The European Union can be considered today as one of the world’s most influential powers as it represents twenty-eight member states in major international and even regional affairs. Many member nations see the EU as the result of their desire to ensure European integration to keep peace in the region. Considering the membership of these European states to the regional organization, it is a question for member countries and non-member countries as to who is more influential or powerful: the EU or the member countries? For some experts, the member countries are more powerful than the EU because they still retain their sovereignty. However, others claim that the EU is more powerful than the member countries. Although the EU holds precedence in aspects such as policies and jurisprudence, the impact of the member countries are more powerful than the EU as seen in its leadership, continuous enlargement and the effects of individual member statuses to the stability of the Union.
The concept of the European Union or European integration began after the Second World War when the Allied Powers and the remaining European nations tried to revive the region and decide Germany’s fate. With the Soviet Union moving towards Eastern Germany, the Allied Powers established the Federal Republic of Germany, which has a free market and democratic institutions. However, the Allies did argue as to what to do with Germany’s reintegration back to the European market. France agreed that a supranational solution can usher German economic development, but they did disagree to the possibility of remilitarizing Germany. The United States had stepped in introduce integration as a means to reunite Western Europe especially with the growing influence of communism. Under the Marshall Plan, America’s recovery package for Western Europe’s rehabilitation, the US pressed Euorpeans to coordinate with one another to organize the aid. However, with Germany’s recovery exceeding the remaining Europeans’ expectations, France had been pressed by the Americans to create a proposal that would be agreed by every European nation to integrate with one another without sacrificing Germany’s recovery .
The resulting proposal was drafted by French civil servant Jean Monnet and called it the Schuman Plan, which would paved the way for European integration especially in creating a common market for coal and steel. The Schuman Plan was immediately put into action on May 9, 1950 through the Schuman Declaration, highlighting that the plan was to aid European interest and open cooperation between them. Many European nations, such as Ireland, Spain and Portugal had rejected the proposal and left the Benelux (Belgium, the Netherlands, and Luxembourg), France, Germany and Italy to establish the European Coal and Steel Community in 1952. As the years progressed, many European nations who did not take part in the ECSC had been surprised with the amount of success brought in by European integration especially as the international market had grown in the 1950s. A common market and a customs union was introduced by the Dutch representatives to permit free movement of goods and capital around member countries. The resulting negotiations paved the way to the establishment of the European Economic Community or the European Community in 1956, establishing the foundations of the single market program. Although France’s political environment – under Charles De Gaulle – and the United Kingdom’s accession made issues with the single market and the EC, the European Union was officially launched in 1990 upon the enactment of the Maastricht treaty .
Considering the unique history and establishment of the European Union, many are often confused as to who has the upper hand in each other’s affairs and their image to the world. Some experts pointed out that the European Union holds more authority than the member nations, especially on legislation (treaties and policy standards) and jurisprudence. Upon a nation’s accession to the European Union, the EU would provide a specific domestic opportunity structure that would aid the member country to integrate itself with the rest of the European Union. This changing domestic opportunity structure would often include policy framing and reorganization of resources, sometimes including judicial review to add EC law. Some models may include guidelines as to opening trade routes to incite regulatory competition between the member state and other EU nations.
However, EU’s impact to member countries varies extensively depending on the ‘mismatch’ between the EU and the member country’s policies. Some studies stated that if the country’s domestic policies has a lower compatibility rate than with Europe, the more the EU would exert pressure to the member countries to change. The EU can exert this pressure through a “policy misfit” wherein European rules do not match with domestic policies. EU would use their own standards to question if their current domestic policies would continue to work while under the EU, causing these member states to violate EU’s policies. Another way the EU can influence these member countries is by causing an ‘institutional misfit’ wherein they challenge domestic rules and procedures. Once the discussions have been mediated between parties, a redistribution of resources would occur within the member countries to match the European standard. Member States often absorb the positions of the European Union when it comes to the policies set as the EU standard, often being able to include it to their local institutions without much change. Other Member States may also succumb to pressure and adapt existing policies which would improve their domestic policies. Finally, some may fully reinvent its entire policies to use the European standard completely .
EU’s dominance over the member countries can also be seen in jurisdictions of the European Court of Justice (CJEU) and adherence to EU law. According to Article 267 of the Treaty Founding the European Union, the CJEU would immediately act if national courts cannot reach a consensus regarding a court case. National courts are expected to defer to the CJEU due to the doctrine of supremacy. One notable example where the CJEU used its supremacy was in the Internationale Handelsgesellshaft case, wherein the company Rewe-Zentral AG questioned if EU law should take precedence considering that national constitutions already set the standards for its ruling. There were also arguments raised that the EC law is a violation to Germany’s constitutional rights and sovereignty. However, the CJEU sent its counter and stressed that EC law cannot be overruled by national rights especially if there is no evidence that it is harming the entire community. Furthermore, the CJEU also argued that the CJEU has respected every nation’s fundamental rights prior to its involvement in the case as it is a major tenant of the CJEU .
The case Costa v ENEL is another example wherein the EU holds dominance over member nations. In this case, the sued owner (Costa) declined paying his electricity bill due to stock shares. Costa argued that their dispute should be resolved under Italian courts rather than using the Community provisions in consideration to the phrase “lex posterior derogate priori” (last passed law takes precedence). The EC law had been enacted first before the Italian nationalization law was introduced, which Costa used for his defense. However, the CJEU had pointed out that Italy is also bound to apply EU law and CJEU rulings and would only include national policies if the legislation calls for it .
Despite having the control over regional standards, treaties and court decisions, it is the member countries who hold most influence than the European Union. One of the most critical examples to this is Germany’s somewhat leadership status in the European Union. According to German sociologist Ulrich Beck, Europe is now becoming a “German Europe” considering that Germany often takes the reigns when deciding the EU’s next actions in critical issues. Although Germans do not see its chancellor’s actions as a something to be looked at, Germany has indeed fronted for the EU in many occasions and critics have already indicated that Angela Merkel is indeed leading the Union as if it is its sworn duty to usher Europe out of its dark ages . Aside from Germany, France and the United Kingdom are also making their influence known in the region and aids in leading the Union. Like Germany, both countries are capable of sustaining itself despite the presence of EU institutions. They are also influencing how policy-making is done in the European Union in comparison to other member countries. Although the powers of the Big Three (as they are called) are often limited due to the policies of EU, their involvement remains critical in determining where the EU would go next especially on foreign policy
The European Union also owes its power to the member countries because the more members accede to its ranks, the more legitimate the organization becomes for the region and for the rest of the world. In an assessment given to Britain’s House of Lords, the enlargement provides the EU leverage in the international community and the capacity to act in regional issues as seen in the 2004 and 2007 enlargements wherein the EU had managed to reach the Balkan territories and Turkey. Additional members to the EU also permits economic benefits to enter the organization and its common market. The enlargement had already opened the single market to almost 500 million consumers with an estimated GDP of £11 trillion. The member countries also ushered agreements within the European Union in terms of critical policy areas such as the internal market and the regulation standards. It is also the member countries who tackle between themselves as to how EU legislation should be conceptualized and proposed to the rest of the Union .
Finally, the situation in individual member countries also proves that the EU does not have full dominance over the region and its member countries. The Greek debt crisis, for example, is the finest example to emphasize this argument because Greece’s situation had ultimately threatened the entire European Monetary Union or the Eurozone. Experts stated that the crisis began in 2001 when the Greek government’s failure to enact strong economic policies had resulted to the nation unable to sustain the more expensive Euro. Prior to its inclusion to the Euro, the country had been jumbling its finances by providing cheap capital and increasing the country’s debt to increase the standard of living in the country. While it had managed to improve Greek life for many citizens, its failure to take into account the possible implications of the changing global market had affected its capacity to handle the Euro. Many businesses had closed due to debt and the government had to resort in selling their government bonds, and conceal their situation to prevent the European Union and Greek investors from learning about their situation. With the country’s economy slowly crumbling and the 2008 global financial crisis affecting the entire economy, the European Union slowly noticed that Greece’s financial reports did not make sense in 2009 .
However, once the EU called Greece‘s attention regarding their actual economic status, the organization had immediately called a referendum to discuss how Greece’s situation can be contained and prevent the possible consequences from occurring in fellow Euro nations. Despite their best efforts, the Greek crisis had already affected the remaining members of the Eurozone as Spain and Italy had also declared their requests for financial assistance. The referendum had also discovered that if Greek is unable to pay its debts and even the lost bonds they have sold to other nations and creditors, the EMU is likely to fall apart . Proposals have immediately been filed to the members of the EMU from the International Monetary Fund and the EU in 2010 to create a bailout plan to resuscitate Greece. The bailout was worth €110 billion government bonds; however, Greece would have to adhere to several stipulations before such a complete restructuring of its economic policies and ensure that it would be able to compete with the rest of the Eurozone members. The Greek government is also tasked to improve other policies such as political and social services. For some, they are proposing to remove the Greeks out of the Eurozone to prevent further impacts to other Euro countries.
Member countries like Germany and France had reported that their economies have been affected greatly when the Greek crisis. For France, Greece must create a debt restructuring scheme to ensure that Greece can pay both its debts and its creditors with the assistance of a private sector to monitor their progress. Germany was adamant that a bailout plan should be implemented to teach member countries to monitor its budgets more closely . As the discussions regarding Greece’s fate as a member of the Eurozone continue to reign within the member countries, it is perceived by experts that it would severely curtail prospective members to the Eurozone to join after seeing Greece’s fate. The EU would also find it difficult to revive the confidence of member nations to the EMU unless it manages to introduce a monetary and fiscal policy that would prevent such occurrences to happen like in Greece. The Greek crisis had also ensured that the Eurozone would lose investor confidence from other nations outside the region. If Greece indeed exits from the Eurozone, it would ultimately cause a domino effect and usher the beginning of withdrawals from other nations who do not want to be affected by one nation’s decline while in the Eurozone .
Today, the European Union is a force to be reckoned with as it has the collective support its member nations and the pinnacle of European integration. Many neighboring countries of EU member countries continue to clamor to accede to this powerful political and economic powerhouse in the hopes of catching up to these developed nations. Although member countries would have to give up a part of its sovereignty to integrate itself with the EU, they still have the power to determine how the EU would grow as an organization and as a representative body of its member nations. Without the member nations, the EU is nothing but a title that is not recognized by the people it was meant to serve. Furthermore, it is also the member countries who can determine if the EU and its policies should remain or need reconsideration as seen in the Greek crisis. Regardless as to who is more dominant in this relationship, it is undeniable that the European Union is a fine model how cooperation and member-organization relationships should be seen by those aspiring to copy the same model.
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