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The European Union
The European Union: • Monday, February 20 History, Structure, Future – President of European Council Donald Tusk (former President of Poland Senior Scholars Spring 2017
Prof. Kenneth F. Ledford [email protected] 368-4144
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Monday, February 20 – President of European Council Donald Tusk (former President of Poland – President of European Commission Jean-Claude Juncker (former Prime Minister of Luxembourg)
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Monday, February 20 • February 17-20, Munich Security Conference – Ursula von der Leyen, German Defense Minister
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
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DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Deep concern about European project by early 1980s – “Eurosclerosis” – Political • France under conservative rule strongly intergovernmental • Strong conflict over CAP and process reform – Economic and technical • Non-tariff, non-quota barriers to trade • Physical barriers • Technical barriers • Tax barriers • De facto discrimination against imports
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union The European Union
• Four stages • Procureur du Roi v. Benoit and Gustave Dassonville, Case – Landmark 1970s jurisprudence of European Court of Justice 8/74 (1974) – Political changes within EEC and Member States that permitted – Liquor wholesalers in Belgium wanted to sell Scotch whisky election of Jacques Delors as President of Commission in 1985 – Negotiations that led to enactment of Single European Act (SEA) in 1986 – Monumental changes embodied in SEA, with its goal of Completing the Internal Market by December 31, 1992
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The European Union
• Procureur du Roi v. Benoit and Gustave Dassonville, Case 8/74 (1974) – Liquor wholesalers in Belgium wanted to sell Scotch whisky – A Belgian competitor had exclusive dealing arrangement with UK exporters, so Dassonvilles could not buy from Scotland – But could buy from France – But France did not require certificate of origin – 1934 Belgian law required importers/wholesalers to furnish certificate of origin – Dassonvilles provided evidence of Scottish origin from French register – Belgium prosecuted for forging a certificate of origin
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union The European Union
• Procureur du Roi v. Benoit and Gustave Dassonville, Case • Procureur du Roi v. Benoit and Gustave Dassonville, Case 8/74 (1974) 8/74 (1974) – Par 5: All trading rules enacted by Member States which are capable of – Par. 6: In the absence of a Community system guaranteeing for hindering, directly or indirectly, actually or potentially, intra- consumers the authenticity of a product’s designation of origin, if a Community trade are to be considered as measures having an effect Member State takes measures to prevent unfair trade practices in this equivalent to quantitative restrictions. connection, it is however subject to the condition that these measures should be reasonable and that the means of proof required should not act as a hindrance to trade between Member States and should, in consequence, be accessible to all Community nationals. – Reasonable – Means of proof not hindrance to trade – No discrimination between domestic and foreign nationals
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Rewe-Zentral AG v. Bundesmonopol für Branntwein, Case 120/78 (1979) – Cassis de Dijon Case
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The European Union
• Rewe-Zentral AG v. Bundesmonopol für Branntwein, Case 120/78 (1979) – Large supermarket chain applied for license to import and sell Cassis de Dijon – License refused because the alcohol content was too low under German law • German law required liqueurs to be at least 32 percent alcohol • French liqueurs range from 15 to 20 percent; this one 20 percent – Rewe argued that this was a measure having an equivalent effect to a quantitative restriction under Article 28/34
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Rewe-Zentral AG v. Bundesmonopol für Branntwein, Case 120/78 (1979) – Par. 9: The government of the Federal Republic of Germany, intervening in the proceedings, put forward various arguments which, in its view, justify the application of provisions relating to the minimum alcohol content of alcoholic beverages, adducing considerations relating on the one had to the protection of public health and on the other to the protection of the consumer against unfair commercial practices.
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union The European Union
• Rewe-Zentral AG v. Bundesmonopol für Branntwein, Case • Rewe-Zentral AG v. Bundesmonopol für Branntwein, Case 120/78 (1979) 120/78 (1979) – Par. 10: As regards the protection of public health the German – Par. 11: Such considerations are not decisive since the consumer can government states that the purpose of the fixing of minimum alcohol obtain on the market an extremely wide range of weakly or moderately contents by national legislation is to avoid the proliferation of alcoholic alcoholic products and furthermore a large proportion of alcoholic beverages on the national market, in particular alcoholic beverages with beverages with a high alcohol content freely sold on the German a low alcohol content, since, in its view, such products may more easily market is generally consumed in a diluted form. induce a tolerance towards alcohol than more highly alcoholic beverages.
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The European Union The European Union
• Rewe-Zentral AG v. Bundesmonopol für Branntwein, Case • Rewe-Zentral AG v. Bundesmonopol für Branntwein, Case 120/78 (1979) 120/78 (1979) – Par. 12: The German government also claims that the fixing of a lower – Par. 13: However this line of argument cannot be taken so far as to limit for the alcohol content of certain liqueurs is designed to protect regard the mandatory fixing of minimum alcohol contents as being an the consumer against unfair practices on the part of producers and essential guarantee of the fairness of commercial transactions, since it distributors of alcoholic beverages. . . . This argument is based on the is a simple matter to ensure that suitable information is conveyed to the consideration that the lowering of the alcohol content secures a purchaser by requiring the display of an indication of origin and of the competitive advantage in relation to beverages with a higher alcohol alcohol content on the packaging of products. content, since alcohol constitutes by far the most expensive constituent of beverages by reason of the high rate of tax to which it is subject.
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union The European Union
• Rewe-Zentral AG v. Bundesmonopol für Branntwein, Case • Rewe-Zentral AG v. Bundesmonopol für Branntwein, Case 120/78 (1979) 120/78 (1979) – Par. 14: It is clear from the foregoing that the requirements relating to the minimum – Doctrine of mutual recognition alcohol content of alcoholic beverages do not serve a purpose which is in the general interest and such as to take precedence over the requirements of the free movement of – Proportionality goods, which constitutes one of the fundamental rules of the Community. . . . It therefore • Verhältnismäßigkeit appears that the unilateral requirement imposed by the rules of a member state of a • Doctrine of least restrictive means minimum alcohol content for the purposes of the sale of alcoholic beverages constitutes • Labeling not a prohibition an obstacle to trade which is incompatible with the provisions of Article [28/34] of the Treaty. . . . There is therefore no valid reason why, provided that they have been lawfully produced and marketed in one of the member states, alcoholic beverages should not be introduced into any other member state; the sale of such products may not be subject to a legal prohibition on the marketing of beverages with an alcohol content lower than the limit set by the national rules.
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Cases raised two fundamental problems – Who made the decision? • A court, not even the “bureaucrats in Brussels” • Burdensome case-by-case determination, burdensome to business, and burdensome to the European Court of Justice • Crowded and delayed docket of cases – Mutual recognition and “race to the bottom” – Solution would be legislation at the Community level to harmonize trade regulations efficiently and avoid a race to the bottom
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The European Union
• May 10, 1981, Francois Mitterrand defeated Valéry Giscard d’Estaing and became President of the French Fifth Republic
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• May 10, 1981, Francois Mitterrand defeated Valéry Giscard d’Estaing and became President of the French Fifth Republic – First left government in France in 23 years – Left counterpoint to right ascendency of Thatcher (1979), Reagan (1981), and Kohl (1982) – Tried radical economic reform and failed – At first ignored EEC, then seized upon it as vehicle for market liberalization in France – Stressed closer relations with Germany
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• January 1, 1984, France assumed Presidency of Council – Six-month term – Elections to European Parliament in March – Mitterrand adopted rhetoric of European federalism – Ground for compromise was clear • Germany and Britain agreed on need for market liberalization, weak support from France • Germany and France agreed on need for procedural reform of EEC, weak support from Britain – Culminated in Fontainebleau European Council June 25-26
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The European Union
• Fountainebleau European Council, June 1984 – Resolved dispute over farm spending – Increased EEC own resources by increasing VAT from 1 to 1.4 percent – Commissioned study into possible institutional reform of EEC • Dooge Committee
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Later in 1984, Council elected French Socialist Minister of Economics and Finance Jacques Delors as President of the Commission, for term to begin January 1, 1985
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Later in 1984, Council elected French Socialist Minister of Economics and Finance Jacques Delors as President of the Commission, for term to begin January 1, 1985 – Thatcher insisted on Lord Arthur Francis Cockfield as Vice-President
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The European Union
• June 14, 1985, Delors submitted to European Council for its June 28-29 meeting in Milan a White Paper – “Completing the Internal Market” – Drafted by Lord Cockfield – Proposed 310 named measures to stimulate economic recovery; guarantee free movement of persons, goods, services, and capital; and to merge national markets into a single market – Set deadline of December 31, 1992 for completion – Goal of eliminating remaining legal, fiscal, and technical internal boundaries by “harmonizing” national laws and regulations on European level
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union The European Union
• At same time Dooge Committee delivered its report • Political agreement reached at Luxembourg European Council – Recommended transformation of EEC into European Union in December 1985 – Not only single economic area, but European external identity • Nine Member States signed Single European Act at – Strengthening European Monetary System (EMS) Luxembourg on February 17, 1986 – Development of common policies on environment, cultural, and social – Denmark referendum affairs – Denmark, Greece, and Italy signed on February 28 – Stressed more general use of qualified majority voting in Council – Ireland ratified in June 1987 – SEA came into force on July 1, 1987
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
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The European Union
• SEA both committed EEC to completing internal market and introduced major reforms into governance that made EEC more effective – Cooperation procedure with European Parliament – Increased use of Qualified Majority Voting
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Qualified Majority Voting – France, Germany, Italy, Britain 10 votes each – Spain 8 votes – Belgium, Netherlands, Greece, Portugal 5 votes each – Denmark and Ireland 3 votes each – Luxembourg 2 votes – Total: 76 – Passage required 54 votes if Act proposed by Commission – Passage required 54 votes from at least 8 (of 12) Member States if Act not proposed by Commission
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Schengen Agreement and Convention – Signed at Schengen, Luxembourg, June 14, 1985
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The European Union
• Schengen Agreement and Convention – Originated entirely outside of framework of EEC – 5 of 9 Member States – Proposed measures to gradually abolish border checks at common borders • Benelux had already abolished such checks • Reduced speed vehicle checks without stopping • Border area residents allowed to cross outside of checkpoints • Harmonization of visa policies
DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
The European Union
• Schengen Agreement and Convention – Schengen Convention of 1990 supplemented Schengen Agreement – Move to complete abolition of internal border controls and common visa policy for outsiders – Operates much like a single state for international travel purposes – Consists of 26 European countries with population of 400 million – Incorporated into EU law by Treaty of Amsterdam in 1999 • Opt-outs for Ireland and UK – Includes several non-EU states
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DEPARTMENT OF HISTORY DEPARTMENT OF HISTORY
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The European Union
• Schengen Agreement and Convention – In 2016, 7 Schengen countries temporarily reintroduced some border controls • Austria, Denmark, France, Germany, Norway, Poland, and Sweden
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