European Union: Treaties, Institutions, and Key Milestones
Key European Organizations and Treaties
Treaty on European Union (TUE)
The Treaty on European Union, also known as the Maastricht Treaty, established the European Union and laid the groundwork for its political and economic integration.
European Economic Community (EEC)
The European Economic Community was a regional economic integration organization created by the Treaty of Rome in 1957. Its primary objective was to foster economic integration among its member states.
Organisation for Economic Co-operation and Development (OECD)
The Organisation for Economic Co-operation and Development is an intergovernmental economic organization with 38 member countries, founded in 1961 to stimulate economic progress and world trade.
European Coal and Steel Community (ECSC)
The European Coal and Steel Community was an organization of six European countries created after World War II to regulate industrial production under a centralized authority. It was the first step towards European integration.
European Atomic Energy Community (EURATOM)
EURATOM is an international organization established by the Treaty of Rome in 1957 to coordinate member states’ research programs for the peaceful use of nuclear energy.
Objectives of the Treaty of Rome
The Treaty of Rome had the political objective of achieving gradual integration among different member countries, primarily through the establishment of the European Economic Community (EEC) and EURATOM.
European Free Trade Association (EFTA)
The European Free Trade Association is a free trade area established in 1960 as an alternative to the EEC. Its integrated countries were: Sweden, Switzerland, Norway, Denmark, Austria, Portugal, and the United Kingdom.
The Common Market
The Common Market aimed for the free movement of people, capital, and services. However, it continued to suffer significant limitations in its early stages.
Causes of European Integration
The primary cause for the success of European integration was the significantly higher economic success achieved by the states of the EEC compared to those of EFTA.
Principal Political Problems of the EEC
The main political problem of the EEC was that Britain remained aloof from the integration process for a considerable period.
Schengen Agreement
The Schengen Agreement ensures the free movement of people and the gradual removal of internal borders between participating member states.
Maastricht Treaty Pillars
The Maastricht Treaty established a three-pillar structure for the European Union:
- 1st Pillar: European Communities (Supranational)
This pillar encompassed the existing EU treaties, supranational institutions, and the Union’s core competencies, including economic and monetary union, common agricultural policy, and common commercial policy.
- 2nd Pillar: Common Foreign and Security Policy (Intergovernmental)
This pillar focused on foreign policy and security policy, based on cooperation between national governments.
- 3rd Pillar: Justice and Home Affairs (Intergovernmental)
This pillar dealt with justice and home affairs, including the creation of Europol, aiming for cooperation in areas like asylum, immigration, and judicial cooperation in civil and criminal matters.
European Citizenship
European citizenship allows individuals to move and reside freely within EU countries. It also grants them the right to vote and be elected in their home state for European and local elections, regardless of their country of residence within the EU.
Key European Union Institutions
European Commission
The European Commission is a politically independent institution that represents the interests of the EU as a whole. It serves as the executive body of the Union, responsible for proposing legislation, enforcing EU law, and implementing policies.
European Parliament
The European Parliament is an institution that guarantees the participation of all EU citizens in their institutions. It is the legislative body of the EU, sharing legislative power with the Council of the European Union.
Council of the European Union
The Council of the European Union (often referred to as the EU Council) exercises a legislative function and is the main decision-making body of the Union, representing the governments of the member states.
Court of Justice of the European Union
The Court of Justice of the European Union ensures compliance with European standards and treaties. Its headquarters are located in Luxembourg.
Cohesion Fund
Established in 1994, the Cohesion Fund facilitates the transfer of financial resources between more affluent and less prosperous EU regions, aiming to reduce economic and social disparities.
EU Financial Resources
The European Union’s budget is financed through several key income sources:
- Agricultural Levies: Approximately 1% – 2% of income.
- Customs Duties: Approximately 10% of income.
- VAT-based Contributions: Approximately 15% of revenue.
- Gross National Income (GNI)-based Contributions: Approximately 75% of income.
Treaty Reform (Treaty of Lisbon)
The Treaty Reform, also known as the Treaty of Lisbon, was an agreement reached to replace the proposed EU Constitution, changing previous treaties and reorganizing institutions. It was approved in June 2007 and entered into force by December 2009.
Industrial Conversion
Industrial conversion refers to the process of transformation, modernization, or closure of industries to adapt them to changing economic realities and international competition, often due to obsolescence.
Spain and Portugal’s Accession to the EEC
Spain and Portugal acceded to the European Economic Community on June 12, 1985. Their integration brought several benefits:
- Integration into a large common market.
- Participation in a democratic political arena.
- Linking their future to all countries of Western Europe.
Euro Currency Introduction
The Euro currency was officially introduced on January 1, 2002, though national currencies like the Spanish Peseta remained in circulation until March 2002.
Advantages and Disadvantages of the Euro
The adoption of the Euro has meant being part of one of the most dynamic economic areas in the world. It has also contributed to a rise in the purchasing power of the population.