Summary Challenges to European Governance Exam B
Nugent chapters 20, 21, 23 and Chang chapters 1,2, 3
Chapter 20 – Internal Policies
The Internal Market
The establishment of the Common market was provided for in the EEC treaty but took a
while to develop. It began picking up in the 1970s when the Community began lagging
behind competitors and the fragmented market was to blame.
• The Commission produced a White Paper in 1985 to complete the single market by
1992 (included in SEA)
The internal market rests on four pillars:
1. Common Customs Tariff
Also known as the Common External Tariff, was made to further fair and equal
internal trading by ensuring all goods meet the same conditions when entering the
EU. This was set in place in 1968 and has worked because of a clear and binding legal
framework.
2. Free Movement of Goods, Persons, Services and Capital
This was done with goods in 1968, for employed people in the TFEU and later the
rest, capital markets have been open since 1990, services with the Services Directive
in 2004 but was politically controversial and watered down to be accepted in 2006
3. Approximation of laws and Mutual Recognition
Approximation is the harmonisation of EU laws nationally in a flexible way. With the
Cassis de Dijon case in 1979, this was established. Laws only need to be
approximated, for example with non-tariff barriers (NTBs), which have different
national standards.
4. Competition Policy
Outlined in 101-109 of TFEU, it concerns prohibition of certain agreements, abuse of
a dominant position and state aid all to prevent hinderance of competition. The
Commission has significant power when it comes to competition for example with
mergers.
Problems in completing the internal market include historical reasons, more specific spheres
of market activity, resistance from member states, nationally controlled policy areas such as
minimum wage, differences between policymakers in how regulated the market should be,
debates on when EU policies are necessary and transposition of legislation.
Functional Policies
• Area of freedom, security, and justice policies
JHA policy started with the Trevi process, which were informal meetings about security and
was then strengthened with the Maastricht treaty, becoming a pillar. Because of how
sensitive the policy area is, not much was developed, and it was further worked on in the
Amsterdam treaty for example with the Schengen agreement. JHA was pressured
afterwards because of terrorism threats, opening of the internal market and increased
immigration. The Lisbon treaty shifted JHA policy more towards supranationalism apart
, from in the UK. Then advancements were made with more support for institutions such as
Eurojust, common policies such as revised Dublin regulations and asylum procedure
directive and combatting cybercrime.
• Cohesion policy
It was developed to balance distribution within the EU to reduce disparities mostly with
funds. The three main ones being the European Regional Development fund, European
Social Fund and Cohesion Fund. Half is assigned to less developed regions (GDP less than
75% of EU average). They aim to strengthen innovation, access to ICT, preserve the
environment, promote quality employment, and invest in education.
• Social, employment and economic growth policies
Started with the EEC treaty with equal pay for men and women and laid the foundation for
the ESF. In 1989, the charter for workers was established and the Amsterdam treaty
strengthened social policy as well as the Europe 2020 strategy. Though social policy has
often mainly been focussed on economic growth and employment.
• Energy policy
Until the 1980s there wasn’t much progress for common energy policy because member
states preferred national solutions. Recently this has changed because of over-reliance on
external suppliers, climate change and liberalisation of the energy sector (making it less
separate from the internal market). EU energy policy is made up of the Strategy for a
resilient union which includes energy security, solidarity and trust, integrated energy
market, energy efficiency and decarbonisation. The Energy Union is more a process than a
goal because members differ so much in their energy capacities and sources.
• Research and innovation policy
Four main forms: Joint Research Centre, shared cost or contract research, concerted action
research projects and diverse arrangements like cooperation with IOs and non-member
states. The European research Area was also created to strengthen coordination, bridges
and promote mobility for researchers. The EU spends relatively less on research in
comparison to the USA and Japan.
• Environmental policy
Has four objectives: preserve environment, protect human health, using natural resources
and combatting climate change. By 2030 the EU aims for a 27% energy efficiency increase
from 1990 levels, 27% renewable energy and 40% reduction in emissions. Implementing
environmental laws has been difficult because of mass capital expenditure required and
different starting points of member states.
• Sectoral policies
Common Agricultural Policy (CAP, ch21)
Common Fisheries Policy – EU’s fishing zone is open to all EU fishermen, conservation of
fishery with national quotas, structural measures, and external negotiations. The main
problems are depleted fish stocks and pressure from the fishing industry on ministers.
Shipbuilding – there are problems with over-capacity, but goals are to enhance productivity
and most policy instruments are funds and rules on state aid.
Nugent chapters 20, 21, 23 and Chang chapters 1,2, 3
Chapter 20 – Internal Policies
The Internal Market
The establishment of the Common market was provided for in the EEC treaty but took a
while to develop. It began picking up in the 1970s when the Community began lagging
behind competitors and the fragmented market was to blame.
• The Commission produced a White Paper in 1985 to complete the single market by
1992 (included in SEA)
The internal market rests on four pillars:
1. Common Customs Tariff
Also known as the Common External Tariff, was made to further fair and equal
internal trading by ensuring all goods meet the same conditions when entering the
EU. This was set in place in 1968 and has worked because of a clear and binding legal
framework.
2. Free Movement of Goods, Persons, Services and Capital
This was done with goods in 1968, for employed people in the TFEU and later the
rest, capital markets have been open since 1990, services with the Services Directive
in 2004 but was politically controversial and watered down to be accepted in 2006
3. Approximation of laws and Mutual Recognition
Approximation is the harmonisation of EU laws nationally in a flexible way. With the
Cassis de Dijon case in 1979, this was established. Laws only need to be
approximated, for example with non-tariff barriers (NTBs), which have different
national standards.
4. Competition Policy
Outlined in 101-109 of TFEU, it concerns prohibition of certain agreements, abuse of
a dominant position and state aid all to prevent hinderance of competition. The
Commission has significant power when it comes to competition for example with
mergers.
Problems in completing the internal market include historical reasons, more specific spheres
of market activity, resistance from member states, nationally controlled policy areas such as
minimum wage, differences between policymakers in how regulated the market should be,
debates on when EU policies are necessary and transposition of legislation.
Functional Policies
• Area of freedom, security, and justice policies
JHA policy started with the Trevi process, which were informal meetings about security and
was then strengthened with the Maastricht treaty, becoming a pillar. Because of how
sensitive the policy area is, not much was developed, and it was further worked on in the
Amsterdam treaty for example with the Schengen agreement. JHA was pressured
afterwards because of terrorism threats, opening of the internal market and increased
immigration. The Lisbon treaty shifted JHA policy more towards supranationalism apart
, from in the UK. Then advancements were made with more support for institutions such as
Eurojust, common policies such as revised Dublin regulations and asylum procedure
directive and combatting cybercrime.
• Cohesion policy
It was developed to balance distribution within the EU to reduce disparities mostly with
funds. The three main ones being the European Regional Development fund, European
Social Fund and Cohesion Fund. Half is assigned to less developed regions (GDP less than
75% of EU average). They aim to strengthen innovation, access to ICT, preserve the
environment, promote quality employment, and invest in education.
• Social, employment and economic growth policies
Started with the EEC treaty with equal pay for men and women and laid the foundation for
the ESF. In 1989, the charter for workers was established and the Amsterdam treaty
strengthened social policy as well as the Europe 2020 strategy. Though social policy has
often mainly been focussed on economic growth and employment.
• Energy policy
Until the 1980s there wasn’t much progress for common energy policy because member
states preferred national solutions. Recently this has changed because of over-reliance on
external suppliers, climate change and liberalisation of the energy sector (making it less
separate from the internal market). EU energy policy is made up of the Strategy for a
resilient union which includes energy security, solidarity and trust, integrated energy
market, energy efficiency and decarbonisation. The Energy Union is more a process than a
goal because members differ so much in their energy capacities and sources.
• Research and innovation policy
Four main forms: Joint Research Centre, shared cost or contract research, concerted action
research projects and diverse arrangements like cooperation with IOs and non-member
states. The European research Area was also created to strengthen coordination, bridges
and promote mobility for researchers. The EU spends relatively less on research in
comparison to the USA and Japan.
• Environmental policy
Has four objectives: preserve environment, protect human health, using natural resources
and combatting climate change. By 2030 the EU aims for a 27% energy efficiency increase
from 1990 levels, 27% renewable energy and 40% reduction in emissions. Implementing
environmental laws has been difficult because of mass capital expenditure required and
different starting points of member states.
• Sectoral policies
Common Agricultural Policy (CAP, ch21)
Common Fisheries Policy – EU’s fishing zone is open to all EU fishermen, conservation of
fishery with national quotas, structural measures, and external negotiations. The main
problems are depleted fish stocks and pressure from the fishing industry on ministers.
Shipbuilding – there are problems with over-capacity, but goals are to enhance productivity
and most policy instruments are funds and rules on state aid.
