Europe in 12 lessons.
Date: 2012-04-23
Institutions: Directorate-General for Communication
Subjects: EU activity, European Union, history of Europe, operation of the Institutions, the EU's international role

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European Union

Europe in 12 lessons 
 
 
 
 
 
 
 
You can find this booklet and other short, clear explanations about the EU online at 
ec.europa.eu/publications

European Commission
Directorate-General for Communication
Publications
1049 Brussels
BELGIUM

Manuscript completed in July 2010
Cover illustration: © Lou Wall/Corbis
Luxembourg: Publications Office of the European Union
2010 – 80 pp. – 16.2 × 22.9 cm

ISBN 978-92-79-17486-5
doi:10.2775/62733 

© European Union, 2010
Reproduction  is  authorised.  For  any  use  or  reproduction  of  individual  photos, 
permission must be sought directly from the copyright holders.

Printed in Germany 
Printed on white chlorine-free PaPer

Europe in 12 lessons
by Pascal Fontaine

Contents

page 4  
Why the European 
Union?

page 10  
Ten historic steps

page 14 
Enlarging the EU and 
getting on with the 
neighbours

page 44 
The euro

page 48 
Building on knowledge 
and innovation

page 52 
What does it mean 
to be a European 
citizen?

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page 14 

Enlarging the EU and 

getting on with the 

neighbours

page 20 
How does the EU 
work?

page 28 
What does the EU do?

page 38 
The single market

page 58 
A Europe of freedom, 
security and justice

page 64
The EU on the 
world stage

page 70 
What future 
for Europe?

page 74 
Key dates in the history  
of European integration

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The EU’s mission in the 21st century is to:  maintain and build on the peace established between its member states;  bring European countries together in practical cooperation; ensure that European citizens can live in security; promote economic and social solidarity;  preserve European identity and diversity in a globalised world; promulgate the values that Europeans share. 
 
 
I. Peace

Before  becoming  a  real  political  objective,  the  idea  of  uniting  Europe  was  just  a 
dream  in  the  minds  of  philosophers  and  visionaries.  Victor  Hugo,  for  example, 
imagined  a  peaceful ‘United  States  of  Europe’  inspired  by  humanistic  ideals. The 
dream  was  shattered  by  the  terrible  wars  that  ravaged  the  continent  during  the 
first half of the 20th century.

However, a new kind of hope emerged from the rubble of the Second World War. 
People  who  had  resisted  totalitarianism  during  the  war  were  determined  to  put 
an  end  to  international  hatred  and  rivalry  in  Europe  and  create  the  conditions 
for  lasting  peace.  Between  1945  and  1950,  a  handful  of  courageous  statesmen 
including  Robert  Schuman,  Konrad  Adenauer,  Alcide  de  Gasperi  and  Winston 
Churchill  set  about  persuading  their  peoples  to  enter  a  new  era.  New  structures 
would be created in western Europe, based on shared interests and founded upon 
treaties guaranteeing the rule of law and equality between all countries.

Robert Schuman (French Foreign Minister) took up an idea originally conceived by 
Jean Monnet and, on 9 May 1950, proposed establishing a European Coal and Steel 
Community (ECSC). In countries which had once fought each other, the production 
of coal and steel would be pooled under a common High Authority. In a practical 
but  also  richly  symbolic  way,  the  raw  materials  of  war  were  being  turned  into 
instruments of reconciliation and peace.

II. BrIngIng euroPe together

The  European  Union  encouraged  German  unification  after  the  fall  of  the  Berlin 
Wall in 1989. When the Soviet empire crumbled in 1991, the countries of central 
and eastern Europe, which had for decades endured life behind the ‘iron curtain’, 
were once again free to choose their own destiny. Many decided that their future 
lay within the family of democratic European nations. Eight of them joined the EU 
in 2004, and two more followed in 2007.

The  process  of  EU  enlargement  is  still  going  on.  Entry  negotiations  began  with 
Turkey  and  Croatia  in  2005.  Iceland  applied  in  2009  and  several  countries  in  the 
Balkans have set out along the road that could one day lead to EU membership. 
Croatia is expected to become the 28th member state of the European Union.

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The fall of the Berlin Wall in 1989 led to a gradual breaking down  
of old divisions across the continent of Europe. 

III. SecurIt y

Europe in the 21st century still faces security issues. The EU has to take effective 
action to ensure the security of its member states. It has to work constructively with 
the regions just beyond its borders: the Balkans, North Africa, the Caucasus and the 
Middle East. It must also protect its military and strategic interests by working with 
its allies, especially within NATO, and by developing a genuine common European 
security and defence policy.

Internal  and  external  security  are  two  sides  of  the  same  coin. The  fight  against 
terrorism  and  organised  crime  requires  the  police  forces  of  all  EU  countries  to 
work  together  closely.  Making  the  EU  an ‘area  of  freedom,  security  and  justice’ 
where everyone has equal access to justice and is equally protected by the law is 
a  new  challenge  that  requires  close  cooperation  between  governments.  Bodies 
like Europol, the European Police Office and Eurojust (which promotes cooperation 
between prosecutors, judges and police officers in different EU countries) also have 
to play an active and effective role.

IV. economIc and SocIal SolIdarIt y

The European Union was created to achieve political goals, and it set about achieving 
them through economic cooperation.

European  countries  account  for  an  ever  smaller  percentage  of  the  world’s 
population. They  must  therefore  continue  pulling  together  if  they  are  to  ensure 
economic  growth  and  be  able  to  compete  on  the  world  stage  with  other  major 
economies. No individual EU country is strong enough to go it alone in world trade. 
To achieve economies of scale and find new customers, European companies need a 
broader base than just their national home market, and the European single market 
provides it. To ensure that as many people as possible benefit from this Europe-wide 
market of 500 million consumers, the EU is endeavouring to remove obstacles to 
trade and is working to free businesses from unnecessary red tape.

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But  Europe-wide  free  competition  must  be  counterbalanced  by  Europe-wide 
solidarity.  This  has  clear  tangible  benefits  for  European  citizens:  when  they  fall 
victim  to  floods  and  other  natural  disasters,  they  receive  assistance  from  the  EU 
budget. The ‘Structural Funds’, managed by the European Commission, encourage 
and supplement the efforts of the EU’s national and regional authorities to reduce 
inequalities  between  different  parts  of  Europe.  Money  from  the  EU  budget  and 
loans  from  the  European  Investment  Bank  (EIB)  are  used  to  improve  Europe’s 
transport  infrastructure  (for  example,  to  extend  the  network  of  motorways  and 
high-speed railways), thus providing better access to outlying regions and boosting 
trans-European trade.

The global financial crisis in 2008 triggered the sharpest economic downturn in the 
EU’s history. Governments and EU institutions had to act swiftly to rescue banks, 
and  the  EU  provided  financial  assistance  to  the  hardest-hit  countries.  Sharing  a 
single currency helped protect the euro area against speculation and devaluation. 
Then,  in  2010,  the  EU  and  its  member  states  made  a  concerted  effort  to  reduce 
their public debt. The big challenge for European countries in the years ahead will 
be to stand together in the face of global crises and to find, together, a way out of 
recession and into sustainable growth.

V.  euroPean IdentIt y and dIVerSIt y 

In a gloBalISed world

Europe’s  post-industrial  societies  are  becoming  increasingly  complex.  Standards 
of living have risen steadily, but there are still significant gaps between rich and 
poor. These gaps may be widened by factors such as economic recession, industrial 
relocation, the ageing of the population and problems with public finances. It is 
important for EU countries to work together to tackle these problems.

But  working  together  does  not  mean  erasing  the  distinct  cultural  and  linguistic 
identity of individual countries. On the contrary, many EU activities help promote 
regional specialities and the rich diversity of Europe’s traditions and cultures.

In  the  long  run,  all  EU  countries  benefit.  Sixty  years  of  European  integration  has 
shown that the EU as a whole is greater than the sum of its parts. It has much more 
economic, social, technological, commercial and political clout than if its member 
states had to act individually. There is added value in acting together and speaking 
with a single voice.

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United in diversity: working together achieves better results.

In  today’s  world,  rising  economies  such  as  China,  India  and  Brazil  are  set  to  join 
the United States as global superpowers. It is therefore more vital than ever for the 
member states of the European Union to come together and achieve a ‘critical mass’, 
thus maintaining their influence on the world stage.

How does the EU exercise this influence?

   The European Union is the world’s leading trading power and therefore plays 
a  decisive  role  in  international  negotiations,  such  as  those  among  the  153 
member  countries  of  the World Trade  Organisation  (WTO),  or  at  the  United 
Nations conferences on climate change.

   The EU takes a clear position on sensitive issues affecting ordinary people, such 
as environmental protection, renewable energy resources, the ‘precautionary 
principle’  in  food  safety,  the  ethical  aspects  of  biotechnology,  the  need  to 
protect endangered species, etc.

   The EU remains at the forefront of global efforts to tackle global warming. In 
December 2008 it unilaterally committed itself to a 20 % cut in greenhouse gas 
emissions by 2020.

The old saying ‘unity is strength’ is thus as relevant as ever to today’s Europeans.

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VI. ValueS

The EU wishes to promote humanitarian and progressive values, and ensure that 
humankind is the beneficiary, rather than the victim, of the great global changes 
that are taking place. People’s needs cannot be met simply by market forces, or by 
individual countries taking unilateral action.

So  the  EU  stands  for  a  view  of  humanity  and  a  model  of  society  that  the  great 
majority  of  its  citizens  support.  Europeans  cherish  their  rich  heritage  of  values, 
which  includes  a  belief  in  human  rights,  social  solidarity,  free  enterprise,  a  fair 
distribution of the fruits of economic growth, the right to a protected environment, 
respect  for  cultural,  linguistic  and  religious  diversity  and  a  harmonious  blend  of 
tradition and progress.

The Charter of Fundamental Rights of the European Union was proclaimed in Nice 
in December 2000. It is now legally binding thanks to the Treaty of Lisbon, which 
came into force on 1 December 2009. The Charter sets out all the rights recognised 
today by the EU’s member states and their citizens. Shared rights and values create 
a feeling of kinship between Europeans. To take just one example, all EU countries 
have abolished the death penalty.

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   1951:  The European Coal and Steel Community is set up 

by the six founding members.

   1957:  The same six countries sign the Treaties of Rome, 

setting up the European Economic Community 
(EEC) and the European Atomic Energy 
Community (Euratom).

   1973:  The Communities expand to nine member states 
and introduce more common policies.

   1979:  The first direct elections to the European 

Parliament.

   1981: The first Mediterranean enlargement.

  1992: The European single market becomes a reality.

   1993:  The Treaty of Maastricht establishes the 

European Union (EU).

  2002: The euro comes into circulation.

  2007: The EU has 27 member states.

   2009:  The Lisbon Treaty comes into force, changing the 

way the EU works.

 
 
1.
On 9 May 1950, the Schuman Declaration proposed the establishment of a European 
Coal and Steel Community, which became reality with the Treaty of Paris of 18 April 
1951. This put in place a common market in coal and steel between the six founding 
countries  (Belgium,  the  Federal  Republic  of  Germany,  France,  Italy,  Luxembourg 
and the Netherlands). The aim, in the aftermath of the Second World War, was to 
secure peace between Europe’s victorious and vanquished nations and bring them 
together as equals, cooperating within shared institutions.

2.
  The ‘Six’  then  decided,  with  the  Treaties  of  Rome  on  25  March  1957,  to  set  up 
a  European  Atomic  Energy  Community  (Euratom)  and  a  European  Economic 
Community  (EEC).  The  latter  would  involve  building  a  wider  common  market 
covering  a  whole  range  of  goods  and  services.  Customs  duties  between  the  six 
countries were abolished on 1 July 1968 and common policies, notably on trade 
and agriculture, were also put in place during the 1960s.

3.
So  successful  was  this  venture  that  Denmark,  Ireland  and  the  United  Kingdom 
decided  to  join. This  first  enlargement,  from  six  to  nine  members,  took  place  in 
1973. At the same time, new social and environmental policies were introduced, 
and the European Regional Development Fund (ERDF) was set up in 1975.

On 9 May 1950, French Foreign Minister Robert Schuman first publicly proposed the ideas that led 
to the European Union. So 9 May is celebrated as the EU’s birthday.

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4.
June  1979  saw  a  decisive  step  forward,  with  the  first  elections  to  the  European 
Parliament by direct universal suffrage. These elections are held every five years.

5.
In 1981, Greece joined the Communities, followed by Spain and Portugal in 1986. 
This  expansion  of  the  Communities  into  southern  Europe  made  it  all  the  more 
necessary to implement regional aid programmes.

6.
The  worldwide  economic  recession  in  the  early  1980s  brought  with  it  a  wave   
of   ‘euro-pessimism’.  However,  hope  sprang  anew  in  1985  when  the  European 
Commission, under its President Jacques Delors, published a White Paper setting 
out  a  timetable  for  completing  the  European  single  market  by  1  January  1993. 
This ambitious goal was enshrined in the Single European Act, which was signed in 
February 1986 and came into force on 1 July 1987.

7.
The political shape of Europe was dramatically changed when the Berlin Wall fell 
in 1989. This led to the unification of Germany in October 1990 and the coming of 
democracy to the countries of central and eastern Europe as they broke away from 
Soviet control. The Soviet Union itself ceased to exist in December 1991.

At  the  same  time,  the  EEC  member  states  were  negotiating  a  new  treaty,  which 
was  adopted  by  the  European  Council  (the  meeting  of  presidents  and/or  prime 
ministers)  at  Maastricht  in  December  1991.  By  adding  intergovernmental 
cooperation (in areas such as foreign policy and internal security) to the existing 
Community system, the Maastricht Treaty created the European Union (EU). It came 
into force on 1 November 1993.

8.
Three more countries – Austria, Finland and Sweden – joined the European Union 
in 1995, bringing its membership to 15. By then, Europe was facing the growing 
challenges  of  globalisation.  New  technologies  and  the  ever-increasing  use  of 
the  Internet  were  modernising  economies  but  also  creating  social  and  cultural 
tensions. At the same time, unemployment and the rising cost of pensions were 
putting  pressure  on  national  economies,  making  reform  all  the  more  necessary. 
Voters were increasingly calling on their governments to find practical solutions to 
these problems.

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In March 2000, therefore, EU leaders adopted the ‘Lisbon strategy’. It was designed 
to enable the European Union to compete on the world market with other major 
players such as the United States and the newly industrialised countries. The aim 
was to encourage innovation and business investment, and to ensure that Europe’s 
education systems met the needs of the information society.

Meanwhile, the EU was working on its most spectacular project to date – creating 
a single currency to make life easier for businesses, consumers and travellers. On 
1  January  2002,  the  euro  replaced  the  old  currencies  of  12  EU  countries,  which 
together made up the ‘euro area’. The euro is now a major world currency alongside 
the US dollar.

9.
In  the  mid-1990s,  preparations  began  for  the  biggest-ever  EU  enlargement. 
Membership applications were received from the six former Soviet-bloc countries 
(Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia), the three 
Baltic states that had been part of the Soviet Union (Estonia, Latvia and Lithuania), 
one  of  the  republics  of  former  Yugoslavia  (Slovenia)  and  two  Mediterranean 
countries (Cyprus and Malta).

The EU welcomed this chance to help stabilise the European continent and to extend 
the  benefits  of  European  integration  to  the  young  democracies.  Negotiations 
opened in December 1997 and 10 of the candidate countries joined the European 
Union on 1 May 2004. Bulgaria and Romania followed on 1 January 2007, bringing 
the EU’s membership to 27.

10.
To enable it to face the complex challenges of the 21st century, the enlarged EU 
needed a simpler and more efficient method for taking its joint decisions. New rules 
had been proposed in a draft EU Constitution, signed in October 2004, which would 
have replaced all the existing treaties. But this text was rejected by two national 
referendums  in  2005.  The  Constitution  was  therefore  replaced  by  the  Treaty  of 
Lisbon, which was signed on 13 December 2007 and came into force on 1 December 
2009. It amends but does not replace the previous treaties, and it introduces most 
of the changes that featured in the Constitution. For example, it gives the European 
Council a permanent President and creates the post of High Representative of the 
Union for Foreign Affairs and Security Policy.

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   The European Union is open to any European country 
that fulfils the democratic, political and economic 
criteria for membership.

   Successive enlargements (the most recent being in 

2007) have increased the EU’s membership from six to 
27 countries. As of 2010, nine other countries are either 
negotiating membership (e.g. Croatia and Turkey) or 
are in different stages of preparation. Croatia is set to 
become the 28th member state of the European Union.

   Each treaty admitting a new member requires the 

unanimous approval of all member states. In addition, 
in advance of each new enlargement, the EU must 
assess its capacity to absorb the new member(s) and 
the ability of its institutions to continue to function 
properly.

   Enlarging the European Union has helped strengthen 
and stabilise democracy and security in Europe and 
increase the continent’s potential for trade and 
economic growth.

 
 
 
 
 
 
 
 
I. unItIng a contInent

(a) a union of 27
When  it  met  in  Copenhagen  in  December  2002,  the  European  Council  took  one 
of the most momentous steps in the history of European integration. By inviting 
12  more  countries  to  join  it,  the  European  Union  was  not  simply  increasing  its 
geographical size and population; it was putting an end to the division which had 
split our continent in two since 1945. European countries which, for decades, had 
not enjoyed democratic freedom were finally able to rejoin the family of democratic 
European  nations.  Thus  the  Czech  Republic,  Estonia,  Hungary,  Latvia,  Lithuania, 
Poland,  Slovakia  and  Slovenia  became  EU  members  in  2004,  together  with  the 
Mediterranean  islands  of  Cyprus  and  Malta.  Bulgaria  and  Romania  followed 
in  2007.  All  are  now  partners  in  the  momentous  project  conceived  by  the  EU’s 
founding fathers.

(b) negotiations under way
Turkey, a member of NATO with a long-standing association agreement with the 
EU, applied for European Union membership in 1987. Given Turkey’s geographical 
location and political history, the EU hesitated for a long time before accepting its 
application. However, in October 2005, accession negotiations finally began – not 
only with Turkey but also with Croatia. As of 2010, the negotiations with Croatia 
were  near  completion.  Some  EU  countries  have  expressed  doubts  as  to  whether 
Turkey will or should become a member of the European Union. They propose an 
alternative arrangement – a ‘privileged partnership’ – but Turkey rejects this idea. 

(c) the western Balkans and Iceland
The western Balkan countries, most of which were once part of Yugoslavia, are also 
turning to the European Union to speed up their economic reconstruction, improve 
their mutual relations (long scarred by ethnic and religious wars) and consolidate 
their  democratic  institutions.  In  2005,  the  EU  gave ‘candidate  country’  status  to 
the  former  Yugoslav  Republic  of  Macedonia.  Potential  candidates  are  Albania, 
Bosnia and Herzegovina, Montenegro and Serbia, each of which has a ‘stabilisation 
and  association’  agreement  with  the  EU,  designed  to  pave  the  way  for  eventual 
membership talks. Iceland, hard hit by the financial crisis in 2008, applied for EU 
membership in 2009. Kosovo declared its independence on 18 February 2008 and 
could also become an official candidate country. 

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By the end of this decade, therefore, European Union membership could grow from 
27 to 35 countries. This would be another major enlargement and would probably 
require further changes in the way the EU works.

II. memBerShIP  condItIonS

(a) legal requirements
European integration has always been a political and economic process, open to all 
European countries that are prepared to sign up to the Treaties and take on board 
the full body of EU law. According to the Lisbon Treaty (Article 49), any European 
state may apply to become a member of the European Union provided it respects 
the  principles  of  liberty,  democracy,  respect  for  human  rights  and  fundamental 
freedoms, and the rule of law.

(b) the ‘copenhagen criteria’
In 1993, following requests from the former communist countries to join the Union, 
the  European  Council  laid  down  three  criteria  they  should  fulfil  so  as  to  become 
members. By the time they join, new members must have:

   stable institutions guaranteeing democracy, the rule of law, human rights and 

respect for and protection of minorities;

   a  functioning  market  economy  and  the  capacity  to  cope  with  competitive 

pressure and market forces within the Union;

   the ability to take on the obligations of membership, including support for the 
aims of the Union. They must have a public administration capable of applying 
and managing EU laws in practice.

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The ‘Pearl of the Adriatic’ – Dubrovnik in Croatia, a candidate for EU membership.

(c) the process of becoming an eu member state
Membership  talks  (‘accession  negotiations’)  take  place  between  the  candidate 
country  and  the  European  Commission,  which  represents  the  EU.  Once  these 
are  concluded,  the  decision  to  allow  this  country  to  join  the  EU  must  be  taken 
unanimously by the existing member states meeting in the Council. The European 
Parliament  must  also  give  its  assent,  which  means  an  absolute  majority  of  its 
members  must  vote  in  favour. The  accession  treaty  must  then  be  ratified  by  the 
member  states  and  the  candidate  country,  each  in  accordance  with  its  own 
constitutional procedure.

During the negotiation period, candidate countries normally receive EU ‘accession 
partnership’  aid  to  help  them  catch  up  economically.  They  also  usually  have 
‘stabilisation  and  association  agreements’  with  the  EU.  Under  these  agreements, 
the EU directly monitors the economic and administrative reforms the candidate 
countries have to carry out in order to meet the conditions for EU membership. 

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III. how large c an the eu  Become?

(a) geographical frontiers
In most EU countries, discussions about the proposed Constitutional Treaty showed 
that many Europeans are concerned about where the borders of the European Union 
should be drawn, and even about Europe’s identity. There are no simple answers to 
these questions, particularly since each country views its geopolitical or economic 
interests differently. The Baltic countries and Poland are in favour of Ukraine joining 
the  EU,  so  what  about  Ukraine’s  neighbours?  Difficulties  arise  from  the  political 
situation in Belarus and the strategic position of Moldova. If Turkey joins the EU, 
then what about Armenia, Georgia and other countries in the Caucasus?

The EU gives financal aid to help build the economy in neighbouring countries.

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Despite  fulfilling  the  conditions,  Liechtenstein,  Norway  and  Switzerland  are  not 
members  of  the  European  Union  because  public  opinion  in  those  countries  is 
currently against joining.

In different EU countries, public opinion is more or less divided over the question 
of the European Union’s final frontiers. If geographical criteria alone were applied, 
taking no account of democratic values, the EU could – like the Council of Europe 
(not an EU body) – end up with 47 member states including Russia. But Russian 
membership would clearly create unacceptable imbalances in the European Union, 
both politically and geographically.

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The sensible approach is to say that any European country is entitled to apply for EU 
membership provided it can take on board the full body of EU law and is prepared 
to adopt the euro. European integration has been a continuous process since 1950, 
and any attempt to fix the EU’s boundaries once and for all would run counter to 
that process.

(b) neighbourhood policy
Enlargements in 2004 and 2007 pushed the European Union’s borders further east 
and south, raising the question of how the EU should handle relations with its new 
neighbours. Stability and security are an issue in the regions beyond its borders, and 
the European Union wished to avoid the emergence of new dividing lines between 
itself and these neighbouring regions. For example, action was needed to tackle 
emerging threats to security such as illegal immigration, the disruption of energy 
supplies, environmental degradation, organised cross-border crime and terrorism. 
So  the  EU  developed  a  new  European  neighbourhood  policy  (ENP),  governing 
relations  with  its  neighbours  to  the  east  (Armenia,  Azerbaijan,  Belarus,  Georgia, 
Moldova and Ukraine), and to the south (Algeria, Egypt, Israel, Jordan, Lebanon, 
Libya, Morocco, the occupied Palestinian territory, Syria and Tunisia).

Almost all these countries have bilateral ‘partnership and cooperation’ agreements 
or association agreements with the EU, under which they are committed to common 
values (such as democracy, human rights and the rule of law) and to making progress 
towards a market economy, sustainable development and reducing poverty. The EU, 
for its part, offers financial, technical and macroeconomic assistance, easier access 
to visas and a range of measures to help these countries develop.

Since 1995, the southern Mediterranean countries have been linked to the European 
Union  through  political,  economic  and  diplomatic  ties  known  as  the ‘Barcelona 
process’,  later  re-named  the  Euro-Mediterranean  Partnership.  At  a  summit 
meeting in Paris in July 2008, this partnership was relaunched as the Union for the 
Mediterranean, bringing together the 27 member states of the European Union and 
16 partner countries across the southern Mediterranean and the Middle East.

The EU’s financial assistance to both groups of countries is managed by the European 
Neighbourhood and Partnership Instrument (ENPI). Its overall budget for 2007-13 
is approximately € 12 billion.

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   The EU’s Heads of State and/or Government meet, as 
the European Council, to set the EU’s overall political 
direction and to take major decisions on key issues.

   The Council, made up of ministers from the EU member 
states, meets frequently to take policy decisions and 
make EU laws.

   The European Parliament, which represents the people, 

shares legislative and budgetary power with the 
Council.

   The European Commission, which represents the 

common interest of the EU, is the main executive body. 
It puts forward proposals for legislation and ensures 
that EU policies are properly implemented. 

 
 
 
 
 
 
I. the decISIon-makIng InStItutIonS

The European Union is more than just a confederation of countries, but it is not a 
federal state. In fact, its structure does not fall into any traditional legal category. It 
is historically unique, and its decision-making system has been constantly evolving 
for the past 60 years or so.

The  Treaties  (known  as  ‘primary’  legislation)  are  the  basis  for  a  large  body 
of  ‘secondary’  legislation  which  has  a  direct  impact  on  the  daily  lives  of  EU 
citizens.  The  secondary  legislation  consists  mainly  of  regulations,  directives  and 
recommendations adopted by the EU institutions.

These  laws,  along  with  EU  policies  in  general,  are  the  result  of  decisions  taken 
by  the  Council  (representing  national  governments),  the  European  Parliament 
(representing the people) and the European Commission (a body independent of 
EU governments that upholds the collective European interest). Other institutions 
and bodies also play a role, as outlined below.

(a) the european council
The European Council is the EU’s top political institution. It consists of the Heads 
of  State  or  Government  –  the  presidents  and/or  prime  ministers  –  of  all  the  EU 
member countries, plus the President of the European Commission (see below). It 
normally meets four times a year, in Brussels. It has a permanent President, whose 
job  is  to  coordinate  the  European  Council’s  work  and  ensure  its  continuity.  The 
permanent President is elected (by a qualified majority vote of its members) for a 
period of two and a half years and can be re-elected once. The former Belgian Prime 
Minister, Herman Van Rompuy, has occupied this post since 1 December 2009.

The European Council fixes the EU’s goals and sets the course for achieving them. 
It  provides  the  impetus  for  the  EU’s  main  policy  initiatives  and  takes  decisions 
on thorny issues that the Council of Ministers has not been able to agree on. The 
European  Council  also  tackles  current  international  problems  via  the  ‘common 
foreign and security policy’ – which is a mechanism for coordinating the foreign 
policies of the EU’s member states. 

21

(b) the council
The Council (also known as the Council of Ministers) is made up of ministers from 
the  EU’s  national  governments.  The  member  states  take  it  in  turns  to  hold  the 
Council  Presidency  for  a  six-month  period.  Every  Council  meeting  is  attended  by 
one minister from each EU country. Which ministers attend a meeting depends on 
which topic is on the agenda: foreign affairs, agriculture, industry, transport, the 
environment, etc.

The  Council’s  main  job  is  to  pass  EU  laws.  Normally  it  shares  this  responsibility 
with  the  European  Parliament.  The  Council  and  the  Parliament  also  share 
equal  responsibility  for  adopting  the  EU  budget.  In  addition,  the  Council  signs 
international agreements that have been negotiated by the Commission.

According  to  the  Lisbon  Treaty,  the  Council  has  to  take  its  decisions  either  by  a 
simple majority vote, a ‘qualified majority’ vote or unanimously, depending on the 
subject to be decided.

The  Council  has  to  agree  unanimously  on  important  questions  such  as  taxation, 
amending the Treaties, launching a new common policy or allowing a new country 
to join the Union.

In  most  other  cases,  qualified  majority  voting  is  used. This  means  that  a  Council 
decision is adopted if a specified minimum number of votes are cast in its favour. 
The number of votes allocated to each EU country roughly reflects the size of its 
population. 

Until 1 November 2014, assuming the EU still has 27 member states, a decision is 
adopted if:

  at least 255 of the 347 votes (i.e. 73.91 %) are cast in favour;

  it is approved by a majority of member states, i.e. at least 14;

   if  these  favourable  member  states  represent  at  least  62 %  of  the  EU’s 

population.

A more democratic Europe: thanks to the Lisbon Treaty, European citizens can now propose new laws.

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From 1 November 2014, according to the Lisbon Treaty, the system will be simplified. 
A decision will be adopted if 55 % of the member states (i.e. at least 15 of them) are 
in favour of it and if they represent at least 65 % of the EU’s population. 

(c) the european Parliament (eP)
The  European  Parliament  is  the  elected  body  that  represents  the  EU’s  citizens.  It 
supervises the EU’s activities and, together with the Council, it enacts EU legislation. 
Since 1979, members of the European Parliament (MEPs) have been directly elected, 
by universal suffrage, every five years

After  the  last  EP  elections,  in  June  2009,  the  former  Polish  Prime  Minister  Jerzy 
Buzek  (European  People’s  Party)  was  elected  President  of  the  Parliament  for  a 
period of two and a half years.

The European Parliament – this is where you can make your voice heard.

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Parliament  holds  its  major  debates  at  monthly  gatherings  (known  as  ‘plenary 
sessions’) attended, in principle, by all MEPs. These plenary sessions are normally 
held in Strasbourg, and any additional sessions are held in Brussels. The preparatory 
work  is  also  usually  done  in  Brussels:  the  ‘Conference  of  Presidents’  –  i.e.  the 
chairmen of the political groups together with the President of Parliament – sets 
the  agenda  for  the  plenary  sessions  while  20  parliamentary  committees  draft 
the  legislative  amendments  that  are  to  be  debated.  Parliament’s  day-to-day 
administrative work is done by its General Secretariat, based in Luxembourg and 
Brussels. Each political group also has its own secretariat.

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number of seats in the european Parliament per country following the 
elections in 2009

Austria

Belgium

Bulgaria

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

ToTal

17

22

17

6

22

13

6

13

72

99

22

22

12

72

Latvia

Lithuania

Luxembourg

Malta

Netherlands

Poland

Portugal

Romania

Slovakia

Slovenia

Spain

Sweden

United Kingdom

8

12

6

5

25

50

22

33

13

7

50

18

72

736

NB: A decision according to Protocol No 36 to the Treaty of Lisbon will temporarily increase the 
total number of MEPs to 754, until the next elections in 2014. 

The Parliament takes part in the legislative work of the EU in two ways.

   Via ‘co-decision’, which is the ordinary legislative procedure, Parliament 
shares equal responsibility with the Council for legislating in all policy areas 
that require a ‘qualified majority’ vote in the Council. Since the Lisbon Treaty 
came  into  force,  these  areas  cover  about  95 %  of  EU  legislation.  Council 
and Parliament can reach an agreement as soon as the first reading. If they 
cannot agree after two readings, the proposal is brought before a conciliation 
committee.

   Via  the  ‘assent’  procedure,  Parliament  must  ratify  the  EU’s  international 
agreements  (negotiated  by  the  Commission),  including  any  new  treaty 
enlarging the European Union.

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the political groups in the european Parliament 

Greens/European 
Free Alliance
55

Alliance of Liberals and 
Democrats for Europe 
85

Progressive Alliance of 
Socialists and Democrats  
184 

European United Left 
— Nordic Green Left  
35

Situation in July 2010

TOTAL
736

European People’s Party 
(Christian Democrats) 
265

European Conservatives 
and Reformists
54

Europe of Freedom  
and Democracy  
30 

Non-attached members  
28

The  European  Parliament  also  shares  with  the  Council  equal  responsibility  for 
adopting the EU budget (proposed by the European Commission). The Parliament 
can reject the proposed budget, and it has already done so on several occasions. 
When  this  happens,  the  entire  budget  procedure  has  to  be  restarted.  By  using 
its  budgetary  powers  Parliament  exercises  considerable  influence  over  EU 
policymaking.

Last but not least, the European Parliament exercises democratic supervision over the 
Union, and in particular over the European Commission. Every five years, when the 
time comes to appoint a new Commission, the newly elected European Parliament 
can – by a simple majority vote – approve or reject the European Council’s nominee 
for  the  post  of  Commission  President.  Clearly,  this  vote  will  reflect  the  results  of 
the recent EP elections. Parliament also interviews each proposed member of the 
Commission before voting on whether to approve the new Commission as a whole.

At any time, Parliament can dismiss the whole Commission by adopting a motion 
of censure. This requires a two thirds majority. Parliament also supervises the day-
to-day  management  of  EU  policies  by  putting  oral  and  written  questions  to  the 
Commission and the Council.

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(d) the european commission
The Commission is a key EU institution. It alone has the right to draw up proposals 
for new EU legislation, which it sends to the Council and Parliament for discussion 
and adoption.

Its members are appointed for a five-year term by agreement between the member 
states, subject to approval by the European Parliament (as described above). The 
Commission  is  answerable  to  the  Parliament,  and  the  entire  Commission  has  to 
resign if the Parliament passes a motion of censure against it.

There is one Commission member (‘Commissioner’) from each EU country, including 
the  Commission  President  and  the  High  Representative  of  the  Union  for  Foreign 
Affairs and Security Policy, who is one of the Commission’s vice-presidents.

On 9 February 2010, the European Parliament voted to approve the new Commission. 
The  former  Prime  Minister  of  Portugal,  José  Manuel  Barroso,  was  reappointed 
President of the Commission for a second five-year term. 

The  Commission  enjoys  a  substantial  degree  of  independence  in  exercising  its 
powers.  Its  job  is  to  uphold  the  common  interest,  which  means  that  it  must  not 
take instructions from any national government. As ‘Guardian of the Treaties’, it has 
to ensure that the regulations and directives adopted by the Council and Parliament 
are being implemented in the member states. If they are not, the Commission can 
take the offending party to the Court of Justice to oblige it to comply with EU law.

As  the  EU’s  executive  arm,  the  Commission  implements  the  decisions  taken  by 
the Council in areas such as the common agricultural policy. It has wide powers to 
manage the EU’s common policies, such as research and technology, overseas aid 
and regional development. It also manages the budget for these policies.

The  Commissioners  are  assisted  by  a  civil  service,  based  mainly  in  Brussels  and 
Luxembourg, divided into 43 departments and services. There are also a number of 
agencies, set up to carry out specific tasks for the Commission and mostly located 
in other European cities.

(e) the court of Justice
The  Court  of  Justice  of  the  European  Union,  located  in  Luxembourg,  is  made  up 
of one judge from each EU country, assisted by eight advocates-general. They are 
appointed  by  joint  agreement  of  the  governments  of  the  member  states  for  a 
renewable term of six years. Their independence is guaranteed. The Court’s role is to 
ensure that EU law is complied with, and that the Treaties are correctly interpreted 
and applied.

(f) the european central Bank
The European Central Bank (ECB), in Frankfurt, is responsible for managing the euro 
and the EU’s monetary policy (see Chapter 7 ‘The euro’). Its main task is to maintain 
price stability in the euro area. The Central Bank acquired the status of EU institution 
under the Treaty of Lisbon.

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The Court of Justice ensures that European law is fully respected. It has, for example,  
confirmed that discrimination of handicapped workers is forbidden.

(g) the court of auditors
The European Court of Auditors, located in Luxembourg, was established in 1975. 
It  has  one  member  from  each  EU  country,  appointed  for  a  term  of  six  years  by 
agreement  between  the  member  states  following  consultation  of  the  European 
Parliament. It checks that all the European Union’s revenue has been received and 
all its expenditure incurred in a lawful and regular manner and that the EU budget 
has been managed soundly.

II. o ther BodIeS

(a) the european economic and Social committee
When  taking  decisions  in  a  number  of  policy  areas,  the  Council  and  Commission 
consult the European Economic and Social Committee (EESC). Its members represent 
the various economic and social interest groups that collectively make up ‘organised 
civil society’, and are appointed by the Council for a five-year term.

(b) the committee of the regions
The Committee of the Regions (CoR) consists of representatives of regional and local 
government. They are proposed by the member states and appointed by the Council 
for a five-year term. The Council and Commission must consult the CoR on matters 
of relevance to the regions, and it may also issue opinions on its own initiative.

(c) the european Investment Bank
The  European  Investment  Bank  (EIB),  based  in  Luxembourg,  provides  loans  and 
guarantees  to  help  the  EU’s  less  developed  regions  and  to  help  make  businesses 
more competitive.

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   The European Union acts in a wide range of policy areas 
where its action is beneficial to the member states. 
These include:

•	 innovation policies, which bring state-of-the-

art technologies to fields such as environmental 
protection, research and development (R & D) and 
energy;

•	 solidarity policies (also known as cohesion policies) in 

regional, agricultural and social affairs.

   The Union funds these policies through an annual 
budget which enables it to complement and add 
value to action taken by national governments. The 
EU budget is small by comparison with the collective 
wealth of its member states: it represents no more 
than 1.23 % of their combined gross national income. 

 
 
 
 
I. InnoV atIon PolIcIeS

The  European  Union’s  activities  impact  on  the  day-to-day  life  of  its  citizens  by 
addressing  the  real  challenges  facing  society:  environmental  protection,  health, 
technological innovation, energy, etc. 

(a) the environment and sustainable development
The EU aims to help prevent climate change by seriously reducing its greenhouse 
gas emissions. In December 2008, the European Council agreed that, by 2020, the 
European  Union  would  cut  its  emissions  by  at  least  20 %  (compared  with  1990 
levels), raise renewable energy’s share of the market to 20 % and cut overall energy 
consumption  by  20 %.  It  was  also  agreed  that  10 %  of  fuel  for  transport  should 
come from biofuels, electricity or hydrogen.

At the Copenhagen summit on 19 December 2009, the EU tried to persuade other 
major  powers  to  adopt  the  same  goals  –  but  it  was  only  partially  successful.  All 
parties  accepted  the  need  to  limit  global  warming  to  an  average  increase  of 
2  °C  above  pre-industrial  levels,  but  as  yet  there  is  no  guarantee  of  a  collective 
commitment to achieving this goal. Nevertheless, the European Union did secure 
a deal whereby developed countries will provide € 20 billion to finance developing 
countries’ action on climate change.

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The EU is at the forefront of the fight to prevent climate change  
and encourage sustainable development.

 The EU is also tackling a wide range of other environmental issues including noise, 
waste,  the  protection  of  natural  habitats,  exhaust  gases,  chemicals,  industrial 
accidents  and  the  cleanliness  of  bathing  water.  It  is  also  planning  a  collective 
approach to preventing natural or man-made disasters such as oil spills or forest 
fires.

29

 
 
The  European  Union  is  constantly  improving  its  legislation  to  provide  better 
protection  for  public  health.  For  example,  EU  legislation  on  chemicals  has  been 
reworked, replacing earlier piecemeal rules with a single system known as REACH – 
which stands for the Registration, Evaluation and Authorisation of Chemicals. This 
system uses a central database, managed (since 2008) by the European Chemicals 
Agency, located in Helsinki. The aim is to prevent contamination of the air, water, 
soil and buildings, to preserve biodiversity and to improve the health and safety of 
EU citizens while at the same time keeping European industry competitive.

(b) technological innovation
The  founders  of  the  European  Union  rightly  saw  that  Europe’s  future  prosperity 
would depend on its ability to remain a world leader in technology. They saw the 
advantages to be gained from joint European research. So, in 1958, alongside the 
EEC, they established Euratom – the European Atomic Energy Community. Its aim 
was  for  EU  countries  together  to  exploit  nuclear  energy  for  peaceful  purposes, 
with the help of a Joint Research Centre (JRC). This consists of seven institutes at 
five  locations:  Ispra  (Italy),  Karlsruhe  (Germany),  Petten  (the  Netherlands),  Geel 
(Belgium) and Seville (Spain).

However, to keep pace with increasing global competition, European research had to 
diversify – and to break down the barriers between national research programmes, 
bringing together as wide a variety of scientists as possible and helping them find 
industrial applications for their discoveries.

Joint research at EU level is designed to complement national research programmes. 
It  focuses  on  projects  that  bring  together  a  number  of  laboratories  in  several 
EU  countries.  It  also  supports  fundamental  research  in  fields  such  as  controlled 
thermonuclear fusion – a potentially inexhaustible source of energy for the 21st 
century.  Moreover,  it  encourages  research  and  technological  development  in  key 
industries  such  as  electronics  and  computers,  which  face  stiff  competition  from 
outside Europe.

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The EU encourages innovation and research such as ‘Galileo’,  
Europe’s own global navigation satellite system.

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The EU’s goal is to spend 3 % of its GDP on research. The main vehicle for funding 
EU  research  is  a  series  of  ‘framework’  programmes.  The  seventh  research  and 
technological  development  framework  programme  covers  the  period  2007-13. 
Most of the € 50-billion-plus budget is being spent on research in areas like health, 
food and agriculture, information and communication technologies, nanosciences, 
energy, the environment, transport, security and space and socioeconomic sciences. 
Other  programmes  promote  international  cooperation  on  leading-edge  research 
projects and provide support for researchers and their career development.

(c) energy
Fossil fuels – oil, natural gas and coal – provide 80 % of the energy consumed in the 
EU. A large and growing proportion of these fossil fuels is imported from outside the 
EU. At present, 50 % of gas and oil is imported, and this dependence could grow to 
70 % by 2030. The EU will thus be more vulnerable to cuts in supply or price hikes 
caused by international crises. Another reason to reduce its consumption of fossil 
fuels is to reverse the process of global warming.

Various  steps  will  have  to  be  taken  in  future,  such  as  saving  energy  by  using  it 
more intelligently, developing alternative energy sources (particularly renewable 
energy sources in Europe), and increasing international cooperation. Energy R & D 
in Europe focuses on solar, wind, biomass and nuclear power. There are also pilot 
projects to develop CO2 capture and storage and to make hydrogen fuel cell vehicles 
commercially viable. The EU has also invested € 1.6 billion in the ‘clean sky’ project 
for developing less polluting aircraft.

II. SolIdarIt y PolIcIeS

To make sure the single market (see Chapter 6) works properly, imbalances in that 
market  need  to  be  corrected. That  is  the  purpose  of  the  EU’s ‘solidarity  policies’, 
designed to help underdeveloped regions and troubled sectors of the economy. The 
EU must also play its part in helping restructure industries which have been hard hit 
by fast-growing international competition.

(a) regional aid
Under the EU’s regional policy, European Union funds are used to boost development 
in regions lagging behind, to rejuvenate industrial areas in decline, to help young 
people  and  the  long-term  unemployed  find  work,  to  modernise  farming  and  to 
help less-favoured rural areas.

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The funds earmarked for regional aid in 2007-13 are targeted at three objectives.

   convergence:  the  aim  here  is  to  help  the  least-developed  countries  and 
regions catch up more quickly with the EU average by improving conditions 
for growth and employment. This is done by investing in physical and human 
capital, innovation, the knowledge society, adaptability, the environment and 
administrative efficiency.

   regional competitiveness and employment: the objective is to increase 
the competitiveness, employment levels and attractiveness of regions other 
than the least-developed ones. The way to make this happen is to anticipate 
economic  and  social  changes  and  to  promote  innovation,  entrepreneurship, 
environmental protection, accessibility, adaptability and the development of 
inclusive job markets.

   european territorial cooperation: the objective here is to increase cross-
border,  transnational  and  interregional  cooperation,  helping  neighbouring 
authorities find joint solutions to shared problems  in sectors such as urban, 
rural and coastal development. For example, countries and regional authorities 
along  the  Danube  river  and  on  the  Baltic  sea  share  common  strategies  for 
sustainable development in those regions.

These objectives are financed by specific EU funds, known as the ‘Structural Funds’, 
which  top  up  or  stimulate  investment  by  the  private  sector  and  by  national  and 
regional governments.

   the  european  regional  development  Fund  (ERDF)  is  used  to  finance 
regional development projects and to boost the economy in regions that are 
lagging behind. This includes the redevelopment of declining industrial areas.

   the european Social Fund (ESF) is used to finance vocational training and 

to help people find work.

In  addition  to  the  Structural  Funds,  there  is  a  Cohesion  Fund,  which  is  used  to 
finance transport infrastructure and environmental projects in EU countries whose 
GDP per capita is lower than 90 % of the EU average.

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(b) the common agricultural policy (caP) and common fisheries policy (cFP)
The  aims  of  the  CAP,  as  set  out  in  the  original Treaty  of  Rome  from  1957,  were 
to  ensure  a  fair  standard  of  living  for  farmers,  to  stabilise  markets,  to  ensure 
that  supplies  reach  consumers  at  reasonable  prices  and  to  modernise  farming 
infrastructure. These goals have largely been achieved. Moreover, consumers today 
enjoy  security  of  supply  and  the  prices  of  agricultural  products  are  kept  stable, 
protected  from  fluctuations  on  the  world  market.  The  policy  is  financed  by  the 
European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund 
for Rural Development (EAFRD).

However, the CAP became a victim of its own success. Production grew far faster 
than consumption, placing a heavy burden on the EU budget. In order to resolve 
this problem, agricultural policy had to be redefined. This reform is beginning to 
show results: production has been curbed.

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Agriculture must provide safe food of good quality.    

The new role of the farming community is to ensure a certain amount of economic 
activity  in  every  rural  area  and  to  protect  the  diversity  of  Europe’s  countryside. 
This diversity and the recognition of a ‘rural way of life’ – people living in harmony 
with the land – are an important part of Europe’s identity. Furthermore, European 
agriculture has an important role to play in combating climate change, protecting 
wildlife and feeding the world.

The  European  Commission  represents  the  EU  in  international  negotiations  at  the 
World  Trade  Organisation  (WTO).  The  EU  wants  the  WTO  to  put  more  emphasis 
on food quality, the precautionary principle (‘better safe than sorry’) and animal 
welfare.

33

 
 
From 2013 onwards, the European Commission wants the CAP to give priority to 
making  European  agriculture  sustainable,  giving  farmers  sufficient  protection 
from  volatile  markets,  preserving  biodiversity  and  protecting  local  and  regional 
speciality products.

The European Union has also begun reforming its fisheries policy. The main aim here 
is to preserve stocks of fish (such as the endangered bluefin tuna) and to reduce the 
overcapacity of fishing fleets while providing financial assistance for people who 
leave the fishing industry.

(c) the social dimension
The  aim  of  the  EU’s  social  policy  is  to  correct  the  most  glaring  inequalities  in 
European  society.  The  European  Social  Fund  (ESF)  was  established  in  1961  to 
promote  job  creation  and  help  workers  move  from  one  type  of  work  and/or  one 
geographical area to another.

Financial aid is not the only way in which the EU seeks to improve social conditions in 
Europe. Aid alone could never solve all the problems caused by economic recession 
or by regional underdevelopment. The dynamic effects of growth must, above all, 
encourage social progress. This goes hand in hand with legislation that guarantees 
a solid set of minimum rights. Some of these rights are enshrined in the Treaties, 
e.g. the right of women and men to equal pay for equal work. Others are set out 
in directives concerning the protection of workers (health and safety at work) and 
essential safety standards.

The Charter of Basic Social Rights, which became an integral part of the Treaty in 
1997, sets out the rights that all workers in the EU should enjoy: free movement; fair 
pay; improved working conditions; social protection; the right to form associations 
and  to  undertake  collective  bargaining;  the  right  to  vocational  training;  equal 
treatment of women and men; worker information, consultation and participation; 
health protection and safety at the workplace; protection for children, the elderly 
and the disabled.

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III. PayIng For euroPe: the eu  Budget

To  fund  its  policies,  the  European  Union  has  an  annual  budget  which,  in  2010, 
amounted to more than € 140 billion. This budget is financed by what are called the 
EU’s ‘own resources’, which cannot exceed 1.23 % of the total gross national income 
of all the member states.

These resources are mainly drawn from:

  customs duties on products imported into the EU, including farm levies;

   a  percentage  of  the  value  added  tax  (VAT)  levied  on  goods  and  services 

throughout the EU;

  contributions from the member states, reflecting the wealth of each country.

Each  annual  budget  is  part  of  a  seven-year  budget  cycle  known  as  the ‘financial 
perspective’. The financial perspectives are drawn up by the European Commission 
and  require  unanimous  approval  from  the  member  states  and  negotiation  and 
agreement  with  the  European  Parliament. The  next  financial  perspective  will  be 
for 2013-20.

The breakdown in spending can be illustrated by the 2010 budget:

   competitiveness and cohesion: € 64 billion, including the Structural Funds, the 
Cohesion  Fund,  the  research  programmes  and  the  trans-European  transport 
and energy networks;

   managing  natural  resources:  € 60  billion,  mainly  for  farming  and  rural 

development;

  ‘citizenship, freedom, security and justice’ (see Chapter 10): € 1.6 billion;

  the EU as a global partner (aid, trade, etc.): € 8 billion;

  administrative expenses: € 8 billion.

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who doeS  what? how reSPonSIBIlItIeS
Shared Bet ween the eu  and It S memBer StateS

 are 

the european union 
alone is responsible 
for:

customs union

rules governing competition within the single 

market

monetary policy for countries using the euro

conservation of marine biological resources under 

the common fisheries policy

common commercial policy

concluding an international agreement when this is 

provided for in EU legislation

the european union 
and its member 
states share 
responsibility for:

the single market

aspects of social policy as defined in the Lisbon 

Treaty

economic and social cohesion

agriculture and fisheries, except for the conservation 

of marine biological resources

the environment

consumer protection

transport

trans-European networks

energy

creating an area of freedom, security and justice

aspects of common security challenges relating to 
public health, as defined in the Treaty of Lisbon

research, technological development and space

development cooperation and humanitarian aid

Fields for which 
the member states 
remain responsible 
and in which the 
eu may play a 
supporting or 
coordinating role

protection and improvement of human health

industry

culture

tourism

education, vocational training, youth and sport

civil protection

administrative cooperation

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   The single market is one of the European Union’s 
greatest achievements. Restrictions on trade and 
free competition between member countries have 
gradually been eliminated, thus helping standards of 
living to rise.

   The single market has not yet become a single 

economy: some sectors (in particular services of 
general interest) are still subject to national laws. 
Freedom to provide services is beneficial, as it 
stimulates economic activity.

   The financial crisis in 2008-09 has led the EU to tighten 

up its financial legislation.

   Over the years the EU has introduced a number of 

policies (on transport, competition, etc.) to help ensure 
that as many businesses and consumers as possible 
benefit from opening up the single market. 

 
 
I. a chIe VIng the 1993 oBJec tIVe

(a) the limits of the common market
The  1957  Treaty  establishing  the  European  Economic  Community  (EEC)  made  it 
possible to abolish customs barriers between the member countries and to apply 
a  common  customs  tariff  to  goods  from  non-EEC  countries.  This  objective  was 
achieved on 1 July 1968.

However,  customs  duties  are  only  one  aspect  of  protectionism.  In  the  1970s, 
other trade barriers hampered the complete achievement of the common market. 
Technical  norms,  health  and  safety  standards,  exchange  controls  and  national 
regulations  on  the  right  to  practise  certain  professions  all  restricted  the  free 
movement of people, goods and capital.

(b) the 1993 objective
In  June  1985,  the  Commission,  under  its  President  Jacques  Delors,  published  a 
White Paper setting out plans to abolish, within seven years, all physical, technical 
and tax-related barriers to free movement within the EEC. The aim was to stimulate 
the  growth  of  trade  and  industrial  activity  within  the ‘single  market’  –  a  large, 
unified economic area on a par with the United States.

Negotiations between the member state governments led to a new treaty – the 
Single European Act, which came into force in July 1987. Its provisions included:

   extending the powers of the EEC in some policy areas (such as social policy, 

research and the environment);

  establishing the single market by the end of 1992;

   making more frequent use of majority voting in the Council of Ministers, to 

make it easier to take decisions about the single market.

II. ProgreSS  on BuIldIng the SIngle market

(a) Physical barriers
All  border  controls  within  the  EU  on  goods  have  been  abolished,  together  with 
customs  controls  on  people,  but  the  police  still  carry  out  random  spot  checks  as 
part of the fight against crime and drugs.

In June 1985, five of the 10 member states signed the Schengen Agreement under 
which  their  national  police  forces  undertook  to  work  together,  and  a  common 
asylum  and  visa  policy  was  set  up.  This  made  it  possible  to  completely  abolish 
checks on persons at the borders between the Schengen countries (see Chapter 10: 
‘A Europe of freedom, security and justice). Today, the Schengen area is made up of 
25 European countries, including three (Iceland, Norway and Switzerland) which 
are not members of the European Union.

39

(b) technical barriers
EU countries have agreed to recognise one another’s rules on the sale of most goods. 
Since the famous ‘Cassis de Dijon’ ruling by the European Court of Justice in 1979, 
any product legally manufactured and sold in one member state must be allowed 
to be placed on the market in all others.

Where  services  are  concerned,  EU  countries  mutually  recognise  or  coordinate 
their national rules allowing people to practise professions such as law, medicine, 
tourism, banking or insurance. However, freedom of movement for persons is far 
from  complete.  In  spite  of  the  2005  directive  on  the  recognition  of  professional 
qualifications, obstacles still hinder people from moving to another EU country or 
doing certain types of work there. Nevertheless, qualified people (whether lawyers 
or doctors, builders or plumbers) are increasingly free to practise their profession 
anywhere in the European Union. 

The  European  Commission  has  taken  action  to  improve  worker  mobility,  and 
particularly to ensure that educational diplomas and job qualifications obtained in 
one EU country are recognised in all the others.

(c) tax barriers
Tax barriers have been reduced by partially aligning national VAT rates, which must 
be agreed by the EU member states. Moreover, in July 2005, an agreement came 
into  force  between  the  EU  member  states  and  some  other  countries  (including 
Switzerland) on taxing investment income.

(d) Public contracts
Regardless  of  who  awards  them,  public  contracts  in  any  EU  country  are  now 
open to bidders from anywhere in the EU. This is thanks to EU directives covering 
services,  supplies  and  works  in  many  sectors,  including  water,  energy  and 
telecommunications.

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By opening up the telecommunications market to competition,  
the EU has brought about drastic cost reductions.

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The single market benefits all consumers. For example, opening up national markets 
for  services  has  brought  down  the  price  of  national  telephone  calls  to  a  fraction 
of what they were 10 years ago. Helped by new technology, the Internet is being 
increasingly  used  for  telephone  calls.  Competitive  pressure  has  also  significantly 
reduced air fares in Europe.

III. work In ProgreSS

(a) Financial services
In  2008,  in  the  wake  of  the ‘sub-prime’  mortgage  crisis  in  the  United  States,  a 
massive  financial  crisis  rocked  the  world’s  banking  systems  and  economies,  and 
plunged the European Union into recession in 2009. At the EU’s initiative, the G-20 
met in London on 2 April 2009. Its members committed themselves to reforming 
the financial system so as to make it more transparent and accountable. Europe-
wide  supervisory  authorities  will  be  given  responsibility  for  overseeing  hedge 
funds, providing greater protection for bank deposits, limiting traders’ profits and 
taking more effective steps to prevent and manage crises. 

(b) Piracy and counterfeiting
EU  products  need  protection  from  piracy  and  counterfeiting.  The  European 
Commission estimates that these crimes cost the EU thousands of jobs each year. 
This is why the Commission and national governments are working on extending 
copyright and patent protection.

IV.  PolIcIeS  underPInnIng the SIngle market

(a) transport
The EU’s activities have focused mainly on ensuring the freedom to provide services 
in land transport. In particular, this means giving transport companies free access 
to  the  international  transport  market  and  allowing  transport  firms  from  any  EU 
country to operate in all other EU countries. The EU is also working to ensure fair 
competition in road transport, by (for example) harmonising the rules on worker 
qualifications and market access, the freedom to establish a business and provide 
services, driving times and road safety.

Air transport in Europe used to be dominated by national flag carriers and state-
owned airports. The single market has changed all that. All EU airlines may now 
operate  air  services  on  any  route  within  the  EU  and  set  fares  at  any  level  they 
choose.  Consequently,  many  new  routes  have  been  opened  up  and  prices  have 
fallen dramatically. Passengers, airlines, airports and employees have all benefited.

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New EU rules on economic and financial governance have helped to clean up  
and strengthen the banking sector.

Similarly, passengers are benefiting from increasing competition between railway 
companies.  From  2010,  for  example,  stations  on  high-speed  lines  in  France  and 
Italy are served by both French and Italian trains.

Shipping – whether carried out by European companies or by vessels flying the flag 
of non-EU countries – is subject to EU competition rules. These rules are intended 
to combat unfair pricing practices (flags of  convenience) and also to address the 
serious difficulties facing the shipbuilding industry in Europe.

Since  the  beginning  of  the  21st  century,  the  European  Union  has  been  funding 
ambitious new technology projects such as the Galileo satellite navigation system, 
the  European  rail  traffic  management  system  and  SESAR  –  a  programme  for 
modernising air navigation systems. Road traffic safety rules (on things like vehicle 
maintenance, the transport of dangerous goods and the safety of roads) have been 
made  much  tougher.  Passengers’  rights  are  also  better  protected  thanks  to  the 
Charter of Air Passengers’ Rights and recent European legislation on rail passengers’ 
rights. A list of unsafe airlines banned within the EU was first published in 2005.

42

 
 
(b) competition
The  EU’s  competition  policy  is  essential  for  ensuring  that,  within  the  European 
single market, competition is not only free but also fair. The European Commission 
implements this policy and, together with the  Court of Justice, ensures that it is 
respected.

The  purpose  of  this  policy  is  to  prevent  any  business  cartel,  any  aid  from  public 
authorities  or  any  unfair  monopoly  from  distorting  free  competition  within  the 
single market.

Any  agreement  falling  under  the  Treaty  rules  must  be  notified  to  the  European 
Commission by the companies or bodies concerned. The Commission may impose 
a fine directly on any company which breaks the competition rules or fail to make 
the required notification – as in the case of Microsoft, which was fined € 900 million 
in 2008.

If an EU member state illegally grants aid, or fails to notify aid, the Commission may 
demand that it be repaid. The Commission must also be notified of any merger or 
takeover that could lead to a company having a dominant position in a particular 
market.

(c) Protecting consumers and public health
EU legislation in this field aims to give all consumers the same degree of financial 
and health protection, regardless of where in the European Union they live, travel 
or do their shopping. The need for EU-wide protection came into sharp focus in the 
late 1990s with scares over food safety issues such as ‘mad cow disease’ (BSE). To 
provide a sound scientific foundation for food safety legislation, the European Food 
Safety Authority (EFSA) was set up in 2002.

Europe-wide consumer protection is needed in many other fields too, which is why 
there are numerous EU directives on the safety of cosmetics, toys, fireworks, etc. 
In 1993 the European Medicines Agency (EMEA) was set up to handle applications 
for European marketing authorisations for medicinal products. No medicine can be 
marketed in the EU without such an authorisation.

The  European  Union  also  takes  action  to  protect  consumers  from  false  and 
misleading advertising, defective products and abuses in areas such as consumer 
credit and mail-order or Internet selling.

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   The euro is the single currency shared by 17 of the 
27 member states of the European Union. It came 
into use for non-cash transactions in 1999 and for all 
payments in 2002, when euro notes and coins were 
issued.

   Each of the new EU member states is expected to 

adopt the euro once it meets the necessary criteria. 
In the long run, virtually all EU countries should join 
the euro area.

   The euro gives consumers in Europe considerable 
advantages. Travellers are spared the cost and 
inconvenience of changing currencies. Shoppers can 
directly compare prices in different countries. Prices 
are stable thanks to the European Central Bank, whose 
job it is to maintain this stability. Moreover, the euro 
has become a major reserve currency, alongside the 
US dollar. During the 2008 financial crisis, having 
a common currency protected euro-area countries 
from competitive devaluation and from attack by 
speculators.

   The structural weakness of some member states’ 
economies does expose the euro to speculative 
attacks. To counter this risk, the EU institutions and the 
27 member states decided, on 9 May 2010, to set up a 
‘financial stabilisation mechanism’ worth € 750 billion. 
The key issue for the future is how to achieve closer 
coordination and greater economic solidarity between 
the member states, which need to ensure good 
governance of their public finances and to reduce their 
budget deficits. 

 
I. how the euro waS  created

(a) the european monetary system
In  1971,  the  United  States  decided  to  abolish  the  fixed  link  between  the  dollar 
and  the  official  price  of  gold,  which  had  ensured  global  monetary  stability  after 
the  Second  World  War.  This  put  an  end  to  the  system  of  fixed  exchange  rates. 
The  governors  of  the  EEC  countries’  central  banks  decided  to  limit  exchange  rate 
fluctuations  between  their  currencies  to  no  more  than  2.25 %,  thus  creating  the 
‘European monetary system’ (EMS), which came into operation in March 1979.

(b) From emS to emu
At  the  European  Council  in  Madrid  in  June  1989,  EU  leaders  adopted  a  three-
stage plan for economic and monetary union (EMU). This plan became part of the 
Maastricht Treaty on European Union adopted by the European Council in December 
1991.

II. economIc and monetary unIon

(a) the three stages
The first stage, which began on 1 July 1990, involved:

   completely  free  movement  of  capital  within  the  EU  (abolition  of  exchange 

controls);

   increasing the Structural Funds so as to step up efforts to remove inequalities 

between European regions;

   economic  convergence,  through  the  multilateral  surveillance  of  member 

states’ economic policies.

The second stage began on 1 January 1994. It involved:

   setting up the European Monetary Institute (EMI) in Frankfurt; the EMI was 

made up of the governors of the central banks of the EU countries;

   making  (or  keeping)  national  central  banks  independent  of  government 

control;

  introducing rules to curb national budget deficits.

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The  third  stage  was  the  birth  process  of  the  euro.  From  1  January  1999  to  1 
January 2002, the euro was phased in as the common currency of EU countries that 
participated  (Austria,  Belgium,  Finland,  France,  Germany,  Greece,  Ireland,  Italy, 
Luxembourg,  the  Netherlands,  Portugal  and  Spain).  The  European  Central  Bank 
(ECB) took over from the EMI and became responsible for monetary policy, which 
was now defined and implemented in the new currency.

Three countries (Denmark, Sweden and the United Kingdom) decided, for political 
and technical reasons, not to adopt the euro when it was launched. Slovenia joined 
the euro area in 2007, followed by Cyprus and Malta in 2008 Slovakia in 2009 and 
Estonia in 2011.

The euro area thus embraces 17 EU countries, and each of the new member states 
will join once it has met the necessary conditions.

(b) the convergence criteria
In  order  to  join  the  euro  area,  each  EU  country  must  meet  the  following  five 
convergence criteria.

   Price stability: the rate of inflation may not exceed by more than 1.5 % the 
average rates of inflation of the three member states with the lowest inflation.

   Interest rates: long-term interest rates may not vary by more than 2 % in 
relation  to  the  average  interest  rates  of  the  three  member  states  with  the 
lowest interest rates.

  deficits: national budget deficits must be below 3 % of GDP.

  Public debt: this may not exceed 60 % of GDP.

   exchange  rate  stability:  exchange  rates  must  have  remained  within  the 

authorised margin of fluctuation for the previous two years.

(c) the Stability and growth Pact
In  June  1997,  the  Amsterdam  European  Council  adopted  a  Stability  and  Growth 
Pact.  This  was  a  permanent  commitment  to  budgetary  stability,  and  made  it 
possible for penalties to be imposed on any country in the euro area whose budget 
deficit exceeded 3 % of GDP. The Pact was subsequently judged to be too strict and 
was reformed in March 2005.

(d) the eurogroup
The  Eurogroup  consists  of  the  finance  ministers  from  the  euro-area  countries. 
They  meet  to  coordinate  their  economic  policies  and  to  monitor  their  countries’ 
budgetary and financial policies. The Eurogroup also represents the euro’s interests 
in international forums.

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Tallin, the capital of Estonia, where the euro replaced the ‘kroon’ in January 2011.

The Treaty of Lisbon gave the Eurogroup formal status. In January 2010 the Prime 
Minister  of  Luxembourg,  Jean-Claude  Juncker,  was  re-elected  President  of  the 
Eurogroup for a period of two and a half years. 

(e) macroeconomic convergence since 2007: the effects of the financial crisis
The 2008 financial crisis considerably increased public debt in most EU countries. 
Nevertheless,  the  euro  shielded  the  most  vulnerable  economies  from  the  risk  of 
devaluation as they endured the crisis and faced attacks by speculators.

Some heavily indebted countries with worsening budget deficits were particularly 
targeted  by  attacks  during  the  winter  of  2009-10.  That  is  why,  acting  on  a 
European  Commission  proposal,  the  EU  member  states  decided  in  May  2010,  to 
set up a ‘financial stabilisation mechanism’ for the euro area. This will provide up 
to € 750 billion in funds from the member states and the IMF. At the same time, 
the EU’s member states and institutions brought into play provisions of the Treaty 
of Lisbon designed to strengthen the EU’s economic governance: prior discussion 
of national budget plans; monitoring national economies and tightening the rules 
on competitiveness; reviewing the sanctions to be applied if countries breach the 
financial rules.

Thus, in response to global financial and economic change, the European Union is 
having to take tougher action to ensure that member states manage their budgets 
responsibly and support one another financially. This is the only way to ensure that 
the  euro  remains  credible  as  a  single  currency  and  that  the  member  states  can, 
together, face the economic challenges of globalisation. Both the Commission and 
European Parliament stress the importance of coordinating national economic and 
social policies, since – in the long run – Europe’s common currency is not viable 
without some form of common economic governance.

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The Europe 2020 strategy aims to:

   respond to globalisation and the economic crisis by 
making the European economy competitive again 
(telecommunications, services, energy, new green 
technologies for sustainable development);

  ensure:

•	 smart growth: fostering knowledge, innovation, 

education and digital society;

•	 sustainable growth: promoting a more resource 

efficient, greener and more competitive economy;

•	 inclusive growth: fostering a high-employment 

economy delivering social and territorial cohesion.

 
 
 
 
At the beginning of the 1990s, two great changes began transforming economies 
and  daily  life  throughout  the  world,  including  Europe.  One  was  globalisation, 
as  economies  everywhere  became  increasingly  interdependent.  The  other  was 
the  technological  revolution,  including  the  Internet  and  new  information  and 
communication technologies. More recently, the world has been rocked by major 
crises  such  as  the  financial  crisis  of  2007-09  which  caused  a  severe  economic 
downturn and increased unemployment in Europe.

I. the lISBon ProceSS

(a) objectives
As  long  ago  as  the  Lisbon  European  Council  in  March  2000,  EU  leaders  decided 
that the European economy needed thorough modernisation in order to compete 
with the United States and emerging world players such as Brazil, China and India. 
The European social model is based on efficiency and solidarity in fields including 
healthcare  and  pensions.  In  order  to  preserve  that  model  it  would  have  to  be 
revitalised.  Europe’s  competitiveness  would  have  to  be  based  on  knowledge  and 
skills,  not  on  low  wages.  Some  industries  were  relocating  to  other  parts  of  the 
world: to take their place, Europe needed to create jobs in high-value sectors such as 
the e-economy (using high-capacity broadband networks) and new energy-saving 
technologies. In short, Europe needed a greener and more high-tech economy.

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To keep up with global competition, the EU encourages practical use of new technology.

(b) the strategy
The European Council agreed on a detailed strategy for achieving this. The ‘Lisbon 
strategy’  involved  action  in  a  whole  range  of  areas,  such  as  scientific  research, 
education,  vocational  training,  Internet  access  and  online  business.  It  included 
reforming Europe’s social security systems. These systems are one of Europe’s great 
assets,  as  they  enable  our  societies  to  embrace  necessary  structural  and  social 
changes without excessive pain. However, they must be modernised so as to make 
them sustainable and so that their benefits can be enjoyed by future generations.

Every spring, the European Council meets to review progress in implementing the 
Lisbon strategy.

II. cloSer FocuS  on grow th and JoBS

The European Council in spring 2010 acknowledged that, 10 years on, the Lisbon 
process had fallen short of its goals. There was still high unemployment in many 
EU countries and the EU needed to focus on achieving growth and creating jobs. 
To make its economies more productive and increase social cohesion, Europe must 
invest more in research and innovation, education and training. So, on the initiative 
of  José  Manuel  Barroso  (President  of  the  European  Commission),  the  European 
Council adopted a new strategy for the next 10 years: the Europe 2020 strategy.

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One of the objectives of ‘Europe 2020’ is bringing higher education  
and the business world closer together.

As part of this strategy, the 27 EU member states will:

   give the European Commission a greater role in driving the process forward, 
in  particular  by  disseminating ‘best  practice’  in  Europe  (thus  going  beyond 
the  merely  inter-governmental  approach  known  as  the  ‘open  method  of 
coordination’);

   move faster to reform their financial markets and social security systems and 
to open up their telecommunications and energy sectors to competition;

   improve  their  education  systems,  do  more  to  help  young  people  find  jobs, 
forge  stronger  links  between  universities  and  businesses  and  continue  the 
Erasmus, Leonardo and Erasmus Mundus programmes;

   take  swifter  action  (e.g.  by  harmonising  their  tax  and  social  security 
arrangements)  to  create  a  European ‘single  market’  for  research  –  enabling 
scientists, knowledge and technology to move freely around Europe;

   increase  spending  on  research  and  innovation  to  3 %  of  GDP  (a  goal  also 

adopted by the United States).

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  Citizens of European Union countries can travel, live and work anywhere in the EU.  The EU encourages and funds programmes, particularly in the fields of education and culture, to bring EU citizens closer together.  A sense of belonging to the European Union will develop only gradually, as the EU achieves tangible results and explains more clearly what it is doing for people.  People recognise symbols of shared European identity such as the single currency and the European flag and anthem.  A ‘European public sphere’ is beginning to emerge, with Europe-wide political parties. Citizens vote every five years for a new European Parliament, which then votes on the new European Commission. 
 
 
 
 
 
 
 
Citizenship  of  the  European  Union  is  enshrined  in  the  EU  Treaty:  ‘Every  person 
holding the nationality of a member state shall be a citizen of the Union. Citizenship 
of  the  Union  shall  be  additional  to  and  not  replace  national  citizenship’  (Article 
20(1) of the Treaty on the Functioning of the European Union). But what does EU 
citizenship mean in practice?

I.  tra VellIng, lIVIng and workIng 

In  euroPe

If you are an EU citizen you have the right to travel, work and live anywhere in the 
European Union.

If  you  have  completed  a  university  course  lasting  three  years  or  more,  your 
qualification will be recognised in all EU countries, since EU member states have 
confidence in the quality of one another’s education and training systems.

You  can  work  in  the  health,  education  and  other  public  services  (except  for  the 
police,  armed  forces,  etc.)  of  any  country  in  the  European  Union.  Indeed,  what 
could be more natural than recruiting a British teacher to teach English in Rome, or 
encouraging a young Belgian graduate to compete in a civil service exam in France?

Before  travelling  within  the  EU  you  can  obtain  from  your  national  authorities  a 
European health insurance card, to help cover your medical costs if you fall ill while 
in another country.

Europeans are free to live and work in any EU country that they choose.

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II.  how you c an exercISe your rIght S   

aS  a euroPean cItIzen

As a citizen of the European Union you are not just a worker or a consumer: you also 
have specific political rights. Since the Maastricht Treaty came into force, regardless 
of your nationality, you have had the right to vote and to stand as a candidate in local 
elections in your country of residence and in elections to the European Parliament.

As of December 2009 (when the Treaty of Lisbon came into force), you also have the 
right to petition the Commission to put forward a legislative proposal – provided 
you can find a million people from a significant number of EU countries to sign your 
petition. 

III. Fundamental rIght S

The  European  Union’s  commitment  to  citizens’  rights  was  made  clear  at  Nice  in 
December 2000 when the European Council solemnly proclaimed the charter of 
Fundamental rights of the european union. This Charter had been drawn up by 
a Convention composed of members of national parliaments, MEPs, representatives 
of  national  governments  and  a  member  of  the  European  Commission.  Under  six 
headings – Dignity, Freedoms, Equality, Solidarity, Citizens’ rights and Justice – its 
54 articles set out the European Union’s fundamental values and the civil, political, 
economic and social rights of EU citizens.

The opening articles cover human dignity, the right to life, the right to the ‘integrity of 
the person’ and the right to freedom of expression and of conscience. The chapter on 
solidarity brings together, in an innovative way, social and economic rights such as:

  the right to strike;

  the right of workers to be informed and consulted;

  the right to reconcile family life and professional life;

   the  right  to  healthcare,  social  security  and  social  assistance  throughout  the 

European Union.

The Charter also promotes equality between men and women and introduces rights 
such as data protection, a ban on eugenic practices and the reproductive cloning 
of human beings, the right to environmental protection, the rights of children and 
elderly people and the right to good administration.

The Treaty of Lisbon, which came into force on 1 December 2009, gives the Charter 
the  same  legal  force  as  the Treaties  –  so  it  can  be  used  as  the  basis  for  taking  a 
case to the EU Court of Justice. (However, a protocol specifies the application of the 
Charter in Poland and the United Kingdom, and this will later also apply to the Czech 
Republic).

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Moreover, Article 6 of the Treaty of Lisbon provides a legal basis for the EU to sign 
up to the European Convention on Human Rights. This Convention would then no 
longer  be  merely  referred  to  in  the  EU Treaties  but  would  have  legal  force  in  EU 
countries, thus giving greater protection to human rights in the European Union.

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One of the basic rights laid down in the Charter of Fundamental Rights  
of the European Union is that of balancing family life with a career.

IV. euroPe meanS  educ atIon and culture

A  sense  of  belonging  together  and  having  a  common  destiny  cannot  be 
manufactured.  It  can  only  arise  from  a  shared  cultural  awareness,  which  is  why 
Europe needs to focus not just on economics but also on education, citizenship and 
culture.

The EU does not say how schools and education are to be organised or what the 
curriculum is: these things are decided at national or local level. But the EU does 
run programmes to promote educational exchanges so that young people can go 
abroad to train or study, learn new languages and take part in joint activities with 
schools or colleges in other countries. These programmes include Comenius (school 
education),  Erasmus  (higher  education),  Leonardo  da Vinci  (vocational  training), 
Grundtvig  (adult  education)  and  Jean  Monnet  (university-level  teaching  and 
research in European integration).

European countries are working together – via the ‘Bologna process’ – to create a 
European higher education area. This means, for example, that university courses 
in  all  the  countries  concerned  will  lead  to  comparable  and  mutually  recognised 
degrees (Bachelor’s, Master’s and Doctorate).

In the field of culture, the EU’s ‘Culture’ and ‘Media’ programmes foster cooperation 
between  TV  programme  and  film-makers,  promoters,  broadcasters  and  cultural 
bodies from different countries. This encourages the production of more European 
TV programmes and films, thereby helping redress the balance between European 
and American output.

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One of Europe’s essential characteristics is its diversity of languages – and preserving 
that diversity is an important EU objective. Indeed, multilingualism is fundamental 
to  the  way  the  European  Union  works.  EU  legislation  has  to  be  available  in  all 
23 official languages, and every MEP has the right to use his or her own language 
in parliamentary debates. 

V.  the  omBudSman and your rIght to 

PetItIon ParlIament

To  help  bring  the  EU  closer  to  its  citizens,  the Treaty  on  European  Union  created 
the  post  of  Ombudsman.  The  European  Parliament  appoints  the  Ombudsman, 
who  remains  in  office  for  the  duration  of  the  Parliament. The  Ombudsman’s  role 
is to investigate complaints against EU institutions and bodies. Complaints may be 
brought by any EU citizen and by any person or organisation living or based in an 
EU country. The Ombudsman tries to arrange an amicable settlement between the 
complainant and the institution or body concerned.

Anyone living in an EU country can also petition the European Parliament. This is 
another important link between the EU institutions and the public.

VI. a  SenSe oF  BelongIng

The  idea  of  a ‘citizens’  Europe’  is  very  new.  Some  symbols  of  a  shared  European 
identity already exist, such as the European passport, in use since 1985. EU driving 
licences have been issued in all EU countries since 1996. The EU has a motto, ‘United 
in diversity’, and 9 May is celebrated as ‘Europe Day’.

The European anthem (Beethoven’s ‘Ode to Joy’) and the European flag (a circle of 
12 gold stars on a blue background) were explicitly mentioned in the 2004 draft 
Constitution  for  the  European  Union,  but  were  dropped  from  the  Lisbon  Treaty 
which replaced it. These are still EU symbols and member states, local authorities 
and individual citizens may use them if they wish.

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However, people cannot feel they ‘belong to’ the European Union unless they are 
aware of what the EU is doing and understand why. The EU institutions and member 
states need to do much more to explain EU affairs in clear and simple language.

People also need to see the EU making a tangible difference to their daily lives. In 
this respect, the use of euro notes and coins since 2002 has had a major impact. 
More than two thirds of EU citizens now manage their personal budget and savings 
in  euro.  Pricing  goods  and  services  in  euro  means  that  consumers  can  compare 
prices directly from one country to another.

Border checks have been abolished between most EU countries under the Schengen 
Agreement, and this already gives people a sense of belonging to a single, unified 
geographical area.

A  sense  of  belonging  comes,  above  all,  with  feeling  personally  involved  in  EU 
decision-making. Every adult EU citizen has the right to vote in European Parliament 
elections,  and  this  is  an  important  basis  for  the  EU’s  democratic  legitimacy. That 
legitimacy is being increased as more powers are given to the European Parliament, 
national parliaments have a greater say in EU business and Europe’s citizens become 
more actively involved in NGOs, in political movements and in setting up Europe-
wide political parties. If you want to help shape the European agenda and influence 
EU policies, there are many ways to do so. There are, for example, online discussion 
forums dedicated to European Union affairs where you can join in the debate, and 
you can post your views on Commissioners’ or MEPs’ blogs. You can also contact the 
Commission or Parliament directly, online or via one of their offices in your country 
(see the inside back cover for details).

The European Union was set up to serve the peoples of Europe, and its future must 
be  shaped  by  the  active  involvement  of  people  from  all  walks  of  life.  The  EU’s 
founding fathers were well aware of this. ‘We are not bringing together states, we 
are uniting people’, said Jean Monnet back in 1952. Raising public awareness about 
the EU and involving citizens in its activities is still one of the greatest challenges 
facing the EU institutions today. 

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  The opening of internal borders between EU member states is a very tangible benefit for ordinary people, allowing them to travel freely without being subject to border controls.  However, this freedom of internal movement must go hand in hand with increased controls at the EU’s external borders so as to effectively combat organised crime, terrorism, illegal immigration and the trafficking of people and drugs.  The EU countries cooperate in the area of policing and justice so as to make Europe safer and more secure. 
 
 
 
 
 
European  citizens  are  entitled  to  live  in  freedom,  without  fear  of  persecution  or 
violence, anywhere in the European Union. Yet international crime and terrorism 
are among the main concerns of Europeans today.

Clearly,  freedom  of  movement  must  mean  giving  everyone,  everywhere  in  the 
EU,  the  same  protection  and  the  same  access  to  justice.  So,  through  successive 
amendments to the Treaties, the European Union is gradually being made into a 
single ‘area of freedom, security and justice’.

The  scope  for  EU  action  in  these  fields  has  been  widened,  over  the  years,  as  the 
European Council adopted three successive framework programmes: the Tampere 
programme  (1999-2004),  the  Hague  programme  (2005-09)  and  the  Stockholm 
programme  (2010-14).  While  the  Tampere  and  Hague  programmes  aimed  at 
greater security, Stockholm focuses more on protecting citizens’ rights.

Decision-making  in  these  fields  has  become  more  effective  thanks  to  the  Lisbon 
Treaty,  which  came  into  force  in  December  2009.  Until  then,  the  member  states 
had reserved for themselves all responsibility for creating and managing the area 
of freedom, security and justice. The work was carried out essentially by the Council 
(i.e. through discussion and agreement between government ministers), leaving 
the  Commission  and  Parliament  to  play  only  a  small  role. The  Lisbon Treaty  has 
changed that: the Council now takes most of its decisions by a qualified majority 
vote and Parliament is an equal partner in the decision-making process.

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I.  moVIng Freely wIthIn the eu  and 
Protec tIng It S ex ternal BorderS

The free movement of people within the EU raises security issues for the member 
states, since they no longer control internal EU borders. To compensate for this, extra 
security measures have to be put in place at the EU’s external borders. Moreover, 
since criminals can also exploit freedom of movement within the EU, national police 
forces and judicial authorities have to work together to combat cross-border crime.

One of the most important moves to make life easier for travellers in the European 
Union took place in 1985, when the governments of Belgium, France, the Federal 
Republic of Germany, Luxembourg and the Netherlands signed an agreement in a 
small Luxembourg border town called Schengen. They agreed to abolish all checks 
on people, regardless of nationality, at their shared borders, to harmonise controls 
at their borders with non-EU countries and to introduce a common policy on visas. 
They thus formed an area without internal frontiers known as the Schengen area.

The Schengen arrangements have since become an integral part of the EU Treaties, 
and the Schengen area has gradually expanded. In 2010, the Schengen rules are 
fully implemented by all EU countries except Bulgaria, Cyprus, Ireland, Romania and 
the United Kingdom. Three non-EU countries – Iceland, Norway and Switzerland – 
are also in the Schengen area.

Tightening up checks at the EU’s external borders became a priority when the EU 
expanded in 2004 and 2007. An EU agency known as Frontex, based in Warsaw, is 
responsible for managing EU cooperation on external border security. The member 
states can lend it boats, helicopters and planes for carrying out joint patrols – for 
example in sensitive areas of the Mediterranean. The EU is also considering setting 
up a European border guard service. 

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As the EU’s population ages, legal immigrants with the right qualifications are helping  
to bridge the gaps in the labour market.

II. aSylum and ImmIgratIon PolIc y

Europe  is  proud  of  its  humanitarian  tradition  of  welcoming  foreigners  and 
offering  asylum  to  refugees  fleeing  danger  and  persecution. Today,  however,  EU 
governments  face  the  pressing  question  of  how  to  deal  with  rising  numbers  of 
immigrants, both legal and illegal, in an area without internal frontiers.

EU governments have agreed to harmonise their rules so that, by 2012, applications 
for asylum can be processed in accordance with a set of basic principles uniformly 
recognised throughout the European Union. Some technical measures have been 
adopted,  such  as  minimum  standards  for  admitting  asylum-seekers  and  for 
granting refugee status.

In recent years, large numbers of illegal immigrants have been arriving on Europe’s 
shores,  and  one  of  the  EU’s  top  priorities  is  to  deal  with  this  problem.  Member  
governments  are  working  together  to  tackle  people  smuggling  and  to  agree 
common arrangements for repatriating illegal immigrants. At the same time, legal 
immigration is being better coordinated under EU rules on family reunification, on 
the status of long-term residents and on admitting non-EU nationals who wish to 
come to Europe to study or to undertake research.

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Cooperation between European customs authorities is helping to reduce trafficking and crime.

III. FIghtIng InternatIonal crIme

A coordinated effort is needed to combat criminal gangs who run people-trafficking 
networks  and  who  exploit  vulnerable  human  beings,  particularly  women  and 
children.

Organised crime is becoming ever more sophisticated and regularly uses European 
or international networks for its activities. Terrorism has clearly shown that it can 
strike, with great brutality, anywhere in the world.

This is why the Schengen information system (SIS) was set up. This is a complex 
database  which  enables  police  forces  and  judicial  authorities  to  exchange 
information on people for whom an arrest warrant or extradition request has been 
issued, and on stolen property such as vehicles or works of art. A new generation 
database known as SIS II will have a greater capacity and make it possible to store 
new types of data.

One of the best ways of catching criminals is to track their ill-gotten gains. For this 
reason, and to cut off the funding of criminal and terrorist organisations, the EU has 
brought in legislation to prevent money-laundering.

The  greatest  advance  made  in  recent  years  in  the  field  of  cooperation  between 
law  enforcement  authorities  was  the  creation  of  Europol,  an  EU  body  based  in 
The Hague and staffed by police and customs  officers. It tackles a wide range of 
international  crime:  drug  trafficking,  trade  in  stolen  vehicles,  people  trafficking 
and illegal immigration networks, the sexual exploitation of women and children, 
child  pornography,  forgery,  the  trafficking  of  radioactive  and  nuclear  material, 
terrorism, money-laundering and counterfeiting the euro.

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IV. towardS  a ‘euroPean JudIcIal area’

At  present,  many  different  judicial  systems  operate  side  by  side  in  the  European 
Union, each within national borders. But international crime and terrorism have no 
respect for national boundaries. This is why the EU needs a common framework for 
fighting terrorism, drug trafficking and counterfeiting, so as to guarantee its citizens 
a high level of protection and to improve international cooperation in this area. The 
EU also needs a common criminal justice policy, to ensure that cooperation between 
the courts  in different countries is  not hampered  by their differing  definitions of 
certain criminal acts.

The  main  example  of  practical  cooperation  in  this  field  is  Eurojust,  a  central 
coordinating structure established in The Hague in 2003. Its purpose is to enable 
the national investigating and prosecuting authorities to work together on criminal 
investigations involving several EU countries. On the basis of Eurojust, a European 
Public Prosecutor’s Office may be set up – if the Council (or a group of at least nine 
member states) so decides. The role of the prosecutor would be to investigate and 
prosecute offences against the EU’s financial interests.

Another tool for practical cross-border cooperation is the European arrest warrant, 
operational  since  January  2004.  It  is  intended  to  replace  lengthy  extradition 
procedures.

In the area of civil law, the EU has adopted legislation to help apply court rulings 
in cross-border cases involving divorce, separation, child custody and maintenance 
claims.  The  aim  is  to  ensure  that  judgments  in  one  country  are  applicable  in 
another. The EU has established common procedures to simplify and speed up the 
settlement  of  cross-border  cases  in  small  and  uncontested  civil  claims  like  debt 
recovery and bankruptcy.

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   The European Union has more influence on the 

world stage when it speaks with a single voice in 
international affairs such as trade negotiations. To help 
achieve this, and to raise the EU’s international profile, 
in 2009 the European Council acquired a permanent 
President and the first High Representative of the 
Union for Foreign Affairs and Security Policy was 
appointed.

   In the area of defence, each country remains sovereign, 
whether a member of NATO or neutral. However, the EU 
member states are developing military cooperation for 
peacekeeping missions.

   The EU is a major player in international trade, and is 

working within the World Trade Organisation (WTO) to 
ensure open markets and a rules-based trading system.

   For historical and geographical reasons, the EU pays 

particularly close attention to Africa (via development 
aid policies, trade preferences, food aid and promoting 
respect for human rights). 

 
 
 
 
 
In economic, trade and monetary terms, the European Union has become a major 
world  power.  It  is  sometimes  said  that  the  EU  has  become  an  economic  giant 
but  remained  a  political  dwarf. This  is  an  exaggeration. The  European  Union  has 
considerable influence within international organisations such as the World Trade 
Organisation (WTO) and the specialised bodies of the United Nations (UN), and at 
world summits on the environment and development.

Nevertheless,  it  is  true  that  the  EU  and  its  members  have  a  long  way  to  go,  in 
diplomatic and political terms, before they can speak with one voice on major world 
issues. What  is  more,  military  defence  (the  cornerstone  of  national  sovereignty) 
remains in the hands of national governments, whose ties are those forged within 
alliances such as NATO.

I. the common ForeIgn and SecurIt y PolIc y

(a) Setting up a european diplomatic service
The  common  foreign  and  security  policy  (CFSP)  and  the  European  security  and 
defence  policy  (ESDP),  define  the  EU’s  main  foreign  policy  tasks.  These  policies 
were  introduced  by  the  Treaties  of  Maastricht  (1992),  Amsterdam  (1997)  and 
Nice (2001). They formed the EU’s ‘second pillar’ – a policy area in which action is 
decided  by  intergovernmental  agreement  and  in  which  the  Commission  and  the 
Parliament play only a minor role. Decisions in this area are taken by consensus, 
although  individual  states  can  abstain.  Although  the  Treaty  of  Lisbon  did  away 
with ‘pillars’ in the EU’s structure, it did not change the way in which security and 
defence matters are decided. However, it changed the policy’s name from ESDP to 
CSDP – the common security and defence policy. It also raised the profile of the 
CFSP by creating the post of High Representative of the Union for Foreign Affairs 
and Security Policy.

Since 1 December 2009, this post has been occupied by Catherine Ashton, from the 
United  Kingdom,  who  is  also  a Vice-President  of  the  European  Commission.  Her 
job is to represent the EU’s collective viewpoint and to act in the EU’s name within 
international organisations and at international conferences. She is assisted by the 
thousands of EU and national officials who make up the European External Action 
Service – in effect, the EU’s diplomatic service.

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The aim of EU foreign policy is, essentially, to ensure security, stability, democracy 
and  respect  for  human  rights  –  not  only  in  its  immediate  neighbourhood  (e.g. 
the  Balkans)  but  also  in  other  hot  spots  around  the  world,  such  as  in  Africa,  the 
Middle East and the Caucasus. Its main tool is ‘soft power’, which covers things like 
election  observation  missions,  humanitarian  aid  and  development  assistance.  In 
2009, the EU donated humanitarian aid worth € 900 million to 30 countries, mostly 
in  Africa. The  EU  provides  60 %  of  the  world’s  development  assistance  and  helps 
the world’s most needy countries to fight poverty, feed their people, avoid natural 
disasters, access drinking water and fight disease. At the same time, the EU actively 
encourages these countries to respect the rule of law and to open up their markets 
to international trade. The Commission and the European Parliament are careful to 
ensure that the aid is provided in an accountable manner and is properly managed 
and used. 

Is the EU able and willing to go further than this ‘soft power’ diplomacy? That is 
the main challenge for the years ahead. All too often, the European Council’s joint 
statements  and  common  positions  on  major  international  issues  (the  Middle 
East peace process, Iraq, terrorism, relations with Russia, Iran, Cuba, etc.) express 
nothing but the lowest common denominator. Meanwhile, the large member states 
continue to play their own individual diplomatic roles. Yet it is when the European 
Union speaks with one voice that it is seen as a global player. If its credibility and 
influence are to grow, the EU must combine its economic might and trading power 
with the steady implementation of its common security and defence policy. 

(b) tangible achievements of the common security and defence policy (cSdP)
Since 2003, the European Union has had the capacity to carry out crisis management 
operations,  as  the  member  states  voluntarily  make  some  of  their  own  forces 
available to the EU for performing such operations.

Responsibility for running the operations lies with a set of politico-military bodies: 
the Political and Security Committee (PSC), the EU Military Committee (EUMC), the 
Committee for Civilian Aspects of Crisis Management (Civcom) and the European 
Union Military Staff (EUMS). These bodies are answerable to the Council and are 
based in Brussels.

This  set  of  tools  is  what  gives  substance  to  the  common  security  and  defence 
policy. It enables the EU to carry out the tasks it has set itself – humanitarian and 
peacemaking  or  peacekeeping  missions.  These  missions  must  avoid  duplicating 
what NATO is doing, and this is guaranteed by the ‘Berlin plus’ arrangements agreed 
between NATO and the EU. They give the European Union access to NATO’s logistical 
resources (for detection, communication, command and transport).

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Since 2003, the European Union has launched 22 military operations and civilian 
missions. The first of these was in Bosnia and Herzegovina, where EU troops replaced 
NATO forces. These missions and operations, under the European flag, are being or 
have been deployed on three continents. They include the EUFOR mission in Chad 
and the Central African Republic, Eunavfor’s ‘Atalanta’ operation to combat Somali 
piracy in the Gulf of Aden, the EULEX mission to help Kosovo firmly establish the 
rule of law, and the EUPOL mission in Afghanistan to help train the Afghan police.

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The EU runs civil or military peacekeeping operations  
such as this anti-piracy force off the coast of Somalia.

As  military  technology  becomes  ever  more  sophisticated  and  expensive,  EU 
governments  are  finding  it  increasingly  necessary  to  work  together  on  arms 
manufacture – especially now that they are striving to reduce public spending to 
help them weather the financial crisis. Moreover, if their armed forces are to carry 
out joint missions outside Europe, their systems must be interoperable and their 
equipment sufficiently standardised. This is why the Thessaloniki European Council 
in June 2003 decided to set up a European Defence Agency (EDA) to help develop 
the EU’s military capabilities. It was formally established in 2004.

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II. a trade PolIc y that  IS oPen to the world

Its  importance  as  a  trading  power  gives  the  European  Union  considerable 
international  influence.  The  EU  supports  the  rules-based  system  of  the  World 
Trade Organisation (WTO), which has 153 member countries. This system provides 
a  degree  of  legal  certainty  and  transparency  in  the  conduct  of  international 
trade. The WTO sets conditions under which its members can defend themselves 
against unfair practices like dumping (selling below cost) through which exporters 
compete against their rivals. It also provides a procedure for settling disputes that 
arise between two or more trading partners.

Since  2001,  through  the ‘Doha  round’  of  trade  talks,  the  EU  has  been  seeking  to 
open up world trade. These are difficult negotiations but the EU remains convinced 
that, in the wake of the financial and economic crisis, a contraction in world trade 
would turn the recession into a full-blown depression. 

The EU’s trade policy is closely linked to its development policy. Under its ‘general 
system of preferences’ (GSP), the EU has granted duty-free or cut-rate preferential 
access  to  its  market  for  most  of  the  imports  from  developing  countries  and 
economies in transition. It goes even further for the world’s 49 poorest countries. 
All of their exports, with the sole exception of arms, enjoy duty-free entry to the 
EU market.

The EU does not, however, have specific trade agreements with its major trading 
partners  among  the  developed  countries  like  the  United  States  and  Japan.  Here, 
trade relations are handled through the WTO mechanisms. The United States and 
the  European  Union  are  seeking  to  develop  relations  founded  on  equality  and 
partnership. Following the election of Barack Obama as US President, EU leaders 
have been calling for closer trans-Atlantic ties. At the G-20 meeting in London in 
April 2009, the EU and US agreed on the need for better regulation of the global 
financial system.

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The EU promotes the opening of markets and the development of trade  
within the multilateral framework of the World Trade Organisation.

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The  European  Union  is  increasing  its  trade  with  the  emerging  powers  in  other 
parts  of  the  world,  from  China  and  India  to  Central  and  South  America.  Trade 
agreements with these countries also involve technical and cultural cooperation. 
China has become the EU’s second most important trading partner (after the United 
States) and its biggest supplier of imports. (In 2009, more than 17 % of the EU’s 
imports  came  from  China). The  European  Union  is  Russia’s  main  trading  partner 
and its biggest source of foreign investment. Apart from trade, the main issues in 
EU-Russia  relations  concern  cross-border  matters  such  as  the  security  of  energy 
supplies, in particular gas.

III. aFrIc a

Relations between Europe and sub-Saharan Africa go back a long way. Under the 
Treaty of Rome in 1957, the then colonies and overseas territories of member states 
became  associates  of  the  Community.  Decolonisation,  which  began  in  the  early 
1960s, turned this link into a different kind of association, one between sovereign 
countries.

The Cotonou Agreement, signed in 2000 in Cotonou, the capital of Benin, marked a 
new stage in the EU’s development policy. This agreement between the European 
Union and the African, Caribbean and Pacific (ACP) countries is the most ambitious 
and far-reaching trade and aid agreement ever concluded between developed and 
developing countries. It followed on from the Lomé Convention, which was signed 
in 1975 in Lomé, the capital of Togo, and subsequently updated at regular intervals.

This agreement goes significantly further than earlier ones, since it has moved from 
trade relations based on market access to trade relations in a wider sense. It also 
introduces new procedures for dealing with human rights abuses.

The European Union has granted special trading concessions to the least developed 
countries, 39 of which are signatories to the Cotonou Agreement. Since 2005, they 
have  been  able  to  export  practically  any  type  of  product  to  the  EU,  duty  free.  In 
2009, the EU agreed to provide the 77 ACP countries with € 2.7 billion of aid in the 
fields of health, water, climate change and peacekeeping. 

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   ‘Europe will not be made all at once, or according 
to a single plan. It will be built through concrete 
achievements which first create a de facto solidarity.’

   This statement from 1950 is still true. But what are the 

great challenges for Europe in the coming years?

 
 
 
‘Europe will not be made all at once, or according to a single plan. It will be built 
through  concrete  achievements  which  first  create  a  de  facto  solidarity’.  So  said 
Robert  Schuman  in  his  famous  Declaration,  launching  the  European  integration 
project on 9 May 1950. Sixty years on, his words are as true as ever. The solidarity 
between  Europe’s  peoples  and  nations  must  constantly  be  adapted  to  deal  with 
new challenges posed by a changing world. Completion of the single market in the 
early 1990s was a great achievement, but it was not enough. To make the market 
work effectively, the euro had to be invented – making its appearance in 1999. To 
manage the euro and ensure price stability, the European Central Bank was set up: 
but the financial crisis of 2008-09 and the debt crisis of 2010 showed that the euro 
is  vulnerable  to  attack  by  global  speculators. What  is  needed,  in  addition  to  the 
ECB,  is  coordination  of  national  economic  policies  –  a  much  closer  coordination 
than currently provided by the Eurogroup. So, will the EU soon be laying plans for 
genuinely shared economic governance?

Jean  Monnet,  the  great  architect  of  European  integration,  concluded  his  1976 
memoirs with these words: ‘The sovereign nations of the past can no longer solve 
the problems of the present: they cannot ensure their own progress or control their 
own future. And the Community itself is only a stage on the way to the organised 
world of tomorrow’. Given today’s global economy, should we already regard the 
European  Union  as  no  longer  politically  relevant?  Or  should  we  rather  be  asking 
how to unleash the full potential of half a billion Europeans who share the same 
values and interests?

The European Union will soon have more than 30 member states, with very different 
histories,  languages  and  cultures.  Can  such  a  diverse  family  of  nations  form  a 
common political ‘public sphere’? Can its citizens develop a shared sense of ‘being 
European’ while remaining deeply attached to their country, their region and their 
local community? Perhaps they can, if today’s member states follow the example 
of  the  very  first  European  Community  –  the  ECSC  –  which  was  born  from  the 
rubble of the Second World War. Its moral legitimacy was based on reconciliation 
and consolidating the peace between former enemies. It adhered to the principle 
that  all  member  states,  whether  large  or  small,  had  equal  rights  and  respected 
minorities.

71

Will  it  be  possible  to  keep  pushing  ahead  with  European  integration,  claiming 
that  the  EU’s  member  states  and  their  peoples  all  want  the  same  thing?  Or  will 
EU leaders make greater use of ‘reinforced cooperation’ arrangements, whereby ad 
hoc groups of member states can move ahead without the others in this or that 
direction? The multiplication of such arrangements could lead to an à la carte or 
‘variable  geometry’  Europe,  with  each  member  state  free  to  choose  whether  to 
pursue  a  particular  policy  or  to  be  part  of  a  particular  institution.  This  solution 
might appear attractively simple, but it would be the beginning of the end for the 
EU, which works by anticipating the common interests of its member states, in both 
the short and the long term. It is based on the concept of solidarity – which means 
sharing the costs as well as the advantages. It means having common rules and 
common  policies.  Exemptions,  derogations  and  opt-outs  should  be  exceptional 
and  of  short  duration.  Transitional  arrangements  and  phasing-in  periods  may 
sometimes be necessary, but unless all the member states keep to the same rules 
and work towards the same goals, solidarity breaks down and the advantages of 
being in a strong and united Europe are lost.

Globalisation obliges Europe to compete not only with its traditional rivals (Japan 
and  the  US)  but  also  with  fast-rising  economic  powers  such  as  Brazil,  China  and 
India. Can it continue restricting access to its single market in order to protect its 
social  and  environmental  standards?  Even  if  it  did  so,  there  would  be  no  escape 
from the harsh realities of international competition. The only solution is for Europe 
to become a real global player, acting in unison on the world stage and asserting 
its interests effectively by speaking with one voice. Progress in this direction can 
only be achieved by moving towards political union. The President of the European 
Council,  the  Commission  President  and  the  High  Representative  of  the  Union  for 
Foreign Affairs and Security Policy must together give the EU strong and consistent 
leadership. 

At  the  same  time,  the  EU  needs  to  become  more  democratic.  The  European 
Parliament – which has been given greater power with each new treaty – is directly 
elected by universal suffrage every five years. But the percentage of the population 
actually voting in these elections varies from country to country, and the turnout is 
often low. The challenge for the EU’s institutions and national governments is to find 
better ways of informing and communicating with the public (through education, 
NGO networks, etc.) and thus foster the emergence of a common European public 
sphere in which EU citizens can shape the political agenda.

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Europeans need to work together today for their future tomorrow.

Finally,  Europe  should  punch  its  full  weight  in  international  affairs.  One  of  the 
EU’s  great  strengths  is  its  ability  to  spread  European  values  beyond  its  borders. 
Values  such  as  respecting  human  rights,  upholding  the  rule  of  law,  protecting 
the environment and maintaining social standards in the social market economy. 
Imperfect  as  it  is,  the  EU  can  hardly  claim  to  be  a  shining  model  for  the  rest  of 
humanity. But to the extent that Europe is successful, other regions will look to it as 
an example. What would count as success for the EU in the years ahead? Bringing 
its public finances back into balance. Coping with the ageing of its population in a 
way that does not unfairly penalise the next generation. Finding ethical responses 
to the huge challenges posed by scientific and technological progress – particularly 
in  biotechnology.  Ensuring  security  for  its  citizens  without  undermining  their 
freedom. If it can do these things, Europe will continue to be respected and will 
remain a source of inspiration to the rest of the world.

73

 
 
Key dates  
in the history of  
European integration

74

1950

1951

1955

1957

1960

1963

1965

1966

1968

1969

1970

1973

9 May – Robert Schuman, the French Minister for Foreign Affairs, makes 
an important speech putting forward proposals based on the ideas of Jean 
Monnet.  He  proposes  that  France  and  the  Federal  Republic  of  Germany 
pool  their  coal  and  steel  resources  in  a  new  organisation  which  other 
European countries can join.

18  April  –  In  Paris,  six  countries  –  Belgium,  the  Federal  Republic  of 
Germany, France, Italy, Luxembourg and the Netherlands – sign the Treaty 
establishing the European Coal and Steel Community (ECSC). It comes into 
force on 23 July 1952, for a period of 50 years.

1-2  June  –  At  a  meeting  in  Messina,  the  foreign  ministers  of  the  six 
countries  decide  to  extend  European  integration  to  the  economy  as  a 
whole.

25 March – In Rome, the six countries sign the Treaties establishing the 
European  Economic  Community  (EEC)  and  the  European  Atomic  Energy 
Community (Euratom). They come into force on 1 January 1958.

4  January  –  At  the  instigation  of  the  United  Kingdom,  the  Stockholm 
Convention  establishes  the  European  Free  Trade  Association  (EFTA), 
comprising a number of European countries that are not part of the EEC.

20 July – In Yaoundé, an association agreement is signed between the EEC 
and 18 African countries.

8  April  –  A  treaty  is  signed  merging  the  executive  bodies  of  the  three 
Communities (the ECSC, EEC and Euratom) and creating a single Council 
and a single Commission. It comes into force on 1 July 1967.

29 January – The ‘Luxembourg compromise’: following a political crisis, 
France agrees to take part in Council meetings once again, in return for 
an agreement that the unanimity rule be maintained when ‘vital national 
interests’ are at stake.

1 July – Customs duties between the member states on industrial goods 
are completely abolished, 18 months ahead of schedule, and a common 
external tariff is introduced.

1-2 December – At the Hague Summit, the EEC’s political leaders decide to 
move further ahead with European integration.

22  April  –  In  Luxembourg,  a  treaty  is  signed  allowing  the  European 
Communities to be increasingly financed from ‘own resources’ and giving 
greater supervisory powers to the European Parliament.

1 January – Denmark, Ireland and the United Kingdom join the European 
Communities,  bringing  their  membership  to  nine.  Norway  stays  out, 
following a referendum.

75

1974

9-10  December  –  At  the  Paris  Summit,  the  political  leaders  of  the 
nine  member  states  decide  to  meet  three  times  a  year  as  the  European 
Council. They also give the go-ahead for direct elections to the European 
Parliament, and agree to set up the European Regional Development Fund.

1975

28 February – In Lomé, a convention (Lomé I) is signed between the EEC 
and 46 African, Caribbean and Pacific (ACP) countries.

1979

1981

1984

1985

22 July – A treaty is signed giving the European Parliament greater power 
over the budget and establishing the European Court of Auditors. It comes 
into force on 1 June 1977.

7-10 June – The first direct elections to the 410-seat European Parliament.

1 January – Greece joins the European Communities, bringing the number 
of members to 10.

14 and 17 June – The second direct elections to the European Parliament.

7  January  –  Jacques  Delors  becomes  President  of  the  Commission  
(1985-95).

14 June – The Schengen Agreement is signed with the aim of abolishing 
checks  at  the  borders  between  member  countries  of  the  European 
Communities.

1986

1 January – Spain and Portugal join the European Communities, bringing 
their membership to 12.

17 and 28  February – The Single European Act is signed in Luxembourg 
and The Hague. It comes into force on 1 July 1987.

1989

1990

1991

1992

1993

1994

15 and 18 June – The third direct elections to the European Parliament.

9 November – The fall of the Berlin Wall.

3 octobre – German unification.

9-10  December  –  The  Maastricht  European  Council  adopts  a  Treaty  on 
European  Union.  This  lays  the  foundation  for  a  common  foreign  and 
security  policy,  closer  cooperation  on  justice  and  home  affairs  and  the 
creation of economic and monetary union, including a single currency.

7  February  –  The  Treaty  on  European  Union  is  signed  at  Maastricht.  It 
comes into force on 1 November 1993.

1 January – The single market is created.

9 and 12 June – The fourth direct elections to the European Parliament.

76

1995

1  January  –  Austria,  Finland  and  Sweden  join  the  EU,  bringing  its 
membership to 15. Norway stays out, again following a referendum.

1997

1998

1999

23  January  –  A  new  European  Commission  takes  office  with  Jacques 
Santer as its President (1995-99).

27-28  November  –  The  Euro-Mediterranean  Conference  in  Barcelona 
launches a partnership between the EU and the countries on the southern 
shore of the Mediterranean.

2  October  –  The  Amsterdam  Treaty  is  signed.  It  comes  into  force  on  
1 May 1999.

30 March – The accession process begins for the new candidate countries 
– Cyprus, Malta and 10 central and eastern European countries.

1 January – Eleven EU countries adopt the euro, which is launched on the 
financial  markets,  replacing  their  currencies  for  non-cash  transactions. 
The  European  Central  Bank  takes  on  responsibility  for  monetary  policy. 
On 1 January 2001, Greece becomes the 12th country to adopt the euro.

10 and 13 June – The fifth direct elections to the European Parliament.

15 September – A new European Commission takes office with Romano 
Prodi as its President (1999-2004).

15-16 October – The Tampere European Council decides to make the EU an 
area of freedom, security and justice.

2000

23-24  March  –  The  Lisbon  European  Council  draws  up  a  new  strategy 
for  boosting  employment  in  the  EU,  modernising  the  economy  and 
strengthening social cohesion in a knowledge-based Europe.

7-8 December – In Nice, the European Council reaches agreement on the 
text  of  a  new  treaty  changing  the  EU’s  decision-making  system  so  that 
the Union will be ready for enlargement. The Presidents of the European 
Parliament, the European Council and the European Commission solemnly 
proclaim the Charter of Fundamental Rights of the European Union.

2001

26  February  –  The  Treaty  of  Nice  is  signed.  It  comes  into  force  on 
1 February 2003. 

14-15 December – Laeken European Council: a declaration on the future 
of the EU is agreed. This opens the way for the forthcoming major reform 
of the EU and for the creation of a Convention (chaired by Valéry Giscard 
d’Estaing) to draft a European Constitution.

2002

2003

1  January  –  Euro  notes  and  coins  are  introduced  in  the  12  euro-area 
countries.

10 July – The Convention on the Future of Europe completes its work on 
the draft European Constitution.

77

2004

1 May – Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, 
Malta, Poland, Slovakia and Slovenia join the European Union.

10 and 13 June – The sixth direct elections to the European Parliament.

29 October – The European Constitution is signed in Rome by the 25 Heads 
of State or Government.

22  November  –  A  new  European  Commission  takes  office  with  José 
Manuel Barroso as its President.

29  May  and  1  June  –  Voters  in  France  reject  the  Constitution  in  a 
referendum, followed three days later by voters in the Netherlands. 

3 October – Accession negotiations begin with Turkey and Croatia.

1 January – Bulgaria and Romania join the European Union.
Slovenia becomes the 13th country to adopt the euro.

13 December – The Treaty of Lisbon is signed.

1 January – Cyprus and Malta become the 14th and the 15th countries to 
adopt the euro.

2005

2007

2008

2009

1 January – Slovakia becomes the 16th country to adopt the euro.

4-7 June – The seventh direct elections to the European Parliament.

2 October – A referendum in Ireland approves the Treaty of Lisbon.

1 December – The Treaty of Lisbon comes into force.
Herman Van Rompuy becomes President of the European Council and
Catherine Ashton becomes High Representative of the Union for Foreign 
Affairs and Security Policy. 

2010

9  February  –  The  European  Parliament  gives  its  consent  to  the  new 
European Commission, with José Manuel Barroso as its President for the 
second time.

9 May – A European Financial Stabilisation Mechanism is created, worth 
€ 750 billion.

2011

1 January – Estonia becomes the 17th country to adopt the euro.

78

noteS

79

The European Union

0

500 km

Reykjavík

Ísland

Norge

Oslo

Sverige
Stockholm

United Kingdom

Éire
Ireland

Baile Átha Cliath
Dublin

Danmark
København

London

Nederland
Amsterdam

België

Brussel
Bruxelles
Belgique

Berlin

Deutschland

Paris

Luxembourg
Luxembourg

Praha
Česká
republika

Suomi
Finland

Helsinki
Helsingfors

Tallinn
Eesti

Rīga

Latvija

Lietuva
Vilnius

R.

Minsk

Belarus'

Warszawa

Polska

Kyïv

Ukraїna

France

Portugal

Lisboa

Madrid

España

Andorra

Liechtenstein

Wien

Schweiz
Bern

Suisse

Svizzera

Budapest
Magyarország

Moldova
Chişinău

Slovensko

Bratislava

Österreich
Slovenija
Ljubljana

Zagreb
Hrvatska

Monaco

San Marino

Bosna i
Hercegovina

Sarajevo

Beograd

Srbija

Italia
Roma

Città del
Vaticano

Crna
Gora

Podgorica

Priština

Kosovo

* UNSCR 1244

Skopje

P.J.R.M.

Tiranë
Shqipëria

România

Bucureşti

България
Bulgaria
София
Sofia

Ankara

Türkiye

Ελλάδα
Ellada

Αθήναι
Athinai

Rabat

El Maghreb

Alger

El Djazâir

Tunis

Tounis

Malta

Valletta

Κύπρος
Kypros
Kibris

Λευκωσία
Lefkosia
Lefkosa

Souriya

Iraq

Libnan

Beyrouth

Dimashq

Member States of the European Union (2011)

Candidate countries

Açores (PT)

Madeira (PT)

Canarias (ES)

Paramaribo

Suriname

Guyane
(FR)

Brasil

Rossija

Moskva

Guadeloupe (FR)

Martinique (FR)

Réunion (FR)

Qazaqstan

Sakartvelo

Tbilisi

Azərbaycan
Haїastan

Yerevan

(Azər.)
Iran

Getting in touch with the EU

 ONLINE 
Information in all the official languages of the European Union is available on the 
Europa website:  
europa.eu

 IN PERSON 
All over Europe there are hundreds of local EU information centres. You can find the 
address of the centre nearest you on the Europe Direct website:  
europedirect.europa.eu

 ON THE PHONE OR BY MAIL 
Europe Direct is a service which answers your questions about the  European 
Union. You can contact this service by freephone:  
00 800 6 7 8 9 10 11, by payphone from outside the EU: +32 22999696  
or by  electronic mail via the Europe Direct website: europedirect.europa.eu

 READ ABOUT EUROPE 
Publications about the EU are only a click away on the EU Bookshop website:  
bookshop.europa.eu 

You can also obtain information and booklets in English about the European union from:

EuroPEaN CoMMISSIoN rEPrESENT aTIoNS

Representation in Ireland 
European Union House
18 Dawson Street, Dublin 2
IRELAND
Tel. +353 16341111
Internet: ec.europa.eu/ireland/
E-mail: eu-ie-info-request@ec.europa.eu

Representation in the United Kingdom 
Europe House
32 Smith Square, London SW1P 3EU
UNITED KINGDOM
Tel. +44 2079731992
Internet: ec.europa.eu/uk

Representation in Wales
2 Caspian Point, Caspian Way, Cardiff
CF10 4QQ
UNITED KINGDOM
Tel. +44 2920895020
Internet: ec.europa.eu/uk

Representation in Scotland
9 Alva Street, Edinburgh EH2 4PH
UNITED KINGDOM
Tel. +44 1312252058
Internet: ec.europa.eu/uk

Representation in Northern Ireland
74 - 76 Dublin Road, Belfast BT2 7HP
UNITED KINGDOM
Tel. +44 2890240708
Internet: ec.europa.eu/uk

Delegations in the United States
2175 K Street, NW
Washington DC 20037
UNITED STATES OF AMERICA
Tel. +2028629500
Internet: eurunion.org
222 East 41st Street, 20th floor
New York, NY 10017
UNITED STATES OF AMERICA
Tel. +2123713804
Internet: eurunion.org

EuroPEaN ParLIaMENT oFFICES

Office in Ireland 
43 Molesworth Street, Dublin 2
IRELAND
Tel. +353 16057900 
Internet: www.europarl.ie
E-mail: epdublin@europarl.europa.eu

United Kingdom Office
Europe House 
32 Smith Square, London SW1P 3EU
UNITED KINGDOM
Tel. +44 2072274300
Internet: www.europarl.org.uk
E-mail: eplondon@europarl.europa.eu

Office in Scotland
The Tun, 4 Jackson’s Entry
Holyrood Road, Edinburgh EH8 8PJ
UNITED KINGDOM
Tel. +44 1315577866
Internet: www.europarl.org.uk
E-mail: epedinburgh@europarl.europa.eu

There are European Commission and Parliament representations and offices in all the countries of the European Union. 
The European Union also has delegations in other parts of the world.

 
 
 
 
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Pascal Fontaine, 
former assistant to Jean Monnet  
and Professor at  
the Institut d’Études Politiques, Paris

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Europe in 12 lessons

What purpose does the EU serve? Why and how was it set up? How does 
it  work? What  has  it  already  achieved  for  its  citizens,  and  what  new 
challenges does it face today?

In an age of globalisation, can the EU compete successfully with other 
major  economies  while  maintaining  its  social  standards?  What  will 
Europe’s role be on the world stage in the years ahead? Where will the 
EU’s boundaries be drawn? And what future is there for the euro?

These  are  just  some  of  the  questions  explored  by  EU  expert  Pascal 
Fontaine in this 2010 edition of his popular booklet Europe in 12 lessons.