European Union

Editor's Notes Twelve new Member States. A robust security structure. New programs to promote developm ent and stabilization. A leading role in the global effort to ...
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EuropeanUnion �The ty, and the rule of law, RTICLE REATYON RAMERICANS s Notes welve new Member States.A robust security structure.New programs to promote develop- ment and stabilization.A leading role in the t to combat terrorism.These are among the many recent or ongoing changes to the European Union described in this guide as the EU extends its social and economic agenda into the 21st century to promote democracy and stability in Europe and around the world. This �Guide for Americans�covers all incarnation as the six-nation European Coal and Steel Community created by six nations in 1993 with the implementation of the Maastricht developments, including the admission of 12 The term �European Union�(EU) is used in this brochure whenever appropriate.Other terms, such as �European Community�(EC) and �European Coal and Steel Community� (ECSC), are used when the historical context is appropriate or to describe the statutory functions of bodies that still have legal identi- ties within the EU. All information regarding EU institutions, policies, and programs is the most recent available at the time of publication.For updated information, please consult www.eurunion.org, the website of the the European Commission Delegation in Washington. Where possible, financial amounts appear in U.S.dollars and are converted from euros using the appropriate annual dollar to euro exchange rate. Introduction: Ambassador�s Welcome 2 What Is the European Union? 6 Ho w Is the EU Run? A Unique Governing System 10 EU Relations with the United States 13 Europe Whole and Free: The EU Projecting Peace,Stability,and Prosperity 16 Europe in the World 25 : An A to Z ofEU Policies 36 Milestones Agencies EUAcronyms and Abbreviations ew bonds in the world are as strong as those between the European Union and the United States.Across the Atlantic,we share a firm commitment to peace, democracy,human dignity,and pros- perity.Over halfa century ofclose cooperation,common values, economic partnership,and friendship have solidified transatlantic ties. The European Union owes much to American inspiration and support.From our earliest days,we studied the U.S. experience and emulated many ofthe best characteristics ofAmerican govern- ment.Separation ofpowers,checks and balances,and public accountability are just some ofthe many aspects ofthe European unification system deeply rooted in American structures. The United States has always been a rong backer ofEuropean integration, which has had the support ofevery American president since the 1950 Schuman Declaration laid out a vision for a united Europe.The United States was the first nation to recognize the European Coal and Steel Community, the precursor to today�s EU,and the first to establish a diplomatic presence before the Community. Today�s European Union,with close to 500 million citizens in 27 Member States,embraces a strong partnership with the United States.Together,we work for peace and security around the world,advance democracy and human rights,and address global chal- lenges.We have the world�s most important economic,trade,and invest- ment relationship.A vibrant dialogue between Europe and America takes place every day and on many levels� between government institutions, political leaders,business executives, non-governmental and professional organizations and,literally,millions of citizens on both sides ofthe Atlantic. To make our partnership even more productive,it is important that we know more about each other�how our political,economic,and social systems function,and how we make decisions that advance our common goals.With this in mind,we have fashioned The European Union: A Guide for Americans to help Americans better understand the European Union,its values and priorities,and our shared responsibility to work together for a better world. mbassador John Bruton ead ofDe legation Europ ean Commission Washington,D.C. Ambassador�s Welcome Celebrating The EU�s Birthday:50 Years of European Integration March 25,2007 marks the 50th Anniversary ofthe Treaties ofRome,which created the European Atomic Energy Community and the European Economic Community,the forerunners,along with the European Coal & Steel Community, ofthe modern European Union.Today, er five enlargements,the 27-member EU,prosperous and vibrant,stands as a unifying force for peace and freedom,democracy and the rule oflaw,and respect for human rights and equality,both at home and abroad. The European Union is not a federation like the United States.Nor is it simply an organization for cooperation between gov- ernments,like the United Nations.Neither is it a State intended to replace existing states,but it much more than any other international organization.The EU is,in ct,unique.Never before have countries voluntarily agreed to set up common insti- tutions to which they delegate some of ve reignty so that decisions on specific matters ofjoint interest can be made democratically at a higher,in this pean,level.All EU decisions and procedures are based on the treaties agreed to by all EU countries,under which sover- eignty is shared in specified areas.The result is a union of27 Member States co vering 1.6 million square miles with roughly halfa billion people producing almost a third ofthe world�s gross national roduct and speaking more than 23 languages,bound together by a desire to promote peace,democracy,prosperity, stabilit y, and the rule oflaw. The EU embraces the fundamental values shared by its Member States across a ultit ude ofcultures,languages,and tradi- tions.The Member States agree that democracy is the best form ofgovernment. They believe in societies that encourage pluralistic political thought and endorse edom ofspeech and religion.They support free market economies�where economic development and growth are driven by the private sector and facilitated by governments.They believe prosperous ries have an obligation to help poorer and less developed regions and nations. And they value living together in peace as we ll as promoting these principles globally. The EU sets high standards for mem- bership.Candidate states must have stable democratic governments;respect for the rule oflaw,minorities,and human rights; a functioning market economy;and the ability to take on the obligations ofEU membership.That is,prospective members must have the capacity to adopt and implement the body ofEU laws and regulations that ensure cooperation in a multitude ofareas in addition to trade and the economy,including citizens� rights,freedom,security,and justice,job eation,regional development,environ- mental protection,and making globaliza- tion work for everyone. History:The Union�s Origins Economic integration was launched in the wake ofWorld War II,as a devastated Western Europe sought to rebuild its economy. On May 9,1950,French Foreign Minister Robert Schuman announced a plan�in a speech inspired by French businessman turned-advisor Jean Monnet�that proposed pooling European coal and steel pr oduction under a common authority. While contributing to economic recovery, this plan would also control the raw materials ofwar.The Schuman Declaration was regarded as the first step toward ac hieving a united Europe�an ideal that in the past had been pursued only by force. Belgium,the Federal Republic ofGermany, y,Luxembourg,and the Netherlands accepted the French proposal and signed the European Coal and Steel Community (ECSC) Treaty in Paris on April 18,1951. The Six set up the ECSC High Authority,to which member governments transferred portions oftheir sovereign powers.Coal and steel trade increased by 129 percent over the next five years. Encouraged by this success,the Six pursued integration in the military and political fields.When these efforts were derailed,European leaders decided to continue the unification ofEurope on the conomic front alone.A historic meeting in Messina,Italy,in June 1955,launched the negotiations for two new treaties,the st to establish a European Economic Community (EEC) to merge separate national markets into a single market that ure the free movement ofgoods, What is the European Union? A Union ofStates and Peoples The European Union: A Guide for Americans people,capital,and services through devel- opment ofcommon economic policies; and the second to create a European Atomic Energy Community (EAEC or EURATOM) to further the use ofnuclear energy for peaceful purposes. The Six signed the treaties on March 25, in Rome.Often referred to as the �Rome Treaties,�both the EEC and the EAEC Treaties came into force in January 1958. The Treaties That Built The European Union has been built through a series oftreaties that represent binding commitments by the Member States.Treaties are negotiated by Member States through intergovernmental confer- ences,or �IGCs,�that culminate in a summit chaired by the Member State holding the Council presidency. This process began with three separate treaties dating from the 1950s:the European Coal and Steel Community Tre (ECSC),the ope Ato rg unity Treaty AT opean Economic Community reaty In 1967,the ECSC,the EAEC,and the EEC collectively became wn as the European Communities.The Single European Act (SEA) in 1987 facili- tated the creation ofthe single market. Major elements ofthe SEA included insti- tutional reform and the expansion of European Community powers in research and development,the environment,and common foreign policy. The Treaty on European Union,signed in Maastricht,Netherlands (�the Maastricht Treaty�),and in effect since November 1993,was a major overhaul ofthe founding treaties.Maastricht provided a blueprint to achieve Economic and Mo netary Union (EMU),further developed the Union�s inherent political dimension through the new Common Foreign and Security Policy (CFSP),and expanded cooperation in judicial and olicing matters.It created the �three pillar�European Union that exists today: Pillar One incorporates the three ounding treaties now forming the �European Community�and sets out the institutional requirements for EMU.It also rovides for expanded Community action in certain areas,such as the environment, research,education,and training. Pillar Two established the CFSP,which makes it possible for the Union to take joint action in foreign and security affairs. Pillar Three created the Justice and Home Affairs (JHA) policy,dealing with asylum,immigration,judicial cooperation in civil and criminal matters,and customs and police cooperation against terrorism, ug trafficking,and fraud.The CFSP and JHA operate by intergovernmental cooper- ation,rather than through the Community instit ut ions that operate Pillar One. Maastricht also created European citizen- ship and strengthened the European arliame nt�s legislative role in certain areas. The Treaty ofAmsterdam took effect in and reformed EU institutions to support its economic and security objec- tives.Major provisions include extending the scope ofqualified majority voting, increasing the European Parliament�s responsibilities by making the co-decision procedure the general rule,extending the number ofpolicy areas�such as employ- ment,social issues,and immigration� in which Parliament can exercise veto power,and strengthening the Common Foreign and Security Policy and the EU�s ability to undertake joint foreign policy actions.Indeed,as few as two-thirds of Member States can act together on behalf ofthe EU.Member States that �construc- tively abstain�on CFSP issues are not able to take any action that impedes the majority decision. The Treaty ofNice (2003) set the condi- tions for EU expansion by revising insti- tutional policies.The treaty extended majority voting even further,re-weighted votes within the Council ofthe European Union,and extended the use of�enhanced cooperation,�which allows groups ofat least eight Member States to proceed with policy initiatives that do not infringe on the rights ofother members.It also redis- tributed Member State representation within the European Parliament,restruc- ure d the European Commission, strengthened its presidency and recog- nized and legislated the role ofpolitical part ies at the EU level and in EU process. European Constitutional Treaty In October 2004,Heads ofState and Government and Foreign Ministers signed the Treaty establishing a Constitution for Europe,which provides for changes to the EU�s governing institutions and decision- making processes.This new treaty grew out ofthe 2002�2003 Convention on the Future ofEurope and builds upon previous EU efforts to institute internal reforms enabling an enlarged EU to function more effectively, more transparently,and closer to European citizens.It also contains measures to raise the EU�s visibility on the world stage. Major innovations in the Constitution include abolishing the EU�s rotating European Council presidency and instead appointing a single individual to serve as president ofthe European Council for up to five years;creating the post offoreign minister and a foreign service;increasing the powers ofthe European Parliament; and simplifying EU v ing proce dures.It also stre ns the EU�s democratic base by providing citizens with new avenues for direct participation in EU governance and by involving the national parliaments. Other changes would improve operations and transparency. o enter into force,the Constitution requires ratification by each EU Member State by popular referendum or parliamen- tary vote.While it has been ratified by 18 Member States,�no�votes prevailed in France and the Netherlands in 2005. Subsequently,the European Council stated What is the European Union? Treaty of Rome. he European Union: A Guide for A What is the European Union? urop nion: A Guide for A The 27 European Union Member States Country CouncilMembers of Population GDP Currency VotesEuropean (millions)(2005) Parliament Austria 305Euro 370Euro Bulgaria 27Lev Cyprus 16Euro Czech Republic12 122Czech Koruna Denmark 258Danish Crown 14Estonian Kroon 192Euro France 60.62,104Euro Germany 82.52,785Euro 224Euro Hungary 109Forint 198Euro 58.51,757Euro 16Lats 26Litas Luxembourg 36Euro otal345785 490$13.5 million trillion that the concerns and worries expressed by er s would be taken into account and called for a period ofreflection and debate. More recently,Germany,which holds the ency during the first halfof2007, as well as Portugal and Slovenia (the two successive Presidencies),have agreed that a co ultative report exploring future devel- opments will be presented to the European Council,which will then determine how est to continue the reform process.The goal is to complete all necessary steps no co nd halfof2008. The situation with the Constitution does not alter the legal underpinnings of the EU,which operates just as it did prior to the referenda. The European Union has delivered halfa century ofpeace,stability,and prosperity, helped raise living standards,launched a single European currency (the Euro),and is progressively building a single Europe- et in which people,goods, services,and capital move among Member States as freely as within one country. eside nts benefit in numerous ways. They can expect consistent delivery of important services,from education to health care to transportation,which must meet agreed-upon standards.They know that products such as food or medical plies will be safe and environmentally sound regardless ofwhere they originate in the EU.T y know that men and women must receive equal pay for equal work,a requirement that reflects the EU�s pionee ring role in the fight for women�s rights.Citizens ofthe European Union w they are free to live in any EU ountr y and have equal access to justice throughou nion.A or- tantly,they know that their fundamental ights,inc luding the freedom ofthought, co nscience, and re ion,are protected. The EU has also strengthened Europe�s voice in the world.The Union is engaged in rebuilding lives and communities in areas ofconflict such as Afghanistan and the former Yugoslavia.The EU supports efforts to achieve peace in the Middle East, promotes sound environmental practices, ntributes to global efforts to control nuclear proliferation.Judicial,law enforce- ment,and security officials cooperate internationally to combat terrorism and transnational crime. he EU and its Member States are the largest providers ofdevelopment assistance around the world�from combating po verty to fighting HIV/AIDS and other communicable diseases.And the Union is involved in other areas that support devel- opment and reduce poverty,such as peace- keeping,election observing,and providing humanitarian and reconstruction aid in the wake ofnatural disasters and conflict. European and global markets benefit from the EU�s ability to negotiate interna- nal trade agreements on behalfofits Member States.For example,open and uniform access to the European market for U.S.manufacturers,service companies,and investors has resulted in a vibrant ec onomic relationship�the largest in the world�that provides roughly $1.5 billion in transatlantic trade each day and ports jobs for 7 million Americans and about the same number ofEuropeans. What is the European Union? (right) Signing ceremony for the Maastricht Treaty. on January 1, 2007. (below) At the July 2002 Youth Convention The European Union: A Guide for Americans The European Union is often compared to the United States, and there are indeed some similarities in function and organization.The Member States of the EU have agreed to pool some of their sovereign powers for the sake of unity and promotion of shared values, just as American states did to create a federal republic.In the fields where national sover- eignty has been pooled, such as trade, the EU negotiates directly with the United States and other countries on behalf of all the Member States.Thirteen Member States thus far A United States of Europe? The European Union: A Guide for Americans Chapter Two The European Union is governed by several institutions that reflect the EU�s unique,dual supranational and intergov- ernmental character.The EU has the power to enact laws that are directly binding on citizens from many countries,a fact that distinguishes the Union from any other government or international organization. Member States have relinquished part of their national sovereignty to EU institu- ns,leading to descriptions ofthe Union as a supranational entity,with many decisions made and final authority residing at the EU level.In specified areas,the Member States work together in their col- lective interest through EU institutions to administer sovereign powers jointly.The EU�s decision-making process involves three main institutions,all set up in the 1950s under the EU�s founding treaties. The European Commission proposes new legislation while the Council ofthe European Union and European Parliament adopt the laws.This institutional triangle roduces policies and laws that apply throughout the EU.Two other institutions also play a vital role:the European Court ofJustice upholds the rule ofEuropean law,and the Court ofAuditors checks the financing ofUnion activities. Other institutions and bodies also play important roles. The European Commission The European Commission (EC) is essen- tially the European Union�s executive branch and has the sole right oflegislative initiative.It is independent ofnational gov- ernments and represents the European (as opposed to individual Member State) per- spective.The Commission is comprised of 27 appointed Commissioners�one from h ofwhom is nsible for specific policy areas.The Commission ensures that the provisions of ies are ap d correctly and re presents the EU internationally,negotiat- ing with non-EU c ies in areas fal etence ofthe European ommunity (EC).The Commission also iv n is appointed every ve years,within six months ofthe op arliame lections.The proc ess involves several steps with input om Member States and the European Parliament: �Member State governments agree on a w Commission President-designate. �Parliament approves the Commission President-designate. �T he Commission President-designate chooses the other Members ofthe Commission,in consultation with Me mber State governments. �Parliament interviews each Member and issues its opinion on the whole team. Once approved,the new Commission can officially start work. The present Commission�s term runs through October 31,2009.The President of the European Commission is JosŽ Manuel Barroso ofPortugal. The Commission remains politically accountable to Parliament,which has the power to dismiss the entire Commission by adopting a motion ofcensure.Individual members ofthe Commission must resign if d to do so by the President,provided the other commissioners approve. The Commission attends all the sessions fParliament,where it must clarify and justify its policies,in addition to replying regularly to written and oral questions posed by MEPs. The seat ofthe Commission is in Brussels (Belgium),but it also has offices in Luxembourg,representations in all EU countries,and delegations in many capital cities around the world. The European Commission has four main roles: roposing legislation to Parliament and the Council. Proposed legislation must defend the interests ofthe Union and its citizens,not those ofspecific countries or industries.The Commission also seeks the opinions ofnational parliaments and gov- ernments.To get the technical details right, the Commission consults experts through its various committees and groups. Managing and implementing EU policies and the budget. The Commission is responsible for adminis- tering and supervising expenditures under the oversight ofthe Court of Auditors.Most ofthe actual spending is done by national and local authorities. Enforcing European law (jointly with the Court ofJustice). The Commission acts as guardian ofthe Treaties and can take legal action and refer cases to the European Court ofJustice against persons,companies,or Member States e EU rules. Representing the European Union on the international stage. The ommission negotiates agreements between the EU and other countries and provides official presence in delegations throughout the world. The Council of the European Union he Council is the EU�s main d cision- ody, and represents the Member es.One minister from each ofthe EU�s natio over nts attends Council et s.Different ministers are assigned o specific issue areas (e.g.,agricultural ministers decide farm policy). EU relations with the rest ofthe world are ealt with by the General Affairs and External Relations Council.Since this Council config- uration also has wider responsibility for ge ral policy issues,its meetings are attended by the minister or State Secretary chosen by each Member State government. A Unique Governing System Each minister in the Council is empowered to commit his or her govern- ment�the minister�s signature represents the assent ofthe whole government. The Presidency ofthe Council rotates every six months with terms running from January through June and July through De cember.Each EU country in turn takes charge ofthe Council agenda and chairs all the meetings for a six-month period, promoting legislative and political decisions and brokering compromises ng the Member States. The Council ofthe European Union has six key responsibilities: dopting European laws�jointly with the European Parliament in many policy areas. Coordinating the broad economic policies ofthe Member States. 3.Concluding international agreements between the EU and other countries or international organizations. 4.Approving the EU�s budget,jointly with the European Parliament. 5.Developing the EU�s Common Foreign and Security Policy (CFSP),based on guidelines set by the European Council. 6.Coordinating cooperation between the ional courts and police forces in criminal matters (see the Freedom, security,and justice section). these responsibilities relate to the �Community�domain or the �first pillar� ofthe EU�e.g.,policy areas where the Me er States have decided to pool their sovereignty and delegate decision-making powers to the EU institutions.However, the last two responsibilities listed above relate largely to areas in which the Member States have not delegated their powers but are simply working together.This is called intergovernmental cooperation and it co vers the second and third �pillars�ofthe European Union. Decisions in the Council are reached by weighted votes ofMember State ministers. The bigger the country�s population,the e votes it has,but the numbers are weighted in favor ofthe less populous countries.Most decisions require support y a majority ofMember States represent- ing at least 62 percent ofthe EU popula- tion.Unanimity is required in areas such as ommon Foreign and Security Policy, taxation,and asylum and immigration policy.Effectively,each Member State has veto power in areas subject to unanimity. On most issues,however,the Council makes decisions by qualified majority voting (QMV).A qualified majority is reached ifa majority ofMember States (in some cases a two-thirds majority) approve a measure and ifa minimum of255 ofthe 345 votes�73.9 percent�are cast in favor fthe measure. In the area ofCommon Foreign and Security Policy,at least two-thirds of Me r States can act together on behalf ofthe EU.A minimum ofeight Member States can take action in certain areas, pro vided that participation is open to all and that the rights ofother Member States are not infringed upon. The European Council. The presidents and/or prime ministers ofthe Member States,together with the President ofthe European Commission,meet as the �European Council�up to four times a year.These summit meetings set overall EU policy and resolve issues that could not be settled at the ministerial level (i.e.,by the ministers at Council ofthe EU meetings). The European P e 1979,the European Parliament (EP) has been directly elected by the EU�s citizens under a system ofpopulation- based proportional representation,with h member serving a five-year term. The present Parliament,elected in June 2004,has 785 members representing all 27 ies.Nearly one-third of Parliament�s members are women. Parliament elects a president who serves a two-and-a-halfyear term.In 2007,Hans- Gert Poettering was elected President of the European Parliament. Parliament has three main roles: 1.Passing European laws�jointly with the Council in many policy areas.The EP can veto legislation in specific policy areas. 2.Exercising democratic supervision over the other EU institutions,in particular the Commission.Parliament has the power to approve or reject the nomination ofcom- missioners,and it has the right to censure the Commission as a whole. Adopting or rejecting the EU budget in its entirety.Parliament shares authority with the Council over the EU budget and can therefore influence EU spending. Members ofthe European Parliament (MEPs) do not sit in national blocks,but in Europe-wide political groups.Between them,they represent all views on European integration,from the strongly pro-federal- ist to the openly �Euroskeptic.� he European Union: A Guide for A Chapter Two European Parliament:Number of seats per political group (Jan.2007) Political group AbbreviationNo. of seats European People�s Party (Christian Democrats) and European DemocratsEPP-ED277 Socialist GroupPES218 Alliance of Liberals and Democrats for EuropeALDE106 Greens/European Free AllianceGreens/EFA42 European United Left�Nordic Green LeftGUE/NGL41 Independence/DemocracyIND/DEM23 Union for Europe of the NationsUEN44 Identity, Tr AL 785 as of January 1, 2007. The European Court of Justice The European Court ofJustice (ECJ) ofthe European Communities was set up under the ECSC Treaty in 1952.Based in Luxembourg,it acts as the European Union�s Supreme Court. The ECJ ensures that EU legislation is interpreted and applied uniformly in all EU countries.The Court has the power to settle legal disputes between EU Member States,EU institutions,businesses,and individuals.Its rulings are binding.The Court is composed ofone judge per Member State,appointed by joint agreement between the governments of the EU Member States for a renewable term ofsix years.For the sake ofefficien- cy,however,the Court usually sits as a Grand Chamber ofjust 13 judges,or in chambers ofthree or five judges. The Court is assisted by eight advocates- general who present reasoned opinions on efor e the Court, public tially. To help the Court ofJustice cope with a loa d and to afford citizens better leg al protection,a Court ofFirst Instance was created in 1989.This court (which is attached to the Court ofJustice) is responsible for certain kinds ofcases, particularly actions brought by private individuals,companies,and some organizations,as well as cases relating to competition law. The Court ofJustice and the Court of First Instance each have a President,chosen by fellow judges to serve for a three-year, renewable term. A new judicial body,the European Civil Service Tribunal,has been set up to adjudi- cate disputes between the European Union and its civil service.This tribunal is composed ofseven judges and is attached o the Court ofFirst Instance. The European Court of Auditors The European Court ofAuditors (ECA) was set up in 1975 and is based in Luxembourg. The Court�s job is to check that EU funds, which come from the taxpayers,are collected properly,spent legally and eco- nomically,and are used for their intended purpose.The ECA aims to ensure that taxpayers get maximum value for their money,and it has the right to audit any person or organization handling EU funds. The Court is comprised ofone member from each EU country,appointed by the Council for a renewable six year term. Members elect one oftheir number as Pr newab le term ofthree years. everal other bodies govern specific areas of the European Union or serve in advisory roles. The European Economic and Social eaty of Rome,the European Economic and Social Co ee (EESC) is an advisory body repr esent ing employers,trade unions, farmers,consumers,and other civil society in policy discussions with the Commission, the Council,and the European Parliament. The EESC also aims to bolster the role of civil society in non-EU countries and helps set up advisory structures. The Committee must be consulted before de cisions are made on economic and social policy.It may also give its opinion on other matters on its own initiative or at the request ofanother EU institution. The 344 members are nominated by the Me mber State governments and roughly reflect the size ofeach Member State�s pop- ulation.However,they work with complete ical independence and are appointed for a four-year,renewable term. Set up in 1994,the Committee ofthe Regions (CoR) is an advisory body whose members represent Europe�s regional and local authorities. The CoR must be consulted before EU decisions are made on matters which have local and regional repercussions.The Committee can also adopt opinions on its own initiative and present them to the Commission,Council,and Parliament. The members ofthe Committee (344) are elected municipal or regional officials, often leaders ofregional governments or city mayors,nominated by Member State governments for a renewable four- year term. The European Union: A Guide for Americans EU Agencies An EU Community agency is a body governed by European public law;it is distinct from Common Foreign and Security Policy (the second pillar of the European Union) .Three others�CEPOL, Europol, and Eurojust�help coor- Police and Judicial Cooperation in criminal matters (the third pillar of the European Union) , CEPOL is the European Police College, Europol is the European Police first pillar�the Community domain. The objectives of the EU�s individual agencies and other bodies are many and varied, with each fulfilling a unique function defined at the time of its creation.These entities introduce a degree of decentralization to Community activities, giving a higher profile to their assigned tasks.For some, their role includes integration with different interest groups to facilitate dialogue with partners at all levels. Chapter Two The European Central Bank The European Central Bank (ECB) was set up in 1998,and is based in Frankfurt, Germany.The ECB is responsible for framing and implementing the EU�s monetary policy including managing the euro,the EU�s single currency.The legal basis for the single monetary policy is the Treaty establishing the European Community and the Statute ofthe European System ofCentral Banks and of the European Central Bank. To carry out its role,the ECB works with the European System ofCentral Banks (ESCB),which covers all 27 EU countries. However,only 13 EU Member States have adopted the euro to date.Collectively,these 13 make up the euro area and their central banks,together with the European Central Bank,comprise the Eurosystem. The ECB works in complete independ- ence.Neither the ECB,the national central banks ofthe Eurosystem,nor any member of their decision-making bodies can ask for or accept instructions from any other body. The ECB,working closely with the national central banks,prepares and implements the decisions made by the Eurosystem�s decision- dies�the Governing Council,the Executive Board,and the General Council. One ofthe ECB�s main tasks is to maintain pr ice stability in the euro area,ensuring that the euro�s purchasing power is not eroded by inflation.The ECB strives to keep the year- o-year increase in consumer prices under 2 percent,controlling the money supply and monitoring price trends in order to assess the risk posed to price stability in the euro area.Controlling the money supply involves, among other things,setting interest rates throughout the euro area,one ofthe Bank�s better known activities. The European Investment Bank The European Investment Bank (EIB) was t up in 1958 by the Treaty ofRome.Its job is to lend money for projects ofEuropean interest (such as rail and road links,airports, or environmental efforts),particularly in the less well-offregions,candidate countries, and the developing world.It also provides credit for small business investments.The EIB is non-profit and receives no money m savings or current accounts.Nor does it use any funds from the EU budget. Instead,the EIB is financed through orrowing on the financial markets and by the Bank�s shareholders�the Member States ofthe European Union.They con- tribute jointly to its capital,each country�s contribution amount reflecting its economic weight within the Union. This Member State backing gives the EIB the highest possible credit rating (AAA) on the money markets,enabling it to raise large amounts ofcapital on very competi- ive terms.In turn,the Bank is able to invest in projects ofpublic interest that would otherwise not get the money - or ould be f orc ed to borrow at a higher rate. The EIB also supports sustainable devel- op ment in the Mediterranean countries, frica, arib bean,and the Pacific,as well as projects in Latin America and Asia. y,the EIB is the majority shareholder in the European Investment Fund. The European Investment Fund The European Investment Fund (EIF) was set up in 1994 to help small businesses.The EIB is its majority shareholder,with which it forms the �EIB Group�. The EIF provides venture capital to small firms (SMEs),particularly new firms and technology-oriented businesses.It also provides guarantees to financial institutions (suc h as banks) to c ove r their loans to SMEs. he EIF is not a lending inst itution:it does not grant loans or subsidies to busi- nor does it invest directly in any firms.Instead,it works through banks and other financial intermediaries,using either its own funds or those entrusted to it by the EIB or the European Union. The Fund is active in the Member States ofthe European Union,Turkey,and three EFTA countries (Iceland,Liechtenstein, and Norway). Chapter Two EULaw and Legislation Legislation is drafted by the Commission and requires approval by the Council and, in most cases, the Parliament.The Commission considers legislation only when it believes an EU-level remedy is necessary for a problem that cannot be solved by national or local governments. Legislation takes different forms, depending on the objective to be achieved. Co-Decision Procedure This is the procedure now used for most EU law-making.The European Parliament has the power of �co-decision�with the Council of the European Union, a power granted in 1993 and expanded in 1999. Parliament does not merely give its opinion in this procedure�it shares legislative power equally with the Council of the EU. The co-decision procedure requires the two bodies to agree on identical text before a w. Conciliation Committee is formed.Even if the committee agrees to a joint text, the Parliament may still reject the proposed act by a majority vote of its members. Areas covered by the co-decision procedure he European Union: A Guide for A Transatlantic Economic Ties he economic relationship between the European Union and the United States is perhaps the most defining feature ofthe global economy.The integration is broader and deeper than between any two other political regions in the world.The EU and U.S.account for 37 percent of global merchandise trade and 45 percent ofworld trade in services.The partner- ship is also the single most important driver ofglobal economic growth,trade, and prosperity.And bilateral economic ties are increasing every year. The EU and the U.S.are each other�s main trading partners in goods and services and account for the largest bilateral trade relationship in the world as well as providing each other the most or tant source offoreign direct invest- ment (FDI).The huge amount ofbilateral trade and investment illustrates the high degr ee ofinterdependence ofthe two economies.Bilateral trade between the EU and U.S.amounts to over $1.5 billion a y; investment links are even more sub- stantial,totaling over $1.8 trillion a year. The partnership supports about 14 million bs on both sides ofthe Atlantic and .S.trade accounts for almost 40 percent ofworld trade. artnership on Multiple Fronts The relationship between the two partners, however,goes beyond economic ties. he European Union and the United States increasingly share the opportunities and responsibilities ofworld leadership. Together they work to promote common values,including peace,freedom,and the rule oflaw;create conditions for harmo- nious economic development worldwide; advance the stability ofinternational trade, financial,and monetary systems;and strengthen the economies ofdeveloping ries and those in transition. Acting on these shared values,the EU and U.S.have played a significant role in romoting the institutions and interna- tional norms that helped bring an end to quently encour- aged global trends toward democratization and market integration. ork together to confront global challenges such as terrorism, threats to security and stability,weapons pr eration,drugs,and organized crime. As partners promoting peace and stability, the EU and the United States recognize the impact ofregional conflicts,both in the direct consequences ofviolence,and the wide-ranging,spin-offimpact ofcrime, terrorism,poverty,and disease that can result from such conflicts.The two partners worked side-by-side to bring stability to the Balkans.The EU and the U.S.,through the OSCE,ha ve supported the Ukrainian gov- ernment in adapting legislation,structures, and processes to the requirements ofa dern democracy. In Afghanistan,the EU and the United oge ther have provided the lion�s share ofthe international reconstruction effort.In order to help the reconstruction of mocratic and stable Iraq,the European Commission and U.S.govern- ment both donate to the International Rec onstruction Fund Facility for Iraq (IRFFI) set up under the United Nations and the World Bank.In addition to EU Relations With The United States From the Leaders �European Commission President JosŽ Manuel Barroso, EU-U.S.Summit, June 21, 2006 �European Commission President JosŽ Manuel Barroso, February 22, 2005. �This partnership is based on common values and shared aspirations;a partnership that really has helped build a Europe that is whole, free, and at peace.The United States continues to t a strong European Union as a partner in spreading freedom and democracy and ity and prosperity throughout the world�.[W]e want Europe strong so we can work .S.President George W.Bush, EU-U.S.Summit Washington, D.C., June 20, 2005 The EU and the U.S.�Deep Integration �56 percent of total U.S. foreign direct investment went to Europe during 2000�2005. Europe accounted for half of total global sales, more than double the comparable figures for the Asia/Pacific region.� �75 percent of total European foreign direct investment went to the US during 2000�2005. e is far more European investment in Texas alone than all U.S. investment in Japan and The European Union: A Guide for Americans financial resources,the EU and the U.S. contribute technical expertise and an unbending commitment to the principles ofdemocracy and freedom.In 2006,the European Commission opened a represen- tation in Baghdad in further support ofits commitment to Iraq. Differing Approaches to Some Issues To be sure,differences exist,just as they will between any partners.Differing positions on the U.S.death penalty and certain trade disagreements are among the most visible.Ninety-eight percent of economic relations between the two partners,however,are dispute-free.The EU and the U.S.share an overarching commit- ment to the democratic values that underpin their respective ways oflife. These values are reinforced through the myriad transatlantic interactions that take place daily among government officials, business leaders,non-governmental organizations,professional associations, de mia,ci y,and ordinary citiz and they are represented on the wo rld stage through common actions in a ariety ofpolicy fields. Structure of Transatlantic Relations Transatlantic relations encompass more than EU-U.S.relations.The United States and many EU c ountries provide for their common security in the North Atlantic Treaty Organization (NATO).The U.S.also ong political,economic,and cultural relations with many individual European nations,EU and non-EU countries alike.The European Union and the United States hold regular presidential summits,which were launched with the 1990 Transatlantic Declaration that formal- ized U.S.relations with what is now the EU. he emergence ofan EU Common Foreign and Security Policy in 1993 further solidified the relationship by providing the EU Relations With The United States omoting EU Studies in the U.S.: EUCenters of Excellence The EU Presence in the U.S. The European Union has a permanent presence in the United States with delegations in Washington, D.C.and New York City.The Washington office was opened in 1954 at the very Jean-Claude Juncker, Luxembourg Prime Minister & then-President of the European Council; U.S. President George W. Bush; European he European Union: A Guide for A United States with a stronger partner in areas beyond trade matters.An additional step was taken at the EU-U.S.Summit in December 1995 with the adoption ofthe New Transatlantic Agenda (NTA),which provided a new framework for the partner- ship to deal with the growing number of ernal challenges.The relationship moved from one ofconsultation to one of joint action in four major fields: �Promoting peace,stability,democracy, and development. �R esponding to global challenges. �Contributing to the liberalization and expansion ofworld trade. �I mproving communication and ensuring a long-term commitment to the partnership. The NTA was accompanied by a Joint EU-U.S.Action Plan setting out specific actions ranging from promoting political and economic reform in Ukraine to combating AIDS;from reducing barriers to transatlantic trade and investment to promoting links between universities and pr ofessional associations. Within the NTA framework,the Transatlantic Economic Partnership (TEP) serves to intensify and extend multilateral and bilateral cooperation and common ac tions in the field oftrade and investment. The TEP sets out a plan identifying areas for common actions with a timetable for ac hieving specific results.Since the NTA was adopted,the EU and the United States have made good progress in implementing the agreed-upon actions.For example, trade barriers have been reduced,and both sides work together on customs procedures. The EU and the United States also cooperate outside the NTA framework to improve the dialogue between EU and regulators and provide companies, consumers,and government authorities of both parties access to each other�s regula- tory procedures. The 2006 EU-U.S.Summit set up an EU- High Level Dialogue on Climate Change,Clean Energy,and Sustainable Development.The Summit also reviewed co ntinued progress in eliminating impedi- ments to further economic integration. EU Relations With The United States �People-to-People�Transatlantic Outreach veral channels afford private sector and government leaders the opportunity to participate in policy development that affects both the EU and U.S. Transatlantic Business Dialogue (TABD) Transatlantic Consumers� Dialogue (TACD) The TACD is a forum of EU and U.S.consumer organizations that develops joint consumer policy recommendations and works to promote consumer interest in EU and U.S.policy- making.TACD conferences take place once a year, alternately in the U.S.and the EU and produce recommendations related to food, electronic commerce, trade, health, and intellec- tual property issues. ransatlantic Legislators� Dialogue (TLD) TLD Dialogue in v integration since its inception in the early 1950s. uro pean Union: A Guide for A On January 1,2007,Bulgaria and Romania joined the European Union,completing the historic fifth enlargement.It was a momentous achievement,symbolizing ope� s unification after 50 years ofartifi- ision and one which created a new political order based on common values e to construct a space of ility,security,and prosperity. Eight countries from Central and Easter ope,along with Cyprus and Malta,acceded to the EU on May 1,2004, when the European Union enlarged from 15 to 25 me mbe r countries,in the first part ofthe fifth enlargement,the largest in EU history.The EU invested more than illio n between 1990 and 1999 to support the new Member States during the acc n process,approximately what .S.M arshall Plan provided to aid the reconstruction ofEurope after World War II.Prev ious enlargements occurred in 1973 (Denmark,Ireland,and the United Kingdom),1981 (Greece),1986 (Spain and Portugal),and 1995 (Austria,Finland, and Sw eden). EU enlargement is a historic step toward the long-cherished goal,supported by all U.S.presidents since Eisenhower,ofa Europe �whole,free,at peace,and growing er ity.� Any European state which respects the principles upon which the European Union is founded may apply to become a member ofthe Union.As stated in Article Six ofthe Treaty on European Union: �The Union is founded on the principles ofliberty, democracy,respect for human rights,and fundamental freedoms,and the rule oflaw, principles which are common to the Member States.� Turkey Turkey�s formal relations with the EU date back to the 1963 Turkish Association Agreement�the Ankara Agreement� which envisioned closer relations through a customs union,closer economic and trade ties,and eventual membership.The customs union,which allows most goods to cross the border in both directions without customs restrictions,was finally realized in 1995,jump-starting bilateral trade,which has increased fivefold subsequently. Turkey attained candidate country status in 1999,and accession negotiations began in late 2005.The country has undertaken notable political and human rights reforms:abolition ofthe death penalty;increased civilian control ofthe military;abolition ofState Security Courts;recognition ofthe supremacy of international human rights conventions over domestic law;progress in the fight against torture;and greater gender equality in the constitution and civil code. Turkey benefits from considerable pre- accession assistance for infrastructure and social improvements� 500 million in 2006,in addition to more than illion between 1996-2005 to support education,training,environmental/infra- structure initiatives,and economic reform.The EU has also introduced million in aid and trade measures designed to encourage the economic development ofthe Turkish Cypriot co mmunit y and help facilitate the reunifi- cation ofthe island. In December 2006,the EU decided to de y the opening ofcertain �chapters� (subject areas) ofthe accession negotia- tions with Turkey pending Turkey�s com- pliance with an �Additional Protocol�to the Ankara Agreement,under which Turkey agreed to open its ports and airports to goods transported from the Republic ofCyprus,an EU Member State. Turkey�s screening process continues and negotiations on other chapters will be opened when ready,but no negotiations can be concluded without resolution of the outstanding issue related to the Additional Protocol. The EU is committed to keeping Turkey�s accession negotiations on track, even ifat a somewhat slower speed. Turkey stands both as an anchor of stability in one ofthe most unstable and insecure regions in the world and as a benchmark ofdemocracy for the wider Middle East. Croatia Tw elve years after the end ofthe war in Croatia and eight years after gaining full sovereignty,EU candidate country Croatia is a stable democracy with a functioning market economy.Having concluded a Stabilization and Association Agreement (SAA) with the EU in 2001 to govern relations until accession,including financial and technical assistance geared toward helping the country fulfill the he European Union: A Guide for A Copenhagen Criteria Any European country that adheres to the following principles is considered eligible for membership in the EU: 1.Democracy, the rule of law, human rights, respect for minorities munautaire) The European Union: A Guide for Americans Europe Whole and Free: The EU Projecting Peace, Stability, and Prosperity uro pean Union: A Guide for A requirements for EU membership,Croatia presented its application in 2003 and was accepted as a candidate country the next year.Negotiations were launched on October 3,2005. Progress reports show continuing improvement in Croatia�s political system, progress with human rights and protec- tion ofminorities,and good medium- term economic prospects,provided reform continues.Judicial reform and anti-corruption efforts are ofparamount importance,both being essential to a well- functioning democracy and a healthy economy attractive to foreign investment. Former Yugoslav Republic of Macedonia (FYROM) FYROM became a candidate country in December 2005 and is well on its way to satisfying the political criteria for EU membership.It is a functioning democracy, with stable institutions that generally guarantee the rule oflaw and respect for human rights.Additional work is necessary to improve the electoral process, implement judicial and police reform,and strengthen anti-corruption efforts. The country has made major strides toward establishing a functioning market economy,and economic reform continues,particularly in the areas of property ownership,the business and investment climate,and labor and financial markets. Like Croatia,FYROM enjoys a Stabilization and Association Agreement with the EU,including financial and technical assistance. uropean Neig hborhood Policy (ENP) in 2004 to promote democracy,economic develop- ment,stability, and security in the countries around the borders ofthe expanded EU.The idea was to create a ring offriends with the Union�s diate neighbors and to avoid the emergence ofnew dividing lines between the enlarged EU and its neighbors. hroug h agreed upon programs of financial and technical support,the EU provides incentives for political and economic reform in neighborhood countries,including access to the Union�s single market,closer energy and trans- portation links,and a chance to partici- pate in certain internal EU programs. ENP is helping countries strengthen the rule oflaw,democracy,and respect for human rights,while enabling market- oriented economic reforms. Distinct from the enlargement process (although eventual membership is not precluded for otherwise qualified European states),ENP includes the following EU �neighbors�:Algeria, Armenia,Azerbaijan,Belarus,Egypt, Georgia,Israel,Jordan,Lebanon,Libya, Mold ova,Morocco,the Palestinian Authority,Syria,Tunisia,and Ukraine. Southeast Europe The EU is working in Southeast Europe to help the region achieve peace,stability, prosperity,and freedom.Through the Stabilization and Association Process (SAP),which includes the prospect ofEU membership,the Union is working to strengthen democracy and speed the tran- sition to market economies (including, eventually,a free trade area),while also promoting regional cooperation. The SAP provides the framework for EU relations with the Western Balkan countries,and the Union has offered the prospect offull EU membership to six Balkan countries�Albania,Bosnia- Herzegovina,Croatia,the Former Yugoslav Republic ofMacedonia The European Union: A Guide for Americans Europe Whole and Free: the EU Projecting Peace, Stability, and Prosperity �The European Neighborhood Policy is an opportunity for us, and our partners, to share the benefits which we have derived from half a century of peaceful integration.� Benita Ferrero-Waldner, Commissioner for External Relations and European (FYROM),Montenegro,and Serbia�if membership criteria are met.Croatia is the first ofthe Western Balkan countries to be granted candidate status,followed by the Former Yugoslav Republic of Macedonia. Individual Stabilization and Association Agreements provide the vehicle for a mix oftrade concessions and EU economic and technical assistance designed to help the EU�s Balkan neighbors build capacity and adapt to European standards, including the EU acquis communautaire the full body ofEU laws and policies�as required for eventual EU membership. The EU is by far the single largest assis- tance donor to the Western Balkans as a whole.The EU has invested billions of os in financial aid and has established numerous security,economic develop- ment,and law enforcement programs to lp countries in the region rebuild their economies and rejoin the mainstream of European development. The EU and its Member States also lead on the ground,having committed thousands of troops and military police,the lion�s share of the international force,to peacekeeping and reliefmissions in the region. Kosovo (under United Nations Security Council Resolution 1244). The EU is very supportive ofthe UN administration in Kosovo,and provides technical expertise and an EU representative to the Kosovo future status process.The EU wants to nsur e that the status process succeeds and leads to a clear sustainable settlement that includes a multiethnic and democrat- osov o.The EU is also advising on economic and EU matters to ensure com- patibility with the EU�s Copenhagen criteria for membership.As ofearly 2007, with the UN status proposal approaching, the EU was preparing for a possible Rule ofLaw mission (focusing on police and judicial reform) and continuing to support economic reform. orking within a Partnership and Cooperation Agreement (PCA),which came into force in December 1997 for an initial period of10 years (to be automati- cally extended year to year,barring with- drawal ofeither partner from the agreement),the EU and Russia agreed to a set ofshared principles and objectives:the promotion ofinternational peace and security,and support for democratic norms and political and economic freedoms. The provisions ofthe PCA cover a wide range ofpolicy areas,including political dialogue;trade in goods and services; business and investment;financial and legislative cooperation;science and tech- nology;education and training;energy, uclear, and space coop eration;environ- ment;transpo rt;culture;and cooperation on the prevention ofillegal activities.The reement also paves the way for the eventual establishment ofan EU-Russia ee trade area. Within the PCA framework,a set of actions,or roadmaps,have been agreed upon to bring about four �common spaces�:creation ofan open and integrat- ed market;promotion offreedom, security,and justice;cooperation on foreign policy and security issues with recognition ofthe importance ofinterna- tional organizations;and cooperation on scientific,educational,and cultural issues. At the November 2006 EU-Russia summit,leaders discussed a number of issues,including joint action to improve the bilateral business and investment environment in order to exploit the full potential ofeconomic relations.The EU and Russia agreed that the energy sector needs to function in a transparent,pre- dictable way,based on a positive interde- pendence and reciprocity.The partners expressed satisfaction with a strengthened environmental dialogue,which will pave the way for comprehensive cooperation in this sector. The EU is Russia�s number one trading partner,accounting for more than 52 percent ofits overall trade.Total EU trade with Russia in 2005 increased by 20 percent and reached $206 billion. Eastern Europe/Central Asia The EU is committed to working with the countries ofEastern Europe and Central Asia to s uppor t their p eco mic tr ansformation.Partnership and Co operation Agreements (PCAs) onstitute the framework for the relations between the EU and those countries.The s,with an initial lifespan of10 years, are legal frameworks based on respect for democratic principles and human rights, setting out the political,economic,and trade relationship between the EU and its partner countries.The EU has concluded PCAs with Armenia,Azerbaijan,Belarus, Georgia,Kazakhstan,the Kyrgyz Republic, Moldova,Tajikistan,Turkmenistan, Ukraine,and Uzbekistan.The PCAs with Belarus and Turkmenistan were never put into force in light ofthose countries�poor records on political reforms. EFTA and the EEA Members ofthe European Free Trade Association (EFTA)�Norway,Iceland, chtenstein,and Switzerland�have chosen not to become part ofthe Union. In referenda in 1973 and 1994,Norway decided against EU membership; Switzerland has applied for EU member- ship in the past,but has not actively pursued it,choosing instead to conclude agreements in specific policy sectors including transport,the environment,free movement ofpeople,procurement, research,agricultural trade,and conformi- ty assessment. As members ofthe 1994 European Economic Area (EEA),Norway,Iceland, and Liechtenstein participate in the EU�s internal market while not assuming the full responsibilities ofEU membership.In 1992 Sw er ted ratification ofthe EEA ree ment, which deals principally with the the four freedoms�:free movement of oods,persons,services,and capital. Provisions in the areas ofsocial policy, onsumer protection,environment, company law,and statistical harmonization complete the extended internal market. The competition rules ofthe EEA Agreement cover cartels,abuse of dominant positions,merger control,state monopolies,and state aid. he European Union: A Guide for A Europe Whole and Free: the EU Projecting Peace, Stability, and Prosperity Since its inception,the EU has developed a network ofbilateral and multilateral agree- ments with most countries and regions, continually expanding and deepening relations with its global partners.As a major global actor�demonstrated by its role as the largest single market in the world,its deep relations with nations,and its long-standing commitment to develop- ment aid�the EU is at the forefront of promoting sustainable development, eedom,democracy,and the fight against poverty.Moreover,the European Union plays an increased role in world affairs with the establishment ofthe Common Foreign and Security Policy (CFSP) and the op ean Security and Defense Policy (ESDP),which allow for better response to the far-reaching economic and political es occurring on the EU�s doorstep, and in other parts ofthe world,that require coherent European action. gular summit meetings with partners such as the United States, Japan,and Canada,and more recently with Russia,Ukraine,India,and China.The Union also holds regional dialogues with ries in Asia,the Mediterranean, the Middle East,and Latin America.These elationships,focused initially on trade xpanded over the years to cover investment,economic cooperation, e,energy,science and technology,and env onmental protection,as well as the global war on terror,international crime and drug trafficking,and human rights. The Union�s responsibilities stretch from helping to run the civil administration in Kosovo and providing financial support for the Palestinian Authority to imple- menting reconstruction programs in Afghanistan and Iraq. Policy (CFSP) Asserting the EU�s New Role in the World The Common Foreign and Security Policy (CFSP),established in 1993 when the Maastricht Treaty took effect,provides a formal structure that allows Member States to coordinate policy that is consistent and asserts the EU�s inherent political identity. Its objectives are to safeguard the values, interests,independence,and integrity ofthe Union;to strengthen the Union�s security;to preserve peace and strengthen international security;to promote international coopera- tion;to develop and consolidate democracy and the rule oflaw,and respect for human rights and fundamental freedoms.The olicy calls for adherence to the UN Charter in accomplishing those goals. Although CFSP decision�making proce- dures are intergovernmental,all the EU�s major institutions have roles under CFSP. The European Commission,which is fully associated with the CFSP,participates in all discussions,can make proposals,and can launch its own initiatives.It also represents EU interests around the world through its delegations and,with the Council ofthe European Union,ensures consistency in the EU�s external relations.The Council is responsible for foreign policy within the CFSP framework,defining policy principles neral guidelines,deciding on common strategies for activities with indi- vidual countries,and adopting joint actions and common positions.The European Parliament is consulted regularly,although it has no direct powers in this realm. he European Union�s High Representative,currently Javier Solana, co ntr ibutes to the formulation ofthe Common Foreign and Security Policy, along with the EU Presidency.The Policy t ofthe Secretariat ofthe Council ofthe EU�is charged with mon- itoring,analyzing,and assessing interna- nal developments and events. The European Council,consisting of Heads ofState and Government,agrees on common strategies and objectives in areas where Member States share interests; foreign ministers ofthe Member States decide the specifics. Member States not willing to participate in a particular for eign policy or security action may opt out without holding back the rest ofthe Union through a process called � constructive abstention.� opean Security and Defense Policy EU leaders decided in 1999 to put in place decision-making procedures for an EU Security and Defense Policy within the realm ofCFSP and to develop capacities to undertake security-related operations, such as peacekeeping,monitoring,and conflict prevention. The European Union: A Guide for Americans Europe in the World European Security Strategy Spurred by increasing global security threats, the European Union put in place in 2003 a European Security Strategy defining how the Union and its Member ESDP missions include humanitarian and reliefwork,peacekeeping,and the use of combat forces in crisis management.Since 2003,more than fifteen ESDP operations have been launched,including military and police missions,rule oflaw missions, and civilian-military support action. These operations have been undertaken in Bosnia and Herzegovina and the Former Yugoslav Republic ofMacedonia.ESDP operations are also underway in the Middle East,Africa,Southeast Asia,and the South Caucasus,while in early 2007, planning was underway for a possible EU mission in Kosovo. A Political and Security Committee (PSC) (also known by its French acronym COPS) o help the Council mo r international ev ents and review policy options. �T fthe European co mposed ofMember e chiefs ofdefense staffor their repre- iv �T opean Union Military Staff (EUMS),drawn from Member State rvice personnel. �The EU Satellite Center (EUSC),which generates and analyzes data from space imagery. �The EU Institute for Security Studies (EUISS),which performs research and analysis. �The European Defense Agency (EDA). The EDA was launched in 2004 to help Member States improve their defense capa- bilities and to support the ESDP.The EDA coordinates and fosters cooperation relating to Member States�defense capabili- ties development,armaments,the European defense technological and indus- trial base and equipment market,and research and technology.All Member States except Denmark participate. For the EU Member States in the North Atlantic Treaty Organization,NATO remains the basis for collective defense.In security operations where NATO is not engaged,the EU can use NATO assets in addition to those ofEU Member States. The two organizations have several institu- tional mechanisms to provide for close consultations. TO The European Union and the North ion�to which 21 of the 27 Member States belong�have built a genuine strategic partnership with fr egional stability and e.The �Berlin Plus�arrangements, dopted in 1999,provide the framework for cooperation between the EU and NATO.These arrangements include granting the EU access to NATO opera- ional planning assets when it is leading crisis management operations;availability to the EU ofNATO capabilities and ommon assets;NATO European command options for EU-led operations; and having NATO include in its defense planning the possibility ofmaking its forces available for EU operations. The �Berlin Plus�arrangements were the foundation for the landmark 2002 Declaration on the European Security and Defense Policy (ESDP) between the EU and NATO.That Declaration served as the basis for EU-NATO cooperation on crisis management,anti-terrorism efforts, curbing proliferation ofweapons ofmass destruction,and ensuring EU access to NATO�s planning capability. In March 2003,the EU and NATO signed the NATO-EU Agreement on the Security ofInformation,an agreement that enabled full consultations and cooperation between the two organizations,including the exchange ofclassified information and related material. The culmination ofthose agreements was the EU�s assumption on March 31, 2003,ofNATO�s mission in the Former Yugoslav Republic ofMacedonia.Called Operation Concordia,the deployment of about 400 troops from EU Member States and other nations marked the first time the Union led a military mission.The European Union again relieved a NATO he European Union: A Guide for A Europe in the World The Rapid Reaction Mechanism:Providing Aid Quickly and Effectively 30 million finances actions for a maximum of six months with the idea that longer-term aid can then take over. The RRM can intervene immediately prior, during, and after a crisis.At any one time, the RRM y be supporting over 60 operations in countries across the globe.The scale and nature of the crisis defines the type of actions that are funded. It can send technical teams to assess the situation in a country during a crisis�as happened in ore deciding on long-term aid.It can fund mine clearance, the cost of mediation and peace talks, and the training of police as part of an effort to restore the rule of law.It can Foreign and Security Policy. force in 2004,this time in Bosnia and Herzegovina. Cooperation between the EU and NATO is likely to grow in the future.NATO Secretary General Jaap de Hoop Scheffer called for an expanded relationship in 2004, as both organizations were adding new Member States:�Ever since the end ofthe Cold War,NATO and the European Union have worked together on a wider range of and to greater effect.Today,we face a range ofnew and complex challenges that force us to do even better:To work in a truly pragmatic manner�by complement- ing and reinforcing each other�s efforts.� The European Union has been active in development cooperation from its inception in the late 1950s.The goals ofEU development policy,enshrined in the Treaty establishing the European Community,are to foster sustainable economic and social development;promote recipient nations� integration into the world economy;and to fight poverty and HIV/AIDS.EU polices also aim to help consolidate democracy,the rule oflaw,and respect for human rights and fundamental freedoms. The European Commission and the EU Member States combined constitute the world�s largest single donor in the struggle against poverty.The massive European commitment to development,over $55 billion in 2005,accounts for more than half ofall official development aid to more than 160 countries spanning the globe from the EU�s neighbors to Africa,the Middle East, Latin America,and Asia.The 2000 Cotonou Partnership Agreement (and its predeces- sors) with 79 African,Caribbean,and Pacific (ACP) countries is a prime example, combining aid,trade,and political dialogue. ACP exports are granted preferential access to the EU market.In 2008,reciprocal trade and economic partnership agreements (EPAs) with regional groups ofcountries will be concluded.Aid is tied to institutional re forms and the recipient country�s own long-term development efforts and achieve- ments.Building on the experience that ownership by EU partner countries is pivotal for the efficiency and sustainability of all initiatives,the EU-funded programs are based on the countries�own strategies to reduce poverty,wherever possible. ionally,the EU is a leading donor ofemergency and humanitarian aid.The European Commission Humanitarian Aid e (ECHO) provides food,medical supplies,water purification systems, shelter and other essential items to disaster victims around the world.It has operated in 85 countries since it was created in 1992,providing more than billion in emergency assistance. o improve aid quality and efficiency,the European Commission has replaced a complex web offunding mechanisms with a simpler,more efficient system,as of 2007.The new framework is comprised of six instruments,three ofthem policy- driven and three ofthem thematic: �The Pre-Accession Instrument (IPA) for current and future EU candidate countries,e.g.,Turkey,Croatia,FYROM, and other potential candidate countries in the Western Balkans. �The European Neighborhood and Partnership Instrument (ENPI) for countries covered by the European Neighborhood Policy and also Russia (which benefited from TACIS). �The Development Cooperation and Eco nomic Cooperation Instrument (DCECI) for all countries,territories, and regions not eligible for assistance under either the Pre-Accession Instrument or the European Neighborhood and Partnership Instrument. �Macro-Financial Assistance (MFA) for economic stabilization and structural reform in beneficiary countries.In close coordination with IMF and World Bank programs,MFA promotes policies that are tailored to specific country needs with the overall objective ofstabilizing the financial situation and establishing competitive,market-oriented economies. �The Instrument for Stability (IfS) for providing a timely,effective,and inte- grated response to crisis in non-EU countries,and addressing global and trans-regional issues such as nuclear ety and non-proliferation,trafficking, organized crime,and terrorism. �The Humanitarian Aid Instrument for including food aid (dealt with previously under a separate instrument). The European Union: A Guide for Americans Europe in the World High Representative Javier Solana and African Peace Facility Peace in Africa is a precondition for the continent�s development and is also essential for Europe�s security. operations in Africa.It is also Africa�s biggest trading partner and largest donor, providing more than 50 percent of development aid to the region.In 250 million African Peace Facility to provide the African Union ective operations. Organizations In addition to the active participation of the EU Member States,the European Union has been a permanent observer at the United Nations since the mid-1970s. Both the EU and the UN share common goals in encouraging international peace and humanitarian development.The EU has joined the UN in a number of programs promoting international peace and security;developing stronger relations among nations;and cooperating in solving international,economic,social,cultural, human rights,trade,and humanitarian problems.As with the transatlantic part- rship,the EU-UN relationship will become increasingly important as a result ofthe EU�s political development. The EU contributes to the entire spectrum ofUN programs,including development policy,peacemaking, e,environment, ights, and culture.The EU Member States are the largest financial co ntributo r to the UN system,providing abou t 37 percent ofthe UN�s regular budget compared to the 23 percent expended by the United States.The EU co ributes 40 percent to UN peacekeep- ing operations and 50 percent to UN funds and operations. The EU has been a full participant in many major UN conferences,notably the 1995 Copenhagen World Summit for Social Development,the 1995 Beijing World Conference on Women,the 2002 Monterrey Conference on Finance for Development,and the 2002 Johannesburg World Summit for Sustainable Development.In May 2001,the EU for the first time hosted a major UN conference� the Third UN Conference on the Least Developed Countries. In 2003,the UN and the Commission concluded an agreement on the financing or co-financing ofUN projects,a pact that substantially simplifies and accelerates the co nclusion ofgrant agreements between the two organizations. EU participation in UN activities reflects the Union�s deeply-rooted commitment to making effective multilateralism a central ment ofits external action. Since the 1993 establishment ofthe EU�s Common Foreign and Security Policy,EU Member States have moved increasingly toward coordinating their actions in inter- national organizations.At the UN,the Member States,together with the European Commission,consult regularly and aim for unanimity.In fact,they have stood together on about 95 percent ofall resolutions passed by the UN General Assembly since the mid-1990s. EU Member States represent one-eighth ofthe votes in the UN General Assembly and one-third ofthe UN Security Council�s membership. The European Commission has delega- ions at all major UN sites:New York, Geneva,Vienna,Rome,Paris,and Nairobi. The European Commission�s External Re latio ns and Development Directorates- General coordinate relations between the Commission and the UN,while many of ct oral Directorates-General also have close working relations with individual UN bodies in their areas ofresponsibility. The EU and the World Trade Organization The EU was deeply involved in trade nego- tiations under the General Agreement on Tariffs and Trade�s (GATT) Uruguay Round,implemented in 1995,which included the creation ofthe World Trade anization (WTO).The European Union is one ofthe key players in the WTO, because the EU has a common trade policy, where the European Commission negoti- ates on behalfofthe Union�s 27 Member States.As such,the EU is one ofthe driving forces behind the current round ofmulti- lateral trade negotiations in the WTO,the Doha Development Agenda (DDA).The DDA comprises both further market opening and additional rule-making, underpinned by commitments to take measures necessary to integrate developing countries into the world trading system, notably by strengthening assistance to build capacity.The main objective ofthe DDA Round is to put development at the heart of the world trade system in a way that will help developing countries combat poverty. Regions of the World Middle East The Mediterranean region is ofhigh strategic importance to the EU.The Euro- Mediterranean Conference ofMinisters of oreign Affairs,held in Barcelona on November 27-28,1995,marked the starting point ofthe Euro-Mediterranean Partnership (Barcelona Process),a wide framework ofpolitical,economic,and social relations between the Member States ofthe European Union and partners ofthe Southern Mediterranean.The 2004 EU enlargement gave Member State status to two Mediterranean members ofthe part- nership�Cyprus and Malta.The ten full Euromed partners are Algeria,Egypt, Israel,Jordan,Lebanon,Morocco,the Palestinian Authority,Syria,Tunisia,and Turkey.Libya has observer status. As the cornerstone ofa new regional he European Union: A Guide for A Europe in the World ting the Middle East Peace Pr The EU is firmly committed to the objective of two States, Israel and a democratic, viable Palestine, living side-by-side in peace and security, in the framework of a comprehensive Middle East peace.With Russia, the United States, and the United Nations, the EU drafted the 2002 �roadmap�of goals and timelines to encourage progress.In addition to diplomatic efforts, the EU also supports or runs various civic, business, and social initiatives to promote peace and tolerance in the region. The EU is the biggest donor to the Palestinians and the biggest trading partner and major economic, scientific and research partner of Israel�the EU accounts for one-third of Israeli exports and over 40 percent of Israeli imports.It is also a major political and economic partner of Syria, Lebanon, Jordan and Egypt. Israel and the Palestinian Authority are partners in the EU�s European Neighborhood Policy, and have agreed to action plans with commitments on issues relevant to the peace process. The European Union: A Guide for Americans Europe in the World (right) Afghan President Hamid Karzai relationship,the Barcelona Process has three main objectives:expanding the political and security dialogue to create a common area ofpeace and stability; sharing prosperity through an economic and financial partnership and the gradual establishment ofa free-trade area,envi- sioned by 2010;and encouraging under- standing between cultures and exchanges within civil society. he EU also works closely with six Persian Gulfnations that created the Cooperation Council for the Arab States of the Gulf(GCC) in 1981.A free-trade agreement is being discussed,as is increased ical,economic,and social cooperation. EU support for Afghanistan is set firmly within the context ofan agreement reached in Bonn by Afghan factions, assisted by the United Nations,shortly after the fall ofthe Taliban in late 2001.The agreement spelled out a transitional process leading to elections ofa �broad- based,gender-sensitive,multi-ethnic,and fully representative government.� In 2002 the Council ofthe European Union set overall objectives to:restore stability;support civil,social,and military uctures,and services and aid,especially for refugees and displaced persons; promote economic and political reforms and the establishment ofpublic institu- tions to protect human rights;reinforce the ht against illegal drugs and terrorism; and promote regional cooperation for reconstruction. rovided substantial aid to Afghanistan.Between 2002-2006,the EU committed 1 billion to Afghanistan�s sta- bilization and recovery process and will continue to provide roughly 150 million annually in the long-term.The EU is the largest donor to the Law and Order Trust Fund for Afghanistan (LOFTA),having ontributed 135 million since 2002 to cover police salaries.The EU is a top con- tributor to the Afghan Reconstruction Trust Fund (ARTF),and along with the World the EU has taken a leading role in developing the health sector. During the period 2007-2013,the EU will continue to focus on strengthening the rule oflaw as key to sustainable recon- str uction,governance,and state building in Afghanistan.Additionally,the EU will continue to provide substantial aid, notabl y in health and rural development, including alternative livelihoods.Other significant goals include de-mining,the sustainable return ofrefugees,expanding the role ofwomen,and reducing poppy production.In addition,the EU has made a significant contribution ofpersonnel (almost two-thirds ofthe total deploy- ment) to the UN-mandated and NATO- commanded International Security Assistance Force (ISAF),established by a UN Security Council Resolution following the Bonn meeting. In addition to the involvement ofa number ofEU Member States in providing security,the EU�s efforts in Iraq since the fall ofSaddam Hussein in May 2003 have focused on humanitarian reliefand political and financial support for recon- struction.The European Commission�s rovided lion in humanitarian assistance in 2003 for the most vulnerable population in Iraq. n 2005,the EC also p ovided significant support for the electoral process. Benita Ferrero-Waldner,Commissioner fo r External Relations and European Neighborhood Policy,said in July 2005: �T eo ple have shown tremendous ourag e and resilience.� We owe it to them to show compassion and solidarity in ret urn�w ith financial assistance but also ith moral and political support.� European Commission assistance to date ep resents a strong founda- ion for future EC engagement.Support thus far has focused on three main areas: �restoring key public services (education �boosting employment and reducing poverty; engthening governance,civil society, and human rights,including strong support to the electoral process. n 2006,the European Commission allocated a further 200 million to Iraq, with nearly 180 million dedicated to the por t ofbasic services. egotiations were launched in November 2006 for an EU-Iraqi Trade and Coop eration Agreement geared toward strengthening the bilateral relationship and helping to integrate Iraq into the world eco nomy. The European Commission opened a De atio n in Baghdad in 2006. The EU has expressed its deep concern ver Iran�s repeated failure to bring its nuclear program into compliance with the requirements ofthe International Atomic rgy Agency (IAEA) Board ofGovernors and the UN Security Council.The EU elcomed UN Security Council resolution 1737,which called on Iran to comply with eq uests,stating,�This decision represents a necessary and proportionate nse to Iran�s disregard for the co er ns ofthe international community and for Security Council resolution 1696.� he EU reiterated its continuing support fo or ts toward a negotiated long-term solution,as well as for the EU High Representative�s June 2006 proposal to Iran,which could open the way for a new EU-Iran relationship based on mutual respect and expanded cooperation. The EU has conducted a multi-track, gradual,engagement policy with Iran, including the prospect ofnegotiations on an agreement encompassing crucial political issues such as the promotion of human rights,the fight against terrorism, le East Peace Process,weapons of mass destruction,and parallel,linked negotiations on a possible Trade and Cooperation agreement. The EU-Iran bilateral Human Rights gue has been inactive since summer One ofthe EU policy goals is the pr omotion ofeconomic and social reforms within Iran needed to facilitate the country�s re-integration with the interna- ional community. The EU proposed in 2001 to strengthen its political and economic presence in Asia by broadening engagement in the region, creat ing policies to imp rov tual trade estment, romoting development orer nations,and promoting core EU alues such as protection ofhuman rights and the spread ofdemocracy. t the 2004 summit between the EU and 13 key Asian nations,representatives from the two continents agreed to strengthen coordination and cooperation within the Europe-Asia dialogue to address new chal- lenges such as instability,terrorism,prolif- eration ofweapons ofmass destruction, economic inequality,disease,environmen- tal degradation,and climate change. The EU also has regular dialogues on regional political and security issues with the 10-nation Association ofSoutheast Asian Nations (ASEAN) through the ASEAN Regional Forum,established in 1994.EU and ASEAN foreign ministers have met every other year since 1978. Results ofthe 2005 EU-ASEAN meeting ude support for ASEAN integration by making available the enlarged EU�s own experience as a model;the start ofnegotia- tions on bilateral agreements with Singapore and Thailand;concrete joint co operation in the fight against terrorism; marked progress under the TREATI (trade initiative);launch oftrilateral cooperation; and a joint EU-ASEAN visibility strategy. In 2005,the EU was ASEAN�s second largest export market,and third largest rading partner,after the U.S.and Japan. Asia is the No.2 market for EU exports behind North America,with trade in services an increasingly important element. A significant share ofEU foreign invest- ment flows to Asia,while some Asian countries are important investors in the EU. he EU and China account for one quarter ofthe world�s population.China is the orld�s fourth economic power,third biggest exporter,and wields increasing international political clout.As China grows,it is entering a new and challenging period ofits economic and social reform process.Europe has a major political and economic stake in supporting China�s full he European Union: A Guide for A Europe in the World September 2005. and successful transition into a prosperous, stable,and open country that embraces the rule oflaw and free market principles. Strategic partners since 2003,the EU and China share a growing interest in working together on key geo-political challenges, and in promoting sustainable development, peace,and prosperity for the benefit of both sides.The EU-China summit in 2006 agreed to launch negotiations on a com- pr ehensive new Partnership and Cooperation Agreement (PCA) that would encompass the full scope ofEU-China relations,including enhanced cooperation in political matters.This PCA will be the ke y mechanism to move the partnership forward,propelled by the EU�s ambitious new agenda for bilateral relations. he EU�s new China strategy,introduced in 2006,responds to China�s re-emergence as a global economic and political power. The EU approach is one ofengagement and partnership�a closer strategic part- nership means increased mutual responsi- bilities.The initiative identifies as priori- ties:support for China�s transition toward a more open and pluralistic society;sus- tainable development,including EU- Chinese cooperation on energy,climate change,and international development; strengthening bilateral cooperation in areas uding science and technology and immigration;and promoting international security in East Asia and beyond,and in the area ofnuclear non-proliferation. The new approach is accompanied by a e-ranging review and new strategy for building the EU�s trade and investment relationship with China,reflecting the dramat ic changes in EU-China trade and the importance ofmanaging China�s massive new weight in the global trading system.The argument is that China�s growing trade muscle brings with it new responsibilities to fulfill its WTO obliga- tions,open its markets,and trade fairly. The review sets out a range ofstrategies for improving the conditions on which EU companies trade in China:better market access,tougher action on intellec- tual property theft,and provision of new resources for business on the ground China is now the EU�s second largest trading partner after the U.S.,and the EU became China�s largest trading partner EU relations with India have developed at a remarkable speed over the past several years. The deepening ofthe EU-India political partnership is embedded in a strong institu- tional architecture,strengthened and enhanced continually as the relationship evolves,marked by advances made at EU- India summits that have taken place since 2000.At the 2006 EU-India summit,leaders discussed the implementation ofthe Joint Act n Plan and its role in fur dv er ade and investment.The EU and ndia also agreed to intensify their coopera- ion in areas ofmutual concern,from climate change and promoting multilateral trade liberalization to nuclear non-prolif- eration,good governance,human rights, and the fight against terrorism. The Joint Action Plan focuses in particu- lar on: �strengthening dialogue and consultation mechanisms; �deepening political dialogue and cooper- ation; �bringing together people and cultures; �enhancing economic policy dialogue and cooperation; �developing trade and investment. The EU is India�s largest trading partner, accounting for one-fifth ofIndia�s trade. Since 2001,bilateral trade has grown by an average of11 percent.A growing area ofEU- ndia trade is in services,which has increased significantly in recent years.The EU is also both the leading foreign investor in India and a major destination for Indian investors. To form a solid strategic partnership,the EU and Japan have agreed to a Joint Action Plan with four key objectives:promoting peace and security,enhancing trade, working together to tackle global chal- lenges,and bringing together people and cultures.Leaders at the 2006 EU-Japan summit agreed to strengthen the bilateral relationship through implementation of this Joint Action Plan.Recent progress in this arena includes the adoption ofthe Inv estme wo rk to foster growth in two-wa ec t investment,joint participa- n in the ITER project (research concern- ing the feasibility offusion as a large-scale energy source),and signature ofthe Japan- uratom agreement. The EU values its existing cooperation with Japan on a range ofinternational issues,including Afghanistan,Iraq,and Iran, and hopes to strengthen political coopera- tion further.As democracies sharing the same values and beliefs in the rule oflaw, The European Union: A Guide for Americans Europe in the World President Alpha human rights,and sustainable economic development,the EU and Japan together e the potential to project joint interests and ideals on a global scale. Together Japan and the EU account for 40 pe rcent ofglobal GDP and are both major aid donors.When the EU and Japan work together,people listen.Closer collaboration etween the two partners could make an important contribution to the success ofthe Doha Development Agenda negotiations and help to prepare the post-2012 multilat- eral regime to combat global warming. Africa,Caribbean,and Pacific The EU maintains links to African, Caribbean,and Pacific (ACP) countries that were already in place at the Union�s inception in the late 1950s,when many of the countries were current or recent colonies ofEuropean countries.The ACP, which now includes 79 countries,acts as a group within a legal framework�the 20- year Cotonou Agreement,signed in 2000� ving development,cooperation,and dialogue.(While an ACP country,Cuba is not a signatory to the Cotonou Convention) r 2003-2008 ofnearly $16 billion supports economic reform efforts of ACP governments,expansion ofthe private ctor,and improved social services, including better water supplies and modern energy services. The relationship between the EU and the ACP countries is evolving from a system of rade preferences granted by the EU to Economic Partnership Agreements based on the progressive and reciprocal removal oftr ade barriers.EPAs foster greater inter- regional trade ties between ACP countries and will gradually lead to the development of e trade areas. With the creation ofthe African Union in 2002,the European Union took a broader approach to its relations with Africa.The European Commission quickly initiated strategic support ofthe African Union Commission by funding its institu- tional development and core activities, including initiatives to promote peace and security,good governance,regional inte- gration,and increased trade. da became the first industri- alized country to sign a commercial and eco re ement with the EU.The agreement established mechanisms for cooperation in areas such as trade, industry,and science. Links between Europe and Canada have traditionally been close.A Partnership Agenda adopted by the EU and Canada in 2004 identifies ways to achieve progress on issues ofmutual interest,including foreign and security policy;justice and home affairs (including air travel security);promotion ofglobal economic growth;and tackling global challenges such as climate change and poverty in developing countries. In foreign and security policy,the EU and Canada draw on a shared commitment to effective multilateral institutions and good global governance to project common values on the world stage,for example,by working together to fully establish the jurisdiction ofthe er national Criminal Court. At their 2005 summit,EU and Canadian leaders completed the first round ofnegoti- atio n a framework for a bilateral Trade and Investment Enhancement Agreement. The next summit is scheduled for 2007. Building on long-standing bilateral elations between European countries and Latin America,the European Union has established and built up links with Latin America since the 1960s.The relationship between the two continents has substan- ially evolved over the past three decades. Today�s partnership reflects the increasing or tance both parties attach to further strengthening the relationship in the ure.As the region�s primary foreign ond most important trade partner,the EU is an important economic ical partner for Latin America. he EU is the leading d eve lopment donor he European Union: A Guide for A Europe in the World and Caribbean Summit. (below left) Sanitation and hygiene project in Colombia. (below right) European Commission President JosŽ Manuel Barroso at UN Summit, September 2005. in the region,providing 55 percent ofall aid.Trade between Europe and Latin America doubled from 1990 to 2005. A full range ofcooperation agreements have been concluded at all levels (bilateral, bi-regional and sub-regional) in the three areas ofeconomic cooperation,institution- d political dialogue,and the strength- ening oftrade relations to promote democracy,peace,and economic develop- ment in the region.All cooperation and association agreements signed by the EU American partners include a �democracy clause�,pledging cooperation and mutual respect for democratic princi- ples and human r ights. Mercosur (Mercado del Sur),the CACM (Central America Common Market) and ndean Community epresent the three main regional integration processes in Latin America. The specific dialogue between the EU and these regional partners reflects the importance attached by the EU to regional integration as a vehicle to foster better understanding between neighboring countries and to strengthening multilater- alism in the long term. The EU is negotiating an association reement with the Mercosur countries (Argentina,Brazil,Paraguay,Uruguay,and Venezuela) that will include the creation of ade area.The EU-Mercosur Agreement will be the first ever between two regional trade blocs,and will form the -rea ching free trade agreement in the world.A separate free trade agreement already exists with Chile as part ofa broader association agreement. The Union also provides preferred access to EU markets for the Andean Community and Central America to help fight illegal drug production. n July 2005,Chile became the second South American country,after Argentina, to participate with the EU in Operation ALTHEA,the peacekeeping mission in Bosnia and Herzegovina. he EU also actively supports the peace process in Colombia. Mexico The EU and Mexico share an institutional- ized political dialogue in which they discuss multilateral and bilateral issues, such as poverty,terrorism,human rights, democracy,migration,and regional devel- opment.The EU identified cooperation activities with Mexico for 2002-2006 in a Country Strategy Paper.Priority action ctor ude:so cial development and the red n ofinequalities among various ments ofthe Mexican population; conomic growth through facilitating the implementation ofa free trade area;scien- ific and technical cooperation;and consol- idation ofthe rule oflaw and institutional support.Two additional areas ofinterest are reform ofthe judicial system and EU financial support for human rights reform. An EU-Mexico Economic Partnership, Political Cooperation,and Coordination Agreement has been in force since 2000, and includes a free-trade agreement for goods,effective July 2000,and for services, in force from March 2001. Europe in the World The European Union: A Guide for Americans To achieve economic integration,the founding treaties provided for common policies in trade,agriculture,competition, and transport.Over the years,Member States agreed to add new sectors such as research and technology,energy,the envi- ronment,education,and training.The essing policy in sectors such as telecommunications and the information society. Created in 1962 to guarantee food supply and farm incomes in Europe,the Common Agricultural Policy (CAP) comprises a set ofrules and mechanisms which regulate the production,trade,and processing of agricultural products in the European Union (EU),with attention being focused increasingly on rural development. The 1970s and 1980s saw heavy price support and consequently,overproduction. After a series ofreforms,direct payments to farmers are now completely separated m farm p rod n and subject to com- e with st nvironmental,animal we lfare,and land management standards. While most other EU policies are financed predominantly from Member e treasuries,the CAP is the only policy funded entirely from the EU budget. Consequently,it accounts for a large slice ofthat budget��currently just under half. Nevertheless,the EU still spends only 0.43 percent ofits GDP on agriculture,a figure which will decline to about 0.33 percent by 2013. Today�s CAP reflects a political choice by uropean society.EU agriculture should be a versatile,sustainable,and competitive eco mic sector.In addition to fulfilling its oo d and fiber production,it con- tributes to nature conservation and the fr non-trade concerns�are funda- mental to sustainable agriculture,maintain- nv nment,and onding to consumer concerns. The new CAP will help the EU meet its pledg e to phase out all export subsidies, and thus to boost world trade and help developing countries emerge from poverty. re ed to bind these reforms o a global trade accord,providing that d States and othe mmit them- lv es to similar reforms.In the current world trade negotiations,the EU advocates: wer rad e distorting farm subsidies; WT O discipline applied to all forms of xport support;sustainable development in agriculture (consideration ofnon-trade concerns);working to increase market access opportunities for developing countries,particularly the poorest. he EU has an impressive record as an importer ofagricultural products from developing and least developed countries: �the EU is the world�s leading importer of ricultural goods,including goods from developing countries; �the EU absorbs around 85 percent of frica�s agricultural exports and 45 percent ofthose from Latin America; the EU is the largest imp or ter ofagricul- oducts from the poorest countries (least developed countries). We lfare. de ed to the protection and improved health status and condition ofanimals in y the food-producing hile permitting trade and imports ofanimals and animal products. ues these policies a tively,par- icularly in light ofrecent experiences with animal health�such as foot and mouth h poses se ious problems for animal health and welfare in addition to eco uences)�along with the r humans associated with some animal diseases (BSE,avian influenza).EU preve iv e health measures in this area fo cus on:trade and the import oflive roducts;the movement ofpets,including a pet passport;measures to control,and if possible,eradicate animal diseases;and separate identification measures to guarant ee the �traceability�ofanimals. The EU�s responsibility in this area includes legislating improvements for the welfare ofanimals and the prevention of uelty against animals and their mistreat- ment.EU activities in this area are based on the recognition that animals are ntient beings,and this principle is the foundation for EU legislation developed ove s related to animal we ming,transport,and slaughter.The same principle applies to er natio tivities to build awareness nsus on the importance of animal welfare internationally.The Co mmunity ction Plan on the Protection elfare ofAnimals,2006-2010, embodies this European commitment. Foo et EU policy e nsur onsumers can confidently enjoy access to an affordable and safe variety offood. er nce shows that the entire food hain must be addressed ifsafety is to be guarant ee s cover how farmers prod uce food,how food is processed,how it is sold,how it can be traced through the uppl yp e ofinformation pro vided on the label.The EU also egulates the safety offood imported into the EU,including requirements on extensive traceability. The EU and the U.S.both have high food safety standards,although U.S. consumers may recognize that different approaches in some areas�e.g., mandatory labeling ofgenetically modified organisms (GMOs) or banning An A to Z ofEU Policies The European Union: A Guide for Americans the use ofhormones as growth promoters�can sometimes give rise to disputes. Plant Health. EU plant health legislation aims to protect the safety offood derived from plants and to secure the health and quality status ofcrops in all Member States. The Union�s plant health policy also guards against the introduction and spread oforganisms harmful to plants or plant products within the EU and ensures quality conditions for the sale ofseeds and pr opagating material within the Union. The EU regulates intra-EU trade in plants and plant products,as well as imports from the rest ofthe world.The EU supervises the authorization and use ofpesticides, and sets standards to monitor and control esidues in food and feed. Aviation The EU has a single integrated free aviation market,which means all European carriers compete on equal terms across the EU. lines set capa y and fares a cco rding to ke which has generated increase d competition and significant conomic benefits in terms ofexpanded service,lower fares,and more jobs in the viation sector.The June 2006 European Common Aviation Area agreement extended the European Aviation Market to the Western Balkan countries,which together with the 27 EU Member States, Norway,and Iceland constitute a common aviation area ofmore than 35 states and over halfa billion people. Opening markets and promoting invest- ment are only two successes ofthe EU single aviation market.The establishment ofthe European Aviation Safety Agency in 2002 reflects the EU�s desire to ensure uniform safety standards and oversight. he adoption of�single sky�legislation in 2004 launched an ambitious program to create an EU wide traffic management system where airspace is configured on the basis ofoperational efficiency instead of natio nal frontiers,thereby reducing delays and congestion.The EU has also adopted important legislation in the fields of av iation security,environmental rules,and passenger protection. The European Court ofJustice ruled in ovember 2002 that a number of�open- skies�bilateral air services agreements between individual Member States and the United States are illegal.By reserving traffic rights for national carriers these agree- ments prevented free competition in the provision ofinternational air transport between the EU and the U.S.In June 2003, the Member States granted the European Commission a mandate to negotiate a comprehensive aviation agreement with the United States that would replace these bilateral accords.While a tentative agreement was reached in November 2005, talks are o ing to rebalance the agreement to the satisfaction ofboth sides. The EU and the U.S.are each other�s iation partners.Together their aviation markets account for about 60 percent ofglobal civil aviation output.A recent study carried out for the European Commission estimated that over the course offive years,an EU-U.S.Open Aviation Area would generate 26 million additional passengers;up to $18 billion in consumer be nefits;and an additional 80,000 new jobs in the EU and U.S.combined. EU competition policy is essential for the completion ofthe Internal Market,given that the single mar ket� ose is to al low ms to c te on a level playing field in l the Member States.The role ofcompeti- ion policy is to encourage economic effi- ciency by creating a climate favorable to vation and technical progress.In a market economy,competition promotes economic success,safeguarding the interests ofconsumers and ensuring that businesses,goods,and services are compet- itive on the world market. The European Union�s competition policy ensures that healthy competition is not hindered by anticompetitive practices by companies or national authorities (restrictive agreements and concerted practices),attempting to prevent one or more businesses from improperly exploit- ing their economic power over weaker co mpanies (abuse ofa dominant position). Unlike U.S.antitrust law,EC law also prohibits state aid that distorts competition in the internal market. The Commission has jurisdiction over e-scale mergers and acquisitions affecting more than one Member State and exceeding certain thresholds.The Co mmission can fine antitrust violators. Like the U.S.government,it is entitled to review mergers between non-EU ompanies with certain revenue thresholds that conduct significant business in the EU. The European Commission cooperates with the U.S.authorities (Department of Justice and the Federal Trade Commission) primarily on the basis ofthe 1991 Cooperation Agreement and the 1998 Positive Comity Agreement.Principal elements ofcooperation are mutual infor- mation about enforcement activities (noti- fications),coordination ofenforcement ctivities,and exchange ofnon-confiden- tial information.The intensity ofcoopera- tion is increased ifthe parties to a case anted a waiver allowing the exchange ofotherwise protected informa- tion.The Positive Comity Agreement allo s one party adversely affected by anti- The European Union: A Guide for Americans �European Commission Vice-President Transport competitive behavior in the other�s territory to request that the other party take action. The EU and the U.S.are exploring a second generation agreement,which would allow for the exchange ofconfidential information and facilitate cooperation in the fight against cartels. EU and U.S.cooperation over the years has led to a process of�soft convergence,� with the two partners seeing eye-to-eye in most cases.The fact that that the EU and the U.S.operate on the basis ofdifferent laws,however,makes it inevitable that, from time to time,different approaches will be adopted.The EU�s July 3,2001, decision blocking the GE-Honeywell merger is the only instance to date involving a U.S.company where the EU blocked a U.S.-approved merger. Complaints considered for the merger xamination,ho wever, came from both tlantic. Consumer Policy Consumer interests lie at the center of citiz ens�daily lives.The new 2007-2013 consumer policy strategy and program aim to bring these issues to center stage and put forward concrete actions to meet citizens� concerns,bringing a stronger focus to citizens�issues in policy making and helping to bring Europe closer to its citizens. Consumer policy is about making sure that all consumer products and services sold in the EU are safe,that consumers� rights are protected,that consumers have the information required to make an informed choice,and that they are not misled.This applies whether consumers are shopping in their local supermarket, traveling throughout the EU,or using a website based in another EU Member State.EU policy seeks to reassure consumers that,as trade liberalization continues,their interests are not taking a back seat to those ofbusiness. Recent consumer policy strategy sought to ensure a high common level of consumer protection by harmonizing the safety ofgoods and services,as well as the economic and legal interests that will enable consumers to shop with confidence anywhere in the EU and by whatever means.EU consumer policy also addresses the effective enforcement ofconsumer pro- tect n rules thr oughou prope r involvement ofconsumer organiza- ns in EU policies (on a footing similar to er The new 2007�2013 consumer strategy uilds on what has already been under- taken to make consumers more confident in the internal market,while taking into acc ount new challenges,such as increas- ing e-commerce and the liberalization of some services.The two main objectives nsume financial program 2007�2013) are to ensure a high level ofconsumer protec- tion,notably through improved evidence, better consultation,and better represen- tation ofconsumers�interest,and to ensure the effective application of consumer protection rules notably through enforcement cooperation,infor- mation,education,and redress. Education and Training The EU has several programs to promote ooperation in education between Member States.Many neighboring countries also participate in these programs which cover all areas of education from school through university and lifelong learning.Programs such as Socrates and Leonardo da Vinci offer grants to study,teach,or undertake training in another country.They also offer educational establishments the opportunity to cooperate on joint projects and establish networks.Under the Erasmus program,university students may pursue part oftheir studies in another country�well over 1.2 million have done so already.The Erasmus Mundus program, launched in 2004,promotes the EU as a fex cellence,by supporting er ve rsity EU Masters Courses and ships for non-EU students and scholars.Over 120 U.S.students and scholars have benefited already. Under the so-called Bologna Process, which now extends far beyond EU borders, 45 countries are working toward convergence oftheir higher education systems,through the introduction ofa system based on three cycles (bachelors,masters,doctoral);a European Credit Transfer System;diploma supplements to increase transparency and facilitate recognition ofqualifications;and cooperation in quality assurance. Transatlantic cooperation in education is an important component in stimulating economic growth and prosperity as well as nurturing the EU-U.S.relationship.The EU-U.S.Cooperation Program in Higher Education and Vocational Education and Training,renewed in 2006,jointly funds co operative activities between educational establishments in the EU and the U.S. Since the program started,over 100 projects have been funded,involving more than 700 institutions.Over 4000 students e benefited from the resulting exchanges.Under the new Atlantis Program,institutions can apply for four- ear grants to implement exchanges of students and teachers.In future years� budget permitting�it may be extended to raduate programs.It also supports projects on policy issues related to transat- lantic education. The Agreement also includes the Schuman-Fulbright Grant Scheme,which provides support to professionals for studies or training in areas ofspecific relevance to the EU-U.S.relationship at institutions in the U.S.or EU. EMU. The euro is the most visible element ofa much larger project�Economic and Monetary Union�a major EU achieve- ment that includes the establishment ofa common stability-oriented macroeconom- ic policy framework and reinforced coop- he European Union: A Guide for A The European Union: A Guide for Americans eration in a wide range ofpolicy fields. While only 13 EU Member States currently use the euro,all 27 participate in Economic and Monetary Union. Unique among monetary unions,EMU combines a single monetary policy for the euro area countries,defined and imple- mented by a supranational institution,the European Central Bank,with national responsibility in most other economic policies.These latter policies,however,are coordinated. TheLisbon Strategy for Growth and Jobs, adopted in 2000,aims to provide more and better jobs in a more dynamic and innovative Europe that is an attractive place to invest and work.Means to these ends will include increased investment in knowledge and innovation,policies to unlock business potential,particularly for small and medium sized businesses, increasing employment opportunities, and moving toward an efficient and inte- grated EU energy policy. TheStability and Growth Pact combining budgetary discipline with flexi- bility,to assist Member States to pursue natio nal fiscal policy objectives while ensuring that public finances remain on a sound and sustainable footing. ical complement to Europe�s internal market and has succeeded in deliv- ering conditions ofmacroeconomic ility�in terms oflow inflation, budgetary discipline,and elimination of exchange rate tensions�to the participat- ing Member States,while fostering further economic integration in product markets and financial markets. yment and Social P olic y er the European Employment Strategy the European Council (the EU�s Heads ofState and Government) agrees on ual,common priorities for employment policies,along with individual objectives for Member States.The objectives include:job creation,job quality,balance between work and personal life,opportunities for older workers,and eliminating discrimination based on race,gender,and disabilities.Each EU government produces an action plan for putting those guidelines into practice. Progress is measured against about 100 indicators,ranging from basic economic figures to the availability ofchildcare. The European Social Fund (ESF) is the main financial tool through which the EU translates its strategic employment policy aims into action.Established by the Treaty ofRome,the ESF has,for more than halfa ce ntury,and in partnership with the Member States,invested in programs to develop people�s skills and enhance their positions in the job market. The European Commission adopted an egrated Guidelines Package containing economic and employment policies for 2005-2008,designed to spur growth and jobs. Proposals include reducing regulatory roadblocks and increasing research and development investment.The EU must work d ifit is to achieve the Lisbon Strategy target ofa 70 percent overall employment rate by 2010,currently at 64.3 percent. Combined with its strategy to create jobs, the EU seeks to ensure a decent working environment throughout the Member �Renewable energy is one of the most important ways to bring Europe not only environmental benefits, but also other important advantages such as (i) improved security of supply due to reduced need for imported hydrocarbons, (ii) increased Piebalgs, March 9, 2005, Brussels. The Euro The EU officially launched the euro on January 1, 1999, followed three years later�on anuar y 1, 2002�with the circulation of banknotes and coins throughout the euro area.This milestone achievement represents the culmination of the EU�s long-standing ambition to cement closer economic integration with a single currency. The euro is the single currency of 13 of the EU Member States, and is issued and managed by the European Central Bank.The 13 Member State �euro area�represents a population of roughly 313 million and accounts for 20 percent of world output (compared to 30 percent for the U.S.).Beyond its economic impact, the euro has substantial political significance and adds to the EU�s capabilities as an international actor. The 13 euro countries are Austria, Belgium, Germany, Greece, Finland, France, Ireland, Italy, States,protect workers through rules on working conditions and workplace health and safety,and promote healthy labor- management relations.The European Commission�s Social Agenda,approved in early 2005,addresses the need for pension and social security entitlements that are tr ansportable across borders,employment for older workers,and support for women entering or re-entering the work force. Energy In January 2007,the European Commission proposed a comprehensive package ofmeasures to establish a new EU energy policy,intended to address a number ofkey concerns: �combating climate change; �reducing energy consumption; �securing the supply ofenergy; �achieving sustainable power generation from fossil fuels; �fostering a more open and competitive internal energy market; ec evelopment and job cr eation. cific targets are set for reducing reenhouse gas emissions,increasing renewable energy use,and improving nergy efficiency.The plan also calls for a Strategic Energy Technology Plan to promote innovation,a more integrated EU internal energy market that addresses energy sector competition problems within Member States,and an EU external energy policy that enables the EU to �speak with one voice�internationally on energy issues. The proposals also include a review of Member States�policies on nuclear energy. The proposed new EU energy policy is set against the backdrop ofan unsustain- able energy future.Currently,the EU imports 50 percent ofits energy,a statistic that could increase to 70 percent by 2030 if no policy changes are made.World energy demand is expected to increase by 50 percent over the same period,leading to higher prices and more competition for e energy resources.To reduce depend- ence on imports and cut pollution,the EU must reduce the use offossil fuels in indust ry,transport,and the home.At the same time,renewable energy sources must be used to generate electricity,heat and ool buildings,and fuel transport.The EU will also need to use traditional energy sources in a more sustainable way. European Commission President JosŽ Manuel Barroso said in early 2007:�The challenges ofclimate change,increasing import dependence and higher energy prices are faced by all EU members.A common European response is necessary to deliver sustainable,secure,and competi- tive energy.The proposals put forward by the Commission�demonstrate our com- mitment to leadership and a long-term vision for a new Energy Policy for Europe that responds to climate change.We must act now,to shape tomorrow�s world.� Environment The EU has developed a substantial body ofenvironmental law to protect against water,air,and noise pollution and to control risks related to chemicals,biotech- Dimas, April 18, 2005, Washington, D.C. The Schengen Agreement he European Union: A Guide for A The European Union: A Guide for Americans nology,and nuclear energy within the Union.The overall direction ofthe EU environment policy is laid out in recurring multi-year action programs,the most recent ofwhich��Environment 2010:Our Future,Our Choice��concentrates on four priority areas:climate change,nature diversity,environment and health, and natural resources and waste. In the area ofhealth,the EU has recently adopted a new chemicals policy and legis- lation known as REACH (Registration, Ev aluation,and Authorization ofChemical Substances),that enters into force on June 1,2007.REACH shifts the burden ofproof m government to industry to provide sufficient and adequate information con- cerning the properties and intended uses of hemicals in commerce to allow workers, downstream users,and consumers to use those chemicals safely. The EU�s environmental policy is under- pinned by the �precautionary principle� using available scientific information.It is also based on the �polluter pays�rule and the management and control ofpollution at the source.Costs ofpreventing and eliminating pollution should,in principle, be borne by the polluter�who may be equired to set up systems to take back, recycle,or dispose ofused products such as vehicles or electronics. nshrine d the notion of�sus- tainable development�in its Treaty and adheres to this practice by integrating envi- ro ntal responsibility across the policy and activity spectrum.The ultimate goal of sustainable development is to achieve a form ofdevelopment that meets the needs ofthe present without compromising the ability offuture generations to meet their own needs,ensuring that today�s consump- tion and/or pollution offinite resources for ec onomic growth does not jeopardize the growth possibilities offuture generations. The EU spearheads global efforts to protect the environment.The EU,for instance,is one ofthe initiators ofthe mov e by the United Nations Environment Program (UNEP) to create a strategic approach to the international manage- nt ofchemicals.The EU is an active party to the Kyoto Protocol on Climate Change,which entered into force in February 2005,and was ratified by more than 140 nations.On January 1,2005,the EU launched a CO2 emissions-trading program,which covers halfofthe EU economic sectors and is one ofthe principal instruments for achieving the EU�s target of8 percent reduction of greenhouse gases from their 1990 level by 2010.Member States established national allocation plans,agreed at the EU level,on carbon dioxide emissions from industrial Companies that exceed their cap will have to buy additional allowances from companies that succeed in reducing missions.T he EU is currently consider- ing further reductions ofgreenhouse gas emissions ofbetween 20 and 30 percent by 2020. The EU is party to a number ofinterna- tional agreements and partnerships, including the UN Framework Convention on Climate Change and the UN Montreal Protocol on Ozone Depletion. Foreign Aid and Development�See Freedom,Security and Justice One ofthe EU�s objectives is to consolidate itself as an area o �Freedom,Security,and ustice.� The Union assumes the common respon- sibilit r a full range ofpolicy areas to ht terrorism;tackle organized crime; manage migration;establish a common evelop supportive measures n integration to maximize the positive impact ofmigrants in the EU;and further deve lop an integrated management ofthe external borders and a common visa policy to guarantee the free movement ofpeople he EU takes legislative and other actions to put into practice the principle of mu tual recognition ofjudicial decisions and to e nsur e that court rulings and sentences passed in a specific national urisdic tion are fully accepted and enforced al systems within the EU.This principle ofmutual rec ognition applies to both civil and er The European arrest warrant,which is one example ofEU measures taken in this field, replaces the traditional extradition proce- dures among Member States,and allows wanted persons to be handed over directly from one judicial authority to another. Internal security and cooperation on ious and organized crime are important elements ofthe area ofFreedom,Security, and Justice.Following intense legislative activity since 1999,renewed in 2004 with The Hague Program,the EU has been lishing agencies and bodies that are essential to guarantee a working area of Freedom,Security,and Justice. EUROPOL, the European Police Office in The Hague,Netherlands (www.europol.europa.eu) assists in roving the effectiveness and coopera- tion ofthe competent authorities in the 27 European Union Member States in preventing and combating all forms of serious crime and terrorism.EUROPOL coordinates the collection,analysis,and dissemination oflaw enforcement infor- mation and deals with an expanding range ofcrimes,including counterterror- ism issues.Since 2006,EUROPOLalso functions as the Central Office for Combating Euro Counterfeiting both within the EU and externally.EUROPOL cooperates�mainly through its liaison e in Washington and four U.S.liaison officers based at the EUROPOLheadquar- ters in The Hague�with the U.S.law nfo rcement authorities. Established in 2002,EUROJUST consists ofa �college�ofexperienced judges and prosecutors.EUROJUST,also based in The Hague,was set up to enhance coordination and cooperation between national investigating and prose- cuting authorities ofthe EU27. Other bodies and decentralized agencies with a more specific focus are also essential tools to consolidate the EU as an area of Fr eedom,Security,and Justice without internal borders. FRONTEX,the European Agency for the Management ofOperational Cooperation at the External Borders ofthe Member States of the EU,has its headquarters in Warsaw, Poland.It applies existing and future EU measures relating to the management ofthe s common external border. The European Police College or CEPOL was established in 2000 as a network aimed at bringing together the national training institutes for senior police officers in the Member States ofthe EU. The EUAgency for Fundamental Rights provides the EU and its Member States with objective,reliable,and comparable informa- tion and data on racism,xenophobia, Islamophobia,and anti-Semitism to help the EU and its Member States formulate actions against racism and xenophobia. The European Monitoring Center for ugs and Drug Addiction is the central reference point for drug information in the European Union. Within the EU,responsibility for health policy is divided between the European Commission and the Member States with the latter,for example,responsible for health care delivery to citizens.The main thrust ofEU public health policy is to help EU countries pool their expertise on health,to identify and share best practices, and to help coordinate EU-wide prepared- ness and responses to health threats such as infectious disease outbreaks and obesity. Fostering cooperation between EU ries�healthcare systems is also becoming an increasingly important area ofactivity.A new health Strategy for 2007- 2013 is currently in preparation and is expected to be adopted in mid-2007. cial topics for work in this area include the EU Health Forum;communicable,rare and other diseases;HIV/AIDS;injury pre- ve ntion;tobacco;nutrition and obesity; bioterrorism;and health and environment. The European Center for Disease revention and Control (ECDC) (http://www.ecdc.europa.eu/),set up in 2004,now plays a key role in fostering coop- eration and coordination in the EU,and is developing a close working relationship with the U.S.Centers for Disease Control. uman rights,democracy,and the rule of w are core principles ofthe European Union.Embedded in the Union�s founding reaty,they have been reinforced by the adoption ofthe Charter ofFundamental Rights.Respect for human rights is a pre- requisite for countries seeking to join the Union and a precondition for countries concluding trade and other agreements with the EU. The European Union views human rights as universal and indivisible,and actively promotes and defends such rights within its borders and through its external relations.At the same time,the EU does not seek to usurp the broad powers ofits Member States in this sphere. The focus ofthe Union�s human rights policy is on civil,political,economic, social,and cultural rights.It also seeks to pr omote the rights ofwomen and children, minorities,and displaced persons. The Union is particularly concerned about human rights vis-ˆ-vis asylum and migration and is fighting racism,xeno- bia,and other discrimination against minorities. The EU Fundamental Rights Agency ves as an independent center of expertise on fundamental rights issues through data collection,analysis,and net- orking.The Agency advises the EU insti- tutions and the Member States on how best to prepare or implement fundamental rights-related EU legislation. Externally,respect for human rights and fundamental freedoms are general objec- tives ofthe Common Foreign and Security Policy (CFSP).Since 1992,all trade and cooperation agreements with non-EU countries contain clauses stipulating that human rights constitute an essential lement ofthe relations between the parties (currently more than 120). Failure to respect human rights can lead nsion oftrade concessions and aid the reduction ofaid programs. The EU�s program ofemergency human- ian assistance around the world is not normally subject to restrictions because of human rights breaches.These aid deliver- ies,in cash or in kind,or technical assis- tance are all decided with the sole aim of relieving human suffering whether caused by natural disasters or misrule by oppres- sive regimes. To add weight to its support for human rights around the world,the EU funds the European Initiative for Democracy and uman Rights (EIDHR).Established in 1994,EIDHR has an annual budget of 130 million and focuses on four areas: �strengthening democracy,good gover- nance,and the rule oflaw (cooperating ith civil society to promote political pluralism,a free media,and sound justice system); olishing the death penalty in countries that still retain it; �combating torture through preventive ures (e.g.police training and education) and repressive measures (e.g. creating international tribunals and criminal courts); �fighting racism and discrimination by ensuring respect for political and civil rights. The EU and the U.S.hold biannual Human Rights Consultations to discuss a range ofglobal and domestic issues as well as to develop strategies to promote human ights through multilateral organizations. The EU publicly condemns human rights violations wherever they occur,appealing ies concerned to end such violations,and pressuring the authorities in question. opean Union is actively he European Union: A Guide for A The European Union: A Guide for Americans promoting a global moratorium on the use ofthe death penalty and therefore protests against the practice in individual cases throughout the world.The EU has insisted that bilateral extradition treaties with non- EU countries automatically preclude the use ofthe death penalty in all cases ofextradited prisoners from EU Member States. Regional Development he EU strives to reduce the social and economic disparities among its regions,and has pursued this objective from its early years.And the EU includes some major economic disparities,which are twice as great in the EU of27 members,with its 268 regions,as they were in the Europe of15. Regional policy represents the concrete implementation ofthe European ideal of solidarity among Member States.More than one-third ofthe EU budget is allocated toward reducing gaps in develop- ment among regions as well as disparities in the well-being ofEU citizens. Four Structural Funds benefit regions in all the Member States.Three funds were set up in the 1970s�the European Social op eg nal Development op ean Agricultural e Fund�plus the newer Financial nstrument for Fisheries Guidance.These funds co-finance with the Member States rojects in areas affected by economic distress or industrial decline.The EU sets job creation,poverty reduction,and social inclusion as primary objectives. A Cohesion Fund was set up by the Maastricht Treaty to reduce economic dis- parities between the EU and Spain,Greece, Portugal,and Ireland.The Cohesion Fund finances up to 85 percent ofeligible expen- diture for major projects involving the environment and transport infrastructure, strengthening cohesion and solidarity within the EU.Eligible countries are the Member States whose per capita gross national product (GNP) is below 90 percent ofthe EU-average (since May 1, 2004,Greece,Portugal,Spain,Cyprus, Cz ech Republic,Estonia,Hungary,Latvia, Lithuania,Malta,Poland,Slovakia, Slovenia,Bulgaria,and Romania). reland is one ofthe EU regional policy�s most prominent success stories.Since 2004, Ireland is no longer eligible for the having exceeded eligibility levels with a per capita GNP of101 percent ofthe EU average. Fut ure priorities ofthe cohesion policy focus on convergence,competitiveness,and cooperation: �Convergence:supporting employment growth and job creation in the Member States and least developed regions; �Regional competitiveness and employ- ment:to anticipate and encourage the change; �European territorial cooperation:to ensure harmonious and balanced devel- op ment throughout the entire Union. ch and Development Europe has a long tradition ofexcellence in research and innovation,and each Member State has its own research and innovation policies and programs.In recent years,the �European research area� (ERA) has been taking shape.The purpose ofERA is to build a research and innovation equivalent ofthe �common market�for goods and services by better coordination ofresearch programs and the convergence ofresearch and innova- tion policies at national and EU levels, thereby securing the economic and com- petitive future ofthe Member States. More recently,as part ofthe �Lisbon Strategy,�EU leaders have recognized the need to accelerate investment in R & D to 3 percent ofGDP. ital to the development ofERA are the EU�s Framework Programs for research and technology development and demonstra- tion that have been in place since the early 1980s.These programs stimulate coopera- n among partners in different countries by funding transnational research and promoting coordination among scientific chnological facilities.Although the funds provided by the EU account for only around 5 percent ofthe overall public esearch funds in Europe (most research is funded nationally),this funding is a major instrument for encouraging research collab- oration in Europe and beyond.Central to the success ofthe Framework Programs is their relevance to European industry. At the end of2006,the European Commission published the first calls for proposals ofthe 7th European Framework Program for Research and Technological Development,the biggest ever European esearch program (2007-2013� billion).FP7 is divided into four main programs: Coop eration po rts cooperative research in specified thematic areas. Ideas funds investigator-driven research throug h a newly created European Research Council (ERC). People supports training and researchers� career development. Capacities supports the coordination and development ofresearch infrastruc- ture,regional research clusters,interna- tional cooperation,and closer ties be tween science and society. The EU is a major player in a number of international scientific and technological initiatives.For example,through ITER (International Thermonuclear erimental Reactor),a flagship project in fusion research,the EU is partnering with six countries�China,South Korea,the ed States,Japan,India,and Russia� to build a thermonuclear experimental reactor that relies on nuclear fusion. n 2006,the EU published a strategic roadmap for research infrastructures, including 35 large-scale research infrastruc- ture projects identified by the European Strategic Forum for Research Infrastructures (ESFRI),assisted by nearly 1000 high-level experts,including U.S.scientists. The EU also has a strong international science and technology policy,to support European competitiveness through strategic partnerships with other countries and to address specific problems ofdevel- oping countries or problems ofa global character. e and Technology Co- operation Agreement between the European Union and the United States, or inally signed in 1998 and renewed in 2004,brings a pan-European dimension to transatlantic S&T cooperation to comple- ment the many bilateral arrangements with individual Member States and between individual scientists.The S&T Agreement identifies a number oftopics highly relevant for transatlantic cooperation. So me actions are undertaken through implementing arrangements in selected areas (e.g.,environment,metrology, materials science�including nanotechnol- ogy non-nuclear and renewable energy, iotechnology). Through the Marie Curie Fellowship,the EU provides funding for European chers to work outside Europe for two years.More than 200 researchers have already come to the U.S.Similarly,funding is available for non-Europeans to work in Europe.Thus far,40 researchers have benefited from this support. The single market is at the core oftoday�s op nion. o make it hap pen,the ut ns and the Member States wo rked doggedly for seven years from 1985 o draft and adopt the hundreds ofdirec- tives needed to sweep away the technical, egulatory,legal,bureaucratic,and cultural barriers that stifled free trade and free movement within the Union. The European Commission estimates that this remarkable achievement has created more than 2.5 million new jobs since 1993 and generated more than billion in additional wealth.This is in addition to a greater choice ofgoods and services,lower prices for the EU�s 490 million consumers,creation ofeconomies ofscale and improved efficiency,and the enhanced capacity ofEuropean firms to compete in today�s globalized markets. he four freedoms ofmovement (enshrined in the Treaties)�for goods, services,people,and capital�are under- pinned by a range ofsupporting policies. Firms are prevented from fixing prices or ing up markets among them by the EU�s robust antitrust policy.People can work throughout the EU territory because Me mber States recognize many other indi- vidual Member States�academic and pro- fessional certifications. he creation ofthe single market gave European Union countries a stronger incentive to liberalize previously protected monopoly markets for utilities such as telecommunications,electricity,gas,and water.The independent national regulators who supervise the now-liberalized markets for telecoms and energy coordinate their activity at EU level.Not just big industries, but households and small businesses across Europe are increasingly able to choose their suppliers for electricity and gas. Still,there is unfinished business.The services sector,for instance,has opened up more slowly than markets for goods.This has been the case for a wide range of vices and for transportation. More red tape must be eliminated�such as those administrative and technical barriers to the free flow ofgoods and services,including Member State reluc- e to accept other Member State standards and norms or,at times,to recognize the equivalence ofprofessional ions.The fragmented nature of national tax systems also puts a brake on market integration and efficiency. he good news is that these dangers have been recognized by Member States and the European Commission,and remedial action is under way,although neither at a uniform pace nor in all sectors.For financial services,the EU�s action plan to develop an integrated market will cut borrowing costs for firms and consumers, and will offer savers a wider range of A new initiative �is a five-year plan to he European Union: A Guide for A investment products�savings plans and pension schemes�which will be available from the European supplier oftheir choice. Telecommunications,the Information A liberalized telecommunications environ- nt is essential for Europe�s economic growth and transition to the information society.The European Union fully liberal- ized telecommunications markets (including voice telephony and infrastruc- ture) in 1998,and played a key role in the conclusion ofthe World Trade Organization�s 1998 basic telecommunica- tions agreement.Since this process began, there has been tremendous growth in new technologies and services,including mobile phones and the Internet.In July 2003,a new legal framework,designed to strength- en competition in electronic communica- tions and safeguard consumer interests, came into force. eEurope. The eEurope initiative, launche d in June 2002,aims to a cce rate ope� s transition to a knowledge-based ec onomy and to realize the potential enefits ofhigher growth,more jobs,and better access for all citizens to the new rvices ofthe information age.eEurope provides a policy framework to more sharply focus existing programs and accel- erate adoption ofrelevant legislation. The first phase�the eEurope 2002 Action Plan�included 64 targets to be achieved by the end of2002,with the majority being completed successfully. eEurope 2005,launched in June 2002, focused on promoting a secure,broadband infrastructure,eBusiness,and public online services (eHealth,eLearning,and eGovernment).A mid-term progress report (February 2004) indicated steady pr ogress in most areas,but concluded that further effort was needed to share experi- ence and tailor services to user needs,and that strong political leadership was required.A May 2004 update proposed 15 co mplementary actions to achieve eEurope�s specific objectives and speed progress,while not substantially changing ction Plan�s balance or structure. A new initiative i2010�the European Information Society 2010�is a five-year plan to promote �digital convergence�of communications networks,media content, and devices;increase spending on Information and Communications Technology (ICT) research by 80 percent (with more than halffrom the private sector);and make digital services more inclusive and accessible for all sectors of society.Information Society Commissioner Viviane Reding explained the importance ofi2010:�To enhance vestment in this promising sector ofthe economy,we must provide a coherent reg- ulatory framework for Europe�s digital eco my that is market-oriented,flexible, and future-proof.� Several key indicators demonstrate ve progress:nearly halfofthe EU population now uses the Internet regularly (47 percent).Three-quarters of16�24 year olds across the EU used the Internet at least once a week in 2006.Mobile phone use in Europe is growing at an even faster rate.According to the European Commission,87 percent ofthe EU popula- n is subscribed to mobile phones,up from 18 percent in 1998,and exceeding the rate ofless than 65 percent in the U.S. Terrorism Terrorism is not a new phenomenon in Europe.In the United Kingdom,Ireland, and Spain alone,it has caused more than 5,000 deaths in 30 years.It has become even more international in recent years as clearly demonstrated by the bomb attacks in Madrid on March 11,2004,and in London in July 2005.Terrorism takes many forms and uses ever more sophisticated and deadly organizational techniques and operational methods.Bioterrorism and chemical threats are all too real.Well- rganiz error ist groups are receiving por t from sympathizer networks in y countries,and have rear bases and le financial resources. For the EU,terrorism is not a new policy hallenge�it is a constant policy challenge. In the wake ofthe September 11,2001, attacks,the EU made the concerted fight against terrorism a top priority.Within 10 days ofthe attack,the EU acted to establish an EU-wide list defining acts of terrorism and their commensurate penalties.Additionally,the EU adopted a European arrest warrant to replace the traditional extradition procedures among EU Member States. Further,it defined a common concept of terrorist offenses (now included by all EU Member States in their legal systems),and t the minimum level ofpenal sanctions for this type ofoffense,with the objective ofpreventing terrorists from finding refuge in a more lenient jurisdiction. Moreover,the EU has agreed collectively n a common list ofterrorist organizations and provided EUROPOL with additional resources to analyze terrorist threats and furthe r improve information exchange.In 2002,EUROJUST was set up to facilitate interaction between the judicial authorities fthe different Member State legal systems,through international mutual legal assistance,extradition requests,and cross- border criminal investigations. The struggle against terrorism requires the mobilization ofall citizens,and in this spirit ofincreasing awareness,March 11 has been designated as the official European Day ofCommemoration ofthe Victims ofTerrorism. The terrorist networks cross national borders and hence have an international dimension.The United States and the EU have resolved to work together to combat te rrorism. Joint efforts include intelligence sharing, extensive law enforcement and judicial coo peration,curtailing terrorist financing, The European Union: A Guide for Americans and enhancing trade and transport security.Agreements on the transfer of passenger information held by airlines to U.S.Customs and Border Protection,coop- eration on the security ofshipping con- tainers,and the periodic high-level talks between senior officials on both sides of tlantic represent just some ofthese common efforts.Cooperation between EUROPOLand the U.S.authorities to exchange intelligence and information is yet another example. n addition,both the EU and the U.S.are working on global standards that other nations can adopt to impede terrorism. he EU and its Member States also work on global terrorism issues with organiza- tions such as the United Nations,the anization for Security and Cooperation in Europe (OSCE),the G-8,and the International Atomic Energy Agency. Trade and Customs The EU has a common trade policy known �Co olicy.�EU Me r States agree to transfer compe- te nce (jurisdiction) to the Union in matters fexternal trade.Consequently,the EU functions as a single actor in trade matters, ith the European Commission negotiat- ing trade agreements and representing European interests on behalfofthe Union�s 27 Member States at bilateral and multilat- eral levels,including the WTO. Within the Union,Member States have removed all tariffs on trade,while having unified tariffs on imports from outside the EU�the EU27 maintain a �common external tariff.�This means that the same tariffis paid on products regardless of which EU country is the entry point to the EU market,and once customs procedures are complete,goods can be shipped throug hout the EU without additional duties.The achievement ofthis �customs union�in 1968 is one ofthe EU�s earliest milestones. EU customs authorities are also tackling w challenges�ensuring the smooth flow oftrade while protecting the environment and citizens�health and safety.Customs autho rities are on the front lines in the fight against terrorism and organized crime.Transatlantic cooperation in these eas is particularly active,with EU and U.S.customs officials working together to ensure container security and combat counterfeiting. Externally,the EU�s basic philosophy is to open its market to trading partners who do likewise,with preferential treatment for developing and least developed countries. Because harmonization oftrade policies was central to European integration,the EU has been a key player along with its rading partners in the successive rounds of international negotiations on trade liberal- ization.The EU has played a leading role al Agreement on Tariffs and Trade (GATT) and its successor,the World Trade Organization.The EU has n an active role in the round ofinter- national trade negotiations known as the Doha Development Agenda (DDA). The current WTO trade round�the Doha Development Agenda�provides a good example ofhow trade policy is coor- dinated in practice.The Commission sets and carries forward the EU priorities and ob jectives as spelled out in guidelines from the Council ofthe EU.Officials from the Commission�s Directorate-General for Trade,under the Trade Commissioner�s authority,are charged with actually con- ting the negotiations,and speak on behalfofthe EU as a whole.Coordination with Member States is assured at all times, hile the Commission keeps the European Parliament regularly informed.At the end ofthe Round,the Council must formally ree to the outcome. Transport A free flow ofgoods and people across national borders is essential for all 27 EU Member States.Considerable progress has bee ve regulating road,rail, vices;improving ac cess to the market;and applying compe- ition rules.Widespread benefits have resulted:trucks that take goods into one EU country can reload for the return trip instead ofcoming back empty;the air travel industry has experienced more com- petition and lower fares;and liberalization ofrail infrastructure that started in 2003 opened to competition 70 to 80 percent of rail freight traffic over main lines. Among the Commission�s goals set out in a 2001 White Paper on transport:improve rail service to attract more passengers and shippers,integrate European air traffic control structures to reduce flight delays, invest more in waterways,improve port services and maritime safety standards,and grate ticketing and baggage handling for dual-mode journeys. A mid-term review in 2006 found that policy needed to adapt to changed circum- stances,including an enlarged EU,rising rgy costs,and Kyoto commitments.The review called for a freight logistics action plan,intelligent transport systems,making ility greener and more efficient,a debate on urban mobility and how to effect changes,and an ambitious program for reen power in trucks and cars. Galileo,the EU�s independent satellite navigation system,is an important tool for supporting the EU�s main transport policy objectives.Galileo services will be used in every transport domain,from aviation to maritime to road,rail,and pedestrian. Galileo�s guarantee ofreliable satellite posi- tioning services will help provide answers to current mobility and transport problems in the EU,and it will lead to roved safety and comfort. The European Union: A Guide for Americans For additional information on all EU policy areas,please see: http://europa.eu/index_en.htm Summaries ofEU legislation in all policy areas can be found at: http://europa.eu/scadplus/scad_en.htm . Road to European Integration May 9,1950 French Foreign Minister Robert Schuman pro poses pooling Europe�s coal and steel industries. April 18,1951 op el Community y signed in Paris by Belgium, France,Germany,Italy,Luxembourg,and rs into force 1952). ar c h 25, 1957 pean Economic Community (EEC) and European Atomic Energy Community AT ies signed in Rome (ent ers into force 1958). April 8,1965 reaty signed merging the institutions of the three European Communities:the opean Coal and Steel Community,the European Economic Community,and the European Atomic Energy Community (enters into force 1967). ul y 1, 1968 Customs union completed. January 1,1973 Denmark,Ireland,and the United Kingdom join the Community. February 28,1975 First LomŽ Convention with African, Caribbean,and Pacific (ACP) countries signed. March 13,1979 op ean Monetary System (EMS) ecomes operational. January 1,1981 Greece joins the European Community. June 29,1985 European Council endorses �White Paper�plan to complete single market by end of1992. January 1,1986 Spain and Portugal join the Community. ul y 1, 1987 uropean Act (SEA),which,(among other innovative measures) provided for eatio a single internal market, ers into force. une 26-27, 1989 Madrid European Council endorses plan for Economic and Monetary Union (EMU). November 9,1989 the Berlin Wall October 3,1990 The five Laender ofthe former German Democratic Republic enter the Community as part ofa united Germany. October 21,1991 European Community and European Free Trade Association (EFTA) agree to form the European Economic Area (EEA).EEA in force January 1,1994. December 8,1991 Dissolution ofUSSR-Formation of Co mmonwealth ofIndependent States. r 11,1991 uropean Council meeting in Maastricht agrees on Treaty on European Union, rs into force November 1,1993. December 16,1991 Poland,Hungary,and Czechoslovakia sign the first Europe Agreements on trade and political cooperation. January 1,1993 uropean single market is achieved on schedule. January 1,1995 Austria,Finland,and Sweden join the opean Union. No vember 27-28,1995 he Euro-Mediterranean Conference of Ministers ofForeign Affairs,held in Barcelona marked the starting point ofthe Euro-Mediterranean Partnership (Barcelona Process),a wide framework of political,economic and social relations between the Member States ofthe European Union and Partners ofthe outhe rn Mediterranean. December 3,1995 The EU-U.S.Summit in Madrid launched the New Transatlantic Agenda (NTA), providing a new framework for the transat- lantic partnership,moving it from one of consultation to one ofjoint action in four major fields:promoting peace and stability, de mocracy,and development around the world;responding to global challenges; contributing to the expansion ofworld trade and closer economic relations;and building bridges across the Atlantic. June 17,1997 Tr y ofAmsterdam is concluded,and enters into force May 1,1999. March 12,1998 op erence in London launches pe-wide consultations on issues related to Common Foreign and Security ustic me Affairs. Ma ve n EU Member States qualify to launch o on J anuar June 1,1998 European Central Bank (ECB) inaugurated rankfurt,Germany. uary 1,1999 EMU and euro launched in 11 EU countries. June 23,2000 A new partnership agreement (2000-2020) between the EU and the ACP countries is signe otonou,Benin. The European Union: A Guide for Americans Annexes December 7�11,2000 EU leaders formally proclaim the Charter ofFundamental Rights ofthe European Union. January 1,2001 Greece joins the euro area. February 26,2001 Regulation adopted establishing the Rapid ct n Force. February 26,2001 Treaty ofNice signed,and enters into force February 1,2003. January�February 2002 The euro becomes legal tender and perma- nently replaces national currencies in EMU countries. January 1,2003 First European Security and Defense Policy n launches with the deployment of 500 European Union Police Mission officers to Bosnia-Herzegovina to train cal police officers and establish sustain- able policing arrangements. ecember 2003 EU leaders adopt a European Security Strategy. May 1,2004 Cyprus,Czech Republic,Estonia,Hungary, Latvia,Lithuania,Malta,Poland,Slovak Republic,and Slovenia become EU Member States. June 2004 European Council endorses European Neighborhood Policy. October 29,2004 The Treaty establishing the Constitution for Europe is signed by Heads ofState and Government and EU foreign ministers. Co nstitution requires approval by Member States. June 16-17,2005 European Council-Heads ofState and Government,following the French and Dutch negative referenda on the Constitutional Treaty,agree to a period of reflection in order to determine how best to proceed with the Constitutional process,expecting to render an assessment by mid-2006. October 3,2005 Accession negotiations begin with Croatia and Turkey. January 1,2007 Bulgaria and Romania join the EU and complete the fifth round ofenlargement. Slovenia adopts the euro. he European Union: A Guide for A Annexes Community Fisheries Control Agency (CFCA),Brussels,Belgium Community Plant Variety Office (CPVO), Angers,France European Agency for Management of Ope rational Cooperation at the External Bo rders ofthe EU (FRONTEX),Warsaw, Poland European Agency for Reconstruction (EAR),Thessaloniki,Greece European Agency for Safety and Health at Wo rk (EU-OSHA),Bilbao,Spain European Aviation Safety Agency (EASA), Koeln,Germany European Defense Agency (EDA),Brussels, Belgium op er for Disease Prevention rol (ECDC),Solna,Sweden European Center for the Development of Vocational Training (CEDEFOP), Thessaloniki,Greece pean Environment Agency (EEA), Copenhagen,Denmark European Food Safety Authority (EFSA), Parma,Italy European Foundation for the Improvement ofLiving and Working Conditions (E.FOUND),Dublin,Ireland European Judicial Cooperation Unit (EUROJUST),The Hague,Netherlands European Maritime Safety Agency (EMSA),Brussels,Belgium uropean Medicines Agency (EMEA), London,U.K. op ean Monitoring Center for Drugs ug Addiction (EMCDDA),Lisbon, Portugal European Monitoring Center on Racism and Xenophobia (EUMC),Vienna,Austria European Union Agency for Fundamental hts (successor to EUMC in 2007) uropean Network and Information Security Agency (ENISA),Heraklion, Cret Greece European Police College (CEPOL), Bramshill,United Kingdom uropean Police Office (EUROPOL),The Hague,The Netherlands European Railway Agency (ERA),tem- porarily in Brussels,Belgium;eventually in Lille/Valenciennes,France ACP-African,Caribbean and Pacific countries ASEM-Asia-Europe Meeting CAP-C n Agricultural Policy CARDS-Community Assistance for Reconstruction Development and Stabilization CCP-Common Commercial Policy CFSP-C ore ign and Security COPS-Political and Security Committee COR-C e ofthe Regions COREPER-Council� mmittee of Pe rmanent Representatives DG-Directorate-General EAEC-European Atomic Energy Co mmunity (also EURATOM) EAGGF-European Agricultural Guidance and Guarantee Fund EC-Eur op mmunity EC-European Commission ECA-European Court ofAuditors ECB-European Central Bank ECHO-European Commission Humanitarian Aid Office ECJ-European Court ofJustice ECFIN-Economic and Finance Council ECSC-Eur pean Coal and Steel Community EEA-European Environment Agency EEA-European Economic Area EEC-European Economic Community uropean Investment Bank uropean Judicial Network EMS-European Monetary System onomic and Monetary Union ENP-E uropean Neighborhood Policy EPC-European Political Cooperation EP-European Parliament ERDF-European Regional Development Fund ERM-Exchange Rate Mechanism EESC-European Economic and Social Committee The European Union: A Guide for Americans Annexes ESCB-European System ofCentral Banks ESDP-European Security and Defense Policy ESF-European Social Fund EU-European Union EUPM-European Union Police Mission EUR-The euro AT OM-European Atomic Energy Community (also EAEC) EUROMED-EU-Mediterranean Partnership FIFG-Financial Instrument for Fisheries ree dom,Security,Justice GATT-General Agreement on Tariffs and Trade GCC-GulfCooperation Council GDP-Gross Domestic Product GMO-Genetically Modified Organism GSP-Generalized System ofPreferences ntergovernmental Conference A-Instrument for Structural Polices for Pre-accession Programs JHA-Justice and Home Affairs JRC-Joint Research Center MEDA-EU financial instrument for Euro- Mediterranean Partnership MEPP-Middle East Peace Process MEP-Member ofthe European Parliament MRA-Mutual Recognition Agreement NTA-New Transatlantic Agenda PCA-Partnership and Cooperation Agreement PHARE-Originally:Action Plan for Coor d Aid to Poland and Hungary fo r Economic Reconstruction;thereafter,a pre-accession instrument to assist Central op ean applicant c ountries QMV-Qualified Majority Voting R&TD-Research and Technological De velopment SAA-Stabilizat ion and Association Agreements SAP-Stabilization and Association Process SAPARD-Special Accession Program for griculture and Rural Development SEA-Single European Act SEE-Southeast Europe ABD-Transatlantic Business Dialogue TACD-Transatlantic Consumer Dialogue TA CIS-Technical Assistance to the Commonwealth ofIndependent States TCAA-Transatlantic Common Aviation Area TEMPUS-Trans-European Mobility heme for University Students TEN-Trans-European Networks TEP-T ransatlantic Economic Partnership TLD-Transatlantic Legislators�Dialogue UNMiK-United Nations Mission in vo WEU-Western European Union WTO-World Trade Organization Annexes ormation: http://www.eurunion.org he European Union: A Guide for A European flag The 12 stars in a circle symbolize the ideals ofperfection,completeness,and y.The number ofstars does not eflect the number ofmembers. European anthem The melody comes from the Ode to Joy theme from the final movement of Beethoven�s Ninth Symphony.When used as the European anthem,this tune is played without the words. Europe Day he ideas behind what is now the European Union were first put forward on May 9,1950,in a speech by the French Foreign Minister Robert Schuman.May 9 is celebrated each year as the EU�s birthday,called Europe Day. Motto ofthe EU �United in diversity� Anthony Smallwood Head, Press and Public Diplomacy Editor-in-Chief Melinda Stevenson Sandi Auman The European Union: A Guide for Americans EuropeanUnion GUIDE FORAMERICANS

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