Forerunners to the EU 1951 European Coal and Steel Community o Belgium France W Germany Italy Netherlands Luxembourg o Goal reduce risk of war between France and Germany o Solution limit competition for natural resources by creating free trade for steel and coal o Main governing body European Commission bureaucracy o European Court of Justice ECJ to enforce compliance o European Parliament no power 1957 Treaty of Rome creates European Economic Community EEC o Same 6 members as ECSC o Four Freedoms Free trade of goods Free trade of services Free movement of people Free movement of capital o Common agricultural and transportation policies o Absorbed ECSC European Commission became governing body 1961 European Commission had too much autonomy so European Council created to give states veto o ECJ decided it could strike down national laws 1973 First Enlargement o UK Denmark Ireland join EEC o Norway negotiated to join but referendum didn t pass 1979 Parliament directly elected Second Enlargement o 1981 Greece o 1986 Spain Portugal 1986 Single Europe Act identical trade policies The European Union o Reduces non tariff barriers by having each member set 1992 Maastricht Treaty converts EEC into European Union o Agreement to create Euro in 10 years o Creates common foreign policy and strengthens control over domestic policy but keeps these separate from economic integration 1995 Sweden Finland Austria join Norway negotiates to join but referendum fails again 2004 Poland Cyprus Lithuania Latvia Estonia Slovenia Slovakia Czech Republic Malta Hungary join 2007 Libson Treaty o Majority now required instead of unanimous consent in most Commission committees o Parliament gains power to amend and veto Commission proposals 2007 Bulgaria Romania join 2013 Croatia joins EU Policymaking European Commission proposes legislation o One commissioner from each member state but bound to represent EU as whole o Bureaucracy to implement legislation European Council votes yes no on legislation controls foreign policy budget issue at hand o Members are heads of state or government minister for the o Vote shares based on population majority voting usually European Parliament votes yes no on legislation some ability to make amendments shares budget control w Commission o Directly elected by citizens seats proportional to population Successful legislation becomes directive to national governments to update policies European Court of Justice strikes down national laws that conflict w EU laws The Euro Since 2002 approximately of EU uses same currency Many criteria must be met before adopting o But hard to enforce after adoption European Central Bank to manage monetary policy EU in Practice Very few restriction on trade of goods Still some restrictions on trade of services but fewer than elsewhere rights Freest movement of labor anywhere no need for passports 18 28 share common currency High level of political integration on economic issues civil human Less integration on foreign policy especially in relations with developed countries EU Controversies Democratic deficit national governments ceding power to unelected Commission Unclear how popular EU is among citizens o Effort to create EU commission scrapped after referendums failed in France and Netherlands o Low turnout in EU Parliamentary elections Expansion to less wealthy countries creates issues especially in Eurozone counterparts o Less wealthy countries have to use prices of wealthier o Wealthy exposed to instability of developing members o Farmers in wealthy areas can t compete with Eastern Europe