Reforming the EEC Reforming the EEC – The Single – The Single

European ActEuropean Act

ReviewReview

Main problems encountered by the EEC in Main problems encountered by the EEC in 1970s? External vs. internal, Decision-1970s? External vs. internal, Decision-making…making…

Explain Explain negative negative vs. vs. positive positive integrationintegration Outline problems related to Outline problems related to

harmonisation strategy harmonisation strategy for for establishment of common marketestablishment of common market

Pitfalls of CAPPitfalls of CAP Enlargement-related problemsEnlargement-related problems

Prelude to the Single Prelude to the Single European ActEuropean Act

1985 –Delors 1985 –Delors CommissionCommission Jacques Delors – former French finance minister, Jacques Delors – former French finance minister,

respected by member governmentsrespected by member governments Aims to break through ‘Eurosclerosis’Aims to break through ‘Eurosclerosis’ Goals of Delors Commission:Goals of Delors Commission:- Strengthening of supranational institutionsStrengthening of supranational institutions- Changing budgetary preferences of EECChanging budgetary preferences of EEC- Moving towards Moving towards completion of common completion of common

marketmarket- Establishing a Establishing a monetary unionmonetary union

- Commissions political line enhanced by Commissions political line enhanced by developments on world marketdevelopments on world market

White Paper on Internal White Paper on Internal MarketMarket

Summer Summer 19851985 White paper White paper X X Green paperGreen paper Commission’s project to make progress Commission’s project to make progress

with the common marketwith the common market IdentifiIdentifieded about 300 NTBs of fiscal, about 300 NTBs of fiscal,

physical and administrative naturephysical and administrative nature Proposed their removal and completion of Proposed their removal and completion of

internal market by January 1, internal market by January 1, 19931993

Schengen AgreementSchengen Agreement

Parallel action by some MS to remove Parallel action by some MS to remove physical bordersphysical borders

Signed in 1985 symbolically in the town Signed in 1985 symbolically in the town of of Schengen Schengen borderingbordering LUX, LUX, GER andGER and FR FR

Intergovernmental treaty betweenIntergovernmental treaty between BENELUX, BENELUX, GER andGER and FR FR; not part of ; not part of acquis communitaireacquis communitaire

Removal of internal borders while Removal of internal borders while strengthening the external borders strengthening the external borders ((so-so-called Scalled Schengenchengen border border))

Single European ActSingle European Act

European Council meeting in Milan European Council meeting in Milan summersummer 1985 1985

- Called an Called an intergovernmental intergovernmental conference (IGC) conference (IGC) to change the to change the TreatiesTreaties

Single European Act (SEA) signed in Single European Act (SEA) signed in 1986 – 1986 – the first fundamental the first fundamental change of Rome Treatieschange of Rome Treaties

Task 1Task 1 Divide into groups and discuss preferences of Divide into groups and discuss preferences of

the following parties at the 1985 IGC:the following parties at the 1985 IGC:- The CommissionThe Commission- The EPThe EP- Council SecretariatCouncil Secretariat- The ‘minimalist’ camp (UK, Denmark, Greece)The ‘minimalist’ camp (UK, Denmark, Greece)- The ‘maximalist’ camp (ITA, GER, FRA)The ‘maximalist’ camp (ITA, GER, FRA)

What were the real final outcomes inWhat were the real final outcomes ina)a) Institutional levelInstitutional levelb)b) Adoption of new policiesAdoption of new policies

Main institutional changes Main institutional changes in SEA in SEA

Qualified Majority Voting (QMV) in Qualified Majority Voting (QMV) in the Council in majority internal the Council in majority internal market issuesmarket issues

Strengthening the European Strengthening the European Parliament (EP) by Parliament (EP) by cooperation cooperation and and assent assent proceduresprocedures

European Council European Council to be a part of to be a part of the primary lawthe primary law

SEA and policies of the SEA and policies of the EECEEC

Proposals of the White paper on Internal Proposals of the White paper on Internal Market adopted to the Treaty Market adopted to the Treaty

Explicit aim to build an Explicit aim to build an Economic and Economic and monetary unionmonetary union

Expanding the EEC mandateExpanding the EEC mandate to the to the areas such as social legislation, areas such as social legislation, environment, R&D …environment, R&D …

Solidarity clauseSolidarity clause Consultations in foreign policy affairs Consultations in foreign policy affairs

((European Political Cooperation - European Political Cooperation - EPCEPC))

Towards political union?Towards political union?

Ratification of SEARatification of SEA Held back in IrelandHeld back in Ireland ( (SEA in force inSEA in force in 1987) 1987) Constitutional challenge against the Constitutional challenge against the

government – signed the SEA without government – signed the SEA without holding referendumholding referendum

SuccessfulSuccessful due to foreign policy implications due to foreign policy implications for Irish neutralityfor Irish neutrality

- SEA endorsed in SEA endorsed in referendureferendumm

New challenge for EEC New challenge for EEC – – not merely a not merely a technical platform any more technical platform any more – – the issue of the issue of demodemocraticcratic deficit deficit

Internal MarketInternal Market Slimmer version of common market Slimmer version of common market

return to fundamentalsreturn to fundamentals DefinDefined as aed as a ‘space without internal ‘space without internal

frontiers, where free movement of goods, frontiers, where free movement of goods, services, persons and capital is ensured’ services, persons and capital is ensured’

To be completed by To be completed by 3131//1212//19921992 Unlike common market did not include Unlike common market did not include

obligations to create Eobligations to create EMU MU and an and an extensive economic and tax extensive economic and tax harmonisationharmonisation

The 4 FreedomsThe 4 Freedoms

Goods Goods (TEC, Arts. 23-31) (TEC, Arts. 23-31) – – mainly removal of mainly removal of NTBsNTBs

Persons Persons (TEC, Arts. 39-48) (TEC, Arts. 39-48) – – mutual recognition mutual recognition of qualifications, removal of discriminatory of qualifications, removal of discriminatory measures measures

Capital Capital (TEC, Arts. 56-60) (TEC, Arts. 56-60) – – removal of removal of restriction on cross-border movement of capital restriction on cross-border movement of capital

Services Services (TEC, Arts. 49-55) (TEC, Arts. 49-55) –– cross-border cross-border provision of services without need of settling at provision of services without need of settling at the recipient’s state territory – problematic due the recipient’s state territory – problematic due to diverging legal requirementsto diverging legal requirements

Reforming the Reforming the EEC – Towards EEC – Towards

the EUthe EU

Arguments for further Arguments for further Treaty reformsTreaty reforms

ExternalExternal – – collapse of the Soviet empirecollapse of the Soviet empire- stronger Union could emerge as a dominant power stronger Union could emerge as a dominant power

in Europe & gain ground after the Cold Warin Europe & gain ground after the Cold War- Security-related concernsSecurity-related concerns InternalInternal- - The Commission argued that EMU is necessary to The Commission argued that EMU is necessary to

utilize the advantages of the single marketutilize the advantages of the single market- Some MS required harmonisation of social Some MS required harmonisation of social

standards standards ((fears of fears of socisociaal dumping)l dumping)- Security concerns related to removal of internal Security concerns related to removal of internal

frontiers frontiers - DemoDemoccratic deficitratic deficit

Creating the Maastricht Creating the Maastricht TreatyTreaty

European Council agreed on changing the European Council agreed on changing the Treaty frameworkTreaty framework

Two Two IGCs convened in 1991 reflect the IGCs convened in 1991 reflect the new dimensions proposednew dimensions proposed

a)a) Conference on Conference on politicpoliticalal uni uniononb)b) Conference on economic and Conference on economic and

monetary union (EMU)monetary union (EMU) Need to reach consensus in a range of Need to reach consensus in a range of

controversial issuescontroversial issues ( (supranational supranational X X intergovernmental, soliintergovernmental, solidaritdarityy, , foreign foreign policy cooperation, social policy…)policy cooperation, social policy…)

Maastricht TreatyMaastricht Treaty Questions unresolved on IGC level were left to Questions unresolved on IGC level were left to

the the European Council European Council in in MaastrichtMaastricht in in December December 19919922

Tough negotiations resulted in a complicated Tough negotiations resulted in a complicated compromise with a range of exceptionscompromise with a range of exceptions

Most controversial pointsMost controversial points::- - New spheres of influence for the New spheres of influence for the

Community/Union Community/Union ((foreign policyforeign policy, , monetary monetary union, social policyunion, social policy…)…)

- Institutional balance (strengthening the EPInstitutional balance (strengthening the EP) ) - Political unionPolitical union? ? - CitizenshipCitizenship Treaty Establishing the European Union Treaty Establishing the European Union

signed in February signed in February 19921992

European UnionEuropean Union Based on ‘Based on ‘three pillarsthree pillars’:’:1)1) European Communities European Communities (E(EEC changed to ECEC changed to EC))2)2) Common foreign and security policy Common foreign and security policy ((CSFPCSFP))3)3) Justice and home affairs Justice and home affairs ((JHAJHA))

Pillar structure – a result of tough Pillar structure – a result of tough compromises; questionable coherence and too compromises; questionable coherence and too complex complex

Only the EC have legal personality, not the Only the EC have legal personality, not the EUEU

EU as a precursor for federation? - British EU as a precursor for federation? - British positionposition

‘‘Ever closer union between peoples’Ever closer union between peoples’

Pillar IPillar I

Based on previous TreatiesBased on previous Treaties Decision-making powers split between Decision-making powers split between

Commission, Council and EPCommission, Council and EP Two new principles:Two new principles:- Subsidiarity Subsidiarity – – (Art.(Art. 5) 5) What is it?What is it?- CitizenshipCitizenship ( (Arts.Arts.17 – 22) – 17 – 22) – Every Every

citizen of MS becomes EU citizen; citizen of MS becomes EU citizen; complementary; only rightscomplementary; only rights

Pillar I – InstiutionsPillar I – Instiutions

Co-decision procedure; to be applied Co-decision procedure; to be applied mainly in the area of Internal Marketmainly in the area of Internal Market

Commission’s mandate expanded from Commission’s mandate expanded from 4 to 5 years; must be approved by EP 4 to 5 years; must be approved by EP

New advisory body New advisory body Committee of Committee of RegionsRegions

ESD gains the ability to levy fines on ESD gains the ability to levy fines on defiant statesdefiant states

EP EP delegates an delegates an OmbudsmanOmbudsman

Pillar I – PoliciesPillar I – Policies

EEMUMU timetable timetable- GGB aB andnd D DEEN – „opt-out“ N – „opt-out“ NNewew a acctivittivitiesies – – development aid, development aid,

consumer protection, trans-European consumer protection, trans-European networks … networks …

Expansion of activities Expansion of activities agreed under agreed under SEA - SEA - R&D,R&D, environmental protection environmental protection, , economic and social cohesion economic and social cohesion – – Cohesion Cohesion FundFund

Social charter Social charter – rejected by GB– rejected by GB

Pillar II - CFSPPillar II - CFSP

Strictly intergovernmentalStrictly intergovernmental, , Commission and EP only informed, Commission and EP only informed, no powers of ECJno powers of ECJ

Security questions for the first Security questions for the first time on EU agendatime on EU agenda

No legislation binding for citizens No legislation binding for citizens GoalsGoals:: to protect common values, to protect common values,

interests and Union’s independenceinterests and Union’s independence

Pillar III - JHAPillar III - JHA

Reaction to removal of inner frontiersReaction to removal of inner frontiers Also intergovernmentalAlso intergovernmental JHA concernedJHA concerned: : asylum policies, asylum policies,

visa, immigration, organised crime, visa, immigration, organised crime, terrorism …terrorism …

Based on European Charter of Human Based on European Charter of Human Rights and Fundamental FreedomsRights and Fundamental Freedoms

Ratification of Ratification of Maastricht TreatyMaastricht Treaty

DDenmark enmark rejected the Treaty in rejected the Treaty in referendum in June 1992referendum in June 1992

Declarations guaranteeing subsidiarity Declarations guaranteeing subsidiarity and Danish opt-outsand Danish opt-outs

Successful referendum in 1993Successful referendum in 1993 Close referendum in Close referendum in FRFR Parliamentary battle in GBParliamentary battle in GB Constitutional challenge in GER Constitutional challenge in GER German constitutional court turned down German constitutional court turned down

the challegne but stated the the challegne but stated the ‘kompetenz-‘kompetenz-kompetenz’ kompetenz’ principleprinciple

Implications of the Implications of the ratification procedureratification procedure

Increasing interest of citizens in EU Increasing interest of citizens in EU matters combined with growing matters combined with growing distrustdistrust

Legitimacy questionsLegitimacy questions Democratic deficitDemocratic deficit- Institutional balance questionedInstitutional balance questioned- Questions of identity and ‘remoteness’Questions of identity and ‘remoteness’ Need for greater transparency and Need for greater transparency and

accountabilityaccountability