English for European Studies Students

Unit 11. What Does the European Union Do?

Reading

The people who drafted the Treaty of Rome set the following task for the European Economic Community: “by establishing a common market and progressively approximating the economic policies of Member States, to promote throughout the Community a harmonious development of economic activities, a continuous and balanced expansion, an increase in stability, an accelerated raising of the standard of living and closer relations between the States belonging to it”.

These goals have been largely achieved, thanks to the free movement of goods, people, services and capital and to the EU’s policy of ensuring fair competition between businesses and protecting consumer interests. But, to enable all sectors of the economy and all regions of Europe to benefit from these achievements, they had to be backed up by ‘structural’ policies financed and pursued with commitment and determination by the EU itself.

Regional policy

The EU’s regional policy consists essentially of making payments from the EU budget to disadvantaged regions and sections of the population. The payments (213 billion euro in 20002006) are used to boost development in backward regions, to convert old industrial zones, to help young people and the unemployed find work, to modernise farming and to help less-favoured rural areas.

The money is paid through specific funds – the European Regional Development Fund (ERDF), the European Social Fund (ESF), the Financial Instrument for Fisheries Guidance (FIFG) and the European Agricultural Guidance and Guarantee Fund (EAGGF, also commonly known by its French acronym FEOGA).

To target the payments where they will have the greatest effect, the EU has set itself three priority objectives:

Objective 1 is to help develop regions where the wealth produced divided by the number of inhabitants (gross domestic product (GDP) per capita) is less than 75% of the EU average. The payments go to benefit about 50 regions by creating the infrastructure they lack, providing better training for local people and stimulating investment in local businesses.

Objective 2 is to help other regions in difficulty. They may be areas where the economy is being restructured, declining rural areas, or urban areas with serious problems.

Objective 3 is to combat unemployment by modernising training systems and helping to create jobs.

Social and employment policy

The aim of the EU’s social policy is to correct the most glaring inequalities in European society. The European Social Fund (ESF) was set up in 1961 to promote job creation and help workers move from one type of work and one geographical area to another. For 2000-2006, the ESF was allocated €60 billion from the EU budget.

Financial aid is not the only way in which the EU seeks to improve social conditions in Europe. Social progress is also supported by legislation that guarantees all EU citizens a solid set of basic rights. In December 1991, the Maastricht European Council adopted a Social Chapter implementing the Community Charter of Fundamental Social Rights for Workers, setting out the rights all workers in the EU should enjoy: free movement; fair pay; improved working conditions; social protection; the right to form associations and to undertake collective bargaining; the right to vocational training; equal treatment of women and men; worker information, consultation and

participation; health protection and safety at the workplace; protection for children, the elderly and the disabled.

The Common Agricultural Policy

At the Berlin Summit, when agreeing the ‘Agenda 2000’ aimed at ensuring that the EU had enough money to implement its policies, the European Council decided to reform the Common Agricultural Policy (CAP) so as to cut the costs involved and keep European farming competitive.

The aims of the CAP, as set out in the Treaty of Rome, have largely been achieved: a fair standard of living has been ensured for the farming community; markets have been stabilised; supplies reach consumers at reasonable prices; structures have been souped up. Other principles that were adopted in the course of time have also worked well. Consumers enjoy security of supplies, and the prices of agricultural products are kept stable, protected from fluctuations on the world market.

But the CAP has been a victim of its own success. As farming methods were modernised and agriculture in Europe became increasingly competitive, more and more people left the countryside and the farming community as a proportion of the EU workforce shrank from 20% to less than 5%. Production grew far faster than consumption, and the EU budget had to bear the heavy cost of disposing of the surpluses. Moreover, production was subsidised.

Steps had to be taken to reform this policy. The main objective was now to encourage farmers to produce high-quality products, in quantities more in line with demand, and to move away from intensive farming methods that damage the environment. Aid to farmers would no longer be related to the volume of goods they produce.

This reform is beginning to bear fruit: production has been curbed. The European Union is one of the world’s leading exporters and importers of agri-foodstuffs. Farmers are being encouraged to use sustainable farming practices that safeguard the environment and preserve the countryside.

Sustainable development

The most striking example of the way European institutions respond to public opinion is surely in the field of environmental protection. People have come to realise that pollution knows no boundaries, that our natural heritage needs to be protected and that the individual citizen has a right to safe and healthy products and living conditions. So the European Union has had to take very specific action on a whole range of issues: adopting EU-wide standards on air pollution; protecting the ozone layer by reducing emissions of chlorofluorocarbons (CFCs); improving waste water treatment and waste management in general; monitoring the use of chemicals, and so on.

In Johannesburg in August 2002, the United Nations held its ‘World Summit on Sustainable Development’ where the EU represented its own sustainable development policy – an example for the whole world to follow. The policy includes conserving and sustainably managing natural resources; an international system for managing the environment; action to boost Europe’s technological capacity and greater efforts to share that technology with the developing world.

There are major challenges here. How can economic growth – which is vital to developing countries – be encouraged without damaging the environment? How should water resources be managed? How can we access sustainable sources of energy?

Technological innovation

The founders of the European Union rightly saw that Europe’s future prosperity would depend on its ability to remain a world leader in technology. They saw the advantages to be gained from doing joint European research. So, in 1958, alongside the EEC, they set up Euratom to enable the member states to jointly exploit nuclear energy for peaceful purposes.

Joint research at EU level is designed to complement national research programmes. It focuses on projects that bring together a number of laboratories in different EU countries. It supports fundamental research in fields such as controlled thermonuclear fusion (a potentially inexhaustible source of energy for the 21st century) through the Joint European Torus (JET) programme. It also

encourages research and technological development (RTD) in key industries such as electronics and computers, which face stiff competition from outside Europe. Apart from that, priorities of RTD include the life sciences (genetics and biotechnologies), the treatment of serious illnesses, nanotechnologies, aeronautics and space research, sustainable energy systems, global environmental change and the ecosystem.

Comprehension Check

1.What were the goals of the EEC?

2.How were these goals achieved?

3.What is the EU regional policy aimed at?

4.What are the objectives of this policy and why are they needed?

5.What is the EU social policy like?

6.Why did the CAP have to be reformed?

7.In what way was the CAP reformed?

8.What is sustainable development?

9.What steps are taken by the EU in sustainable development?

10.How is technology being developed in the EU?

Vocabulary Activities

1. Find in the text the equivalents for the following:

2. Complete collocations (there can be more than one option).

3.Write a short summary of the text using at least ten of the words and phrases from ex.1 and 2.

4.Complete the text with the appropriate word (the first letter is given).

Agenda 2000

Agenda 2000 is a strategy paper, a………………… by the European Commission on 15 July 1997, which sets out a project for Europe for the year 2000. It announces a r……………….. of Community policies, particularly in the light of the enlargement towards Central and Eastern Europe, and the financial framework for the period 2000-2006. Agenda 2000 t……………… all the political, economic and social issues facing the Union at the beginning of the 21st century.

Agenda 2000 is in three parts:

the first addresses the problem of the European Union's internal operation, particularly the reform of the common agricultural p……………….., and of the policy of economic and social cohesion. It also contains recommendations on how to face the c………………….. of enlargement in the best possible conditions and proposes putting in place a new financial framework for the period 2000-06;

the second proposes a reinforced pre-accession strategy incorporating two new elements: the partnership for accession and extended participation of the c……………….. countries in Community programmes and the mechanisms for applying the Community acquis;

the third consists of a study of the impact of e………………………. on European Union policies.

5. Match the phrasal verbs below with their synonyms or definitions.

6. Fill in the gaps with the appropriate phrasal verb.

a)The group plans to ______________an import business.

b)In the report the minister ______________ the plans of the government for modernising

farming.

c)The event was unique in _________________ politicians, business leaders, and academics.

d)It is high time we had our PC _______________.

e)Big business is always __________________ by the government.

Task

Group A prepare a presentation on the EU regional policy.

Group B prepare a presentation on the CAP.

Group C prepare a presentation on the social and employment policy.

Group D prepare a presentation on the EU sustainable development.

Group E prepare a presentation on the EU technology development.

Unit 12. The single market

Reading

Article 2 of the Treaty of Rome set the following aim for the European Economic Community (EEC): “to promote throughout the Community a harmonious development of economic activities, a continuous and balanced expansion, an increase in stability, an accelerated raising of the standard of living and closer relations between the States belonging to it”.

There were two complementary ways of achieving this. One was to open up the borders, allowing people, goods and services to move around freely within the EEC. The other was to organise solidarity among the member states by setting up common policies and financial instruments.

In February 1986, 12 member states signed the Single European Act, setting out a timetable for completing the single market by 1993. Progress thereafter was rapid. Businesses, professions

and trade unions all moved ahead swiftly, adapting their strategies to the new rules of the game. The benefits were soon felt in everyone’s daily life, as a wider range of goods and services became available and people were able to move around freely in Europe, whether for work or leisure.

The state of play

Overall, the achievements so far have been very satisfactory:

-the national public contract markets have been opened up, thanks to tougher rules requiring transparent procedures and proper checks for public supply and works contracts;

-disparities between national tax systems have been ironed out by certain common rules on indirect taxation, value added tax (VAT) and excise duties;

-the money markets and financial services markets have been liberalised;

-steps have been taken to harmonise national laws on safety and pollution, and more generally EU countries have agreed to recognise the equivalence of each other’s laws and certification systems;

-obstacles hindering the free movement of persons have been removed: passport checks at most of the EU’s internal borders have been abolished, and professional qualifications are mutually recognised by the EU countries;

-company law has been harmonised in the EU, and the member states have brought their national laws on intellectual and industrial property rights (trade marks and patents) into line with one another. This has created a much better environment for industrial cooperation.

However, freedom of movement is far from complete. There are still plenty of obstacles to hinder people from moving to another EU country or doing certain types of work there. The Commission has taken steps to improve worker mobility – to ensure, for example, that educational diplomas and job qualifications obtained in one EU country are recognised in all the others.

Work in progress

The single market is certainly up and running, but it is still very much a ‘work in progress’ with constant room for improvement.

Most of the European Union’s wealth comes from its service industries, and these are being liberalised – though some sectors are opening up faster than others.

Liberalisation of the telecommunications sector has already cut prices considerably. At the end of 2001, long-distance telephone calls were, on average, 11% cheaper than in 2000, and 45% cheaper than in 1998.

Steps are being taken to create a genuine single market for natural gas and electricity, but the whole subject of energy sales is a delicate one. The market must ensure that all consumers have access to dependable supplies of energy at affordable prices.

In November 2000, the Commission published a discussion document (a ‘Green Paper’) setting out guidelines for a Europe-wide energy policy that uses a range of energy sources and ensures safety of supply. Unless the EU takes action on this, in 20 to 30 years’ time it will find itself having to import 70% of its energy resources, as against 50% at present. It is already dependent on the Middle East for 45% of its oil imports and on Russia for 40% of its imports of natural gas.

One of the EU’s objectives is to develop new and renewable energy resources (including biofuels) so that, by 2010, the contribution made by these ‘clean’ resources to the EU’s overall energy supplies will have doubled – from 6% to 12%.

One major way to save energy in the EU – and to improve the environment – is through transport policy. At present, some 75% of all goods transported in Europe, and around 86% of all passengers, go by road. Not only does this consume a lot of energy, it also causes congestion and harms the environment. In some urban areas, traffic is virtually gridlocked and air pollution has reached alarming levels. To help deal with this problem, the EU aims to take as much freight as possible off the roads and put it onto the railways and inland waterways.

Under pressure from the Commission and Parliament, the EU’s postal services are also being opened up to competition. This raises the whole issue of ‘services of general interest’. The

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European Union Treaty recognises the importance of providing public services that the market alone cannot supply. Everyone must have access to basic services (such as water, electricity, health and postal services, etc.) at affordable prices. Indeed, this access is essential for the EU’s economic and social cohesion.

Work to complete the single market now focuses on service sectors that, in some countries, have long been the preserve of national service providers. Opening them up to competition should help create jobs and strengthen Europe’s economy.

Comprehension Check

1.What were the ways of creating the single European market (SEM)?

2.What was the role of the Single European Act in creating the SEM?

3.What has been achieved so far?

4.What still remains a problem?

5.What are the goals of the SEM?

Vocabulary Activities

1. Match two parts of phrases and make some sentences with them.

3. Translate.

С самого момента создания Европейское Сообщество работало над созданием Единого внутреннего рынка. Первым шагом стал полный таможенный союз - отмена всех тарифов на торговлю между странами ЕС, произошедшая в июле 1968 года. А единый рынок "без границ" существует с 1 января 1993 года. В 1985 году в Белой книге Европейской Комиссии, проект которой был подготовлен ее тогдашним председателем Жаком Делором и членом Комиссии лордом Кокфилдом, впервые приводился полный перечень мер, необходимых для отмены этих границ в Европе. Там же устанавливался и окончательный срок завершения этой работы - 31 декабря 1992 года. Цель состояла в том, чтобы устранить остававшиеся на тот момент физические, технические и налоговые барьеры и создать внутри ЕС подлинный внутренний рынок. В результате людям стало легче жить и работать в других государствах. Для обращения многих товаров и услуг были введены единые европейские правила, заменившие сильно различавшиеся национальные установления.

От создания единого европейского рынка выиграли в Европе все, независимо от того, решили они или нет отправиться в путешествие или работать за рубежом. Например, это привело к росту благосостояния на 877 миллиардов евро, к созданию 2,5 миллиона рабочих мест, увеличению выбора качественных товаров и услуг, а во многих случаях снижению цен

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благодаря открытию национальных рынков, приведшему к росту конкуренции. Более того, свыше 15 миллионов граждан ЕС переехали в другие страны Союза, чтобы там работать или отдыхать на пенсии. Они пользуются там полной социальной защищенностью, могут избирать и быть избранными там, где они живут. Подобная мобильность оказала стимулирующий эффект в отношении занятости и инвестиций, помогла осуществить переток квалифицированных кадров туда, где в них нуждались более всего. В рамках программы ЭРАЗМУС более миллиона молодых людей получали образование в других государствах ЕС. И, наконец, у правительств стало больше средств, которые можно потратить на здравоохранение и образование: миллиарды евро были сэкономлены в результате более открытых и конкурентных процедур заключения контрактов в общественном секторе.

Либерализация рынков приводит к тому, что потребитель выигрывает от увеличения выбора и снижения цен. Например, широкая программа либерализации транспортного сектора привела к снижению тарифов на авиаперевозки, появлению большего выбора маршрутов и перевозчиков, автотранспортники добились большей гибкости, улучшилась кооперация в морском транспорте. От наличия единого рынка в Европе выигрывают все. Даже в тех секторах, где прежде доминировали национальные монополисты, либерализация привела к росту занятости. Например, между 1995 и 2000 годами в частично либерализованом почтовом секторе занятость выросла на 4,3 процента.

Task

Group A prepare to give a talk on benefits of the single European market.

Group B prepare to give a talk on problems of the single European market.

Unit 13. Economic and monetary union – and the euro

Reading

Since 1 January 2002, more than 300 million European citizens have been using the euro as a normal part of daily life. It took only 10 years to get from the Treaty of Maastricht (February 1992), enshrining the principle of a single European currency, to the point where euro notes and coins were circulating in 12 EU countries. This is a remarkably short time to carry through an operation that is unique in world history.

The euro has replaced currencies that were, for many of the countries concerned, centuries-old symbols and instruments of their national sovereignty. In doing so, the new currency has moved Europe considerably closer to economic union. It has also given EU citizens a much clearer sense of sharing a common European identity.

How was the idea of a single European currency born? As long ago as 1970, the Werner Report, named after the then Prime Minister of Luxembourg, proposed a convergence between the economies and currencies of the six EEC countries. The first step in this direction was not taken until March 1979, when the European Monetary System (EMS) was set up. The EMS was designed to reduce variations in the exchange rates between the currencies of the member states. It allowed them fluctuation margins of between 2.25% and 6%. But its mechanisms were weakened by a series of crises caused by the instability of the US dollar and the weakness of some currencies that became prey to speculators, especially at times of international tension.

The need for an area of monetary stability was felt increasingly as Europe made progress in completing the single market. The Single European Act, signed in February 1986, logically implied convergence between European economies and the need to limit fluctuations in the exchange rates between their currencies. How could a single market, based on the free movement of people, goods and capital, be expected to work properly if the currencies involved could be devalued? Devaluing a currency would give it an unfair competitive advantage and lead to distortions in trade.

In June 1989, at the Madrid European Council, Commission President Jacques Delors put forward a plan and a timetable for bringing about economic and monetary union (EMU). This plan was later enshrined in the Treaty signed at Maastricht in February 1992. The Treaty laid down a set of criteria to be met by the member states if they were to qualify for EMU. These criteria were all about economic and financial discipline: curbing inflation, cutting interest rates, reducing budget deficits to a maximum of 3% of GDP, limiting public borrowing to a maximum of 60% of GDP and stabilising the currency’s exchange rate.

In protocols annexed to the Treaty, Denmark and the United Kingdom reserved the right not to move to the third stage of EMU (i.e. adoption of the euro) even if they met the criteria. This was called ‘opting out’. Following a referendum, Denmark announced that it did not intend to adopt the euro. Sweden too expressed reservations.

There would have to be some way of ensuring the stability of the single currency, because inflation makes the economy less competitive, undermines people’s confidence and reduces their purchasing power. So an independent European Central Bank (ECB) was set up, based in Frankfurt, and given the task of setting interest rates to maintain the value of the euro.

STEP BY STEP TO THE EURO

7 February 1992: the Treaty of Maastricht is signed

The Treaty on European Union and Economic and Monetary Union (EMU) is agreed in Maastricht in December 1991. It is signed in February 1992 and comes into force in November 1993. Under this treaty, the national currencies will be replaced by a single European currency – provided the countries concerned meet a number of economic conditions. The most important of the ‘Maastricht criteria’ is that the country’s budget deficit cannot exceed 3% of its gross domestic product (GDP) for more than a short period. Public borrowing must not exceed 60% of GDP. Prices and interest rates must also remain stable over a long period, as must exchange rates between the currencies concerned.

January 1994: the European Monetary Institute is set up

The European Monetary Institute (EMI) is set up and new procedures are introduced for monitoring EU countries’ economies and encouraging convergence between them.

June 1997: the Stability and Growth Pact

The Amsterdam European Council agrees the ‘Stability and Growth Pact’ and the new exchange rate mechanism (a re-born EMS) designed to ensure stable exchange rates between the euro and the currencies of EU countries that remain outside the euro area. A design is also agreed for the ‘European’ side of euro coins.

May 1998: 11 countries qualify for the euro

Meeting in Brussels from 1 to 3 May 1998, the Union’s political leaders decide that 11 EU countries meet the requirements for membership of the euro area. They announce the definitive exchange rates between the participating currencies.

1 January 1999: birth of the euro

On 1 January 1999, the 11 currencies of the participating countries disappear and are replaced by the euro, which thus becomes the shared currency of Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands Portugal and Spain. (Greece joins them on 1 January 2001). From this point onwards, the European Central Bank takes over from the EMI and is responsible for monetary policy, which is defined and implemented in euro. Exchange operations in euro begin on 4 January 1999, at a rate of about €1 to 1.18 US dollars. This is the start of the transitional period that will last until 31 December 2001.

1 January 2002: euro coins and notes are introduced

On 1 January 2002, euro-denominated notes and coins are put into circulation. This is the start of the period during which national currency notes and coins are withdrawn from circulation. The period ends on 28 February 2002. Thereafter, only the euro is legal tender in the euro area countries.

Comprehension Check

1.How long did it take to put euro into circulation?

2.What was the impact of euro?

3.How was the idea of a single European currency born?

4.What are the criteria for the member states to join the economic and monetary union?

5.What were the reasons for setting up European Central Bank?

6.Describe the steps of introducing euro.

Vocabulary Activities

1. Match two parts of phrases and make some sentences with them.

2.Write a short summary of the text (up to 10 sentences) using at least 5 of the phrases from above.

3.Explain the following concepts.

4. Give plural forms for the following:

5. Match the phrasal verbs with their equivalents or definitions.

6. Complete the gaps with the appropriate phrasal verb in the correct form.

a)The EU _____________ tough standards for water quality.

b)It’s not an easy task, and we are relying on you to ___________ it __________.

c)The Russian Federation ________________ all the debts of the Soviet Union.

d)The firm ________________ of the company car scheme last year.

e)He rejected all the proposals __________________ by the committee.

Task

Group A prepare to explain why Denmark, Sweden, and the UK did not join the EMU (you can choose one of the countries).

Group B give a talk about the recent eurozone member (Slovenia) and what problems they had to tackle.

Group C give a talk about some of the EU members which are planning to join the eurozone and what steps they are taking in this direction.

Render the article

Такой неоднозначный евро

В этом месяце исполняется 5 лет, как, используя образный язык Еврокомиссии, евро приземлился в карманы более 315 млн европейцев. 13 стран используют евро в качестве своей валюты. Судя по всему, европейские чиновники – люди не суеверные, и чертовой дюжиной их не напугать: в документах, посвященных годовщине запуска наличного евро, период существования единой европейской валюты оценивается весьма положительно

Предваряя результаты недавно проведенного опроса общественного мнения об отношении к евро, представители Еврокомиссии в документе, красноречиво озаглавленном 'Да здравствует евро!', перечисляют все те выгоды, которые принесла единая валюта. Это низкая инфляция и низкий банковский процент, стабильность обменного курса и рынка в целом, дешевый импорт, развитие торговли и инвестиций, большие возможности для путешествий, возросшая прозрачность ценообразования и развивающаяся конкуренция. В документе с удовлетворением отмечается, что, судя по опросу, большинство граждан еврозоны (68%) довольны единый валютой. Евро пользуется растущей популярностью, заключает Еврокомиссия.

Однако за бодрым тоном этого рапорта нельзя не почувствовать горечь и даже какую-то обиду на несознательных европейцев. По мнению еврочиновников, для граждан ЕС характерно широко распространенное невежество в отношении евро. Еврокомиссия сетует, что не все еще 'полностью осознали преимущества единой валюты'. До сих пор популярно утверждение, что евро спровоцировал рост цен, тогда как в действительности во многих странах еврозоны никогда инфляция не была такой низкой – всего около 2%.

Обращаясь к опросу, нельзя не признать, что, несмотря на оптимистический настрой Еврокомиссии, сами граждане далеко не так однозначно относятся к евро. Только меньше половины из них (48%) считает, что введение евро было правильным решением (5 лет назад так полагали 59%). Соответственно, на 10% возросло количество тех, кто неодобрительно относится к появлению евро: их число составило 38%.

Те, кто положительно относится к евро, в основном ссылаются на то, что стало легче путешествовать и проще сравнивать цены. Импонирует им и то, что единая европейская валюта способствовала упрочению положения Европы в мире.

Подавляющее большинство (80%) тех, кто недоволен введением евро, сокрушаются по уже упомянутому поводу – из-за возросших цен, продолжая и дальше разочаровывать Еврокомиссию своим нежеланием соглашаться с ее настойчивыми уверениями, что никакого влияния на цены введение евро не оказало. Также некоторые из них (19%) считают, что единая валюта усложняет жизнь и негативно сказывается на ситуации с занятостью (7%).

Интересно, что, совершая покупки, до половины европейцев все еще переводят цены в свою национальную валюту, прекратившую существование 5 лет назад. В этом отношении не вызывают удивления данные, что для большинства представителей еврозоны (78%) введение единой валюты никак не повлияло на укрепление их общей европейской идентичности.

Большинство граждан стран еврозоны поддерживают ее дальнейшее расширение и включение в нее стран-новичков ЕС, считая, что это может и должно произойти. Однако в действительности из стран, вступивших в ЕС в 2004 г., пока только Словения согласилась сделать это. Правда, в будущем году ее примеру должны последовать Мальта и Кипр, а в 2009 г. – Словакия.

Время принятия евро балтийскими странами, а также Польшей, Венгрией и Чехией остается неопределенным. Чтобы войти в еврозону, они должны достигнуть ряда макроэкономических показателей и соответствовать так называемому Маастрихтскому критерию. Основные сложности вызывают три требования: инфляция должны не более чем на 1,5% превышать среднюю инфляцию у трех лучших в этом отношении стран еврозоны, бюджетный дефицит не должен превышать 3%, а государственный долг – 60% ВВП.

Интересно отметить, что граждане этих стран не рассматривают введение евро как необходимое следствие своего членства в Евросоюзе: 75% поляков, 68% словенцев и 64% венгров полагают, что от их правительства зависит, входить или нет в еврозону, тогда как на самом деле – это обязательное условие вступления в ЕС.

Вцелом, около 50% население новых стран ЕС позитивно относятся к перспективе замены национальной валюты на евро. Однако в четырех странах (в Прибалтике и на Кипре) доля противников этой перспективы практически вдвое превышает число евро-оптимистов.

Опрос показал, что почти половина жителей стран еврозоны достаточно ограниченно воспринимают сам факт существования единой валюты: они, например, не видят особой связи между Европейским монетарным союзом (ЕМС) (являющимся фундаментом еврозоны

вотношении фискальной и монетарной политики) и появлением евро. Несмотря на то, что большинство опрошенных слышали о существовании ЕМС, почти каждый второй не связывает наличие евро с координацией экономической политики внутри ЕС. Хотя очевидно, что введение евро сначала в качестве безналичной валюты (1999 г.), а затем в 2002 г. и как средства наличной оплаты, заложило основу создания полноценного, объединенного европейского экономического пространства.

Однако это отчетливо понимают представители Еврокомиссии. Анализируя развитие еврозоны, эксперты Еврокомиссии в своем ежегодном докладе отмечают, что введение евро и появление связанной с этим единой монетарной политики увеличило экономическую взаимозависимость и привело к развитию более тесных торговых и финансовых связей внутри еврозоны. Наличие евро также повлекло за собой необходимость координации экономической политики. Создание полноценного ЕМС, по мнению Еврокомиссии, позволило значительно увеличить экономическую активность, сохраняя при этом ценовую стабильность. Рост ВВП еврозоны составил около 2%, на этом же уровне была и инфляция в 2006 г. Эксперты Еврокомиссии отмечают, что выход еврозоны из полосы экономической рецессии произошел, главным образом, благодаря взвешенной и скоординированной монетарной и фискальной политике, ставшей возможной после появления единой европейской валюты.

Вто же время, сравнительно низкие темпы экономического роста не устраивают Еврокомиссию, как и достаточно высокая безработица (около 8%). Еврокомиссия настаивает на необходимости серьезных структурных реформ, направленных на углубление

внутреннего европейского рынка. Еврокомиссия рекомендует ужесточить бюджетную политику, провести реформы рынков труда, капиталов, товаров и услуг. Также представители Еврокомиссии настаивают на более активном приведении национального законодательства в соответствие с нормами ЕС. Цель — уничтожение имеющихся барьеров в экономике между странами еврозоны и создание гибкого экономического пространства, способного легко адаптироваться к меняющимся внешним условиям, которые могут представлять угрозу для стабильности ЕС.

В связи с этим Еврокомиссия уделяет большое внимание роли евро как мировой валюты. Констатируется, что с момента своего появления в 1999 году евро быстро превратился во вторую валюту в мире после американского доллара. На мировом заемном рынке, например, доля евро на середину 2005 г. составляла 31,5 против 44%, занимаемых долларом. Эксперты Еврокомиссии считают, что ввиду той глобальной роли, которую уже сейчас играет евро, единой европейской валюте нужно стремиться к мировому лидерству и содействовать стабильности мировой финансовой системы, особенно в период, когда последняя испытывает серьезные трудности.

Они связаны в первую очередь с диспропорциями платежного баланса США, где дефицит платежного баланса в 2006 г. составил 7,7% национального, или 1,5% мирового ВВП. США в настоящее время для покрытия собственного дефицита привлекают три четверти мирового прироста капитала. Дисбаланс также связывается с невозможностью Японии, динамично развивающихся азиатских стран, стран Ближнего Востока, экспортирующих нефть, и России самим использовать имеющийся прирост.

Подобная ситуация, по мнению экспертов Еврокомиссии, не может удерживаться долго: в скором времени возможен глобальный финансовый кризис, чреватый малопредсказуемыми последствиями. И хотя сама еврозона не создает дополнительных трудностей, она должна быть готова к возможным финансовым потрясениям в случае, если их все-таки не удастся предотвратить. Это делает задачу структурной реформы в еврозоне, которая смогла бы повысить ее адаптивность, весьма актуальной.

Алексей Тимофеев

По материалам www.rosbalt.ru (от 29.01.2007)

Unit 14. EU External Relations: an Overview

Reading

Keeping the peace

War between EU countries is now unthinkable, thanks to the unity that has been built up between them over the last 50 years. Given this success, the EU is now increasingly involved in preserving peace and creating stability in neighbouring countries.

The European Union wants to prevent conflicts. The EU is the biggest donor of financial assistance to troubled places in the world. It is active in peacekeeping and peacemaking actions, and it runs many projects that help to make human rights and democracy succeed in practical terms.

To enable its Member States to speak and act in unison on the world stage, the EU is developing its common foreign and security policy and there are plans for more co-operation on defence questions.

The sheer size of the European Union in economic, trade and financial terms makes it a world player. The EU has a web of bilateral and multilateral agreements covering most countries and regions of the globe. The biggest trader and home to the world’s second currency, the EU is also the world's largest contributor in assistance projects.

This responsibility stretches from helping to run the civil administration in Kosovo and financial support for the Palestinian Authority to implementing a €1 billion reconstruction programme for Afghanistan.

It is its vast external assistance programmes that partly define the role of the European Union as a world player. The EU and its member states provide about half of all international official development assistance (ODA). Each year, the European Commission hands out €6 billion in aid. This goes to beneficiaries in all continents, and is used not just for economic development projects but also to help build democratic institutions, carry out reconstruction work, draft macro-economic programmes and promote human rights.

To expand and deepen relations with other countries and regions, the EU holds regular summit meetings with its main partners like the United States, Japan, Canada and, more recently, Russia, India and China, as well as regional dialogues with countries in the Mediterranean, the Middle East, Asia and Latin America. Although these relationships focused mainly on trade issues at the beginning, they have expanded over the years to cover investment, economic cooperation, finance, energy, science and technology and environmental protection, as well as political matters such as the global war on terror, international crime and drug trafficking, and human rights.

Relations with the United States

Despite its periodic tensions, the transatlantic relationship is at the heart of the EU’s external relations. The flow of trade between the EU and the United States is running at nearly €1 billion a day. The US has been a strong supporter of European integration since the outset. Both share common values and, in many instances, common interests. Besides six-monthly summit meetings, intensive contacts take place all the time and at all levels: business dialogues, and dialogues between consumers, trade unionists and environmentalists, as well as frequent meetings involving officials, ministers, and members of the European Parliament and the US Congress. The way the EU and the US have handled joint issues involving competition law or the recognition of each other’s technical standards has served as a model for the Union’s relationships with other countries.

Russia, Eastern Europe & Central Asia

Although not candidates to join the European Union, Russia and the republics of the Caucasus and Central Asia, are building special relationships with the EU. These are based on a series of partnership and cooperation agreements, covering trade, cooperation in science, energy, transport, the environment and other sectors, as well as a political dialogue and joint action to combat crime, drugs and money laundering. EU technical assistance to these countries is delivered by the Tacis programme, launched in 1991.

The Balkans

In the 15 years from 1991 to 2006, the EU provided €10 billion of assistance to the countries of former Yugoslavia and Albania. Besides the military commitment of EU member states in Bosnia-Herzegovina, Kosovo and the Former Yugoslav Republic of Macedonia, EU policy is focused on a series of stabilisation and association agreements as the beginning of a process that will one day bring these countries to a position where they will be ready for EU membership.

The Mediterranean and the Middle East

The aim here is to create a Euro-Mediterranean free-trade area by 2010. This would include the Arab states around the southern and eastern Mediterranean and Israel. Individual association agreements between the EU and each partner are one element in the relationship. Financial support in grants and loans worth about €2 billion a year is a second strand.

Contributing to efforts to establish a comprehensive peace agreement in the Middle East is a long-standing EU goal. It has appointed a special envoy to the region and cooperates closely with the United States and Russia to seek a lasting political settlement. In the meantime, the EU funds

infrastructure and administrative support for the Palestinians and contributes €100 million a year to the UN agency caring for Palestinian refugees.

Common Foreign and Security Policy

The idea that the European Union should speak with one voice in world affairs is as old as the European integration process itself. But the Union has made less progress in forging a common foreign and security policy over the years than in creating a single market and a single currency.

Historically, the first step was an ambitious attempt in 1954 to create a European Defence Community, which failed at the last minute. This was followed in 1970 by a process called European Political Cooperation, whereby EU member countries tried to coordinate their positions on foreign policy issues of the day. Under this process, EU countries produced joint statements (but no action) condemning acts of aggression and terror around the world, or supporting United Nations or other peace initiatives. But on particularly sensitive issues, or where individual EU countries had special interests, no single voice could be found because decisions had to be adopted unanimously.

One of the problems is to agree how much authority for vital issues of foreign policy and security should be vested in the EU and its institutions and how much should be retained by member states. In the end, essential authority remains with the member states, although the European Commission and, to a lesser extent, the European Parliament, are associated with the process. However, the formula agreed still requires that key decisions be taken by unanimous vote.

More decisive diplomacy

To give its foreign policy diplomatic clout and visibility, the Union has created the post of High Representative for Foreign and Security Policy and provided him with a far-reaching support structure, including a policy unit to provide assessments and early warnings on crisis situations, a political and security committee and a military committee. The new constitutional treaty adopted by EU leaders in June 2004 raises the EU’s diplomatic profile considerably by creating the post of EU foreign minister.

As part of the CFSP, the Union also created a European Security and Defence Policy (ESDP) with the potential for creating a common defence structure. In December 2003, EU leaders adopted a European Security Strategy and have since agreed on its basic mission and priority areas for action: the fight against terror; a Middle East strategy; a comprehensive policy on BosniaHerzegovina.

To give it a credible intervention capability, the EU identified a number of tasks a military force could undertake (the so-called Petersberg tasks), including humanitarian and rescue missions, peacekeeping, crisis management and even peacemaking. To implement the Petersberg tasks, the Union created a rapid reaction force, whose military strength will be built up gradually over several years.

It also agreed to provide up to 5 000 police officers for civilian aspects of crisis management of whom 1 000 could be deployed within 30 days.

(From http://www.deltwn.ec.europa.eu)

Comprehension Check

1.What are the main goals of the EU external policy?

2.Describe the relations between the EU and US, EU and Eastern Europe, EU and the Balkans, EU and Middle East.

3.What is the common foreign and security policy like? Why is it not much effective?

4.What steps are taken to make EU diplomacy more powerful and visible?

Describing Diagrams

Remember what you have read about internal and external policies of the EU and explain the ‘three-pillar’ diagram given below.

Vocabulary Activities

1. Find in the text the equivalents for the following words and phrases.

Now make some sentences of your own with the words and phrases from above.

2. Decode the abbreviations.

ODA CFSP ESDP

3. Translate.

Известно, что такого понятия, как "внешняя политика Евросоюза", на самом деле не существует: каждая страна-член Сообщества играет на международной арене собственную, более или менее самостоятельную партию. Невзирая на то, что множество общеевропейских договоров предусматривают единую внешнеполитическую линию для всех 27 государств, входящих в ЕС, несмотря на пост министра иностранных дел Сообщества, эта сторона европейской жизни больше всего напоминает басню Крылова "Лебедь, Рак и Щука". Более того, на внешнеполитической арене страны Евросоюза нередко оказываются идейными противниками.

За примерами далеко ходить не приходится: разразившийся американо-иракский конфликт провел между странами ЕС черту. По одну ее сторону оказались сторонники США - в первую очередь Великобритания, Италия, Польша; по другую же - не менее воинственно настроенные противники "иракской авантюры": Германия и Франция. В этой "тихой войне" были свои победители и побежденные, а также свои "перебежчики" - Испания, со сменой

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правительства с социалистического на консервативное поспешно выведшая свои войска из Ирака. Нет и не было в ней лишь одного - мира. По-прежнему Джордж Буш демонстративно обходит молчанием вопрос, когда же он, наконец, назначит срок уже изрядно запоздавшего визита в ФРГ, и по-прежнему задиристый французский президент Жак Ширак не упускает случая подлить масла в огонь, при любой удобной возможности стараясь утвердить себя и свою страну в качестве некоего европейского противовеса Америке.

Последний, впрочем, не делает ничего нового: давно известно, что когда французы говорят "Европа", они имеют в виду "Франция". Еще со времен демонстративного выхода этой страны из НАТО (вернулась Франция в этот блок лишь сравнительно недавно) стало очевидно, что гордые галлы стремятся прежде всего к абсолютному политическому доминированию в любой европейской или частично европейской структуре. С одной стороны, у Франции есть что бросить на весы европейской политики: это страна с мощнейшей экономикой, старыми, устоявшимися политическими связями и интересами. Кроме того, единственные в ЕС, французы обладают ядерным оружием. С другой стороны, до статуса сверхдержавы Франция дотягивает только в одном - в амбициях.

http://www.kackad.com/article.asp?article=743

Task

Group A prepare a talk / presentation on relations between the EU and African countries. Group B prepare a talk / presentation on relations between the EU and the USA. Group C prepare a talk / presentation on relations between the EU and Asian countries.

Unit 15. EU external programmes: TACIS, PHARE

Reading

Overview

Launched by the EC in 1991, the Tacis Programme (Technical Aid to the Commonwealth of Independent States) provides grant-financed technical assistance to 12 countries of Eastern Europe and Central Asia (Armenia, Azerbaijan, Belarus,

Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan), and mainly aims at enhancing the transition process in these countries. (Mongolia was also covered by the Tacis programme from 1991 to 2003, but is now covered by the ALA programme.)

Historical background

When Tacis was initiated, technical assistance was a stand-alone activity, whereas the programme is now part of a complex and evolving relationship with each of the 12 countries concerned. Politicians and officials from the partner countries and the EU meet now on a regular basis. With the implementation of Partnership and Cooperation Agreements (PCA), Tacis also becomes a more strategic instrument in the co-operation process between EU and partner countries.

Tacis expired at the end of 2006, and at the moment the Commission services are currently in the process of devising proposals for a new Tacis concept and regulation (European Neighbourhood and Partnership Instrument for the years 2007-2013).

Tacis Activities

Tacis activities on fewer areas of cooperation:

·support for institutional, legal and administrative reform;

·support to the private sector and assistance for economic development;

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·spport in addressing the social consequences of transition;

·development of infrastructure networks;

·promotion of environmental protection and management of natural resources;

·development of the rural economy;

·support for nuclear safety.

The areas where Tacis funding is used are designed to complement each other, and each national or multi-country programme focuses on no more than three of the above mentioned fields (plus nuclear safety, where appropriate), so that each can be most effective.

Programmes

The Tacis regional programme addresses in particular areas such as the environment, trade and transport, and Justice and Home Affairs-related issues where cooperation among the countries of the region is most important. The Tacis cross-border programme promotes co-operation and the development of links between neighbouring communities in different countries. Tacis nuclear safety activities are also covered in a single, regional programming document, taking account of the technically very complex issues arising in that context. Each of these regional programmes has its own strategy paper, indicative and action programme.

The Phare programme (Poland and Hungary: Assistance for Restructuring their Economies) was one of the three pre-accession instruments financed by the EU to assist the applicant countries of Central and Eastern

Europe in their preparations for joining the EU.

Originally created in 1989 to assist Poland and Hungary, the PHARE programme covered 10 countries: the 8 Member States joined in 2004: the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia, as well as Bulgaria and Romania, assisting them in a period of massive economic restructuring and political change. Until 2000 the countries of the Western Balkans (Albania, Bosnia-Herzegovina and the former Yugoslav Republic of Macedonia) were also beneficiaries of Phare. However, as of 2001 the CARDS programme (Community Assistance for Reconstruction, Development and Stability in the Balkans) has provided financial assistance to these countries.

Following the 1993 Copenhagen Council’s invitation to Central and Eastern European countries to apply for membership, Phare support was reoriented to this aim, including a marked expansion of support for infrastructure investment. Phare’s total ‘pre-accession’ focus was put in place in 1997, in response to the Luxembourg Council’s launching of the present enlargement process. Phare funds focus entirely on the pre-accession priorities highlighted in the Road Maps and the Accession Partnerships which establish the overall priorities the country must address to prepare for accession and the resources available to help them do so. The National Programme for the Adoption of the Acquis is the candidate country’s timetable for preparing for accession. It estimates the timing and cost of the steps needed to prepare the country for membership and the implications for staff and financial resources.

Phare’s objectives are:

Strengthening public administrations and institutions to function effectively inside the EU. Promoting convergence with the EU’s extensive legislation (the acquis communautaire) and

reduce the need for transition periods. Promoting Economic and Social Cohesion.

These orientations were further refined in 1999 with the creation of SAPARD and ISPA, which took over rural and agricultural development (SAPARD) and infrastructural projects in the environmental and transport fields (ISPA) allowing Phare to focus on its key priorities that were not covered by these fields.

Given that the 10 countries which previously were eligible for the Phare programme, are new Member States of the EU since May 2004 (Romania and Bulgaria since January 2007), substantial

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changes were made to the scope of the Phare programme. 2003 was the final programming year for the new Member States, but contracting of projects continued till the end of 2006.

Comprehension Check

1.When and why was TACIS launched?

2.What countries are covered by TACIS?

3.What assistance does TACIS provide?

4.What are the major TACIS programmes?

5.When and why was PHARE launched?

6.What was the main focus of PHARE?

7.What were the objectives of PHARE?

Vocabulary Activities

1. Find in the text equivalents for the following words and phrases and make up some sentences with them:

2. Translate

Программа сотрудничества ЕС-Россия/ТАСИС

Программа сотрудничества ЕС и России призвана помочь Российской Федерации в проведении основных экономических и социальных преобразований. В основу этого сотрудничества было положено сочетание опыта ЕС в сфере рыночной экономики и демократии с российской спецификой и знаниями. Эксперты стран ЕС совместно с российскими коллегами реализуют проекты по разработке правовой и нормативной базы, разрабатывают рекомендации по реформированию государственных институтов и организаций. Проекты ЕС способствуют созданию партнерских отношений и объединений в местных сообществах для оказания содействия в переходном периоде. В рамках программы эксперты ЕС предоставляют рекомендации и консультации в различных областях, проводят исследования и образовательные программы для российских предпринимателей.

ТАСИС уделяет большое внимание поддержке реформ государственных институтов, правовой и административной сферы, помощи частному сектору в области экономического развития, минимизации социальных последствий переходного периода, а также вопросам обеспечения ядерной безопасности.

Стратегическое партнерство ЕС и России в настоящее время развивается в рамках четырех общих пространств: экономика; свобода, безопасность и правосудие; внешняя безопасность; а также образование, наука и культура. В мае 2005 года на саммите ЕС-Россия были утверждены "дорожные карты" четырех общих пространств, в которых изложена концепция сотрудничества ЕС и России и план совместных действий по достижению поставленных целей.

Программа сотрудничества ЕС и России уникальна. Во-первых, все предпринимаемые действия – это результат непрерывного диалога между Россией и ЕС, что способствует развитию партнерских отношений и выполнению взаимных обязательств. Во-вторых, ЕС объединяет опыт и знания 25 государств-членов, что делает разработанные им программы намного более совершенными и жизнеспособными по сравнению с теми, в реализации которых участвует всего одно государство. Наконец, в-третьих, программа проводится в

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тесном взаимодействии с правительственными органами, что усиливает значение и исполнение всех обязательств обеих сторон. Вся техническая помощь российским партнерам программы оказывается в форме грантов, а не кредитов.

Task

Group A prepare a presentation on EU cooperation with Asia and Latin America (ALA programme.)

Group B prepare a presentation on EU cooperation with the Mediterranean countries (MEDA programme.)

Group C prepare a presentation on the European Agency for Reconstruction (EAR) responsible for cooperation of the EU with the Republic of Serbia, the Republic of Montenegro and the Republic of Macedonia.

Group D prepare a presentation on the EU programme CARDS (Community Assistance for Reconstruction, Development and Stabilisation) dealing with the Western Balkans.

Group E prepare a presentation on the EU programme OBNOVA that was targeted at cooperation with Bosnia & Herzegovina and Croatia.

Unit 16. Partnership and Cooperation Agreements (PCA)

Reading

At the end of the 1990s, the European Union concluded nine similar partnership and cooperation agreements (PCAs) with the nine new independent states (NIS): the Republic of Armenia, the Republic of Azerbaijan, Georgia, the Republic of Kazakhstan, the Kyrgyz Republic, the Republic of Moldova, the Russian Federation, Ukraine and the Republic of Uzbekistan. The Cooperation Council was set up to ensure the implementation of the agreements.

The aims of these partnerships are to provide a suitable framework for political dialogue, support the efforts made by the countries to strengthen their democracies and develop their economies, accompany their transition to a market economy and encourage trade and investment. The PCAs also aim to provide a basis for cooperation in the legislative, economic, social, financial, scientific, civil, technological and cultural fields. The PCA with Russia also provides for the creation of the necessary conditions for the future establishment of a free trade area.

With regard to trade in goods, the EU and the nine countries referred to accord to one another Most Favoured Nation (MFN) treatment once the countries become parties to the General Agreement on Tariffs and Trade (GATT) and the World Trade Organisation (WTO). They also set up free transit of goods via or through their territory. For goods admitted temporarily, each party grants the other party exemption from import duties and taxes. Quantitative restrictions on imports may no longer apply between the parties and goods must be traded at the market price. In the event of injury or threat of injury caused by imports, the Cooperation Council must seek a solution acceptable to both parties. These PCA provisions do not apply to certain textile products and nuclear material. However, they do apply to coal and steel.

The conditions concerning employment, the setting-up of a business and the activities/operation of companies, the cross-border supply of services, current payments and capital are to be found in the provisions on trade and investment. As regards employment, the parties undertake to prevent discrimination against nationals from one of the parties who are lawfully employed in another. The PCA with Russia sets out initiatives to coordinate social security.

The parties undertake to take the necessary measures to progressively authorise the crossborder supply of services. With regard to international maritime transport, the parties must apply effectively the principle of unrestricted access to the market and trade on a commercial basis.

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With regard to current payments and capital, the parties undertake to authorise all current payments between themselves which are connected to the movement of goods, services or persons. The free movement of capital must also be guaranteed for direct investment and the liquidation or repatriation of these investments and of any profit stemming therefrom.

All the PCAs except that with the Republic of Moldova also contain a chapter on the protection of intellectual, industrial and commercial property and on legislative cooperation.

As regards economic cooperation, most PCAs cover similar fields, focusing on social and economic development, the development of human resources, support to businesses (in particular privatisation, investment and development of financial services), agriculture and the food sector, energy, transport, tourism, environmental protection, regional cooperation and monetary policy. In essence, economic cooperation is aimed at contributing to the economic reform and rehabilitation process and to sustainable development in the NIS. The PCAs encourage social and economic reforms and the restructuring of economic and trading systems. Each PCA contains a list of specific initiatives concerning some of the above fields, and other areas such as trade in goods and services, industrial cooperation, construction, investment promotion and protection, public procurement, the mining sector and raw materials, cooperation in science and technology, education and training, postal services and telecommunications, financial services, company restructuring and privatisation, regional development, social cooperation, tourism, small and medium-sized enterprises, information and communication, consumer protection, customs, statistical cooperation and economics.

Other cooperation areas listed in the PCAs are:

-cooperation in the areas of democracy and human rights (only for Armenia, Azerbaijan, Georgia and Uzbekistan);

-cooperation on the prevention of illegal activities and the prevention and control of illegal immigration, with initiatives on money laundering, the fight against drugs and illegal immigration (except for Kazakhstan, the Kyrgyz Republic, Ukraine and Moldova);

-cultural cooperation;

-financial cooperation in the field of technical assistance.

The PCAs are concluded for an initial period of ten years but are automatically renewed on a yearly basis unless one of the parties objects.

Comprehension Check

1.When and why were the PCAs concluded?

2.What countries signed PCAs with EU?

3.What are the aims of the PCAs?

4.What body controls the implementation of the PCAs?

5.What are the cooperation areas between the EU and NIS?

6.What do the PCAs say about the issue of trade and investment?

7.What do the PCAs say about economic coorepation?

Vocabulary Activities

1. Find in the text the equivalents for the following:

2. Match two parts to make collocations.

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