Stage 3
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European Union

Analysis of the Integration Process (I) - Stage 3

From the EEC to the Single European Act (SEA)

Introduction: Central characteristics of the integration process



Field of tension between supranational and intergovernmental

While the period of development that we have already analysed might have been short, it has already served in highlighting a core characteristic of the integration process that influences it like no other. This characteristic is the continual tug-of-war-like relationship between a supranational structure like the one found in the ECSC and intergovernmental tendencies such as the ones found in the EEC treaties, where there was a shift in power away from the supranational bodies back to the individual member states. This tension can also be found during the next period of development, namely the period from the foundation of the EEC to the first major treaty change, the so-called Single European Act (SEA) in 1987.

Expansion - deepening of relationships as a source of tension

As well as influencing the period between the EEC and SEA, the second field of tension between expansion and the deepening of relationships can still be felt very strongly today. These two fields of tension will form a compass and common thread running through the rest of the EU development process analysis, as well as being directly connected to the main questions posed at the outset.
 

Supranational tendencies

Let us begin with the supranational tendencies that were characteristic during this period. There are quite a few to mention:
 
bulletThe creation of common institutions for the three existing Communities, namely the EAEC, ECSC and the EEC, using the so-called Merger Treaty, which was ratified in 1965 and which came into force in 1967.
bulletThe replacement of financial contributions from member states by providing the Community with its own resources based on a Council resolution from 1970.
bulletThe setting up a European Audit Office as well as giving the European Parliament (EP) increased powers, based on the so-called "Treaty of Brussels" from 1975.
bulletThe introduction of direct elections for the EP, decided in 1976. The first direct elections took place in 1979.

These were the formal and clearly recognizable events that point to supranational development.

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The jurisdiction of the European Court of Justice (ECJ) represented a more significant influencing factor. The European Court of Justice made a series of revolutionary judgements changing the EEC Treaty into something more like a proper constitution. For instance, the principle of direct effect of EU law was laid down. The ECJ was responsible for giving community law precedence over national law and incorporating national courts into the EU judicial system by encouraging them to appeal to the ECJ in cases where EU law was unclear.

To this end, then, a legal system was established similar to those found in national states which went far further than any arrangement witnessed previously between national states. This legal system became the most outstanding hallmark of the uniqueness of the EEC.

There is also another very important point to mention   , namely the fact that during the course of our analysis there is slow yet constant creep in the number of political areas in which EU cooperation begins to encompass. This is particularly true from 1980 onwards. To this end, then, the SEA had only really put down on paper things that were already happening in practice.

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Intergovernmental tendencies

From this one might get the impression that there was a clear movement during these years towards more supranationality of the EU. This was certainly not the case. We shall prove this by taking a look at some selected events characterized by their inter-governmental direction.

Let us begin with the s-called Luxemburg compromise in early 1966. What was the Luxemburg compromise? According to the Treaty, the central authority of the EEC, the Council of Ministers was supposed to pass over from unanimous decisions to majority decision-making from the 1st of January 1966. But the French government led by De Gaulle was firmly against this. Then, in the middle of 1965, France withdrew its representatives from the Council to prevent it making a decision after no agreement had been reached on the contentious issue of agricultural financing. This so-called "empty chair policy" represented the EEC's first large crisis.


This crisis was settled by the aforementioned "Luxembourg compromise" in January 1966. Member states agreed to dispense with the planned majority decision rule in cases concerning a country's vital interests. This meant that the principle of unanimous decision making characteristic of the methods traditionally used for relationships between states continued de facto. This represented a crucial event in the history of integration.

 

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As far as the intergovernmental side of things were concerned, there was the setting up of an institution for coordinating foreign policy between member states called European Political Cooperation (EPC) in 1969. This institution came in response to the membership of Denmark, Ireland and the UK, which made the EU increasingly important in terms of its international influence. One of the most significant things about this organisation as far as we are concerned is that EPC was set up outside of the EU framework and, quite deliberately, was not related to the EU. In addition to this, its decisions were based on the principle of unanimous voting just like in most normal international relationships.
 

Expansion vs. deepening as a source of tension

We now turn our attention to the second field of tension, namely expansion vs. deepening, starting with an overview of events. The expansion of the community for the period between the EEC and SEA took place in three steps.
 
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Expansion to the north taking in Denmark, Ireland and the United Kingdom in 1973

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Expansion to the south taking in Greece in 1981,

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Expansion to the south (II) taking in Spain and Portugal in 1986

This means then that it took the Community 20 to double exactly the number of its members. This brought with it a large number of consequences, which we will go into shortly. Before looking into the consequences more deeply, however, it is important to note that each expansion of the community went hand-in-hand with an expansion and deepening of the scale of cooperation. The expansion of the Community in 1973, for example, played a major role in triggering the setting up of the EPC, while the expansions to the south provided significant impetus for the setting up and expansion of the Community's regional policy.



Another, more problematic effect of expansion was: that a larger number of member states meant increasing heterogeneity of interests and basic attitudes and led to questions being raised about the purpose of the EEC and how it might be further developed; they also gravely affectedthe decision-making process. It is also worth bearing in mind that at this time decisions still had to be unanimous because of the Luxemburg Compromise!
 

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SEA determinants

This brings us to the end point of a stage that lasted 20 years, the Single European Act (SEA) as the first major Treaty change. One of the first and most obvious questions arising out of these developments is how, after two decades of stagnation in formal developments, did the SEA come about, what triggered it and which factors made it possible. There are three major factors:
 
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Firstly, the increasing inability to make decisions set against a background in which unanimous decisions were required (Luxemburg compromise) and heterogeneous interests (expansion).

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Secondly, comments from an increasing number of top politicians that this inability to make decisions and the lack of a truly single market would put the European Union at a serious technological disadvantage to the USA and Japan.

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Thirdly, the fact that either because of a change of government (Margaret Thatcher in the UK in 1979, Helmut Kohl in 1982 in Germany and new elections in 1983) or because of a change of direction (France: Mitterand began to distance himself from socialist economic policy) the way in which the governments in several of the large member states had moved closer together.


Intergovernmental Conference, Single Market Program and SEA


And it was set against this background that a series of initiatives were introduced by member states and, indeed, the Commission aimed at giving back the Community its ability to take action. These initiatives led to the internal market program, which provided for all trade restrictions, but especially non-tariff trade restrictions, still remaining between member states to be lifted by the end of 1992 in order to create a truly common market and an Intergovernmental Conference aimed at changing the Treaty of Rome according to article 235 of the EEC Treaty, which was called by a European Council resolution from 1985 which finally led to the SEA.

 

SEA revisions

These new EEA reforms included, in brief:
 
bulletThe inclusion of a series of new policy areas within the scope of those supported by the Treaty. These included environmental policy, but also research and technology policy and regional policies.
bulletThe inclusion of the the internal market as one of the Treaty's objectives.
bulletThe modification and amendment to the existing decision-making process. Included in this was the introduction of a new decision-making procedure, voting in the Council of Ministers using qualified majority and new far-reaching measures aimed at strengthening the influence of the European Parliament, which until this point had only been acting in an advisory capacity
bulletTreaty-based rules for cooperation among member states in foreign policy areas, but outside the EEC Treaty.
 

Stage 3 summary

As far as the European constitution was concerned, the best way of summarizing the changes made within the scope of the EEA would be to say that a clear step towards supranationanlization had been made, while, as far as material politics were concerned, there had been an impressive expansion towards integration, that is, those areas of political cooperation brought into and supported by the treaty. It is also important to bear in mind here that there can be no doubt that these kind of changes would not have been possible had it not been for the many small steps that had been taking place since the foundation of the EEC, as well as all for all experience won out of cooperation by and in the member states. And, equally, it should also be stressed that these very changes would go on to become important influencing factors for the further development of the EU.

[Author: Prof. Dr. Wolfgang Schumann]

... on to Stage 4: From the EEA to the foundation of the European Union

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