European Union Intro Tomas Cahlik. Outline Deepening Deepening Enlargement Enlargement Transition in the Central and East European Countries Transition.

European UnionEuropean Union Intro Intro

Tomas CahlikTomas Cahlik

OutlineOutline DeepeningDeepening EnlargementEnlargement Transition in the Central and Transition in the Central and East European CountriesEast European Countries EU Development since EU Development since 1990s1990s US – EU – EMU – Japan US – EU – EMU – Japan

Since WWII, two basic Since WWII, two basic processes have been processes have been forming Europe:forming Europe:EU DeepeningEU DeepeningEU EnlargementEU Enlargement

EU Deepening:EU Deepening: From the Sectoral Integration in From the Sectoral Integration in

the European Coal and Steel the European Coal and Steel Community (ECSC) and Euratom Community (ECSC) and Euratom to:to:

Free Trade AreaFree Trade Area Customs UnionCustoms Union Common Market (1992 ?)Common Market (1992 ?) Full Economic Intergration Full Economic Intergration

(Eurozone 2002 ?)(Eurozone 2002 ?) Full Political Integration ?Full Political Integration ?

IntroductionIntroduction EU Enlargement:EU Enlargement:

1957: six founding members: Belgium, 1957: six founding members: Belgium, France, Germany, Italy, Luxembourg and France, Germany, Italy, Luxembourg and the Netherlandsthe Netherlands

1973: Denmark, Ireland and the United 1973: Denmark, Ireland and the United KingdomKingdom

1981: Greece1981: Greece 1986: 1986: Portugal and SpainPortugal and Spain 1995: 1995: Austria, Finland and SwedenAustria, Finland and Sweden 2004: 8 former socialist countries + 2004: 8 former socialist countries +

Cyprus and MaltaCyprus and Malta 2007: Romania, Bulgaria2007: Romania, Bulgaria Farther countries are on the waiting listFarther countries are on the waiting list

Since 1989, the third Since 1989, the third process process has has added:added: The Transition of Central The Transition of Central and East European and East European Countries (CEECc) from Countries (CEECc) from totalitarian dictatorships to totalitarian dictatorships to liberal democraciesliberal democracies

Transition in the CEECsTransition in the CEECs How it started?How it started?

The Collapse of the Soviet The Collapse of the Soviet Union (as a fundamental Union (as a fundamental change in external conditions)change in external conditions)++

The Support of PopulationThe Support of PopulationOpened the Window of Opened the Window of Opportunity forOpportunity for

The Leading Forces to The Leading Forces to remove the communist leadersremove the communist leaders

EU Development since EU Development since 1990s1990s

In the 1st half of the 90s, In the 1st half of the 90s, EU slowly accepted the EU slowly accepted the

idea for the eastern idea for the eastern enlargement enlargement

Geo-political costs and Geo-political costs and benefitsbenefits

Economic costs and benefitsEconomic costs and benefits Normative costs and Normative costs and

benefitsbenefits Enthusiasm for joining the Enthusiasm for joining the

EU was higher in the EU was higher in the CEECs in that timeCEECs in that time

EU Development since EU Development since 1990s1990s

EU policies have always EU policies have always been reflecting and been reflecting and influencing the processes influencing the processes of enlargement and of enlargement and deepening deepening

Analyses of changes in EU Analyses of changes in EU policies gives us the basic policies gives us the basic information about those information about those processes themselvesprocesses themselves

EU Development since EU Development since 1990s1990s

EU External PoliciesEU External Policies Enlargement PolicyEnlargement Policy Trade PolicyTrade Policy Development PolicyDevelopment Policy CFSP – Common Foreign and CFSP – Common Foreign and

Security PolicySecurity Policy

EU Development since EU Development since 1990s1990s

Enlargement Policy since Enlargement Policy since 1990s:1990s: Copenhagen Criteria – 1993 – for Copenhagen Criteria – 1993 – for

EU accession:EU accession: Political CriterionPolitical Criterion Economic CriterionEconomic Criterion Criterion concerning adoption of Criterion concerning adoption of

the Community „acquis“the Community „acquis“

EU Development since EU Development since 1990s1990s

Selected areas for EU Selected areas for EU Internal PoliciesInternal Policies Internal MarketInternal Market EMU (Economic and Monetary EMU (Economic and Monetary

Union)Union) EU Budget and TaxationEU Budget and Taxation

EU Development since EU Development since 1990s1990s

Internal Market – the main Internal Market – the main achievement of the EUachievement of the EU Indicator of its importance for the Indicator of its importance for the

EU: First four of the 31 negotiating EU: First four of the 31 negotiating chapters in the enlargement chapters in the enlargement negotiations were about 4 basic negotiations were about 4 basic freedoms on the internal market: freedoms on the internal market: Free movement of goodsFree movement of goods Free movement of personsFree movement of persons Free movement of servicesFree movement of services Free movement of capitalFree movement of capital

EU Development since EU Development since 1990s1990s

EMU EMU The Eurozone: 16 member The Eurozone: 16 member

states of the EU that have a states of the EU that have a common currency (the Euro) common currency (the Euro) and a common monetary and a common monetary policypolicy

EU Development since EU Development since 1990s1990s

EMU EMU Maastrich criteria for Maastrich criteria for

accesion into the Eurozone: accesion into the Eurozone: Low inflationLow inflation Low interest rateLow interest rate Low public deficitLow public deficit Low public debtLow public debt 2 years membership in the ERM 2 years membership in the ERM

II (practically fixing of the II (practically fixing of the exchange rate of domestic exchange rate of domestic curency to Euro)curency to Euro)

EU Development since EU Development since 1990s1990s

EU BudgetEU Budget Relatively low in comparison Relatively low in comparison

with the USA federal budgetwith the USA federal budget Multianual financial framework Multianual financial framework

2007-20132007-2013 Main outlay categoriesMain outlay categories

Sustainable growthSustainable growth Competitiveness for growth and employmentCompetitiveness for growth and employment Cohesion for growth and employmentCohesion for growth and employment

Preservation and management of natural resourcesPreservation and management of natural resources Citizenship, freedom, security and justiceCitizenship, freedom, security and justice The European Union as a global partnerThe European Union as a global partner