Eurocrisis

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Table of Contents
Introduction2
I. European integration pre-crisis2
Paris Treaty2
Rome Treaty3
Maastricht Treaty3
The European Integration through a Single Currency4
TRANSITIONAL STAGE 1999-2001 : Official launch of the EURO4
II. The Euro-crisis5
The EURO Crisis: Timeline of the Events5
2001-20085
20095
20105
20116
20127
The EURO Crisis: The result of a failed European Integration.7
III. Redefinition of the European Integration9
Addressing the Crisis through remedies9
New rules for integrating new countries9
Conclusion10
Bibliography11
Newspaper articles (online/electronic article)11
Books12

Introduction

The obvious answer is that yes, the euro-crisis has had an impact on the European integration process, making it more difficult for new countries to access to the EU. It is the European integration of the previous years that has in fact led to the current European crisis and as a result, the European integration would have to be redefined so as not to fall into the same traps of past years. (More stringent rules of accession to the EU, such as stricter public deficit limits, more powers of sanctions from the EU commission to member states etc…). We will explore in a first part how the European integration was conceived and orchestrated pre-crisis, the rules of accession established by the different treaties, as well as the single currency process, then we will go through a brief outline of the crisis as well as the reasons of the whole crisis we are in, to finally address the problem and attempt a redefinition of the European integration process.

Despite an intricate and developed model of regional integration as well as the will from European leaders to lead a united front towards European integration, the EU integration model did present its flaws and showed its weaknesses leading to the current EURO crisis… let us now begin by looking at the European integration process pre-crisis.

I. European integration pre-crisis
Paris Treaty
The promotion of European unity has been around for 60 years now. The critical first steps towards European integration were taken into practice after World War 2 in 1950 when the first aim was to bring together Europe’s national coal and steel industries under the administration of a single joint treaty. This treaty the Treaty of Paris was founded in 1952 and included six member states, France, West Germany, Italy and three Benelux countries. They united together with three priorities; “postwar economic construction, the desire to prevent European nationalism leading once again to conflict, and the need for security in the face of threats posed by the cold war.” (McCormick, J. 2011) Rome Treaty

Europe has progressed significantly since the first step towards integration and the European union is one of the most developed models of regional integration. Over the past 60 years the establishment of treaties have enabled Europe to be a more integrated market (McCormick, J.2011). Following the treaty of Paris the Treaty of Rome was established which created a free market with the removal of internal barriers and the agreed external tariff rate. Monopoly power decreased leaving businesses to be more competitive, a common agriculture policy was agreed upon to ensure stable prices and a competitive market. Maastricht Treaty

The Maastricht treaty was signed in 1992 having significant impacts on the contracts of the member states of the EU as it was designed “ to achieve ‘an even closer union among the peoples of Europe where decisions are taken as closely as possible to citizens.’” Three pillars were created to be able to achieve these objectives. The first pillar formalized the community’s commitment to what already happened in practice in the European community as well as covering the economic and monetary union (McCormick, J.2011). The second established common foreign and security policy and the third pillar...
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