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EUROPEAN UNION 101 By: Alon van Dam
On: 25.07.2019
AGENDA
EU – History
EU – Institutions
EU – Politics
CAVEATS
Very high-level
Oversimplification
EU has exceptions for everything.
Bias
1. HISTORY OF THE EUROPEAN
UNION
GOALS
Principles of the EU
Background: EU / UK relations
Background: Rule of Law issues
Background: Economic issues
EU TIMELINE
1952: European Coal & Steel Community
1957/9: European Economic Community
1973: Enlargement #1: UK & Friends
1981/1986: Enlargement #2: Southern Expansion
1992: European Union
1995: Enlargement #3: Neutral Countries
2004: Enlargement #4: Eastern Expansion
2007: Lisbon Treaty
EUROPE PRE-1945
1952 – EUROPEAN COAL & STEEL COMMUNITY
Goal: peace through trade.
Why did they join?
 NL & DE – competitive coal & steel
 BE – competitive steel, bad coal
 LX – economic union with BE
 FR & IT – needed coal & steel
Why no UK?
 Nationalized coal
 Trade with US & Commonwealth
1957 – EUROPEAN ECONOMIC COMMUNITY
-Treaty of Rome
SOME CONCEPTS
Free Trade Area: No internal obstacles to trade.
Customs Union: Single external tariff.
Common Market: Four Freedoms
Goods
Capital
Labor
Services
Economic Union: Common macroeconomic policies.
1973 – BRITAIN JOINS THE EU
UK economic & political realities
shifted post-war.
UK tried to join in 1961,
rejected.
Joins in 1973: has to pay into the
CAP.
Lobbied for Common Market in
1983.
1992 – EUROPEAN UNION
Maastricht Treaty forms European Union
Sets up European Monetary Union (later: Euro)
 Inflation: Max 1.5% over lowest.
 Deficit: Max 3% of GDP.
 Debt: Max 60% of GDP.
 Interest: Max 2% over lowest.
Sets up Common Foreign & Security Policy
Sets up Cooperation in Justice & Home Affairs
Replaced by 2007 Lisbon Treaty
COPENHAGEN CRITERIA
Political
 Democracy
 Rule of Law
 Human Rights
 Protection of Minorities
Economic
 Market Economy
 Maastricht Criteria
Legislative:
 Adopt EU Law, Acquis
Communautaire
FRICTIONS
Widening vs. Deepening
Common perception: widening
prevents deepening.
Econ. Strong vs. Weak States
Strong feel that weak are
freeloaders.
Weak feel oppressed & abused
by strong.
HISTORY - TAKEAWAYS
Purpose: Peace.
Method: Economic interdependence.
Tension between Widening & Deepening
Tension between Rich/Poor, Strong/Weak
UK & EU: starting off on the wrong foot
2. EU INSTITUTIONS
“Who do I call if I
want to call Europe?”
-Henry Kissinger
GOALS
How does the EU work?
How is EU law made?
How democratic is the EU?
Who’s in charge?
AGENDA
1. High-level overview of EU institutions
2. Appointment & election of institutions
3. Deep dive
4. How EU Laws are passed
5. Frictions
2.1 HIGH-LEVEL OVERVIEW
The EU has 7 institutions:
 Executive
 European Council – compare to Presidency & Council of State
 European Commission – compare to Prime Minister & Cabinet
 Legislative
 Council of the European Union – compare to Senate / Lords
 European Parliament – compare to House of Reps / Commons
 Judicial
 Court of Justice of the EU – compare to Supreme Court
 Other
 European Central Bank – compare to Central Bank
 Court of Auditors
2.2 APPOINTMENT / ELECTION
2.3.1 EUROPEAN COUNCIL
Membership: 28 Heads of State/Government
President: Donald Tusk → Charles Michel
Voting: QMV QMV: 55% of countries, 65% population
Responsibilities:
 Sets EU policy agenda, “impetus and direction”
 Appoints High Representative.
 Appoints President of ECB.
 Proposes President of Commission.
 Sometimes political power, “emergency brake”
 Representation abroad, “collective Head of State”
2.3.2 EUROPEAN COMMISSION
Membership: 28 Commissioners (1 + 7 + 20)
President: J-C Juncker → Ursula von der Leyen
Voting: Consensus / Simple Majority
Responsibilities:
 Day-to-day executive.
 Initiates legislation.
 Adopts Decisions (similar to Executive Orders).
 Implements policy.
 Administers & disburses the EU Budget.
 Administers executive agencies.
Tidbits: 32,000 bureaucrats, Berlaymont building.
2.3.3 COUNCIL OF THE EU
Membership: 28 relevant ministers
 Depends on subject-matter, like agriculture or education.
President: Finland, rotates every 6 months.
Voting: QMV / Consensus
 4 countries representing 35% of population can block.
 Issues of sovereignty: don’t need EP, needs unanimity.
Responsibilities:
 Legislative power.
 Budgetary power.
 Common Foreign & Security Policy (CFSP).
 Joint Actions & Common Positions
 Usually: co-decision with Parliament.
2.3.4 EUROPEAN PARLIAMENT
Membership: 751 MEPs
President: David Sassoli (S&D)
Seat: Brussels, Strasbourg, Luxembourg
Voting: Simple / Absolute Majority
Responsibilities:
 Legislative power.
 No approval needed on certain issues.
 Budgetary power: before & after spending.
 Elects European Commission.
 Oversight over Commission (no-confidence vote)
 Usually: co-decision with Parliament.
2.3.4 EP – POLITICAL GROUPS
European People’s Party - 182
 Christian Democrats, e.g. CDU
Socialists & Democrats - 154
 Social Democrats, e.g. Labour, SPD
Renew Europe - 108
 Liberals, e.g. LibDems, En Marche
Greens - 74
 Greens, e.g. DE Greens, UK Greens
Identity & Democracy - 73
 Eurosceptics, e.g. La Liga, Le Pen
Conservatives (ECR) - 62
 Conservatives, e.g. Tories, Law & Justice
United Left - Nordic Green Left - 41
 Hard Left, e.g. Syriza, Die Linke
‘Non-Inscrits’ - 57
2.3.5 OTHER INSTITUTIONS
European Court of Justice
 Court of Justice: 28 justices.
 Interpretation of EU law.
 Settle disputes between EU institution.
 Can fine member states.
European Central Bank
 Monetary policy of Eurozone.
 Mario Draghi → Christine Lagarde.
Court of Auditors
 Review budget.
 Never, ever approved one.
2.4 PASSING OF EU LAW
Ordinary Legislative Procedure
Initiative: European Commission
 Can be requested by other institutions.
 Can be requested by popular demand.
Co-Decision of Parliament & Council
Regulation Directive Decision
Binding on all
Defined ‘how’
Needs EP & Council
2.5 INHERENT FRICTIONS
Democratic Deficit
Parliament vs. European Council
Member States blame EU
National Interest vs. EU Interest
Difficulty to make decisions
WHO DO YOU CALL?
Nobody knows.
INSTITUTIONS - TAKEAWAYS
European Council: National
Leaders
Commission: Executive
Parliament & Council: Bicameral
Legislature
Complex system of making laws
encourages scapegoating.
3. EU POLITICS & CURRENT EVENTS
GOALS
The challenge of populism
What’s happening in Hungary & Poland?
What’s happening with Brexit?
Where next for the EU?
AGENDA
1. Euroscepticism
2. Visegrad Group
3. Brexit
4. New Parliament & Commission
5. Future
3.1 EUROSCEPTICISM
Populism
Society vs. Elites
Politics as expression of general
will
Need for binding element
Migration Crisis
EU useful scapegoat
3.1 EUROSCEPTICISM: MIGRATION CRISIS
3.1 EUROSCEPTICS IN NATIONAL PARLIAMENTS
Share of Eurosceptics in latest elections:
Italy: Liga & 5Star – 70%
Latvia: KPV, NA & ZZS – 35%
Austria: FPO – 26%
Sweden: SD – 18%
Netherlands: PVV & FvD – 15%
Germany: AfD – 13%
3.2 VISEGRAD GROUP
Alliance of
Hungary
Poland
Czech Republic
Slovakia
United in fight against communism,
reignited recently.
3.2 HUNGARY
Viktor Orban – Fidesz.
Elected in 2010
Constitution amended in 2013 & soon.
2014: “Illiberal Democracy”
Consolidation of media
Expulsion of NGOs
Attacking minorities.
60% of tenders: 1 bidder
3.2 POLAND
Law and Justice party
De facto led by Jarosław Kaczyński
Elected in 2015
Constitution amended in 2015
Weakening of supreme court.
Directly appointing court by executive.
3.2 ISSUES IN DEALING WITH RULE OF LAW
Article 7 of the EU Treaty:
Allows the EU to remove voting
power of member states.
Requires consensus.
Illiberal states back each other
up.
3.3 BREXIT
Recap:
 EU/UK relations fraught from the beginning.
 UK feels they were taken advantage of by UK
Cameron promised referendum.
Referendum:
 Take Back Control
 Migration
 Money to NHS
 Ending EU regulations
 Ending ECJ oversight
2016 referendum: 52% - 48%
3.3 BREXIT
Irish border issue
What’s a backstop?
Commons against
everything.
Result: Johnson PM.
What’s next?
3.4 EUROPEAN PARLIAMENT ELECTIONS
European People’s Party – 182 (-34)
Socialists & Democrats – 154 (-31)
Renew Europe – 108 (+39)
Greens – 74 (+22)
Identity & Democracy - 73 (+37*)
 ID gained 37 seats, EFDD lost 42.
 5SM, Brexit, Golden Dawn, Jobbik NI
 Eurosceptics gained, somewhat.
Conservatives (ECR) – 62 (-15)
Nordic Green Left – 41(-11)
‘Non-Inscrits’ – 57 (+37)
3.4 EUROPEAN PARLIAMENT ELECTIONS
3.4 FORMING A NEW COMMISSION
Promised: “Spitzenkandidat”
 EPP: Manfred Weber
 S&D: Frans Timmermans
 ALDE: Margrethe Verstagen
Results: Everyone won but lost.
 Macron blocked Weber
 Merkel blocked Verstager
 Visegrad4 blocked Timmermans
Ergo: Backroom talks
3.4 VON DER LEYEN COMMISSION
3.4 VON DER LEYEN COMMISSION
Von der Leyen: highly unpopular
 German Social Democrats
 Greens
 European Parliament in general
Had to promise many things:
 Power of initiative to European Parliament.
 Restoring Spitzenkandidaten.
 Ambitious climate goals.
 EU where “nobody’s perfect”

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European union lecture 101

  • 1. EUROPEAN UNION 101 By: Alon van Dam On: 25.07.2019
  • 2. AGENDA EU – History EU – Institutions EU – Politics
  • 4. 1. HISTORY OF THE EUROPEAN UNION
  • 5. GOALS Principles of the EU Background: EU / UK relations Background: Rule of Law issues Background: Economic issues
  • 6. EU TIMELINE 1952: European Coal & Steel Community 1957/9: European Economic Community 1973: Enlargement #1: UK & Friends 1981/1986: Enlargement #2: Southern Expansion 1992: European Union 1995: Enlargement #3: Neutral Countries 2004: Enlargement #4: Eastern Expansion 2007: Lisbon Treaty
  • 8. 1952 – EUROPEAN COAL & STEEL COMMUNITY Goal: peace through trade. Why did they join?  NL & DE – competitive coal & steel  BE – competitive steel, bad coal  LX – economic union with BE  FR & IT – needed coal & steel Why no UK?  Nationalized coal  Trade with US & Commonwealth
  • 9. 1957 – EUROPEAN ECONOMIC COMMUNITY -Treaty of Rome
  • 10. SOME CONCEPTS Free Trade Area: No internal obstacles to trade. Customs Union: Single external tariff. Common Market: Four Freedoms Goods Capital Labor Services Economic Union: Common macroeconomic policies.
  • 11. 1973 – BRITAIN JOINS THE EU UK economic & political realities shifted post-war. UK tried to join in 1961, rejected. Joins in 1973: has to pay into the CAP. Lobbied for Common Market in 1983.
  • 12. 1992 – EUROPEAN UNION Maastricht Treaty forms European Union Sets up European Monetary Union (later: Euro)  Inflation: Max 1.5% over lowest.  Deficit: Max 3% of GDP.  Debt: Max 60% of GDP.  Interest: Max 2% over lowest. Sets up Common Foreign & Security Policy Sets up Cooperation in Justice & Home Affairs Replaced by 2007 Lisbon Treaty
  • 13. COPENHAGEN CRITERIA Political  Democracy  Rule of Law  Human Rights  Protection of Minorities Economic  Market Economy  Maastricht Criteria Legislative:  Adopt EU Law, Acquis Communautaire
  • 14. FRICTIONS Widening vs. Deepening Common perception: widening prevents deepening. Econ. Strong vs. Weak States Strong feel that weak are freeloaders. Weak feel oppressed & abused by strong.
  • 15. HISTORY - TAKEAWAYS Purpose: Peace. Method: Economic interdependence. Tension between Widening & Deepening Tension between Rich/Poor, Strong/Weak UK & EU: starting off on the wrong foot
  • 17. “Who do I call if I want to call Europe?” -Henry Kissinger
  • 18. GOALS How does the EU work? How is EU law made? How democratic is the EU? Who’s in charge?
  • 19. AGENDA 1. High-level overview of EU institutions 2. Appointment & election of institutions 3. Deep dive 4. How EU Laws are passed 5. Frictions
  • 20. 2.1 HIGH-LEVEL OVERVIEW The EU has 7 institutions:  Executive  European Council – compare to Presidency & Council of State  European Commission – compare to Prime Minister & Cabinet  Legislative  Council of the European Union – compare to Senate / Lords  European Parliament – compare to House of Reps / Commons  Judicial  Court of Justice of the EU – compare to Supreme Court  Other  European Central Bank – compare to Central Bank  Court of Auditors
  • 21. 2.2 APPOINTMENT / ELECTION
  • 22. 2.3.1 EUROPEAN COUNCIL Membership: 28 Heads of State/Government President: Donald Tusk → Charles Michel Voting: QMV QMV: 55% of countries, 65% population Responsibilities:  Sets EU policy agenda, “impetus and direction”  Appoints High Representative.  Appoints President of ECB.  Proposes President of Commission.  Sometimes political power, “emergency brake”  Representation abroad, “collective Head of State”
  • 23. 2.3.2 EUROPEAN COMMISSION Membership: 28 Commissioners (1 + 7 + 20) President: J-C Juncker → Ursula von der Leyen Voting: Consensus / Simple Majority Responsibilities:  Day-to-day executive.  Initiates legislation.  Adopts Decisions (similar to Executive Orders).  Implements policy.  Administers & disburses the EU Budget.  Administers executive agencies. Tidbits: 32,000 bureaucrats, Berlaymont building.
  • 24. 2.3.3 COUNCIL OF THE EU Membership: 28 relevant ministers  Depends on subject-matter, like agriculture or education. President: Finland, rotates every 6 months. Voting: QMV / Consensus  4 countries representing 35% of population can block.  Issues of sovereignty: don’t need EP, needs unanimity. Responsibilities:  Legislative power.  Budgetary power.  Common Foreign & Security Policy (CFSP).  Joint Actions & Common Positions  Usually: co-decision with Parliament.
  • 25. 2.3.4 EUROPEAN PARLIAMENT Membership: 751 MEPs President: David Sassoli (S&D) Seat: Brussels, Strasbourg, Luxembourg Voting: Simple / Absolute Majority Responsibilities:  Legislative power.  No approval needed on certain issues.  Budgetary power: before & after spending.  Elects European Commission.  Oversight over Commission (no-confidence vote)  Usually: co-decision with Parliament.
  • 26. 2.3.4 EP – POLITICAL GROUPS European People’s Party - 182  Christian Democrats, e.g. CDU Socialists & Democrats - 154  Social Democrats, e.g. Labour, SPD Renew Europe - 108  Liberals, e.g. LibDems, En Marche Greens - 74  Greens, e.g. DE Greens, UK Greens Identity & Democracy - 73  Eurosceptics, e.g. La Liga, Le Pen Conservatives (ECR) - 62  Conservatives, e.g. Tories, Law & Justice United Left - Nordic Green Left - 41  Hard Left, e.g. Syriza, Die Linke ‘Non-Inscrits’ - 57
  • 27. 2.3.5 OTHER INSTITUTIONS European Court of Justice  Court of Justice: 28 justices.  Interpretation of EU law.  Settle disputes between EU institution.  Can fine member states. European Central Bank  Monetary policy of Eurozone.  Mario Draghi → Christine Lagarde. Court of Auditors  Review budget.  Never, ever approved one.
  • 28. 2.4 PASSING OF EU LAW Ordinary Legislative Procedure Initiative: European Commission  Can be requested by other institutions.  Can be requested by popular demand. Co-Decision of Parliament & Council Regulation Directive Decision Binding on all Defined ‘how’ Needs EP & Council
  • 29. 2.5 INHERENT FRICTIONS Democratic Deficit Parliament vs. European Council Member States blame EU National Interest vs. EU Interest Difficulty to make decisions
  • 30. WHO DO YOU CALL? Nobody knows.
  • 31. INSTITUTIONS - TAKEAWAYS European Council: National Leaders Commission: Executive Parliament & Council: Bicameral Legislature Complex system of making laws encourages scapegoating.
  • 32. 3. EU POLITICS & CURRENT EVENTS
  • 33. GOALS The challenge of populism What’s happening in Hungary & Poland? What’s happening with Brexit? Where next for the EU?
  • 34. AGENDA 1. Euroscepticism 2. Visegrad Group 3. Brexit 4. New Parliament & Commission 5. Future
  • 35. 3.1 EUROSCEPTICISM Populism Society vs. Elites Politics as expression of general will Need for binding element Migration Crisis EU useful scapegoat
  • 37. 3.1 EUROSCEPTICS IN NATIONAL PARLIAMENTS Share of Eurosceptics in latest elections: Italy: Liga & 5Star – 70% Latvia: KPV, NA & ZZS – 35% Austria: FPO – 26% Sweden: SD – 18% Netherlands: PVV & FvD – 15% Germany: AfD – 13%
  • 38. 3.2 VISEGRAD GROUP Alliance of Hungary Poland Czech Republic Slovakia United in fight against communism, reignited recently.
  • 39. 3.2 HUNGARY Viktor Orban – Fidesz. Elected in 2010 Constitution amended in 2013 & soon. 2014: “Illiberal Democracy” Consolidation of media Expulsion of NGOs Attacking minorities. 60% of tenders: 1 bidder
  • 40. 3.2 POLAND Law and Justice party De facto led by Jarosław Kaczyński Elected in 2015 Constitution amended in 2015 Weakening of supreme court. Directly appointing court by executive.
  • 41. 3.2 ISSUES IN DEALING WITH RULE OF LAW Article 7 of the EU Treaty: Allows the EU to remove voting power of member states. Requires consensus. Illiberal states back each other up.
  • 42. 3.3 BREXIT Recap:  EU/UK relations fraught from the beginning.  UK feels they were taken advantage of by UK Cameron promised referendum. Referendum:  Take Back Control  Migration  Money to NHS  Ending EU regulations  Ending ECJ oversight 2016 referendum: 52% - 48%
  • 43. 3.3 BREXIT Irish border issue What’s a backstop? Commons against everything. Result: Johnson PM. What’s next?
  • 44. 3.4 EUROPEAN PARLIAMENT ELECTIONS European People’s Party – 182 (-34) Socialists & Democrats – 154 (-31) Renew Europe – 108 (+39) Greens – 74 (+22) Identity & Democracy - 73 (+37*)  ID gained 37 seats, EFDD lost 42.  5SM, Brexit, Golden Dawn, Jobbik NI  Eurosceptics gained, somewhat. Conservatives (ECR) – 62 (-15) Nordic Green Left – 41(-11) ‘Non-Inscrits’ – 57 (+37)
  • 46. 3.4 FORMING A NEW COMMISSION Promised: “Spitzenkandidat”  EPP: Manfred Weber  S&D: Frans Timmermans  ALDE: Margrethe Verstagen Results: Everyone won but lost.  Macron blocked Weber  Merkel blocked Verstager  Visegrad4 blocked Timmermans Ergo: Backroom talks
  • 47. 3.4 VON DER LEYEN COMMISSION
  • 48. 3.4 VON DER LEYEN COMMISSION Von der Leyen: highly unpopular  German Social Democrats  Greens  European Parliament in general Had to promise many things:  Power of initiative to European Parliament.  Restoring Spitzenkandidaten.  Ambitious climate goals.  EU where “nobody’s perfect”