International Handbook on the Economics of Integration, Volume I
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International Handbook on the Economics of Integration, Volume I

General Issues and Regional Groups

Edited by Miroslav N. Jovanović

With this Handbook, Miroslav Jovanović has provided readers with both an excellent stand-alone original reference book as well as the first volume in a comprehensive three-volume set. This introduction into a rich and expanding academic and practical world of international economic integration also provides a theoretical and analytical framework to the reader, presenting select analytical studies and encouraging further research.
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Chapter 13: EU Policies and Policy-making

Phedon Nicolaides


Phedon Nicolaides 1 INTRODUCTION Multilateral integration on the continent of Europe started in earnest with the establishment of the European Coal and Steel Community in 1952. Then came the European Economic Community and the European Atomic Energy Community, both of which were set up in 1958. These three ‘Communities’ became the ‘first pillar’ of the European Union (EU) when it was created in 1993. The EU had two other pillars. The second pillar was formed by the internal foreign and security policy and an internal defence policy. The third pillar comprised police and judicial cooperation in criminal matters. This pillar structure has been eliminated by the Treaty of Lisbon which came into force on 1 December 2009. As a result, the European Economic Community (EEC) which later became the European Community (EC) has been absorbed into the European Union. Formally, only the Union exists and it is based on two treaties: the Treaty on the European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU). This chapter examines only policies and policy-making issues that fell within the scope of the EC. In practice that means all policies except foreign relations, defence and judicial cooperation. The EC began with six founding member states. After six enlargements and several institutional changes it has been transformed into the European Union, which now comprises 27 countries with a total population of 500 million and a combined GDP of about €14,960 billion (2008) making it the largest economy in the...

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