Overview

Upon its signing in 1992, the Treaty on European Union, also known as the Maastricht Treaty, provided the framework for the multinational polity called the European Union (EU). The treaty was a pivotal effort by the European nations to unify politically so as to increase the region’s economic integration and establish joint policies on the environment, defense, citizenship, justice, health care, transportation, and the like. The treaty called for the creation of a single currency, originally the European Currency Unit, which was later reborn as the euro, and for the establishment of a central bank that would coordinate monetary policies among the member nations. By eliminating tariffs on goods imported from one EU country to another and by relaxing border and immigration policies, the treaty—in line with its predecessor treaties—made Europeans freer to work, live, study, travel, and purchase goods and services in any of the EU’s member states.

In late 1991 the heads of government of the EU’s twelve original member states approved the treaty, which was then signed in early 1992 in the Dutch city of Maastricht. The twelve founding nations were Belgium, Denmark, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, and the United Kingdom. The treaty required the approval of voters in each of the member states, and while there was widespread support for the treaty’s goals, many European voters were reluctant to give up control of their economies. Voters in Denmark initially opposed the treaty by a narrow margin, but in a later vote, in May 1993, they reversed course and approved it. Britain, too, proved resistant to some of the treaty’s provisions, and that nation, along with Sweden, did not support a common currency; while the euro was in use in sixteen EU nations as of 2010, Britain continued to use the pound, while Sweden retained the krona.

After the ratification process was complete, the EU, with headquarters in Brussels, Belgium, was established in late 1993. From its original membership of twelve nations, the EU expanded to twenty-seven nations over the ensuing fifteen years. Austria, Finland, and Sweden joined in 1995. In 2001 the Treaty of Nice (France), addressed issues related to the expansion of the union. Accordingly, ten more countries—Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia—joined in 2004, and Romania and Bulgaria joined in 2007.

Context

For some fifteen hundred years, beginning with the collapse of the Roman Empire and culminating with World War II, the nations of Europe were intermittently at war with one another. Throughout that span of time, such historical figures as Charlemagne, Napoléon Bonaparte, and Adolf Hitler tried to unite Europe into a single political entity, but these efforts failed in part because they were based on force rather than cooperation. In the first decades of the twentieth century, European powers such as the Austro-Hungarian Empire, Germany, England, and France remained distrustful of one another and would have rejected out of hand the notion of ceding authority to a supranational body.

The horrors of the twentieth century’s two world wars, however, led to changes in thinking. National leaders finally accepted that some sort of political union would be necessary to eliminate future wars. They also recognized that Europe, fragmented into numerous small nations, all with different policies, currencies, and so forth, would be unable to compete economically with the United States unless the nations pooled their resources. Among the first countries to recognize the potential benefits of political unity were Belgium, the Netherlands, and Luxembourg, three smaller nations in northwestern Europe that agreed to cooperate in matters of trade, tariffs, and economics through the formation of the Benelux Customs Union in 1948 (with the word Benelux coined from the opening letters of the three nations’ names). This union evolved into the Benelux Economic Union in 1960.

In 1950 proposals for the formation of a unified coal and steel community were made, to join the coal and steel industries of France and West Germany. (Communist East Germany would not be included.) The motives were as much political as economic, for as the West German economy revived after World War II, France wanted to keep an eye on its neighbor and former enemy, especially since coal and steel are central to the armaments industry. West Germany eagerly joined with France and also the Benelux nations and Italy, and the treaty forming the European Coal and Steel Community (ECSC) was signed in 1951, with the organization beginning operations the following year. The formation of the ECSC was a crucial step; for the first time, major European powers submitted themselves to a supranational body of ministers and a court of justice that would adjudicate disputes.

A breakthrough step occurred in 1957, when the ECSC nations signed the Treaties of Rome. These treaties formed the European Atomic Energy Community, or Euratom, and, most important, the European Economic Community, informally referred to as the Common Market. The chief feature of the Common Market was that it sharply reduced tariffs and import duties on products shipped from one member nation to another. It also allowed the member nations to create common policies on a range of matters, including transportation and agriculture. Other nations were invited to join, but Great Britain expressed reluctance and instead persuaded Norway, Sweden, Denmark, Switzerland, Austria, and Portugal to join it in the formation of the European Free Trade Association. In 1961 Great Britain reexamined its position and sought membership in the European Economic Community, but its membership was blocked by the French president Charles de Gaulle, who objected to England’s close ties with the United States.

Yet another step toward European integration was taken in 1967 when the ECSC, Euratom, and the European Economic Community merged into a single organization, the European Community (EC). The EC featured a common financing system and developed a framework for cooperation in foreign policy. Discussions were soon held about expanding membership, and in 1973 the United Kingdom, Ireland, and Denmark joined, though the people of Norway rejected membership.

Despite the enhanced degree of economic and political cooperation of the EC, it faced numerous problems. The admission of Greece, Spain, and Portugal proved problematic because those nations were not as economically advanced as the original members. Britain was not always an especially cooperative member of the EC because it was unwilling to cede its independence to an international body. Additionally, questions were raised about the funding of the EC and how its resources were to be distributed. Accordingly, in 1986, the European Council, consisting of the EC nations’ heads of state, signed the Single European Act, which took force in 1987. The purpose of this act was to amend earlier treaties to create a single economic market, form common economic and fiscal policies, and adopt shared policies on taxes, health, employment, and the environment.

The most significant step yet in the process of European integration was the signing of the Treaty on European Union and the formation of the EU. This step was taken in response to the massive changes in Europe of the late 1980s and early 1990s. Chief among these changes were the collapse of the Soviet Union, the fall of the Berlin Wall (which had divided East and West Berlin) and reunification of Germany, and the gaining of independence by the Eastern European nations that had been part of the Soviet bloc. Many of these latter nations were economically underdeveloped, so they immediately looked to the European Community for financial help. As all these developments progressed, France and West Germany called for a conference to propose ways to augment European unity. The result of their deliberations was the Treaty on European Union and the consequent formation of the EU. The treaty was approved in December 1991; signed on February 7, 1992; and, after being ratified by the member states, took effect on November 1, 1993.

Time Line

About the Author

No individual, or even any small group of individuals, wrote the Treaty on European Union. The treaty is a lengthy legal document that consists in large part of revisions and amendments to earlier agreements, particularly that of the ECSC. Many of these revisions are minor, involving the insertion or alteration of words and phrases, while others are more substantial. These revisions and amendments, as well as new provisions, were negotiated among the member nations, with government officials, jurists, trade negotiators, and their staffs meeting and agreeing on the revisions and new policies falling within their various areas of expertise. All of this activity took place under the authority and supervision of the heads of state (either monarchs or presidents) of each of the member countries. These heads of state designated plenipotentiaries, or diplomats empowered to conduct business, who signed the treaty. In every case, the diplomat was a minister of foreign affairs, a minister of finance (or the treasury), or a secretary of state.

Explanation and Analysis of the Document

The Maastricht Treaty is not easy reading. It functions in part as a constitution for the EU, laying out goals and principles that govern the union’s operations. It also functions as a kind of handbook, specifying policies and procedures, though in most cases the details of these policies and procedures still had to be worked out by the EU’s agencies. Much of the treaty consists of amendments to earlier treaties, such as the one governing the ECSC, and a number of its provisions simply incorporate other agreements and treaties signed earlier by the member nations. Thus, it is a document that few people would actually read from beginning to end; rather, it is the type of document that people would consult, if necessary, to seek guidance on particular issues that might arise.

It is nonetheless possible to discern certain themes and principles in the document. Its early portions focus on the overarching goals of the treaty. The opening resolutions and commitments enumerate these goals as they apply to member nations: “the ending of the division of the European continent,” “the strengthening and the convergence of their economies,” the promotion of “economic and social progress,” the implementation of “a common foreign and security policy,” and the creation of “an ever closer union among the peoples of Europe.” These and similar goals all emphasize the commonality of purpose among the member states.

In sum, the provisions of the Treaty on European Union provide a framework for the establishment of what is often called the “pillar system.” This system consists of three “pillars,” or areas in which EU members cooperate. Central to the system is the European Community pillar, with its supranational functions and variety of institutions that govern the EU. The second pillar is the Common Foreign and Security Policy, and the third pillar was originally known as Justice and Home Affairs but is now called Police and Judicial Cooperation in Criminal Matters. Above these three pillars sits the European Council, through which leaders of EU member states meet, although the council is not an EU institution. The council is rather a negotiating body that shapes the policies that the union adopts. It thus fosters the process of integration in allowing member nations some say over the EU’s decisions.

Title I: “Common Provisions”

Under Title I, the treaty enumerates more particular goals of the union. Among these goals are promoting economic and social progress through high levels of employment, achieving “balanced and sustainable development,” strengthening “economic and social cohesion,” asserting the EU’s position “on the international scene,” introducing union citizenship as a way of protecting people’s rights and interests, and allowing “free movement of persons.” Another goal is that of maintaining the union’s “acquis communautaire”—a French term meaning “that which has been acquired by the community.” This refers to the total body of EU law, organized into thirty-one chapters for the 2007 accession of Romania and Bulgaria (and later into thirty-five chapters for negotiations for the future accession of Croatia and Turkey), with titles such as “Free Movement of Goods,” “Free Movement of Persons,” “Science and Research,” “Energy,” and “Environment.”

The first title goes on to specify the mechanisms by which the EU will operate. Among these mechanisms are the European Council (consisting of the heads of state of the member nations), the European Commission (the executive arm of the EU, responsible for proposing laws, implementing policies, and supervising the ongoing functions of the EU), the Court of Justice, and the Court of Auditors. Acting as a constitution, the treaty specifies the voting procedures of the European Council. Although the council has no formal executive or legislative powers, it is the highest-ranking body with respect to the EU and advises the union on any issues that come before it.

Title V: “Provisions on a Common Foreign and Security Policy”

Title V deals with security and foreign policy issues. As the key purpose of the treaty is to promote common interests and common policies, Title V begins with a statement of overarching goals: “to safeguard the common values, fundamental interests, independence and integrity of the Union”; “to strengthen the security of the Union”; “to preserve peace and strengthen international security”; “to promote international cooperation”; and “to develop and consolidate democracy and the rule of law, and respect for human rights and fundamental freedoms.” The treaty is not a defense pact, as is the North Atlantic Treaty Organization, but it leaves open the possibility that such a pact may be formed in the future. Here, the treaty calls for joint consultation and the adoption of common strategic policies with regard to security threats and foreign policy issues. Again, the treaty functions as a kind of constitution by outlining the specific procedures, particularly voting procedures, that will be followed by the European Commission in connection with any issue that has security or foreign policy implications. The treaty does not preclude any member nation from forming defense or security pacts with other member nations or with nations that are not part of the EU. It does, however, require that any such pact adhere to “the interests of the Union as a whole” and respect “the principles, objectives, general guidelines and consistency of the common foreign and security policy and the decisions taken within the framework of that policy, the powers of the European Community, and consistency between all the Union’s policies and its external activities.”

Title VI: “Provisions on Police and Judicial Cooperation in Criminal Matters”

Title VI addresses criminal matters, where again a primary goal is to achieve higher levels of cooperation and information sharing among member states. A particular goal is the establishment of more uniform and consistent criminal codes, so that, for example, an action that merits a certain prison term in one nation will merit a similar prison term in all others. This title further expresses the intent of the union to combat “racism and xenophobia”; “crime, organised or otherwise”; terrorism; human trafficking; offenses against children; illicit drug and arms trafficking; corruption; and fraud. Prior to the Treaty on European Union, each nation was responsible for its own criminal investigations (though nations cooperated through such agencies as Interpol), and criminals could escape one jurisdiction by simply crossing a border. Enhanced cooperation would mean that criminals could not hide behind borders, for national police forces would have the ability to investigate crimes throughout the union, as supported by enhanced mechanisms for sharing information.

Title VII: “Provisions on Enhanced Cooperation”

The last title excerpted here, Title VII, takes up the issue of member states that wish to establish any kind of agreement among themselves, outside the framework of the Treaty on European Union and the EU. Such an agreement “may be undertaken only as a last resort” and only when the objectives of such an agreement cannot be met by the EU. The treaty states that “Member States which intend to establish enhanced cooperation between themselves may make use of the institutions, procedures and mechanisms laid down by this Treaty and by the Treaty establishing the European Community.” The treaty specifies that such cooperation must be “aimed at furthering the objectives of the Union and of the Community, at protecting and serving their interests and at reinforcing their process of integration.” Such cooperation must also respect the treaty and “the single institutional framework of the Union.” It must likewise respect the acquis communautaire and cannot involve a matter outside “the limits of the powers of the Union or of the Community.” It may not “undermine the internal market … or the economic and social cohesion” established by the treaty. Any such agreement would also have to be open to all member states.

Audience

The Treaty on European Union is a legal document, so from its inception, its primary audience has consisted of government officials, government agencies, and their attorneys and advisers in each of the member states. Thus, for example, if the treasury of a member state wishes to propose a monetary or fiscal policy, it is obligated to consult the treaty to ensure that the proposal is consistent with the terms of the treaty—and only by adhering to the terms of the treaty can that nation realize the financial benefits the treaty offers. Another audience is the business and corporate community within the EU. A business proposing an expansion that would, for example, have a potential impact on the environment would have to ensure, in consultation with the government and with its lawyers, that the expansion is allowable under the terms of the treaty and that all environmental concerns are met. In a larger sense, the treaty’s audience was and is all of Europe and indeed the world. The treaty announced to the peoples of Europe and the world that EU nations were to be regarded no longer as a fragmented collection of nations, each pursuing its separate interests, but instead now as a larger, supranational entity with common goals and common policies. In relation to the global community, then, the treaty makes clear that the EU’s purpose is, among other goals, “to assert its identity on the international scene, in particular through the implementation of a common foreign and security policy including the progressive framing of a common defence policy, which might lead to a common defence.”

Impact

The path to the signing of the Treaty on European Union was not entirely smooth. Negotiations were often contentious, and while the majority of Europeans favored in principle the concept of greater cooperation, in practice many were reluctant to cede national autonomy, so the ratification votes tended to pass by narrow margins. Great Britain’s refusal to adopt the euro, for example, was in part the result of rational self-interest—Britain, with its robust economy, did not want its economic policies dictated by bureaucrats in Brussels—but also in part by sentiment and tradition, for it was thought that by relinquishing the pound as its currency, Britain would be relinquishing a portion of its identity. Some of the fears of the treaty’s opponents were partially realized in the late 1990s when evidence came to light that the European Commission was not holding itself accountable to the people of Europe. Widespread charges of corruption, cronyism, and incompetence were leveled at the commission. Furthermore, the European Parliament, which, in contrast to the commission, is democratically elected by the people of Europe, came to be seen as a weak organization. In turn, many have objected to the power of the Court of Justice of the European Union, for in the application of law, EU law supersedes the laws of individual member nations. The upshot is that many Europeans feel that the Court of Justice can be heavy-handed in effectively crushing the laws and legal traditions of member nations.

Other observers have pointed to the weakness of the EU as established by the treaty. They note that the foundation of the treaty lies on such idealized concepts as “cooperation,” but the effect of this emphasis on cooperation, for example, is that decisions often need to be unanimous. For instance, the Common Foreign and Security Policy pillar provides a forum in which foreign policy is discussed and proposals are made for united actions that enhance security and defense. The problem is that this pillar often fails in its endeavors. Some Europeans would like for the EU to develop its own common defense pact, but many argue in response that Europe is already protected by the North Atlantic Treaty Organization and that U.S. participation is needed for any defense posture to have teeth. This argument gained force when the nation of Yugoslavia disintegrated. Yugoslavia, which had been under the influence of the Soviet Union, was in many senses an artificial country, forged out of six republics: Bosnia and Herzegovina (often referred to simply as Bosnia), Croatia, Macedonia, Montenegro, Serbia, and Slovenia. Additionally, two autonomous provinces, Vojvodina and Kosovo, existed within Serbia. Ethnic tensions divided the country, and four of its six republics declared their independence in 1991-1992. The result was a period of civil warfare, and the EU seemed unequal to the task of confronting the crisis. The EU member states were unable to reach agreement on a course of action; some did not want to be drawn into a war against other Europeans. The international community intervened only when the United States and the North Atlantic Treaty Organization, acting under UN authority, conducted military operations in Bosnia. The 1997 Treaty of Amsterdam attempted to resolve the EU’s inability to act, but again the union was expressing intent rather than taking concrete action.

Despite these weaknesses, the impact of the Treaty on European Union nd the formation of the EU was—and continues to be—profound and far reaching, particularly in the economic sphere. It has turned Europe into a single major trading bloc of nearly five hundred million people—a bloc whose size makes it more than able to compete effectively with similar trading blocs in North America and Asia. Collectively, the nations of the EU produce roughly 30 percent of the world’s gross domestic product. The reduction of trade barriers and tariffs, the adoption of a common currency and common central bank policies, and the opening of borders have reduced frictions and inefficiencies, thus enabling Europe to make its voice heard in world affairs.

Supporters of the treaty and of the EU point to numerous advantages afforded by the treaty. They note, for example, that the Common Agricultural Policy created as a result of this and earlier treaties has benefited farmers and consumers by creating a single market for farm products and by protecting European farmers from external competition. The Common Fisheries Policy helps to prevent the overfishing of common waters. The European Investment Bank offers loans that promote economic development. Various agencies use pooled funds to help level out some of the economic disparities between the richer nations of northern and western Europe and the poorer nations of southern and eastern Europe.

Most important, the EU’s Economic and Monetary Union led to the integration of monetary and budgetary policies, stabilizing currency values and interest rates. Prior to the introduction of the euro, considerable inefficiencies abounded, such as where currencies had to be constantly converted into one another. A corporation in France, for example, denominated its activities in the French franc. If the corporation had a factory in Germany or sold its products in Germany, it had to deal with fluctuating exchange rates between the franc and the German deutsche mark. And if that French-owned factory exported its German-made products to Italy, now the Italian lira and its fluctuating value in relation to both the franc and the deutsche mark introduced additional measures of uncertainty. The common currency of the euro, along with policies designed to curb inflation and stabilize interest rates across Europe, has eliminated many of the inefficiencies that sapped value from Europe’s economies. It has also reduced the instability of currency speculation, whereby financial agents direct large currency flows across borders to take advantage of changes in exchange rates and interest rates. The process of introducing the euro was gradual. It was a “virtual” currency used for cashless transactions and accounting purposes beginning in 1999. Euro coins and banknotes were introduced in 2002. As of the end of 2009, sixteen nations were using the euro: Belgium, the Netherlands, Luxembourg, Finland, Ireland, Portugal, Spain, France, Italy, Germany, Austria, Slovakia, Slovenia, Greece, Cyprus, and Malta. Britain and Sweden opted out of using the euro, while the remaining EU members will adopt the euro after they have met certain economic conditions. At the end of 2009, one euro was worth about $1.50.

Other aspects of the EU benefit citizens more directly. A student from Germany who wishes to study in France or the Netherlands can do so without having to undergo time-consuming procedures allowing him or her to gain admission to a university in another country and, especially, to live there. People who live near borders can freely pass into neighboring countries for recreation or to shop without having to worry about exchange rates or carrying passports. And to the benefit of the European economy and world travelers alike, tourism has been greatly facilitated. Prior to the Treaty on European Union, a tourist traveling from country to country in Europe had to deal with a wallet or purse full of different currencies and had to constantly convert one currency into another. Delays were common at border crossings as passports had to be examined. Today, a tourist can fly into, say, Munich, Germany, rent a car, and pass into Austria on the way to Salzburg in much the same way that tourists in America can drive from state to state. Only one currency is necessary, and armed border guards are a thing of the past.

In December 2007 the member states of the EU signed the Treaty of Lisbon, which entered into force on December 1, 2009. The Treaty of Lisbon is an amendment to the Treaty on European Union intended to boost efficiency. Among other changes, it gives a larger role to the European Parliament in the EU’s legislative process and makes the EU human rights charter, the Charter of Fundamental Rights, binding on EU member states.

Further Reading

Questions for Further Study