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The European Union:


European Union
• established by the Treaty of Maastricht on 1 November 1993

• ensuring the free movement of people, goods, services, and capital

• over 500 million citizens

• generates an estimated 30% share (US$ 18.4 trillion in 2008) of the

nominal gross world product

• 22% (US$15.2 trillion in 2008) of thePPP gross world product.[12]

• After effects of WWII, bipolar distribution of power in the world.

• 1946, British Prime Minister Winston Churchill delivers speech at

Zurich University.

• 1948,the Benelux (Customs Union between Belgium, the

Netherlands and Luxembourg) introduced a common external tariff.

• 1948, the Organisation for European Economic Cooperation

(OEEC) was established
• 1949,setting up of the Council of Europe
• 1950, the Schuman Declaration, prposal of EDC.

• 1951,Treaty of Paris-European Coal and Steel Community (ECSC) 6

members- France, Germany, Italy, Belgium, Low Countries and Luxemburg

• 1954, EDC aborted

• 1957, Treaties of Rome signed by the 6, establishing the European Economic

Community (EEC) and the European Atomic Energy Community (Euratom).
The "British problem" and the
enlargement of the EEC in
• The commercial, political and sentimental bonds with its colonies
and former colonies, most of them integrated in the Commonwealth.

• refusal to join a customs union

• Britain was totally opposed to embarking on a project whose long-

term aim was to surrender the sovereignty of national states to
supernational European Institutions.

• United Kingdom joined the EEC. Denmark and Ireland

accompanied it. The Europe of the Nine was born.
• 1975 the denominated European Council was instituted.

• 1979, the European Monetary System (EMS), the European

Currency Unit (ECU) was born.

• In 1984, a group of European MPs, chaired by the Italian

Altiero Spinelli, introduced in Parliament a project of Treaty of the
European Union.

• 1986, Single Europeon Act

The Treaty of Maastricht
• the initial economic objective of the Community, building
a common market, was outstripped and, for the first time,
a distinctive vocation of political union was claimed.

• changed the official denomination of the EEC.

Henceforth, it will be known as European Union.
Founding fathers
New ideas for lasting peace and prosperity…

Konrad Adenauer Alcide De Gasperi

Winston Churchill

Robert Schuman Jean Monnet

The EU symbols

The European anthem

The European flag

Europe Day, 9 May

The motto: United in diversity
23 official languages
Eight enlargements
1952 1973 1986

1990 1995 2004 2007

The big enlargement:
healing the division of Europe
1989 Fall of Berlin Wall – end of Communism
EU economic help begins: Phare programme

1992 Criteria set for a country to join the EU:

• democracy and rule of law
• functioning market economy
• ability to implement EU laws

1998 Formal negotiations on enlargement begin

2002 Copenhagen summit agrees enlargement

2004 10 new EU members: Cyprus, Czech

Republic, Estonia, Hungary, Latvia,
Lithuania, Malta, Poland, Slovakia, Slovenia

2007 Bulgaria and Romania join the EU

© Reuders
Croatia, Former Yugoslav Republic of Macedonia, Turkey
The treaties – basis for democratic
cooperation built on law
1952 1958
The treaties of Rome:
The European Steel and Coal Community
The European Economic Community
The European Atomic Energy Community

2007 1987
Treaty of Lisbon (signed) The European Single Act:
the Single Market

2003 1999 Treaty of European Union
Treaty of Nice Treaty of Amsterdam – Maastricht
The treaty
The Lisbon Lisbon- treaty
taking- Europe
taking Europe
into into
the 21st century the 21st century
The Treaty will make the European Union:

More efficient Simpler processes, full-time president for the

Council, etc.

More democratic Stronger role for the European Parliament

and national parliaments, "Citizens initiative", Charter of
Fundamental Rights, etc.

More transparent Clarifies who does what, greater public access

to documents and meetings, etc.

More united on High Representative for Foreign Policy, etc.

the world stage

More secure New possibilities to fight climate change

and terrorism, secure energy supplies, etc.

Signed in December 2007 – enter into force when ratified by all

27 EU countries.
How rich is the EU compared to the rest
of the world?
37 300

27 800

24 700

10 793
10 035 10 000

6 400

1 326

EU China Japan Russia United States EU China Japan Russia United States

Size of economy: Gross Domestic Product in Wealth per person: Gross Domestic Product
billion of euros, 2006 per person in Purchasing Power Standard, 2007
The EU – a major trading
The EU – a major trading power

Share of world trade Share of world trade
in goods (2006) in services (2005)


Others 44.9%
50.5% United States

Japan United States

6.6% 18.4%
China Japan
3.8% 6.9%
Three key players

The European Parliament

- voice of the people
Hans-Gert Pöttering, President
of the European Parliament

The council of Ministers

- voice of the Member States
Javier Solana, Secretary-General of the Council
of the European Union and High Representative
for Common Foreign and Security Policy

The European Commission

- promoting the common interest
José Manuel Barroso, President
of the European Commission
Three pillars

The European Union

European Common Police and

Community foreign and judicial
domain security cooperation
(most of policy in criminal
common matters

The Treaties
European Communities Common Foreign and Security
and Judicial Co-operation

European Community (EC): Foreign policy: •Drug trafficking and

•Customs union and Single market •Human rights weapons smuggling
•Common Agricultural Policy •Democracy •Terrorism
•Common Fisheries Policy •Foreign aid •Trafficking in human beings
•EU competition law Security policy: •Organised Crime
•Economic and monetary union •European Security and Defence
Policyand fraud
•EU-Citizenship •EU battle groups
•Education and Culture •Helsinki Headline Goal
•Trans-European Networks Force Catalogue
•Consumer protection •Peacekeeping
•Research (e.g.
7th Framework Programme)
•Environmental law
•Social policy
•Asylum policy
•Schengen treaty
•Immigration policy
European Coal and Steel Community
(ECSC, until 2002):
•Coal and steel industry
European Atomic Energy Community
•Nuclear power

First pillar Second pillar Third pillar

• the first pillar, the central one, alludes to the Community dimension and
comprises the arrangements set out in the EC, ECSC and Euratom Treaties,
i.e. Union citizenship, Community policies, Economic and Monetary Union, etc

• the second pillar is concerned, the Common foreign and security policy (CFSP)
allows to undertake common actions in foreign policy. The European Council,
where decisions must be adopted unanimously, agrees the principles and
general orientations of the CFSP.

• The third pillar is based on

Police and judicial cooperation (PJC) in criminal matters as terrorism, illegal
immigration, asylum policy, drugs traffic, international crime, etc.
The EU institutions

European Council (summit)

European Council of Ministers

European Commission
(Council of the EU)
Court of Court of Economic and Social
Justice Auditors Committee Committee of the Regions

European Investment Bank Agencies European Central Bank

• India is an important trade partner for the EU and a
growing global economic power

• Although it is far from the closed market that it was

twenty years ago, India still also maintains substantial
tariff and non-tariff barriers that hinder trade with the

• The EU and India hope to increase their trade in both

goods and services through the Free Trade
Agreement (FTA) negotiations that they launched in
India is10th in the list of the EU’s main trading partners
in 2008.

EU accounts for 21% of India’s total exports and 16%

of India’s total imports.

India accounts for 2.4% of EU’s total exports and 1.9%

of the EU’s total imports. EU has been the biggest
investor in India since 2000.
EU has a strong cooperation with India in the fight
against poverty
Trade Statistics
Trade in goods
• EU goods exports to India 2007: €26.2 billion
• EU goods imports from India 2007: €29.4 billion

Trade in services
• EU services exports to India 2007: €6.7 billion
• EU services imports from India 2007: €5.5 billion

Foreign Direct Investment

• EU outward investment to India 2006: €2.5 billion
• Indian inward investment to EU: €0.5billion
India's integration with the
global economy

• EU-India trade has grown impressively and

doubled from €28.6billion in 2003 to over
€55billion in 2007

• EU investment to India has more than tripled

since 2003 from €759million to €2.4billion in

• trade in commercial services has more than

doubled from €5.2billion in 2002 to €12.2billion
in 2006
Overall cooperation
framework with India
• In 2004 India became one of the EU's "strategic

• Since 2005, the EU-India Joint Action Plan, revised

in 2008, aims at realising the full potential of this
partnership in key areas of interest to India and the
Problem Areas
EU wants quick action from US on Climate Policy to put
pressure on India and China

Issues such as the CTBT and NPT have a difference of


India unhappy with EU over drug seizures.

Non-trade issues between India & EU are a problem so need

to be addressed under FTA

Hindus are proving a hinderance to EU in their mission in

• EU-India relations are growing with every passing day

• EU recognises India as a force to reckon with and is

aware that it is making rapid growth and development

• Security is a common challenge between EU and India

and both work towards anti-terrorism

• Trade between EU and India is also growing rapidly