The European Union
THE EUROPEAN UNION
50 Years of Peace, Prosperity and Partnership
The European Union
Celebrating the European Union:
A Half Century of Change and Progress
• Since the creation of the EU half a century
ago, Europe has enjoyed the longest period of
peace in its history.
• European political integration is unprecedented
in history.
European Union
United in diversity
• EU enlargement has helped overcome the
division of Europe – contributing to peace,
prosperity, and stability across the continent.
• A single market and a common currency
conditions for companies and consumers.
• EU has united the citizens of Europe – while
preserving Europe’s diversity.
The European Union
What is the European Union?
27
Member States
Combined
population of
EU Member
States
7
490
million
55
• Largest economic body in the world.
• World’s most successful model for advancing
peace and democracy.
• A unique institution – Member States
voluntarily cede national sovereignty in many
areas to carry out common policies and
governance.
Percent of world’s
population
Percent of
global GDP
• Shared values: liberty, democracy, respect
for human rights and fundamental freedoms,
and the rule of law.
30
Percent of combined
worldwide Official
Development Assistance
• Not a super-state to replace existing states,
nor just an organization for international
cooperation.
• World’s most open market for goods and
commodities from developing countries.
The European Union
EU Institutions
European Commission
• 27 Commissioners, representing the European
perspective, each responsible for a specific policy area.
• EU’s executive branch proposes legislation, manages
Union’s day-to-day business and budget, and enforces
rules.
• Negotiates trade agreements and manages Europe’s
multilateral development cooperation.
Council of the European Union
European Commission President
José Manuel Barroso
• EU’s main decision-making body, comprised of
ministers of 27 Member States, representing Member
State’s point of view.
• Decides on foreign policy issues.
• Council presidency rotates among Member States
every six months.
The European Union
EU Institutions
European Parliament
• Voice of European citizens – members elected for
five-year terms.
• With the Council, passes EU laws and adopts EU
budgets.
European Parliament in session
• Approves EU Commissioners.
European Court of Justice
• Highest EU judicial authority.
• Ensures all EU laws are interpreted and applied
correctly and uniformly.
• Can act as an independent policy maker but unlike
the U.S. Supreme Court, the ECJ can only deal
with matters covered by the Treaties.
The European Union
European Central Bank
• The European Central Bank (ECB) is the
central bank for Europe's single currency,
the euro.
• The ECB’s main task is to maintain the
euro's purchasing power and thus price
stability in the euro area.
The euro was introduced in 1999
• The euro area comprises the 15 European
Union countries that have introduced the
euro since 1999.
• The ECB operates independently from
Member State governments.
The European Union
United in Diversity - The €uro
The European Union
The €uro
€ In 1999, the euro area was established as a
currency in eleven of the then fifteen EU
Member States.
€ Of the 27 EU Member States today, fifteen
have adopted the euro.
€ One of the striking benefits of a single
European currency are low interest rates due
to a high degree of price stability.
€ The euro is as stable and credible as the bestperforming currencies previously used in the
euro area countries.
The European Union
1951:
European Coal and
Steel Community
• In the aftermath of World War II, the aim was to
secure peace among Europe’s victorious and
vanquished nations and bring them together as
equals, cooperating within shared institutions.
Jean Monnet and other leaders with
the first “European” ingot of steel
• Based on a plan by French Foreign Minister
Robert Schuman.
• Six founding countries – Belgium, the Federal
Republic of Germany, France, Italy, Luxembourg
and the Netherlands – signed a treaty to run heavy
industries (coal and steel) under common
management.
The European Union
1957:
Treaty of Rome
Signing of the Treaty of Rome
• The six founding countries
expanded cooperation to other
economic sectors, creating the
European Economic Community
(EEC) – or “common market.”
• As a result, people, goods,
services, and capital today
move freely across the Union.
The European Union
1951
Founding
Members
Belgium
France
Germany
Italy
Luxembourg
Netherlands
The European Union
1973
Denmark
Ireland
United Kingdom
The European Union
1981
Greece
The European Union
1986
Portugal
Spain
The European Union
November
1989
Fall of the
Berlin Wall
sets the
stage for
unifying
Europe and
EU
enlargement
The European Union
1995
Austria
Finland
Sweden
The European Union
2004
Cyprus
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Slovakia
Slovenia
The European Union
2007
Bulgaria
Romania
The European Union
Candidate Countries
Croatia
Former Yugoslav
Republic of Macedonia
Turkey
Potential
Candidate Countries
Albania
Bosnia & Herzegovina
Montenegro
Serbia including Kosovo
under UN Security Council
Resolution 1244
The European Union
50 Years of EU Integration
Enlargement has:
“Enlargement has been a
success story for the
European Union and
Europe as a whole. It has
helped to overcome the
division of Europe and
contributed to peace and
stability throughout the
continent.”
• Inspired reforms and consolidated common
principles of liberty, democracy, respect for human
rights, fundamental freedoms, the rule of law, and
market economy.
• Enhanced the EU’s weight in the world and made it
a stronger and more attractive international
partner.
European Council
Declaration
Dec. 15, 2006
1957
2007
6
27
Population
174 million
493 million
Languages
4
23
Member States
The European Union
The EU in the World
The EU is a global player.
Its soft power promotes
stability, prosperity,
democracy and human
rights, delivers concrete
results in the fight to
eradicate poverty, and in
achieving sustainable
UN Secretary General Ban Ki-moon, High Representative
for the Common Foreign and Security Policy Javier Solana,
and EU Commissioner Benita Ferrero-Waldner
development.
The European Union
Addressing Global Challenges
• Peace & Security
– Works for global peace and security alongside the
United States and multilateral organizations –
including NATO and the United Nations.
– Undertakes humanitarian and peacekeeping
missions and has provided military forces for crisis
management around the globe.
• Counterterrorism & Homeland Security
– Taken steps to improve intelligence sharing,
enhance law enforcement and judicial cooperation,
curtail terrorist financing.
– Boosts trade and transport security to support the
struggle against terrorism.
The European Union
Addressing Global Challenges
• Democracy & Human Rights
– Works globally for free elections and open
democratic processes.
– Fights racism and intolerance at home and
abroad.
– Campaigns globally against capital punishment.
• Development Assistance & Humanitarian
Relief
– The EU and its Member States are the world’s
largest aid donor, providing 55% of total official
development assistance.
– Provides billions of dollars in humanitarian aid
to more than 100 countries in response to
crises and natural disasters.
The European Union
Addressing Global Challenges
• Trade
– European Commission represents all 27 EU
Member States before the World Trade
Organization.
– Supports free trade and open markets, within
the rules-based structure of the WTO, to
promote growth and jobs in both industrialized
and developing countries.
– The world's most open market for products and
commodities from developing countries – 40%
of all EU imports are from developing countries.
The European Union
Addressing Global Challenges
• Environmental Protection
– A leader in global efforts to protect the
environment, maintaining rigorous and
comprehensive systems at home.
– Plays a key role in developing and
implementing international agreements,
such as the Kyoto Protocol on Climate
Change.
– Executing a “cap and trade” system to
reduce greenhouse gas emissions
– Takes the lead in the fight against global
warming with the adoption of binding
energy targets (cutting 20% of the EU’s
greenhouse gas emissions by 2020).
Source: German Information Center USA
The European Union
The European Union and the United States
“Our strong friendship is
essential to peace and
prosperity around the globe.
No temporary debate, to
passing disagreement
among nations, no power
on earth, will ever divide us.”
President George W. Bush
“The relationship between the
United States and Europe is
the world’s strongest, most
comprehensive, and
strategically important
partnership. The United States,
and a united Europe – this is
really the indispensable
partnership.”
President of the
European Commission
José Manuel Barroso
The European Union
Partners in Global Leadership
• EU and U.S. work together to develop
international standards:
– Fighting terrorism and transnational crime
– Advancing global trade liberalization
– Combating piracy and intellectual property
violations
EU Commissioner Benita FerreroWaldner & U.S. Secretary of State
Condoleezza Rice
– Spreading benefits of globalization
• EU and its Member States are helping restore
peace and stability in Afghanistan.
• EU and U.S. work together in the Middle East
Quartet to advance the peace process.
• When the EU and U.S. agree, others tend to
follow.
The European Union
Shared Values and Responsibilities
• Freedom & Democracy
Support free elections, good governance, human
rights, and the rule of law around the world.
• Security
Cooperate to fight terrorism, limit the spread of nuclear
weapons, and work for global peace.
• Development
Together, EU and U.S. provide 80% of global
development assistance and an even larger share of
global humanitarian aid in times of disaster and
conflict.
The European Union
A Dynamic
Transatlantic Economy
• EU and U.S. together account for 40% of total
global trade (more than $1.5 billion in
transatlantic trade every day).
• The $3 trillion EU-U.S. transatlantic economy
employs 14 million workers on both sides of the
Atlantic.
• In 2005, Europe accounted for roughly twothirds of total global investment flows into the
U.S. – by far the most significant source of
foreign investment in the U.S. economy.
The European Union
• European companies are the leading
foreign investors in the U.S.
– The UK, Germany, France, and the
Netherlands – top four sources of
jobs created by foreign investment
in the United States.
BMW’s assembly plant is South Carolina’s
largest private sector employer.
• American companies invest far more
in EU countries than in Asia.
– U.S. businesses make 5 times the
profit in the Netherlands - alone as they make in China.
– In 2005, EU investments in Texas
alone surpassed all U.S.
investments in China and Japan,
combined.
The European Union
Future of Transatlantic Relations
• EU and U.S. face common challenges that are global in
origin and impact. With global challenges, come global
responsibilities.
• EU and U.S., with our shared values and common
interests, are natural partners to give a lead in four
key areas:
– Promote peace, human rights and democracy
worldwide.
– Confront global challenges, including security and
non-proliferation.
– Foster prosperity and opportunity.
– Advance strategic cooperation on energy security,
climate change and sustainable development.
The European Union
“Since no single nation can efficiently
and effectively deal with global
challenges such as climate change,
counterterrorism, non-proliferation,
pandemics and natural disasters on its
own, we commit ourselves to
strengthening our cooperation to
address these challenges.”
EU-U.S. Summit Declaration
Vienna, July 2006
The European Union
Education & Research
• EU and U.S. cooperate on science and
technology education through:
– Exchange programs
– More than 700 institutional
partnerships
– Vocational training
EU supports R&D to
increase Europe’s
growth and global
competitiveness.
– Scholarship programs
– R&D cooperatives
• EU and U.S. provide joint or dual
higher educational degree programs.
• EU funds Centers of Excellence at
leading U.S. universities.
The European Union