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European Integration, History of European Integration, EU Policies, The…
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- History of European Integration
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Jean Monnet 1888-1979
French businessman from Cognac, entered family business exporting liquor
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Overseas coordination of British and French war efforts during WW2 from London; Brits send him to Washington DC
In 1943, eventually joins French National Liberation Committee in Algiers
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The Schuman Decleration, 9. May 1950
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ECSC: National interests
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Germany: international respectability; consolidation of capitalist identity, some control over national resources
Italy: international respectability, consolidation off capitalist identity
France: control Germany's remilitarization, secure supplies of coal, dominate European steel production
Benelux: economic dependence on France and Germany, established customs union
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Redistributive Policy
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EU budget is small compared with member states, capped at roughly 1% of EU GDP; MS budgets in contrast average approx 47& of GDP
Simply not that much money redistribute - but EU does not pay for things that MS do (unemplyoment insurance, social insurance or welfare state, police or fire services etc.)
EU Spending: Budget 2016
Competitiveness for grwoth and jobs: 12,26 %
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Education, training and sport (Erasmus, Socrates)
Economic, social and territorial cohesion (Structural Funds): 32,79%
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Sustainable growth: natural resources: 40,31%
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CAP Reform
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Refrorms
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Income support for farmers decoupled from production (based on age, farming measures, farm size)
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Regulatory policies
Deregulation (negative integration): abolition of national-level regulations that hinder free exchange of goods, servises etc. (labelling requirement, erstriction sales
Reregulation: Establishment of new rules creating European-level standards that supersede national standards to ensure free market, fair competition
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Environmental policies
Limits to water, air, noise pollution
Regulation of use, storage, handling of hazardous materials
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Environmental policies increasing built into other policy (environment, transport)
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- The Court of Justiice of the EU
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Why Courts?
No law can cover all situations, incomplete contract subject to interpretation
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Controversial Courts
In parliamentary systems, parliaments are supreme
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But courts may be seen as protectors of the constitution, which requires interpretation
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Francovich vs Italy 1991
The Case
Commission brings infringement case, Italy takes no action
Employees of bankrupt Italian firm bring case before an Italian court arguing that their EU rights have been violated
Italy fails to implement directive requiring full payment of employees salary in the case of firm bankruptcy
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The Ruling
ECJ rules that directive did not technically have direct effect. However, governments are liable to compensate individuals for losses resulting from the non-implementation, even if the national legal systems do not permit such liability under 3 conditions:
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Causal link exists between the breach of EU obligations by the national government and the loss suffered by the individual
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Costa vs ENEL 1946
Costa refuses to pay electricity bill, because nationalization infringed on EC law by distorting the market
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ECJ ruled that Costa had no standing to challenge nationalization because this particular are of the treaty did not have direct effect
However, Italian government was wrong to say that individuals cannot use EC law to challenge national law. EU law can trump national law
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Why a Powerful ECJ?
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Court rules in favor of the member state, but in doing so, increases its power (Costa vs ENEL)
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Process
- Country submits an application to the Council
- Commission submits an Opinion on the application
- EU Member States decide unanimously to grant the country candidate status
- After conditions are met, the accession negotiations are opened with the agreeement of all Member States
- Commission proposes a negotiating framework as basis for the talks
- During negotiations, the country prepares to implement EU laws and standards. ALL EU Member States must agreee that it med all requirements
- Once negotiations on all areas are finalised, Commission gives its Opinion on the readiness of the country to become a Member State
- Based on this Opinion, EU MS decide unanimously to close the negotiation process. The European Parliament must also give its consent
- All EU Member States and the candidate country sign and ratify an Accession Treaty which enables the country to become an EU Member State
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Why not Enlarge?
potentially imoede decision-making, undermine deepening
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Why Refuse? (Norway, CH, Iceland)
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Transition Agreements
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More time to implement certain environmental directives, and ease state subsidies
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Conditions for entry set high, but difficult to punish once in
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Democratic Backsliding
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Attacks on the judiciary, press, universities
But also probems of corruption in Czechia, Romania, Bulgaria and others
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- Economic and Monetary Union
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Monetary Policy
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When economy is going strong, state raises interest rates to prevent economy from overheating
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If economy is weak, state can lower interest reates, putting more money into the economy, causing currency value to fall
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Optimal Currency Areas
Need to balance benefits gained from economies of scale with the effectiveness of using macroeconomic policy to premote growth and stability
If area is too small, we could further increase benefits from reducing trade barriers and transaction costs by increasing size
But if too large, different parts of the currency union could be harmed by an inappropiate monetary policy
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OCA Yes or No?
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EU
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lower labor mobility, but capital is mobile
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Covid-19 Crisis
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EU response
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Use of ESM line of credit to fund (subject to standard conditions for all member states), must be used on healthcare and COVID-19 related expenses
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Recovery fund financial though the EU Budget (with money possibly raised by joint borrowing), would provide grants
Use of Multiannual Financial Framework (MFF=) to support long term recovery - could mean the EU budget grows in coming years
Still little appetite for general Eurobonds, which would allow states to borrow money at low rates for any reason
Decision-Making
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Commission usnure of what actions to take, or would it could do based upon the treaties
Member states make decisions at Council meeting and then define a role for the Commission to play in overseeing how programs are carried out
- Interest Groups Politics, Lobbying and Agenda-Setting
Interest Groups Politics
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Lobbying - the act of groups pressuring politicians to get an outcome favorable to them - has a bad name
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Is Lobbying Democratic?
There is nothing inherently undemocratic about lobbying - its about getting voices heard on specific issues
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But if process is opaque and not all have access, it can skew outcomes, perhaps in undemocratic ways
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Where we started
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At least 11 million discplaced persons, many of whom could never return home
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- European Institutions and Decision-Making
What are Institutions?
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Two Definitions
The rules of the game ... the structures that determine the strategic interactions between individuals
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The Comission
The college
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EP can dissolve the Commission as a whole by a vote of no confidence (requires 2/3rds absolute majority)
The Bureaucracy
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33 directorates general, each tied to a Commissioner Portfolio
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European Council(s)
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The Council of Ministers
How it works
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if disagreement: might refer back to working group, resolve in COREPER, or pass to the ministers
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May require political decisions, consensus sought or may be put to a vote
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Diplomatic and intergovernmental in nature, but increasingly behaves like a legislature
European Parliament
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Organisation, Structure and Politics
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705 directly elected MEPs, representing citizens
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EU Decision-Making
- The comission makes a proposal
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Before making a proposal the Commission must make an impact assessment (economic, social, environmental)
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National parliament may trigger "early warning procedure" if they think that proposal violates the principle of subsidiarity
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Committee of Regions, representing subnational governments, may also comment
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Special procedures
Assent Procedure - For nominating Commission and certain policy areas (civil rights and discrimination)
Consultation Procedure - EP only issues advice (police cooperation, family law)
Agreement - No amendments, used for international agreements
Open Method of Coordination - where no legal basis for EU action, but member sstates want coordination
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- Can the EU even make a decision?
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Therefore, the Commission must cite the relevant clause of the treaty that allows them to act in a particular area
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What is decided?
Types of EU law
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Directives
sets out goals, but up to member states to implement them
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Its been decided, now what
If a directive, member-states draft implementing legislation
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- Why Europe? Theories of Integration
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- European Pariliament, Parties and Elections
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Elections to the EP
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Each member state gets fixed number of MEPs based on size. National parties selcet candidates and run campaigns
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Second Order Elections
Voting
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Many voters cast sincere votes, expressive / protest votes
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Disproportionality
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Electoral system disproportionality reflects differences from 1:1 relationship between seats and votes
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What is Public Opinion?
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Permissive Consensus
Citizens generally care less and know less about international affairs, realm of diplomats and elites
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In early days, scholars believed a permissive consensus towards European integration existed in the public
A generally favorable prevailing attitude towards integration, but low salience issue. People have non-attitudes
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Why support the EU?
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Political
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Political Benchmarking
When people perceive their national government as performing relatively well, they are more sceptical of EU
When people perceive their national government as performing poorly, they are less sceptical
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The Democratic Deficit
Standard Argument, Follesdal & Hix (2006)
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