European Union

Chapter 25
Ms. Keely

European Union (EU)

Importance of the EU
Purpose of the EU Policies and
Directives
Decision Making Process
Interest Groups

European Union
Definition: The EU is a trading bloc of countries
which has common aims in regards to ECONOMIC,
MONETARY & POLITICAL issues
What are the benefits of EU membership to
Ireland?

EU grants, Single European Market, TNCs, Policies

(Economic & Competition), Standards of Living

Importance of the EU?

Peace and Stability, Large Market, Free Trade Area,

Harmonisation of Laws, Funding, Sing Currency (Eurozone)

EU Legislation
Regulation

An EU law that supersedes national law of member states.

Must be implemented immediately.
EG: 48 hour working time directive

Decision

Applies to only one country, business of citizen who must obey it

immediately

EG: In 1996, the EU fined Aer Lingus 800,000 for unfair competitive trading

Directive

A law that all EU member states must obey. National laws must be
changed first. Given a deadline to implement new law. EG: Directive
on Unfair Commercial Practices (2008)

EU Structures/ Institutions
European Commission
Council of Ministers / Council of EU
European Parliament
Court of Auditors
Court of Justice

European Commission
EU President -Jose Manuel Barroso
Concerned with Day to day running of
EU
Roles
Propose new laws and Implements them
Prepares EU Budget
Acts with complete political independence
Acts as guardian of treaties
Can take offending parties to court

Ireland : water treatment plant in Dublin

Answerable to parliament

European Parliament
786 total. No of MEPs depends size of country.
Ireland has 13. Located Brussels
Role
Debates new legislation
Ammends/approves budget
Supervises commission. It has the power to
dismiss the Commission by censure
Approves appointment of Commission
Advises council

Council of EU/ Ministers

Main decision making body / EUs
highest level policymaking body
Role
Sets EU political goals
Co-ordinatetes national policies
Controls EU budget
Makes key decisions: economic and political
Heads of govt meet twice a year at EU summits

Decision making process of the

EU
1. The EU commission proposes
ideas
2. The EU Parliament debates it and
sends amendments back to
3. The EU Commission, which
amends the idea and sends it to
4. The EU Parliament and Council
of the EU, who have the final say.

Court of Justice
27 Judges, Luxembourg
Deals with Breaches of EU laws
Role
Supervise the implementation of EU policies
Adjudicate disputes between EU Institutions
Decides action to be taken with cases
Settle disputes regarding application of legislation

Court of Auditors
27 members, Luxembourg
Role
Management of Union Finance
Checks Revenue collected
Annual report sent to Parliament of findings

EU Common Policies
SEM Single European Market
EMU Economic Monetary Union
CAP Common Agricultural Policy
CFP Common Fisheries Policy
Common Competition Policy
Common Social Charter
EU Environment Policy

Single European Market

(SEM)
No barriers to goods, services, capital, labour
Removal of barriers to trade
Common standards of goods
Tax harmonisation
Public procurement Directive
Free movement of capital
Free movement of labour
EU Trademarks, Patents & Copyright

Benefits / Drawbacks
Economies of scale
Increased exports
Larger markets
Expansion of firms
Mobility of labour
Better choice of
imports

Competition
Cheaper prices
Risk of business
failure
Unemployment
Redundancies
Indigenous firms
swallowed up

European Monetary Union

(EMU)
Single currency ECB sets
Single monetary policy for all
members, eg interest rates
Common economic and budgetary
policies, ie they do the same things
regarding their budgets

Benefits / Drawbacks
No currency
change
Reduced bank
charges
Easier to export
Price transparency
Easier to control
inflation

Greater competition
Govts lose power
over
budgets/monetary
policies
Govts can be fined
for breaking budget
limits

Common Agricultural PolicyCAP

Designed to
Have single market for agricultural
produce
Encourage consumers buy EU produce
Finance intervention buying
Increase farm income through
guaranteed pricing
Train farmers

Benefits/ Drawbacks
Financial Support
Grants
Food Production
increased
Higher standard of
living
Fair Price on
Products

Over reliance on
agricultural products
Reduced
employment due to
mechanisations
Overproduction
Pollution
Dependence on
price and market
supports

Common Fisheries Policy

Designed to
Support fishermens income Funding
Offer reasonable prices for consumers
Introduce fish quotas / preserve stocks
Provide structural funds to upgrade the
fleet or for fishermen to leave the
industry

Competition Policy
Ensures
Fair competition in EU
Consumers get better choice/
lower prices
Less aid can be given to local firms
State monopolies must resort to
job cuts in order to survive if they
get into financial difficulty

EU Environment Policy
Environmental impact assessments
are required before any major
industrial development can take
place
Green taxes
Consumer info improved on
packaging
Green technologies encouraged

EU Structural Policies
Designed to improve the structures of
the EUs regions and industries
European Regional Development Fundpoorer countries
European Social Fund-training/ retraining
Ireland has benefited greatly from all funds between
2000-2011 Ireland received 4.5 billion from EU
structures funds for infrastructural development

Role of Lobby Groups in

the EU
Lobby MEP by phone, written, e-mail EU
Use PR to persuade peoples opinions
Organise demonstrations and strikes
Interest groups meet with commissioners make them
aware of problems before they even think of new ideas.
up an office in Brussels
Examples: IFA, ICTU, IBEC have offices in Brussels to
be close to EU Commission
Examples: IFA lobbied in Brussels about Milk quotas,
which were due o be abolished in 2015

EU Keywords &
Abbreviations

EU
Trading Bloc
SEM: Single European Market
European Commission
Council of Ministers / Council of EU
European Parliament
Court of Auditors
Court of Justice
CAP Common Agricultural Policy
CFP Common Fisheries Policy
EMU
Economic and Social Committee ECOSOC
Regulation/ Decision/ Directive
Interest Groups
MEPs

Exam Questions
Short Questions
2016 Q10/ 2013 Q9/ 2010 Q4/ 2009 Q10/ 2004 Q8/
Q3/ 2001 Q7

2007

Long Questions Section 3

2015 Q3 (c) / 2014 Q3 (b)(c)/ 2013 Q3 / 2012 Q 3(c)
2011 Q 3(c) / 2010 Q 3(c) / 2009 Q 3(a) / 2008 Q3
2006 Q 3(a)(b) / 2005 Q 3(a)(b)/ 2003 Q 3(a)(b)
/
2001 Q 3 (b)