Slide 1 Amy Medearis, Senior Economist Delegation of the European Commission to the United States From Europe to the Euro Amy Medearis Senior Economist,

Slide Slide 11Amy Medearis, Senior EconomistAmy Medearis, Senior EconomistDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States

From Europe to the EuroFrom Europe to the Euro

Amy MedearisSenior Economist, Economic and Financial Affairs Section

Delegation of the European Commission to the United States

Euro Challenge 2009 Faculty Orientation New York, NY

November 25, 2008

EUROPEAN UNIONDelegation of the European Commission

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 22

From Europe to the EuroFrom Europe to the Euro

- Brief HistoryThe Single MarketEnlargementThe Euro

- EU versus Euro Area

- Why Care?

Slide Slide 33Amy Medearis, Senior EconomistAmy Medearis, Senior EconomistDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States

A Brief History of the EU:A Brief History of the EU:Deepening and WideningDeepening and Widening

Political goals, Economic stepsPolitical goals, Economic steps

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 44

A Brief History of the European UnionA Brief History of the European Union

The original goal behind the integration of Europe was to prevent the devastating wars of the first half of the

twentieth century from ever happening again…

Dresden, Germany, 1945.

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 55

March 1957Rome TreatiesEuropean Economic Community (EEC)European Atomic Energy Community (EURATOM)

1950 2007

A Brief History of the European UnionA Brief History of the European Union

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 66

1973United Kingdom, Ireland and Demark

1950 2007

A Brief History of the European UnionA Brief History of the European Union

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 77

1981Greece

1950 2007

A Brief History of the European UnionA Brief History of the European Union

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 88

1986Spain and Portugal

1950 2007

Same year: the “Single European Act” was signed, revising the

Treaty of Rome and re-launching European

Integration and the completion of the internal market

A Brief History of the European UnionA Brief History of the European Union

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 99

1989Fall of the Berlin Wall

1950 2007

“Hidden enlargement” E. Germany

A Brief History of the European UnionA Brief History of the European Union

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1010

1992“Deadline” for completing the single market (Dec. 31, 1992)

1950 2007

A Brief History of the European UnionA Brief History of the European Union

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1111

1993Maastricht Treaty

1 2 3TREATIES

1950 2007

Treaty of European Unionestablished 3 pillars

of cooperation: Economic (EMU),Political, Judicial

A Brief History of the European UnionA Brief History of the European Union

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1212

1995Austria, Finland and Sweden

1950 2007

A Brief History of the European UnionA Brief History of the European Union

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1313

1999EURO launched

1950 2007

A Brief History of the European UnionA Brief History of the European Union

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1414

May 1, 2004CyprusThe Czech RepublicEstonia HungaryLatviaLithuaniaMaltaPolandThe Slovak RepublicSlovenia

Jan. 1, 2007RomaniaBulgaria

1999EURO launched

1950 2007

A Brief History of the European UnionA Brief History of the European Union

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1515

Decision-Making in the EUDecision-Making in the EU

European Commission

Council of the EU

European Parliament

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1616

The goals of EU enlargementThe goals of EU enlargement

To spread stability, peace, democracy, freedom

To make the EU stronger than the sum of its parts

To strengthen and sustain the European

social model/s To realize the potential of significant

economic opportunities in the form of a larger market

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1717

Economic Benefits and Challenges of EnlargementEconomic Benefits and Challenges of Enlargement

EU 27 100

Euro area 107Cyprus 91Slovenia 83Czech Republic 75Malta 74Hungary 64Slovakia 57Estonia 56Poland 51Lithuania 51Latvia 46Romania 34Bulgaria 33

It is estimated that It is estimated that the enlargement the enlargement of 2004 will have of 2004 will have added added

1.0%-1.8% per 1.0%-1.8% per year to the GDP of year to the GDP of the 10 new the 10 new Member States Member States (1994-2009), and a (1994-2009), and a cumulative 0.5-cumulative 0.5-0.7% to GDP of 0.7% to GDP of the EU-15.the EU-15.

2004 GDP per capita in PPS, EU25=1002004 GDP per capita in PPS, EU25=100

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1818

27 EU Member States (FYI)27 EU Member States (FYI)

Austria, Belgium, Bulgaria,Cyprus, Czech Republic,Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 1919

The Single MarketThe Single Market

Based on Four Freedoms:– Free movement of goods;– Free movement of capital;– Free movement of persons;– Free movement of services.

Impact: GDP boosted by nearly €900 billion over 10-year period 1992-2002 (over $1 trillion) and 2.5 million jobs created from the single market alone.

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2020

The Single MarketThe Single Market

More than a free trade area:• Free trade area: no tariffs on traded goods inside FTA• Customs Union (1968): FTA + common external tariff• Single (or Internal) Market (1992): breakdown of all

tariff and non-tariff barriers to trade and business

Benefits of the Single Market: increased prosperity; more jobs; easier

travel; more opportunities to live, work and study in other EU countries; wider choice of products and services; lower prices; less red tape; huge potential market

(economies of scale); easier to do business.

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2121

The Euro has boosted economic integration within the Euro Area (trade, foreign direct investment, and financial services)

The EuroThe Euro

One market, one money?

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2222

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2323

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2424

The euro area (13) versus EU (27)The euro area (13) versus EU (27)

Euro area:Euro area: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovakia*, Slovenia, Spain

EU Member States obliged to adopt EU Member States obliged to adopt the euro eventually:the euro eventually: Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Sweden

EU Member States with an “opt out” from adopting the euro: Denmark, UK

* Slovakia will adopt the euro 1/1/09

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2525

Why teach about the EU? The European economy? Why teach about the EU? The European economy? The Euro?The Euro?

1. Europe is a major player in the global economy

2. It is the most important trade and investment partner for the United States

3. Common challenges (e.g., related to globalization and ageing)

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2626

EU-US Economic RelationsEU-US Economic Relations

The European Union's 27 members represent just 7% of the world's population, but they account for more than one-fifth of

world trade.

– Transatlantic flows of trade and investment amount to around $1 billion a day

– jointly, US and EU global trade accounts for almost 40% of world tradethe largest bilateral trade partnership in the world!

– Together, EU and US make up nearly 40% of global output (GDP) and are drivers of global economic policy.

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2727

Common Interests and ProblemsCommon Interests and Problems

EU & US have common values in democratic government, human rights and market economics, and they are bound by addressing global challenges (i.e. security/terrorism & sustainable development)

Common economic issues, such as financial reform; ageing populations; need for budgetary savings; global competitiveness; immigration

Amy Medearis, Senior Economist, Economic and Financial Affairs SectionAmy Medearis, Senior Economist, Economic and Financial Affairs SectionDelegation of the European Commission to the United StatesDelegation of the European Commission to the United States Slide Slide 2828

FOR MORE INFO . . .FOR MORE INFO . . .

For additional resources to For additional resources to prepare for the Euro Challenge:prepare for the Euro Challenge:

www.euro-challenge.org

For more information on the For more information on the European Union in the USEuropean Union in the US, please , please visit: visit: www.eurunion.orgwww.eurunion.org

To access EUROPA, the To access EUROPA, the EU’s EU’s official web portalofficial web portal, please visit: , please visit: http://ec.europa.eu/http://ec.europa.eu/