity

29. ECJ • Areas of law covered • Free trade and free movement of goods and services in the EU single market • Employment law and the European Social Chapter • Competition law (cartels, monopolies, mergers and acquisitions) • Public sector regulation

31. European Central Bank (ECB) • Established 1 January 2002 – the day euro notes and coins issued the 12 EU member states. • Based in Frankfurt • Britain, Sweden and Denmark opted out of single currency

33. The European Central Bank (ECB) sets monetary policy for all 12 nations that are members of the euro. It is the successor of the European Monetary Institute - set up to oversee the transitional second stage of monetary union. • The ECB works with national central banks within what is called the European System of Central Banks. Its key tasks are to: • Define and implement monetary policy, such as setting interest rates; • Maintain price stability; • Support economic policies of member states as long as they do not affect price stability; • Conduct foreign exchange operations and look after the official foreign reserves of the member states; • Promote smooth operation of payment systems that link banks.

35. Responsibilities • Define and implement monetary policy, - setting interest rates; • Maintain price stability; • Support economic policies of member states as long as they do not affect price stability; • Conduct foreign exchange operations and look after the official foreign reserves of the member states; • Promote smooth operation of payment systems that link banks.

36. : OPTING OUT OF COLLECTIVE AGREEMENTS • 1992: Monetary union; ‘Social Chapter’ • 1993: ‘Working Time Directive’ • 1997: Immigration and asylum • 2007: Police and judicial cooperation on crime

37. Schengen • As freedom of movement is one of the main objectives of the European Union, the Treaty of Amsterdam agreed to incorporate Schengen into EU law. • UK opted out

38. Lisbon Treaty • Under EU rules, the treaty had to be ratified by all 27 member states before coming into force. • Ireland voted no in a referendum – in 2nd referendum voted yes • The last country to ratify the treaty was the Czech Republic, which completed the process on 3 November 2009. • The treaty became law on 1 December.

39. Lisbon Treaty • Created two new top jobs - EU Council president and EU foreign affairs chief • Boosted powers of European Parliament, making co-decision with governments the norm • Paved way for new EU diplomatic service, headed by UK's Baroness Ashton • Took eight years of negotiation, including two Irish referendums

40. Lisbon Treaty • The new President of the European Council - Belgium's Herman Van Rompuy - chairs EU summits though many EU ministerial meetings will still be chaired by the country holding the six-month presidency - currently Spain

41. Herman van Rumpuy President& Baroness Ashton Foreign Affairs

42. Hostile media

43. Lisbon Treaty • Treaty often described as an attempt to streamline EU institutions to make the enlarged bloc of 27 states function better. • Opponents see it as part of a federalist agenda that threatens national sovereignty.

44. After Lisbon • The Parliament will be on an equal footing with the Council - the grouping of member states' governments - for most legislation, including the budget and agriculture – ‘co-decision’.

45. After Lisbon • Removal of national vetoes in a number of areas, including fighting climate change, energy security and emergency aid. Unanimity will still be required in the areas of tax, foreign policy, defence and social security.

46. After Lisbon • Removal of national vetoes in a number of areas, including fighting climate change, energy security and emergency aid. Unanimity will still be required in the areas of tax, foreign policy, defence and social security.

47. After Lisbon • A redistribution of voting weights between the member states, phased in between 2014 and 2017 based on a "double majority" of 55% of member states, accounting for 65% of the EU's population.

48. After Lisbon – New powers • New powers for the European Commission, European Parliament and European Court of Justice, for example in the field of justice and home affairs. • Parliament will be on an equal footing with the Council - the grouping of member states' governments - for most legislation including the budget and agriculture

49. After Lisbon • Removal of national vetoes in a number of areas, including fighting climate change, energy security and emergency aid. Unanimity will still be required in the areas of tax, foreign policy, defence and social security.

50. After Lisbon • The new European Parliament was elected in June 2009 under the existing Nice Treaty - 736 MEPs - down from the previous 785. • Under the Lisbon plan, the number will be fixed at 751