European EI

1.Free-Trade Area (FTA): 2 or more countries remove import duties in their mutual trade in all goods & maintain country-based tariffs against 3rd parties. 2. Custom Union (CU)
FTA + goods &/or services + a common external tariff (CET) against 3rd parties. (ECSC – Paris Treaty-only coal & steel) 3. Common Market (CM): Custom Union + 4 freedoms of movement (goods, services, capitals, workforce/citizens) (EEC – Rome Treaty!) 4. Economic & M1tary Union (EMU = EU + MU): EU = Common Market + Common Policies; MU = Common M1tary Policies + Common Currency (tried with the Maastricht Treaty! Then Amsterdam, Nice & did it Lisbon)
EU – single legal personality, distinctive of the legal personalities of the MS. Areas of competences covered: economic, citizenships, external actions, security & defense issued, justice, home affairs Principles of functioning: The limits of Union competences R governed by the principle of conferral. The use of Union competences is governed by the principles of subsidiarity & proportionality. Democratic principles & European citizenship: in all its activities, the Union shall observe the principle of the equality of its citizens, who shall receive equal attention from its institutions, bodies, offices & agencies. Every national of a Member State shall be a citizen of the Union. EU Institutions: shall act within the limits of the powers conferred on it in the Treaties, & in conformity with the procedures, conditions & objectives set out in them. EU Competences: competence 2 carry out actions 2 support, coordinate or supplement the actions of the Member States; coordination of economic & employment policies; competences related 2 common foreign policy & common security & defense policy.

1951, FR, GERM, It, Lux, Bel, & Neth signed the Treaty of Paris which established the Europ Coal & Steal Community (-2002) & their aim was 2 bring diplomatic & econ stability in Western Europe after the 2nd World War. 1958,same countries signed the Treaty of Rome that established the European Econ Community (EEC) & the European Atomic Energy Community (EUROTAM). This treaty was created with the aim 2 create a com mkt 4 the movement of goods, services, people, & capital 2 work 4 the econ growth; & it established a CU that was created 2 abolish quotas & customs duties between the countries & established a common external tariff on imports from outside the EEC. In 1973, UK, Ireland & Denmark entered the EEC. 1979, the European M1tary System was launched, & it was a system 2 stabilize exchange rates between European currencies.1981, Greece EEC. 1986, Pt & Sp EEC.1987, there was a review of all treaties, & it was created the single European Act that launched the single market. In 1992, it was signed the Treaty of Maastricht that created the European Union (EU) & the Econ & Mon Union (EMU). It also established the political union with a structure that differentiated econ matters & foreign policies & internal security matters. It created the Social Charter, EU Citizenship, strengthening of the Parliament & subsidiary. In 1995, Austria, Finland, & Sweden joined.1997, it was signed the treaty of Ams where a framework was laid down 4 the future accession of 10 new MS, mainly from formerly communist Eastern Europe & it was created the Qualified Majority Vote. 2001-2003, the Treaty of Nice was signed & it reformed the institutional structure of the EU 2 withstand eastward expansion, a task which was originally intended 2 have been d1 by the Ams Treaty, but failed 2 be addressed @ the time, & The QMV was extended. In 2004, Cyprus, Malta, Czech republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia & Slovenia joined the EU. In 2007, Romania & Bulgaria. 2007-2009, it was signed the Treaty of Lisb that introduced the legal personality of the EU, it was created the Fundamental Rights & there started 2 be a clear separation & definition of competences of the EU & MS. The Eu also hs the right 2 conclude inter agreements on behalf of the MS in all areas of competence & competence 2 represent all MS in various inter org.. 

The main institutions R the European Commission, European Parliament, & Council of European Union. The European Commission represents EU as a whole & it is composed by its President, 8 vice-presidents & 27 commissi1rs (elected by national governments). Their main roles R 2 propose legislation 2 the Council & Parliament; administer & implement EU policies & execute EU budget; provide surveillance & enforcement of EU laws; & represents EU @ some international negotiations.  The European Parliament represents EU citizens, & it is composed by the President & representatives of unions’ citizens (maximum 750; regressive proportional & minimum 6 per MS). Their main roles R passing European laws, democratic supervision of EU institutions & authority over the budget. The Council of European Union is EU’s main decision-making body & it represents the MS governments. It is composed by the council of ministers & a present that is rotating every 6 months between MS. Their main roles R passing European laws, approve EU budget (with parliament), conclude international agreements involving EU, coordinate the general economic policies of MS in the context of EMU, & develop common foreign & security policies. The Council takes decisions by: simple majority(14MS); qualifies majority (55%); unanimous.

There R other EU institutions we should also consider: European Council gives the impetus & directions 2 European integration; Committee of Regions & The Economic & Social Committee R advisory bodies;European Court of Justice settles disputes. European Council Consists of the heads of government of the Member States + its President + President of the Commission. T: Provides the EU with impetus 4 development; defines general directions & priorities of the EU; takes key institutional decisions (ex. Size of the European commission…); revises EU Founding Treaties under simplified revision procedures; takes key decisions in EU accession & EU withdrawal. European Court of Justice: The defender of the “Treaties”. Reviews the “constitutionality” of the EU legislation; Safeguard EU law in the application & interpretation of the Community Treaties; common types of case R: Interpreting law; enforcing law; annulling Eu legal acts; ensuring the EU takes action; sanctioning EU institutions.

Free movemente of workers history
PHASE 1. 1957 – 1970: Treaty of Rome 2 the Werner Plan: 1. Treaty of Rome (1957): assumed that the stability of the currencies of the members is the normal outcome of the custom union & later on of the single market. It did not advance the idea of a m1tary union & of the single currency, but refers 2 m1tary & economic coordination. 2. Turbulences & currencies turbulences & the Bretton Woods System starts 2 fail in late 1960s. 3. Werner Report (1970): A stage-by-stage plan 4 attaining economic & m1tary union & was endorsed by a Council resolution. PHASE 2. 1970-1979: from Werner Report 2 the European M1tary System 1. Progress 4 implementing the Werner Plan: The European M1tary Cooperation Fund 2 provide short-term m1tary support & facilitate concerted m1tary action created in 1973. The Council decision (1974) urged MS 2 align their economic policies with guidelines 2 be issued periodically by the Council, & called on the central banks 2 coordinate their m1tary policies 2. “M1tary Snake” / “Snake in the tunnel”: 1972 – 2 address the exchange rate instability, most member states entered a system 2 reduce exchange rate fluctuations 2 a narrow band, popularly called the “snake”. 3. Further efforts 4 EMU & currency stability: 4. European M1tary System launched in 1979 – “2 attain a z1 of internal & external m1tary stability in Europe (involving both low inflation & stable exchange rates); 2 provide the framework 4 improved economic policy cooperation between Member States ***; 2 help 2 alleviate global m1tary instability through common policies vis a vis 3rd currency***.” Comp1nts: Artificial currency – European Currency Unit; Exchange rate mechanism, including the indicator of divergence as early warning system; System of short- & medium-term credit & loan reserve 4 the member states supporting their efforts 4 stability. Aim stabilization of the exchange rates of the currencies of the Member States participating in the EMS. Credit mechanism 4 the member states: short & medium-term support can be given 2 MS encountering serious m1tary troubles.  PHASE 3. 1979-1991: from EMS 2 Maastricht Treaty 1. Delors Report (1989): defined the EMU’s goal as the common management of m1tary & economic policies 2 attain common macroeconomic goals. 3 preconditions 4 the establishment of an EMU: total & irreversible convertibility of currencies; complete liberalization of capital transactions & integration of the financial sector & irreversible locking of exchange rates. PHASE 4. 1991-1999: from Maastricht 2 the euro & euro area 1. Treaty of Maastricht: accession 2 the EMU conditi1d by the compliance with the convergence criteria: a. Price stability: consumer price inflation rate; b. Sound & sustainable public finance: Government Deficit & Debt as % of GDP; c. Long term interest stability: Long-term interest rate; d. Exchange rate stability: deviation from a central rate.

Procedures: (1) Ordinary legislative procedure-CODECISION: EU’s standard decision-making procedure is known as OLP. This means that the directly elected European Parliament hs 2 approve EU legislation together with the Council (the governments of the 28 EU countries). (2) CONSULTATION As a legislative procedure-The European Parliament may approve or reject a legislative proposal, or propose amendments 2 it. This procedure is now applicable in a limited number od legislative areas, such as internal market exemptions & competition law. As a non-legislative procedure – parliament’s consultation is also required, as a nonlegislative procedure. (3) CONSENT: As a legislative procedure – The scope 4 the application of the procedure was extended by all subsequent modifications of the Treaties. It is 2 be used also when new legislation on combating discrimination is being adopted & it now gives the European Parliament a veto. As a non-legislative procedure – It usually applies 2 the ratification of certain agreements negotiated by the European Union.

Legislation: 1: EU treatis: rule of law; it sets out EU objectives, rules 4 institutions, how decisions R made & relationship between EU & MS. 2: regulations: must be applied; adopts by council. directives:  sets a goal that all MS must achieve & each country decides how; adopted by Comission; decisions: binding 2 whom it’s addressed (country/company) directly applicated. reccomendation: not binding; opinions: instruments that allows the institutions 2 make a statement in a non-binding fashion. 

Free movement of goods issues: technical barriers 2 trade; Approximation of laws: standardization & certification policy; Elimination of fiscal frontiers; Intellectual property rights Principles of the free movement of goods: Non-discrimination; Mutual recognition principle: prevent the use of technical barriers 2 trade & is relevant 4 the standardization & certification policy o Mutual recognition & technical barriers: A Member State may not prohibit the sale on its territory of products which R lawfully produced &/or lawfully marketed in another Member State, even where those products were manufactured in accordance 2 technical rules or quality descriptions that differ from those required of its own goods o Harmonized sectors – provide a clear & predictable legal framework 4 businesses; Dassonville Test: all trading rules enacted by Member States which R capable of hindering, directly or indirectly, actually or potentially, intra-community trade R 2 be considered as measures having an effect equivalent 2 quantitative restrictions; Reverse burden of proof: making it more difficult 4 a member state 2 deny the marketing of products that R already accepted in another Member State; Proportionality: in the absence of harmonized Community rules the Member States retain the power 2 lay down, rules governing the composition, manufacture, after packaging, & presentation of, 4 example, foodstuffs. However, they R required 2 admit 2 their territory goods lawfully produced & marketed in the other Member States. 
Treaty of Rome (EEC): “common market”; Free movement of workers, services, capital (4 freedoms) + EEC provisions on competition policy and state aids; Single European Act (SEA)–1986:SM“area without internal frontiers in which the free movement of goods, persons, services and capital is ensured”-three areas: 1) Physical barriers: frontiers 2) Fiscal barriers: different tax systems, tax rates 3) Technical barriers: technical standards as indicator of product quality, health and environmental standards, company law…;Solutions: strong reliance on “mutual recognition”; general rule of decision-making Treaty of Maastricht: Added new EU competences in areas relevant to the Single Market such as consumer protection and trans-European networks; Created the concept of European citizenship Treaty of Lisbon: Gives the EU the power to make laws to remove barriers to the 4Freedoms or distortions of competition, created by diverging national laws; Laws can set minimum standards on which the Member States can improve; “approximate” or harmonize a particular area; or codify the Court’s existing jurisprudence into legislative form. Single European Act II – 2010:Business mobility; Digital economy;Consumer confidence The Single Market Strategy – 2015: Enabling the balanced development of the collaborative economy; Helping SMEs and start-ups to grow; Making the market without borders for services a practical reality;Preventing discrimination of consumers and entrepreneurs; Modernizing our standards system; Consolidating Europe’s intellectual property framework; Strengthening the Single Market for goods 

TASKS ECB: Defining Eurosystem policies: This includes the definition of price stability, how inflationary risks are analyzed,etc; Deciding, coordinating and monitoring the monetary policy operations: the ECB instructs the NCBs on the details of the required operations and checks their successful execution; Regulatory body/Adopting legal acts; Authorizing the issuance of banknotes; Interventions on the foreign exchange markets; Int and European cooperation. TASKS NCBs: Execution of monetary policy operations: NBCs carry out the actual transactions, such as providing the commercial banks with central bank money; Operational management of the ECB’s foreign reserves; Management of their own foreign reserves; Operation and supervision of payment systems; Joint issuance of banknotes together with the ECB; Collection of statistics and providing assistance to the ECB; Functions outside the European System of Central Banks (ESCB). ECB; Eurosystem INDEP: Indep facilitates the pursuit of price stability. Functional indep: provides the CB with the necessary means and instruments to achieve the price stability objective, independently of any other authority; Institutional indep: prohibit the ECB, the NCBs and members of their decisionmaking bodies from seeking or taking instructions from Community institutions or bodies; Personal indep: security of tenure for members of the ECB’s decision-making bodies further safeguards CB indep; Financial indep: The ECB and the NCBs must be able to autonomously avail themselves of sufficient financial resources to fulfill their mandates. The ECB has its own capital, subscribed and paid up by the NCBs. It also has its own budget independent from that of the other European institutions. ECB;Eurosystem ACCOUNTABILITY: Accountability: the exclusive competence for the monetary policy of the euro area. Eurosystem is entrusted with monetary sovereignty. ECB and Eurosystem are held accountable to the citizens and their democratically elected representatives, in order to balance the substantial degree of independence that it has been granted. Reporting: publications and press conferences: reporting requirements for the ECB in the Treaty. Public speeches and testimonies: members of the Governing Council deliver numerous speeches and give interviews throughout the euro area in order to explain the ECB’s policies to the public. Financial controls: accounts of the ECB and NCBs are also subject, to the audit review by indep external auditors recommended by the Governing Council and approved by the EU Council.

In case of European Union, EMU involves the coordination of economic & fiscal policies, a common m1tary policy, & a common currency, the euro. Whilst all 27 EU MS take part in the economic union, some countries have taken integration further & adopted the euro, Together, these countries make up the euro area.
EMU refers 2: An independent m1tary policy run by the European Central Bank (ECB); The single currency & the euro area; Coordination of economic policy-making between Member States; Coordination of fiscal policies, notably through limits on government debt & deficit. EMU goal is based on 3 comp1nts: an integrated Community m1tary system; an institutional structure, with a European Central Bank @ its heart; a single currency, the Euro, replacing present national currencies in all the participating Member States. EMU involves the following economic activities: implementing an effective m1tary policy 4 the euro area with the objective of price stability; coordinating fiscal & other economic policies in MS; ensuring the smooth operation of the single market. Implementing an effective m1tary policy in EMU: single m1tary policy (decisions made, independently, by the ECB Governing Council – 4 the Euro Area); NCB & government of the members states outside Euro Area coordinates m1tary policy with ECB m1tary policy decisions. Mechanisms of coordination refers 2: Coordinating fiscal policies in MS: Stability & Growth Pact (SGP) – regular national stability plans or euro area members & convergence programs 4 non-euro area MS; Coordinating economic policies in Member States: European Semester; through Broad Economic Guideline; annual update; policy recommendations…
ESCB=ECB+27NCBs; Eurosystem=ECB+19 NCBs(euro area). TASKS EUROSYSTEM:M1tary policy: defining & implementing the m1tary policy of the euro area; Foreign exchange operations: foreign exchange operations influence exchange rates & domestic liquidity conditions; both R important variables 4 m1tary policy. Promote smooth operation of payment systems; Hold & manage foreign reserves: ECB hs sufficient liquidity 2 conduct its foreign exchange operations. The ECB’s foreign reserves R currently managed in a decentralized manner by the NCBs that opt 2 take part in operational ECB foreign reserve management activities.

Digital Single Market Strategy–2015: Creating the right conditions for digital networks and services to flourish; Maximizing the growth potential of our European Digital Economy 
Free movement of services Right 2 establishment: The right 2 establishment includes the right 2 take up & pursue activities as a selfemployed person & 2 set up & manage undertakings in any Member State, 4 a permanent activity of a stable & continuous nature, under the same conditions as those laid down by the law of the Member State concerned regarding establishment 4 its own nationals. Freedom 2 provide services: Freedom 2 provide services applies 2 all of those services normally provided 4 remuneration, insofar as they R not governed by the provisions relating 2 the freedom of movement of goods, capital & persons. MARKET ACCESS APPROACH Refers to the assessment whether the measure is, despite being non-discriminatory, an obstacle to free movement.; Mutual recognition in the area of service means that the service provider is able to provide services in another Member State if he lawfully provides them in his home MS; Restrictions on freedom of establishment and free movement of services may include: rules restricting the number of establishments in a particular area (residence requirement and authorization requirements) Free movement of workers: four areas I. The right to enter the country – entry can be denied on certain limited ground relating to public protection II. The right to reside: EU nationals have the right to reside in the EU if they are working, seeking work, self-employed, studying, or self-supporting III. The right to work – EU nationals are entitled to work in the MEMBER STATES on the same
basis as HOST MEMBER STATE nationals IV. The right to equal treatment, and in particular to access benefits and services: EU nationals who are resident in a Member State are broadly entitled to access benefits and public services on the same basis as Member State nationals;
Free movement covers the right to enter and circulate within the territory of another Member
State, as well as the right to stay there, to work and live under certain conditions, after occupying a position of work. SCHENGEN AGREEMENT as part of an intergovernmental cooperation agreement five States (Belgium, France, Luxembourg, Netherlands and Germany) signed the Schengen Agreements (1985) and their implementation convention (1990)
With the Schengen Area the signatory States abolished their internal borders in exchange for a single external border on which entry controls were made according to identical procedures.

Strict conditions for membership (Copenhagen Criteria – initially defined in 1993) aiming to ensure that new members are admitted only when they are fully able to take on the obligations of Eu membership. New members are admitted only when they can demonstrate they will be able to play their part fully as members: Complying with all the EU’s standards and rules; Having the consent of the EU institutions and EU member states; Having the consent of their citizens – as expressed through approval in their national parliament or by referendum.
Acceding countries–EU membership terms agreed – waiting for ratification by all MS to join. Candidate countries– Still negotiating – or waiting to start (Albania, FYROM, Iceland, Montenegro, Serbia, Turkey) Potential candidates – They were promised the prospect of joining when they are ready (Bosnia and Herzegovina, Kosovo) Conditions for accession: Stable institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities; Functioning market economy and the capacity to cope with competition and market forces in the EU; The ability to take on and implement effectively the obligations of membership, including adherence to the aims of political, economic and monetary union. Rule of Law: Every action taken by its founded-on treaties approved voluntarily and democratically by all EU member countries. All new countries joining the EU must also respect the rights and obligations enshrined in: The European Convention on Human Rights; The Charter of Fundamental Rights of the European Union….Their judiciary is independent and impartial. Their government and its officials and agents are accountable under the law and that political leaders and decision-makers take ma clear stance against corruption. The process by which laws are prepared, approved and enforced is transparent, efficient, and fair. Laws must be clear, publicized, stable, fair, and protect fundamental rights. Regional cooperation–is an essential element of stabilization and association–the process guiding the Western Balkan countries towards EU membership. 

Negotiations–candidate country–European Commission; European Commission monitors the candidate’s progress in applying EU legislation and meeting its other commitments, including any benchmark requirements; Membership negotiations cannot start until all EU governments agree, in the form of a unanimous decision by the EU Council, on a framework or mandate for negotiations with the candidate country. Screening – the Commission carries out a detailed examination, together with the candidate country, of each policy fields (chapter), to determine how well the country is prepared. Negotiating positions–before negotiations can start, the candidate country must submit its
position and the EU must adopt a common position. Closing the chapters – no negotiations on any individual chapter are closed until every EU government is satisfied with the candidate’s progress in that policy field, as analyzed by the Commission. Accession treaty – this is the document that cements the country’s membership of the EU. It contains the detailed terms and conditions of membership, all transitional arrangements and deadlines, as well as details of financial arrangements and any safeguard clauses. Once the treaty is signed, however, the candidate becomes an acceding country. This means it is expected to become a full EU member on the date laid down in the treaty, providing the treaty has been ratified.
Western Balkans: The EU’s relations with the Western Balkans countries take place within a special framework
known as the stabilization and association process. Aims: Stabilizing the countries politically and encouraging their swift transition to a market
economy; Promoting regional cooperation; Eventual membership of the EU.

Competition Policy – Purpose: Provisions of the Treaties – competition policy creates a system ensuring that competition in the internal market is not distorted; Competition Policy Report – basic principles “an open market with free competition” Competition Policy: Encourage industrial efficiency, optimal allocation of resources; Need competitive home market in order to compete worldwide; Prevent: price fixing, market share cartels, abuse of dominant position, and anticompetitive mergers and state monopolies/aid; Internal market essential (condition for development of efficient and competitive industries) European Union Law: (main objectives of European competition policy) Functional single market for the benefit of producers and consumers; “Level playing field” – equality of competition, prevent market power; Promote efficiency to ensure firms rationalize their production and distribution Competition Policy – 3 pillars: ANTITRUST – restrictive agreements and concerted practices; MERGER CONTROL – abuse of a dominant position and control of mergers; STATE AID – undue state intervention