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9.10 The European Union

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In the wake of two devastating world wars, European nations sought to replace centuries of nationalist rivalry with economic cooperation and political integration. The belief was that interdependence would make future wars not only undesirable but economically disastrous for all involved. This vision gave birth to what is now known as the European Union (EU)—a transnational alliance aiming to foster unity, prosperity, and peace on the continent.

From Coal and Steel to Continental Unity

Early Integration Efforts

The origins of the European Union lie in the European Coal and Steel Community (ECSC), established in 1952. This early agreement between six countries (France, West Germany, Italy, Belgium, the Netherlands, and Luxembourg) regulated industrial output—especially materials used in war—to ensure mutual economic growth and avoid future conflict.

In 1957, the Treaty of Rome created the European Economic Community (EEC), also called the Common Market, which aimed to reduce trade barriers and coordinate economic policy.

Eventually, in 1993, the Maastricht Treaty officially formed the European Union, expanding cooperation into areas such as foreign policy, security, and justice.


Key Idea: The EU evolved from a trade alliance into a powerful political and economic union promoting European identity and cooperation.

Benefits of Integration

EU member states agree to a set of shared principles and enjoy a wide range of benefits:

  • Free movement of people, goods, services, and capital across borders
  • Common tariffs for trade with non-EU countries
  • EU citizenship, which allows residents to live and work in any member nation
  • Access to development funds for economically weaker regions
  • Single currency (the euro) for many, though not all, member states
FeatureDescription
Free MovementCitizens can live, work, and study in any EU country
Common MarketNo tariffs or barriers between EU members
Eurozone19 of 27 EU members use the euro as their currency
EU CitizenshipRights to reside, vote in EU elections, and access services in any member state
Regional Development FundsEconomic support for poorer areas of the EU

Major Institutions of the European Union

The EU’s political structure is complex, balancing shared authority with national sovereignty. While some policies are set at the EU level, others remain under the control of member states.

InstitutionRole
European CommissionProposes and enforces EU laws; 1 commissioner per member state
European ParliamentDirectly elected by EU citizens; debates and approves legislation
Council of the European UnionRepresents national governments; adopts laws with Parliament
European CouncilHeads of state/government set EU priorities, but do not pass laws
European Central BankManages the euro and monetary policy for eurozone nations
Court of Justice of the EUEnsures uniform interpretation of EU law across member states
European Court of AuditorsMonitors EU spending and promotes financial accountability

Challenges to European Unity

The Euro Crisis (2009–2015)

The global financial crisis exposed flaws in the eurozone. Countries like Greece, Portugal, and Spain faced soaring debt and unemployment, but lacked tools like independent currency devaluation to stabilize their economies.

  • The European Central Bank (ECB) and International Monetary Fund (IMF) provided bailouts.
  • Austerity policies sparked protests and political backlash.
  • The crisis fueled skepticism about the feasibility of a unified currency.


Eurozone: A monetary union of 19 EU countries using the euro. Shared currency limits individual control over fiscal policy.

Refugee Crisis (2015–Present)

Conflicts in Syria, Afghanistan, and North Africa sparked a refugee crisis. The EU struggled to respond collectively:

  • Greece and Italy, entry points to the EU, were overwhelmed.
  • Some nations (like Germany) accepted many refugees; others (Hungary, Poland) closed borders.
  • The crisis exposed divisions in migration policy and cultural identity.

Democratic Backsliding

Concerns emerged about democratic values in Hungary and Poland:

  • Undermining of judicial independence and media freedom
  • Rise of authoritarian populism
  • EU invoked Article 7 procedures to address violations of democratic principles

Euroskepticism and Brexit

A growing number of citizens and politicians began questioning the EU’s influence:

  • Euroskeptic Parties (Like Reform UK) gained traction across Europe
  • Criticism focused on:
    • Loss of national sovereignty
    • Overregulation
    • Cultural homogenization

In 2016, the United Kingdom voted to leave the EU, a process known as Brexit, finalized in 2020.


Euroskepticism: The belief that European integration undermines national sovereignty or democratic accountability.

Balancing Sovereignty and Integration

Even as the EU expanded its authority in economic and political affairs, member states continued to balance national interests with EU obligations.

  • Countries cede control over trade and monetary policy
  • Disputes arise over immigration, environmental regulations, and judicial independence
  • Despite tensions, most European nations see continued cooperation as essential for peace, stability, and prosperity

Conclusion: The EU as a New European Identity

The European Union transformed Europe from a continent of warring states into a global economic power pursuing shared identity and integration. Though it faces challenges—from economic crises to nationalist pushback—the EU remains a vital force in shaping the future of Europe.


Key Idea: The EU redefined Europe’s political and economic order after WWII by promoting unity, prosperity, and a collective European identity, while continuing to wrestle with the complexities of nationalism, sovereignty, and shared governance.

Key Terms to Review (25)

Article 7 procedure: The Article 7 procedure is a legal framework established by the Treaty on European Union that allows the European Union to take action against member states that violate fundamental EU values, such as democracy, rule of law, and human rights. This procedure can lead to sanctions, including the suspension of certain rights of the member state within the EU, highlighting the Union's commitment to upholding its core principles.
Brexit: Brexit refers to the United Kingdom's decision to leave the European Union, a political and economic union of member states primarily located in Europe, following a referendum held on June 23, 2016. This significant event has had far-reaching implications for trade, migration, and cultural identity within Europe, reshaping relationships between the UK and EU as well as influencing attitudes towards globalization.
Common Market: A Common Market is a type of trade bloc that allows for the free movement of goods, services, capital, and labor among member countries, fostering economic integration and cooperation. This concept is crucial in understanding the evolution of European integration, as it laid the groundwork for the later formation of the European Union and contributed significantly to the rebuilding efforts in Europe following World War II.
Council of Ministers: The Council of Ministers is a key decision-making body in the European Union, composed of government ministers from each EU member state. It plays a crucial role in shaping EU legislation, coordinating policies, and representing the interests of member countries. The Council's decisions often reflect the balance of power among the EU states and are essential for the functioning of the Union's legislative process.
Court Of Justice Of The European Union: The Court of Justice of the European Union (CJEU) is a key judicial institution that interprets and enforces EU law across member states. It ensures that laws are applied uniformly and resolves legal disputes involving EU institutions, member states, and individuals. By overseeing compliance with EU treaties, the CJEU plays a crucial role in maintaining the rule of law and promoting justice within the framework of the European Union.
Democratic Backsliding: Democratic backsliding refers to the gradual decline of democratic institutions and practices, resulting in the erosion of civil liberties, weakening of checks and balances, and undermining of political pluralism. This phenomenon can manifest in various ways, such as authoritarian practices by elected leaders, curtailing media freedom, and suppressing opposition. In the context of the European Union, democratic backsliding raises concerns about the integrity of member states' governance and the EU's ability to uphold democratic values across its territories.
Euro Crisis: The Euro Crisis refers to a multi-year debt crisis that has taken place in the European Union, primarily affecting countries that adopted the euro as their currency. It emerged from a combination of factors, including excessive government debt, banking sector vulnerabilities, and the global financial crisis of 2007-2008. The crisis highlighted the economic disparities within the Eurozone and prompted significant political and economic responses from both affected countries and EU institutions.
European Data Protection Supervisor: The European Data Protection Supervisor (EDPS) is an independent supervisory authority established to ensure that European Union institutions and bodies comply with data protection laws. It plays a crucial role in promoting the right to privacy and protecting personal data of individuals within the EU, especially in the context of the increasing digitalization of society and the complexities of data handling.
European Coal and Steel Community (ECSC): The European Coal and Steel Community (ECSC) was an intergovernmental organization established in 1951 to create a common market for coal and steel among six European countries: Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. This was a crucial step towards economic integration in Europe, promoting cooperation and preventing further conflict after World War II, while laying the groundwork for the eventual formation of the European Union.
European Investment Bank: The European Investment Bank (EIB) is the lending arm of the European Union, established in 1958 to provide finance and expertise for sustainable investment projects that contribute to EU policy goals. The EIB plays a crucial role in fostering economic growth and regional development by funding infrastructure projects, promoting innovation, and supporting environmental initiatives across Europe.
European Economic Community (EEC): The European Economic Community (EEC) was an international organization established in 1957 to promote economic integration among its member states through a common market and customs union. The EEC aimed to foster economic cooperation, prevent conflict, and lay the groundwork for political unity in post-war Europe, ultimately evolving into the European Union (EU).
European Environment Agency: The European Environment Agency (EEA) is an agency of the European Union established in 1993, aimed at providing reliable information on the environment to support sustainable development and to help in the formulation of environmental policies. It plays a crucial role in monitoring and assessing environmental data across Europe, which assists EU member states and institutions in making informed decisions regarding environmental protection and management.
European Ombudsman: The European Ombudsman is an independent and impartial authority responsible for investigating complaints about maladministration within the institutions and bodies of the European Union. Established in 1995, the Ombudsman plays a crucial role in enhancing transparency, accountability, and good governance in the EU by addressing issues such as delays, discrimination, and lack of information in the EU's operations.
European Food Safety Authority: The European Food Safety Authority (EFSA) is an agency of the European Union responsible for assessing and communicating risks associated with the food chain, ensuring high standards of food safety across member states. Established in 2002, EFSA plays a crucial role in providing independent scientific advice and information to policymakers, helping to protect consumers from food-related risks and enhancing public confidence in the food supply.
European Union: The European Union (EU) is a political and economic union of 27 European countries that have chosen to work together to promote peace, stability, and economic cooperation. Established to enhance trade and political unity after World War II, the EU has evolved into a significant entity that influences global economics, migration policies, and international relations.
Euroskepticism: Euroskepticism refers to a critical or negative stance towards the European Union (EU) and its integration process, questioning the benefits and impacts of EU membership on national sovereignty and identity. This perspective can range from outright opposition to the EU to advocating for reforms within the organization, reflecting concerns about bureaucracy, democratic legitimacy, and economic implications of integration.
Law and Justice Party: The Law and Justice Party (PiS) is a Polish political party founded in 2001, known for its conservative and nationalist positions. It emphasizes traditional values, social conservatism, and a strong stance against immigration, as well as promoting national sovereignty in the context of the European Union's policies. The party's governance has often sparked debates about the rule of law and democracy in Poland, making it a significant player in the EU's political landscape.
Member states of the EU: Member states of the EU are countries that have joined the European Union, a political and economic union established to foster cooperation and integration among European nations. These member states share common policies and benefit from various programs, contributing to economic stability, political collaboration, and cultural exchange across Europe.
Refugee Crisis: The Refugee Crisis refers to the large-scale displacement of individuals who flee their home countries due to conflict, persecution, or violence, seeking safety and security in other nations. This phenomenon has significant implications for international relations, humanitarian responses, and the social and economic fabric of host countries, particularly within the context of the European Union where migration policies and integration efforts are heavily influenced by these influxes of refugees.
The European Central Bank: The European Central Bank (ECB) is the central bank for the eurozone, responsible for managing the euro and implementing monetary policy for its member states. Established in 1998, the ECB plays a crucial role in maintaining price stability and overseeing the banking system within the European Union, contributing to economic stability and growth across member nations.
The European Council: The European Council is a key institution of the European Union (EU) that consists of the heads of state or government of the member countries, along with its president and the president of the European Commission. It plays a crucial role in setting the EU's overall political direction and priorities, addressing major issues that affect the union as a whole, such as economic policies, foreign affairs, and security matters.
The European Commission: The European Commission is the executive branch of the European Union (EU) responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU. It plays a crucial role in shaping EU policies and ensuring that member states comply with EU laws, acting as a guardian of the treaties.
The European Court of Auditors: The European Court of Auditors is an institution of the European Union that oversees the financial management of EU funds. It plays a crucial role in ensuring that taxpayers' money is spent efficiently and correctly, thus supporting transparency and accountability within the Union's financial activities. The Court assesses the legality and regularity of the transactions and provides independent reports that inform both EU institutions and citizens about financial practices.
The European Parliament: The European Parliament is one of the key institutions of the European Union, representing the interests of EU citizens and acting as a co-legislator alongside the Council of the European Union. It plays a crucial role in shaping European laws and policies, overseeing the budget, and holding other EU institutions accountable. The Parliament’s powers have evolved significantly since its inception, making it a central player in the EU's legislative process.
Viktor Orbán: Viktor Orbán is a Hungarian politician who has served as Prime Minister of Hungary since 2010, known for his strong nationalist policies and controversial governance style. His leadership has raised concerns regarding the erosion of democratic norms in Hungary and has sparked significant debate within the context of the European Union, particularly regarding rule of law and human rights.