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CHAPTER 8. MAASTRICHT AGREEMENT

CHAPTER 8. MAASTRICHT AGREEMENT. TABLE OF CONTENTS 1. INTRODUCTION 2. ECONOMIC AND MONETARY UNION 3. SOCIAL POLICY 4. COMMON FOREIGN AND SECURITY POLICY 5. EUROPEAN PARLIAMENT 6. COOPERATION IN HOME AND JUSTICE AFFAIRS 7. COHESION 8. ENLARGEMENT 9. CITIZENSHIP. 1. INTRODUCTION.

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CHAPTER 8. MAASTRICHT AGREEMENT

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  1. CHAPTER 8.MAASTRICHT AGREEMENT TABLE OF CONTENTS 1. INTRODUCTION 2. ECONOMIC AND MONETARY UNION 3. SOCIAL POLICY 4. COMMON FOREIGN AND SECURITY POLICY 5. EUROPEAN PARLIAMENT 6. COOPERATION IN HOME AND JUSTICE AFFAIRS 7. COHESION 8. ENLARGEMENT 9. CITIZENSHIP

  2. 1. INTRODUCTION • MAASTRICHT SUMMIT WAS HELD ON 11 DECEMBER 1991 BY THE HEAD OF STATES OR GOVERNMENTS • TREATY ON EUROPEAN UNION (TEU) OR MAASTRICHT TREATY WAS SIGNED BY THE FOREIGN AND FINANCE MINISTERS OF MEMBER STATES ON 7 FEBRUARY 1992 • TREATY CAME INTO FORCE ON 1 NOVEMBER 1993

  3. 2. ECONOMIC AND MONETARY UNION • TALKS ON EMU STARTED IN 1988 AND DELORES COMMITTEE SUBMITTED ITS REPORT IN 1989 • FIRST STAGE OF EMU STARTED ON 1 JULY 1990. IT REQUIRED ALL MEMBERS TO JOIN THE ERM OF THE EMS • SECOND STAGE OF THE EMU STARTED IN 1994, AFTER THE MAASTRICHT TREATY WAS RATIFIED BY THE MEMBERS IN 1 NOVEMBER 1993 • UK AND DENMARK WERE GIVEN AN OPT-OUT PROTOCOL BY WHICH THEY HAD TO DECIDE UNTIL 1996 TO JOIN IN OR NOT

  4. 2. ECONOMIC AND MONETARY UNION (CONT.) • EUROPEAN MONETARY INSTITUTE (EMI) WAS ESTABLISHED IN 1994 IN ORDER TO HARMONIZE THE MONETARY POLICIES OF MEMBER STATES • EMI WAS TO ASSESS THE FITNESS OF EACH STATE FOR INCLUSION IN THE ECU ZONE. THE ELIGIBILITY CRITERION ARE: 1. PRICE STABILITY (LESS THAN 1.5%) 2. INTEREST RATES (LESS THAN 2%) 3. BUDGET DEFICIT (LESS THAN 3% OF GDP) 4. NATIONAL DEBTS (LESS THAN 60% OF GDP) 5. EXCHANGE RATE STABILITY

  5. 2. ECONOMIC AND MONETARY UNION (CONT.) • IN DECEMBER 1996, EU SUMMIT WOULD DECIDE THE MEMBERS SATISFYING THE ABOVE CRITERIA. IF 7 MEMBERS ARE FOUND TO BE FIT, WITH MAJORITY VOTING AMONG THEM, EMU COULD HAVE BEEN ACHIEVED • OTHERWISE IN MID-1998 EUROPEAN CENTRAL BANK WOULD BE ESTABLISHED AND THE THIRD STAGE WOULD START ON 1 JANUARY 1999 • NO MINIMUM NUMBER OF STATES WOULD BE REQUIRED FOR EMU TO START IN 1999. THUS IN THIS RESPECT THE MAASTRICHT AGREEMENT IS AN IRREVOCABLE PROCESS

  6. 2. ECONOMIC AND MONETARY UNION (CONT.) • THOSE COUNTRIES WHICH WOULD NOT BE FIT IN 1998, THEY WILL BE RE-EVALUATED AFTER 2 YEARS. • THOSE WHO WOULD BE LEFT OUTSIDE THE EMU WILL NOT BE PUNISHED FOR NOT BEING ABLE TO MEET THE CRITERION. BUT THOSE INSIDE THE EMU WILL BE PUNISHED IF THEY FAIL TO MEET THE CRITERION AFTERWARDS • ECB WILL REPLACE EMI AND EUROPEAN SYSTEM OF CENTRAL BANKS (ESCB) WILL BE ESTABLISHED. ESCB WILL COORDINATE THE MONETARY POLICY • CURRENTLY 11 MEMBERS ARE IN EMU.

  7. 2. ECONOMIC AND MONETARY UNION (CONT.) • UK, DENMARK AND SWEDEN ARE WAITING • GREECE COULD NOT MEET THE CRITERION • THE THIRD STAGE OF THE EMU STARTED ON 1 JANUARY 1999 • EXCHANGE RATES OF 11 MEMBERS ARE FIXED ON 1 MAY 1998 WITHOUT WAITING 1 JANUARY 1999 • 1 JANUARY 1999 – 1 JULY 2002 --- EURO AND LOCAL CURRENCY • EURO WILL BE USED AS A UNIT OF ACCOUNT UNTIL 1 JANUARY 2002 • 1 JULY 2002 ONWARDS ONLY EURO WILL BE USED

  8. 3. SOCIAL POLICY • A SOCIAL CHARTER, WAS HOPED TO BE A PART OF THE MAASTRICHT TREATY. • BUT UK WAS DID NOT ACCEPT ITS PROVISIONS. IT FORMED PART OF A SEPARATE AGREEMENT (OUTSIDE THE TREATY) BETWEEN THE ELEVEN MEMBER STATES. • UK DID NOT ADOPT THE COMMISSION PROPOSALS RELATED TO THE SOCIAL POLICY INCLUDED IN THIS AGREEMENT.

  9. 3. SOCIAL POLICY (CONT.) • ELEVEN MEMBER STATES WOULD DECIDE THE FOLLOWING ISSUES BY QUALIFIED MAJORITY VOTING: 1. HEALTH AND SAFETY 2. WORKING CONDITIONS 3. INFORMATION AND CONSULTATION OF WORKERS 4. EQUALITY AT WORK BETWEEN MEN AND WOMEN 5. INTEGRATION OF PERSONS EXCLUDED FROM THE LABOR MARKET

  10. 3. SOCIAL POLICY (CONT.) • HOWEVER THE FOLLOWING ISSUES WOULD REQUIRE UNANIMOUS VOTING: 1. SOCIAL SECURITY 2. PROTECTION OF WORKERS MADE REDUNDANT 3. REPRESENTATION, COLLECTIVE DEFENSE OF WORKERS AND EMPLOYERS 4. CONDITIONS OF EMPLOYMENT FOR NON-EC NATIONALS 5. FINANCIAL CONTRIBUTIONS FOR PROMOTING JOBS

  11. 4. FOREIGN AFFAIRS • NEW PROVISIONS FOR GREATER INTERGOVERNMENTAL COOPERATION • IT IS AGREED THAT FOR THE "FRAMEWORK OF A JOINT FOREIGN POLICY“ • “UNANIMOUS VOTING” WOULD BE REQUIRED. HOWEVER FOR THE "IMPLEMENTATION OF THE POLICY" MAJORITY VOTE WOULD BE SUFFICIENT. • FOR THE EUROPEAN DEFENSE FRANCE AND GERMANY ON ONE SIDE WANTED TO ESTABLISH AN “EUROPEAN DEFENSE” RUN BY THE EC, AND ON THE OTHER SIDE BRITAIN AND ITALY STRESSED THAT ANYTHING TO BE AGREED SHOULD BE COMPLEMENTARY WITH NATO.

  12. 5. EUROPEAN PARLIAMENT • IT WAS DECIDED THAT THE COUNCIL OF MINISTERS WOULD TRY TO AGREE LEGISLATION WITH THE EUROPEAN PARLIAMENT. IF IT FAILS THE PARLIAMENT WILL BE ABLE TO VETO A MEASURE IN AREAS THAT FALL UNDER THE NEW SCHEME. • THIS VETO CAN APPLY TO MOST OF THE AREAS TO BE DECIDED BY QUALIFIED MAJORITY. • THESE AREAS INCLUDE, MEASURES TO COMPLETE THE SINGLE MARKET, CONSUMER PROTECTION, FREE CIRCULATION OF WORKERS, RIGHTS OF ESTABLISHMENT, TREATMENT OF FOREIGN NATIONS, EDUCATION, HEALTH, AND CULTURE.

  13. 5. EUROPEAN PARLIAMENT (CONT.) • BESIDE THIS "JOINT DECISION-MAKING" OF THE PARLIAMENT WITH THE COUNCIL OF MINISTERS, ITS POWER IS EXTENDED OVER THE COMMISSION AS WELL. IT WILL HAVE: 1. THE RIGHT TO VETO ALL APPOINTMENTS TO THE COMMISSION, INCLUDING THE PRESIDENT, AT THE BEGINNING OF EACH TERM OF OFFICE. 2. THE RIGHT TO ASK THE COMMISSION TO DRAFT NEW LEGISLATION 3. THE RIGHT TO SET UP A COMMITTEE OF INQUIRY TO INVESTIGATE BREACHES OF COMMUNITY LAW OR MAL-ADMINISTRATION BY COMMUNITY INSTITUTIONS.

  14. 6. IMMIGRATION • COMMON ACTION ON ASYLUM POLICY, IMMIGRATION AND THE FIGHT AGAINST DRUGS AND FRAUD, AND IN COMBATING TERRORISM AND INTERNATIONAL CRIME. • DECISIONS IN THESE AREAS ARE TO BE TAKEN WITH QUALIFIED MAJORITY. • FOR A COMMON VISA POLICY, THE COMMISSION WILL PROPOSE A LIST OF COUNTRIES WHOSE CITIZENS WOULD BE ASKED VISAS TO ENTER THE EC, AND THIS SHOULD BE APPROVED UNANIMOUSLY BY THE COUNCIL OF MINISTERS BEFORE IMPLEMENTATION.

  15. 7. COHESION • COHESION INVOLVES THE DEMAND BY POORER, SOUTHERN COUNTRIES, FOR GREATER TRANSFER OF MONEY FROM THE RICHER NORTH. • A COHESION FUND WILL WAS ESTABLISHED BY THE END OF 1993 TO PROVIDE MONEY FOR THE ENVIRONMENT, TRANSPORT, TELECOMMUNICATIONS AND ENERGY. THE FUND IS DIRECTED TO COUNTRIES WITH A PER CAPITA GNP OF LESS THAN 90% OF THE EC AVERAGE. • THE PROTOCOL ALSO INSISTED THAT COUNTRIES SHOULD MOVE TOWARDS ECONOMIC CONVERGENCE.

  16. 8. ENLARGEMENT • EC WOULD START NEGOTIATIONS WITH ANY DEMOCRATIC EUROPEAN COUNTRY APPLYING FOR MEMBERSHIP AS SOON AS IT COMPLETES ITS WORK ON THE BUDGET AND THE RELATED ISSUES. • THE MAASTRICHT TREATY ALSO STRESSES THE ROLE OF THE EUROPEAN PARLIAMENT IN RATIFYING ALL ACCESSION AND ASSOCIATION AGREEMENTS. • AT PRESENT 14 EUROPEAN COUNTRIES HAVE FORMALLY APPLIED FOR EC MEMBERSHIP.

  17. NEW APPLICANTS 1.TURKEY (3) APRIL 14,1988 2.CYPRUS (1) JULY 3,1990 3.MALTA (3) JULY 16, 1990 4.SWITZERLAND MAY 26, 1992 5.HUNGARY (1) MARCH 31,1994 6.POLAND (1) APRIL 5, 1994 7.ROMANIA (2) JUNE 22, 1995 8.SLOVAKIA (2) JUNE 27, 1995 9.LATVIA (2) OCTOBER 27, 1995 10.ESTONIA (1) NOVEMBER 28, 1995 11.LITHUANIA (2) DECEMBER 8, 1995 12.BULGARIA (2) DECEMBER 16, 1995 13.SLOVENIA (1) JUNE 10, 1996 14.CZECH (1) JANUARY 23, 1996

  18. 9. CITIZENSHIP • ALL EC CITIZENS HAVE GAINED NEW RIGHTS AS "CITIZENS OF THE EUROPEAN UNION". THESE INCLUDE THE RIGHT TO: 1. LIVE AND WORK IN ANY EC COUNTRY 2. VOTE AND STAND AS A CANDIDATE IN LOCAL ELECTIONS IN ANY EC COUNTRY 3. VOTE AND STAND AS A CANDIDATE IN EUROPEAN PARLIAMENT ELECTIONS IN ANY EC COUNTRY 4. RECEIVE DIPLOMATIC OR CONSULAR PROTECTION IN NON-EC COUNTRIES FROM ANY MEMBER STATE 5. PETITION THE EUROPEAN PARLIAMENT OR COMPLAIN TO THE OMBUDSMAN

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