SMEI European Integration

Germany balks (hesitating) at provisions in the Treaty of Paris that would prevent the re- emergence of coal and steel cartels. The French are unwilling to negotiate on this point because they see decartelization as essential to preventing the development of a centralized and militaristic regime in Germany, which would be threatening to French security. The Germans finally agree to these terms after the Americans give Germany to either accept the Schuman Plan to create the European Coal and Steel Community (ECSC) or to face American attempts to break up German coal cartels.

The European Community of Coal and Steal is created by the Treaty of Paris. Jean Monnet becomes President of the High Authority of the ECSC. He does not believe in the free market system, but rather wants to develop a supranational institution thereby creating a common economic community. Coal and steel was only a start – but they had to start only with it as extending it to more aspects of the market would not have gained acceptance at the time. Two issues to resolve:
- Franco-German relations – common production would make war between them 'not merely unthinkable, but materially impossible'.
- how to ensure continuing adequate supplies of coking coal from the Ruhr for the French steel industry
Why did countries want to join ECSC?
→ Germany – acceptance of the international community, getting rid of IAR
→ France – access to the coal
→ Benelux – too weak to act alone
→ Italy – acceptance of the international community, clear commitment to the capitalist West
→ / Britain – did not want to join because it already considered itself a world power, far economically stronger than the rest of Europe, they had enough supplies of coal more page 97
→ / United States – were not a part of the negotiations but closely followed the procedure through US Embassy committee in Paris
The Treaty establishes a common market for coal and steel, administered by the High Authority, a supranational body. The Treaty also creates an intergovernmental Council of Ministers, an advisory European Parliamentary Assembly and a Court of Justice. The ECSC seeks to remove barriers to the internal market for coal and steel, manage the modernization of production, and prevent the re-emergence of cartels. It is anticipated that the ECSC will lead to further economic integration among its member states.
EDC is signed but not ratified.

The French National Assembly fails to ratify the European Defence Community Treaty leading to the fail of the European Political Community (EPC). Nevertheless the Western European Union was created and the idea of federalists kept alive.

The Treaties of Rome (establishing the European Economic Community ((EEC) and Euratom) are signed. The six countries of the European Coal and Steel Community (ECSC) set up the EEC and the Euratom. The EEC aims to create a custom union and in a long-term common market among the member states, while Euratom is to promote joint development of nuclear energy. The treaty was ratified easily in all countries except for France.

Agriculture ministers, national experts and farm lobby groups meet at a conference in Stresa, Italy, to discuss the details of the Common Agricultural Policy (CAP). The Stresa Conference agrees on a principle of price supports for agricultural products. This means that when prices within the Community fall below an agreed price for agricultural products, the Community will intervene to raise the price by buying the commodity. When the price of imported goods falls below the agreed price, tariffs will be levied to make up the difference. The Stresa Conference also leads to the formation of a European agricultural lobby group, the Committee of Professional Agricultural Organisations (COPA)

The Treaties of Rome come into force, establishing the European Economic Community (EEC) and Euratom. The EEC consists of the European Commission, the Council of Ministers, an advisory Parliamentary Assembly (later the European Parliament), and the European Court of Justice. Walter Hallstein becomes the first President of the EEC Commission, and Louis Armand the first President of the Euratom Commission. A committee of permanent representatives (COREPER) is created to prepare the work of the Council of Ministers.
- Customs duties within the EEC are cut by 10%, as part of a time frame that proposes an annual 10% reduction in tariffs and annual reductions in quotas. The deadline for the removal of all quotas is 1961. A Common External Tariff is introduced. Negotiations begin with Greece and Turkey to the EEC agreement.

Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the UK set up the European Free Trade Association (EFTA). Like the European Economic Community (EEC), the EFTA aims to establish free trade area, but it does not resort to common external tariffs and supranational institutions.

De Gaulle announces his veto of British membership of the European Economic Community (EEC), arguing that Britain's political and economic interests are incompatible with those of the EEC and that it lacks a commitment to European integration

• the French foreign minister withdraws the French Permanent Representative from the Council of Ministers

The Luxemburg compromise represents a move toward increased intergovernmentalism in order to resolve the Empty Chair Crisis—the French boycott of Council of Minister meetings which arose out of French objection to increasing supranationalism in the European Economic Community (EEC).

The Merger Treaty is signed, agreeing to merge the institutions of the European Coal and Steel Community (ECSC), European Economic Community (EEC), and Euratom into a single organization. The High Authority of the ECSC, the Commission of the EEC and the Commission of Euratom are merged into a single Commission, and the Merger Treaty creates a single Council of Ministers. The Community is now known as the European Community or 'EC' rather than the 'EEC'. The Treaty, which comes into force on 1 July 1967, signifies the eclipse of limited, sectoral integration, represented by the ECSC and Euratom, by the broader, multi-sectoral form of integration represented by the EEC.

• The Customs Union of the EC is completed ahead of schedule and a common external tariff is established.

• completion, deepening and enlargement, Georges Pompidou instead of de Gaulle, Pompidou more pro-european
• Completion was achieved through allowing the EC to have its own resources for the first time, and the EP was given some budgetary powers. Widening was achieved through the entry of Britain, Denmark, and Ireland into the EC in 1973. Deepening of co-operation on foreign policy through EPC had some success; less so co-operation on monetary union.

1969: French President, Charles de Gaulle, resigns after being defeated in a referendum on government reforms. Three main objectives of the eu: Deepening, widening and completion.
1970: After agreement on re-launching, widening of the Community is reached at the Hague Summit. Membership negotiations begin with Britain, Ireland, Denmark, and Norway.
1972: Completion of membership negotiations with Britain, Ireland, Denmark, and Norway; Accession Treaties are signed.
Member States agree to the 'snake in the tunnel' system of EC monetary coordination. This introduces a system where the EC currencies are allowed to fluctuate within a band of 2.25% against each other (the snake), within a 4.5% margin of fluctuation against the US dollar (the tunnel).
A French referendum on the EC enlargement results in a yes vote of 68.28% with a turnout of 60.27%.

1974: Leadership of chancellor in Germany and president in france
The Paris summit agrees to direct elections to the European Parliament (EP) to be held in or after 1978, the creation of the European Council, and the creation of the European Regional Development Fund (ERDF). The latter is an important concession for British membership of the EC. Germany had been opposed to the creation of the ERDF, but Ireland and Italy threatened to boycott the summit unless the regional fund was established.
1975: British Prime Minister Harold Wilson holds a referendum on continued British membership of the EC.

• The Bremen European Council agrees to pursue proposal from German Chancellor, Helmut Schmidt, and French President, Valéry Giscard d'Estaing, for a 'zone of monetary stability in Europe'. This leads to the development of the European Monetary System (EMS) britain stayed out if it.

Greece enters EC because of political reasons – they had dictatorship and other members agreed that they would help them to introduce democracy

• The Fontainebleau European Council settles the British budgetary dispute by increasing the EC's own resources and decreasing CAP expenditures. The Fontainebleau summit also confirms the member states' commitment to the goal of the completion of the single market and creates the Dooge committee to investigate institutional reforms necessary for completing the single market. British budget debate by Margaret Thatcher. The same month, the second direct elections to EP are held. The overall turnout is 61%.

• Jacques Delors submits the White Paper on the completion of the Single Market to the European Council meeting in Milan. The report, undertaken together with Commission Vice-President Lord Cockfield, recommends over 300 measures that would remove the remaining barriers to the free movement of people, goods, services, and capital by a deadline of 1992. The White Paper is the result of entrepreneurial action by the Commission, as well as lobbying by European business interests and the EP. Single European Market is a big idea. The Milan European Council agrees on the '1992 programme'. The Summit also discusses the Dooge Report on plans to create a European Union and decides to convene an Intergovernmental Conference to discuss treaty reforms. Belgium, France, Ireland, Germany, Italy, Luxemburg, and the Netherlands support this initiative. Britain, Denmark, and Greece are opposed but are outvoted. What convinced member states to accept the agreement? European round table, Mitteround, competition with USA and Japan, internal market – they needed to get back on track economically → relaunch of the European integration process after a decade of deterioration

• Single European Act (SEA) comes into effect. It revises the Treaty of Rome and aims to create an internal market within the EC. Most significantly, it abolishes national vetoes in a number of policy areas relating to the single market.

• Delors Report – proposes a three-stage progress to monetary union leading to a single currency by 1999, there was a strong support for a common currency, except from British side. Presented at the European Council in Madrid which voted in favour of creating an intergovernmental conference (IGC). IGC on the political union is also proposed.

• Fall of Berlin wall. Important in furthering European integration
• Eastern Germany was thinking about unification with Western Germany – there was a fear that Germany would focus more on the east than the west
• eastern countries – giving them a chance to join the agreement would enable a reconstruction of their economies

• The Maastricht European Council agrees the principles of the TEU/Maastricht Treaty. The member states agree on a three stage plan for economic and monetary union. → First stage: already begun in 1990, the freeing of capital markets in Europe → The second stage: scheduled to begin in 1994, is a process of economic convergence. → The third stage: the establishment of a European Central Bank (ECB), the fixing of exchange rates, and the adoption of a single currency. Member states agree that this will begin by 1997 if member states satisfy the economic criteria, or by 1999 at the latest. Both Denmark and Britain secure opt-outs from this third stage of monetary union. Politically, the Treaty extends qualified majority voting and establishes a three-pillar structure to promote cooperation in foreign and security policies, on asylum and immigration issues and free movement of people. 1) economic part – supranational cooperation → countries give away their powers 2, 3) intergovernmental cooperation → country do not give away their powers Consequences of Maastricht Treaty:
• most states enter into the recession state – there is a lack of trust from the citizens – slowly coming up Eurosceptic feelings
• Called a Treaty too far by some 90s' – huge steps towards integration in a short period of time – was necessary, but it could have seemed like they lost the support of the citizens who were still in favour of an integration on a national level, as opposed to the European level

• European Union they entered was way less positive than it was at the beginning – the positive vibe of European integration is slowly fading away.

• IGC (Intergovernmental Conference) was intended to review the working of the TEU. There have been problems to ratify the Maastricht treaty because of enlargement. Twenty members in 1995. It made it hard to allocate responsibilities equally without upsetting any country. Led to negotiation to what later become Amsterdam treaty.

• The Amsterdam European Council agrees on the terms of Treaty of Amsterdam, including to supplement the stability pact with a growth and employment pact. To reform the EU institutions in preparation for the arrival of future member countries. The Amsterdam Treaty discusses little institutional transformations needed for the enlargment, no extension of QMV. Why enlargement? Germany: more security and no more problems with non-EU countries such as Czech Republic or Poland, economic reasons – they could start trading with the east quite easily Britain: trade – yes, for other ideas they were sceptical Scandinavian countries – trade Mediterranean countries – more hesitant, they were scared that all the focus would be on the eastern part, security concerns about the Middle East, worrying about an unequal allocation of financial support – they thought that France would get way more money for agriculture than they would Member states tried to defend their own national interests.

• Commission fraud scheme – EC employees spent European money on private needs

• Stage III of Economic and Monetary Union (EMU) is launched. The Euro comes into operation, although national notes and coins remain in circulation until 2002

• An Intergovernmental Conference (IGC) is launched to discuss reforms left uncompleted after the Treaty of Amsterdam. These include the size and composition of the Commission, the weighting of votes in the Council of Ministers, and Qualified Majority Voting.

• Leaders realise that they lost the citizens support (between 1992 and 2002) – Leaken declaration on the future of Europe – prepares for the EU constitution

• Citizens start using Euro notes and coins in the twelve participating member states. Euro notes and coins are introduced in the 12 member states of the EU on 1 January. Meanwhile, Denmark, Sweden, and Britain stay outside the Eurozone.

• institutional reforms, QMV and 3 majorities
• Treaty of Nice organised to reform the institutions so that the EU could function efficiently after reaching 25 member countries. methods for changing the composition of the Commission and redefining the voting system in the Council.

• The Treaty Establishing a Constitution for Europe is signed by the Heads of State and Government and the EU Foreign Ministers and enters its ratification stage. (Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia) 10 eastern member states enter

• Vote for the ratification of the EU constitutional treaty fails, as France and NL rejected it. In many countries people opposed this idea not because they were strictly against the EU project but against the national politics. They showed it by opposing the EU. → revival fails Record small turnout for the European Parliament elections

• On 23 July 2007, an IGC is launched to consider the content of the proposed ‘Reform Treaty’. Negotiations proceed on the basis of a ‘draft mandate’ which had been presented in June by the then German Presidency of the EU. It proposes that instead of consolidating and replacing the existing treaties – the Treaty on European Union (TEU) and the Treaty Establishing the European Community (TEC) – that they be amended to incorporate most of the provisions of the Constitutional Treaty. However, the more controversial elements of the Constitutional Treaty are to be removed. These include the term ‘constitution’, an article referring to symbols of the Union (including the EU anthem and the Union flag) and references to an ‘EU Minister’ for foreign affairs. The EU’s legal instruments are also to remain as regulations: directives and decisions and are not to be replaced by the terms ‘law’ and ‘framework laws’. The text of the new Treaty is agreed in Lisbon at a European Council meeting. It aligns broadly with the proposals which had been presented by the German Presidency. Although many of the controversial aspects of the Constitutional Treaty are removed, the vast majority of its provisions are retained in the Lisbon Treaty. The treaty fundamentally restructures the EU’s governing architecture by removing the three-pillar structure that had been established by the Maastricht Treaty. Two new high profile positions are created (President of the European Council (Herman van Rompuy) and the High Representative of the Union for Foreign Affairs and Security Policy (Catherine Ashton)) → they wanted to create the face of the EU – these people could not be too controversial, to be acceptable for all members states and not cause problems. QMV is extended into new policy areas, the budgetary powers of the EP are strengthened and its co-decision powers expanded. Other institutional reforms include a reduction in the size of the European Commission, some enhancement of the powers of the ECJ, the Charter of Fundamental Rights becomes ‘solemnly binding’ and national parliaments are allotted a greater role in responding to Commission proposals. The treaty also provides for additional policy competences for the EU in areas such as civil protection, tourism, and sport.