15. New World Tendencies. European and Regional Integration

.

1. The beginning of the European integration

Causes of the European integration

1)

2) after the WWI1 the USA through the Marshall Plan intensified its influence in Europe. NATO located a lot of military bases on the territory of West Europe. To oppose it, West Europe decided to unite its economic potential.

First step in the formation of the united Europe was unification of coal and steel - the idea of R. Shuman, minister of foreign affairs of France (Plan of Shuman). In 1951 6 countries (France, Italy, Germany and countries of Benelux: Belgium, Netherlands, Luxemburg) signed and agreement about European union of coal and steel- it was a laboratory of economic cooperation of thousands of industrial, financial, trade, insurance companies. **Great Britain refused to join the Union.

The second step-in 1957 these 6 countries signed the Rome Treaty ( Common Market.)

European Economic Community:

Single market stimulated economic development.

* Great Britain wanted to join Common Market( why?)

but De Gaulle used the right of veto and GB was refused joining. Only in 1973 Great Britain was allowed to enter the Union. By that time GB fell behind France and Germany.

European Union had 3 directions of integration:

1. industrial, trade, financial companies integration

2. governments, parliaments and over national structures cooperation

3. by the 90-s regions were involved into integration.

These structures solved all problems and conflict situations, improved tariffs system and introduced ( 1975) new currency ECU.

By the beginning of the 90-s the European countries came to the third period of integration-economic and currency union. There were 3 stages of the final integration:

A). 1990-1993 preparatory stage for the treaty signing- Maastricht treaty of 1992 that first established the European Union under that name.

Infrastructure that crosses state borders was formed. Harmonized standards created a larger, more efficient market.

Socio- economic indexes were harmonized, too( budgets, trade deficits, state debts, inflation rate)

B. 1994-1998 European Currency Institute and European Central Bank were organized

C. 1999 - a single currency, the Euro, was introduced.

2. European Union, its main bodies

European Union

European Community Common Foreign and Security Policy Police and Judicial an actual body Cooperation in Criminal

Matters

(European Parliament, Council of the European Union, European Commission).

Now the EU is the most powerful regional organization, it has the largest economy in the world: GDP in 2002 9, 613 10 euro( the USA has the largest GDP of a single country 8, 782 10 euro). Standard of living is different- GNI per capita in Luxemburg 54430 dollars, in Latvia 10 130 dollars)

Requirements for the members are very strict: political stability, democratic regimes, human rights and national minorities rights protection; developed market economy.

1973 Denmark, Ireland, GB 1981 Greece 1986 Portugal and Spain 1995 Austria, Finland, Sweden

2004 Cyprus, the Czech republic Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, Slovenia P Member states

d Problems: