European Union
European Union (EU), European supranational organization dedicated to increasing economic integration and strengthening cooperation among its member states. The European Union was established on November 1, 1993, when the Treaty on European Union, or Treaty of Maastricht, was ratified by the 12 members of the European Community (EC)—Belgium, Denmark, France, Germany, Great Britain, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. Upon ratification of the treaty, the countries of the EC became members of the EU, and the EC became the policy-making body of the EU.
Background
Prior to November 1993, the European Union was called the European Community. The
EC was composed of what originally were three separate organizations: the European Coal and
Steel Community (ECSC), created in 1951; and the European Economic Community (EEC, often
referred to as the Common Market) and the European Atomic Energy Commission (Euratom),
both set up in 1957. The three institutions merged in 1967, creating the EC and establishing
headquarters in Brussels.
Organization
Decision-making in the EU is divided between supranational European institutions and
the governments of the member states. The European Commission and the European
Parliament are administered by the EU, and the Council of Ministers is composed of ministers
from each of the member governments. The Court of Justice serves as the final arbiter in legal
matters or disputes among EU institutions or between EU institutions and member states.
European Commission
The European Commission serves as the executive branch of the EU. It makes policy proposals
and presents them to the Council of Ministers. The European Commission also represents the
EU in economic relations with other countries or international organizations. The administrative
role of the commission is to manage EC funds and programmes and to deliver aid to other
countries.
Council of Ministers
The Council of Ministers, the main law-making body of the EU, is composed of cabinet ministers
from the member governments. The council is aided by the Committee of Permanent
Representatives, which is comprised of the permanent representatives (or ambassadors) of each
member state.
European Council
Summit meetings among the top leaders of the member states are called at least once every six
months by the country holding the presidency of the Council of Ministers. This meeting of heads
of state and government is called the European Council. The summits were instituted on a
regular basis in 1975. The European Council became an official part of the EC structure in
1987.
European Parliament
The European Parliament is the only body of the EU whose members are directly elected by the
citizens of its member states. Formerly only a consultative body, the parliament gained new
influence under the Treaty on European Union. The main body meets in Strasbourg, though
most of its committee work is done in Brussels and the secretariat is based in Luxembourg. The
567 seats are allotted based on the population of each member state. In 1994 Germany had the
largest representation, with 99 seats.
Individual committees of the European Parliament review legislation proposed by the European
Commission. These committees often propose amendments to the legislation before submitting
it to the Council of Ministers. The parliament may veto a proposal after it reaches the Council of
Ministers if it disagrees with the council's position. The European Parliament also works with the
Council of Ministers on the EU budget and can reject a budget plan if agreement cannot be
reached within the council.
Committees
While the Treaty on European Union increased the political powers of the European Council,
other bodies took on advisory roles similar to those once held by the parliament. The Economic
and Social Committee is one of the most important of these bodies. Its 189 members are
appointed to four-year terms by the Council of Members to represent employer and employee
groups, as well as other interest groups. The committee has a strictly advisory role, but the
Council of Ministers and the European Commission are obligated to consult the committee on
many legislative issues. Another important group is the Committee of the Regions, created by
the Treaty on European Union to bring the EU closer to its citizens and to give regional and local
authorities a voice in government. The committee has 189 members that are allocated based on
the population of each country. It has no legislative power, but must be consulted on matters
relating to certain economic and social issues.
Court of Justice
The final arbiter in all matters of EU law is the Court of Justice. The court is composed of 13
judges who are appointed to six-year terms, with at least one judge from each member country.
The court deals with disputes between member governments and EU institutions and among EU
institutions, and with appeals against EC rulings or decisions. Courts of the member states often
refer cases involving an unclear point of EU law to the Court of Justice. The court makes binding
rulings on EU law to help guide the rulings of national courts. The rulings of the Court of Justice
set legal precedents and become part of the legal framework of each member state.
to create a unified European state
France and Germany might put aside their long-running antagonism if given economic incentives
for cooperation
The British government opposed the supranational nature of the planned ECSC and decided not
to join.
In response to the EEC, Great Britain and six other non-EEC countries formed the European
Free Trade Association (EFTA) in 1960.
the institution of the European Monetary System to provide some stability in the relationships
among member currencies; and progress towards removing internal trade barriers and
establishing a single market.
Treaty of Maastricht, popular name for the Treaty on European Union, was approved at
Maastricht in the Netherlands by the 12 heads of government of the European Community in
December 1991 and signed on February 7, 1992. The treaty created joint foreign and monetary
policies, as well as fixing the European Currency Unit (ECU) as the basis for the future single
European currency, and projected the installation of a central bank by 1999. In general, it
reflected the intention of the EU to broaden the scale of monetary and economic union, and to
begin serious consideration of joint policies in regard to defence, citizenship, and the protection
of the environment. Before it could become fully effective, the treaty had to be ratified by all
member states.
Some countries were extremely reluctant to relinquish national control over their
monetary policies, notably Denmark and the United Kingdom.In consequence, the more
ambitious goals of the Treaty were reconsidered and its deadline for monetary union was
extended. Denmark and the United Kingdom were both given the option not to participate in
some aspects of the process of unification. The treaty was ratified in October 1993. The
European Union was established on November 1, when the treaty went into effect.
Outlook
The number of member countries in the EU is expected to increase by the end of the
decade. Turkey applied for membership in 1987; Austria in 1989; Cyprus and Malta in 1990;
Sweden in 1991; and Switzerland, Finland, and Norway in 1992. Several eastern European
countries are also expected to apply for membership. Switzerland later withdrew its membership
application to avoid violating its history of neutrality. Finland, Austria, and Sweden joined the EU
in 1995; after a referendum, Norway once again elected to remain outside.
The EU represents a desire for peace and cooperation among sovereign European
states. With increased cooperation and growth, the EU may become a major economic unit.