I. Sytnik

EUROPEAN REGIONAL INTEGRATION: THE PRECONDITIONS AND AIMS OF FOUNDATION

Introduction investigating the problems of war and peace in On the nowadays stage of international Europe, he proposed to establish the All- relationship, the national economies, European parliament (European Dyet, irrespective of their quantity and quality Parliament or Estates) [1]. In 1728 the French characteristics, are functioning in terms of writer and politician Charles de Saint-Pierre developing globalization processes. Moreover, it proposed to create the European League should be taken into account that economic containing 18 independent countries [2]. development is multidimensional and multi- However, at that period «…the states could not factor process, which often includes instability refuse their old ambitions that is why there were and periodic crisis phenomenon. The special practically no trends towards the union of way of protection of national economies from different countries.»[3] global instability is formation of regional Only after the World War I, that lead to integration unions that make preconditions for ruining of European economic and political the role of states on the world political and systems, the idea of arranging united European economic arena. area again appeared in the works of outstanding 1. The preconditions of EU foundation scientists and politicians. The foundation of the European Union is In 1923 the Austrian politician count doubtlessly one of the most important Richard Coudenhove-Kalergi published a geopolitical events of the second part of 20th declaration named “Paneuropa” where he century. It has not only served as a fundament introduced the plan of founding a confederation for political, economic and social changes in uniting all European countries. “Paneuropa is Europe, but also significantly influenced on the not an instrument of today’s European policy, balance of powers in the whole world. it’s completely opposite one. This is a new During the 19th and first 10 years of 20th source of power, new stream of ideas that will century Europe was the world leader in science, gain more and more influence every year”, he economy and culture. Due to founded colonial wrote [4; 5]. empires and trade companies Europeans took In 1929, on the Nation’s League leading positions. However, the First (1914- Assembly the French prime-minister, the 1918) and the Second (1939-1945) world wars laureate of Nobel prize for peace (1926) were followed by catastrophic consequences for introduced the idea of creating a federation of Europe. Finally, only with the beginning of 90s European countries on a solidarity basis, in the process of revival of European economic and order to achieve economic and political political power gained its actual institutional prosperity of European countries. basis. The famous English economist John Nowadays European Union is the most Maynard Keynes also supported the idea of institutionally perfect integration community of creating a political and economic union of the modern world. The formation of EU had its European countries. In 1931, French politician historical, economic, political, social and Edward Herriot published a book «The United cultural preconditions which began to form long States of Europe». Two years later, the British before the official date of Union foundation (1 politician and academician, James Arthur Salter Nov 1993). published a book with the same name. The movement for united Europe arose in Unfortunately, world economic crisis of 1930s early 17th century. The first author of the idea of and the World War II interfered with the United States of Europe was an English implementing the ideas of united Europe. «The politician William Penn. In 1693, while barbarism in Europe of the first part of 20th ______© Sytnik Inessa – Sc. Cand. (Econ.), Assistant Professor. Donetsk State University of Management. . Київський національний університет імені Тараса Шевченка.

ISSN 1562-109X century was so devastating that it could impress presented a speech in favor of European even the wildest savages. While the unification. Later, this idea supported the French opportunities of constructive development were statesmen Robert Schuman and Rene Pleven, as higher than ever before, the Europeans were well as by the prominent French economist Jean involved into the range of wars that killed more Monnet, who is considered to be the main people than all the wars before. … The horror of architect of European unity. Thus, after the fascism and communism together with two cruel Second World War, the idea of the united world wars resulted in deaths, ruins and Europe sounded with the new force. degradation»[3]. As a consequence, at the In 1949, the Council of Europe was beginning of 1945 almost all past achievements established; this organization exists up to this of European civilization were missed. The day. Council of Europe, however, was (and still European continent was divided into two is) something of a regional equivalent of the competing economic and military blocks, whose UN, which concentrated its activities on issues competition lasted unproductively for at least 40 of human rights in European countries. years. The European political, economic and On May 9, 1950 the French Foreign Mi- military power was given to the USA and nister Robert Schuman presented in Paris, so USSR. However, the fact of dividing Europe called "Schuman’s Plan", which introduced the after the Second World War accelerated the new way of formation of economic, political and wave of European uniting movement. military structures of Europe. He proposed cre- The new push to thoughts about the trends ating a single supreme authority to oversee the of European development was provided by an joint Franco-German coal and steel production outstanding statesman and political leader of (this idea was developed in 1945 by Jean Great Britain Winston Churchill. On the Monnet [7]). Thus were laid the foundations of September 19, 1946, in Zurich, he made a modern European Union. speech, which stated that the post-war tragedy in On April 8, 1951 in Germany, Belgium, the heart of Europe should be finally put to an Netherlands, Luxembourg, France and Italy and, and stressed the necessity of creating the signed a treaty establishing the European Coal United States of Europe. "If Europe unites once, and Steel Community (ECSC), whose goal was then, fortunately, there will be no more to unify European resources of steel and coal. boundaries. And this will bring wealth and fame This agreement became valid from July 1952. to 300 or 400 million people "- W. Churchill European Coal and Steel Community was said. The very first step on this way should have the beginning of the Schuman’s Plan realization. been a partnership between West Germany and The Schuman’s plan was based on so-called France. He also proposed the "fraternal union" “Communitaristic” method, which was of three interconnected circles: British developed by Jean Monnet. This method Commonwealth, European Union and the includes four basic components: United States, whereas Britain could become a Federalization of Europe based on special chain element able to provide association of basic industries and the formation communication between the three political of "High Authority"; players [6]. Gradual process of integration, primarily 2. First steps to the EU foundation through mergers of economic interests; The implementing of W. Churchill’s ideas Integration is a way of solving social in practice were accelerated by the communist problems and improvement of the social insurgency in Prague February 25, 1948 that position of people regardless not depending destroyed a single sprout of democracy in from nationality; Eastern Europe of post-war times. Having Limitation of state sovereignty and create shocked Western societies it became a push to supranational branches of power [8]. sign the Brussels Treaty of collective security Thus, by the plan of Monnet-Schuman, from March 17, 1948 between Great Britain, European states do not disappear from the map, France and the Benelux countries (Belgium, and gradually integrate their efforts to address Netherlands, Luxembourg). the political and social-economic problems by On July 20, 1948, French Foreign giving its sovereign rights to international Minister George Bideaux before his retirement institutions, which are endowed with full authority of public power (legislative, executive European Union". and judicial). And the first step towards 3. The evolution of the European Union European integration was the single market of After the Single European Act was signed the two leading sectors of the post-war European and became valid, plans of foundation of economy - coal and steel. European Union came up to a stage of their In order to deepen economic integration practical implementation. In 1990 two of the same six countries in March 1957 signed conferences started working on the development an agreement in Rome establishing the of appropriate economic and political union. The European Economic Community (EEC), also overall result of these conferences was the known as the Common Market, and the Maastricht Treaty. On February 7, 1992 twelve European Atomic Energy Community members of the European Community (EURATOM). EEC was created primarily as a (Belgium, Germany, Italy, Luxembourg, customs union of six states and their aim was to Netherlands, France, Britain, Denmark, Finland, ensure free movement of goods, services, capital Greece, Spain and Portugal) signed the Treaty and people. EURATOM was to promote about the foundation of European Union in peaceful unification of nuclear resources of Maastricht (Netherlands). these countries. Signed In 1965, and valid from According to above-mentioned 1967, the agreement about establishing United agreement, the relations between the member Commission and forming a single unified countries were based on significant limitation of European Council, better known under the sovereignty, which caused the need for many of informal name of “Merger Agreement”. As a these constitutional reforms. The document result, three european communities (European ratification through a referendum was held and Coal and Steel Community, European Economic took over one and a half years. Finally, the Community and the European Atomic Energy European Union Treaty came into force on Community) joined together and formed the November 1, 1993. European Community. Since the entry into force of the In 1959 the European Parliament was Maastricht Treaty the substantial changes in the established, firstly playing consultative role and European integration construction were made. later the legislation one. The process of Maastricht Treaty solved the problem of development and transformation of the previous years connected with the economic and European Communities in the modern European political systems of European countries, having Union was held by, firstly, transferring more and established the three pillars: the economic and more management functions to supranational monetary union, common foreign and security level and, secondly, increasing the quantity of policy and the general policy of the Interior the participating states (from 6 to 27 members). Justice [8]. The development of economic and The European Union Treaty not only political relations between the members of the combined and synthesized into one European Communities in the 1980s caused the organizational structure of different areas of the necessity of juridical transformations that were integration process, but also marked a new stage laid down in Paris (1951) and Rome (1957) in the creation of closer union of European agreements. In this regard, in 1985 the Council nations. With the signing of the Maastricht of the European Communities decided to Treaty the powers of the European Community convene a special conference of member expanded to activities in such fields as culture, governments. After the conference in February education, youth policy, regional networks, 1986 in Luxembourg was signed the Single health care, consumer protection and others. European Act, which became valid on July 1, The next stage of development has been a 1987 after being ratified by Member States. further expansion of the number of member The Single European Act was a document associations of the integration. In 1994 in that regulated the activity of all areas of the Austria, Finland, Norway and Sweden the integration process in Europe: social, economic referendums about EU membership were held. and political integration, and clearly defined the The results on January 1, 1995 showed that main aim: "the gradual foundation of the Austria, Finland and Sweden joined the collapse of the Soviet Union (1992), the first European Union. However, most Norwegians time since World War II, the real possibility of voted against joining. merging Western and Eastern Europe appeared. After signing of the Maastricht Treaty the Eight Eastern European countries (Poland, transformations in European integration Hungary, Czechoslovakia, East Germany, association, at the same time with a number of Romania, Bulgaria, Yugoslavia and Albania), quantitative expansions, began intensely moving separated from Western Europe with "Iron in the direction of intensified reforming of the Curtain", during post-war years were moving EU law basis. One of the main points of the the same development way as the Soviet Maastricht Treaty was the reformation of republics. legislation system in 1996. On May 1, 2004 10 countries - Estonia, As a result, on October 2, 1997 the Latvia, Lithuania, Poland, Czech Republic, member countries signed a document called the Slovakia, Hungary, Slovenia, Cyprus and Malta Treaty of Amsterdam that was about - became members of the European Union, and implementing changes into the European Union on January 1, 2007 the next expansion took Treaty as well as into the European communities place - the EU was joined by two other countries agreements and some related acts. Amsterdam - Bulgaria and Romania. Treaty came into force on May 1, 1999 This extension can be called one of the The main points of the Amsterdam Treaty most ambitious projects of the EU. The run as follows: necessity of this step was largely determined by 1. The powers of the European Union and geopolitical strategy of Western Europe, the aim of the European Parliament in particular were of which was to prevent the return of Eastern significantly increased. Under the jurisdiction of European countries under Moscow's influence. the EU from that time refers visa, immigration However, the level of economic and political policy, asylum, employment policy and others. development of new EU members was much The European Union was granted special lower than the average European, which has led powers to issue regulations on criminal law and to increased budgetary expenditures in the process. leaders of the EU. 2. Amsterdam Treaty was the first one at Another problem of the EU East the Union level that affirmed the general enlargement is that the existing institutional principles of constitutional structure and system is not effective enough and requires established sanctions to Member States for further reformations. However, recent attempts breaking them. to reform the EU structural suffered fiasco - in 3. The Schengen agreement was included 2005 on the referendum France and the into the laws of the European Union. Netherlands rejected the draft European Further development of the European Constitution, what greatly slowed the formation Union took place in two areas: geographic of a united Europe. expansion to the East and institutional reform of The second attempt to form new basis for political structures. the activities of the European Union was Admission of new members to the December 13, 2007 when the Lisbon reform European Union required the development of Treaty was signed [9]. governing bodies in order to strengthen the The Reform Treaty is actually aimed to Union's supranational institutions and political replace the EU constitution. Officially the centralization in Europe. To prepare the agreement is called the Treaty of Lisbon institutional background for further EU amending the Treaty on European Union and the enlargement on February 26, 2001 the Treaty of Treaty establishing the European Community. Nice [8] was signed, which formed a new The document contains a draft reform of foundation for the functioning of the European institutions and mechanisms of decision-making, political authorities. taking into account the EU enlargement. The At the end of the twentieth century with Treaty of reforms is forecasted to clearly the fall of the Berlin Wall (1989) and the separate powers between EU institutions and national authorities. commissioners. After the Lisbon Treaty enters its force, The Reform Treaty represents great the double conception of European Union and opportunities to national parliaments for active the European Community will not exist any participation in the process of EU legislation. At more. There will be only "European Union" the same time, the European Commission is acquiring the legal status. given the right to control member countries The Reform Treaty involves the more strictly, for example, handing them to the introduction of double majority voting EU Court. procedure, which means that any decision will In the EU the number of areas on which have to be approved by votes of 55% the decision will be approved by the majority representing 65% of the EU population. voting will increase. However, this system will begin working only in Lisbon Treaty had to enter into force on 2014 with a transitional period up to 2017. January 1, 2009 after being ratified by 27 In particular, the Agreement imposes the European Union members. The process of post of EU president, appointed for two years. ratification was longer because of the Czech Furthermore, the Lisbon Treaty involves Republic and Ireland, but finally document came empowering of EU High Representative of in force from December 1, 2009. common foreign policy. The European To sum up, there were 5 main stages of Commission, which owns the EU legislative formation and development of the «United initiative will decrease the number of Europe Project»

THE STAGES OF EU FORMATION AND DEVELOPMENT Stage 1 – real economic integration European Community 1951 Paris agreement – establishing of European Coal and (Belgium, West Germany, Italy, Steel Community (ECSC) Luxembourg, Netherlands, 1957 Rome agreement – establishing European Economic France) Community (EEC) and European Atomic Energy Community (EURATOM) 1965 Agreement about ECSC, EEC and EUROATOM merger. Stage 2 – quantity expansion of regional union («West The European Community Direction») (12 members: Belgium, Great 1973 First west expansion –joining of Denmark, Ireland and Britain, Greece, Denmark, West Great Britain Germany, Ireland, Spain, Italy, 1981 Second west expansion – joining of Greece. Luxembourg, Netherlands, 1986 Third west expansion – joining of Spain and Portugal. Portugal, France) Stage 3 – political and economic reformations 1985 Schengen agreement 1986 The Single European Act (SEA) was the first major revision of the 1957 Treaty of Rome. 1992 Maastricht Treaty – the foundation of the European Union The European Union 1995 The fourth western expansion – joining of Austria, (15 members: Austria, Belgium, Finland and Sweden Great Britain, Greece, Denmark, 1997 Amsterdam agreement Germany, Ireland, Spain, Italy, 2000 Nice agreement Luxembourg, Netherlands, Portugal, France, Finland, Sweden) Stage 4 - quantity expansion of regional union («East direction») The European Union 2004 First Eastern Enlargement – joining of Estonia, Cyprus, (25 members: Austria, Belgium, Latvia, Lithuania, Malta, Poland, Slovenia, Slovakia, Czech Republic, Great Britain, Czech Republic and Hungary. Greece, Hungary, Denmark, Estonia, Cyprus, Germany, Ireland, Spain, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland Portugal, Slovakia, France, Finland, Sweden, Slovenia) 2007 Second Eastern enlargement – joining of Bulgaria and The European Union Romania. (27 members: Austria, Belgium, Stage 5 – institutional reformations. Bulgaria, Czech Republic, Great 2007- Lisboan Treaty and its ratification. Britain, Greece, Hungary, 2009 Denmark, Estonia, Cyprus, Germany, Ireland, Romania, Spain, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland Portugal, Slovakia, France, Finland, Sweden, Slovenia)

Conclusion that started in 2008, the EU should provide all The investigations showed that the the member states with certain guarantees, European Union is a system that is based on improve internal and external economic policy common economic and political interests and and influence on the stabilization globally. cultural values. All existing relations between member states are regulated by the states on Literature contractual basis. The leading role in the 1. Hans Fantel, William Penn Apostle of Commonwealth is devoted to sovereign states. Dissent. – N.Y.: William Morrow & Co., 1974. The Member countries form the international – P. 6. law regulations and create intergovernmental 2. Hont I. Jealousy of Trade: International organizations by signing special agreements that Competition and the Nation-State in Historical partly delegate powers of government. The Perspective. Cfmbridge, MA: Harvard effectiveness of the European Union system University Press, 2005. – 541 p. functioning depends on both each state activities 3. Дэвис Н. История Европы / Н. Дэ- and the super-state organizations. вис. – М.: АСТ Москва: Хранитель, 2006. – The history of intensive formation of the 943 с. Commonwealth of European countries began 4. Coudenhove-Kalergi R. Pan-Europe. after the Second World War. The development N.Y.: Alfred A. Knopf, 1926. – 215 p. of relations between the countries is trending 5. Coudenhove-Kalergi R. Die Europische both towards deeper economic and political Nation. – Stuttgart: Deutsche Verl., 1967. – cooperation, and towards geographical 163 S. expansion. However, in early 2010 the European 6. Роуз H. Черчилль. Бурная жизнь / Union faced a necessity of institutional Н. Роуз / пер. Е.Ф. Левиной. – М.: Изд-во modernization that would help to improve the «АСТ», 2004. integration of all regional associations as well as 7. Jean Monnet. The First Statesman of to create an economically strong and politically Interdependence by Francois Duchene, 1994. cohesive Europe, that would play main role on 8. Право Европейского Союза: учебник the global level. The especially important для вузов / под ред. С.Ю. Кашкина. – М.: question touches modernization of the EU Юристъ, 2004. – 925 с. institutions and foundation of a strong European 9. Лиссабонский договор center. In the situation of global financial crisis [Электронный ресурс]. – Режим доступа: (http://www. eiroinfo.lv/krievu/lisabona_ index.html).