Principal
The US-EU
A Short
Enlargement
Appendix:
Tophings to Know About:
The European
EU
Atmospherics
EU Milestones:
European Commission:
The1
Economics
Economic ond Monetary Union
GOP Per Capita:
GDP Growth, Unemployment, ond Inflation: ,
Trade and Investment
Tronsallontic
The EU's Role in World Trade:
Enlargement
European Union Members ond
Comparilive Statistics lor the EU ond Condidiole
European Integration:
Principal Institutions
ncdion European Union (EU)nique mix of slate-to-stole cooperation found in traditional international organiialions and supranational oulhority, particularly in the economic and trade spheres.esult, the EU neither looks nor behavesationalsource of frustration for foreign governments dealing with it.
US officials deal most often with EU CommissionTrade Commissioner Pascal Lamy ond External Relations Commissioner Chris Patten.
European Commission;s executiveeaded byommissioner. appointed by the membermplements decisions taken by the European Council and the Council of the Eutopeonlso initiatesEU regulations binding on memberCouncil and Potliamentaryakes the lead on internal market and external trade issues as well os other suptanalionalontains Ihe bulk of Ihe EU civilepresented abroad by delegations that serve
as quasi Elf-embassies.
The Commission reports to the "Council" of Ministers. High Representative tor Common Foreign ond Security Policy Javierfrequent US interlocutor-works for the Council.
Council of the European Union: Composed ol member-stale ministers on specific subject areas (that is, economics ond finance, ogricutture, transport, theonthly meetings for the most important version: the General Affairs Council ol EU foreignrovides specific guidonce to the Commission to negotiate on its behalf with foreign partners, especially in the tradencreasingly makes decisions by Qualified majorityountriesotional veto where core interest's ore at stoke, such
as tones.
EU leaders areoard of directors.
European Council: Composed of the heads of stole ond government of theember states ond Ihe European Commissionypically meetsuarterlyrovides overoH policy guidance to theoires decisions on contentious issues involving Questions of nofionol sovereignfy, such as the creationefense copobil'tty ond an EU policeegotiates changes to the treaties that define EU institutions and decisionmaking.
The Rotating EU Presidency
, Eoch momber state takes Ihe reins for six months and its leader is known as the "EU
] weden currently holds lhe EU presidency ond will be followed by Belgium in
July Repri lentaiives of the pres dei cy country chail PA)ngs of member slates oi oil levers. : When traveling abroad, tbe EU President often rs joined by Ihe Europeon Commission
President and (he High Representative for Common Foreign and Security(heir
a formation knownroika."
The European Parliamentecondary player in most decisionmaking but its. authority and credibility are gradually increasing.
The turopcan Parliament: Directlyeviews legislation ond the budget with theversees Commission activities, con force rf fouo/ heodquorters in Brussels and Strasbourg, France.
EU institutions ond decisionmaking ore under near-continual reform in treaty revision sessions known as Inter-Governmental Conferenceshe IGC that concluded in0 in Nice. France, provided sufficient reform to allow for enlargement and the resulting Treaty of Nice is due to be ratified by the end of nerf yeor. Another IGC is scheduled
Council of Europe
The Europeon Union and its councils should not be confused with the Council of Europe, j which has Ihe same flag but isotally distinct organization. The Council's memberall Europeon countries, includingto protect human J rights, democrocy, and the rute ol low. The Council was founded9 and its heodquar-j ters is in Strasbourg, France. The US has held observer status at the Council
The US-EU Relationship
The United Sloles has supported Europeon integration since the end of World War II because it has assessedtrong Europe serves US national interests. Today, lhe US ond EU enjoy
Ihe largest economic relotionship in the world withrillion in annual trade ond investment.5 Ihe United Slates and EUNew Transatlantic Agenda" (NTA) to guide relations
in Ihe post-Cold Wor world. The NTA provides for continuous consultationrood
range of economic and foreign policy areas, including annual meetings between Ihe US and
EU Presidents.
The NTAeries ol ironsotVontic dialogues lo facilitate people lo people contacts. The Tioniollanln Business Dialogue brings logether businesses ond governments lo look beyond current hode disputes ond encourage commercial growth. The Transatlantic Consumer Dialogueorum for consumer groups and government officials. Other diologues address lobar issues, information technology, and foreign oid
The Transallontic Economic ftirtnership, begunas worked for ogreemerrt on standards ond regulatory barriers, biotechnology, and food safety.
A Short History
Themember EU traces its rootshen France, Wesl Germany, Italy, Belgium, Luxembourg, and The Netherlands signed the Treaty of Rome which created the European Economic Community. The EEC eliminated barriers to trade in goods ond services in the six-country region, andommon external tariff.
six countries hunched the EEC after first forming the European Cool ond Steel Communityort to 'ink their economies closely logether ond make another war unthinkoble. By the end of the Cold War, the EEC hod grown toember countries.
2 the member slolos signed Ihe Treaty of Moostrichl ond adopted the name "European Union" lo reflect Iheir desire to go wellommon market. Moostrichl set goalsommon currency (the euro, which debuted as an interbank currency9 ond will begin circulating nexlommon foreign ond security policy, ond cooperation in low enforcement and immigration.
ustria, Fmkmd. and Sweden joined the EU. The EU subsequently startedlo lake in Ihe former Warsaw Pact countries in Central and Eastern Europe,venio, Cyprus, and Malto.
British support, the EU8 began loefense capability autonomous of NAIO lhat ovenlually will be available tor peacemaking, peacekeeping, and humanitarian operations.
Enlargement Plans
8 the EU opened accession negotiations with Poland, lhe Czech Republic, Hungary, Slovenia, Estonia, ond Cyprus. Two years later Brussels launched talks with six additional candidate-countries: Bulgaria, Lithuania, Latvia, Malta, Romania, and Slovakia. The EU has ottered Turkey "candidacyut will not begin formal accession negotiations until Ankara meets criterio on democracy and human rights.
Candidate-countries must adoptpope body of EU law ond regulation to quality for membership.
Brussels is supplying financial ond technical ossisfonce to help get the applicants up to EU standards.
When oilountries currently engaged rn accession talis enter 'he fIrkefy by 'he end ofill be world's lorgesl economy and trading bloc.
The EU has sel4 as Ihe informal deadline to admit new members. Concern among member slates about the financial aid institutional impact of enlargement, however, could deloy the process or limit tbe ranks of the next round.
is little public enthusiasm in tbe EU tor enlargement because* of the steep costsgricultural subsidies atone would break the bonfc if extended in their current form to oil the newieor of an influx of cheap labor from (he east.
EU is the prime engine of European integration, promoting7 peacefuleconomic prosperity among its nowember countries.
The EU is responsible forommon internal market, negotiating foreign trade agreements, ondommon currency. The EU promotes cooperation in judicial, police, and immigration affairs.
Although tbe EUegionalas global interestslobal reach. Trade and competition policy decisions, in particular, directly impact the United States.
The EU has been called an economic giantoliticalsituation it hopes lo change with the developmentobust common foreign policyilitary capability, The EU wants the United Slates and Ihe rest of the world to regard it as fully equal to the United Stoles.
Member states control EU policyody known as the European Council. The European Commission, based in Brussels, is the executive agency of tbe EU and can initiate legislation. The Europeon Parliament reviews legislation and oversees the budget.
The EU works primarily byime-consuming process, although more decisions ore becoming subjectajority vote. There are longstanding divisions in the EU between small and large states, northern and southern states, and those favoring different degrees ofthat will be accentuated when the EU lakesozen new members in the coming decade.
Member-state leaders, foreign ministers, ond even lower-level officials have much more frequent meetings and dialogue with each other than they do with the United States.
The EUork in progress whose institutions ond decisionmaking procedures are under regular revision, without agreement on the final shape.
Europeons ond US officials often find Ihe EU difficult to understand ond work with because
itnique international institution, combining characteristicsation-state with thoseupranational organization. Critics call it opaque, inefficient, and unaccountable.
stoles, represented by Javier Solano, drive foreign ond security policy whileCommissioner Patten implements policy,5 billion budget. Thecooperation, even with foes, over confrontation.
US ond EU enjoy the loigcit economic relationship in the world.
Bilateral (rode disputes have proliferated in recent years. The US and EU setTransatlantic Economic Partnership' (IEP) to emphasize cooperotion and manage disputes.
EU Trode Commissioner Pascal Lamy is the key trode ofhciol for the EU, which negotiates as one on the world stage, but he must submit all proposals to the member slates, which retain ultimate control over Ihe direction of trade policy.
The European Union accounts forercent of world exports ondercent of world imports, including inlra-EU trade, compared toercent of world exports andercent of world imports for the US.
EU trode policy supports rhe use of free trade and customs agreements to gain morkeh for European firms; around one-third of total world exports9 were covered by such EU accords compared toercent for US FTAs.
The EU stronglyomprehensive WTO round lhat would include investment, competition, environment and other topics.
The EU supports its politically-sensitive agriculture sector through subsidies and other means.
European food scares, notably mod cow disease, hove damaged public trust in government and science, pushed EU governments lo ban products based on public concerns rather than scientific evidence, ond prompted plansuropean Pood Authority.
US ond EU CEO's work together in Ihe Transatlantic Business Dialogue lo encourage commerool growth.
U opplicanl countries' potentially high agricultural subsidy cloims will pul pressure on the EU to reform its Common Agricultural Policy, which takes upercent of the EU budget and provides incentives to overproduce.
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wrlh Developing Counrf.es in Asia, lolin America, ond South Alnco
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Cooperoiion Measures
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(Including Pensions)
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EXPENDITURES
Comparing EMU lo the United States
' ii
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Beet GDP Growth
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ond unemployment, though declining, stilt exceeds US levels .
fV'cenl lobar force
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butnflofton ho* steadily declined, and is now less than in the US.
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BMonUSS
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World Imporls by Region of0
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uropean Cool ond Sieel Community
reaty of Rome creates six-country European Economicustoms union and common external tariffenmark, Ireland, and United Kingdom join
reece, Portugal, and Spain join ofter easting off authoritarianingle European Act eliminates nontariff Irade barriers in the internalaastricht Treaty creates the Europeonustria, Finland, and Sweden join
: Former Warsaw Fact countries, Cyprus, Malta, and Turkey apply for EU membership
he euro becomes common interbank currency forf theUreaty of Nice provides institutional reforms necessary foruro bills and coins circulate inU countries,
nlargement to as many asountries, further institutional reform, and development of on autonomous defense capability.
Original document.
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