Study Guide for Final Exam
Study Guide for Final Exam 403-2B
Popular in International Relations Seminar
Popular in Public Relations
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This 13 page Study Guide was uploaded by Dora Notetaker on Friday December 4, 2015. The Study Guide belongs to 403-2B at University of Alabama at Birmingham taught by Nikolaos Zahariadis in Summer 2015. Since its upload, it has received 113 views. For similar materials see International Relations Seminar in Public Relations at University of Alabama at Birmingham.
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Date Created: 12/04/15
PSC 403 Seminar in International Studies Dr Zahariadis Final Study Guide The Eurobean Parliament Formation of the European Parliament 0 After creating the Council the EU European Communities at the time needed more legitimacy so it came up with an assembly which will be elected by voters 0 Because Council does not directly appeal to voters they needed more legitimacy They came up with 3 assemblies communities 0 ESCS ECC amp Euratom 1960 s They combined them 0 Created a single assembly European Parliament 0 It meets in Strasbourg 0 Since 1979 members of the European Parliament MEP s have been directly elected by voters European Parliament districts are different from national districts 0 Because bigger countries had bigger districts than smaller countries for national elections 0 So they decided to standardize them MEP s Members of the European Parliament 0 751 total MEP s o Districts changed in the EU as enlargement happened 0 Number of MEP s are based on population so larger countries will have more MEP s MEP s represent their own parties in the EP 0 They tend to congregate based on their political parties 0 These are called federations of parties The EP meets 12 timesyear in Strasbourg 0 And sometimes in Brussels There is a lot of corruption in the EP 0 Because they require so much money just to do theirjobs National governments have more power than the EP 0 MEP s are sent to Strasbourg as reward for their loyalty to the party to enjoy the things that come with being an MEP European Parliament 0 It is the only democratically elected institution in the EU Elections of the EP 0 They are held on a national basis 0 All of the issues discussedcampaigned on in the EP elections are national in nature 0 EP elections tend to forecast people s confidence in their national government o The higher the turnover in the EP the less powerful the EP is because the more disillusioned people are o If people are less disillusioned more satisfied they ll keep electing the same people so there will be less turnover Problem Most people don t know who their MEP s are 0 But MEP s will often get money for their districts bringing home the bacon which makes the EU a milkable source of money Powers of the EP 1 CoDecision a They make decisions together with the Council of the EU b It is a process called Ordinary Legislation Process 2 Approval of the Budget 3 Approval of the Commission a It s a form of checks and balances b They have hearings like the Senate c But they have to vote on the Commissioners as a whole In Europe they try to create checks amp balances but also give each institution power 0 But they don t have treaties that outline these 0 No constitution but treaties 0 New treaties update past treaties 0 So the functions of the institutions get updated from time to time 0 Current treaties that deal with the functioning of the EU 0 These treaties are called intergovernmental treaties o EP s power over the budget 0 They can only approve the budget 0 EP does not propose budget Budget o It comes out of 2 sources 1 VAT taxes valueadded tax 2 Plus they get a portion of each member39s budget 0 They create a budget for 7 years in advance 0 This creates stability but it is inflexible 0 And because govts negotiate budget they always underfund the EU Governments can want their money back 0 So the EU is an extension of each country s foreign policy 0 And in the EU there are relatively few taxes on trade so each industry benefits significantly but voters can t see this 0 So politicians in governments can blame the EU for everything they can shift blame to get votes Where does the EP fit in here o It pressures governments for money 0 Because MEP s want to get reelected 0 So they keep trying to increase the budget 0 But the EP can t partially approve the budget Structure of the EP 0 Confederal parties 0 These are umbrella organizations of parties that are similar 0 Ex the EPP is a organization of Christian Democratic parties in Europe 0 So this led to the creation of the antiChristian parties the Social Democrats 0 this can result in a right slanting national government and a left slanting EP I And this means the EP will be pushing the Council a different way than the national govt wants it to Parliaments how do they work in general 0 Power rests in committees where most of the work is done 0 But voters only see the big picture not committee work 0 Big speeches are delivered to voters not to parliament they are often not even there 2 types of committees 1 Ad hoc Standing committees a Temporary They revolve around a specific issue 2 Permanent committees In US 0 There are subcommittees 0 Committee chairs can kill bills In Europe Differs from US in 2 ways 0 1 Committee chairs are appointed by the governing party according to the portion of seats a party has in parliament o 2 If a committee votes down a bill they don t die 0 They can be revived in plenary session amp be put to a vote Policv Areas in the EU The CFSP 0 Common Foreign Security Policy 0 Over time members wanted to coordinate foreign policy to help trade Community Method o It is a process in a policy area that involves relative consensus within the process 0 So they wanted to coordinate and make bargains with other national governments but not involve the EU institutions in the process 0 came up with Intergovernmental Pillars Intergovernmental Pillars 0 These were used to hammer out deal among national governments o The first was this common method within the European Community precursor to the EU 0 Second was the CSFP 0 Third was the JHA Justice and Home Affairs History of the CFSP CFSP o Started with the EPC political cooperation 0 Some countries that were not interested in integrating foreign policy GB Maastricht Treaty 0 It said we need to go beyond economics 0 And this meant foreign policy cooperation 0 So they changed the name from European Communities to European Union Yugoslavia 0 They also needed carrots and sticks o Carrots Trade aid packages 0 Sticks Needed the enforcement to implement theirthreats So CFSP was a failure Treaty of Maastricht 0 Created High Representative of the CFSP c To become the face of the EU that could bring people together 0 Can he go above foreign ministers Yes in theory but not in practice 0 Have they solved the teeth of the organization do they have power yet No didn t solved this So we have Yugoslavia 2 in 19981999 0 Albanians in Serbia wanted independence 0 Serbs started bombing them CFSP needed to take a position 0 Issued ultimatum against Serb military 0 But Europeans still lacked the punch no capacity to follow through the threat Eurocorps 0 Based on an idea of integrating militaries under European command 0 They already had a force NATO but how do you coordinate your troops with them 0 Because US military finances amp runs NATO and they took care of Yugoslavian war 0 Still have Eurocorps but the idea never came to realization 0 Since CFSP was a failure they came up with the ESDP ESDP European Security Defense Policy 0 They understood that you have to have 0 Integrated command at a geographic level 0 Resources at a collective level 0 Command and control Lessons 1 Responses need to be My in institutional development but also in terms of resources War on Terror happened in the 2000 s and the ESDP couldn t address it 0 Terrorism cannot be dealt with by the military 0 What you need with terrorism intelligence 0 But there is a bias against investing in human intelligence 0 People may quit or die but technology has an immediate return on investment 0 And by investing in technology you are going to get money and support votes During the European Coal and Steel Community they proposed a European Defense Community in 1954 0 They wanted to create integrate militaries Instead they created the WEU Western European Union 1950 s 0 Security organization designed to be the European response to NATO without the military o It was a political meeting of defense ministers 0 Problems 0 Why are we spending money to create NATO that we already have 0 What will the Americans say 0 And they ran into an opponent a Eurosceptic Britain 1991 End of the Cold War 0 Wanted to merge the WEU with the CFSP Objectives of CFSP 1 Safeguard common European values 2 Strengthen European security 3 Reserve peace 4 Promote international cooperation 5 Develop consolidate democracy Why was NATO effective not like the CFSP o NATO had specific objectives it was a defense alliance created to repel a Soviet invasion of Europe Accomplished CFSP they can t agree on who is the enemy 0 And nobody could agree on who s going to lead it CFSP they didn t want to pay for it Effectiveness of the CFSP 0 Recent conflict Ukraine crisis 0 Was Europe going to fight the Russians No 0 EU countries get natural gas and oil from Russia some depend on it almost 100 0 Only 2 producers of natural gas Russia and Iran 0 Iran was out of the question because Iran is the US s biggest enemy EMU Economic and Monetary Union o It was the next stage from the customs union toward a political union 19705 0 Werner Report report from a committee that discussed the possibility of a single currency 0 But was forgotten because of the energy crisis of the 1970 s Problems caused by the energy crisis 1 Differential impact a Countries had different solutions to it which separated them 1 Covarying economies b You have to understand the value of money to understand covarying economies Money 0 The value of money is determined by currency fluctuations and internal inflation Currency fluctuations Historic explanations c There is no intrinsic value in money because it is no longer matched to gold 0 The US had the Bretton Woods system after WWII to stabilize the world economy o It said that the US dollar will be backed up by the gold in the US Federal Reserve Why do we want stable currencies 0 Because it allows you to plan ahead and it boosts the economy Downside of the Bretton Woods system o It took a huge amount of faith in the US dollar 1960 s US was running out of gold 0 Bretton Woods system destroyed when Nixon announced that US will no longer fulfill its obligation of gold for dollars Fluctuating exchange rates 0 Money no longer depends on gold but on how much people are willing to pay for it 0 So we created a system for buying and selling currencies 0 However when you re doing this in billions of currency it creates instability EMU continued o It is the highest stage of integration Europe has achieved 0 But it took away the only lever they had to stimulate the economy interest rates Interest rates 0 When you increase interest rates people borrow less and you cause a small contraption c When you decrease interest rates people borrow more and invest more start businesses which helps boost the economy Criteria in the Maastricht Treaty for allowing countries to join the EMU 1 Low inflation a Less than 2 2 Fix exchange rates for a year a It was linked to the ECU European Currency Unit with ERM Exchange Rate Mechanism through the EMS Exchange Monetary system b ECU was designed in 1970 s to stabilize currencies It was based on the IMF which was based on the SDR Special Drawing Right c SDR was something called fiat money imaginary counting money used by accountants that involves a basket of currencies that are allowed to fluctuate over time to help the IMF These were credits given to countries to fix their economies d The same thing happened with the ECU imaginary money But this created a common ground on which to base a common currency e So countries matched their currency to the ECU and allowed the ECU to fluctuate instead of the currency it pooled the risk and reduced fluctuation now that there were many currencies involved f Countries that had more stable currencies allowed less fluctuation countries with unstable currencies allowed more fluctuations 3 Run annual budget de cits of less than 3 and a public debt of 60 or less 0 Public debt has to be less than 60 of the country s income economic output If countries met these 3 criteria they could join the EMU o The launch of the single currency was 1999 that s when the Euro was decided 0 And this meant decisions had to be made in 1998 0 And that meant you had to use 1997 numbers for budgets and such 0 The Maastricht Treaty went into effect in 1993 which meant that countries had 4 years to put their public finances in order 0 But they were not in order so they cheated and messed with the numbers 0 So revised their criteria and said as long as you have 3 deficit and if you are heading toward 60 public debt you can join 1995 Stability and Growth Act 0 This replicated the criteria but they said they ll keep the 3 and 60 but they ll get to those numbers mjoining the EMU 1997 Most EU members met the criteria o By messing with their numbers 0 Greece did not meet the criteria 0 UK Denmark Sweden met the criteria but did not want to join the EMU and adopt the Euro They had a common monetary policy but not a common fiscal policy 0 Monetary policy It refers to the amount of money in a given economy it affects inflation 0 Fiscal policy It refers to the government s budget its revenues taxes and expenditures 0 Fiscal policy was important in controlling economic growth until the 1970 s 0 Keynesian economics generate surpluses in times of economic boosts so you can have money for times of economic recessions 0 So the EU maintained a common monetary policy but allowed governments to keep their fiscal policy 0 Countries interest rates were synched which meant that countries could all borrow at the same rates Why would European countries want to adopt the Euro 0 Link economies together They also wanted to create a more transparent system with prices and costs They wanted to be part of the EU primarily for cultural and political reasons Smaller countries wanted to be members of a club with rich countries Many countries have used lower prices to be competitive othenNise they price themselves out of the market 0 So for weaker cheaper countries it was imperative that they restructure their economies before entering the Eurozone in order to face pressures of devaluation of currency 0 But they didn t do this because these countries entered because of political and cultural aspects and not economic reasons 0 They ended up lowering labor costs in order to save money Jan 1 1999 the Euro becomes operational o The time between the European Currency Unit and the Euro countries had 2 prices as a transition period for them to get used to it 0 Next step the new physical currency was introduced 0 But since the new amounts for prices were a lot smaller than the old prices people didn t know how much the value was so storekeepers kept rounding prices upward o This led to rise in prices The monetary system was fashioned after the German Central Bank 0 Because the Ger central bank s main goal was to curb inflation at all costs 0 But this led to problems in the EU 0 The rule that says budget deficits have to be less than 3 2005 Germany was running sustained high budget deficits 0 New rules As long as you are headed toward 60 public debt and 3 budget deficits and as long as the government presents a credible plan on how to change it you re good to stay 2008 The real estate bubble burst 0 US toxic assets made their way to Europe 0 Banks sold their low interest rates to others to make a good investment but at the end of the line there is no market for that o The first banks that went bankrupt were in Europe why 0 They had bought these toxic assets 1st problem Ireland 0 Ireland started putting money into failed banks 0 But if everyone starts to pump money into their banking system what does that say to potential investors Eurobond o A government bond 0 The different kinds of Eurobonds are called sovereign bonds o It is a way for governments to finance their deficits 0 They carry a particular interest rate and the moment the interest rates start going up it signals trouble Greece in trouble 0 2009 New elections and a new government in Greece 0 They blamed the last government about the financial problems 0 The previous annual budget deficit of 6 but the new governments said it was actually more like 136 I Investors took their money out o Austerity measures were imposed in Greece 0 There was no mechanism of bailing out other countries Germany came in to save Greece 0 But this was a bad political move because German voters were not going to like this 0 Remember EMU rules say members don t need to take on debt of other members 0 Moral hazard the dilemma that Merkel faced I If you bail the Greeks out you re encouraging the behavior that led Greece to trouble if you don t bail them out you re creating big problems for the Eurozone the investors would think that if you let the Greeks go o What did she do Nothing I Investors forced her hand Greek bailout May 2010 110 billion Euros 0 But the political will was not there 0 And austerity means you re artificially creating a recession 2012 2nd bailout 130 billion Euros o Greece s problem their public sector was going bankrupt while the banking sector was OK because it had not bought toxic assets 0 But they started going under because they had investments in their own Greek government So the bailout had a requirement 0 Germans said Greece had to get a haircut 0 They had to differentiate between junior and senior investors 0 Junior investors had to take a 53 loss Who came next Ireland Portugal and Cyprus declared bankruptcy o Austerity was imposed on all of them to get finances back up 2012 Fiscal Pact on the entire Eurozone Official EU policy now 0 Countries propose the budget send it to the Commission they decide what they want you to change 0 It has promoted fiscal integration but there is no accountability 0 But now national politicians are accountable not to the voters but to Brussels The system is now far more interlinked 0 Voters may want them to spend but Brussels is telling them to raise taxes Greater integration has led to the ESM European Stability Mechanism 0 A bailout mechanism Ireland Portugal Cyprus were all able to repay their loans and bailouts But Greece needed a 3rd bailout 0 Greece had a public debt of 125 of GDP 3 bailouts and a recession later Greece has a worse 177 debt of GDP Problem 1 are we pouring money down the drain Problem 2 how to fix this Accountability and Legitimacy of the EMU o The refugee crisis has raised the issue of accountability and legitimacy 2 ways to understand democracy and accountability in general notjust EU 1 Accountability by process a Elections we equate elections with accountability i But even if elections are open and competitive you still have issues of accountability because elections are held only every 4 or 5 years b Participation i Politicians have to make people feel like they39re part of the process ii Politicians have to go to people and campaign 2 Accountability by result a You hold people accountable as long as they have produced desirable results b But problem voters can only know that politicians produce desirable results if they pay attention and we tend to tune out we only intervene when something really bad happens Popular discontent of the EMU o The EMU has produced significant austerity 0 Because the EMU externally imposes things on members The EMU fails at accountability o It does not allow accountability by process no elections 0 It does not allow accountability by results can t intervene This tends to encourage questions of efficacy 0 People tend to think my vote doesn t count 0 This encourages autocratic systems not democracy This is happening in Europe people are not getting involved 0 So a significant amount of votes are going to radical right wing parties Agriculture History of agricultural policy in the EU 1960 s DeGaulle was upset that the EU was not doing more to promote France s national interests 0 He boycotted meetings until he got what he wanted 0 Empty chair policy French representative would not take part in the meetings 0 He wanted to creation of the Common Agricultural Policy Common Agricultural Policy CAP o It is a policy of farmers that helps on a European level produce more and better quality 0 And to do that we are going to subsidize farmers 0 Countries had decided long ago to produce their own food because in times of war you don t want to rely on others to sustain yourself What is subsidized farming o The government will guarantee a certain price for production 0 So if the price of the commodity goes down if the market is flooded with it the government will step in 0 Another way to subsidize Production quotas o Govt will guarantee price as long as yield falls between a certain minimum and maximum amount 0 So essentially the govt will pay farmers to not grow certain things 0 Creates incentives for farmers to overproduce and they will still get the same money 0 But if there is a flood in the market the govt has to buy it and store it somewhere 1980 s Needed to reform of the system c The CAP became a way to subsidize farmers to pay them so they ll have an income and not about whathow much they produce Social cohesionl regional development funds 0 Agriculture started getting social components o If you lived in rural area you were by definition considered a farmer 0 But this meant that the EU was not producing as much and it was still spending a lot on farmers 0 Now the CAP has gone below 50 How agriculture policy is made in the EU 1 CoRePer a There is a special CoRePer for agriculture 2 Council of the EU a There is a council for agriculture b If they don t agree on things last year s price is valid c So incentive don t change anything and the money will come d It is designed to promote stability Social policy 0 The EU is more than just EMU lt s notjust about economics and making money Positive vs Negative integration 0 Positive integration is not good integration o It means that you have to develop new laws amp new agencies in order to integrate 0 Negative good 0 You have to dismantle agencies and laws in order to integrate But neither is better But negative integration is easier to do less costly and more politically plausible o It doesn t cost you as much 0 In fact you may save money by dismantling agencies 0 Negative integration tends to look at the lowest common denominator while positive tends to aspire to the highest common denominator When it comes to social policy Let s emulate the country that gives the best social welfare Europe hasn t been able to integrate in social policy 0 Countries that have very good social policies don t want to integrate because they fear the loss of their high standards o If you want to integrate the social policies of places like Sweden amp Croatia Croatia will go up but Sweden will have to go down 0 And countries like Croatia will have to raise taxes in order to pay for welfare 0 OR use EU funds which means places like Sweden will have to pay for it eventually anyway 0 Plus What is Sweden s comparative advantage 0 Incredibly high taxes 70 of income Which they use to finance a better welfare system and a high standard of living for its workers People don t want to give up 70 of paycheck to have someone else not be homeless Neighborhood policy 0 EU decided they needed to keep good relations with countries in the periphery because they affect the EU 0 Came up with Neighborhood policy 1995 Barcelona First N Policy c Aimed to bring together countries in the North African area to establish good connection with Europe 0 Situation in Algeria Algeria was collapsing in a civil war 0 The EU remained neutral 0 France wanted a stable Algeria Neighborhood policy established 1 Wanted to normalize relations with unstable countries a To stop migrants from coming into Europe b Gave money to these countries 0 These countries liked this they were getting money 911 happened o It became a catalyst for tightening the borders 0 Countries that were getting perks for maintaining good relations with the EU stopped getting them 0 The EU put a freeze on membership after 2004 o The EU had to bring these new members up to par with the rest of the EU 2004 Ukraine s Orange Revolution o It was a tense political battle between proRussian Ukrainians and proEurope Ukrainians o Russia s foreign policy to this day is to have buffer states between them and Europe former Soviet satellite states 0 So Russia said that the Ukraine could not become part of the EU 0 All of this preluded to 2014 Ukraine Crisis So Neighborhood policy suffered 0 Could not enforce stability and maintain good relations 2011 Arab Spring o New era of EU North Africa policy 0 EU had sent money to these countries to topple the old dictatorships o ldea was that new democracies would be stable and good friends of the EU Migration policy 0 Immigration before was strictly a national issue but now it s an EU issue 0 Countries guard their borders because it is a national security matter 0 Dublin Treaties 0 Say that information could and should be shared 0 Because it affects the Schengen Agreement I It allows free movement between Schengen countries if you are an EU citizen o It was decided that in order to maintain Schengen immigrants would be registered in the country of entry into the EU 0 Terrible for countries that were on the front lines 0 So the Dublin Treaties made Germany and Sweden s problem into Spain and Italy s problem even if Germany and Sweden are migrants final destination Solutions Why did Med countries make it their problem 0 Richer countries Germany gave funding to Mediterranean countries to upgrade their border technology 0 Flows were relatively manageable But now after Arab Spring 0 Differentiate between migrants and refugees o Refugees Fleeing for their life 0 Migrants Seeking new economic opportunities 2015 Refugee Crisis 0 Points of entry have shifted from Mediterranean countries to Greece 0 People are not coming from SubSaharan Africa but from Middle East 0 They ve found a way to differentiate between refugees and migrants I Refugees coming from countries in the state of war I Who decides who is in a state of war Europe decides
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