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www.fh-joanneum.at
MANAGEMENT
Development and Concepts of the EU
Prof. Vito Bobek
University of Apllied Sciences FH Joanneum
Applied Summer School
Business in Europe
www.fh-joanneum.at
MANAGEMENT
What is the European Union?
•
Shared values: liberty, democracy, respect
for human rights and fundamental
freedoms, and the rule of law.
•
Largest economic body in the world.
•
World’s most successful model for
advancing peace and democracy.
•
A unique institution – Member States
voluntarily cede national sovereignty in
many areas to carry out common policies
and governance.
•
Not a super-state to replace existing states,
nor just an organization for international
cooperation.
•
World’s most open market for goods and
commodities from developing countries.
28
7
30
500
million
Member States
Combined
population of
EU Member
States
Percent of world’s
population
Percent of
global GDP
55
Percent of combined
worldwide Official
Development Assistance
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MANAGEMENT
West Europe's Post-war Arrangements
•
The Early Post War Period: A Climate for Radical Change
–
Europe’s economy lay in ruin with its infrastructure, factories, housing and farms
destroyed or in shambles.
–
Worse yet, if a man were middle aged, it would have been the second time that he
found himself amid such devastation.
–
Many concluded that the nation-state model of governance was broken and a
replacement was needed. This simple realisation opened the door to a truly
revolutionary re-think.
–
Communism offered one alternative. But Stalin’s brutish treatment of Soviet and
East Europeans in the late 1940s and 1950s suggested to most West Europeans
that nirvana lay not is this direction.
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MANAGEMENT
•
In 1947, the Organisation for European Economic Co-operation (OEEC) was
set up to administer the US-backed Marshall Plan.
•
Its aim was to promote economic co-operation and to foster trade
liberalisation.
•
The OEEC succeed in economic terms, freeing trade and payments among its
17 members (the EU-15 plus Iceland and Norway).
•
However some OEEC members found the OEEC too weak and too limited to
bring about the deeper integration that they felt was necessary to avoid
future wars and restore economic strength.
•
The direction embraced by most of Europe’s leaders was that of European
political union.
•
Jean Monnet—the architect of modern Europe—headed a high-powered
pressure group called the Action Committee for the United States of Europe
(ACUSE) in 1955. This group’s membership included leading figures from
Socialist, Christian Democratic and Liberal parties from all of ‘the Six’
The Early Post War Period: A Climate for Radical
Change (1)
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MANAGEMENT
•
The group’s aim was nothing less than the replacement of
European nation-states with a supra-national government.
•
Their model was the European Coal and Steel Community (ECSC)
which had since 1951 provided supranational governance over
the coal and steel industries of France, Germany, Italy and the
Benelux nations
•
In 1951, the Six actually placed what was at the time the
industrial core of their economies under the supra-national
control of the ECSC.
•
By 1956, two proposals for further integration were under
consideration: the European Economic Community (EEC), which
proposed a customs union and a commitment to deeper
integration, and a looser free-trade area involving all of West
Europe.
The Early Post War Period: A Climate for Radical
Change (2)