Download Joel and Jodi: EU Presentation

European Union
By: Joel Ahrendsen &
Jodi Calvert
Outline
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History
Government
Funding
Expenditures
Common Agriculture Policy (CAP)
Trading
Global Economy
History
• European Coal and Steel Community
• European Economic Community
• European Atomic Energy Community
Three eventually came to be called
European Communities
History Cont.
• Euro adopted in 2002
• Member States
– Austria, Belgium, Bulgaria, Cyprus, the Czech
Republic, Denmark, Estonia, Finland, France,
Germany, Greece, Hungary, Ireland, Italy,
Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Poland, Portugal, Romania,
Slovakia, Slovenia, Spain, Sweden, and the
United Kingdom
Government
• Commission
– Executive Branch
– 27 members
– Represent EU above own country
– Legislative initiative power
– President elected for five year terms
• The president is part of the 27
Government Cont.
• Council
– Legislative Branch (with Parliament)
– Holds budgeting power
– 27 ministers for each topic in the EU
• i.e. each member state as an agriculture minister.
– Have a six month rotating Presidency
• President is allowed to set the agenda during his
or her term
Government Cont.
• Parliament
– Only directly elected institution in the EU
– Makes up Legislative Branch (with Council)
• Over powered by council if not using co-decisions
– 785 members - Represent Country before EU
– Partied System, two main parties
• European Democrats and European Socialists
– 22 committees
Funding
• Traditional Tax
– Generated Primarily through imports into
member states.
– If a state does not meet the requirement,
remaining states must cover the loss.
• Value Added Tax (VAT)
– Tax to EU citizens
– Rate capped at 50% of countries Gross
Income
Funding Cont.
• Gross National Income (GNI)
– Largest source of EU funds
– Rate is capped at 1.24% of GNI for the EU as
a whole
• Other
– Interest
– Surpluses
– Roughly 1%
Contributions & Expenditures
% Contribution to the EU
Other
27%
% Expenditures from EU
Germany,
12.60%
Germany
20%
France
18%
Italy,
11.20%
K,
U
Spain
10%
France,
13.90%
Other,
40.60%
%
Spain,
13.20%
50
Italy
14%
8.
UK
11%
Common Agriculture Policy
(CAP)
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Origin 1962
Helped struggling war countries
Unified Market
Internal Market vs. Foreign Products
Financing Ag Programs
Reforms
• 1993
– Direct Payments
• 2000
– Decreased Payments for New Countries
• 2003
– Payments based on commodities
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Percentage (%)
Agriculture's Share (%) of Gross Domestic Product 2005
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Countries
Commodity Payments
• Tariffs and export subsidies
• Supply Limits/Quotas
– Dairy & sugar
• Price levels
• Single farm payments
– Tobacco, cotton, & olive oil
Main EU Agricultural Production 2005
Cereal
17%
Other
16%
Oilseeds
2%
Olive Oil
2%
Eggs & Poultry
6%
Cattle, pigs,
sheep, & goats
22%
Dairy Products
16%
Fresh Fruits
4%
Fresh
Vegetables
8%
Wine
5%
Potatoes
2%
Food Safety
• Country of Origin
– BSE
• Organic
– Pass Inspection
– Labeled Properly (vendor, inspection,
producer, & preparer)
Food Safety Strategies
• Provide consumers with information of
where the products came
• Provide scientific devices to the public
through research
• Food and animal feed rules
• Be able to enforce these rules and control
processes
Environment
• Voluntary
• Programs
– creating ponds
– planting trees
– reducing inputs
– no tilling acres
– using conventional farming practices.
• GMO's
Rural Development
• Education about new farming techniques
• Assist retiring farmers
• Assist beginning farmers
• Assist in environmental and animal welfare
standards
• Update buildings and machinery
• Developing home food processing facilities
Rural Development Cont.
• Improving food quality and marketing
• Develop farming in mountainous areas
and other areas not in farming
• Encourage tourism
• Protect heritage and customs
• Develop strategies by local action groups
Trading
• 2nd Leading Exporter
• 1st Importer
• Trade with developing countries
• No tariffs or border controls in EU
• Single Currency
EU Exports
Meat 6%
Dairy products
8% Fresh Fruits &
Vegetables
5%
Preparations of
fruit &
vegetables
4%
Flowers &
plants 2%
Other
41%
Cereals, milling
products, &
starches
5%
Sugar &
covectionery
3%
Beverages,
spirits, &
vinegar
22%
Fats & oil
4%
EU Imports
Meat
5%
Oilseeds
8%
Other
36%
Edible fruits
18%
Cofee, tea, &
spices 7%
Cocoa & cocoa
preparations
5%
Beverages,
spirits, & vinegar
6%
Cereals, milling
products, &
starches
Preparation of
3%
fruit & vegetables
Fats & Oils
6%
6%
Impacts of CAP
• Increased Production
• Provided incentives for farmers
• More people willing to invest in agriculture
Economy
• All countries in the EU are recognized as a
single market under the WTO.
– Free movement of goods, capital, people and
service
• Generates U.S. equivalent of $17.6 trillion
– ~31% of the world's total economic output
Unemployment
GDP (Euros)
10.0%
2000000
1000000
UK
France
1500000
Italy
Spain
500000
0
1
GDP per Capita (Euros)
1
Public Debt (% of GDP)
120.0%
UK
0.0%
1
Spain, 48.9%
1
UK, 41.6%
20.0%
France, 65.6%
40.0%
Germany, 66.0%
Italy
EU
60.0%
EU, 60.4%
Spain
Italy, 105.8%
100.0%
80.0%
France
Germany
30,000
29,000
28,000
27,000
26,000
25,000
24,000
23,000
22,000
Germany
0.0%
Spain, 8.0%
2.0%
UK, 5.4%
Italy, 6.1%
4.0%
France, 8.6%
Germany, 8.8%
6.0%
EU, 7.9%
8.0%
2500000
Issues
• Integration
– Loss of Country identity
– Conflict between EU and National interests
• Enlargement
– Is it growing too fast?
– Can the EU support and control more
countries?
Irgendeine Fragen?
Dank für
Zuhören