European Union
Describe how the EU is governed, i.e., its institutions
The European Union (EU) is a unique cooperation of 27 states which is in the form of economic and political partnership. This came as a result of a series of treaties and commitment of member states in integration through the harmonization of laws and adoption of common policies on quite a number of issues. The sovereignty of the member states have been pooled in most economic and social issues and the quality of decision making is supranational. Decision making with regard to some areas such as foreign policy necessitate consensus of the member states. There are common institutions that are used in the setting and promotion of the collective interests of the EU, a total of seven institutions have been set up for this, including: European Commission, Council of the European Union (Council of Ministers), European Parliament, European Council, Court of Auditors, Court of Justice, and European Central Bank (Hoskyns and Michael, 2000).
The common interest of the Union is upheld by the European Commission and it acts as the EU's executive. This commission is responsible for the implementation and management of the decisions and common policies of the union, and ensuring that the provisions of EU treaties, regulations, and directives are adhered to by the member states. This commission comprises 27 commissioners from each member state who are appointed through an agreement for a term lasting five years. International representation and negotiations are handled by this commission on behalf of the EU. This commission is also viewed as the primary administrative unit of the EU. On the other hand, the Council of the European Union is a representation of the 27 national governments. Enactment of legislation is carried out by this council following the recommendations of the commission and in most cases must be agreed to by the European parliament. The participants of the meetings of this council comprise ministers from each country, the subject to be discussed dictates which ministers should attend. Whereas some decisions can be made through a complex qualified majority voting system, other sensitive areas such as amendment of EU treaties, or accepting new members must be unanimously agreed on (Hoskyns and Michael, 2000).
The citizens of the EU are represented by the European Parliament whose composition is 736 members who are directly elected to serve for a period of five years. The numbers of seats are proportionately divided among the member states with regard to the size of population. Even though initiation of legislations can not be done by the European Parliament, the legislative power is shared between the Council of the European Union and the European Parliament in a number of policy areas. This shared power gives the European Parliament right to accept, amend, or reject most of the proposed EU legislation in a process referred to as "co-decision." The European Council which is made up of Heads of State or Government of the member states, its President, and the President of the European Commission, have their meetings at least four times per year. The EU policy is guided and driven by this council. The EU laws are interpreted by the Court of Justice and it also makes rulings that are binding, while the Court of Auditors keeps an eye on the financial management of the EU. The last institution which is the European Central Bank has the responsibility of managing the euro and EU monetary policy (Hoskyns and Michael, 2000). These institutions are supported by various advisory committees.
2. What is working well in the EU? What isn't, and why?
The formation of the EU has had some successes including the introduction of the common currency and a central banking system. This has been helpful in bringing up and saving economies that are under certain constraints. This has also created a wider market for the member states and a better bargaining power in both economic and political issues. However, there have been certain challenges such as the opposition of the introduction of the common currency in some countries such as Germany. The weaker economies have also suffered from the introduction of the common currency with their debt burden increasing yearly.
3. Describe the transition to the Euro. Has the common currency been a success? In your answers to 2 and 3, also address the ongoing Euro zone debt crisis.
The introduction of the Euro as the common currency followed a three-stage plan. The first stage was the abolition of all restrictions on capital movement between member states on July 1, 1990. It is at this stage...
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