The European Union

EU AND FUNDING EU AND FUNDING OPPORTUNITIESOPPORTUNITIES

Prepared by:Prepared by: Marios VourgosMarios Vourgos

Founding member European Institute of Founding member European Institute of SerbiaSerbia

The European Union

Introduction: The European Union:

A Half Century of Change and Progress

• Since the creation of the EU half a century ago, Europe has enjoyed the longest period of peace in its history.

• European political integration is unprecedented in history.

• EU enlargement has helped overcome the division of Europe – contributing to peace, prosperity, and stability across the continent.

• A single market and a common currency conditions for companies and consumers.

• EU has united the citizens of Europe – while preserving Europe’s diversity.

European UnionUnited in diversity

The European Union

What is the European Union?• The EU is a unique economic and political partnership between 27 European countries that together cover much of the continent.

• It was created in the aftermath of the Second World War. The first steps were to foster economic cooperation: the idea being that countries who trade with one another become economically interdependent and so more likely to avoid conflict. The result was the European Economic Community (EEC), created in 1958, and initially increasing economic cooperation between six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands. Since then, a huge single market has been created and continues to develop towards its full potential.

• What began as a purely economic union has also evolved into an organization spanning all policy areas, from development aid to environment.

• A name change from  the EEC to the European Union (the EU) in 1993 reflected this change.

• Today the EU covers over 4 million km² and has 495 million inhabitants — the world’s third largest population after China and India.

27

7

30

495million

Member States

Combined population of

EU Member States

Percent of world’spopulation

Percent of global GDP

55Percent of combinedworldwide OfficialDevelopment Assistance

The European Union

A brief history of the EU (1)

1945 – 1959: A peaceful Europe – the beginnings of cooperation

• The European Union is set up with the aim of ending the frequent and bloody wars between neighbors, which culminated in the Second World War.

• As of 1950, the European Coal and Steel Community begins to unite European countries economically and politically in order to secure lasting peace. The six founders are Belgium, France, Germany, Italy, Luxembourg and the Netherlands.

• The 1950s are dominated by a cold war between east and west. Protests in Hungary against the Communist regime are put down by Soviet tanks in 1956; while the following year, 1957, the Soviet Union takes the lead in the space race, when it launches the first man-made space satellite, Sputnik 1.

• Also in 1957, the Treaty of Rome creates the European Economic Community (EEC), or ‘Common Market’.

The European Union

A brief history of the EU (2)

1960 – 1969: The ‘Swinging Sixties’ – a period of economic growth

• The 1960s sees the emergence of 'youth culture’, with groups such as The Beatles attracting huge crowds of teenage fans wherever they appear, helping to stimulate a cultural revolution and widening the generation gap.

• This is a good period for the economy, helped by the fact that EU countries stop charging custom duties when they trade with each other.

• EU countries also agree joint control over food production, so that everybody now has enough to eat - and soon there is even surplus agricultural produce.

• May 1968 becomes famous for student riots in Paris, and many changes in society and behaviour become associated with the so-called ‘68 generation’.

The European Union

A brief history of the EU (3)

1970 – 1979: A growing Community – the first Enlargement

• Denmark, Ireland and the United Kingdom join the European Union on 1 January 1973, raising the number of member states to nine.

• The short, yet brutal, Arab-Israeli war of October 1973 result in an energy crisis and economic problems in Europe.

• The last right-wing dictatorships in Europe come to an end with the overthrow of the Salazar regime in Portugal in 1974 and the death of General Franco of Spain in 1975.

• The EU regional policy starts to transfer huge sums to create jobs and infrastructure in poorer areas.

• The European Parliament increases its influence in EU affairs and in 1979 all citizens can, for the first time, elect their members directly.

The European Union

A brief history of the EU (4)

1980 – 1989: The changing face of Europe - the fall of the Berlin Wall

• The Polish trade union, Solidarność, and its leader Lech Walesa, become household names across Europe and the world following the Gdansk shipyard strikes in the summer of 1980.

• In 1981, Greece becomes the 10th member of the EU and Spain and Portugal follow five years later.

• In 1986 the Single European Act is signed. This is a treaty which provides the basis for a vast six-year programme aimed at sorting out the problems with the free-flow of trade across EU borders and thus creates the ‘Single Market’.

• There is major political upheaval when, on 9 November 1989, the Berlin Wall is pulled down and the border between East and West Germany is opened for the first time in 28 years. This leads to the reunification of Germany when both East and West Germany are united in October 1990.

The European Union

A brief history of the EU (5)

1990 – 1999: A Europe without frontiers

• With the collapse of communism across central and eastern Europe, Europeans become closer neighbors. As a result, in 1993 the Single Market is completed with the 'four freedoms' of: movement of goods, services, people and money.

• The 1990s is also the decade of two treaties, the ‘Maastricht’ Treaty on European Union in 1993 and the Treaty of Amsterdam in 1999, laying down plans to reform EU institutions, to give Europe a stronger voice in the world, and to concentrate more resources on employment and the rights of citizens.

• In 1995 the EU gains three more new members, Austria, Finland and Sweden.

• A small village in Luxembourg gives its name to the ‘Schengen’ agreements that gradually allow people to travel without having their passports checked at the borders. Millions of young people study in other countries with EU support. Communication is made easier as more and more people start using mobile phones and the internet.

The European Union

A brief history of the EU (6)

2000 – 2009: Further expansion

• The euro is the new currency for many Europeans.

• 11 September 2001 becomes synonymous with the 'War on Terror' after hijacked airliners are flown into buildings in New York and Washington. EU countries begin to work much more closely together to fight crime.

• The political divisions between east and west Europe are finally declared healed when no fewer than 10 new countries join the EU, eight in 2004, (The Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia and Slovakia) followed by two more in 2007,(Cyprus and Malta).

• A financial crisis hits the global economy in September 2008, leading to closer economic cooperation between EU countries.

• The Treaty of Lisbon is ratified by all EU countries before entering into force on 1 December 2009. It provides the EU with modern institutions and more efficient working methods.

The European Union

A brief history of the EU (7)

2010 – today: A decade of opportunities and challenges

• The new decade starts with a severe economic crisis, but also with the hope that investments in new green and climate-friendly technologies and closer European cooperation will bring lasting growth and welfare.

• On 9 December 2011 leaders from the EU and Croatia signed the accession treaty. Subject to its ratification by all EU countries and Croatia, then the country will become the 28th EU member country on 1 July 2013.

• Other candidate countries are: Iceland, Montenegro, Serbia, The former Yugoslav Republic of Macedonia and Turkey.

• Potential candidates are: Albania, Bosnia and Herzegovina and Kosovo.

The European Union

Candidate Countries

Croatia

Iceland

Serbia

Montenegro

Former Yugoslav Republic of Macedonia

Turkey

Potential

Candidate Countries

Albania

Bosnia & Herzegovina

Kosovo under UN Security

Council Resolution 1244

THE EUROPEAN UNION TODAY

The European Union

How the EU works: EU Institutions (1) European Commission

• The interests of the EU as a whole are promoted by the European Commission, whose members are appointed by national governments. The president of the Commission is currently Jose Manuel Barroso.

• 27 Commissioners, representing the European perspective, each responsible for a specific policy area.

• EU’s executive branch proposes legislation, manages Union’s day-to-day business and budget, and enforces rules.

• Negotiates trade agreements and manages Europe’s multilateral development cooperation.

European Commission President José Manuel Barroso

The European Union

How the EU works: EU Institutions (2)

Council of the European Union

• EU’s main decision-making body, comprised of ministers of 27 Member States, representing Member State’s point of view.

• The European Coucil sets the EU's overall political direction but has no powers to pass laws.

• Led by its President – currently Herman Van Rompuy - and comprising national heads of state or government and the President of the Commission, it meets for a few days at a time at least every 6 months.

• Decides on foreign policy issues.

• Council presidency rotates among Member States every six months. The Presidency for July 2012 –December 2012 is held by Cyprus.

The European Union

European Parliament

• Directly elected by the member states MEPs represent European citizens in the European Parliament

• Voice of European citizens – members elected for five-year terms.

• With the Council, passes EU laws and adopts EU budgets.

• Approves EU Commissioners.

European Parliament in session

How the EU works: EU

Institutions (3)

Together, the three major EU Together, the three major EU institutions described so far, institutions described so far, produce through the “Ordinary produce through the “Ordinary Legislative Procedure (ex "co-Legislative Procedure (ex "co-decision") the policies and laws decision") the policies and laws that apply throughout the EU.that apply throughout the EU.

The European Union

How the EU works: EU Institutions (4) Two other institutions play vital roles:

1. The Court of Justice: Upholds the rule of European law Highest EU judicial authority.

Ensures all EU laws are interpreted and applied correctly and uniformly.

Can act as an independent policy maker but unlike the U.S. Supreme Court, the ECJ can only deal with matters covered by the Treaties.

2. The Court of Auditors checks the financing of the EU's activities.

Please note that the powers and responsibilities of all of the EU institutions are laid down in the Treaties, which are the foundation of everything the EU does. They also lay down the rules and procedures that the EU institutions must follow. The Treaties are agreed by the presidents and/or prime ministers of all the EU countries, and ratified by their parliaments.

For more information about the workings of the EU please check:

http://europa.eu/about-eu/institutions-bodies/index_en.htm

The European Union

The European Central Bank

• The European Central Bank (ECB) is the central bank for Europe's single currency, the euro.

• The ECB’s main task is to maintain the euro's purchasing power and thus price stability in the euro area.

• The euro area was established in 1999. Today the eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Most other EU states are obliged to join once they meet the criteria to do so

• The ECB operates independently from Member State governments.

The euro was introduced in 1999

The European Union

The €uro

In 1999, the euro area was established as a currency in eleven of the then fifteen EU Member States.

Of the 27 EU Member States today, seventeen have adopted the euro.

One of the striking benefits of a single European currency are low interest rates due to a high degree of price stability.

The euro is as stable and credible as the best-performing currencies previously used in the euro area countries.

The European Union

Europe’s growth strategy: Europe 2020 Priorities:

• Europe 2020 is the EU's growth strategy for the coming decade.The EU wants to become a smart, sustainable and inclusive economy. smart, through more effective investments in education, research and innovation; sustainable, thanks to a decisive move towards a low-carbon economy; and inclusive, with a strong emphasis on job creation and poverty reduction. The strategy is focused on five ambitious goals in the areas of employment, innovation, education, poverty reduction and climate/energy to be reached by 2020.

• These three mutually reinforcing priorities should help the EU and the Member States deliver high levels of employment, productivity and social cohesion.

• Each Member State has adopted its own national targets in each of these areas. Concrete actions at EU and national levels underpin the strategy. To ensure that the Europe 2020 strategy delivers, a strong and effective system of economic governance has been set up to coordinate policy actions between the EU and national levels.

The European Union

Europe’s growth strategy: Europe 2020 The 5 Targets:

1. Employment

75% of the 20-64 year-olds to be employed.

2. R&D 

3% of the EU's GDP to be invested in R&D.

3. Climate change / energy

Greenhouse gas emissions 20% (or even 30%, if the conditions are right) lower than 1990

20% of energy from renewables

20% increase in energy efficiency

4. Education

Reducing school drop-out rates below 10%

At least 40% of 30-34–year-olds completing third level education

5. Poverty / social exclusion

At least 20 million fewer people in or at risk of poverty and social exclusion

The European Union

EU funding programmes as tools for growth and achieving EU targets. (1)

Rationale:

• EU Funding Programmes are the tools of the European Union to promote effectively its policies, objectives and priorities for certain programming periods.

• Currently, well over 300 EU funding programmes are running with a global budget up to 975 billion Euro for the period 2007-2013,Covering almost all the sectors of EU activities. The next seven year period starts next year (2013) and ends in 2020.

General Rules:

• Co-Financing Principle

• Transnational project consortiums

• Non-profit oriented projects

• Innovative character

• European Added value

The European Union

EU funding programmes as tools for growth and achieving EU targets. (2)

The EU Funding Programmes are divided into three main categories:

1. The Community Action Programmes (Known as “EU Programmes”, managed centrally by the EU. These are otherwise called: Competitive Programmes)

2. Programmes funded by Structural Funds (Decentralized, Managed by national/regional authorities)

3. The external Cooperation Programmes (Cooperation between EU and non EU countries)

The European Union

EU funding programmes : Community action programmes (1)

1. Presenting some of the Important Community Action Programmes. These programmes stress competitiveness and

innovation as well as social action.

• PROGRESS (Euros 743,25 million): It groups different instruments supporting company and employment policies, equal opportunities and in general work towards achieving the European Lisbon Strategy concerning growth and employment.

• LLP, or Life Long Learning (Euros 6,97 billion): These are intergraded programmes for education and training.

• Europe for Citizens (Euros 215 million): Target is bringing together EU citizens from different regions and countries in exchanging experiences, opinions and values.

• Fundamental Rights and Justice ( Euros 96.5 million): A framework programme aiming at creating a European community based on the European ideals and values and at the same tine respecting human rights. It targets the implementation of EU law amongst member states.

The European Union

EU funding programmes : Community action programmes (2) 1. (continued) Presenting some of the Important Community Action

Programmes.

e. The 7th Framework Programme, (Euros 54,5 billion): This the most important of the Community Action Programmes. It is structured into four specific programmes and its thematic axes are recognized under the names of the following 5 pillars:

Cooperation: Fostering collaboration between Industry and Academia to gain leadership in key technology areas.

Ideas: Supporting basic research at the scientific frontiers.

People: Supporting mobility and career development for researchers both within and outside the EU.

Capacities: Helping develop the capacities of Europe to become a thriving Knowledge-based economy.

Nuclear Research ( Euratom Programme): Developing Europe's nuclear fission and fusion capabilities.

The European Union

EU funding programmes : Community action programmes (3)

e. (continued): The 7th Framework Programme, (Euros 54,5 billion).

In short, the target of the FP7 programme is the improvement of EU competitiveness through the expansion of knowledge and the advancement of the European research and development realm.

• For more info: www.cordis.europa.eu/fp7

The European Union

EU funding programmes : Structural Funds

2. Presenting some EU Programmes funded by Structural Funds: Called for supporting the Lisbon Strategy, these funds are

now oriented towards innovation and support for competitiveness and employment.

The 3 major objectives of the Structural Funds are:

• Convergence

• Regional Competitiveness and Employment

• European Territorial cooperation.

The most important programmed in this category of funds is:

Jeremie (Euros 1.1 billion), which aims at the improvement of the financing of SME’s (small and medium size enterprises).

The European Union

EU funding programmes : External Cooperation Funds

3. Presenting some of the important external Cooperation Programmes (Cooperation between EU and non EU countries)

1. IPA-Instrument for Pre-accession Assistance: It supports candidate countries to comply with EU rules and policies.

2. ENPI-European Neighborhood and Partnership Instrument: It aims at financing assistance to EU neighborhood countries especially in areas such as development, environment, education, energy, health and human rights.

3. DCI-Development Cooperation Instrument: For EU’s development cooperation activities and is investing in people, environment and sustainable management of natural recourses and energy, non state actors and local authorities.

4. ICI-Instrument for Cooperation with Industrialized countries: For initiatives and interactions with Industrialized countries, targeting social, economic, public and private actors of EU Member states, North America, Asia and Gulf countries.