European Union Terms – Flashcards

sets announcement of European integration in the Coal and Steel Community, direct proposal to tie together these industries and create supranational organization to distribute and price these war-making resources. (1950)

Francois Mitterand (socialist, French President 1981-1995) creates "redistributive Keynesianism" that raises the min wage, increases subsidies, the pension age, increases social spending, nationalizes industry. This was a failure because as the debt increases and currency was devalued, international investors started to take money out out and decide not to invest. Because of EMS pressures and capital fight, Mitterand has to backtrack on his economic policies, creating the "Franc Fort policy," which includes spending cuts and reduced taxes to attract foreign investment-- significant because it suggests France would be in favor of a single currency in a monetary union for fiscal/monetary stability

German called "Prime Minister", first head of the Commission, "bureaucrat gone mad". Wanted independent source of revenue, wants Parliament to have more power over EC budget, wanted to change voting from unanimity to majority voting and basically means that no country would have a veto. Strong supranationalist. Helped implement the CAP, oversaw the Empty Chair Crisis/Luxembourg Compromise.

6 countries (Belgium, France, West Germany, Italy, Luxembourg, Netherlands) sign in 1957, and EU truly begins as the European Economic Community. Created Customs Union, the Commission, and proposed CAP

French economist who oversaw recovery after the war. Advocated the French breed of capitalism with significant oversight. Proposed the Monnet Plan (1946) advocating for French control of the coal-rich Ruhr and Saar areas in order to strengthen France at Germany's expense. Served as president of the High Authority of the ECSC. Resigned from the High Authority in 1955 in order to pursue his European vision through other avenues. Founded the Action Committee for the United States of Europe which was instrumental in the proposal of the Schuman Plan and the creation of the EEC

a French socialist who served first on the European Parliament and then as the Economics and Financial Advisor to Mitterand's government. Later became the eighth President of the European Commission (1985-94). Oversaw enlargement with Spain and Portugal joining the EEC the reunification of Germany. Passed the Single European Act (SEA) in 1986 that increased qualified majority voting and the power of the European Parliament, and intended to increase economic convergence in standards, regulations, and competitiveness. Issued the Delors Report in 1988 advocating and outlining monetary union. Helped pass key budget reforms that introduced the cohesion policy and laid framework for EMU. Oversees the negotiation and signing of the Maastricht Treaty

showed limits of bureaucratic power and stemmed from empty chairs crisis, gave veto-power which restrained the commission, tied the commission to the council, established "qualified majority voting" and created more protection for national interests. (1966)

The Common Agricultural Policy. Part of the initial EEC. Extended significant subsidies to French farmers. Seen as a counterbalance to the industry subsidies given to Germany (1962)

basically I think that they try and fix some of the wealth gap between countries...and are a huge part of the budget. But I honestly have no notes on them I don't think...HALP! I just stole this from the EU website: "Have two components: the European Regional Development Fund (ERDF), providing financial support since 1975 for the development and structural adjustment of regional economies, economic change, enhanced competitiveness as well as territorial cooperation throughout the EU; and the European Social Fund (ESF), set up in 1958 and seeking to contribute to the adaptability of workers and enterprises, access to employment and participation in the labour market, social inclusion of disadvantaged people, combating all forms of discrimination, and creating partnerships to manage reforms in employment."

operates parallel to EU, established in 1960 primarily by Britain as an alternative to the EU for those who were unable or unwilling to join the EEC, key difference between EFTA and EEC is no common external tarriff which allowed countries to still have preferential agreements with colonies.

established in 1979 and included most EEC countries. Linked currencies to stop intense fluctuation, replaced the snake, while the currencies were not pegged to one, the Deutschmark became the center of the system.

Economic and Monetary Union. Established under the first pillar of the Maastricht Treaty of 1992. Created a single currency, the ECB, uniform industry standards/regulations, and allowed for increased movement of people. Creates the "Eurozone." 10 year implementation and convergence plan. Euro comes into existence in 1999, and a three year transition phase ends in 2002

a monetary unification project led by political elites in order to gain a common market, address asymmetries within Europe, establish a stable exchange rate, and control inflation rates. Europeans knew they couldn't compete with economic superpowers as individual states, and Maastricht addressed this and the issues with previous attempts at monetary unification (EMS). Design flaws were that there was no outline of how to deal with economic/financial crisis. Theoretical debate over geopolitical or economic goals (context: German unification, global economy competition, price stability, ideas of more policy integration, like immigration concerns) German goals: need convergence criteria, wanted low inflation/price stability, wanted ECB to be independent (like Bundesbank), become more globally competitive (econ wise), stable exchange rates. French goals: pegged exchange rate for more symmetrical monetary cooperation, wanted more political oversight of ECB, , increased capital mobility, market driven interest rates, Euro-federalist vision (don't really know what this means) Britain: low participation, would opt out of single currency, Thatcher was Euroskeptical, anti-federalist, but businesses in GB saw value in capital liberalization, common markets, etc.

set of mundane institutions opening trade and borders making it more open than ever, gets rid of protectionism

signed in 2007 and in effect in 2009, amends Treaty of Rome and Maastricht, and is the "constitution" of the EU. It was signed by politicians without public support and questioned democratic legitimacy. It shifted from unanimity in sme policy areas to majority voting, gave some more power to the EU Parliament, and considered European song/identity

1)HICP inflation rate can be no more than 1.5% higher, than the unweighted arithmetic average of the similar HICP inflation rates in the 3 EU member states with the lowest HICP inflation 2) Government Budget Deficit: The ratio of the annual general government deficit relative to gross domestic product (GDP) at market prices, must not exceed 3% at the end of the preceding fiscal year. 3) Government Deb to GDP ratio must not exceed 60% at the end of the preceding fiscal year. 4) Exchange rate-keep its monetary exchange-rate within a ±15% range from an unchanged central rate for 2 years 5) Long-term interest rates can be no more than 2.0% higher, than the unweighted arithmetic average of the similar 10-year government bond yields in the 3 EU member states with the lowest HICP inflation adhering to this in order to join EMU was difficult and expensive for some countries (ie Italy, Greece), which could have lead to "financial wizardry" to make them appear eligible -- backfired in 2008 financial meltdown

rules that define whether a country is eligible to join the European Union. The criteria require that a state has the institutions to preserve democratic governance and human rights, has a functioning market economy, and accepts the obligations and intent of the EU. (laid out in 1993). Political conditions countries behind the iron curtain needed to have to join EU -- post-Cold War expansion

Proposed by Charles de Gaulle in 1961 and Christian Fouchet (French ambassador to Denmark). Called for regular meetings of the six heads of state and government to direct intergovernmental cooperation on political, economic, cultural, and defense matters. This was the intergovernmental alternative to EC. This was de Gaulle's approach to ensuring that French interests weren't subordinated in the EC. Dutch and Belgians were wary of the potential for Franco-German hegemony; eventually the Dutch refused to participate until Britain joined the discussion. De Gaulle refused this condition and talks collapsed in 1962.

July 1998 intended to ensure sustainability of single currency through continuation of budget discipline after Stage III. Included provisions to penalize euro zone countries running excessive budgetary deficits. However, many failed to stay within 3 percent target (including Germany, who was the one making the major push for penalties) in the early 2000s. Ultimately the inability to uphold the pact undermined the credibility of EMU and in 2005 Germany and France relaxed the rules to make the pact more enforceable.

EU law is something that constitutes an entirely separate legal system from 3 sources 1) Primary acts---treaties 2) General principles of law from member states 3) and executive acts from the Council, Parliament, and the Commission. Jurisdiction is over: 1) (constitutional challenges) Infringement proceedings-when EU legislation brought by member states themselves 2) Judicial review 3) Preliminary rulings on referrals by national court * Tremendous jurisdiction over the legal code of European states, most laws that affect European citizens come from Brussels and not through courts of own member states. Really has precedence over national law.*

mandate solely to achieve price stability, primarily means of controlling inflation. Very different from Fed (inflation and employment level). This was the German idea and way—the French wanted it to be open to political pressure, the Germans favored an independent institution (Bundesbank). Almost no relationship with the public or other governmental/public bodies and totally opaque unlike the Fed. Interesting test case for "Quantitative easing"

initiates proposals for EU legislation. Regulator aka 'Guardian of the Treaties'. Ensure that members abide the commitments. EU's external representative. Represents the general EU interest - therefore small countries like it. Able to accept or reject amendments to its proposals for legislation by the EP. Has a president nominated by the council and must have majority of votes from the EP. Commission has Commissioners (27) from every member state some more important than others depending on their sector (ex. Agriculture less important than foreign trade)

consists of government ministers of every country. Intergovernmental not supranational body—individual national interests are represented. When the council reaches a decision—it's really the strong states that make a decision. The power within the council derives self from the place of the state in general. Complex procedure of majority votes on a given issue--this is a problem when new countries are added as you have to decide how many votes it gets within the council. Some issues require unanimity and others do not. A check on the power of the EU commission and a lot of times in Europe the council has had the same ideas of the commission and at times they have been at loggerheads

an international economics concept that makes the claim that these three things cannot be sought/had at the same time: free capital flow, fixed exchange rate, and independent monetary policy (apply significance to Maastricht??)

neofunctionalist(?) idea that the integration of one industry/ creation of one institution will lead to further integration and institutions of the same or different type

1st attempt at European monetary unity (1970s) by creating a "currency snake" pegging the EEC currencies to each other, the central currencies was the dollar, was unsustainable, preceded the EMS--established after the collapse of Bretton Woods in 1971. The Snake collapsed in 1973 and made way for EMS

German prime minister (chancellor) in power for 16 years at the time of Eastern collapse. On his initiative and push that they're reunited so quickly says currencies are the same showing East Germans will be part of West's prosperity

Prime Minister of England (Conservative Party) from 1979 to 1990, against the formation of and EMU, even though business interests groups in Britain favored open markets and fair competition. Did not predict the balance between strong economies like Germany and poor countries with mass amounts of public debt panning out well due to different needs and the "opting-in" idea. She was "Euroskeptical"

German Foreign Minister, key player in German unification at the end of the Cold War and European integration umm okay so him and Kohl were the ones who basically led the charge (albeit cautiously) on the EMU since the Hanover Summit (1988). Genscher specifically called for deeper monetary cooperation in 1987 post-SEA. Along with Kohl he sorta pushed the rhetoric that German concessions re: EMU (i.e. D-Mark) was to reassure neighbors about German unification not resulting in an imbalance of power. He's also a lib dem and ostensibly pro-European Union, in public anyway. There's some speculation as to Kohl and his personal politics vs. politics in intergov. relations. This is mostly from the second Moravcsik reading and the Dinan reading that was due 1/29. Basically, Genscher was central to paving the way to EMU and a tag team with Kohl.

SPILLOVER AND GROWING SUPRANATIONALISM thought there would be a decrease in nationalism and an increase in supranational integration (based in ideas of positive spillover, transfer of domestic allegiances, and technocratic automaticity)--Hallstein and Monnet argued for neofunctionalist approach. This has died out as a theory, though some still subscribe.

alternative to neofunctionalism, gives power in international institutions to member-states rather than supranational body, decisions are made by unanimity (this is more common in the real world) This is Moravcsik's argument--spillover is taken on by intergovernmental stuff and states.

Grieco's adaptation of neorealist theory that explains the EMU/Maastricht negotiations as weaker states using rules/institution to provide opportunities to voice their concerns/interests to prevent domination by stronger states. Still maintains the assumptions that states are key actors, there are self-help agents in an anarchical environment, states act with rationality and are concerned about safety/independence (ie Germany would be in favor because an institution would help it achieve the global economic competitiveness goals it wouldn't be able to on its own; also, France and Italy wanted more level ground/ symmetry with Germany)

the principle that a EU citizen can invoke any European provision or law before court (national or ECJ). It was established in a 1963 case that dealt with reclassification of chemicals in Benelux countries that violated certain product standards crossing borders. It was meant to provide legal rights for citizens

tried to create new system after the Gold Standard fell need new international system for exchange rates pegged to the dollar (dollar becomes new gold standard and dollar is pegged to gold), gives US an advantage, can set monetary policy and is the only country that could change the money supply at will. Problem that it only really worked when the US was running a Balance of Payments surplus--during Vietnam starts printing money to deal with deficit and confidence in the system takes a serious hit.

demand-side, short-run based economics that advocates for a mixed economy with some government help during recession. This is the standard model adopted after WWII.

based on liberal economy, free trade, open markets, and deregulation. Founded by Friedman and Hayek. Germans were bigo on this post-WWII.

first step in militaristic integration, Germany wanted it's own army and police force, common European army from the ashes of WWII (This was a colossal failure. European integration was not inevitable.)

(aka the "bloody British question") EC budget expanded enormously from the early 1970s to 1979, around when Thatcher came to power. Germany and Britain were paying far more into the EC than they were getting out. The huge shortfall and the fact that Britain was set to surpass Germany infuriated Thatcher. Furthermore, the largest payout at the time was to the CAP, which the UK benefitted only marginally from (since it imported more than other states from outside the EC) -- the problem spoke to a larger problem the British had with the organization of the Common Agricultural Plan. The issue was finally resolved in 1980 when Britain was offered a two-thirds rebate covering a three-year period.

Moravcsik attempts to answer the question of "How much do security externalities and endogenous commercial policy contribute to an explanation of national preferences for international economic policy coordination?" This is found in his examination of national preference formation; he discusses the dichotomy of geopolitical versus economic concerns and argues that many of the core policies leading to European integration were economic in nature.

design flaw of Maastricht (Sarotte ?), with no bailout clause, lender of last resort, or IMF on the EU level, there was no way to deal with financial panics across Europe. It promotes the idea that what Maastricht led out potentially had a hand in the financial crisis, and caused internal "all debtor, no creditor" issue (the idea that Germany would end up subsidizing/bailing out smaller, weak economies)

how the EU conducted business until putting out national referendum. It basically means EU citizens weren't aware or paying much attention to policies and institutions really until Maastricht. Once they were asked their opinions, the resistance to the decisions made at Maastricht grew. This is a concept men

French President, doesn't participate in EU and boycotts due to the overstepping of Hallstein and creates the "empty chairs crisis", headed the Luxembourg Compromise, intergovernmentalist

German chancellor, old man, 1947-1960s, won Germany, central figure in binding Germany to Europe, acknowledged Germany had done something wrong and was not sure that Germans left to their own devices would handle things well.

Saw this in Van Esch, included in notes below. Germany's implant into Europe and the Western world. Idea, supported by Adenauer, that included reconciliation with France and subordinated Germany's economic goals to the political goals of European integration. This made it so that by the 1960s, Europatriotism had emerged, and as a discourse represented the consensus on the desirability of European integration.