Sovereignty Bargains of Romania's EU Integration Sarah Musaev Senior Thesis Spring 2014 - Professor Haegel American University of Paris Sovereignty Bargains of Romania's EU Integration i “ Europe ? Give me a name and a phone number !” Henry Kissinger
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Sovereignty Bargains of Romania's EU Integration
Sarah Musaev
Senior ThesisSpring 2014 - Professor HaegelAmerican University of Paris
protection, maritime policy, fisheries, trade, research and education, science and
technology, employment, and regional development. The main programs imagined, in
this context, aims to: develop civil society, local cooperation, cultural and educational
exchanges, free trade, adjoin international financial institutions such European
Investment Bank (EIB) and European Bank for Reconstruction and Development
(EBRD).
Likewise, Romania's initiative was established as well as a new structure of
cooperation, the Black Sea Forum for Dialogue and Partnership, which proved to be
unsuccessful. Unfortunately, initiatives aimed at the Black Sea focused more on
Georgia rather than other Caucasus states. In terms of concrete energy there was the
Baku Initiative, which aimed at better cooperation between countries in the region and
the European Union to ensure a mutual beneficial energy security program INOGATE
(Interstate Oil and Gas pipelines to Europe). This plan provides a structured blueprint
for transit energy from Central Asia and the Caspian Sea to the European Union and
the TRACECA program (transport Corridor Europe Caucasus Central Asia), cogitating
the development of infrastructure: transport (road, rail, air and sea) between Central
Asia and Europe. These initiatives are central axis of European policy in the area, in
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addition to various pipeline projects, with the particular territories of Georgia and
Azerbaijan. Of these the most important is the Nabucco project, which aims to connect
the Baku - Erzurum region (in some versions of the plan include pipeline connections
from Tabriz - Erzurum) with a European projection route through Romanian, Hungarian
and Austrian territories.
The main weakness of the European Union's position in the region lies in the fact
that it did not differentiate its policy with each of the three countries involved (it took a
rather general approach), given that the situation and the position of each state is
different (what can be said about every Member State in the Union). This inconsistency
is aims to mask the discomfort of European institutions in adopt a position that would
favor one side or another (especially in the case of Nagorno-Karabakh, but also in the
Russian-Georgian conflict), in efforts to maintain cordial relations with all actors involved
and to benefit from the presumption of impartiality. However in reality, even Member
States embrace contradictory positions.
The only aspect over which the European Union has an advantage over is the
fact that it signed a "Partnership and Cooperation Agreement" with Armenia and
Azerbaijan (in 1996, which entered into force in 1999). Likewise, it entered into a "Joint
Action Plan" with Georgia (in 2006) within the European Neighborhood agreement,
which was considered by the administration in Tbilisi as a first step towards joining the
European Union.
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In the case of Azerbaijan, the Plan of Action was signed in November of 2006,
while for Armenia there are ongoing discussions to sign a similar agreement. However,
the European Neighborhood Policy does not currently have a satisfactory framework for
furthering the development of relations with those countries.
Regarding the relationship with Azerbaijan, the EU established foundational
prerequisites, a first step, for a more concrete EU involvement in the region. Bilateral
relations between Romania and Azerbaijan have been consistently good since the
Caucasian state independence of 1991; Romania was the second country to recognize
Azerbaijan as a sovereign state after Turkey.
With the Romanian accession to the European Union, the good relations
between the two countries have been transferred as well as the EU's relations with the
partnering Caucasian states. Given that Romania is, at this time, the Union's
easternmost border, the Unions interests are to have an active policy in the Black Sea
region and in the vicinity of the European Union. The potential transfer of good
cooperation with Azerbaijan across the EU could be a first real contribution from the
Romanian state, which would clarify and expand EU foreign policy in the Caucasus
region. Good political relations with Romania and Azerbaijan in general, with the
countries of Central and Eastern Europe, are assured means for good economic and
political relations. The European Union will essentially win alliance with Azeri state,
making this a guarantee in a policy to promote international law and to restore the
territorial integrity of Azerbaijan.
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EU's interest in the South Caucasus refers to achieving political and economic
stability, peace building and conflict elimination of potential expansion, to maintain a
free transit area and even constructing a free economic zone in the region.
Strengthening democratic institutions is just one of the tools to achieve these regional
objectives. To satisfy their own interests, the EU should identify the main pivot, which is
Azerbaijan. Therefore, it must have a special political relationship built with the Azeri
state. The main factor promoting this policy is to find a consistent strategy to solve the
crisis in Nagorno –Karabakh, on the principles of territorial integrity and national self-
determination. It is vital to keep in mind that Azerbaijan is the most economically
developed country in the region and has the most potential for development in the area.
An imperative role for concentrating European states and initiating the integration
process in its current sense is awarded to Jean Monnet, due to which the first steps
were made in order to achieve a new European unity. The acting head of the National
Organization of planning in France, proposed that the production of coal and steel in
France and Germany id to be administered by a supranational body. On 9 May 1950,
Robert Schuman, French Foreign Minister launched a statement inspired by Jean
Monnet, proposing the creation of a market for coal and steel, to be conducted
according to national methods involving a rupture of traditional schemes between
states. Achieving this market was a first step towards the development that we know
today for European countries. The system created by the three treaties (ECSC, EEC,
EAEC) developed in two main directions. The first direction considered improving
Sovereignty Bargains of Romania's EU Integration
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community institutions, and the second followed the expansion Communities by
attracting new member states.
Black sea region
The Black Sea region has a strategic importance that is given to the rich natural
resources, particularly oil and gas that has a potential market of over 350 million
consumers. The cumulative trade region accounts for over 5% of the world's trade. The
strategic component of the region has increased in recent years due to the outbreak of
anti-terrorist campaigns, and the Unites States is also interested in developments in the
region; while the European Union assists the countries of the area due to the New
Neighborhood Policy (ENP).
The evolution of economic cooperation in the Black Sea region can be divided
into three stages:
- The initial formation which lacked results due to unclear organization which
lasted until the meeting in Bucharest in 1996, when foreign ministers adopted a "Plan of
Action" which as a result improved cooperation;
- The introduction of the Ministerial Troika system input, during which began the
joint financing of the Permanent's International Secretariat (PERMIS) from Istanbul and
intensified meetings at all levels. In June 1998, in Yalta, was the signing of the "Charter
of the BSEC"(black sea economic cooperation).
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- The final stage was the adoption of regional organization characteristics.
Interests in Romania also include a corridor for closer Europe-Asia relations; not
only considering necessary energy supply but also that the Caucasus-Caspian region
may eventually become one of the most dynamic economic areas of the world, which
would result in massive revenues for the entire zone including the TRACECA countries.
Romania has many bilateral advantages thus being a center of interest for the
international community: it has direct rail links with all countries of the CIS; it provides a
direct connection with Central Asian countries via Iran and Turkey by the ferry from
Constanta to Samsun; it has the largest and best equipped port on the Black Sea; it has
a great underused capacity in the refining and petrochemical industries; it is a potential
candidate for political, economic integration and European security.
Statistics show that the EU has exported to countries in Central and Eastern
Europe more than it imported from there. However, employment in these countries
covers basic gaps in the labor market in the West. Romania has highly qualified
specialists employed in IT companies in Germany and other countries, and many young
men and women in Romania provide operation services in hospitals, hotels and
restaurants, but also in other countries such as Italy and Portugal. Moreover, Romania
has become a major exporter of skilled and less skilled labor.
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EU AN NATO INTERESTS ARE STRATEGIC GEOPOLITICAL
After the events of September 11, US pushed western European countries to
increase their inclinations to be more permeable for imports of labor from the candidate
countries –because there was indeed a need for such, especially considering the Bush
administration and the Iraq war. There existed objective and subjective elements which
in essence strengthened the Romanian-American relationship (at a political level) to
fluctuate due to the strategic opportunity for the United States who as a result pushed
for a rapid admission to NATO.
Romania applied to join NATO since 1994 (shortly after the fall of communism)
but was constantly critiqued and denied admission due to the ongoing domestic
complications. From every angle it was viewed as an unstable country that did could not
qualify due to the lack of standards (military, economic, political, internal corruption,
etc.). In January 2001 began the evaluation for the candidacy of Romania run by
general Popescu and secretaries of state. While the conclusions did not seem favorable
for its admission “we are politically unstable, we do not have money, as for the money
we were expecting from the Americans for concrete expenses were already spent in
other areas”- Popescu. Therefore the only value that Romania had was the massive
support for NATO admission by the US.
Shortly after the shameful report was released Secretary General Edgar Buckley
in January 2001 claimed “that despite the domestic instability, Romania will surely be
admitted in the Alliance by the year 2004”. The other candidate states which were
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Estonia and Lithuania were on a promising path of fulfilling the preconditions of NATO,
while their strategic ramifications for their accessions did not seem beneficial. Romania
and Bulgaria had a contrary problem, the incapacity of fulfilling the conditions while their
geopolitical location at the time seemed of more importance due to the Iraq war.
On the one hand, the U.S. presidential teams promoted accession by presenting
their approaches regarding the Middle East situation, including the Israeli – Palestinian
conflict (through direct dialogue or " proxies " ); their interest in maintaining "small fires"
of extra space conflict - European interest " military - industrial complex " U.S. - as an
outlet for the sale of military equipment . Moreover, the conflict in Iraq (the first) gave
Romania the opportunity to capitalize on their position at the UN and help in negotiating
resolutions in August 1990 and the following months. The second conflict allowed
Romania to promote their geostrategic position through the Cogalniceanu
base in Dobrogea making it readily available to Americans .
It was found that the number of troops deployed in Iraq was the most
significant, but sometimes it was more important political support , logistics
and intelligence .
On the other hand, some developments in post- revolution Romania did not
initially convince Americans that Romania can be a reliable partner in Eastern Europe:
as it was recently out of communism on the " left side" of history (there were numerous
allegations of crypto- neo –communism sentiment for some governments); low
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maintenance of structures of the security; failure to follow bi -partisan politics (power -
opposition ) in large projects of foreign policy; the partial reservations in the democratic
party that expressed opposition in connection with the bombing of Belgrade; Hungarian
lobby oppositions in the U.S. and pressures in Budapest; as well as the economic and
military instability, etc. . It should be noted, however, that despite these unfavorable
fluctuations, at the political level, there was a very intense relationship and effective
military level between the two countries (Mil -to –Mil programs).
Shortly after a reevaluation and push from the Bush administration, Great Britain as
well as other countries began to be more inclined for the admission (though their
sentiments were not exactly enthusiastic).
- changed nato port for the war----- in 2001 the perspective changed to a more favorable one for admition due to the events that were occurring ( bush admin- Iraq war) Ro admitted to nato- to use Romanian airbase in dobroja 2 hrs to bagdad. Article page 32 even better article on Romania nato irak - http://nastase.wordpress.com/2012/09/25/lumea-americanii-si-noi-iv-razboiul-din-irak-2003-2011/
-
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Chapter 2- Romania’s Overlooked Domestic Concerns
- Depite all of the EU’s interests to proceeded with the acceleration of integration to the eu they overlooked the major domestic structural problems that Romania has-
- Major overlooked factors overlooked by decision makers in the eu council was the cultural and social ethicals readiness of Romania. A serious feat that was overlooked- romanias internal problems such as corruption, money laundering ta evasion.
- http://store.ectap.ro/articole/529_ro.pdf - therefore not accepted in the interest of Romania- as it is not up to par
with nearly any of the qualifications of the Lisbon treaty –
Chapter 3- Romania’s Interests
Free movement of persons (workers) within the Member States of the European
Union is a mutually advantageous feat that became fully implemented on January 1st
2014. Meaning that Romanian's are now removed from border control within the
European community, and are no longer subjected to special requirements or
formalities (in theory any European citizen benefits from this). Ultimately, citizens of new
EU members (including Romania) were subject to transitional measures, which limited
their access to the labor market of the initial Member States for a period not exceeding
seven years. Transitional arrangements for the free movement of workers were agreed
between old and new Member States, maintaining the prior accession systems, in which
a citizen of a future member would need a work permit to work in the EU.
ADD MORE ABOUT JAN 1st working rights
Free Movement of goods is also among the many gains of Romanian integration.
The Treaty establishing the EEC signed in Rome to set up a common market that are
aimed to eliminate trade barriers between Member States. This act sought the greatest
possible liberalization of goods trade between the signatory states through a customs
union. A common market shall be progressively established during a transitional period
of twelve years for Romania. The community is based on a customs union comprising
all trade in goods, which shall involve the prohibition between Member States of
customs duties on imports and exports, and of all charges having equivalent effect on
the adoption of a common customs tariff in their relations. Provisions shall apply to
products originating in Member States and to products coming from excluded countries.
Products from excluded countries are considered free circulation in a Member
State if the import formalities have been fulfilled and were charged within the Member
Sovereignty Bargains of Romania's EU Integration
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State. In the case of customs duties and charges with an equivalent effect who have not
received a full or partial refund of these taxes and charges. Within the first year of this
Treaty, the Commission sets out methods of taking into account the need to reduce
formalities imposed on trade as much as possible. By the end of the first year of the
entry into force of the Treaty, the Commission shall, in trade between Member States,
the provisions applicable to goods originating in another Member State, to manufacture
products which were used which were exempted in the exporting Member State
customs duties and charges having equivalent effect or which have benefited from a
total or partial drawback of such duties or charges.
Freedom to provide services, Member States must ensure that the right of
establishment and freedom to provide services throughout the EU is not hampered by
national legislation. In some sectors, the acquis prescribes harmonized rules which
must be observed to the internal market, this concerns mainly the financial sector
(banking, insurance, investment services and securities markets ) but also some
specific professions (craftsmen , farmers, traders) . Also, follow harmonized rules on
personal data protection and certain information society services.
Free movement of capital, Member States must remove all restrictions in national
legislation on capital movements between them (with some exceptions), and adopt EU
rules to guarantee the proper functioning of cross- border payments and transfers of all
Sovereignty Bargains of Romania's EU Integration
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forms of capital. The acquis also includes harmonized rules on payment systems.
Laundering directives establish money laundering as a crime. They require financial
institutions to identify and know their customers, keep appropriate records and report
any suspicions of money laundering (which is currently not being done in RO).
Directives are addressed also to the work of auditors, accountants, notaries and
lawyers, casinos, real estate agents and certain operators who trade valuables
transactions involving large amounts. It is necessary to have an adequate
implementation capacity.
Chapter 4- Romania’s Consequences
However one would try to put everything in a balance it looks as though Romania
is not exactly a winner in the game, as the consequences following its addition in the EU
outweighed the few profitable aspects of this bargain. Two incredibly prominent
consequences that Romania has been confronted with since 2007 were: the drastic
decline of agriculture (due to imposed EU sanctions) as well as a visible decline of
sovereignty.
AGRICULTURE
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Asymmetric concessions of the agreement with the EU protected
many agricultural products from competition with those of Romania, the
CEFTA brought significant deficits in this area of trade, Romania's foreign
trade products being less competitive than the main partners because of
the difference in productivity.
Imports of agricultural products from the EU represents about 7 % the
CEFTA area being 27.34 % of the total which goes to show that Romania
already has to deal with European competition through intermediaries
therefore passing tariff barriers. EU accession countries in the first wave
made agricultural trade deficit to worsen rapidly, as other comparative
advantages of Romania decline as well.
Romanian agriculture will not be able to face the rigors requirements
of the CAP without a strong state intervention to capitalize the sector in
the accession, although there are clear signs of carrying the increasingly
difficult rigors preconditions of CAP in Europe ( eg the Netherlands ). This
will not change because of the strong lobbying exerted by EU producers.
It is possible, however, that EU farmers will be drawn to this, with the
accession of Romania, in order to achieve an organic production on land
which rested more than 15 years. For example in Spain where, with the
entry into the EEC the income of producers doubled inconclusively.
Sovereignty Bargains of Romania's EU Integration
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Romania has the highest level of employment in agriculture standing at
27.9% .
The agriculture sector, whose production is based on small farms using
intensive labor, will have to face the largest restructuring of labor, so a good
part of the integration cost will be paid by those employed in agriculture.
Besides unemployment there may be psychological or transfer costs.
Needless to say, agriculture is nearly nonexistent due to EU imposed
sanctions as Romania entered as one of most important producers in Europe
and in less than 5 years it became one of the largest importers of agricultural
products in Europe. Thus, finding Romanian agriculture products today may
be considered a luxury.
-Sovereignty declines and conforms
Reactia anti-brussles - norways refusal (example) france germany- there exists an anti-eu sentiment. anti European climate that’s emerging throughout Europe because of beurocracy and lack of legitimacy.
-Changing the notion of sovereignty is a consequence of integration
No longer national all depend on brussles. European common defense is a falirue – no French or british wanted to give up their reign over defense issues-