The European Unions Regional Policy - Case Study Example

the European Union’s regional policy Created following World War II, the European Union, formerly known as the European Economic Community, is a multinational organization which stretches across the European peninsula and reportedly generates 30% of the worlds total Gross Domestic Product. As an economic powerhouse with increasing diplomatic influence and in large community, the European Union represents European integration in a variety of realms. These include the political, judicial, economic and social spheres. Furthermore the European Union has evolved tremendously following the collapse of the Soviet Union in 1991 and has undergone various stages of expansion, also known as enlargement in EU terms. This essay will discuss the various developments of European Union regional policy with an emphasis on the role of regions in European integration. By focusing on regional policy during the 1990s, this essay hopes to provide a thorough and comprehensive overview of a phenomenon which continues to this day. The two most recent members to join the European Union, Bulgaria and Romania, joined this multilateral international organization in the 21st century. While both Bulgaria and Romania represent fascinating cases to analyze with respect to European Union enlargement and multilateral integration, the focus of this analysis will be regional policy during the 1990s, thus excluding these two inductees. There are a variety of issues which were raised during the tumultuous 1990s, and this essay will provide an analysis of the key developments of European Union regional policy during this period with an emphasis on the role of regions in European integration. In order to thoroughly situate European Union regional policy, we will begin with a concise overview of the history of the European Union and begin with an introductory section on some of the key issues surrounding EU and large meant and EU growth. While the focus of this analysis will be key developments of European Union regional policy during our specified period, an introductory section to what is arguably one of the most successful attempts at regional integration on the planet is essential for this analysis. We now turn to an overview of the key issues surrounding European integration and the history of the EU (Grabbe and Hughes, 1997). History of the EU The European Union is a supranational political body and collection of states found largely on the European continent. Multilateralism has been an important goal of the European Union since its inception; democracy collective decision-making and negotiation are all inherent attributes of the modern EU. As a multilateral political organization, the European Union represents numerous nations and national interests within a supranational protocol framework. Based upon the notion of negotiation collect decision-making and democratic governance the European Union relies on collective decision-making to achieve its goals and negotiation between member states. Membership is highly sought after and members are bound together by treaties signifying their participation within the European political framework. Accordingly put positions of each member state both domestically as well as internationally can be constrained by their allegiance to overarching EU treaties (Almond et al, 2002). As mentioned above many states seek membership in the European Union, including nearly all of Europe as well as Turkey which straddles the front tier between Europe and middle Asia. The initial five countries which composed the precursor to the European Union included Belgium, France, Italy, the Netherlands, Luxembourg and West Germany, have been joined by 22 members of the EU today. From north to south and east to west, the European Union is composed of 27 nations which participate collectively in his political body. Many of the nations were formerly socialist and subscribe to the tenets of Marxist Leninism as part of the Soviet Union or the Soviet sphere components during the Cold War. Today they participate as active members of the European Union and have embraced Western concepts including capitalism, democracy and collective decision-making (Warleigh, 2004). The European Union, as well as modern-day Europe is characterized today by unifying democratic political culture. The notion of democracy originated on the shores of Europe centuries ago and the European Union today is home to democratic institutions and democratic ideals of the local governance. It is important to note that during the early half of the 20th century democracy in Europe was challenged by authoritarian local movements such as communism, which existed within the Soviet Union for nearly 90 years, as well as by fascism which remains forever tied to the policies of Adolf Hitlers not to Germany and Bonito Mussolini Italian Fascist Republic. With the victory of the free world over the forces of communism towards the end of the 20 century as well as the Allied victory during the Second World War, democratic governance and liberal democracy have been entrenched throughout much of the European peninsula. Thus, the pan-European political framework of the European Union emphasizes a democratic liberal tradition. Members of the European Union must subscribe to the democratic ideals of this organization and membership is contingent upon it (Almond et al, 2002). European Regional Integration The Treaty of Rome, established in 1957, proposed a common economic market throughout the European Economic Community and was thus significant for a variety of reasons. As an important precursor to the integration of Europe in 1990s as well as today all recent treaties such as the Treaty of Amsterdam, the Treaty of Nice, and the Lisbon Treaty of today, followed the precedent set in Rome more than 40 years ago. During our period of analysis, the Maastricht Treaty (1993) is arguably the most important document as it paved the way for the creation of the European Union as well as the Euro currency. This treaty set the stage for increased economic political, social and economic integration within the European context. Regional integration was established through the implementation of three institutional pillars: 1) the creation of European Communities; 2) a Common Foreign and Security Policy (CFSP), and lastly, 3) Police and judicial cooperation in criminal matters plus the acceptance of a single currency, named the Euro. In addition to these three pillars, the acceptance of the Euro as an official currency of a so-called “Eurozone” significantly strengthened economic bonds between member states. Following a series of negotiations in the Dutch city of Maastricht, the European Union was created and regional policy was thus devised in the aftermath of the creation of the EU (Almond et al, 2002; Wood & Quaisser, 2008). European Union Regional Policy: 1990s An important precursor to our period of analysis, the 1990s, was the implementation of a Cohesion Policy in 1988. Importantly, this reform established from the outset that one of the key principles guiding the European Union would be a focus on some of the poorest and most underdeveloped regions through intervention and a strategic series of investments which would involve both regional as well as local partners. While during the 1980s the European Union established ideas about how to integrate disparate nations within an overarching pan-European political, social, and economic framework, by the 1990s the European Union had been established and it was time to put these ideas and goals into practice (Bacht, 1998). What were the key developments of European Union regional policy during the 1990s? Understanding that regions matter and that integration requires all member states, irrespective of region, to be on the same economic footing, the European Unions policies in the 1990s sought to bring all members to the same level of development. The 1990s were significant for a variety of reasons, most importantly the fall of the Berlin Wall in 1989 lead to the fall of the Iron Curtain and the formerly socialist state of East Germany reunited with West Germany and thus joined the European Community. Understanding that the end of the Cold War was near and that the potential enlargement of the EU towards both eastern and central Europe could be in the future, the Copenhagen Criteria was established to set a common standard for integration. Thus, during the early part of the 1990s, the focus of the European Union with respect to regional policy was on potential enlargement following the collapse of the Soviet Union and the opportunities for growth in the formerly socialist spheres of Central and Eastern Europe. Following the establishment of the European Union in 1993, integration and enlargement occurred with the introduction of three new members. In 1995, Austria, Sweden, and Finland were welcomed into the European Union as newest members and regional policy emphasized the introduction of these new members from central and northern Europe (Loughlin, J. et al., 2001; Fierke, 1999). According to Jacques Delors, President of the European Commission 1985-1995 Europe sees its future as striking a balance between competition and cooperation, collectively trying to steer the destiny of the men and women who live in it. Is this easily done? No. Market forces are powerful. If we left things to their own devices, industry would be concentrated in the north and leisure pursuits in the south. But these market forces, powerful though they may seem, do not always pull in the same direction. Man’s endeavor and political aspiration is to try to develop a balanced territory (EU, 2009). Cohesion and regional policy became an important focus of European Union following its establishment in 1993, in creating the cohesion fund, as well as a new institution called the committee of regions, allowed the European Union to successfully integrate new members through economic and social incentives, and between 1994 and 1999 the European Union spent a significant sum on structural adjustment and economic cohesion between member states. Thus between this five year period approximately €168 billion were set aside for the purpose of structural adjustment and cohesion. This amounted to a whole one third of the total European budget. Following introduction of the three new members in 1995, Austria, Finland, Sweden, a financial allocation was given to each new member state to help coordinate and cohere economic systems of the various nations which now comprised the European Union (EU, 2009). Important goals behind the European Unions regional policy following its establishment as well as its early integration of Austria, Finland and Sweden focused on economic cohesion, thus ensuring that all member states have a basic standard of living as well as economic footing in a globalized world, and the convergence of economies. Thus funding was available for the poorer states to bring their economies up to par, and also with respect to increasing regional competitiveness and high levels of employment. During this period, the Iron Curtain had fallen separating East and West Germany and a tide of change was slowly sweeping through the Central and Eastern Europe. At this stage, the European Union sought to prepare itself for the capitalist and democratic reforms in Eastern and Central Europe. While the collapse of the Soviet Union and the Soviet bloc represented some challenges for the European Union it also represented a series of opportunities for EU policymakers. As an emerging opportunity, European Union regional policy focused upon eventual integration of Western Europe with these and Central Europe although it was understood that this would take some time. Accordingly, pressing initial concerns included the total dismantling of the oppressive state structures which existed during the socialist period as well as a reformation of the economies of these states. Stabilization during the 1990s focused on some of the poorer European Union countries such as Greece and Portugal who needed economic help in order to revise their economies. In 1990, the inflation rate of Greece was estimated at 20% while in Portugal it was estimated at 13%; with the aim of providing economic stability and Co. he should within the European Union, funds were set aside to help strengthen the economies of these two states. This set an important precedent for the later introduction of the former socialist countries of Eastern and Central Europe and represented uniform macro economic policymaking and at economic convergence throughout the EU. With respect to the integration which took place in the early 21st century and which welcomed the former socialist states of Central and Eastern Europe, market reforms such as the liberalization of markets as well as the privatization of public enterprises sought to improve the efficiency as well as the competitiveness of Europe the European countries. During the 1990s the structural reforms were implemented in Greece and this paved the way for their application throughout eastern and central Europe a decade later (EU, 2009; Loughlin, J. et al, 2001). Concluding Remarks The European Union is described as a confederated state and it represents pan-European interests within a supranational political authority. The European Union has successfully entrenched democratic traditions and has responded to increased challenges in a globalized world. All states of the Union participate in its decision-making processes and following its establishment in 1993, the European Union has expanded to include the former socialist countries of Central and Eastern Europe. Arguably the worlds most successful attempt at regional integration, the European Union has undertaken a variety of policy initiatives in order to integrate and expand in the wake of changing circumstances. The motto of the European Union is “unity in diversity” and collective bargaining and collective decision-making are important attributes of todays European Union. During the 1990s, the regional policy of the European Union was first put into practice and focused upon economic cohesion, political coherence, and ensuring that all members of this newly formed organization were on the same footing economically, socially, and politically. With an initial focus on structural reforms, liberalizing the economy, and ensuring that a common standard of living was available throughout the European Union, the EU began during this period to focus upon some of the poorer states of the Union such as Greece and Portugal and the recently inducted members such as Austria, Finland, and Sweden. It is important to note that this particular era of regional policy set the stage for the largest expansions more than a decade later with the ascension of the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia into the European Union in 2004. The 1990s were thus an important period in regional policy making through which regional economic policies could be tried and tested in anticipation of the integration of the formerly socialist countries of Eastern Bloc. With successes during the 1990s, the European Union was able to open its doors and offer membership to eight new members which were successfully integrated into the world’s most successful regional organization. Multilateralism, democracy and collective decision-making are at the heart of todays European Union. The regional policies of the 1990s successfully proved that integration and regional coherence are possible in a European setting (Alvarez, 2006; Preston 1997). REERENCES Almond, G.A, Dalton, R.J & Powel Jr., G.B. European Politics Today, 2nd edition. New York: Longman, 2002. Alvarez, J.E. “International Organizations: Then and Now”. The American Journal of International Law (2006, 100(2), p. 324-347. Bache, I. The Politics of European Union Regional Policy. Sheffield, Sheffield Academic Press, 1998. Fierke K.M. “Constructing Institutional Interests: EU and NATO Enlargement”, Journal of European Public Policy. (1999), p.721-742. Grabbe, H. and K. Hughes. Eastward enlargement of the EU. London: Oxford University Press, 1997. Loughlin, J. et al. Subnational Democracy in the European Union: Challenges and Opportunities. Oxford, Oxford University Press, 2001. Preston, Christopher. Enlargement and Integration in the European Union. New York: Routledge, 1997. Regional Policy. European Union. 2009. Last Accessed November 3, 2009 http://ec.europa.eu/regional_policy/policy/history/index2_en.htm Warleigh, A. European Union: The Basics. New York, Routledge, 2004. Wood, S. and Quaisser, W. The New European Union: Confronting the Challenges of Integration. Boulder: Lynne Rienner Publishers, 2008. Read More