0 Bewertungen0% fanden dieses Dokument nützlich (0 Abstimmungen)
223 Ansichten63 Seiten
CJ Stavrakos is the under-secretary-general of Specialized Agencies. As a staffer, he was the AD of UNEP, and last year he served as the Director of the CoEU. NHSMUN is a project of the international model united nations association, incorporated.
CJ Stavrakos is the under-secretary-general of Specialized Agencies. As a staffer, he was the AD of UNEP, and last year he served as the Director of the CoEU. NHSMUN is a project of the international model united nations association, incorporated.
CJ Stavrakos is the under-secretary-general of Specialized Agencies. As a staffer, he was the AD of UNEP, and last year he served as the Director of the CoEU. NHSMUN is a project of the international model united nations association, incorporated.
COEU T HE COUNCI L OF T HE E UROPE AN UNI ON Nati onal Hi gh School Model Uni ted Nati ons March 6 - 9, 201 3 N H S M U N 201 3
Hannah Olliff Secretary-General Georgia Institute of Technology
Bonnie Pham Director-General Williams College
Delia Solomon Conference Director Emory University
Puja Dullabh Chief of Staff Georgia Institute of Technology
Elizabeth Kirschenbaum Chief of External Relations George Washington University
Charles Soll Director of Security Universit Paris-Sorbonne Abu Dhabi
Russell Pildes Chief of Administrative Affairs University of Illinois at Urbana-Champaign
Heather Hedges Under-Secretary-General Georgetown University
Maggie Lawrence Under-Secretary-General Trinity College
Ryan Youra Under-Secretary-General American University
Courtney LeNoir Under-Secretary-General New York University
CJ Stavrakos Under-Secretary-General University of Pittsburgh
NHSMUN is a project of the International Model United Nations Association, Incorporated (IMUNA). IMUNA, a not-for-profit, all volunteer organization, is dedicated to furthering global issues education at the secondary school level. NATIONAL HIGH SCHOOL MODEL UNITED NATIONS T h e 3 9 t h A n n u a l C o n f e r e n c e Ma r c h 6 9 , 2 0 1 3
November 2012 Dear Delegates,
It is with the utmost excitement that I welcome you to NHSMUN 2013! My name is CJ Stavrakos, and I am the Under-Secretary-General (USG) of Specialized Agencies. This is my third year on staff, and will be my sixth year attending the conference. I started out as a delegate on DISEC and in later years, served as a delegate on the ICJ and the Security Council. As a staffer, I was the AD of UNEP, and last year I served as the Director of the CoEU.
As for a little bit about myself, I went to high school in Radnor, Pennsylvania, and I was a proud member of the Model UN team for 3 years, serving as President my senior year. Im currently a junior studying Industrial Engineering, Political Science, and Economics at the University of Pittsburgh. In political science and economics I am focused on interstate conflict, development, and formal theory. Its a pretty abnormal combination of majors, but I was unable to separate my love for math from my love for global issues, and thus was born my strange convergence of degrees. On campus, Im involved with the student government as well as organizations that provide mentors to freshman students and another which serves as ambassadors of the school to the outside of world and alumni.
Im really excited for the topics you will be discussing in all of our committees. Specials committees are different from the rest of NHSMUN in both the topics they cover and the format of debate. The smaller size of our committees allows for a more intense experience, and your Directors and ADs have become immersed in the topics. After many months of hard work, theyve summarized their subject matter expertise into the background guides. These guides are just a starting point so be sure to continue your own research into the topic, and if you have questions, please reach out to your Director and AD so that they can help. This staff has been incredible to work with so far, and I am certain that they will give you an incredible experience.
From my experience and those of my friends and colleagues, I know that NHSMUN provide an incredible experience that cannot be found anywhere else. As both a delegate and a staffer it has fundamentally shaped who I am as a person, and provided me with opportunities to develop skills that have proven critical in the real world. Im certain you will all have a blast at the conference and you will leave knowing you did your best and learned a lot in the process.
I know you guys will give great debate. Im excited and you should be too! I just want to emphasize once again that you should feel free to contact your Director, Assistant Director or me should you have any questions. Finally, I cant wait to see you all in March.
Best of Luck,
CJ Stavrakos Under-Secretary-General, Specialized Committees Specials.nhsmun@imuna.org
Hannah Olliff Secretary-General Georgia Institute of Technology
Bonnie Pham Director-General Williams College
Delia Solomon Conference Director Emory University
Puja Dullabh Chief of Staff Georgia Institute of Technology
Elizabeth Kirschenbaum Chief of External Relations George Washington University
Charles Soll Director of Security Universit Paris-Sorbonne Abu Dhabi
Russell Pildes Chief of Administrative Affairs University of Illinois at Urbana-Champaign
Heather Hedges Under-Secretary-General Georgetown University
Maggie Lawrence Under-Secretary-General Trinity College
Ryan Youra Under-Secretary-General American University
Courtney LeNoir Under-Secretary-General New York University
CJ Stavrakos Under-Secretary-General University of Pittsburgh
NHSMUN is a project of the International Model United Nations Association, Incorporated (IMUNA). IMUNA, a not-for-profit, all volunteer organization, is dedicated to furthering global issues education at the secondary school level. NATIONAL HIGH SCHOOL MODEL UNITED NATIONS T h e 3 9 t h A n n u a l C o n f e r e n c e Ma r c h 6 9 , 2 0 1 3
November 2012 Dear Delegates,
Welcome to NHSMUN 2013s Council of the European Union! My name is Jeff, and I am incredibly excited to be the Director of this sure-to-be-amazing simulation. Originally from Long Island, New York, I am currently a sophomore at the Georgetown University School of Foreign Service in Washington, DC. Down in the nations capital, I am majoring in Science, Technology, and International Affairs, alongside a pre-medical track, with, predictably, a certificate in European Studies.Basically, I am infatuated with European culture, politics, economics, and I cannot wait to show you all just how compelling that diverse continent can be! I spent last summer interning for the Italian governments Istituto Italiano di Cultura in New York City, and I hope to one day work in relation to the European Union. Thanks to some mild linguistic obsessions, I speak Italian and French.
On campus, I am heavily involved with our International Relations Club. I am also a member of Georgetowns traveling Model UN team, so even now in college I play the role of delegate in competitive conferences all over the country! I am the Director of Academic Programming for the club, which means that I am responsible for bringing prominent lecturers to campus. In addition, I am also the Webmaster of the Georgetown Journal of International Affairs, and a Student Ambassador for the Alumni Relations Program. I also staff both Georgetowns college conference (NCSC) and high school conference (NAIMUN) so if any of you will be in DC this February for NAIMUN, feel free to find me and I would love to chat! Still, NHSMUN holds a piece of my heart as it was the first conference I attended in high school, and it is an honor to be a part of this organization.
I am overwhelmingly excited for the topics that you will be discussing! The Future of the Eurozone is a complex and controversial issue that receives a horde of media coverage. With this topic, I think that we could have a thrilling debate focused on the future of the currency union, especially considering that the details of the current crisis are constantly changing. The second topic, the Europe 2020 Social Policy Assembly, is absolutely fascinating as it is often neglected by the media and has much to do with the diverse cultures and legislative policies that make the EU so fascinating. Debating this topic would be a unique and unforgettable experience, as there are a myriad of riveting subtopics and various perspectives from which the subject could be approached.
With all of that in mind, it is extremely important that we emphasize the complexity and developing nature of these topics. Please treat this Background Guide as just that, a guide, a starting point for more intense research. Truly investigate the topics, know your countrys policies in and out, and bring thought-provoking insight to your position papers and debate. Seriously though, I promise to make this the most fun, academic, and exhilarating committee you have ever been a part of! Please feel free to contact me at any point, and I just cannot wait to begin this committee simulation! See you soon!
Sincerely, Director, Council of European Union Jeffrey Caso coeu.nhsmun@imuna.org
National High School Model United Nations 2013 Council of the European Union
TABLE OF CONTENTS A Note on the NHSMUN Difference .................................................................................................... 1 A Note on Research and Preparation ..................................................................................................... 3 Committee History ................................................................................................................................. 4 Simulation ............................................................................................................................................... 7 Topic A: The Future of the Eurozone: A New Direction ...................................................................... 9 Introduction .................................................................................................................................................................... 9 History and Description of the Issue ....................................................................................................................... 10 Current Status .............................................................................................................................................................. 15 Bloc Analysis ................................................................................................................................................................ 19 Committee Mission ..................................................................................................................................................... 20 Topic B: Europe 2020: Special Legislative Session on Social Policy ................................................... 22 Introduction ................................................................................................................................................................. 22 History and Description of the Issue ....................................................................................................................... 23 Current Status .............................................................................................................................................................. 31 Bloc Analysis ................................................................................................................................................................ 34 Committee Mission ..................................................................................................................................................... 36 Research and Preparation Questions ................................................................................................... 37 Topic A ......................................................................................................................................................................... 37 Topic B .......................................................................................................................................................................... 37 Appendix I: Explanations of Relevant Agencies and Organizations ................................................... 38 Appendix II: Table of Explanations of Relevant Economic Terminology .......................................... 41 Important Documents .......................................................................................................................... 45 Topic A ......................................................................................................................................................................... 45 Topic B .......................................................................................................................................................................... 46 Bibliography ......................................................................................................................................... 47 Committee History ...................................................................................................................................................... 47 Simulation ..................................................................................................................................................................... 47 Topic A ......................................................................................................................................................................... 48 Topic B .......................................................................................................................................................................... 53 National High School Model United Nations 2013 Council of the European Union
- 1 -
A NOTE ON THE NHSMUN DIFFERENCE Esteemed Faculty and Delegates,
Hello and welcome to NHSMUN 2013! My name is Bonnie Pham, and I am the Director-General of NHSMUN 2013. I hope you are as excited as I am to experience this years conference. Our staff has been working all year to ensure that you have an engaging, substantially accurate, and rewarding experience in committee. NHSMUN strives to assure that the quality of our debate and in- committee interaction is unmatched. In order to fulfill this mission, our conference has adopted some practices that may seem unorthodox, but we feel that they are key to the continued tradition of excellence in our committees and the NHSMUN difference.
A Note on the NHSMUN Difference
NHSMUN prohibits the usage of personal electronics during committee in order to ensure that delegates do not gain an unfair advantage in debate. We feel strongly that the interpersonal connections made during debate are enhanced by face-to-face communication. Enforcing a strict no laptops policy also helps us to ensure that all our delegates have an equal opportunity to succeed in committee. While many delegates have laptops or tablets at home, NHSMUN serves students from a diverse range of backgrounds, some of whom cannot afford the technology that many students have become accustomed to.
The Dais is permitted a laptop for the purposes of communicating with respective Under-Secretary- Generals and other Senior Staff Members as well as attending to administrative needs. The Dais will only be limited to using their laptops for NHSMUN purposes, and the majority of their focus will be on the needs of the committee. In addition, we staff a dedicated team in our office to assist in typing and formatting draft resolutions and working papers so that committee time can be focused on discussion and compromise.
An additional difference that delegates may notice about NHSMUN is the committee pacing. While each BG contains two topic selections, NHSMUN committees will strive to have a fruitful discussion on and produce resolutions on a single topic; prioritizing the quality of discussion over quantity of topics addressed. In order to respect the gravity of the issues being discussed at our conference as well as the intellect of our delegates, NHSMUN committees will focus on addressing one topic in-depth. BGs contain two topics in order to allow delegates to decide what problem ought to be prioritized, a valuable discussion in and of itself, and to safeguard against the possibility that an issue will be independently resolved before conference.
NHSMUN uses a set of the Rules of Procedure that is standardized across all IMUNA-brand conferences. These rules provide a standardized system of operation that is easily translated across committee or conference lines. While the general structure and flow of committee will be familiar to any delegate who has previously participated in Model UN, there may be slight procedural differences from other conferences. All delegates are encouraged to review the Rules of Procedure
National High School Model United Nations 2013 Council of the European Union
- 2 -
before attending the conference in the Delegate Preparation Guide and are welcome to direct questions to any member of NHSMUN Staff.
While NHSMUN does distribute awards, we feel that it is crucial to de-emphasize their importance in comparison to the educational value of Model UN as an activity. NHSMUN seeks to reward delegations that excel in the arts of compromise and diplomacy. We always prioritize a dedication to teamwork over solitary achievement. Directors will judge delegates on their ability and willingness to cooperate with their peers while always maintaining an accurate representation of country policy.
At the core of the NHSMUN philosophy is an emphasis on education and compromise. As such, we do not distribute awards to individual delegates, with the exception of committees where students represent their own separate delegation (ICJ and UNSC, for example). Rather, awards will be distributed to delegations that exhibit excellence across all committees. The awards system is standardized so as to give equal weight to delegations of all sizes. Awards will also be offered for schools that demonstrate excellence in research and preparation based on the position papers submitted by their delegates. Detailed information on the determination of awards at NHSMUN will be available in Faculty Preparation Guide and online in November.
As always, I welcome any questions or concerns about the Substantive Program at NHSMUN 2013 and would be happy to discuss NHSMUN pedagogy with faculty or delegates. It is my sincerest hope that your experience at NHSMUN 2013 will be challenging and thought provoking.
National High School Model United Nations 2013 Council of the European Union
- 3 -
A NOTE ON RESEARCH AND PREPARATION Delegate preparation is paramount to a successful and exciting National High School Model United Nations 2013 Conference. We have provided this Background Guide to introduce the topics that will be discussed in your committee; these papers are designed to give you a description of the topics and the committee. However, this Guide is not intended to represent exhaustive research on every facet of the topics. We encourage and expect each delegate to fully explore the topics and be able to identify and analyze the intricacies of the issues. Delegates must be prepared to intelligently utilize their knowledge and apply it to their own countrys policy. You will find that your state has a unique position on the topics that cannot be substituted for or with the opinions of another state.
The task of preparing and researching for the conference is challenging, but it can be interesting and rewarding. We have provided each school with a copy of the Delegation Preparation Guide. The Guide contains detailed instructions on how to write a position paper and how to effectively participate in committee sessions. The Guide also gives a synopsis of the types of research materials and resources available to you and where they can be found.
An essential part of representing a state in an international body is the ability to articulate that states views in writing. Accordingly, it is the policy of NHSMUN to require each delegate (or double- delegation team) to write position papers. The position papers should clearly outline the countrys policies on the topic areas to be discussed and what factors contribute to these policies. In addition, each paper must address the Research and Preparation questions at the end of the committee Background Guide. Most importantly, the paper must be written from the point of view of the country you are representing at NHSMUN 2013 and should articulate the policies you will espouse at the conference. All papers should be typed and double-spaced. The papers will be read by the director of each committee and returned at the start of the conference with brief comments and constructive advice.
Each delegation is responsible for sending a copy of their papers to the committee directors via our online upload process on or before January 24, 2013. Complete instructions for online submissions may be found in the Delegate Preparation Guide. If delegations are unable to submit an online version of their position papers, they should contact the Director-General (dg.nhsmun@imuna.org) as soon as possible to find an alternative form of submission.
Del egat i ons t hat do not submi t posi t i on papers t o di rec t ors or summary st at ement s t o t he Di rec t or- General wi l l be i nel i gi bl e f or awards.
National High School Model United Nations 2013 Council of the European Union
- 4 -
COMMITTEE HISTORY The modern European Union emerged from a process of construction and evolution that first started nearly six decades ago. On 18 April 1951, France, Germany, Italy, Belgium, the Netherlands, and Luxembourg founded the European Coal and Steel Community (ECSC); the treaty established a common market and governing body for the production and sale of coal and steel. This treaty lasted 50 years, expiring in July 2002. On 25 March 1957 these countries modified the initial treaty and established the European Economic Community (EC) and the European Atomic Energy Community (EAEC). These treaties unified Western Europe, and served as the basis for the union that would eventually develop into the modern-day European Union. The most influential of these treaties was that which established the EC which created, progressively, a common market place of goods, person, services, and capital subject to free competition and with a common commercial policy, and which was applicable to all economic sectors. 1 These treaties continued to grow over time, adding member-states throughout the 20 th century and expanding the cooperation between the countries. In 1967 these treaties merged into one European Commission, which included a Council of Ministers and a European Parliament. Delegates appointed by the national parliaments initially filled the European Parliament, but beginning in 1979, the European Parliament conducted its first direct national elections, a process now repeated every 5 years. 2
In February 1986, the Single European Act improved the functioning of the common market and laid down a timetable for the achievement of the so-called internal marketan area without internal frontiers in which the free movement of goods, persons, services and capital is ensured. 3
The Union was solidified in 1992 with the Treaty of Maastricht, which introduced new forms of co-operation between the member state governmentson defense, and in the area of justice and home affairs." 4 The signing of the treaty resulted in a variety of new competenciesrelated to social policy and employment, research and technological development, the environment, culture and education, public health and consumer protection, economic and social cohesion, and development cooperation. The most significant policy responsibility included in the treaty involved cooperation on monetary policy, with the ultimate goal of creating a single European currency. 5 The Maastricht Treaty provided the framework for todays European Union.
Members
The Council of the European Union (CoEU) serves as one half of the legislative arm of the EU and has 27 member states. The original members of Germany, France, Italy, Netherlands, Luxembourg, and Belgium were joined by Denmark, Ireland, and the UK in 1973. Greece joined in 1981 followed by Spain and Portugal in 1986, Austria, Finland, and Sweden in 1989, Czech Republic, Estonia,
1 Van, Gerven Walter, The European Union: a Polity of States and Peoples (Stanford: Stanford University, 2005): 7. 2 Smith, Norris, The European Union (Bronx: H.W. Wilson Company, 2005), 7. 3 Van Gerven, The European Union: A Polity of States and Peoples, 7. 4 Smith, The European Union 7. 5 Van Gerven, The European Union: A Polity of States and Peoples, 8. National High School Model United Nations 2013 Council of the European Union
- 5 -
Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia, Malta, and Cyprus in 2004, and Romania and Bulgaria in 2007. The UK, Denmark, and Ireland all joined for the economic benefits resulting from freer trade with their neighbors. Greece, Spain, and Portugal all joined following their transitions from dictatorships to democracies, while all of the ascensions since 1989 were influenced by the end of the Cold War. In addition to these countries, the EU currently recognizes Croatia, The Former Yugoslav Republic of Macedonia, Turkey, and Iceland as candidate countries and Albania, Bosnia and Herzegovina, Montenegro, Serbia, and Kosovo as potential candidate countries. 6
Mandate
Unlike committees within the United Nations, the CoEU can create laws that bind member-states. The goal of these laws is the progressive integration of Member States economic and political systems and the establishment of a single market. In addition to these binding laws, the EU can also issue non-binding recommendations and opinions, which have only advisory authority over member-states. 7 The CoEU works with the European Parliament to make EU law by adopting legislative action. The Council helps coordinate Member States policiesdevelop common foreign and security policyconclude international agreements on behalf of the Union[and] adopt the Unions budget. 8 The Council only legislates issues proposed by the European Commission, or issues raised by petitions from citizens. It is worth noting that on certain aspects of the Councils agenda, such as proposals for legislation, debate is open to the public. On other issues, however, such as foreign affairs, debate is closed to the public. Whether open or closed, council meetings are always followed by a press conference and a press release explaining what decisions have been taken. 9
Present Projects
As a committee that creates laws, the CoEU constantly responds to current global issues while simultaneously addressing long-term policy questions. Some of the present issues facing the EU include immigration and financial policy, while long term issues include further EU cohesion and the admission of new member states. A continual goal of the EU is further integration of national policy into the framework of the EU. In 2009, the Treaty of Lisbon amended several of the offices of the EU in order to further the goals of a collective Europe. This document created the role of a full-time European Council President as well as a High Representative of the Union for Foreign Affairs and Security Policy. Both of these offices work to ensure consistent policy on foreign and security issues. 10 The EU is always pursuing future action to create consistent policies and cohesion.
Finally, the EU is always looking to expand membership, and at this time there are several states who have applied for membership whose status is pending. Each states case must be carefully
6 Member Countries, European Union, accessed 15 May 2011, http://europa.eu/about-eu/member- countries/index_en.htm. 7 Application of EU Law, European Commission, accessed 15 May 2011, http://ec.europa.eu/eu_law/introduction/treaty_en.htm. 8 CONSILIUM - Council, Council of the European Union, accessed 15 May 2011, http://www.consilium.europa.eu/showPage.aspx?id=242. 9 ibid. 10 Treaty of Lisbon (Brussels: Council of the European Union, 2011). National High School Model United Nations 2013 Council of the European Union
- 6 -
considered, and the EU must decide whether the states meet the standards necessary for membership. The criterion for membership includes the consideration of economic conditions, humanitarian situations, and legislation requirements. Recently, Bulgaria and Romania were approved for membership, and countries such as Turkey and Croatia continue to negotiate for membership.
National High School Model United Nations 2013 Council of the European Union
- 7 -
SIMULATION For the most part, the rules of procedure used in this simulation will follow those in other NHSMUN committees; however, in order to promote authenticity, a few special diversions have been implemented for the Council of the European Union that delegates should note.
Throughout the course of committee, it is necessary that delegates keep in mind the effects of their actions on their countries and the EU for unlike decisions rendered by UN committees other than the Security Council; all Council decisions are legally binding for all member states of the EU.
Each time the Council convenes, it does so with a specific focal topic area. Each member state sends the most highly qualified representative from its government in that topic to the respective Council session. This selection of representatives is a fixed procedure, and the Council has established ten arrangements known as configurations. 11 For example: if discussing green energy, the Council would meet in the environment configuration, meaning that each member state would be represented by its environmental minister, unless it has previously established a permanent representative to the Council.
For the purposes of this simulation, the Council will arrange itself as follows: when discussing Topic A (The Future of the Eurozone: A New Direction), the Council will convene in the Economic and Financial Affairs configuration; when discussing Topic B (Europe 2020: A Special Legislative Assembly on Social Policy), the Council will convene in the Employment, Social Policy, Health, and Consumer Affairs configuration. Participant rosters from previous sessions can shed some light as to the representatives that have attended meetings of these configurations in the past. 12,13
In its actual functioning, the Council is moderated by the representative to that configuration of the member state that is serving as president. The presidency rotates every six months and is held by Cyprus until Irelands term begins in 2013; however, for this simulation, the committee faces pressing subject matters requiring the utmost attention of each member state, and therefore the dais will assume the role of the president, albeit from an apolitical perspective.
Delegates can motion to debate in caucuses, otherwise debate will default to the speakers list, just as in traditional NHSMUN committees. Caucusing takes two forms: moderated and unmoderated. Debate in the actual Council is typically fast-paced, productive, and highly engaging.
In this simulation, it will be presumed that both topics bear a sense of urgency profound enough to merit the issuance of legislative initiative to the Council, which means that the Council has the power in this simulation to propose amendments to existing policy. Theoretically, these proposals
11 Council Configurations, Council of the European Union, accessed 15 July 2012, http://consilium.europa.eu/council/council-configurations?lang=en. 12 Press Release -- 3181st Council Meeting, Economic and Financial Affairs (Brussels: Council of the European Union, July 10, 2012). 13 Press Release -- 3177th Council Meeting, Employment, Social Policy, Health and Consumer Affairs (Luxembourg: Council of the European Union, 2012), National High School Model United Nations 2013 Council of the European Union
- 8 -
would then be submitted to the European Commission for approval, before then being submitted to the European Parliament. In reality, the Council only possesses legislative initiative in few circumstances; however, in this simulation the EU has specifically called upon the Council for its expertise and celerity in problem solving, and therefore legislative initiative has been granted.
Delegates will not be writing resolutions in this committee, and documents will not be written in operative clause resolution format. Instead, documents will be written in paragraph form with headers for each specific section. Documents will take the form of either directives or decisions. A directive means that a member state is obligated to achieve an end goal, while the means of accomplishing this goal are left to national authorities. A decision means that both the end goal and the method to accomplish this goal are dictated in the document. Any directive or decision issued by the Council must establish its authority on the subject matter by first citing its mandate in other EU documents, all of which will be made available to delegates. This is a very important step as it reflects a component of actual Council documents. It is highly recommended that delegates also issue a press release at the end of each session in order to give citizens of the EU a sense of confidence in knowing that a body of competent representatives is resolving their concerns.
The primary difference between the Council and any other committee is arguably its voting procedure. For all procedural matters, the Council will vote by majority or supermajority, just as with any other NHSMUN committee. In voting on documents (this term includes both directives and decisions) and press releases, the Council will either vote by qualified majority, which is a voting system unique to the Council, or unanimity. The Council requires a unanimous vote in certain fields that are deemed to be of particular importance; of those relevant to this simulation: the finances of the Union, and harmonization in the field of social security and social protection. 14 The dais will decide whether qualified majority or unanimity will be required for a specific document, and can inform the committee thereof upon request following the presentation of any legislative draft. In the actual Council, there has recently been a push towards qualified majority and away from unanimous voting, although the Council of course seeks unanimity in all its votes.
Qualified majority is a three-tiered process, involving the simple majority of member states, the voting weights of member states, and the population of the EU. Qualified majority requires: fourteen of the twenty-seven member states, 255 of the 345 weighted votes, and 62% of the EUs population. As a result, qualified majority voting takes into account the sovereignty of each member state, its size, and its EU constituency. Voting will therefore take the form of roll call voting for all substantive matters, and members can vote affirmatively, negatively, or abstain. In qualified majority, there is no difference between a negative vote and an abstention. This system allows for an exciting and dynamic voting process that will pose as a new experience for many delegates.
The dais will be present to facilitate the flow of debate and to serve as a resource for delegates. Having extensively researched the topics you will be exploring, the Director and Assistant Director are more than familiar with the issues and sub-issues that the committee will cover, as well as having a total understanding of the rules of parliamentary procedure. The dais will accept written communications from delegates in any of the functioning languages of the European Union.
14 The Unions Decision-Making Procedures, Europa, accessed 15 July 2012. http://europa.eu/scadplus/constitution/majority_en.htm. National High School Model United Nations 2013 Council of the European Union
- 9 -
TOPIC A: THE FUTURE OF THE EUROZONE: A NEW DIRECTION INTRODUCTION Every exchange of a single euro, dollar, yen, and peso has an effect no matter how miniscule in todays global economy. As a result of currency pegging, heavy international trade, rate mechanisms, and more, even the slightest fluctuation in imports and exports can have a tremendous result on not just one currency, but on the entire network of global finances. As demonstrated by the international clamor related to the European debt crisis, the future of the Eurozone, and whether or not the continent will rediscover financial stability, provokes widespread global interest and even fear.
With that in mind, the Eurozones policy options are dwindling as time passes and the debt continue to mount. The primary problem is neither a lack of money nor a poor GDP-to-debt ratio, but rather has to do with currency devaluation. 15 The world watched skeptically as the monetary union decided to issue various bailouts as with the cases of Spain, Greece, and Ireland as questions arose over the economic rationality of such actions, and whether they would sow sustainable financial growth. It is growing increasingly likely that the only possible way to salvage some semblance of stability is an enhanced degree of economic coordination among all countries of the European Union (EU) which falls under the mandate of the Council of the European Union. 16
When the euro entered into force in 1999, it served to: 1) stabilize the previous volatility of intra- European exchange rates, 2) establish a common, and thus more stable, European market, 3) promote international trade by increasing the EUs economic leverage, and 4) advance further along the ladder towards European integration. 17 In fact, the goals and the process involved with the establishment of the Eurozone mirrors the formation of the EU itself. With the desire for European integration at its heart, the Eurozone and the EU alike were created to grant each member state the ability to operate at its fullest capability on the world stage.
The idea of a unified Europe dates back to the beginning of the twentieth century, and that idea brought hope that a shared history and similar economies would lead to greater influence in the global economy. 18 Representing less than 5% of the worlds population, the Eurozone gains collective bargaining power by controlling a currency used in 19.55% of all international transactions the second largest portion for any one currency. 19,20
15 How to Strengthen the European Monetary Union, Cahier Comte Bol (European League for Economic Cooperation, 2011). 16 Treaty on European Union (Amended Maastricht Treaty), Title III: Provisions on the Institutions, 2009. 17 Treaty Establishing the European Community, Part I: Principles, 1999. 18 The History of the European Union (European Union, n.d.), http://europa.eu/about-eu/eu-history/index_en.htm. 19 Population Division, Population Estimates, and Projections Section -- World Population Prospects, the 2010 Revision (United Nations, Department of Economic and Social Affairs, 2010), National High School Model United Nations 2013 Council of the European Union
- 10 -
Considering the present state of European economies, the future of the Eurozone remains unknown. Either drastic action must be taken in order to salvage the individual economies of the countries involved, or the monetary union must be preserved by economic coordination amongst the countries within and in the immediate periphery of the Eurozone. HISTORY AND DESCRIPTION OF THE ISSUE As with any other international agreement, the existence of currency unions comes and goes with time, as in the cases of the Soviet ruble and the British West African pound. During a period of positive relations between two or more countries, it makes sense that they might seek to strengthen their respective economies with a stronger, unified currency. When the relations and prospective paths between the countries diverge, the currency union may be abandoned, often with detrimental effects. 21
In the past, currency unions have primarily taken two forms: hub and spoke arrangements, and multilateral currency unions. In a hub and spoke arrangement, one countrys already existing currency is either adopted by those in its geographic periphery or imposed upon a conquered or otherwise controlled country in order to strengthen the dependence. As a result, the hub country tends to be highly-developed, while the spokes tend to be developing. The hub and spoke countries trade products that are considered atypical in comparison to trade among developed countries, in that they are highly-specialized. Trade between spokes exists only in small quantities.
In a multilateral currency union, a group of states comes together and decides to adopt a new or modified currency in place of their sovereign monetary units. 22 For example, the use of the East Caribbean dollar was created as a multilateral currency union to give the region more collective strength when competing in international markets. On the other hand, the Australian dollar serves as an example of a hub and spoke arrangement, in which small countries have adopted the currency of a larger country in order to solidify the value of their economy.
It is easy to say simply that the euro has helped European trade, but quantifying that value opens up an entirely new arena of economic debate. Known as the Rose Effect, named after the economist who created the empirical formula, the increase in trade as a result of a currency union can be measured and isolated from a plethora of other variables. After much calculation, the European Central Bank has estimated that the Rose Effect added approximately 17.7% in inter-European trade. 23
http://esa.un.org/unpd/wpp/Excel- Data/DB02_Stock_Indicators/WPP2010_DB2_F01_TOTAL_POPULATION_BOTH_SEXES.XLS. 20 Foreign Exchange and Derivatives Market Activity in April 2010, Triennial Central Bank Survey (Bank for International Settlements, September 2010), http://www.bis.org/publ/rpfx10.pdf. 21 Douglas L. Campbell, Estimating the Impact of Currency Unions on Trade Using a Dynamic Gravity Framework, March 2012, Munich University Library, http://mpra.ub.uni- muenchen.de/37091/1/MPRA_paper_37091.pdf. 22 Richard Baldwin, The Euros Trade Effects, Working Paper Series (European Central Bank, March 2006), http://www.ecb.de/pub/pdf/scpwps/ecbwp594.pdf. 23 Ibid. National High School Model United Nations 2013 Council of the European Union
- 11 -
Although the euro banknotes only entered circulation in 2002, the Euro has dramatically impacted the global economy. 24 Currently, the euro is the worlds second largest reserve currency which means that other governments strategically stockpile large quantities of it in order to secure their foreign exchange reserves. To compare, the US dollar, the worlds largest reserve currency, accounts for 62.2% of all allocated foreign exchange reserves while the euro accounts for 24.95%. 25
Even though the euro was not established until almost half a century after the foundation of the EU, a monetary union was always considered one of its goals, as the fundamental premise of the euro fits entirely in line with the vision of the EU. The creation of the European Coal and Steel Community (ECSC) in 1951 by the Treaty of Paris is considered the first and founding document along the timeline of the EUs existence. Following the Second World War, several western European countries came together in a joint effort to restore stability and preserve peace through unity of production of two goods: coal and steel. 26
Viewing the ECSC as a success, the western European states created a new treaty that forged a more substantial economic union. The Treaty of Rome, signed in 1957 spawned the European Economic Community (EEC) in 1958. Later, in 1965, the Merger Treaty would formally combine the ECSC, the EEC, and the European Atomic Energy Community into one body under the auspices of the EEC. The primary difference between the Treaty of Paris and the Treaty of Rome is that the ECSC served to reconstruct economies that had been harmed post-war, while the EEC saw that positive effects of the ECSC and took it a step further in creating a union that served to strengthen the long- term health of the economies through a financial union. One of the major goals of the EEC was to forge a customs union, which would promote regional trade by increasing efficiency through the means of a common external tariff. 27 In addition, the EEC sought to set common trade policies, a direct predecessor to the Councils function today of coordinating national economies.
The first steps towards currency union preserved national sovereignty involving each member states national currency. In 1979, the European Monetary System (EMS), which sought to accomplish the ubiquitous goal of stabilizing the exchange rates of the various European currencies, was established as a direct result of the United States removing itself from the gold standard. The EMS developed a system known as the European Currency Unit (ECU), which sought to interlink sovereign currencies in order to cushion their relative values by means of an Exchange Rate Mechanism (ERM). The ERM was managed by the European Monetary Cooperation Fund (EMCF), and the whole EMS served to foster parity among national currencies. This system is considered to be semi- pegged, which is different than a pegged system because the exchange rate can vary within a specified margin. The creation of the EMS, and further progression along the timeline of monetary unification, demonstrates how one countrys actions in this case, the conversion of the United States dollar to fiat money have direct effects on the global financial markets.
24 The IMF and Europe (International Monetary Fund, May 2012), http://www.imf.org/external/np/exr/facts/pdf/europe.pdf. 25 Currency Composition of Official Foreign Exchange Reserves (COFER) (International Monetary Fund, April 2012), http://www.imf.org/external/np/sta/cofer/eng/cofer.pdf. 26 The History of the European Union, Europa, accessed 15 July 2012, http://europa.eu/about-eu/eu- history/index_en.htm. 27 Treaty Establishing the European Economic Community, EEC Treaty, 1957, http://europa.eu/legislation_summaries/institutional_affairs/treaties/treaties_eec_en.htm. National High School Model United Nations 2013 Council of the European Union
- 12 -
This system served as the immediate predecessor to a single European currency, and by this time, Europe was not far away from the establishment of either the euro or the EU itself. At a conference in 1988, the subject of a unified currency was broached, and it was only directly opposed by the United Kingdom, with some skepticism also coming from Germany, which had long enjoyed a stable currency. It is important to note that this overall evolution was not driven solely by natural economic forces, as politics played a great role in the formation of the euro. For example, German support of a unified currency was gained as the result of an agreement with French President Franois Mitterrand in return for approval of German reunification. 28
With the signing of the Maastricht Treaty in 1992, the newly-formed EU was on its way to economic and monetary union. As a result of this treaty, the European Monetary Institute (EMI) replaced the EMCF and created ERM II, which served the much more specific focus of paving the way for stability of the euro and its adoption. The European Central Bank (ECB), a focal point in many of todays discussions about the European economy, succeeded the EMI in 1998. The Council of the European Union was given the role of establishing the formal conversion rates between sovereign currencies and the euro, which was declared equal to one ECU. 29
Introduced to the international markets in electronic form on 1 January 1999, the euros physical banknotes and coins were released on 1 January 2002. Sovereign currency was permitted to remain in force until 28 February 2002, after which the currencies ceased to be legal tender. After an early slump preceding the release of the physical currency, the value of the euro increased rapidly, peaking in 2008. Since its foundation, the Eurozone has been expanded significantly and, despite the financial tumult, continues to grow. 30
Towards the beginning of the financial crisis in 2009, an assembly of Eurozone leaders agreed on a plan to salvage the banks. Buying into European banks, they reasoned, would collectively increase their finances and ensure future lending between these European banks, even if they were facing trouble. In June 2009, a EUR500 billion injection by the ECB helped to stabilize the bond yields a of countries with weaker economies. 31 With the risk of a Greek default b looming, Eurozone leaders agreed that it would be best to turn against their traditional no bailout policy which was included in the Treaty on the Functioning of the European Union and proved contentious during the formation of the euro 32 in order to preserve the currencys value and, as a result, their own economies. With help from the International Monetary Fund (IMF), the EU created a means for a temporary bailout, known as the European Financial Stability Facility c (EFSF), enabling the Eurozone to provide assistance for sovereign economies that had found themselves in dire straits. 33
With a single currency, shared economic woes, and now an acceptable way to channel rescue funds, the differences between the Eurozone and the economy of a standard country are limited. The ideas
28 Sven Bll et al., Operation Self-Deceit: New Documents Shine Light on Euro Birth Defects, Spiegel, May 8, 2012, http://www.spiegel.de/international/europe/euro-struggles-can-be-traced-to-origins-of-common- currency-a-831842.html. 29 "The History of the European Union." 30 Ibid. a, b, c See Appendix II for an explanation of this term. 31 The Silent Bazooka, The Economist, February 4, 2012, http://www.economist.com/node/21545990. 32 Treaty on the Functioning of the European Union, 2009. 33 European Financial Stability Facility (EFSF) (European Union, n.d.), http://www.efsf.europa.eu/attachments/faq_en.pdf. National High School Model United Nations 2013 Council of the European Union
- 13 -
for a unified European treasury, and a European monetary fund of sorts had been proposed, but the Eurozone, while unified, still serves a conglomerate of independent countries. 34 As with any decision made by the EU, the preservation of national sovereignty is of the utmost importance as a principal European value. Thus, Eurozone members are not often willing to give up any more of their sovereign economic controls, as would occur with the establishment of a unified treasury, or a supranational banking authority.
In July 2011, a treaty was signed establishing the European Stability Mechanism d (ESM), which, once its February 2012 update is ratified, will be the successor to the EFSF. Even after the theoretical end of the debt crisis, the ESM will remain in place and will operate whenever a Eurozone member falls under a series of strict conditions regarding its economic health. Germany initiated the treaty and has been advocating for the suspension of voting rights as a component of intra-European economic sanctions. 35
In order to prevent a second debt crisis, policy known as the Euro Plus Pact was passed in March 2011, which created a system of automatic penalties for violations of financial rules and breaches of monetary stability. The Euro Plus Pact was built off the model of the Stability and Growth Pact (1997). The Stability and Growth Pact set out a series of requirements for member states to remain in the Eurozone. For example, they must keep their annual budget deficit less than or equal to 3% of GDP, and they must keep national debt lower than or approaching 60% of GDP. 36 Backed by the Germans, the Stability and Growth Pact hoped to restrict a Eurozone members potential to exert inflationary pressures on the European economy.
Since its inception, the Stability and Growth Pact has fallen victim to many faults in its application. For example, it has not been applied consistently in matters of big states versus small states. Germany and France, which both supported the policy in its formation, are opposed to the amount of control it exerts over member states. As a result, when their own financial shortcomings are fingered by the Stability and Growth Pacts definition of excessive deficits, they tend to ignore the violations, which ultimately led to the weakening of the Stability and Growth Pact in 2005. 37
The Euro Plus Pact enforces more consistently the original goals of the Stability and Growth Pact through the means of its five strategic goals: fostering competitiveness, fostering employment, contributing to the sustainability of public finances, reinforcing financial stability, and tax policy coordination. 38 Although the Euro Plus Pact specifically indicates that it leaves policy actions up to the individual countries, the coordination of sovereign policy is a clear objective of the Pact.
34 Ulrike Gurot, Do We Go That Far to Save Europe? (European Council on Foreign Relations, June 22, 2012), http://ecfr.eu/blog/entry/do_we_go_that_far_to_save_europe. d See Appendix II for an explanation of this term. 35 Sofia Ralitsa Kovacheva, Paris and Berlin: Political Sanctions, But Only in the Euro Area, EU Inside, July 28, 2010, http://www.euinside.eu/en/news/paris-and-berlin-for-political-sanctions-but-only-in-the-euro-area. 36 Glossary -- Economic and Financial Affairs (European Commission, n.d.), http://ec.europa.eu/economy_finance/focuson/inflation/glossary_en.htm. 37 Philipp Bagus, The Tragedy of the Euro, Second. (Auburn: Mises Institute, n.d.). pg. 38. 38 European Council 24/25 March 2011 Conclusions (Brussels: European Council, April 20, 2011), pg. 15, http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/120296.pdf. National High School Model United Nations 2013 Council of the European Union
- 14 -
One piece of further legislation that is yet to enter into force is the European Fiscal Compact, which has been signed by all of the EU members except for the Czech Republic and the United Kingdom. The Pact places caps on how much a government can spend and borrow, and violation of these terms results in automatic penalty. Through these caps, the European Fiscal Compact seeks to further stabilize the European economy by creating a fiscal union. A fiscal union, which involves taxes and spending, would further integrate European economies and help to fight the effects of the debt crisis, although it would reduce national sovereignty in terms of national economic controls. Some of the economic components that are regulated by this union are structural deficit, balanced budgets, and government debt. If ratified, the European Fiscal Compact is scheduled to enter into force on 1 January 2013. 39
Background of the European Debt Crisis
On 14 January 2010, Greece reported its 2009 deficit at 12.7%, well beyond the expected Eurozone limits of 3%. 40 Although this was only the first direct effect of a larger crisis, it foundations were laid through a series of events that took place starting in 2007.
Such a high deficit was the result of years of positive economic performance, which allowed the country to engage in borrowing while running an alarming deficit. When the global economy slowed, it became more difficult for the government to borrow money to pay for the deficit. The international community deemed the monetary union of the euro healthy, and thus it was assumed that all of the Eurozones members were as stable as its biggest member. Therefore, even in the third quarter of 2008, Greece and Germany experienced identical costs of borrowing. 41 This ease in borrowing allowed some of the weakest Eurozone countries to amass the highest amounts of debt. Even worse, much of this lent money came from the Eurozone powers with stronger economies, such as Germany and France, and they had to ensure that this debt was paid back in order to maintain their banks solvency e . One of the effects of having a unified currency is that the global perception is an amalgam of the individual performances of all of its composite countries. In a monetary union, a competitiveness gap is encouraged because the most-weakly performing country controls the currencys appreciation. With the euro, this gap occurred between the Eurozone countries whose competitiveness increased the most and the Eurozone countries whose competitiveness decreased the most, meaning that the poor competitiveness of countries such as Portugal and Ireland moderated the euros appreciation and enabled Germanys competitiveness to skyrocket. 42
39 Tony Connelly, The Fiscal Stability Treaty: What Happens Next?, RTE, January 31, 2012, http://www.rte.ie/blogs/european/2012/01/30/the-fiscal-stability-treaty-what-happens-next/. 40 Update of the Hellenic Stability and Growth Programme (Athens: Greek Ministry of Finance, January 2010), http://ec.europa.eu/economy_finance/economic_governance/sgp/pdf/20_scps/2009- 10/01_programme/el_2010-01-15_sp_en.pdf. 41 General Assessment of the Macroeconomic Situation (Organisation for Economic Co-operation and Development, 2011), http://www.oecd.org/dataoecd/47/23/49113623.pdf. e, f, g See Appendix II for an explanation of this term. 42 Floyd Norris, Euro Benefits Germany More Than Others in Zone, New York Times, April 22, 2011, http://www.nytimes.com/2011/04/23/business/global/23charts.html?_r=2&smid=tw- nytimesbusiness&seid=auto. National High School Model United Nations 2013 Council of the European Union
- 15 -
In order to control this mounting deficit, Greece enacted a series of austerity measures. f The European Commission supported Greeces program of austerity, which incited protests and strikes across the country. By April 2010, the Eurozone, with support from the ECB, agreed to a bailout that would rescue the Greek economy and prevent it from plaguing the rest of the Eurozone. On 27 April 2010, Standard and Poor downgraded Greeces debt ratings g to junk status. 43
Additional austerity measures followed, further escalating the protests and increasing international skepticism that the EU was equipped to deal with a widespread financial crisis. The ECB made it clear that it would accept Greek bonds as the countrys risk of default increased no matter their rating. Other countries began to feel the effects of economic instability, such as Spain, which received a downgraded bond rating, and Ireland, which requested a bailout in November 2010.
This crisis prompted experts to suggest a reprioritization of fiscal consolidation and securing the sustainability of public finances. 44 In achieving this aim, it is argued that countries should focus on efficiency in curtailing any excessive deficits, reduction of government debt to healthier, sustainable levels, and restructuring banks to separate the financial sector from the government, all in conjunction with pension and healthcare reforms. It has been asserted that effective implementation of the Europe 2020 strategy will result in long-term strengthening of the euro.
Another interpretation highlights the exaggerations of the financial markets, and suggests that credit ratings only encourage the volatility of the economy as they are relied on too heavily. 45 Even though this may act as a catalyst for crisis, the fundamental causes of instability still need to be addressed. In mitigating this threat in the future, some suggested that the establishment of a true financial union would make the relationships between banks and countries more consistent. Some experts believe that a financial union in the form of a pan-euro area deposit insurance fund and a pan-euro area bank resolution framework, supported by a single supervisory system with centralized decision- making, would save the global markets from further uncontrollable crisis. 46
CURRENT STATUS Globally, the euro plays a huge role in the financial markets and the day-to-day operations of the international economy. As a relatively new currency, the euro has left its mark, accounting for 19.55% of daily transactions, second only to the US dollar. 47 As an international reserve currency, an
43 Andreas Biewald, Money Market Contact Group (Commerzbank, May 18, 2010), http://www.ecb.eu/paym/groups/pdf/mmcg/Repo_market_developments_May2010.pdf?4626c06f84875457 c86af560036b3944. 44 Jos Manuel Gonzlez-Pramo, The European Union and the Lessons from the Crisis: The Way Forward (presented at the RCB Capital Markets Central Bank Conference Impacts and Implications of Integrated Global Markets, Madrid, May 12, 2011), http://www.ecb.eu/press/key/date/2011/html/sp110512_1.en.html. 45 Benot Cur, The Euro Area Sovereign Debt Market: Lessons Learned from the Crisis (presented at the 12th IMF Annual Forum on Managing Sovereign Risk and Public Debt: Managing Sovereign Debt: A Seismic Shift in Demand and Supply Dynamics?, Rio de Janeiro, June 28, 2012), http://www.ecb.eu/press/key/date/2012/html/sp120628_1.en.html. 46 Ibid. 47 Foreign Exchange and Derivatives Market Activity in April 2010. h, i, j See Appendix II for an explanation of this term. National High School Model United Nations 2013 Council of the European Union
- 16 -
international bond currency, a regional vehicle currency, h invoicing currency, i and an anchoring currency, j the Eurozone has to take into account that its decisions may have a lasting impact on the global financial market. In fact, approximately 20-25% of the physical euro banknotes in circulation are outside of the Eurozone. 48 It is important to note that even amidst the debt crisis, the euro was still seen as an attractive currency for central banks in their international reserves. This means that any further fluctuations in the value of the euro can greatly affect the global financial systems.
Considering the large number of international contracts that the Eurozone has forged with third- party actors, there are a number of great legal risks associated with every radical action such as abandoning the currency or removing a member from the Eurozone the group might take. For example, if a country exits the Eurozone, there is currently no procedure in place for how this countrys payment obligations would be redenominated, if at all. 49 Confusion exists as to whether or not a Eurozone breakup or a significant loss of confidence in the currency might trigger contract terminations. This problem stems from assurances given by the Eurozone that the process of switching from sovereign currencies to the euro would be irreversible. As a result, the Eurozone has absolutely no provisions established for exiting the currency.
In the global market, sovereign debt held in the euro is conventionally considered a riskless asset. If a shift occurs and this debt becomes classified as risky, this would reduce the capacity of saving for investors in the economy. Until the present situation, the Eurozones shortcomings have primarily affected only the Eurozone, but if the currencys ability to accept and manage risk were to falter, a fundamental constraint would be added to the global macroeconomic equilibrium. 50 Furthermore, international expansions of European banks in the past ten years have placed their claims in the international markets at approximately five times those of primarily domestic American banks, which expose the Eurozone to relatively more risk. Considered the cornerstone of the globalized financial system, European banks are affected by the re-evaluation of public debt securities k as risky. It was determined in 2012 that a substantial rise in aversion to risk for example, if European banks stay away from risky public debt securities as a result of their instability creates a serious threat for the European banks. As a result, the threat to the world economy is clear. 51 If the Eurozone cannot control its monetary assets and stabilize their activity, the entire globalized financial system will find itself with a significantly diminished ability to respond to any sort of intermediation, as the European banks would reduce the scope of their finances. This creates a downward spiral of losing macroeconomic controls as a result of a potential Eurozone crisis.
One of the most important factors in considering the future of the Eurozone involves maintaining the international perception of the EU and the currencys effects abroad. Africa, for example, conducts a plurality of its trade with the EU, and thus is worried over possible transmission of
48 The International Role of the Euro (European Central Bank, July 2011), http://www.ecb.int/pub/pdf/other/euro- international-role201107en.pdf. 49 International Contracts and the Eurozone Crisis, Securities and Derivatives Briefing (Ashurst, January 2012), http://www.ashurst.com/doc.aspx?id_Content=6505. 50 Anton Brender, Florence Pisani, and Emile Gagna, The Sovereign Debt Crisis - Placing a Curb on Growth (Brussels: Centre for European Policy Studies, 2012), http://www.ceps.be/ceps/download/6951. k See Appendix II for an explanation of this term. 51 Ibid. National High School Model United Nations 2013 Council of the European Union
- 17 -
economic crisis to its own economy. 52 The regions of Africa with the closest ties to Europe North, Central, and Francophone West Africa are expected to feel the greatest effect. Furthermore, much of Africa is worried about the CFA currency, which is pegged to the euro.
Even with all of this hardship, some still feel that the euro shows signs of hope and improvement. China, for example, announced in March 2012 that it would be diversify its portfolio in an effort to shift away from the dollar and more towards the euro. The EU has looked favorably upon Chinese help in its time of crisis, and China has responded positively. 53 Although Chinas unwavering interest in the euro definitely does not serve as an endorsement of the EUs strategy in handling the debt crisis, the EU-China relationship has become closer as a result of the financial crisis. China has encountered an economic obstacle a result of the crisis, as all global currencies are connected, but still the country feels as if the situation allows for an opportunity to help achieve its long-term economic goals.
Aside from the economic issues, Europes management of the crisis has world powers, such as the United States, questioning the sustainability of Europes international activities. According to one Congressional report, American leaders are concerned that the Eurozone crisis has turned the main focus of the EU inward. 54 Considering the EUs high level of foreign involvement, it seems unlikely that it will be able to maintain its level of foreign aid and participation on the global stage amidst its efforts to deal with the financial crisis. It has been noted that the EUs response to current events has not been as robust as in the past, and seems to be lacking in both strength and celerity. Furthermore, it seems as if one unfortunate consequence of the refocusing has been a further reduction in defense spending.
It is important to note that a bailout is by no means a panacea for countries in trouble. Even in Greece, a country that necessitated a bailout, there was significant opposition to pro-bailout policy. 55
First, the feeling that a bailout infringes upon a countrys sovereignty in solving its own problems is prevalent especially among the working class. In economics, this is known as a moral hazard because it creates a way out for a country that fails keep its own economy under control. In a way, a moral hazard encourages improper action because previous events have demonstrated that the country will be saved from trouble with little to no penalty. By bailing out Greece, the EU established a precedent that would be hard to break, ultimately leading to the issuance of several more bailouts for countries struggling to stay afloat.
Considering all of the euros effects on the world economy, the fundamental question that remains is whether or not the currency has satisfied its mandate or if it has evolved uncontrollably past its
52 The Impact of the European Debt Crisis on Africas Economy (Addis Ababa, Ethiopia: United Nations and African Union Commission, March 26, 2012), http://www.uneca.org/cfm/2012/documents/English/COM12-TheImpact-of-theEuropeanDebtCrisis- onAfricaEconomyA-BackgroundPaper.pdf. 53 Nicola Casarini, For China, the Euro Is A Safer Bet Than the Dollar (European Union Institute for Security Studies, June 2012), http://www.iss.europa.eu/uploads/media/china_final.pdf. 54 Rebecca M. Nelson et al., The Eurozone Crisis: Overview and Issues for Congress (Congressional Research Service, February 29, 2012), http://www.fas.org/sgp/crs/row/R42377.pdf. 55 Christian Fahrholz and Cezary Wojcik, The Bail-Out! Positive Political Economics of Greek-Type Crises in the EMU, CASE Network Studies and Analyses (Center for Social and Economic Research, October 2010), http://www.case-research.eu/en/node/55848. National High School Model United Nations 2013 Council of the European Union
- 18 -
original purpose. According to the Maastricht Treaty, the goal of establishing the Economic and Monetary Union was to implement the common policies promote throughout the Community a harmonious and balanced developed of economic activities, sustainable and non-inflationary growth respecting the environment, a high degree of convergence of economic performanceand economic and social cohesion and solidarity among Member States. 56 Furthermore, the Treaty refers to the monetary union as irreversible. 57
Though the mandate and the principal idea of the currency are generally clear, the question lies in the ambiguity and in evaluating the status of the euro today. To refer back to the bailout example, it is important to determine if this is considered common policy as per the euros mandate. In todays context, it seems that the gap in economic performance between Germany and the Eurozone no longer reflects a high degree of convergence of economic performance. 58
Furthermore, Spains unemployment does not reflect the Maastricht intention of a high level of employment[and] the raising of the standard of living. 59 Much of this mandate sounds internal relating to the functioning of individual Eurozone members and relationships between countries of the Eurozone; however, it seems as if the euros purpose today is largely external, with the internal controls being a means of achieving a greater international perception and collective strength relative to the outside world. The bailouts cannot be seen as a means of promoting harmonious and balanced economic activities, but instead they served to protect the euros international status on a global scale. 60
Another solution often suggested by Italy, Spain, and now French President Franois Hollande, is the introduction of Eurobonds, which would share the cost of borrowing among all Eurozone members. These bonds would benefit all Eurozone members at the same interest rate, as a collective bond would increase investor confidence in the loans repayment. There is a fierce opposition to this plan led by German Chancellor Angela Merkel, who argues that joint responsibility for debt violates both EU treaties and the German constitution. Countries with strong economies, such as Germany, would bear the brunt of these debt repayments, as they would have to repay the loans at the Eurozone average interest rate. Furthermore, this plan would create a moral hazard in that there would no longer be an incentive for Eurozone members to commit themselves to maintaining responsible finances.
Today, some argue for a return to sovereign currencies. If a country were to revert to sovereign currency, it could re-exercise control over its own monetary policy and encourage economic growth as a result of depreciation in the currencys exchange rate depreciation causes competitiveness to increase as more goods denominated in this currency can be purchased, leading to an increase in exports. There are three ways that solvency can be restored to an economy: reducing borrowing, lowering the interest rate on debt, and boosting economic growth. 61 Up until this point, the primary route that has been pursued is the reduction of borrowing. Although it has helped in controlling expenses, it has not done enough or been conducted forcefully enough to stabilize the situation
56 Treaty Establishing the European Community, Part I: Principles. 57 Ibid. Protocol on the Transition to the Third Stage of Economic and Monetary Union 58 Ibid, Part I: Principles. 59 Ibid. 60 Ibid. 61 How to Strengthen the European Monetary Union. National High School Model United Nations 2013 Council of the European Union
- 19 -
and restore solvency. The option of lowering the interest rate on debt sounds ideal, but it requires the highest degree of international credibility in the Eurozones economic policy. Bond markets would necessitate guarantees that Eurozone economies would follow through with fiscal constraint, and that they would succeed in limiting inflation. Since solvency is based off of the debt-to-GDP ratio, the third option involves boosting the denominator as opposed to shrinking the numerator, which would be made possible through a return to sovereign currency.
With the idea of a reversion to national currency comes the myriad of problems that would arise as a result. Although exports would undoubtedly rise, obtaining imports would become all the more difficult. Just because others would be able to purchase more of this countrys goods at low prices as a result of the exchange rate, this does not mean that this country will immediately be able to important vital goods and supplies. This would lead to further devaluation being necessary, and thus a never-ending spiral of currency devaluation and inflation, unless this countrys export sector was strong enough that it could re-stabilize its currency. 62 As a result, bank runs would occur, and then all imported necessities would be very quickly purchased and then not restocked. A non-existent financial sector and a sickly exchange of goods and services are the epitome of economic failure. There lies a huge risk in a reversion to a sovereign currency, with unfathomable spillover effects in addition to national chaos. BLOC ANALYSIS Germany
German Chancellor Angela Merkel is the leader in addressing the European debt crisis, imposing a strict vision of European austerity on many of the economically-stricken Eurozone members. The German economy is the most productive, and it has grown throughout the course of the European debt crisis in terms of competitiveness. 63 Considering Germanys rich history, the concept of austerity and national responsibility makes sense to Merkel, and the countrys economic dominance places it in a position to make controversial judgments on what other Eurozone members should do to control their finances. Recently, Merkel has suggested the idea of a European political union to further unite the countries and strengthen the currency. 64 A long-term solution, they have argued, is the only way to restore international confidence in the region. The idea of European federalism would involve creating a European Treasury invested with the authority to override national governments a controversial idea that values economic stability over national sovereignty.
62 Thanos Skouras, Greece: Why Not Go Back to the Drachma?, European Business Review, February 13, 2012, http://www.europeanbusinessreview.eu/page.asp?pid=970. 63 Ezra Klein and Sarah Kliff, The European Debt Crisis in Eight Graphs, The Washington Post, December 1, 2011, http://www.washingtonpost.com/blogs/ezra-klein/post/the-european-debt-crisis-in-eight- graphs/2011/12/01/gIQAsmR5GO_blog.html. 64 Anthony Faiola and Michael Birnbaum, Germany Offers Vision of Federalism for the European Union, The Washington Post, June 27, 2012, http://www.washingtonpost.com/world/europe/germany-offers-vision-of- a-more-perfect-european-union/2012/06/27/gJQAILtk6V_story.html. National High School Model United Nations 2013 Council of the European Union
- 20 -
France
Although traditionally associated with Germany as a Eurozone member whose economy is relatively stable, France recently diverged from the German opinion at an EU summit over the issue of eurobonds. French President Franois Hollande has begun to clash with Merkel, arguing that eurobonds the collective pooling of Eurozone debt liability must remain on the table in order to save the monetary union. Hollande has also spoken in favor of allowing the ESM to draw funds from the ECB, an idea which is strongly opposed by Germany. 65 Hollande has advocated in favor of European intervention and a group effort in restoring the economies of struggling Eurozone members, although he will be strict in ensuring that the aided countries meet their targets.
Eurozone Members with Weak Economies
Many Eurozone members facing difficulties want to argue two main points: 1) that they need assistance, and 2) that they are willing to work to gain this assistance, ultimately paying back the EU for its assistance in the long run. These countries believe that a strengthened currency union is best for the European economy as a whole. While austerity measures and fiscal constraint are necessary evils when possible financial assistance is involved, it is important to keep in mind that these countries still want to act with the best interests of their citizens who do not want to be subjected to draconian austerity measures in mind.
The United Kingdom (UK) and Non-Eurozone Members
While the UK remains in complete control of its monetary policy, it and many other non-Eurozone members are still greatly affected by the Eurozone crisis. The UK has experienced significant budget cuts resulting in a series of protests back in December 2011 and a slump in its manufacturing sector. 66,67 While these countries very much want to support the Eurozone and encourage cooperation, it is also the case that they are by virtue of not being in the Eurozone opposed to further EU economic integration to save the Eurozone from crisis. COMMITTEE MISSION As is consistent with the stated purpose of the Council of the European Union, the mission of this committee is to produce a document coordinating the individual national policies of each of the EUs members in order to achieve the overarching goal of economic recovery and stability. Composed of the highest-level financial advisors representing each member state of the EU, this committee serves the specific, targeted purpose of solving the debt crisis from the executive perspective.
65 Ira Traynor and Patrick Wintour, Eurozone Crisis: Germany and France Clash over Eurobonds at Summit, The Guardian, May 23, 2012, http://www.guardian.co.uk/business/2012/may/23/eurozone-crisis-france- germany-divide. 66 UK Employees Go on Strike to Protest Austerity Measures, The Economic Times (Birmingham, December 1, 2011), http://economictimes.indiatimes.com/news/international-business/uk-employees-go-on-strike-to- protest-austerity-measures/articleshow/10937960.cms. 67 Jonathan Cable, UK Manufacturing Contracts Again, Stimulus to Come, Reuters (July 2, 2012), http://in.reuters.com/article/2012/07/02/pmi-manufacturing-britain-idINL6E8I25M520120702. National High School Model United Nations 2013 Council of the European Union
- 21 -
It is important to conceptualize the fundamental difference within this committee of the macro-scale versus the micro-scale, and the relationship between the two. The Council of the European Union seeks to publish one unified document that serves two primary purposes: (1) establishing a clear, principal objective that the committee resolves to accomplish through, (2) the specific individual actions of each member state that will result in the realization of the committee-wide goal.
The Council of the European Union possesses a variety of instruments in its toolbox that it may call upon to help solve the crisis. Specifically, this committee is the only one that can specify both micro- and macro- policies in its means of addressing the topic. Delegates will have to command an understanding of their countries individual policies after all, delegates represent the top-level financial advisor in each member state while keeping an eye on both the country-specific implementation and the nature of the overall goal.
National High School Model United Nations 2013 Council of the European Union
- 22 -
TOPIC B: EUROPE 2020: SPECIAL LEGISLATIVE SESSION ON SOCIAL POLICY INTRODUCTION For an organization as large and influential as the European Union (EU), coming to a consensus on a set of concrete goals has major advantages: increased international confidence, observable progress, and increased efficiency. Of course, all of these advantages rest upon the fundamental idea that this series of objectives will be accomplished promptly. As a result, the issuance of a comprehensive plan of action has become equivalent to guaranteeing the world a set of promises. In todays context, if these goals are not realized as affirmed, the reaction from both the citizenry affected and the international community results in an overall lack of confidence and general disapproval.
With this in mind, the European Union has recently moved to create a ten-year plan that outlines a course of action for forging progress over the next decade. Even amidst international skepticism, the successful achievement of goals clearly set forth in a ten-year plan can restore confidence and increase investment, revitalizing a region plagued by the current financial crisis. At the same time, even before a ten-year plan becomes active, the international community judges the objectives set forth in the document; oftentimes, the comprehensibility of the plan influences international perspective and confidence before any of the strategy has been enacted.
For the EU, moving towards a unified social policy is the logical next step to actualize the organizations purpose. Following a customs union and a single currency, policy agreement on other terms aligns with the mission of the EU. While the EU may primarily be seen as an economic union, changes to social and political behavior are a natural evolution of policy assimilation. Even back with the writing of the Maastricht Treaty, it was established that the coordination of social policy represented a worthwhile endeavor for the EU, as it was an integral part of the acquis communautaire. 68 During the Maastricht summit, representatives tried but failed to come to a consensus on how the unification of social policy should evolve in the future. 69
Currently, countries wishing to become EU member states must demonstrate adherence to the principles of human rights established in the Social Chapter of the Treaty of Amsterdam. Seeing this historical consideration of social rights, it is of the utmost importance that the EU continues to strongly pursue the amelioration of social policy as the organization progresses into the future.
68 The Maastricht Treaty -- Protocols (Maastricht, February 7, 1992: 36), http://www.eurotreaties.com/maastrichtprotocols.pdf. 69 Agreement on Social Policy, Eurofound, January 13, 2011, http://www.eurofound.europa.eu/areas/industrialrelations/dictionary/definitions/agreementonsocialpolicy.ht m. National High School Model United Nations 2013 Council of the European Union
- 23 -
HISTORY AND DESCRIPTION OF THE ISSUE The Lisbon Strategy
In 2000, the European Council (not to be confused with the Council of the European Union) met in Lisbon, Portugal to delineate clear-cut and concise goals for Europe to achieve by the year 2010. With the objective of becom[ing] the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion, the Lisbon Strategy sought to prepare the EU for the twenty-first century. 70 These heads of state strived specifically to strengthen employment, promote economic reform, and further social cohesion as they entered a decade fraught with difficulties resulting from globalization and a knowledge-driven economy. 71 The goal of this ten-year plan, in addition to bolstering economic and social progress, was to update the European economic model in response to changes in technology and information. With this strategy, the European Council believed that the EU could remain a primary competitor on the global stage. 72, 73
Some of the primary goals of the Lisbon Strategy included raising the employment rate from 61% to 70% by 2010, and increasing the amount of female employment from 51% to 60%. The intended consequence of these goals was to reinforce the sustainability of social protection systems. 74 With the Lisbon Strategy, heads of state believed by increasing employment, they would enhance the durability of social programs already in place. Although the Lisbon Strategy predominantly addressed economic matters, the vision of a socially sustainable Europe was never far behind.
The Lisbon Strategy touched upon both micro- and macro- strategies in trying to increase European competitiveness. Micro- strategies constitute a means of achieving a grander goal; for example, the establishment of individual agencies, such as the Joint Technology Initiatives, aided the achievement of the macro- strategy to expand research and development. In fact, they believed that many of the micro- techniques could be a tool for strengthening European integration, a macro- objective. If one collective idea the Lisbon Strategy could act as a panacea and cure the problems of living conditions such as unemployment, then the EU would have a profound impetus to grow more united and integrate further. Even though the underlying thought behind this ten-year plan was to improve the conditions of life in the EU, the idea of further European integration and a shared identity remained a central focus.
70 Lisbon European Council 23 and 24 March 2000 Presidency Conclusions (European Parliament, March 23, 2000), http://www.europarl.europa.eu/summits/lis1_en.htm. 71 Briefing Note for the Meeting of the EMPL Committee 5 October 2009 Regarding the Exchange of Views on the Lisbon Strategy and the EU Cooperation in the Field of Social Inclusion (European Parliament, October 5, 2009), http://www.europarl.europa.eu/meetdocs/2009_2014/documents/empl/dv/lisbonstrategybn_/lisbonstrategyb n_en.pdf. 72 Pier Carlo Padoan and Fabio Mariani, Growth and Finance, European Integration and the Lisbon Strategy, Journal of Common Market Studies 44, no. 1 (2006): 77112. 73 David Natali, The Lisbon Strategy, Europe 2020 and the Crisis in Between (European Social Observatory, May 31, 2010), http://www.ose.be/files/publication/2010/Natali_2010_Lisbon%20StrategyEU2020&Crisis.pdf. 74 Briefing Note for the Meeting of the EMPL Committee 5 October 2009 Regarding the Exchange of Views on the Lisbon Strategy and the EU Cooperation in the Field of Social Inclusion. National High School Model United Nations 2013 Council of the European Union
- 24 -
Further micro- goals of the Lisbon Strategy included: establishing a European area of research and innovation, alleviating tax pressure on the unskilled and low-paid in conjunction with an improvement of employment and training incentives in terms of taxes and other benefits, halving the number of young people who have not pursued upper-secondary education, and developing a common European format for curricula vitae. 75
One of the most instrumental practices spawned as a result of the attempted implementation of the Lisbon Strategy was the use of soft law. Soft law are non-legislative means of achieving a common goal, such as the sovereign distribution of pamphlets and the issuance of guidance to a states citizenry or relevant industries. This permits each country to institute its own program to communicate the goals of the overarching project. Soft law is often cited as a practical means to achieve country-by-country targets as part of a grander initiative. 76
As a result, the global community developed the open method of coordination (OMC) system of governance. OMC is the way by which the EU accomplishes joint-goals through voluntary participation and cooperation. Thus, this system relies primarily on soft law as a way of carrying out its overall objective, with states sharing their best practices of implementation. Countries are encouraged to discuss their trials and errors together in order to maximize success; therefore, OMC depends on each individual country's willing participation and best effort. This idea has since been used by the EU in many forms, most notably in its application to continued economic and monetary integration.
Although the Lisbon Strategy was created in 2001, by 2004 the mass media and several major think tanks and institutions already considered the initiative a failure. 77 Midway through the plans implementation, the female employment of the EU had grown less than three percentage points, from 53.7% to 56.3% far from the target set by the Lisbon Strategy. During the same time period, male employment remained entirely constant despite the expansion of the overall economy. 78
The Lisbon Strategys primary goal to make Europe the most competitive and dynamic knowledge-based economy in the world 79 was an ambiguous target. In fact, such a claim depended entirely on the growth and progress of the rest of the world. Chinas and the United States profound growth during this period a GDP increase from 2000-2010 of 394.84% for China and 45.95% for the United States 80 rendered this aim unsustainable, and Europe had to find other means to keep up with the two major economic superpowers.
Of the Lisbon Strategys objectives, the most fundamental were not met. The overall employment target 70% up from 61% was not met by 2010, and this represented arguably the most integral
75 Lisbon European Council 23 and 24 March 2000 Presidency Conclusions. 76 David M. Trubek and Louise G. Trubek, The Open Method of Coordination and the Debate over Hard and Soft Law, 2004, http://eucenter.wisc.edu/OMC/Papers/EUC/JZPP/trubekTrubek.pdf. 77 Tania Zgajewski and Kalila Hajjar, The Lisbon Strategy: Which Failure? Whose Failure? And Why? (French Community of Belgium, March 22, 2005), http://aei.pitt.edu/9308/1/Lisbon-Strategy-TZKH.pdf. 78 Employment Rates for Selected Population Groups, 2000-2010 (Eurostat), http://epp.eurostat.ec.europa.eu/statistics_explained/images/7/7e/Employment_rates_for_selected_populati on_groups%2C_2000-2010_%28%25%29.png. 79 Lisbon European Council 23 and 24 March 2000 Presidency Conclusions. 80 GDP (Current US$) (The World Bank), http://data.worldbank.org/indicator/NY.GDP.MKTP.CD. National High School Model United Nations 2013 Council of the European Union
- 25 -
component of the ten-year plan. This figure grew to above 65% in 2007-2008, but progress was quickly lost as a result of the financial crisis, a variable the Lisbon Strategy did not foresee. 81
Research and development (R&D), one of the structural indicators utilized by the plan, ended up nowhere near the ambitious 3% of GDP for many member states. The only states achieving this aim were Denmark, Germany, France, Austria, Slovenia, Finland, and Sweden. 82 Furthermore, studies have highlighted that, when evaluating the failures of the Lisbon Strategy, there is a tendency to focus exclusively on economic goals, when in addition Europe failed to reach a myriad of social and environmental targets. 83, 84
Not willing to resign to failure, EU leaders met in 2005 in an attempt to restore confidence in the Lisbon Strategy and realize some of its important goals. Interestingly enough, none of the major elements of the Lisbon Strategy were modified as a result of this conference. In fact, the only component for which change was deemed necessary was the general lack of motivation and will to work to accomplish the goals of the Lisbon Strategy. 85 The difficulties adopting the Lisbon Strategy stemmed from member states failing to coordinate their actions in order to promote the overarching goal.
One of the primary lessons learned of this failed attempt was to increase the coherence and consistency between the various national policies to reach a higher level of fulfillment of the objectives. 86 Furthermore, the summit acknowledged that social and environmental goals were given minimal priority and many of the details remained unspecified. The social problems are analyzed nearly exclusively from the point of view of employment. All other social problems are not evoked. The environmental problems are mentioned in one paragraph. 87 This realization served as one of the primary lessons learned from the Lisbon Strategy: social policy is a critical component in aligning all other national targets and increasing the cohesion of the EU as a whole.
Europe 2020
In March 2010, the European Commission released a document known as Europe 2020, a strategy proposal that aimed towards smart, sustainable, and inclusive growth for the EU. 88 In accomplishing this aim, Europe 2020 hopes to encourage a higher degree of policy coordination
81 Employment Rate for Age Group 15-64, 2000-2010 (Eurostat), http://epp.eurostat.ec.europa.eu/statistics_explained/images/b/b0/Employment_rate%2C_age_group_15- 64%2C_2000-2010_%28%25%29.png. 82 Gross Domestic Expenditure on R&D, 2000-2010 (Eurostat), http://epp.eurostat.ec.europa.eu/statistics_explained/images/2/2a/Gross_domestic_expenditure_on_R%26D %2C_2000-2010_%28%25_share_of_GDP%29.png. 83 Zgajewski and Hajjar, The Lisbon Strategy: Which Failure? Whose Failure? And Why?. 84 Joint Report on Social Inclusion 2004 (European Commission, May 2004), http://www.eapn.ie/eapn/wp- content/uploads/2009/11/joint-report-on-social-protection-2004.pdf. 85 Facing the Challenge -- the Lisbon Strategy for Growth and Employment (High Level Group, November 2004), http://ec.europa.eu/research/evaluations/pdf/archive/fp6-evidence- base/evaluation_studies_and_reports/evaluation_studies_and_reports_2004/the_lisbon_strategy_for_growt h_and_employment__report_from_the_high_level_group.pdf. 86 Zgajewski and Hajjar, The Lisbon Strategy: Which Failure? Whose Failure? And Why?. 87 Ibid. 88 Commission Unveils 10-Year Economic Strategy for Europe, European Commission -- European Union, March 3, 2010, http://ec.europa.eu/news/economy/100303_en.htm. National High School Model United Nations 2013 Council of the European Union
- 26 -
between the member states and the EU itself. Arguably, the ten-year plan was designed primarily as a means of escape from the financial crisis that began in 2008; however, recent economic events have rendered Europe 2020 almost helpless against what is today a sovereign debt crisis. 89 With that in mind, it is of the utmost importance that the Europe 2020 strategy be saved from possible failure, taking into account the rubble of the Lisbon Strategy upon which it is constructed.
Learning from the mistakes of Lisbon, Europe 2020 does not rely on soft law as the sole means of implementation. In fact, by tying many of the economic chapters of Europe 2020 to already-existing economic reform programs, the EU has a means of enforcing several of the ten-year plans goals as opposed to the use of soft law. These coordinated programs have the power to reinforce sanctions, apply sanctions automatically, and impose enforcement mechanisms if states fail to give a strong effort. This system of macroeconomic surveillance, as it is called, has to do with several advances of the European Council, which instituted a task force on economic governance in March 2010 as an initiative of Herman Van Rompuy. 90 Similar action regarding the unification of national reform programs enhanced this concept, as did broader EU economic goals on behalf of the European Central Bank, the European Stability Mechanism, and the adoption of policy relating to legislative governance.
By smart, sustainable, and inclusive, 91 Europe 2020 refers to its ideal of a European social market economy by the year 2020. Europe 2020 is structured in a way that incorporates these ideals, five headline targets, and seven flagship initiatives. As a result, it hopes to achieve increased employment, productivity, and social cohesion, which should, in turn, boost the role and authority of the EU in a global context. 92
Smart growth means that this growth is based primarily on knowledge and innovation using European ideas to boost the expansion of the European marketplace. Sustainable growth involves the fostering of an economy that is efficient in the way that it uses resources, ideally increasing competition while being ecological at the same time. Inclusive is the newest component of these goals, and it means that economic growth would produce high employment levels in order to ensure social and territorial cohesion. 93
In addition to this idea of a social market economy, Europe 2020 has laid out five targets that will act as benchmarks in order to measure the EUs progress throughout the decade. These targets are: employment, education, social inclusion, R&D, and climate and energy. Specifically, the EU has denominated an overall target in each of those subfields, and then exact targets for each individual member state.
89 Annette Bongardt and Francisco Torres, Europe 2020 -- A Promising Strategy?, Intereconomics 2010: 3 (Centre for European Policy Studies, 2010), http://www.ceps.eu/system/files/article/2010/06/136-170- Forum_IE_%2003_%202010.pdf. 90 Task Force on Economic Governance, European Council, http://www.european-council.europa.eu/the- president/taskforce?lang=en. 91 Commission Unveils 10-Year Economic Strategy for Europe. 92 Bongardt and Torres, Europe 2020 -- A Promising Strategy?. 93 Ibid. National High School Model United Nations 2013 Council of the European Union
- 27 -
Europe 2020 Country-by-Country Goals for a Social Market Economy (Selected Values) 94
Member State a Employment Rate in % R&D in % of GDP Renewable Energy Early School Leaving in % Tertiary Education in % Austria 77-78% 3.76% 34% 9.5% 38% Belgium 73.2% 3% 13% 9.5% 47% Bulgaria 76% 1.5% 16% 11% 36% Cyprus 75-77% 0.5% 13% 10% 46% Czech Republic 75% 1% 13% 5.5% 32% Germany 77% 3% 18% <10% 42% Denmark 80% 3% 30% <10% !40% Estonia 76% 3% 25% 9.5% 40% Greece 70% 18% 9.7% 32% Spain 74% 3% 20% 15% 44% Finland 78% 4% 38% 8% 42% France 75% 3% 23% 9.5% 50% Hungary 75% 1.8% 14.65% 10% 30.3% Ireland 69-71% 2% 16% 8% 60% Italy 67-69% 1.53% 17% 15-16% 26-27% Lithuania 72.8% 1.9% 23% <9% 40% Luxembourg 73% 2.3-2.6% 11% <10% 40% Latvia 73% 1.5% 40% 13.4% 34-36% Malta 62.9% 0.67% 10% 29% 33% Netherlands 80% 2.5% 14% <8% >40% Poland 71% 1.7% 15.48% 4.5% 45% Portugal 75% 2.7-3.3% 31% 10% 40% Romania 70% 2% 24% 11.3% 26.7% Sweden >80% 4% 49% <10% 40-45% Slovenia 75% 3% 25% 5% 40% Slovakia 72% 1% 14% 6% 40% United Kingdom 15%
94 Europe 2020 Targets (European Commission, April 2011), http://ec.europa.eu/europe2020/pdf/overview_of_member_states_national_targets.pdf. National High School Model United Nations 2013 Council of the European Union
- 28 -
Europe 2020 !75% 3% !20% 10% !40%
a : Member states are organized according to their EU-modified ISO codes, which have been transcribed for ease of reading.
In terms of these headline targets, Europe 2020 has set a series of overarching EU goals. In terms of employment, it seeks to raise the employment rate of the population aged 20-64 from the current 69% to at least 75%. With regard to technology, it looks to achieve the target of investing 3% of GDP in R&D in particular by improving the conditions for R&D investment by the private sector, and develop a new indicator to track innovation. As for the environment, the goal is to reduce greenhouse gas emissions by at least 20% compared to 1990 levels or by 30% if the conditions are right, increase the share of renewable energy in our final energy consumption to 20%, and achieve a 20% increase in energy efficiency. For education, it strives to reduce the share of early school leavers to 10% from the current 15% and increase the share of the population aged 30-34 having completed tertiary education from 31% to at least 40%. As an overall goal, Europe 2020 looks to reduce the number of Europeans living below national poverty lines by 25%, lifting 20 million people out of poverty. 95
Under the category of smart, sustainable, and inclusive growth, Europe 2020 has specified a series of flagship initiatives, which act as new engines to boost growth and jobs. 96 In terms of smart growth, the EU has defined a series of programs Digital Agenda for Europe, an Innovation Union, and Youth on the Move occupied with the micro- elements of achieving this aim. To promote inclusive growth, they have set out an agenda for new skills and jobs along with a European platform against poverty. Each initiative has a specific series of goals and targets, and they serve as a general explanation of Europe 2020s broader goals. Together, these seven flagship initiatives will be an exercise in micro- and macro- coordination all seeking the greater overarching goals laid out by the growth strategy.
Following the Lisbon Strategy, Europe 2020 was received with mostly positive reactions, as it seemed to compensate for many of the shortcomings in the previous decades strategy; however, it failed to produce overwhelming confidence that the job could be accomplished. The director of the Centre for European Policy Studies said, For me this is like a broken recordits all words and no substance. The idea that the EU can fundamentally change the growth prospects of its member countries, via the EU, always struck me as being fanciful. 97 It has been readily accepted that politicians have no motivation to achieve these far-fetched goals unless it betters their own political will, which would require the EU to bear a lot more weight in domestic politics. Even the President of the European Commission Jose Manuel Barrosso has admitted that, There are 27 member states and if they dont want to play ball nothing will happen. 98
95 Annex 1 -- Europe 2020: An Overview (European Commission), http://www.eudirect.ro/utile/annex1.pdf. 96 Flagship Initiatives, European Commission -- Europe 2020, April 12, 2012, http://ec.europa.eu/europe2020/reaching-the-goals/flagship-initiatives/index_en.htm. 97 Andrew Willis, Lukewarm Reaction to Europe 2020 Plan (Business Week/EU Observer, March 5, 2010), http://www.businessweek.com/globalbiz/content/mar2010/gb2010035_390728.htm. 98 Ibid. National High School Model United Nations 2013 Council of the European Union
- 29 -
Considering past difficulties involved with implementation, Europe 2020 has gone to great lengths to delegate its responsibilities. In addition, the ideal exists that an increased dialogue between national, regional, and local authorities will strengthen relations and bring the issues closer to the people whose lives they affect. 99 The European Union has set up a Committee of the Regions that will work to organize and put into action regional and local authorities. With this aim in mind, the committee has established the Europe 2020 Monitoring Platform, which is a conglomerate of regions and cities that communicates regularly in order to share common implementation practices for Europe 2020. Furthermore, an online network called RegioNetwork 2020 created by the European Commission operates as a tool to coordinate the micro- and macro- goals of the ten- year plan.
One of the primary goals in creating such an expansive network for Europe 2020 is establishing a sense of ownership for the need to reform. 100 By including businesses, non-governmental organizations (NGOs), trade unions, and individual citizens, Europe 2020 has tried to expand the responsibility beyond national governments. Furthermore, the European Economic and Social Committee which serves as a link between Europe and civil society has launched a new program called the Europe 2020 Steering Committee. This committee seeks to coordinate with the various components of civil society in order to realize the goals of Europe 2020. 101 In addition to connecting Europes efforts with those of its constituents, the Steering Committee also hopes to create joint initiatives between national governments so that the end goals of Europe 2020 can come within reach.
Even with all of the hard work that seems to have gone into Europe 2020, one thing remains undeniably clear: the lack of a social agenda. Europe 2020 is framed in the context of the European financial crisis, and no priority is given to any social goal that is not seen through the lens of the economy. For example, many view employment targets as a means of accomplishing a social goal; however, this target is entirely based on the economy and remains without further explanation. 102
One French member of the European Parliament commented that, [Europe 2020 pays] nothing more than minimal lip service to the fight against poverty and social exclusion. 103
History of European Social Policy
At the start of the twenty-first century, the EU realized it needed to formally establish a set of universal human rights for all of its citizens. 104 The prospect of integrating states originating from
99 Regional and Local Authorities, European Commission -- Europe 2020, July 16, 2012, http://ec.europa.eu/europe2020/who-does-what/regional-and-local-authorities/index_en.htm. 100 Civil Society, European Commission -- Europe 2020, April 11, 2012, http://ec.europa.eu/europe2020/who- does-what/stakeholders/index_en.htm. 101 Europe 2020 -- Steering Committee, European Economic and Social Committee, 2010, http://www.eesc.europa.eu/?i=portal.en.europe-2020. 102 Stefan Lcking, Debate About Social Dimension of Europe 2020 Strategy, European Industrial Relations Observatory, May 24, 2010, http://www.eurofound.europa.eu/eiro/2010/03/articles/eu1003039i.htm. 103 Social Europe Still Missing in EU 2020 Draft, Say Activists, EurActiv -- EU Priorities 2020, June 4, 2010, http://www.euractiv.com/priorities/social-europe-missing-eu-2020-dr-news-286611. 104 Fundamental Social Rights in Europe (European Parliament, November 1999), http://www.europarl.europa.eu/workingpapers/soci/pdf/104_en.pdf. National High School Model United Nations 2013 Council of the European Union
- 30 -
the breakup of the Soviet Union and Yugoslavia necessitated a series of common liberties for the EU. With that aim in mind, the European Council met in Cologne in June 1999 in order to create a document now known as the Charter of Fundamental Rights of the European Union.
It is, however, important to note that not all member states of the EU recognize social rights like they do civil rights and liberties as a part of their constitutions. Social rights deal with the social existence of each person, meaning the rights to which the individual citizen is entitled, which he can exercise only in his relationship with other human beings as a member of a group and which can be made effective only if the State acts to safeguard the individuals environment. 105 The debate surrounding the Charter involved the level of urgency that would be accorded to social rights and their protection, primarily regarding whether or not social rights merit constitutional status for the EU as a whole.
In 1961, the EU took the absolute first steps towards social protection with the creation of the European Social Charter (ESC). As a Council of Europe treaty, the ESC is not signed by all members of the EU, as the EU and the Council of Europe are entirely separate entities. The Revised ESC entered into force in 1999, which updated the document. As a requirement, all signatories adopt policies favoring positive work, living, and educational environments while at the same time committing to social security. Although much of the protocol set forth by the ESC has to do more with individual liberties than social rights, the document still represents a profound step along the path to European social integration and protection and should serve as a starting point for formal EU legislation.
Within the EU in the context of social policy, there exists a grand diversity among member states both in terms of their modern-day status and in their histories. Considering the recent transition from communism to democracy that many Central and Eastern European countries have made, their constitutions frequently reflect the western model of social rights. It is important to note, however, that very often social rights guaranteed in a constitution are left to be defined, enforced, and protected by individual pieces of legislation. Constitutional terminology tends to be vague, which fails to further the European goal of social inclusion. Although each country is different in its individual application, the primary concern remains that many countries in this region could easily revert to the social practices of old. With that in mind, it is a goal of the EU to establish a unified protection of social rights that covers all of its members regardless of their past histories.
All EU action aside, individual countries remain primarily responsible for implementing and enforcing this protocol within their own borders. The past histories of many of these formerly communist countries are telling public opinion on many controversial social topics can play a big factor in the implementation of legislation. Political leaders in Central and Eastern Europe do not follow any sort of a status quo when making decisions about modernization; as a result, they prioritize economic reform before considering the European standard of social reform. 106 Many of
105 Ibid. 106 Alfio Cerami, Europeanisation and Social Policy in Central and Eastern Europe, in Europanisation. DOuest En Est. Coll. Logiques Politiques (Paris: LHarmattan): 137168, http://www.policy- evaluation.org/cerami/docs/Cerami_Chapter_Bafoil.pdf. National High School Model United Nations 2013 Council of the European Union
- 31 -
these countries prefer to reform the current system rather than creating new policy from scratch, however oftentimes these reforms are shuffled between government ministries. 107
The system of social policy is often referred to as being two-tiered, which means that there is a tier of EU-wide policy generalized as a one size fit all model for the EU, and then there is a second tier of differentiated national models that must be specifically implemented in each country. Any standalone country-specific measure must be compromised with the EU-wide policy, which results in many models of hybrid social policy and difficulty in delineating one single European model. 108
CURRENT STATUS Upon the release of Europe 2020, skepticism surfaced surrounding whether or not it represented an achievable initiative. Given the dependence on national-level policy decisions, the feasibility of whether the EU can realize these goals has been the source of much debate. Now, especially following the failure of the Lisbon Strategy, it is especially important that the EU accomplish its goals in order to restore the international communitys confidence in Europe.
Within Europe 2020s expansive definition of each individual member states macroeconomic performance remains room to assert social improvement as a priority. Traditionally, when economic improvement measures are instituted, the supranational organization has taken control of economic restrictions while the individual country has been left to achieve a specific goal via manipulation of social policy and labor governance. 109 For Europe 2020, these comfortable roles should dissolve as implementation becomes more coordinated and close-knit amongst all key players.
One area for potential improvement is the welfare state. The current models were established long a go, and the world has since changed greatly and will continue to evolve socially and confront global competition. Different regions of Europe have different welfare models, which introduces the question of whether or not the EU should introduce a unified or at least balance welfare model for its member states which are all pursuing the same goals. Although the financial crisis has highlighted the need for an increase in employment, it is necessary that the EU see a need for social change external to the economy. It is estimated that the unemployment rate of migrants to the EU is double that of EU citizens, which challenges the modern model of the welfare state. This is a major problem, because migrants constitute a noteworthy portion of the population and thus should be integrated into the EU as smoothly as possible. This heightened level of unemployment leads to deficiencies in other areas of social policy that only exacerbate the problem of migrant acceptance into the community. Efforts should be taken not only to integrate migrants currently in the EU, but to enable their children to participate in society as well.
107 Ibid. 108 Alfio Cerami, Social Policy in Central and Eastern Europe -- The Emergence of a New European Model of Solidarity? (Universitt Erfurt, March 14, 2005), http://www.db- thueringen.de/servlets/DerivateServlet/Derivate-4495/cerami.pdf. 109 Frank Vandenbroucke, Anton Hemerijck, and Bruno Palier, The EU Needs a Social Investment Pact (European Social Observatory, May 2011), http://www.ose.be/files/OpinionPaper5_Vandenbroucke-Hemerijk- Palier_2011.pdf. National High School Model United Nations 2013 Council of the European Union
- 32 -
Furthermore on the topic of welfare, the EU faces the problem a changing demographic very similar to the USs post-war baby boomer period of high birth rates. As a result, an aging population with an increasing density of senior citizens places an onerous strain on the European welfare system. In fact, For EU-25, it is projected that age-related public spending will rise by 3-4 GDP points between 2004 and 2050, representing an increase in 10% of public spending. 110
Some proposals have suggested the re-appropriation of early childhood education and care so that it does not qualify as public expenditure but rather public investment. 111 Furthermore, some have expressed a desire that education become further linked with training for jobs, in order to help mitigate high dropout rates and skill deficits.
Even considering the targets and initiatives that have been included in Europe 2020, many have raised their voices to emphasize that the ten-year plan simply does not go far enough. The European Womens Lobby, for example, is calling for equality targets to be set as a key component of Europe 2020 so that the gender pay gap can be closed by the plans expiration. Furthermore, the European Youth Forum has commented that the strategy is making backwards progress in terms of easing the accessibility of jobs to youth. In fact, the group claims that the Youth on the Move flagship initiative will help only the highly educated while removing job prospects from those lacking the opportunity to obtain higher education, a demographic that represents 70% of the continent. 112 Additionally, the European Disability Forum has sent a letter to EU leaders expressing their discontent with the general lack of awareness surrounding Europeans with disabilities in Europe 2020.
Looking at social issues through the lens of the economy has served as a solid starting point for the EU in creating a plan to combat injustices; however, to invoke social change solely as a means of economic resolution is a fundamental flaw that must be avoided. One opinion piece expresses, Social investment strategies should not only be embedded in sound macroeconomic and budgetary policies, but also embedded in an attractive perspective of social progress, based on a shared notion of fairness and the political willingness to fight growing inequalities in our societies. 113 On top of that, the strategy thoroughly ignores the anti-discrimination issue and does not give a platform on methods to protect the social issues and their reinforcement.
An organization composed of forty-two NGOs that work with social issues confronted the EU about Europe 2020 during the short-lived public consultation period. Known as Social Platform, this organization asserted that the measures outlined in Europe 2020 were simply not detailed enough to reduce unemployment, increase social cohesion, and encourage social inclusion. 114
Instead, the Social Platform recommended Europe 2020 look beyond its short-term goals of solely addressing Europes economic woes. By fostering long-lasting strategy with the people at the center, the Social Platform argues, the EU can recommit itself to staying at the forefront of social policy worldwide. The Social Platform emphasizes that there are other means besides encouraging jobs and consumerism to stimulate the economy while pursuing social justice at the same time. Among these
110 Europes Demographic Future: Facts and Figures on Challenges and Opportunities, (European Commission, October 2007): 149. 111 Ibid. 112 Social Europe Still Missing in EU 2020 Draft, Say Activists. 113 Vandenbroucke, Hemerijck, and Palier, The EU Needs a Social Investment Pact. 114 Lcking, Debate About Social Dimension of Europe 2020 Strategy. National High School Model United Nations 2013 Council of the European Union
- 33 -
ideas, the Social Platform discusses reasserting a commitment to combat poverty, strengthening social protection across the EU, proposing a minimum income, ensuring access to services, establishing a European Employment Strategy, and convincing EU citizens that their participation and rights are the primary focus in all EU policies.
Many of the ideals laid out by Europe 2020 simply do not specify a means to the target. Specific details surrounding a policy ideal assist not only in clarifying the programs involved, but also in establishing a plan for implementation and providing a benchmark to assess progress. In accomplishing its all-important economic aims, Europe 2020 has been especially keen in calling on the Council of the European Union to issue country-by-country details on how this plan is to be implemented. 115 With this, one question remains: if it is readily acknowledged that delineating specific national goals for achieving the economic targets of Europe 2020 is an advisable idea, then why have specific social targets not been issued on a country-by-country basis?
On top of a lack of implementation procedures and confidence, there is a need to convince all EU member states that the priorities laid out by Europe 2020 represent the best priorities better than their own national agendas for the EU as a whole. A key difference comes into play here between much of Central and Eastern Europe as opposed to Western Europe, especially when discussing matters such as education, the environment, and the gender gap. 116 The anti-discrimination component of Europe 2020 represents a success in proper implementation, as it resulted in the creation of the National Roma Integration Strategies. 117 These Strategies vary country-by-country, and detail a means of achieving what is both a goal of Europe 2020 and the EU framework as a whole.
Even if these social policies can be implemented by all of these member states, the question remains as to how they can be enforced. For example, a recent report by the European Commission analyzing the social dimensions of Europe 2020 concluded that it is absolutely necessary that member states employ enforcement procedures in matters of anti-discrimination, as less than half of member states do so currently. 118 Additionally, a great tool in pursuing policy implementation is an education campaign raise awareness of rights and the tools available to be utilized.
Europe 2020 represents a profound opportunity for the continent to make some serious social strides both in order to harmonize the policies of the EU and to set a precedent for the rest of the world. As one European Parliament describes it, The EU has a good reputation. 119 The EU is considered a normative power occupying a position of economic and social leadership at the forefront of each respective field. As a result, the EU holds a position of relative power when
115 Council Issues Country-Specific Recommendations, PRESSE 324 (Brussels: Council of the European Union, July 10, 2012), http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ecofin/131662.pdf. 116 Cerami, Europeanisation and Social Policy in Central and Eastern Europe. 117 National Roma Integration Strategies: A First Step in the Implementation of the EU Framework (European Commission, May 21, 2012), http://ec.europa.eu/justice/discrimination/files/com2012_226_en.pdf. 118 The Social Dimension of the Europe 2020 Strategy (Social Protection Committee -- European Commission, March 2011), http://ec.europa.eu/social/BlobServlet?docId=6895&langId=en. 119 Werner Eichhorst et al., The External Dimension of EU Social Policy, PE 440.287 (Brussels: European Parliament, July 2010), http://www.europarl.europa.eu/document/activities/cont/201107/20110718ATT24272/20110718ATT24272 EN.pdf. National High School Model United Nations 2013 Council of the European Union
- 34 -
discussing social policy on an international level. In addition, there are different spheres of influence when it comes to EU social policy. For example, Africa receives a lot of financial aid from the EU, and, therefore, the EU has some leverage in discussing and putting a move on social concerns in this region. 120
The idea of a European Social Model is derived from the Treaty of the Functioning of the European Union, and it relates to the shared European goal that emphasizes individual rights and equal opportunities while pursuing social protection. 121 Through Europe 2020s goals against poverty, the EU has in a sense rekindled a spirit of dynamism to reinvigorate the concept of the European Social Model, which many claim is threatened by the economic constraints placed by Europe 2020. 122 As a result, in order to sustain the idea of a European Social Model, Europe 2020 must be bolstered by specific documentation relating to the social elements of the ten-year plan.
Therefore, it is clear that the mission of establishing a unified EU social policy within the framework of Europe 2020 complete with a comprehensive means of implementation and enforcement is a goal that encompasses not just Europe, but the direction of the rest of the world as well. It has also been recommended that, when the EU choose to pursue social pursue, it does so in a coherent and coordinated manner so that its initiative can be seen as strong and clear. 123 With these qualities, the EU can see a successful soft approach to social policy through the framework of Europe 2020. BLOC ANALYSIS Western Europe
Countries with views that are traditionally more western will share a more progressive agenda in terms of social policy. For these member states, using the international sway of the EU to set a global precedent for social liberties is a paramount important. Many of these countries hold diverse views in exactly how this policy should be executed. For example, the French value of lacit creates a new level of religious freedom by prohibiting its citizens public exercise of all religion. Additionally, these countries may hold similar views on healthcare that differ greatly in the details. Furthermore, many of the Western European countries interpret the duration of a traditional workweek in a different manner than the rest of the continent. Whether it be a higher minimum wage, an earlier pension, more vacation time, or a shorter duration of work itself, this bloc seeks to assert that its social policies are the best for the EU as a whole. However, it should be noted that these views can vary within the Western European countries if comparing citizens living in urban centers to those living outside of the more liberal cities; therefore, it is important that delegates keep in mind this dichotomy and the need to represent all of the countrys citizens when making
120 Ibid. 121 European Social Model, Eurofound, May 5, 2011, http://www.eurofound.europa.eu/areas/industrialrelations/dictionary/definitions/EUROPEANSOCIALMO DEL.htm. 122 Pervenche Beres, The EU 2020 Strategy Puts the European Social Model at Risk, Social Europe Journal (April 8, 2010), http://www.social-europe.eu/2010/04/the-eu-2020-strategy-puts-the-european-social- model-at-risk/. 123 Ibid. National High School Model United Nations 2013 Council of the European Union
- 35 -
important policy decisions. Nonetheless, this bloc will try to assert a more progressive view with an eye towards promoting more liberal social policy worldwide.
Eastern Europe/Post-Communist
Member states emerging from the Soviet era find themselves at a crossroads between two fundamentally different social tenets: the desire to fit the EU mold, and the authoritarian upbringing and history of the state and its people. Outwardly, these governments may claim to have a more progressive opinion in order to align the country with the more economically strong and often socially liberal members of the EU. For example, a recent opinion poll in Romania discovered that 54% of Romanians would never have a meal with a homosexual; however, even the Conservative Party of Romania has recently reaffirmed its respect of the citizens sexual options. 124 These countries may be more willing to agree to social change on an EU-wide level than on a national level, as a grand opposition will inevitably exist to any great changes in social precedents. With that in mind, any sort of enforcement or commitment to modernize the social situation in an Eastern European or post-communist member state will prove difficult. Furthermore, an analysis of Bulgaria and Romania has demonstrated, [These countries] must combat the chronic underfinancing of the public social services which has been favoured by a general negative attitude towards the social role of the state, which seems to have been considered more of a necessary evil than as a lever for general equitable welfare. 125
Scandinavia
Generally, the Scandinavian countries permit their citizens access to social provisions such as healthcare and social insurance, while spending a relatively larger portion of their GDP on promoting the labor market. 126 These countries are considered the most socially liberal in their values regarding the general welfare, as they tend to be generous and within public reach in most circumstances. Historically, the present-day social policy is based on a dependency on international markets influenced by the rise of trade unions, which has thus led to the development of the welfare state becoming a requirement for the economic success of these countries. 127 The concept of free education has enabled the Scandinavian countries to train generations of highly-skilled workers for demanding and specific markets, while at the same time promoting gender equality and a national sense of participation. Although these countries are normally seen as one unified bloc, there are profound differences among each individual national model. For example, differences in the varying levels of capitalism in each Scandinavian country has ultimately led to differing economies in terms of the goods and services that they provide. In addition, the politics and policymaking of each of these countries has also been affected by their differing means of production. When considering the impacts of social policy for the Scandinavian countries, it is important to keep in mind the three
124 Percep!ii "i Atitudini Privind Discriminarea n Romnia (Consiliul Na!ional pentru Combaterea Discrimin#rii, April 3, 2012), http://cncd.org.ro/files/file/Raport%20de%20cercetare%20CNCD_Discriminare.pdf. 125 Ileana Tache and Cristina Neesham, The Performance of Welfare Systems in Post-Communist Europe: The Cases of Romania and Bulgaria, International Journal of Economics and Research 2, no. 5 (2011): 90 107. 126 Marita Hoydal, Social Policy and Welfare, The Nordic Region, http://www.norden.org/en/the-nordic- region/social-policy-and-welfare/. 127 Jon Erik Dlvik, The Negotiated Nordic Labor Markets: From Bust to Boom, Working Paper Series (Center for European Studies, 2008), http://www.ces.fas.harvard.edu/publications/docs/pdfs/CES_162.pdf. National High School Model United Nations 2013 Council of the European Union
- 36 -
pillars of their social foundations: macroeconomic governance, industrial policies, and collective bargaining and welfare state policies. 128
COMMITTEE MISSION As it is being simulated that the EU has called upon the Council of the European Union to hold a special legislative session, the mission of this committee vis--vis the topic of social policy will be slightly different than usual. In terms of background, it can be assumed that the EU determined in an assembly that the criticism was valid that Europe 2020 was lacking in terms of social policy and thus decided to change the legislative process in order to produce a successful document regarding social policy as efficiently and as comprehensively as possible, so as to maintain international confidence in the EUs ten-year plan. As a result, the EU called upon the Council of the European Union to assemble representative experts in the topic of social legislation with the confidence that this panel could act quickly with the granted authority to subvert the typical EU legislative process.
Each delegate will represent the top-level social policy expert of his or her respective country, and therefore will bear a bit of national authority in terms of social legislation. For the EU as a whole, it is being simulated that the Council has been granted the authority to produce a corollary to Europe 2020 that deals specifically with social policy this is the fundamental goal of this committee. As with any of the Councils missions, there are two components to this goal: the macro- and the micro- policies. The Council must coordinate the national policies of each country to achieve the overarching EU goal that it sets forth, while at the same time it must establish a baseline for these individual national targets.
Delegates are called upon to learn from the EUs history in looking to the failures of the Lisbon Strategy in order to determine the best course of action for bolstering Europe 2020 with fundamental social policy. Many of these social goals are difficult to accomplish in a multinational setting because the target values are only averages, and each country has its own starting point from which to achieve these goals. With that in mind, any ten-year strategy for the EU necessitates a series of individualized country-by-country national targets, which is important to keep in mind throughout the progression of this committee. Furthermore, one more idealistic goal is never far from thought: revolutionizing the global precedent for social policy, with the EU serving as the center of the modernized world.
128 Ibid. National High School Model United Nations 2013 Council of the European Union
- 37 -
RESEARCH AND PREPARATION QUESTIONS As mentioned in the Note on Research and Preparation, delegates must answer each of these questions in their position papers. TOPIC A 1. Can the euro continue to function as a unified European currency? Should provisions be made for a Drachma clause?
2. What specific actions could your country take in order to boost its economic stability? How can this action be magnified in order to fit the macro goals of the Council of the European Union? What are these goals?
3. How can economic policy integration restore the euros strength? On the other hand, how does it fall short?
4. How can the devaluation-inflation spiral as a result of a reversion to a sovereign currency be reconciled to foster monetary stability? Should sovereign currency if it re-enters the economies of any of the Eurozone members be pegged to the euro? TOPIC B 1. How does your country view the EUs role in setting the global precedent in terms of social policy?
2. What specific goals does your country want to see achieved? How can this plan be magnified to create an EU-wide unified social policy proposal?
3. What specific actions can be taken within your own country to accomplish this objective?
4. What lessons does your country bring to the table that are unique from the rest of the EU member states?
5. How can the EU combat the global skepticism surrounding Europe 2020?
6. How can the EU enforce that social policy measures are observed in each member state?
National High School Model United Nations 2013 Council of the European Union
- 38 -
APPENDIX I: EXPLANATIONS OF RELEVANT AGENCIES AND ORGANIZATIONS
The European Central Bank (ECB) Established: 1 June 1998 Headquarters: Germany
Organization: With an Italian President Marco Draghi, the ECB is led by the Governing Council, which gives each Eurozone member representation in the ECB. The Governing Council is made up of the governors of each Eurozone states central bank and the six members of the Executive Board the President, the Vice-President, and four more members appointed for single terms of eight years. A General Council also exists, addresses the logistics of the euro adoption by EU members, which will cease to exist when and if all members of the EU adopt the euro.
Purpose: The ECB serves to uphold price stability, which means that it wants to keep inflation l low. By controlling the Eurozones monetary policy, the ECB seeks to unify the Eurozone and avoid conflicting monetary policy of individual members. The ECB authorizes the minting of all euros, which in turn gives it a monopoly of the monetary supply and thus the power to influence interest rates m and manage the liquidity n status. This is accomplished through a main refinancing operation, which is more commonly known as an open market operation in the United States. In a main refinancing operation (MRO), the ECB conducts transactions using government bonds to influence the short-term interest rate and money supply. Longer-term refinancing operations are MROs with a longer maturity that serve to inject or restrict the liquidity in the financial sector, which requires a longer maturity than an MRO to be take effect. During a financial crisis, the ECB can strategically buy up weak members bonds in an attempt to soften the impact upon international speculation o . The EFSF serves as a complement to the ECB. 129
International Monetary Fund (IMF) Established: 27 December 1945 Headquarters: Washington, D.C., United States of America
Organization: The IMF has 188 members, including the entire EU, and is led by an Executive Board. The Executive Board represents all member countries, but is composed of twenty-four Executive Directors. Eight countries with notably large economies are permitted to appoint their own Executive Director Germany, the United Kingdom, and France being among them. The remaining sixteen Executive Directors are appointed by the Board of Governors, which has one governor per member and deals with primarily administrative matters. There is one Managing Director who is in charge of the entire IMF and serves as the Chairman of the Executive Board. Today, the Managing Director of the IMF is Christine Lagarde of France historically this post has always been held by a European and there is also one head of the European division, who is Antnio Borges of Portugal.
129 The European Central Bank, The ECB, accessed 20 Sept. 2012, http://www.ecb.int/ecb/html/index.en.html National High School Model United Nations 2013 Council of the European Union
- 39 -
Purpose: Originally founded with the purpose of stabilizing the exchange rates between currencies after World War II, the goal of the IMF, as least in terms of how it relates to the EU, has changed drastically. Before the global financial crisis in 2008, the IMFs involvement in Europe primarily had to do only with giving policy advice in terms of finance and technical management. Since the debt crisis, the IMF has been called upon by various Eurozone countries to provide financial support in the time of crisis. As of July 2012, Greece, Portugal, and Ireland have been assisted by the IMF, in addition to various other emerging countries such as Hungary, Latvia, and Romania which requested aid in conjunction with the EU. In situations where euro area countries reached out for aid, the IMF and the EU joined together with the ECB in a program known as Troika, which seeks to ensure that efficiency and coherence among the organizations. In January 2009, the IMF created a program known as the European Bank Coordination Initiative (EBCI), or the Vienna Initiative, to coordinate efforts to manage the financial crisis. 130 In short, the EBCI seeks to maintain the commitments of cross-border bank groups and parent bank groups in areas of IMF intervention, in addition to upholding commitments in emerging Europe that may become overshadowed by the debt crisis. 131
European Commission Established: 1958 Headquarters: Brussels, Belgium and Luxembourg, Luxembourg
Organization: It is important to understand the organization of the European Union as a whole just to further comprehend what the role of delegates will be in this committee. The European Commission represents a uniquely European perspective, as each EU member state proposes one representative who seeks to act independently of country policy in creating the greatest hegemony between members of the EU. This is different from the European Parliament, which is elected by the people of Europe and thus represents citizens of the European Union, and the Council of the European Union, which represents the governments of each member state. The European Commission is composed of twenty-seven commissioners who serve five-year terms, and each is occupied with a different specific policy area. Jos Manuel Barroso of Portugal entered his second term in February 2010 as President of the European Commission.
Purpose: In the structure of the European Union, the European Commission holds legislative initiative, which means that it introduces laws that cannot be taken care of at a lower level of government. Specifically, the European Commission is responsible for setting up a financial framework for the EU, checking the application of EU law, and representing the EU in terms of negotiation and speaking on its behalf in international institutions. Any legislation that the European Commission proposes goes to the Council of the European Union, which then goes to the European Parliament. If these bodies accept the legislation, then it becomes law. If they choose to
130 Vienna Initiative - Moving to a New Phase (European Bank for Reconstruction and Development, April 2012), http://www.ebrd.com/downloads/research/factsheets/viennainitiative.pdf. 131 Overview, International Monetary Fund, accessed 25 Sept. 2012, http://www.imf.org/external/about/overview.htm. National High School Model United Nations 2013 Council of the European Union
- 40 -
ask for amendments or reject the proposal flat-out, then it must start out again in the European Commission and continue the cycle of the legislative process. 132
132 European Commission at Work, European Commission, accessed 25 Sept. 2012, http://ec.europa.eu/atwork/index_en.htm. National High School Model United Nations 2013 Council of the European Union
- 41 -
APPENDIX II: TABLE OF EXPLANATIONS OF RELEVANT ECONOMIC TERMINOLOGY Term Explanation Anchoring Currency Another phrase for reserve currency, an anchoring currency constitutes a part of a governments foreign exchange reserves. Depending on the strength and stability of this currency, it is usually held in large quantities by the governments central banks in order to stabilize their own currency. It is extremely beneficial for a country to issue an anchoring currency (such as the United States, or the members of the Eurozone) as they thus avoid paying transaction costs to exchange their currency in international transactions. Austerity A technique used in times of economic crisis, austerity is a means to reduce a deficit by reducing spending, which most often comes out of public services. It has been argued that austerity measures are counter-intuitive in times of crisis, as reduced spending in the public sector can lead to an increase in unemployment, which creates a downward spiral of economic crisis. Bond Yields Bonds are another term for loans. The issuer of a bond is the entity seeking a loan, and this issuer specifies an interest rate and a maturity date on the amount of funds contained in the bond. A yield is defined as the interest rate divided by the value of the bond, and it is the amount of money that the issuer pays back on a bond. When the value of the bond is face value (known as at par), the bond yield is equal to the interest rate. However, the bond value may change as a result of, for example, exchange rate fluctuations. Therefore, if the value of a bond decreases, the interest rate still remains the same, and thus the bond yield increases beyond the interest rate. National High School Model United Nations 2013 Council of the European Union
- 42 -
Debt Ratings Debt ratings are an internationally-accepted means of measuring a government or institutions ability to pay back debt and meet its financial commitments. Moodys, Standard & Poors, and Fitch are all common credit rating agencies. Default Default takes place when a debtor fails to meet its legally- bound financial commitments as per a debt contract. For example, failure to make a payment within terms of a contract would cause a default. In terms of governments, in case of a default these countries are likely to renegotiate a debt agreement rather than default. Countries, as opposed to individuals, have a variety of tools at their disposal for avoiding default at all costs, such as devaluing their currency. If the lender suspects the potential of a default, it is possible that he or she will require a higher interest rate on the bond to compensate for this risk. A sovereign debt crisis is caused when the interest rate on a governments debt is dramatically increased. If a sovereign default were to occur, it is unclear as to exactly what the consequences might be, as in history they have included invasion and militaristic diplomacy. European Financial Stability Facility (EFSF) In May 2010, the European Union agreed to create the EFSF as a means to provide struggling Eurozone members with financial assistance in order to preserve overall stability. In total, the EFSF may borrow 440 billion EUR, all of which is financed by the Eurozone members. European Stability Mecahnism (ESM) The proposed ESM seeks to replace the EFSF as a means of providing distressed Eurozone members with financial assistance. The organization will only be established if the founding treaty is ratified by member states representing 90% of its capital requirements. National High School Model United Nations 2013 Council of the European Union
- 43 -
Inflation Inflation is the perpetual increase in prices that occurs in an economy over time. The ideal is to have a steady rate of inflation, and achieving this aim is the responsibility of central banks. If rampant inflation occurs, it requires more money to do what used to cost less. If the value of a currency decreases, inflation will increase. Interest Rates In terms of loans, interest is a fee that is paid to the authority issuing finances by the borrower of these finances. The interest rate defines exactly how much will be owed as the result of a loan. International Speculation International speculation has to do with levels of confidence in terms of transactions. Confidence can affect the perceived strength of a currency, and must be monitored closely as it can lead to changes in exchange rates and thus inflation. Invoicing Currency An invoicing currency is the currency selected in an international transaction in which the trade will be conducted. Liquidity Liquidity has to do with an assets ability to be bought and sold without affecting the assets overall price, considering that every transaction has some sort of an effect on the economy. The most liquid asset is money, as it can be used immediately and usually without a change in value. Public Debt Securities Securities are instruments representing financial value. Government bonds, which are an example of securities and serve to finance a government, are generally low-risk. As a result of their lack of risk, they are used to manage the money supply. National High School Model United Nations 2013 Council of the European Union
- 44 -
Solvency Solvency is a measure of an institutions ability to meet its long-term expenses by assessing its proportion of assets to liabilities. On the contrary, insolvency is the inability of a debtor to pay back debt. When discussing sovereign entities, default has to do with the inability to meet contract obligations, including interest payments, while insolvency has to do with absolute inability to pay back the debt itself. Vehicle Currency A vehicle currency is used in invoicing when, in a transaction, it is decided to use neither the producer nor the buyers own currency. Instead, the parties choose a vehicle currency to serve as the medium between their own currencies.
National High School Model United Nations 2013 Council of the European Union
- 45 -
IMPORTANT DOCUMENTS The following documents have been hand- selected by Directors to further aid in delegate preparation. Please make a concerted effort to read and analyze these documents prior to the conference. TOPIC A EFSF Framework Agreement. European Financial Stability Facility, 2011. Amended text of the EFSF framework. The EFSF was created specifically to address the European debt crisis, and serves as a vehicle for the provision of financial aid. This amended document is substantial, as it has been successfully invoked in the cases of Ireland and Portugal. The EFSF is set to be replaced by the ESM, once it is ratified.
European Council 24/25 March 2011 Conclusions. Brussels: European Council, 2011. Text of the Euro Plus Pact. Adopted in 2011, the Euro Plus Pact epitomizes European commitment to improve its economic health in the face of crisis. Predominantly a series of political reforms, this document builds off the Stability and Growth Pact in that it specifies a series of implementation procedures that are instrumental to the pacts success. The open method of coordination is a key element of the Euro Plus Pact.
Stability and Growth Pact Revisions. Brussels: Council of the European Union, 2011. Text of the updated version of the Stability and Growth Pact. Following the establishment of the Economic and Monetary Union, the Stability and Growth Pact seeks to enforce fiscal surveillance in order to uphold the overall stability of all member-states involved in the EMU.
Treaty of Amsterdam. Amsterdam, 1997. Text of the Treaty of Amsterdam. Signed in 1997, the Amsterdam Treaty is a step before the Lisbon Treaty and amends the Maastricht Treaty and several other EU documents. The Amsterdam Treaty is important as it granted the EU authority over issues of immigration, as well as formalized the Schengen Agreements as EU law.
Treaty of Lisbon. European Union, 2007.
Text of the Lisbon Treaty. Signed in 2007, the Lisbon Treaty amends both the Maastricht Treaty and the Treaty of Rome. This document is significant as it strengthened several the powers of several EU bodies and serves as testament to the evolutionary character of the EU.
Treaty on the Functioning of the European Union. European Union, 2010. Text of the consolidated Treaty on the Functioning of the European Union. This text sets forth all procedural policies of the EU and of its operations. This committee functions with regard to its functions set forth in this document.
National High School Model United Nations 2013 Council of the European Union
- 46 -
TOPIC B Council Issues Country-Specific Recommendations. Brussels: Council of the European Union, 2012. Well-organized and concise document provided by the Council issuing individualized recommendations on how to achieve certain of the Europe 2020 policies. This type of format should be used as a model for any further individualized recommendations given by the Council.
EFSF Framework Agreement. European Financial Stability Facility, 2011. Amended text of the EFSF framework. The EFSF was created specifically to address the European debt crisis, and serves as a vehicle for the provision of financial aid. This amended document is substantial, as it has been successfully invoked in the cases of Ireland and Portugal. The EFSF is set to be replaced by the ESM, once it is ratified.
Stability and Growth Pact Revisions. Brussels: Council of the European Union, 2011. Text of the updated version of the Stability and Growth Pact. Following the establishment of the Economic and Monetary Union, the Stability and Growth Pact seeks to enforce fiscal surveillance in order to uphold the overall stability of all member-states involved in the EMU.
Treaty of Amsterdam. Amsterdam, 1997. Text of the Treaty of Amsterdam. Signed in 1997, the Amsterdam Treaty is a step before the Lisbon Treaty and amends the Maastricht Treaty and several other EU documents. The Amsterdam Treaty is important as it granted the EU authority over issues of immigration, as well as formalized the Schengen Agreements as EU law.
Treaty of Lisbon. European Union, 2007. http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:C:2007:306:FULL:EN:PDF. Text of the Lisbon Treaty. Signed in 2007, the Lisbon Treaty amends both the Maastricht Treaty and the Treaty of Rome. This document is significant as it strengthened several the powers of several EU bodies and serves as testament to the evolutionary character of the EU.
Treaty on the Functioning of the European Union. European Union, 2010. Text of the consolidated Treaty on the Functioning of the European Union. This text sets forth all procedural policies of the EU and of its operations. This committee functions with regard to its functions set forth in this document.
National High School Model United Nations 2013 Council of the European Union
- 47 -
BIBLIOGRAPHY COMMITTEE HISTORY Application of EU Law. EC.Europa. European Commission. Web. 15 May 2011. <http://ec.europa.eu/eu_law/introduction/treaty_en.htm>. Provides an explanation of the basics of EU law.
CONSILIUM - Council. Consilium.Europa. Council of the European Union. Web. 15 May 2011. <http://www.consilium.europa.eu/showPage.aspx?id=242>. EU website explaining the work of the council, its goals, mandate, and impact on the decision making process of EU member states.
General Secretariat of the Council of the EU. Treaty of Lisbon. Consilium Europa. Council of the European Union. Web. 15 May 2011. <http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ec/111652.pdf>. A note on recent revisions to the terms of the Council, including the establishment of a fixed full-time President of the CoEU and the creation of the High Representative of the Union for Foreign Affairs and Security Policy.
Member Countries. Europa. European Union. Web. 15 May 2011. <http://europa.eu/about- eu/member-countries/index_en.htm>. Quick resource for the list of EU member states.
Smith, Norris. The European Union. USA: H.W. Wilson Company, 2005. Print. Excellent source for a detailed history of the EU.
Van, Gerven Walter. The European Union: a Polity of States and Peoples. Stanford, CA: Stanford University, 2005. Print. This source provides a clearer and more detailed explanation of the concept behind the European Union. SIMULATION Council Configurations. Consilium -- Council of the European Union. http://consilium.europa.eu/council/council-configurations?lang=en. List of the various configurations of the Council.
Press Release -- 3177th Council Meeting. Employment, Social Policy, Health and Consumer Affairs. Luxembourg: Council of the European Union, June 21, 2012. http://consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/lsa/131116.pdf. Press release containing a sample participation roster of a meeting of the Employment, Social Policy, Health and Consumer Affairs configuration.
National High School Model United Nations 2013 Council of the European Union
- 48 -
Press Release -- 3181st Council Meeting. Economic and Financial Affairs. Brussels: Council of the European Union, July 10, 2012. http://consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/131686.pdf. Press release containing a sample participation roster of a meeting of the Economic and Financial Affairs configuration.
The Unions Decision-Making Procedures. Europa. http://europa.eu/scadplus/constitution/majority_en.htm. Explanation of the qualified majority voting procedure.
TOPIC A UN Sources
Currency Composition of Official Foreign Exchange Reserves (COFER). Washington, DC: International Monetary Fund, April 2012. Spreadsheet totaling levels of foreign exchange reserves.
European Council 24/25 March 2011 Conclusions. Brussels: European Council, 2011. Text of the Euro Plus Pact. European Financial Stability Facility (EFSF). European Union. Summary of the EFSF and its mission.
The IMF and Europe. International Monetary Fund, May 2012. http://www.imf.org/external/np/exr/facts/pdf/europe.pdf. Brochure detailing the IMF's responsibilities in Europe.
The Impact of the European Debt Crisis on Africas Economy. Addis Ababa, Ethiopia: United Nations and African Union Commission, March 26, 2012. http://www.uneca.org/cfm/2012/documents/English/COM12-TheImpact-of- theEuropeanDebtCrisis-onAfricaEconomyA-BackgroundPaper.pdf. Paper about the spillover effects of the debt crisis on the African economy.
Treaty on the Functioning of the European Union. Article 125: Section 1, 2009. Text of the treaty amending the Treaty on European Union.
Non-UN Sources
Bagus, Philipp. The Tragedy of the Euro. Auburn: Mises Institute, n.d. Book detailing the Eurozone crisis of 2010 including the spread of the Greek debt crisis. Baldwin, Richard. The Euros Trade Effects. Working Paper Series. European Central Bank, 2006. ECB working paper following a conference entitled "What Effects is EMU Having on the Euro Area and its Member Countries?"
National High School Model United Nations 2013 Council of the European Union
- 49 -
Biewald, Andreas. Money Market Contact Group. Commerzbank, 2010. Presentation discussing March - May 2010. Bll, Sven, Christian Reiermann, Michael Sauga, and Klaus Wiegrefe. Operation Self-Deceit: New Documents Shine Light on Euro Birth Defects. Spiegel. Accessed 15 July 2012. http://www.spiegel.de/international/europe/euro-struggles-can-be-traced-to-origins-of- common-currency-a-831842.html. Article highlighting the more scandalous side of the euro's conception.
Brender, Anton, Florence Pisani, and Emile Gagna. The Sovereign Debt Crisis - Placing a Curb on Growth. Brussels: Centre for European Policy Studies, 2012. Major study on global financial markets by an important.
Cable, Jonathan. UK Manufacturing Contracts Again, Stimulus to Come. Reuters. Accessed 15 July 2012. http://in.reuters.com/article/2012/07/02/pmi-manufacturing-britain- idINL6E8I25M520120702. Article discussing the UK's declining manufacturing sector in 2012.
Campbell, Douglas L. Estimating the Impact of Currency Unions on Trade Using a Dynamic Gravity Framework. Munich University Library, 2012. Intensive economic study about the departure from a currency union.
Casarini, Nicola. For China, the Euro Is A Safer Bet Than the Dollar. European Union Institute for Security Studies, June 2012. Pamphlet based off an article summarizing China's investment strategy vis--vis the European debt crisis.
Cur, Benot. The Euro Area Sovereign Debt Market: Lessons Learned from the Crisis presented at the 12th IMF Annual Forum on Managing Sovereign Risk and Public Debt: Managing Sovereign Debt: A Seismic Shift in Demand and Supply Dynamics?, Rio de Janeiro. Accessed 15 July 2012. http://www.ecb.eu/press/key/date/2012/html/sp120628_1.en.html. Speech by an executive board member of the ECB discussing lessons learned about sovereign debt.
Connelly, Tony. The Fiscal Stability Treaty: What Happens Next? RTE. Accessed 15 July 2012. http://www.rte.ie/blogs/european/2012/01/30/the-fiscal-stability-treaty-what-happens- next/. Article about the Fiscal Stability Treaty and the Eurozone's future path.
EU Institutions: How They Work, (BBC News), http://news.bbc.co.uk/2/shared/spl/hi/europe/04/eu_institutions/html/how_they_work. stm Diagram of the ordinary legislative process in the EU.
Fahrholz, Christian, and Cezary Wojcik. The Bail-Out! Positive Political Economics of Greek-Type Crises in the EMU. CASE Network Studies and Analyses. Center for Social and Economic Research, 2010. http://www.case-research.eu/en/node/55848. Paper discussing the positive economic effects of bailouts within the Eurozone. National High School Model United Nations 2013 Council of the European Union
- 50 -
Faiola, Anthony, and Michael Birnbaum. Germany Offers Vision of Federalism for the European Union. The Washington Post. Accessed 27 July 2012. http://www.washingtonpost.com/world/europe/germany-offers-vision-of-a-more-perfect- european-union/2012/06/27/gJQAILtk6V_story.html. Article about the German idea of a federalist union within the EU.
Foreign Exchange and Derivatives Market Activity in April 2010. Triennial Central Bank Survey. Bank for International Settlements, September 2010. Triennial report on currency usage in international transactions.
General Assessment of the Macroeconomic Situation. Organisation for Economic Co-operation and Development, 2011. http://www.oecd.org/dataoecd/47/23/49113623.pdf. Comprehensive report on the macroeconomics of the Eurozone crisis by a prominent economic organization.
Glossary -- Economic and Financial Affairs. European Commission. Accessed 15 July 2012. http://ec.europa.eu/economy_finance/focuson/inflation/glossary_en.htm. Glossary of inflation vocabulary provided by the European Union.
Gonzlez-Pramo, Jos Manuel. The European Union and the Lessons from the Crisis: The Way Forward presented at the RCB Capital Markets Central Bank Conference Impacts and Implications of Integrated Global Markets, Madrid, May 12, 2011. http://www.ecb.eu/press/key/date/2011/html/sp110512_1.en.html. Speech by an executive board member of the ECB discussing the path out of the European debt crisis and the lessons learned as a result.
Gurot, Ulrike. Do We Go That Far to Save Europe? European Council on Foreign Relations. Accessed 15 July 2012. http://ecfr.eu/blog/entry/do_we_go_that_far_to_save_europe. Article about economic federalism in order to save the Eurozone.
Cahier Comte Bol. How to Strengthen the European Monetary Union. European League for Economic Cooperation, April 2011. Series of papers on the turmoil of the EMU and the future of the euro.
International Contracts and the Eurozone Crisis. Securities and Derivatives Briefing. Ashurst, January 2012. http://www.ashurst.com/doc.aspx?id_Content=6505. Paper on the potential resolutions to the crisis and their effects on international contracts.
Klein, Ezra, and Sarah Kliff. The European Debt Crisis in Eight Graphs. The Washington Post. Accessed 15 July 2012. http://www.washingtonpost.com/blogs/ezra-klein/post/the- european-debt-crisis-in-eight-graphs/2011/12/01/gIQAsmR5GO_blog.html. Article featuring a series of graphs highlighting some of the fundamental concepts of the Eurozone crisis.
Nelson, Rebecca M., Paul Belkin, Derek E. Mix, and Martin A. Weiss. The Eurozone Crisis: Overview and Issues for Congress. Washington, DC: Congressional Research Service, 2012. Analysis of the Eurozone crisis's effects on American policy. National High School Model United Nations 2013 Council of the European Union
- 51 -
Norris, Floyd. Euro Benefits Germany More Than Others in Zone. New York Times, April 22, 2011. http://www.nytimes.com/2011/04/23/business/global/23charts.html?_r=2&smid=tw- nytimesbusiness&seid=auto. Article detailing the increase in German competitiveness since the start of the crisis.
Population Division, Population Estimates, and Projections Section -- World Population Prospects, the 2010 Revision. United Nations, Department of Economic and Social Affairs, 2010. http://esa.un.org/unpd/wpp/Excel- Data/DB02_Stock_Indicators/WPP2010_DB2_F01_TOTAL_POPULATION_BOTH_S EXES.XLS. Report on the global population by region by the UN.
Ralitsa Kovacheva, Sofia. Paris and Berlin: Political Sanctions, But Only in the Euro Area. EU Inside, July 28, 2010. http://www.euinside.eu/en/news/paris-and-berlin-for-political- sanctions-but-only-in-the-euro-area. Article discussing the Franco-German idea of voting rights removal as an economic sanction.
Skouras, Thanos. Greece: Why Not Go Back to the Drachma? European Business Review, February 13, 2012. http://www.europeanbusinessreview.eu/page.asp?pid=970. Article about the negative effects of a Greek return to sovereign currency.
The History of the European Union. European Union, n.d. http://europa.eu/about-eu/eu- history/index_en.htm. EU website summarizing its history.
The International Role of the Euro. European Central Bank, July 2011. http://www.ecb.int/pub/pdf/other/euro-international-role201107en.pdf. Publication on the euro's effects and responsibilities internationally.
The Silent Bazooka. The Economist, February 4, 2012. http://www.economist.com/node/21545990. Article discussing the ECB's efforts to stabilize the Eurozone.
Traynor, Ira, and Patrick Wintour. Eurozone Crisis: Germany and France Clash over Eurobonds at Summit. The Guardian. Accessed 15 July 2012. http://www.guardian.co.uk/business/2012/may/23/eurozone-crisis-france-germany-divide. Article detailing the recent split in policy between Germany and France over eurobonds.
Treaty Establishing the European Community. Part I: Principles, Article 2. 1999. Text of the treaty creating the European Community.
Treaty Establishing the European Economic Community, EEC Treaty, 1957. http://europa.eu/legislation_summaries/institutional_affairs/treaties/treaties_eec_en.htm. Text of the treaty creating the European Economic Community. National High School Model United Nations 2013 Council of the European Union
- 52 -
Treaty on European Union (Amended Maastricht Treaty). Title III: Provisions on the Institutions, Article 16: Section 1, 2009. Amended text of the Maastricht Treaty.
UK Employees Go on Strike to Protest Austerity Measures. The Economic Times. Birmingham, December 1, 2011. http://economictimes.indiatimes.com/news/international-business/uk- employees-go-on-strike-to-protest-austerity-measures/articleshow/10937960.cms. Article discussing the UK strife as a result of economic hardship.
Update of the Hellenic Stability and Growth Programme. Athens: Greek Ministry of Finance, January 2010. http://ec.europa.eu/economy_finance/economic_governance/sgp/pdf/20_scps/2009- 10/01_programme/el_2010-01-15_sp_en.pdf. Text of the Greek plan to restore its economy.
Vienna Initiative - Moving to a New Phase. European Bank for Reconstruction and Development, April 2012. http://www.ebrd.com/downloads/research/factsheets/viennainitiative.pdf. Factsheet on the ECBI program to coordinate crisis management of the financial sector.
National High School Model United Nations 2013 Council of the European Union
- 53 -
TOPIC B UN Sources Civil Society. European Commission -- Europe 2020, April 11, 2012. http://ec.europa.eu/europe2020/who-does-what/stakeholders/index_en.htm. EU website article detailing the role of civil society in realizing the goals of Europe 2020.
Council Issues Country-Specific Recommendations. PRESSE 324. Brussels: Council of the European Union, July 10, 2012. http://www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ecofin/131662.pd f. Council of the European Union document releasing specific national targets for each member state.
Eichhorst, Werner, Michael J. Kendzia, Jonathan Benjamin Knudsen, and Dorit Wahl-Brink. The External Dimension of EU Social Policy. PE 440.287. Brussels: European Parliament, July 2010. http://www.europarl.europa.eu/document/activities/cont/201107/20110718ATT24272/2 0110718ATT24272EN.pdf. Study analyzing the effects of EU social policy abroad.
From the Lisbon Strategy to Europe 2020. European Commission -- Education & Training, June 23, 2010. http://ec.europa.eu/education/focus/focus479_en.htm. EU website article regarding the targets of Europe 2020.
Fundamental Social Rights in Europe. European Parliament, November 1999. http://www.europarl.europa.eu/workingpapers/soci/pdf/104_en.pdf. Working paper about universal social rights for citizens of the EU.
GDP (Current US$). The World Bank, http://data.worldbank.org/indicator/NY.GDP.MKTP.CD. World Bank table of global GDPs in terms of USD, used to manually calculate GDP increase.
Joint Report on Social Inclusion 2004. European Commission, May 2004. http://www.eapn.ie/eapn/wp-content/uploads/2009/11/joint-report-on-social-protection- 2004.pdf. EU report on the status of various social issues in all member states.
Strategy for Employment and Growth. European Union. Council of the European Union, March 3, 2010. http://www.consilium.europa.eu/homepage/highlights/strategy-for-employment- and-growth?lang=en. Council of the European Union article regarding the Europe 2020 agreement.
National High School Model United Nations 2013 Council of the European Union
- 54 -
Task Force on Economic Governance. European Council, http://www.european- council.europa.eu/the-president/taskforce?lang=en. EU website introducing the task force on economic governance.
Social Europe Still Missing in EU 2020 Draft, Say Activists. EurActiv -- EU Priorities 2020, June 4, 2010. http://www.euractiv.com/priorities/social-europe-missing-eu-2020-dr-news- 286611. Article discussing lack of social policy in Europe 2020 from the perspective of various lobbies.
Agreement on Social Policy. Eurofound, January 13, 2011. http://www.eurofound.europa.eu/areas/industrialrelations/dictionary/definitions/agreeme ntonsocialpolicy.htm. EU encyclopedia entry on social policy unification.
Annex 1 -- Europe 2020: An Overview. European Commission, n.d. http://www.eudirect.ro/utile/annex1.pdf. Diagram of the goals of Europe 2020.
Non-UN Sources
Beres, Pervenche. The EU 2020 Strategy Puts the European Social Model at Risk. Social Europe Journal (April 8, 2010). http://www.social-europe.eu/2010/04/the-eu-2020-strategy-puts- the-european-social-model-at-risk/. Electronic journal article on the European Social Model in the age of Europe 2020.
Bongardt, Annette and Torres, Francisco. Europe 2020 -- A Promising Strategy?, Intereconomics 2010: 3 (Centre for European Policy Studies, 2010). http://www.ceps.eu/system/files/article/2010/06/136-170- Forum_IE_%2003_%202010.pdf. Discusses Europe 2020.
Briefing Note for the Meeting of the EMPL Committee 5 October 2009 Regarding the Exchange of Views on the Lisbon Strategy and the EU Cooperation in the Field of Social Inclusion. European Parliament, October 5, 2009. http://www.europarl.europa.eu/meetdocs/2009_2014/documents/empl/dv/lisbonstrategy bn_/lisbonstrategybn_en.pdf. Informational briefing providing an overview of the Lisbon Strategy and its methods for promoting social inclusion.
Cerami, Alfio. Europeanisation and Social Policy in Central and Eastern Europe. In Europanisation. DOuest En Est. Coll. Logiques Politiques, 137168. Paris: LHarmattan, n.d. http://www.policy-evaluation.org/cerami/docs/Cerami_Chapter_Bafoil.pdf. Journal article discussing the Central and Eastern European take on social policy.
. Social Policy in Central and Eastern Europe -- The Emergence of a New European Model of Solidarity? Universitt Erfurt, March 14, 2005. http://www.db- thueringen.de/servlets/DerivateServlet/Derivate-4495/cerami.pdf. National High School Model United Nations 2013 Council of the European Union
- 55 -
Book about a possible new European model of social policy based off the Central and Eastern standard.
Daly, Mary. EU Social Policy after Lisbon. Journal of Common Market Studies 44, no. 3: 461 481. Journal article about the evolution of social policy as a result of the Lisbon Strategy.
De Vlieghere, Martin, and Paul Vreymans. Europes Ailing Social Model: Facts & Fairy-Tales. The Brussels Journal -- The Voice of Conservatism in Europe, March 23, 2006. http://www.brusselsjournal.com/node/933. Article expressing the conservative viewpoint on the European Social Model.
Dlvik, Jon Erik. The Negotiated Nordic Labor Markets: From Bust to Boom. Working Paper Series. Center for European Studies, 2008. http://www.ces.fas.harvard.edu/publications/docs/pdfs/CES_162.pdf. Working paper regarding the creation of and differences between the unique Scandinavian social programs.
Employment Rate for Age Group 15-64, 2000-2010. Eurostat, n.d. http://epp.eurostat.ec.europa.eu/statistics_explained/images/b/b0/Employment_rate%2C _age_group_15-64%2C_2000-2010_%28%25%29.png. Table of statistics regarding the EU employment rate and its breakdown from 2000-2010.
Employment Rates for Selected Population Groups, 2000-2010. Eurostat, n.d. http://epp.eurostat.ec.europa.eu/statistics_explained/images/7/7e/Employment_rates_for _selected_population_groups%2C_2000-2010_%28%25%29.png. Table of statistics regarding the EU employment rate in 2000, 2005, and 2010.
Europe 2020 Targets (European Commission, April 2011). http://ec.europa.eu/europe2020/pdf/overview_of_member_states_national_targets.pdf. Target values for Europe 2020 goal criteria.
Europe 2020 -- Europes Growth Strategy. European Commission, n.d. http://ec.europa.eu/europe2020/index_en.htm. EU website index of topics regarding Europe 2020.
Europe 2020 -- Steering Committee. European Economic and Social Committee, 2010. http://www.eesc.europa.eu/?i=portal.en.europe-2020. EU website article introducing the Steering Committee.
European Social Model. Eurofound, May 5, 2011. http://www.eurofound.europa.eu/areas/industrialrelations/dictionary/definitions/EUROP EANSOCIALMODEL.htm. EU encyclopedia entry on the European Social Model.
Europes Demographic Future: Facts and Figures on Challenges and Opportunities. Directorate- General for Employment, Social Affairs, and Equal Opportunities. European Commission, October 2007: 149. National High School Model United Nations 2013 Council of the European Union
- 56 -
Report on the changing European demographic and strategies for confronting this change.
Facing the Challenge -- the Lisbon Strategy for Growth and Employment. High Level Group, November 2004. http://ec.europa.eu/research/evaluations/pdf/archive/fp6-evidence- base/evaluation_studies_and_reports/evaluation_studies_and_reports_2004/the_lisbon_str ategy_for_growth_and_employment__report_from_the_high_level_group.pdf. Report by a committee chaired by Wim Kok discussing the Lisbon Strategy in 2004.
Flagship Initiatives. European Commission -- Europe 2020, April 12, 2012. http://ec.europa.eu/europe2020/reaching-the-goals/flagship-initiatives/index_en.htm. EU website article putting forth the flagship initiatives of Europe 2020.
Gross Domestic Expenditure on R&D, 2000-2010. Eurostat, http://epp.eurostat.ec.europa.eu/statistics_explained/images/2/2a/Gross_domestic_expen diture_on_R%26D%2C_2000-2010_%28%25_share_of_GDP%29.png. Table of statistics regarding European spending on research and development as a share of GDP from 2000-2010.
Hoydal, Marita. Social Policy and Welfare. The Nordic Region, http://www.norden.org/en/the- nordic-region/social-policy-and-welfare/. Website article discussing Scandinavian social policy.
Liebfried, Stephan, and Paul Pierson. European Social Policy: Between Fragmentation and Integration. Foreign Affairs, April 1996. http://www.foreignaffairs.com/articles/51754/stanley-hoffmann/european-social-policy- between-fragmentation-and-integration. Book review involved with the intricate balance of EU social policy.
Lisbon European Council 23 and 24 March 2000 Presidency Conclusions. European Parliament, March 23, 2000. http://www.europarl.europa.eu/summits/lis1_en.htm. Follow-up report to the meeting at which the Lisbon Strategy was discussed.
Lcking, Stefan. Debate About Social Dimension of Europe 2020 Strategy. European Industrial Relations Observatory, May 24, 2010. http://www.eurofound.europa.eu/eiro/2010/03/articles/eu1003039i.htm. Website article about the criticisms of Europe 2020 in terms of social policy.
The Maastricht Treaty -- Protocols. Maastricht, February 7, 1992: 36. http://www.eurotreaties.com/maastrichtprotocols.pdf. Protocols section of the Maastricht Treaty.
Natali, David. The Lisbon Strategy, Europe 2020 and the Crisis in Between. European Social Observatory, May 31, 2010. http://www.ose.be/files/publication/2010/Natali_2010_Lisbon%20StrategyEU2020&Crisi s.pdf. Report on the lessons learned from the Lisbon Strategy to be incorporated in Europe 2020.
National High School Model United Nations 2013 Council of the European Union
- 57 -
National Roma Integration Strategies: A First Step in the Implementation of the EU Framework. European Commission, May 21, 2012. http://ec.europa.eu/justice/discrimination/files/com2012_226_en.pdf. Publication expanding upon and explaining the concept of the National Roma Integration Strategies.
Padoan, Pier Carlo, and Fabio Mariani. Growth and Finance, European Integration and the Lisbon Strategy. Journal of Common Market Studies 44, no. 1 (2006): 77112. Article discussing possible EU actions to remain a global competitor.
Percep!ii "i Atitudini Privind Discriminarea n Romnia. Consiliul Na!ional pentru Combaterea Discrimin#rii, April 3, 2012. http://cncd.org.ro/files/file/Raport%20de%20cercetare%20CNCD_Discriminare.pdf. Statistical analysis of Romanian behavioral trends towards social issues.
Regional and Local Authorities. European Commission -- Europe 2020, July 16, 2012. http://ec.europa.eu/europe2020/who-does-what/regional-and-local- authorities/index_en.htm. EU website article discussing the delegation of powers to the regional and local level.
Social Policy -- The Amsterdam Treaty. European Union, http://europa.eu/legislation_summaries/institutional_affairs/treaties/amsterdam_treaty/a1 4000_en.htm. EU website article summarizing the history of EU social policy.
Tache, Ileana, and Cristina Neesham. The Performance of Welfare Systems in Post-Communist Europe: The Cases of Romania and Bulgaria. International Journal of Economics and Research 2, no. 5 (2011): 90107. Journal article discussing the post-communist bloc in terms of social policy.
The European Social Model. The European Trade Union Confederation, March 21, 2007. http://www.etuc.org/a/2771. Website article regarding the European Social Model through the lens of the EU labor force.
The European Unions Global Social Role. Journal of European Social Policy 19 (2009): 99116. Journal article discussing the effects of EU social policy abroad.
The Social Dimension of the Europe 2020 Strategy. Social Protection Committee -- European Commission, March 2011. http://ec.europa.eu/social/BlobServlet?docId=6895&langId=en. Report analyzing the social components to Europe 2020.
Trubek, David M., and Louise G. Trubek. The Open Method of Coordination and the Debate over Hard and Soft Law, 2004. http://eucenter.wisc.edu/OMC/Papers/EUC/JZPP/trubekTrubek.pdf. Book chapter about the incorporation of hard and soft law into the open method of coordination of the Lisbon Strategy.
National High School Model United Nations 2013 Council of the European Union
- 58 -
Vandenbroucke, Frank, Anton Hemerijck, and Bruno Palier. The EU Needs a Social Investment Pact. European Social Observatory, May 2011. http://www.ose.be/files/OpinionPaper5_Vandenbroucke-Hemerijk-Palier_2011.pdf. Opinion paper encouraging the development of an EU social investment pact.
Willis, Andrew. Lukewarm Reaction to Europe 2020 Plan. Business Week/EU Observer, March 5, 2010. http://www.businessweek.com/globalbiz/content/mar2010/gb2010035_390728.htm. News article discussing some initial and primarily pessimistic reactions to Europe 2020.
Zgajewski, Tania and Hajjar, Kalila. The Lisbon Strategy: Which Failure? Whose Failure? And Why? (French Community of Belgium, March 22, 2005). http://aei.pitt.edu/9308/1/Lisbon- Strategy-TZKH.pdf. An article which discusses the failures of the Lisbon Strategy.