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EU ECONOMY LECTURE NO. 3

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111111History of European Integration (2)

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EU ECONOMY
LECTURE NO. 3

EU ECONOMYLECTURE NO. 3

Слайд 3111111
History of European Integration (2)

111111History of European Integration (2)

Слайд 4
1980–1989

The changing face of Europe

1980–1989The changing face of Europe

Слайд 5Difficult years 1973 - 1985
The oil crises of 1973 and

1979 had shaken the European economies. Thus, Europe in the

early 1980s had sunk into "Euro-slump" and "Euro-pessimism".
The EU was falling behind its competitors (notably Japan and the United States) in the new techologies and new products
Many sceptics thought at the time that the experiment of European integration was going to fail.



Difficult years 1973 - 1985The oil crises of 1973 and 1979 had shaken the European economies. Thus,

Слайд 6European integration needs to regain momentum…
During the first decade of

its existence the Community had taken two important steps for

its economic integration:
the achievement of customs union, in July 1968, involving the abolition of customs duties and quantitative restrictions between Member States,
the establishment of a common customs tariff and the definition of a common agricultural policy necessary for the free movement of agricultural goods between Member States
However, intra-community trade within the customs union was far from free due to the existence of non-tariff barriers to trade.



European integration needs to regain momentum…During the first decade of its existence the Community had taken two

Слайд 7New ideas ….
In 1985, it has been declared that

in order to achieve the main objective of the EEC

Treaty, the creation of a single market, all internal European borders should be eliminated by the end of 1992. Therefore, the European Commission proposed a set of ideas on completing the internal market .

The amendments to the EEC Treaty required for the completion of the internal market. A new Treaty - "Single European Act" was proposed with significant changes to the Community decision-making process (qualified majority voting ).


New ideas …. In 1985, it has been declared that in order to achieve the main objective

Слайд 8EU on track again

The period of"eurosclerosis"/„europesimism”
was brought to an end

by the 1986 Single
European Act which re-launched the
drive

to integration by framing the single
market of the EEC.

EU on track againThe period of

Слайд 9Single European Act of 1986
The Single European Act (SEA) of

1986 was the first major revision of the 1957 Treaty

of Rome. Set an objective of establishing a Single Market by 1992. SEA reformed the decision making by extending majorty voting in place of unanimity. Measures were taken to shorten the legislative process. The SEA intended to remove barriers and to increase harmonisation and competitiveness among its countries.



Single European Act of 1986The Single European Act (SEA) of 1986 was the first major revision of

Слайд 10What does the Single Market mean?
The idea behind the

Single Market is to treat the EU as one territory

where people, money, goods and services flow freely to stimulate competition and trade, and improved efficiency.
Single European Act allowed for over 280 pieces of legislation to be passed to pave the way for one common law for the EU based on the principle of mutual recognition for laws and regulations of member states.
On 1 January 1993 internal border controls between EU countries were abolished and the European Single Market – based on the free movement of people, goods, services and capital- was launched.
What does the Single Market mean? The idea behind the Single Market is to treat the EU

Слайд 11„ERASMUS” programme launched !
In 1986 the EU launches the Erasmus

programme to fund university students wishing to study for up

to a year in another European Country.
In the past twenty years, over two million students[ have benefited from Erasmus grants,
The Programme is named after the Dutch philosopher Desiderius Erasmus of Rotterdam, known as an opponent of dogmatism, who lived and worked in many places in Europe to expand his knowledge and gain new insights.
„ERASMUS” programme launched !In 1986 the EU launches the Erasmus programme to fund university students wishing to

Слайд 13The collapse of Est – West divisions in Europe 1989/1990
In

1985, Mikhail Gorbachev became leader of the Soviet Union and

relaxed Communist strictures. The Soviet Union did not intervene as the Easten-bloc nations all abandoned dictatorial Communist rule by 1989/1990.
1989 – first democratic elections in Poland
1989 – fall of the Berlin Wall
1990 – unification of Germany
1991 – in the Balkans, Yugoslavia begins to break apart followed by a bloody civil war. The
EU unprepared to respond effectively to the crisis
in the Balkans.
The collapse of Est – West divisions in Europe 1989/1990In 1985, Mikhail Gorbachev became leader of the

Слайд 14Autumn of Nations 1989



Top left: Round Table talks in Warsaw
Top

right: Fall of the Berlin Wall
Middle left: Romanian Revolution
Middle right:Velvet

Revolution in Prague,

Bottom: Baltic Way in Estonian, Latvian
and Lithuanian SSR

Autumn of Nations 1989Top left: Round Table talks in WarsawTop right: Fall of the Berlin WallMiddle left:

Слайд 15The first EU „Eastern enlargement” 1990

In October 1990, Germany

was unified and therefore former East Germany became part of

the EU.

The first EU „Eastern enlargement” 1990 In October 1990, Germany was unified and therefore former East Germany

Слайд 16Treaty of Maastricht 1992
7 February 1992
The Treaty on European Union

is signed in Maastricht. It is a major EU milestone,

setting clear rules for the future single currency as well as for foreign and security policy and closer cooperation in justice and home affairs.
Under the treaty, the name ‘European Union’ officially replaces ‘European Community’.
Treaty of Maastricht 19927 February 1992The Treaty on European Union is signed in Maastricht. It is a

Слайд 17An impact of German reunification on deepening of European Integration

Political

context of an establisment of the EU common currency

Economic arguments

for introduction of EURO (strengthening of the internal market; transparency of prices; lower transaction costs etc.)
An impact of German reunification on deepening of European IntegrationPolitical context of an establisment of the EU

Слайд 18Establishing the European Single Market
1 January 1993


The single market and

its four
freedoms are established: the free movement of

goods, services, people and money is now reality.

More than 200 laws have been agreed since 1986 covering tax policy, business regulations, professional qualifications and other barriers to open frontiers.

The free movement of some services is delayed
Establishing the European Single Market1 January 1993The single market and its four freedoms are established: the free

Слайд 20Austria, Finland, Sweden join the EU 1995
1 January 1995

Austria,

Finland and Sweden join the EU. The 15 members now

cover almost the whole of western Europe.
Austria, Finland, Sweden join the EU 1995 1 January 1995Austria, Finland and Sweden join the EU. The

Слайд 21Schengen Agreement – no passpots needed
26 March 1995

The

Schengen Agreement takes effect in seven countries — Belgium, Germany,

Spain, France, Luxembourg, the Netherlands and Portugal. Travellers of any nationality can travel between all these countries without any passport control at the frontiers. Other countries have since joined the passport-free Schengen area.

Schengen Agreement – no passpots needed 26 March 1995 The Schengen Agreement takes effect in seven countries

Слайд 22Schengen Area


26 countries
(4 non-EU)

UK, Irelend –
opt-out

Romania, Cyprus
Bulgaria, Croatia-
will join in the
future

Schengen Area

Слайд 24Treaty of Amsterdam
17 June 1997

Signature of the Treaty of

Amsterdam. It builds on the achievements of the treaty from

Maastricht, laying down plans to reform EU institutions, to give Europe a stronger voice in the world, and to concentrate more resources on employment and the rights of citizens.
Treaty of Amsterdam 17 June 1997Signature of the Treaty of Amsterdam. It builds on the achievements of

Слайд 25Preparation for Enlargament to the East
13 December 1997

EU leaders

agree to start the process of membership negotiations with 10

countries of central and eastern Europe: Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia. The Mediterranean islands of Cyprus and Malta are also included. In 2000, Treaty changes agreed in Nice open the way for enlargement by reforming EU voting rules.
Preparation for Enlargament to the East 13 December 1997EU leaders agree to start the process of membership

Слайд 26EURO for commercial transactions
1 January 1999

The euro is introduced

in 11 countries (joined by Greece in 2001) for commercial

and financial transactions only. Notes and coins will come later. The euro countries are Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland. Denmark, Sweden and the United Kingdom decide to stay out for the time being.
EURO for commercial transactions 1 January 1999The euro is introduced in 11 countries (joined by Greece in

Слайд 27EURO
1 January 2002

Euro notes and coins arrive. Printing, minting

and distributing them in 12 countries is a major logistical

operation. More than 80 billion coins are involved. Notes are the same for all countries. Coins have one common face, giving the value, while the other carries a national emblem. All circulate freely. Using Finnish (or any other) euro coin to buy a Madrid metro ticket is something we take for granted.
EURO 1 January 2002Euro notes and coins arrive. Printing, minting and distributing them in 12 countries is

Слайд 29EURO notes and coins

EURO notes and coins

Слайд 31EUROPE UNITED: 10 new member
1 May 2004

Eight countries of central

and eastern Europe — the Czech Republic, Estonia, Latvia, Lithuania,

Hungary, Poland, Slovenia and Slovakia — join the EU, finally ending the division of Europe decided by the Great Powers 60 years earlier at Yalta. Cyprus and Malta also become members.
EUROPE UNITED: 10 new member1 May 2004Eight countries of central and eastern Europe — the Czech Republic,

Слайд 32Bulgaria and Romania in the EU 2007
1 January 2007

Two more

countries from eastern Europe, Bulgaria and Romania, now join the

EU, brining the number of member states to 27 countries. Croatia, the Former Yugoslav Republic of Macedonia and Turkey are also candidates for future membership.
Bulgaria and Romania in the EU 20071 January 2007Two more countries from eastern Europe, Bulgaria and Romania,

Слайд 33Treaty of Lisbon 2007
13 December 2007
The 27 EU countries sign

the Treaty of Lisbon, which amends the previous Treaties. It

is designed to make the EU more democratic, efficient and transparent, and thereby able to tackle global challenges such as climate change, security and sustainable development. The Treaty of Lisbon is ratified by all EU countries before entering into force on 1 December 2009.

Treaty of Lisbon 200713 December 2007The 27 EU countries sign the Treaty of Lisbon, which amends the

Слайд 34Changes in the EU decision making system
The Treaty of Lisbon

has expanded the use of qualified majority voting (QMV) in

the Council of Ministers by having it replace unanimity as the standard voting procedure in almost every policy area outside taxation and foreign policy.

Moreover, taking effect in 2014, the definition of a qualified majority will change: A qualified majority will be reached when at least 55% of all member states, who comprise at least 65% of EU citizens, vote in favour of a proposal.
Changes in the EU decision making systemThe Treaty of Lisbon has expanded the use of qualified majority

Слайд 35The Treaty of Lisbon - „NO” and „YES” Campaign
VOTE NO

VOTE YES
The Treaty of Lisbon - „NO” and „YES” CampaignVOTE NO

Слайд 37Financial Crisis 2008
September 2008

A major financial crisis hits the

world economy. The problems start with mortgage loans in the

United States. Several European banks also experience difficulties. The crisis leads to closer economic cooperation between EU countries.
Financial Crisis 2008 September 2008A major financial crisis hits the world economy. The problems start with mortgage

Слайд 39Croatia in the UE 2013
2013

The 2013 enlargement of the

European Union saw Croatia join the European Union as their

28th member state on 1 July 2013.

Croatia is after Slovenia the second former Yugoslav republic to join the European Union after a decade-long negotiation process.
Croatia in the UE 20132013 The 2013 enlargement of the European Union saw Croatia join the European

Слайд 44The European Flag


The European flag is the
Symbol not only

of the
European Union but also of
Europe's unity and

identity
in a wider sense.

The European flag consists of
12 golden stars in a circle on a blue background.
The stars symbolise the ideals of unity, solidarity and harmony among the peoples of Europe.

The number of stars has nothing to do with the number of member countries, though the circle is a symbol of unity.
The European FlagThe European flag is the Symbol not only of the European Union but also of

Слайд 45„Ode to Joy” - The European Anthem


The melody used to

symbolize the EU comes from the Ninth Symphony composed in

1823 by Ludwig Van Beethoven, when he set music to the "Ode to Joy", Friedrich von Schiller's lyrical verse from 1785.

The anthem symbolises not only the European Union but also Europe in a wider sense. The poem "Ode to Joy" expresses Schiller's idealistic vision of the human race becoming brothers - a vision Beethoven shared.


The European anthem is not intended to replace the national anthems of the EU countries but rather to celebrate the values they share.
„Ode to Joy” - The European AnthemThe melody used to symbolize the EU comes from the Ninth

Слайд 47EU statistics….


EU statistics…

EU statistics….EU statistics…

Слайд 53GDP per inhabitant: the spread of wealth
Lithuania
2012 GDP per inhabitant
Index

where the average of the 28 EU-countries is 100
Luxembourg
Ireland
Netherlands
Austria
Denmark
Belgium
Sweden
Finland
Germany
France
Italy
Spain
EU-28
Cyprus
Greece
Slovenia
Malta
Portugal
Estonia
Hungary
Slovakia
Latvia
Poland
Romania
Bulgaria
United

Kingdom

Czech Republic

Croatia

GDP per inhabitant: the spread of wealthLithuania2012 GDP per inhabitantIndex where the average of the 28 EU-countries

Слайд 57The EU – a major trading power
% of global exports,

goods, 2012
Others
55%
EU
15%
United States
11%
Japan
5%
China
14%
% of global exports, services, 2012
Others
42%
EU
25%
United States
18%
Japan
4%
China
6%
India
5%

The EU – a major trading power% of global exports, goods, 2012Others55%EU15%United States11%Japan5%China14%% of global exports, services,

Слайд 59We will continue….

We will continue at our next lecture

Thank you

for your attention

We will continue….We will continue at our next lectureThank you for your attention

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