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From Community

to Union, 1973-93
Presented by :

Noureddine Mahfoudhi

Safa Zaidi

Mariem Mrayhi
Introduction

Enlargement of the ECC

PLAN The expanding process of the ECC

Reactions of the European countries

Conclusion

2
Enlargement of the EEC
The resignation and death of Charles de Gaulle
marked the end of an era and the beginning of
another in the history of the EC.

The era of de Gaulle was marked by:


An economic The opposition of de There was
success of the Gaulle to the no political
EC enlargement of the progress
EC ( esp. against
Britain’s admission)
• In fact it was after the departure of de Gaulle that
the European countries moved from the EC to the
EU.

• This move was first enhanced by three successive


enlargements to the community.
The community increased in number from 6 to 12
when several countries applied to join the EC :

Spain
Greece and
Portugal
Britain,
Denmark
and Ireland
However, 1973 which witnessed the enlargement
of the community has also coincided with an
economic and political crisis within the EC.

In October 1973 the OPEC quadrupled the price of


crude oil. This decision hit the economy of the EEC
hard, since it imported 63% of its energy from the
PEC.

The EC was torn by schism as individual countries


driven by self interest began to make separate
deals with the OPEC.
The other crisis that hindered the progress towards
integration was the disagreement with the Thatcher
government over Britain’s contribution to the EC budget.

Britain claimed that:

 They were paying more than that they were getting.

 Much of the EC budget (74%) was directed to


improve agriculture in other countries (Britain’s funds
were used to subsidize inefficient farmers in France).

 That EEC rules forced Britain to pay a much heavier


import levy than they did.
Britain asked for £1m reduction in the British
contribution. After long debates an agreement was
reached by which Britain would receive a permanent
rebate worth 66% of the difference between what it
paid and the amount it got back.

Undoubtedly, this agreement was achieved at huge cost


to future relations between Britain and Europe.
Thatcher’s insistent demands of what she called “her
money” and her domineering and insulting treatment
to her European partners alienated the afore
enthusiasts to Britain’s claims.

It even led the French Prime Minister Jacque Chirac


to call for Britain’s expulsion from the community.
Yet these issues that dragged over several Council meetings did not
hinder some positive initiatives that fostered the progress towards
integration.
This progress was ignited by new initiatives that culminated in the
Single European Act (SEA) :

1 2
The second initiative was
The first of them was introduced in a report by the
the signing of the Lome Belgium Leo Tindemans. In
Agreement in 1975. his paper entitled The High
Road to European Union,
Tindemans argued for moves
This agreement introduced a to develop:
programme of development
and assistance to countries
outside the community, - A common foreign policy.
known as the ACP
- A monetary and economic policy.
countries.
- A reform of the institutions and
provisions responsible for direct
elections to the European Parliament.
A major step towards integration was seen in
1979 with the European Monetary System
(EMS) coming into operation.

This functioning came along with an Exchange


Rate Mechanism intended to regulate
currency fluctuations at its core.

So this formation was considered as the first


step in a process intended to lead a single
currency, an economic and monetary union.
Within a couple of years, the committee established
by Parliament with the purpose of drafting
proposals for a European Union, came out with a
report presented by the chairman of the committee
Altiero Spinelli.

Soon in 1984 the Parliament voted overwhelmingly


in favour of the draft Treaty establishing the
European Union. It was under the presidency of the
commission by Jacques Delors that came the
Agreement on the content of a Single European Act
in the second half of 1985.

The creation of the international market and the


moves to closer cooperation were to be resolved at
Maastricht in December 1991.
The SEA and its aftermath marked the second
phase of integration. But before the SEA could
be implemented it has to be formally ratified in
all of the national legislatures because it
amended the Treaty of Rome.
The Thatcher government accepted the measure
since the British had a very market-oriented
approach to economic policy. However, there
was some opposition in Parliament as well as
among the labour party.
The cause was the unease and unwillingness to
lose sovereignty.
The passage of the Act extended the scope of the
community and provided for the completion of the
single market by the end of 1992.

This meant that all barriers whether fiscal, technical


or physical were to be eliminated. In signing the
SEA the 12 committed themselves to move towards
monetary Union.

Thus the single market programme was a success,


the target date was set and the community attained
a high level of popularity. As Bomberg and Stubb
put it, “1992 unleashed a wave of Europhoria.”
However, there was disappointment among those
who wanted to haste the pace to integration. For
several issues had not been finally resolved by the
Act, though some partial steps had been taken.

For example no attention was given to questions


of security, terrorism, drug trafficking, international
crime and the fear of an influx of Eastern migrants.

Yet, outside the community, the face of Europe was


undergoing dramatic change between the late 1980s
and 1991. The fall of Berlin Wall and reunification of
the two halves along with the collapse of the USSR
enhanced the pace of the EU.
Expanding Process of ECC

On 9 November 1989, the Berlin Wall was pulled


down and the border between East and West
Germany was opened for the first time in 28 years.
This led to the reunification of Germany, when both
East and West Germany were united in October
1990.

Increase of the size of the


Community as Germany became
a full member of the EEC.
 With the collapse of Communism across central and
eastern Europe, Europeans became closer neighbors.

 In fact, after the Cold War, NATO was reconceived as a


“cooperative-security” organization.

 Some EFTA members were queuing up to join the


Community to develop strong economic relations.

This led to the establishment of


the EEA.
What Is EEA ?
• The European Economic Area (EEA) was
established via EEA agreement, an international
agreement which allowed the extension of the EU single
market to non–European parties.

• The EEA links the European Union member states and


the three EFTA states (Iceland, Liechtenstein and
Norway) into an internal market governed by the same
basic rules.
The EEA agreement
aims to

enable free movement cover cooperation in key


of labour, goods, establish common areas such as research
services and capital rules on competition and development,
within the European and state aid environment, education
single market and social policy
 Switzerland rejected the opportunity to join the EEA in a
referendum but it had a series of bilateral agreements with
EU.

 In 1995 the EU gained three more new members: Austria,


Finland and Sweden.

 There was a clear vision to reassess the position of the


community in the changing circumstances by deepening
economic and political bonds.

• The emergence of the “widening or deepening” debate in


Europe. the EU has pursued deepening and widening most of
the time in parallel. As new members joined, the EU
continued to pursue deeper integration.

The Majority of the British ministers seemed to be


seeking to stem the European advance they
wanted to limit the Community competence.
The Delors programme

Jacques Lucien Jean Delors (born


20 July 1925) is a French politician
who served as the 8th president of the
European Commission from 1985 to
1995.

He served as Minister of finance of


France from 1981 to 1984.

He was a Member of the European


Parliament from 1979 to 1981.
 Jaques Delors was an activist president of the
commission.
 He saw a need to re-examine community finances and
review the working of the common agriculture policy.
 He began work on a plan for economic and monetary
union which the European Council had asked a
committee chaired by him to devise.
 Delors believed that the EC was more than a common
market. It was ‘an organized space governed by
commonly agreed rules that will ensure
economic and social cohesion and equality of
opportunity’.
He emphasised the social dimension of
the market which involved the protection
of individual rights so that the community
worked for the benefit of all its citizens.

In May 1989, the commission produced a draft charter of


fundamental social rights in connection with terms of
employment.

The British government refused the draft and rejected to


go along with the proposals.
The Maastricht Treaty
Approach to Maastricht

 Negotiations for a new treaty began through two


separate inter–governmental (IGCS); one dealing with
monetary Union, the other with political Union.

 The key decisions were reserved for the meeting of the


European Council to be held in at Maastricht in
December 1991 which was an important step in the
process of moving towards a united Europe.

 The treaty was signed in Maastricht on 7 February


1992 and entered into force on 1 November 1993.
What did the Maastricht Treaty do ?
The treaty pushed forward two broad processes – the
widening of EU responsibilities and the deepening
of integration.

By instituting a European Union, the Maastricht Treaty


marked a new step in the creation of an “ever-closer
union among the Europe”.

The treaty also attempted to strengthen the EU Parliament


power, by introducing the co-decision procedure.
• In order to make EMU possible, the Treaty amended the
original treaty of Rome, reinforcing the economic
responsibilities of the European Community in line with
goals of the SEA.

The most important agreement was to fix a


definite date for the achievement of EMU,
1999 at the latest or 1997 if seven members
met the necessary criteria.

• The process of closer integration through Monetary


Union made it vital to closer political cooperation.
The Treaty’s three main pillars
First pillar: The Second pillar: The common Third pillar :
European foreign and security policy Cooperation in the
community Field of justice and
home affairs
- The community ‘s - This pillar was intended « to - It was concerned with
task was to make the assert the community on the policing and
single market work and international scene ». immigration control.
to promote a
harmonious, balanced - It covered all aspects of - Combatting terrorism,
and sustainable European security and included serious crime, drug
development of provisions for the eventual trafficking and
economic activities. framing of a common defense international fraud.
policy.
- The treaty decreed - Judicial cooperation
that citizens of member - Its objectives were: to promote in criminal and civil
states would international cooperation and to matters.
automatically become develop and consolidate
members of the EU. democracy.
Initial Reactions in Europe

There are different reactions towards the Maastricht Treaty:


Reactions + Reactions -

• Germans: in favor of the • Spain and Portugal: refused that the EU


treaty. They were pleased to see would help the poorer countries of the
the treaty under applications. community.
They thought that German lines
will get more benefits from the • Greece: was to be allowed to enter negotiations
Central Bank. to join the WEU, the future defense arm of the 12,
in 1993.
• France: a step is needed to be
taken which is a timetable • The Netherlands: had brokered the agreement
towards Monetary Union, with because they wanted to get benefits from the text
the deadline for the single since this latter was designed to ensure that
currency. « there was something to everyone ».
This could guarantee national benefit and
community progress.

There was disappointment of European


countries that Britain got special treatment and
has benefited more than other countries from
the text. But, as the Dutch premier put it : «the
United Kingdom is very much the
same».
Position of the UK:

• Britain gained more power after the summit,


especially for the conservatives who were highly
relieved by the outcome of the summit.

• John Major, the Prime Minister, claimed that


British national interests should be protected.

• Although the majority voting of foreign policy


had not been approved, Britain still had its
theoretical power.
Britain took the decision to join a single currency.

At first, Britain seemed to be cooperative,


but it remained for its behalf to gain more
benefits and more power in the community.
The long and difficult road to ratification
• Not all countries were agreeing with the treaty.
Many were satisfied with what has been
illustrated in the pillars, but there still was
Europhobia among certain groups.
• The treaty met with substantial resistance in
some countries :
Growing doubts in Denmark and France:
The process ran into difficulties:
 In Denmark, for example, voters who were
worried about infringements upon their county’s
sovereignty. There were only 48.000 votes.
The verdict caused a political earthquake.
 In France, when the treaty encountered hostile
criticism, a national referendum was taken to
bolster support. The outcome was a bare 51%
approval by the French voters.

 In Ireland, the Yes vote exceeded expectations, and


this boosted the process of ratification.

Solving the Danish problem:


• The Danish hoped to go back to vote in order to give
their approval to the treaty in case they will get more
benefits and interests.
• Edinburgh Summit in December 1992 solved many
problems, mainly the Danish problem as they were
able to ratify the treaty, and therefore every country
gained something suitable.
The British were finally able to ratify the
Maastricht Treaty in August 1993.

Ratification was completed in all


member states, and in 1 November
1993 the EU came into force.
Subsidiarity
 Definition: the general aim of the principle of subsidiarity is
to guarantee a degree of independence for a lower authority in
relation to central government. It therefore involves the
sharing of power between several levels of authority, a
principle which forms the institutional basis for federal states.

 The principle of subsidiarity: was formally enshrined by


the Maastricht Treaty, which includes a reference to it in the
treaty establishing the EU.

The principle of subsidiarity seeks to safeguard the ability of


the Member States to take decisions and action. The purpose of
including a reference to the principle in the EU treaties is also to
ensure that powers are exercised as close to the citizen as
possible.
In areas in which the European Union does not
have exclusive competence, the principle of
subsidiarity laid down in the treaty on the EU,
defines the circumstances in which it is preferable
for action to be taken by the Union rather than
the Member States.
Jacques Delors was for subsidiarity. He
thought that internal security, justice, planning,
education, culture, and health should remain the
responsibilities of Member States.
Conclusion
• The European Union drove towards unity in several
fields especially after passing the Single European
Act.
• The Maastricht Agreement was the first concrete
step for the preparation of EMU.
• The Maastricht Treaty had caused a controversy
among certain European countries that has been
resolved after such negotiations and agreements.
• It is obvious that self interest guided the steps for
the European countries in there move from EC to
EU
Thank you for your
attention.

Any questions?

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