EPSO Readiness Course
Mapping European Institutions

A Brief History of the EU

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introduction

The European Union emerged in the aftermath of World War II, driven by the need for peace, stability, and economic cooperation in Europe. The initial steps towards integration were marked by the pooling of essential industries and the creation of common markets. This chapter explores the foundational treaties, objectives, and principles that laid the groundwork for what would become the EU.

The Founding Treaties

    • The Treaty of Paris, signed on 18 April 1951 and effective from 23 July 1952, marked the beginning of European integration. It created the European Coal and Steel Community (ECSC) with six countries: Belgium, France, Germany, Italy, Luxembourg, and the Netherlands.

    • The treaty's goal was to combine coal and steel resources, leading to economic interdependence. This interdependence was meant to prevent future conflicts and promote peace, especially between France and Germany.

    • By integrating these key industries, which were crucial for national power and economic stability, the treaty aimed to end the historic rivalry between France and Germany and establish lasting peace in Europe.

    • The Treaty of Paris created several important institutions to manage the European Coal and Steel Community (ECSC). The High Authority acted as the executive body, handling the administration of the community. The Parliamentary Assembly provided legislative oversight. The Council of Ministers represented the governments of the member states. The Court of Justice ensured that the community's laws were followed and provided judicial review. The Consultative Committee included stakeholders like employers, workers, and consumers in the decision-making process.

    • These institutions were designed to ensure effective governance, legislative oversight, judicial review, and stakeholder consultation within the ECSC framework.

    • The ECSC aimed to establish a common market for coal and steel, allowing these goods to move freely and ensuring free access to production sources. The treaty targeted the removal of trade barriers and the creation of a competitive market environment.

    • It sought to prevent market distortions like monopolies or cartels that could lead to unfair practices and production limits. To maintain a fair market, the ECSC enforced competition rules and ensured price transparency.

    • Additionally, it supported the modernization and adaptation of the coal and steel industries to meet changing economic conditions. The ultimate goal was to create economic interdependence and stability among the member states, making war between them not only unthinkable but materially impossible.

    • The Treaty of Rome, signed on 25 March 1957 and effective from 1 January 1958, greatly advanced European integration by creating two new communities: the European Economic Community (EEC) and the European Atomic Energy Community (Euratom).

    • These treaties expanded integration efforts beyond coal and steel to include broader economic and atomic energy cooperation. Unlike the ECSC Treaty, the Treaties of Rome were made for an unlimited period, giving them a quasi-constitutional status.

    • The EEC aimed to establish a common market and coordinate economic policies, while Euratom focused on the peaceful use of nuclear energy.

    • These treaties also laid the groundwork for a more comprehensive and lasting integration of European economies and set up the legal and institutional framework for the future EU.

    • The EEC Treaty aimed to create a common market through several key provisions. These included eliminating customs duties between member states to facilitate free trade within the community. It established a Common Customs Tariff for external trade to ensure a unified external trade policy.

    • The treaty also introduced common policies for agriculture and transport to harmonize these sectors across member states. And it created a European Social Fund to support employment and social cohesion and established a European Investment Bank to finance development projects.

    • The treaty emphasized developing closer economic relations and cooperation among member states, ensuring the free movement of goods, people, services, and capital within the common market.

    • The Euratom Treaty aimed to coordinate the supply of fissile materials and promote nuclear energy research among member states for peaceful purposes. Its goals included ensuring a stable supply of nuclear materials, fostering research and development in nuclear technology, and establishing common safety standards for the use of nuclear energy.

    • Although the treaty initially set highly ambitious objectives for the rapid establishment and growth of nuclear industries, these ambitions had to be scaled back due to the sensitive nature of the nuclear sector, which involved vital national interests like defense and sovereignty.

    • Nonetheless, Euratom aimed to harness the potential of nuclear energy for economic development and energy security while ensuring it was used safely and responsibly.

    • The ultimate vision behind the early steps of European integration was to build a "European Federation" through gradual economic cooperation, starting with key industries like coal and steel.

    • The founders of the ECSC, EEC, and Euratom believed that economic interdependence would pave the way for broader political integration. Pooling resources and creating common markets were seen as tangible achievements that would foster solidarity among member states.

    • This vision was expressed in Robert Schuman's declaration on 9 May 1950, which emphasized that Europe would be built through practical steps rather than a single grand plan.

    • The goal was to achieve lasting peace and stability in Europe by ensuring that member states were economically interdependent and committed to collaboration.

steps leading to the single european act (SEA)

    • The Council decision of 21 April 1970 introduced a new system of Community "own resources", replacing the previous method of financial contributions from member states.

    • This change allowed the EU to generate its own revenue, reducing reliance on national contributions and providing a more stable and predictable financial basis. The Treaty of Brussels (1975) further strengthened budgetary powers by giving the European Parliament the right to reject the budget and to discharge the Commission for its budget implementation.

    • Additionally, this treaty established the Court of Auditors to review the EU’s accounts and financial management, ensuring greater accountability and transparency in EU finances.

    • The Act of 20 September 1976 introduced direct universal suffrage for European Parliament elections, greatly enhancing the Parliament's legitimacy and authority.

    • Before this act, MEPs were appointed by national parliaments.

    • The first direct elections in 1979 represented a move towards greater democratic representation and accountability within the EU. This change strengthened the Parliament’s role as a central democratic institution within the EU’s governance structure.

    • The EU experienced significant enlargement in the 1970s and 1980s, starting with the accession of the United Kingdom, Denmark, and Ireland on 1 January 1973.

    • Norway did not join as it voted against accession in a referendum.

    • Greece joined in 1981, followed by Spain and Portugal in 1986.

    • These enlargements introduced new political, economic, and cultural dynamics, expanding the EU’s geographical reach and diversifying its membership.

    • This growth required adjustments in policies and budgetary allocations, particularly for the Common Agricultural Policy (CAP) and regional development funds, to address the different levels of economic development among member states.

    • The 1966 crisis, also known as the 'empty chair' crisis, arose when France boycotted EEC meetings over proposed changes to Council voting procedures, which were set to shift from unanimity to qualified majority voting in certain areas. France’s withdrawal halted progress and highlighted the challenges of achieving consensus among member states.

    • The Luxembourg Compromise, reached in January 1966, resolved the crisis by allowing any member state to veto decisions that it believed would harm its national interests. This agreement emphasized the importance of unanimity in critical areas, maintaining a balance between national sovereignty and collective decision-making within the EEC.

    • Established in 1979, the European Monetary System (EMS) aimed to reduce monetary instability and its negative impacts on the Common Agricultural Policy (CAP) and cohesion among member states.

    • The EMS used the European Currency Unit (ECU) as a common accounting unit and included an exchange-rate mechanism to stabilize currencies by minimizing fluctuations. Participation was voluntary, and the UK opted not to join initially.

    • The EMS was a major step towards deeper economic integration and coordination, setting the stage for future monetary union and the eventual introduction of the euro.

    • The Spinelli Project, led by MEP Altiero Spinelli, sought to revitalize the EU’s institutional framework through major treaty reforms.

    • In July 1980, Spinelli and other MEPs began working on a new European constitution. Their draft treaty, adopted by the European Parliament in 1984, proposed a federal structure with a bicameral legislature to balance power between the Parliament and the Council.

    • Although the member states did not adopt this draft treaty, it influenced future integration efforts by emphasizing the need for deeper institutional reforms and helped build momentum for the Single European Act.

    • The Single European Act (SEA), signed in 1986 and effective from 1 July 1987, was the first major revision of the Treaty of Rome.

    • Its main goal was to establish a single internal market by 1 January 1993, improving the free movement of goods, services, people, and capital.

    • The SEA expanded the EU’s powers into new areas such as monetary policy, social policy, economic and social cohesion, research and technological development, and environmental policy.

    • It also enhanced decision-making by introducing qualified majority voting in various areas and boosting the European Parliament’s legislative role through the cooperation procedure.

    • The SEA was a significant step towards deeper integration, laying the groundwork for further advancements in the EU’s political and economic union.

Maastricht Amsterdam

    • The Maastricht Treaty, signed on February 7, 1992, and effective from November 1, 1993, established the European Union, representing a major step towards closer integration among European nations.

    • It created a unified institutional framework consisting of the Council, the European Parliament, the European Commission, the Court of Justice, and the Court of Auditors.

    • The treaty also established the Economic and Social Committee and the Committee of the Regions as advisory bodies. It introduced financial institutions such as the European Investment Bank (EIB), and established the European System of Central Banks and the European Central Bank (ECB) to enhance financial stability and integration within the EU.

    • Under the first pillar, the European Community created a functioning single market and promoted sustainable economic development, high employment, social protection, and gender equality.

    • These goals were pursued through measures in Article 3 of the EC Treaty and initiatives like the economic and single monetary policy outlined in Article 4.

    • The Community’s activities followed the principles of proportionality and subsidiarity, ensuring that actions were suitable and implemented at the most effective level of governance.

    • Maastricht's second pillar, the Common Foreign and Security Policy (CFSP), outlined in Title V of the Treaty, aimed to establish and implement a unified foreign and security policy through intergovernmental means. Member States were expected to support this policy with loyalty and mutual solidarity.

    • The CFSP's objectives included protecting the EU's shared values, fundamental interests, independence, and integrity; enhancing the Union's security; promoting international cooperation; and advancing democracy, the rule of law, and respect for human rights and fundamental freedoms worldwide.

    • The third pillar aimed to enhance safety for EU citizens within an area of freedom, security, and justice by developing common actions across several key areas.

    • It focused on establishing rules and controls for crossing the EU's external borders, combating terrorism, serious crime, drug trafficking, and international fraud, and facilitating judicial cooperation in criminal and civil matters.

    • Additionally, the pillar created the European Police Office (Europol) to improve information exchange between national police forces and addressed issues of illegal immigration by developing a common asylum policy.

    • The Amsterdam Treaty, signed on October 2, 1997, and effective from May 1, 1999, expanded the EU's powers by highlighting balanced and sustainable development and high employment levels as key objectives. It introduced a mechanism for coordinating member states' employment policies and allowed for some Community measures in this area.

    • The treaty also applied the Community method to areas formerly under the third pillar, including asylum, immigration, external border control, combating fraud, customs cooperation, and judicial cooperation in civil matters.

    • Additionally, it fully endorsed the Schengen Agreement, creating the Schengen Area, further integrating these areas into the Community framework.

    • To prepare for EU enlargement, the Amsterdam Treaty set a maximum of 700 Members of the European Parliament (MEPs), in line with Parliament's request (Article 189).

    • It also addressed the composition of the European Commission and the weighting of votes in the Council for up to 20 member states.

    • Additionally, the Treaty extended qualified majority voting to several new areas, although some existing policies, like research policy, still required unanimity. This approach aimed to ensure that EU institutions were ready for the challenges and opportunities of an expanding membership.

The Treaty of nice

    • The Treaty of Nice, signed on February 26, 2001, and entering into force on February 1, 2003, aimed to make the EU institutions more efficient and legitimate in preparation for the enlargement to include countries from the east and south.

    • This enlargement was planned for 2004 and 2007. Given that many new member states had smaller populations, the Treaty sought to address the political weight distribution among members to ensure a balanced representation and effective decision-making within the EU.

    • The Treaty of Nice tackled several institutional issues unresolved by previous treaties (referred to as the ‘Amsterdam leftovers’).

    • These included the size and composition of the European Commission, the weighting of votes in the Council, and the extension of qualified majority voting.

    • The Treaty introduced a revised system for weighting votes in the Council to reflect the changing demographics of the EU. While the number of votes was increased for all member states, the proportion of votes held by the most populous states decreased from 55% to 45% with the accession of 10 new members and further to 44.5% by January 1, 2007.

    • A demographic 'safety net' was introduced, allowing any member state to request verification that a qualified majority represents at least 62% of the total EU population, preventing adoption if this threshold is not met.

    • The Treaty stipulated that, from 2005, the Commission would include one Commissioner per member state. The Council was given the power to decide, unanimously, the number of Commissioners and arrangements for a rotation system, ensuring representation of the demographic and geographical range of member states.

    • Additionally, the President of the Commission was granted authority to allocate and reassign responsibilities among Commissioners and to select and determine the number of Vice-Presidents.

    • The Treaty of Nice revised the composition of the European Parliament to accommodate enlargement, setting the maximum number of MEPs at 732, up from 700.

    • This adjustment aimed to balance the altered weighting of votes in the Council. Parliament's powers were expanded, allowing it to bring legal challenges against acts of the Council, Commission, or ECB and increasing its legislative role through an extended co-decision procedure and requiring its assent for enhanced cooperation in co-decision areas.

    • Parliament was also granted a role in monitoring fundamental rights in member states.

    • The Treaty empowered the Court of Justice of the EU to sit in various formations, including chambers of three or five judges, a Grand Chamber of 11 judges, or as a full Court.

    • The Council, acting unanimously, could increase the number of Advocates-General. The General Court's powers were expanded to include preliminary rulings and the possibility of judicial panels.

    • These reforms aimed to enhance the efficiency and flexibility of the EU judicial system, ensuring it could handle the increased workload from an enlarged Union.

The treaty of Lisbon

    • The Treaty of Lisbon enhances the legislative power of the European Parliament by extending the ‘ordinary legislative procedure’ (formerly known as codecision) to over 40 new policy areas, raising the total to 85.

    • It also ensures that Parliament shares equal authority with the Council in approving the annual budget and multiannual financial framework (MFF).

    • Additionally, the Treaty introduces the principle of double majority voting in the Council, requiring support from 55% of member states (at least 15 out of 27) representing at least 65% of the EU population to pass legislation.

    • The Treaty redefines the European Parliament as representing the Union’s citizens, rather than the peoples of the states. It increases Parliament’s legislative powers through the ordinary legislative procedure and ensures parity with the Council in budgetary matters.

    • Parliament elects the President of the Commission based on a proposal from the European Council, which must consider the outcome of European elections.

    • The Treaty also adjusts the number of MEPs, setting a maximum of 751 seats, which was later reduced to 705 following the UK's departure from the EU.

  • The Vice-President and High Representative VP/HR, appointed by a qualified majority of the European Council and with the agreement of the Commission President, is responsible for the EU’s common foreign and security policy and chairs the Foreign Affairs Council.

    • The Treaty of Lisbon expands policy areas under EU jurisdiction, including environment (with a focus on climate change), energy (emphasizing solidarity and security), and new areas such as intellectual property rights, sport, space, tourism, civil protection, and administrative cooperation.

    • It also strengthens the principle of subsidiarity by involving national parliaments more directly in the EU decision-making process.

    • The Treaty introduces enhanced cooperation mechanisms, allowing at least nine member states to collaborate more closely in areas where the EU has no exclusive powers.