The euro is the official currency of 19 of the 28 member states of the European Union. This group of states is known as the eurozone or euro area, counts about 343 million citizens as of 2019; the euro is the second largest and second most traded currency in the foreign exchange market after the United States dollar. The euro is subdivided into 100 cents; the currency is used by the institutions of the European Union, by four European microstates that are not EU members, as well as unilaterally by Montenegro and Kosovo. Outside Europe, a number of special territories of EU members use the euro as their currency. Additionally, 240 million people worldwide as of 2018 use currencies pegged to the euro; the euro is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar. As of August 2018, with more than €1.2 trillion in circulation, the euro has one of the highest combined values of banknotes and coins in circulation in the world, having surpassed the U.
S. dollar. The name euro was adopted on 16 December 1995 in Madrid; the euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit at a ratio of 1:1. Physical euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day operating currency of its original members, by March 2002 it had replaced the former currencies. While the euro dropped subsequently to US$0.83 within two years, it has traded above the U. S. dollar since the end of 2002, peaking at US$1.60 on 18 July 2008. In late 2009, the euro became immersed in the European sovereign-debt crisis, which led to the creation of the European Financial Stability Facility as well as other reforms aimed at stabilising and strengthening the currency; the euro is managed and administered by the Frankfurt-based European Central Bank and the Eurosystem. As an independent central bank, the ECB has sole authority to set monetary policy; the Eurosystem participates in the printing and distribution of notes and coins in all member states, the operation of the eurozone payment systems.
The 1992 Maastricht Treaty obliges most EU member states to adopt the euro upon meeting certain monetary and budgetary convergence criteria, although not all states have done so. The United Kingdom and Denmark negotiated exemptions, while Sweden turned down the euro in a 2003 referendum, has circumvented the obligation to adopt the euro by not meeting the monetary and budgetary requirements. All nations that have joined the EU since 1993 have pledged to adopt the euro in due course. Since 1 January 2002, the national central banks and the ECB have issued euro banknotes on a joint basis. Euro banknotes do not show. Eurosystem NCBs are required to accept euro banknotes put into circulation by other Eurosystem members and these banknotes are not repatriated; the ECB issues 8% of the total value of banknotes issued by the Eurosystem. In practice, the ECB's banknotes are put into circulation by the NCBs, thereby incurring matching liabilities vis-à-vis the ECB; these liabilities carry interest at the main refinancing rate of the ECB.
The other 92% of euro banknotes are issued by the NCBs in proportion to their respective shares of the ECB capital key, calculated using national share of European Union population and national share of EU GDP weighted. The euro is divided into 100 cents. In Community legislative acts the plural forms of euro and cent are spelled without the s, notwithstanding normal English usage. Otherwise, normal English plurals are sometimes used, with many local variations such as centime in France. All circulating coins have a common side showing the denomination or value, a map in the background. Due to the linguistic plurality in the European Union, the Latin alphabet version of euro is used and Arabic numerals. For the denominations except the 1-, 2- and 5-cent coins, the map only showed the 15 member states which were members when the euro was introduced. Beginning in 2007 or 2008 the old map is being replaced by a map of Europe showing countries outside the Union like Norway, Belarus, Russia or Turkey.
The 1-, 2- and 5-cent coins, keep their old design, showing a geographical map of Europe with the 15 member states of 2002 raised somewhat above the rest of the map. All common sides were designed by Luc Luycx; the coins have a national side showing an image chosen by the country that issued the coin. Euro coins from any member state may be used in any nation that has adopted the euro; the coins are issued in denominations of €2, €1, 50c, 20c, 10c, 5c, 2c, 1c. To avoid the use of the two smallest coins, some cash transactions are rounded to the nearest five cents in the Netherlands and Ireland and in Finland; this practice is discouraged by the Commission, as is the practice of certain shops of refusing to accept high-value euro notes. Commemorative coins with €2 face value have been issued with changes to the design of the national side of the coin; these include both issued coins, such as the €2 commemorative coin for the fiftieth anniversary of the signing of the Treaty of Rome, nationally i
European Central Bank
The European Central Bank is the central bank for the euro and administers monetary policy within the Eurozone, which comprises 19 member states of the European Union and is one of the largest monetary areas in the world. Established by the Treaty of Amsterdam, the ECB is one of the world's most important central banks and serves as one of seven institutions of the European Union, being enshrined in the Treaty on European Union; the bank's capital stock is owned by all 28 central banks of each EU member state. The current President of the ECB is Mario Draghi. Headquartered in Frankfurt, the bank occupied the Eurotower prior to the construction of its new seat; the primary objective of the ECB, mandated in Article 2 of the Statute of the ECB, is to maintain price stability within the Eurozone. Its basic tasks, set out in Article 3 of the Statute, are to set and implement the monetary policy for the Eurozone, to conduct foreign exchange operations, to take care of the foreign reserves of the European System of Central Banks and operation of the financial market infrastructure under the TARGET2 payments system and the technical platform for settlement of securities in Europe.
The ECB has, under Article 16 of its Statute, the exclusive right to authorise the issuance of euro banknotes. Member states can issue euro coins; the ECB is governed by European law directly, but its set-up resembles that of a corporation in the sense that the ECB has shareholders and stock capital. Its capital is €11 billion held by the national central banks of the member states as shareholders; the initial capital allocation key was determined in 1998 on the basis of the states' population and GDP, but the capital key has been adjusted. Shares in the ECB can not be used as collateral; the European Central Bank is the de facto successor of the European Monetary Institute. The EMI was established at the start of the second stage of the EU's Economic and Monetary Union to handle the transitional issues of states adopting the euro and prepare for the creation of the ECB and European System of Central Banks; the EMI itself took over from the earlier European Monetary Co-operation Fund. The ECB formally replaced the EMI on 1 June 1998 by virtue of the Treaty on European Union, however it did not exercise its full powers until the introduction of the euro on 1 January 1999, signalling the third stage of EMU.
The bank was the final institution needed for EMU, as outlined by the EMU reports of Pierre Werner and President Jacques Delors. It was established on 1 June 1998; the first President of the Bank was Wim Duisenberg, the former president of the Dutch central bank and the European Monetary Institute. While Duisenberg had been the head of the EMI just before the ECB came into existence, the French government wanted Jean-Claude Trichet, former head of the French central bank, to be the ECB's first president; the French argued. This was opposed by the German and Belgian governments who saw Duisenberg as a guarantor of a strong euro. Tensions were abated by a gentleman's agreement in which Duisenberg would stand down before the end of his mandate, to be replaced by Trichet. Trichet replaced Duisenberg as President in November 2003. There had been tension over the ECB's Executive Board, with the United Kingdom demanding a seat though it had not joined the Single Currency. Under pressure from France, three seats were assigned to the largest members, France and Italy.
Despite such a system of appointment the board asserted its independence early on in resisting calls for interest rates and future candidates to it. When the ECB was created, it covered a Eurozone of eleven members. Since Greece joined in January 2001, Slovenia in January 2007, Cyprus and Malta in January 2008, Slovakia in January 2009, Estonia in January 2011, Latvia in January 2014 and Lithuania in January 2015, enlarging the bank's scope and the membership of its Governing Council. On 1 December 2009, the Treaty of Lisbon entered into force, ECB according to the article 13 of TEU, gained official status of an EU institution. In September 2011, when German appointee to the Governing Council and Executive board, Jürgen Stark, resigned in protest of the ECB's "Securities Market Programme" which involved the purchase of sovereign bonds by the ECB, a move, up until considered as prohibited by the EU Treaty; the Financial Times Deutschland referred to this episode as "the end of the ECB as we know it" referring to its perceived "hawkish" stance on inflation and its historical Bundesbank influence.
On 1 November 2011, Mario Draghi replaced Jean-Claude Trichet as President of the ECB. In April 2011, the ECB raised interest rates for the first time since 2008 from 1% to 1.25%, with a further increase to 1.50% in July 2011. However, in 2012–2013 the ECB lowered interest rates to encourage economic growth, reaching the low 0.25% in November 2013. Soon after the rates were cut to 0.15% on 4 September 2014 the central bank reduced the rates by two thirds from 0.15% to 0.05%, the lowest rates on record. In November 2014, the bank moved into its new premises; the primary objective of the European Central Bank, set out in Article 127 of the Treaty on the Functioning of the European Union, is to maintain price stability within the Eurozone. The Governing Council in October 1998 defined price stability as inflation of under 2%, “a year-on-year increase in the Harmonised Index of Consumer Prices for the euro area of below 2
Treaty of Lisbon
The Treaty of Lisbon is an international agreement that amends the two treaties which form the constitutional basis of the European Union. The Treaty of Lisbon was signed by the EU member states on 13 December 2007, entered into force on 1 December 2009, it amends the Maastricht Treaty, known in updated form as the Treaty on European Union or TEU, the Treaty of Rome, known in updated form as the Treaty on the Functioning of the European Union or TFEU. It amends the attached treaty protocols as well as the Treaty establishing the European Atomic Energy Community. Prominent changes included the move from unanimity to qualified majority voting in at least 45 policy areas in the Council of Ministers, a change in calculating such a majority to a new double majority, a more powerful European Parliament forming a bicameral legislature alongside the Council of Ministers under the ordinary legislative procedure, a consolidated legal personality for the EU and the creation of a long-term President of the European Council and a High Representative of the Union for Foreign Affairs and Security Policy.
The Treaty made the Union's bill of rights, the Charter of Fundamental Rights binding. The Treaty for the first time gave member states the explicit legal right to leave the EU, established a procedure by which to do so; the stated aim of the treaty was to "complete the process started by the Treaty of Amsterdam and by the Treaty of Nice with a view to enhancing the efficiency and democratic legitimacy of the Union and to improving the coherence of its action". Opponents of the Treaty of Lisbon, such as former Danish Member of the European Parliament Jens-Peter Bonde, argued that it would centralize the EU, weaken democracy by "moving power away" from national electorates. Supporters argue that it brings more checks and balances into the EU system, with stronger powers for the European Parliament and a new role for national parliaments. Negotiations to modify EU institutions began in 2001, resulting first in the Treaty establishing a Constitution for Europe, which would have repealed the existing European treaties and replaced them with a "constitution".
Although ratified by a majority of member states, this was abandoned after being rejected by 54% of French voters on 29 May 2005 and by 61% of Dutch voters on 1 June 2005. After a "period of reflection", member states agreed instead to maintain the existing treaties, but to amend them, salvaging a number of the reforms, envisaged in the constitution. An amending "reform" treaty was drawn up and signed in Lisbon in 2007, it was intended to have been ratified by all member states by the end of 2008. This timetable failed due to the initial rejection of the Treaty in June 2008 by the Irish electorate, a decision, reversed in a second referendum in October 2009 after Ireland secured a number of concessions related to the treaty; the need to review the EU's constitutional framework in light of the accession of ten new Member States in 2004, was highlighted in a declaration annexed to the Treaty of Nice in 2001. The agreements at Nice had paved the way for further enlargement of the Union by reforming voting procedures.
The Laeken declaration of December 2001 committed the EU to improving democracy and efficiency, set out the process by which a constitution aiming to achieve these goals could be created. The European Convention was established, presided over by former French President Valéry Giscard d'Estaing, was given the task of consulting as as possible across Europe with the aim of producing a first draft of the Constitution; the final text of the proposed Constitution was agreed upon at the summit meeting on 18–19 June 2004 under the presidency of Ireland. The Constitution, having been agreed by heads of government from the 25 Member States, was signed at a ceremony in Rome on 29 October 2004. Before it could enter into force, however, it had to be ratified by each member state. Ratification took different forms in each country, depending on the traditions, constitutional arrangements, political processes of each country. In 2005, referendums held in France and the Netherlands rejected the European Constitution.
While the majority of the Member States had ratified the European Constitution, due to the requirement of unanimity to amend the treaties of the EU, it became clear that it could not enter into force. This led to a "period of reflection" and the political end of the proposed European Constitution. In 2007, Germany declared the period of reflection over. By March, the 50th anniversary of the Treaties of Rome, the Berlin Declaration was adopted by all Member States; this declaration outlined the intention of all Member States to agree on a new treaty in time for the 2009 Parliamentary elections, to have a ratified treaty before mid-2009. Before the Berlin Declaration, the Amato Group – a group of European politicians, backed by the Barroso Commission with two representatives in the group – worked unofficially on rewriting the Treaty establishing a Constitution for Europe. On 4 June 2007, the group released their text in French – cut from 63,000 words in 448 articles in the Treaty establishing a Constitution for Europe to 12,800 words in 70 articles.
In the Berlin Declaration, the EU leaders unofficially set a new timeline for the new treaty: 21–23 June 2007: European Council meeting in Brussels, mandate for Intergovernmental Conference 23 July 2007: IGC in Lisbon, text of Reform
History of the euro
The euro came into existence on 1 January 1999, although it had been a goal of the European Union and its predecessors since the 1960s. After tough negotiations due to opposition from the United Kingdom, the Maastricht Treaty entered into force in 1993 with the goal of creating an economic and monetary union by 1999 for all EU states except the UK and Denmark; the currency was formed in 1999. It took over from the former national currencies and expanded behind the rest of the EU. In 2009, the Lisbon Treaty finalised its political authority, the Eurogroup, alongside the European Central Bank. First ideas of an economic and monetary union in Europe were raised well before establishing the European Communities. For example in the League of Nations, Gustav Stresemann asked in 1929 for a European currency against the background of an increased economic division due to a number of new nation states in Europe after World War I. At this time memories of the Latin Monetary Union involving principally France, Italy and Switzerland and which, for practical purposes, had disintegrated following the First World War, figured prominently in the minds of policy makers.
A first attempt to create an economic and monetary union between the members of the European Economic Community arrived with an initiative by the European Commission in 1969, which set out the need for "greater co-ordination of economic policies and monetary cooperation." This was followed up at a meeting of the European Council at The Hague in December 1969. The European Council tasked Pierre Werner, Prime Minister of Luxembourg, with finding a way to reduce currency exchange rate volatility, his report was published in October 1970 and recommended centralisation of the national macroeconomic policies entailing "the total and irreversible fixing of parity rates and the complete liberation of movements of capital." But he did not propose central bank. An attempt to limit the fluctuations of European currencies, using a snake in the tunnel, failed. In 1971, US President Richard Nixon removed the gold backing from the US dollar, causing a collapse in the Bretton Woods system that managed to affect all of the world's major currencies.
The widespread currency floats and devaluations set back aspirations for European monetary union. However, in March 1979 the European Monetary System was created, fixing exchange rates onto the European Currency Unit, an accounting currency, to stabilise exchange rates and counter inflation, it created the European Monetary Cooperation Fund. In February 1986, the Single European Act formalised political co-operation within the EEC, including competency in monetary policy; the European Council summit in Hannover on 14 June 1988 began to outline monetary co-operation. France and European Commission backed a monetary union with a central bank, which British Prime Minister Margaret Thatcher opposed; the Hannover European Council asked Commission President Jacques Delors to chair an ad hoc committee of central bank governors to propose a new timetable with clear and realistic steps for creating an economic and monetary union. This way of working was derived from the Spaak method. France and the UK were opposed to German reunification, attempted to influence the Soviet Union to stop it.
However, in late 1989 France extracted German commitment to the Monetary Union in return for support for German reunification. The Delors report of 1989 set out a plan to introduce the EMU in three stages and it included the creation of institutions such as the European System of Central Banks, which would become responsible for formulating and implementing monetary policy, it laid out monetary union being accomplished in three steps. Beginning the first of these steps, on 1 July 1990, exchange controls were abolished, thus capital movements were liberalised in the European Economic Community. Leaders reached agreement on currency union with the Maastricht Treaty, signed on 7 February 1992, it agreed to create a single currency, although without the participation of the United Kingdom, by January 1999. Gaining approval for the treaty was a challenge. Germany was cautious about giving up its stable currency, i.e. the German Mark, France approved the treaty by a narrow margin and Denmark refused to ratify until they got such an opt-out from monetary union as the United Kingdom, an opt-out that they maintain as of 2019.
On 16 September 1992, known in the UK as Black Wednesday, the British pound sterling was forced to withdraw from the fixed exchange rate system due to a rapid fall in the value of the pound. Delors' second stage began in 1994 with creation of the European Monetary Institute, succeeding the EMCF, under Maastricht, it was created as the forerunner to the European Central Bank. It met for the first time on 12 January under Alexandre Lamfalussy. After much disagreement, in December 1995 the name euro was adopted for the new currency, on the suggestion of then-German finance minister Theo Waigel, they agreed on the date 1 January 1999 for its launch. On 17 June 1997 the European Council decided in Amsterdam to adopt the Stability and Growth Pact, designed to ensure budgetary discipline after creation of the euro, a new exchange rate mechanism was set up to provide stability above the euro and the national currencies of countries that hadn't yet entered the eurozone. On 3 May 1998, at the European Council in Brussels, the 11 initial countries that would participate in the third stage from 1 January 1999 were selected.
To participate in the new currency
Frankfurt is a metropolis and the largest city of the German federal state of Hesse, its 746,878 inhabitants make it the fifth-largest city of Germany after Berlin, Hamburg and Cologne. On the River Main, it forms a continuous conurbation with the neighbouring city of Offenbach am Main, its urban area has a population of 2.3 million. The city is at the centre of the larger Rhine-Main Metropolitan Region, which has a population of 5.5 million and is Germany's second-largest metropolitan region after the Rhine-Ruhr Region. Since the enlargement of the European Union in 2013, the geographic centre of the EU is about 40 km to the east of Frankfurt's central business district. Like France and Franconia, the city is named after the Franks. Frankfurt is the largest city in the Rhine Franconian dialect area. Frankfurt was a city state, the Free City of Frankfurt, for nearly five centuries, was one of the most important cities of the Holy Roman Empire, as a site of imperial coronations, it has been part of the federal state of Hesse since 1945.
A quarter of the population are foreign nationals, including many expatriates. Frankfurt is an alpha world city and a global hub for commerce, education and transportation, it is the site of many European corporate headquarters. Frankfurt Airport is among the world's busiest. Frankfurt is the major financial centre of the European continent, with the headquarters of the European Central Bank, Deutsche Bundesbank, Frankfurt Stock Exchange, Deutsche Bank, DZ Bank, KfW, several cloud and fintech startups and other institutes. Automotive and research, consulting and creative industries complement the economic base. Frankfurt's DE-CIX is the world's largest internet exchange point. Messe Frankfurt is one of the world's largest trade fairs. Major fairs include the Frankfurt Motor Show, the world's largest motor show, the Music Fair, the Frankfurt Book Fair, the world's largest book fair. Frankfurt is home to influential educational institutions, including the Goethe University, the UAS, the FUMPA, graduate schools like the Frankfurt School of Finance & Management.
Its renowned cultural venues include the concert hall Alte Oper, Europe's largest English theatre and many museums. Frankfurt's skyline is shaped by some of Europe's tallest skyscrapers; the city is characterised by various green areas and parks, including the central Wallanlagen, the City Forest and two major botanical gardens, the Palmengarten and the University's Botanical Garden. Important is the Frankfurt Zoo. In electronic music, Frankfurt has been a pioneering city since the 1980s, with renowned DJs including Sven Väth, Marc Trauner, Scot Project, Kai Tracid, the clubs Dorian Gray, U60311, Omen and Cocoon. In sports, the city is known as the home of the top tier football club Eintracht Frankfurt, the Löwen Frankfurt ice hockey team, the basketball club Frankfurt Skyliners, the Frankfurt Marathon and the venue of Ironman Germany. Frankfurt is the largest financial centre in continental Europe, it is home to the European Central Bank, Deutsche Bundesbank, Frankfurt Stock Exchange and several large commercial banks.
The Frankfurt Stock Exchange is one of the world's largest stock exchanges by market capitalization and accounts for more than 90 percent of the turnover in the German market. In 2010, 63 national and 152 international banks had their registered offices in Frankfurt, including Germany's major banks, notably Deutsche Bank, DZ Bank, KfW and Commerzbank, as well as 41 representative offices of international banks. Frankfurt is considered a global city. Among global cities it was ranked 10th by the Global Power City Index 2011 and 11th by the Global City Competitiveness Index 2012. Among financial centres it was ranked 8th by the International Financial Centers Development Index 2013 and 9th by the Global Financial Centres Index 2013, its central location within Germany and Europe makes Frankfurt a major air and road transport hub. Frankfurt Airport is one of the world's busiest international airports by passenger traffic and the main hub for Germany's flag carrier Lufthansa. Frankfurt Central Station is one of the largest rail stations in Europe and the busiest junction operated by Deutsche Bahn, the German national railway company, with 342 trains a day to domestic and European destinations.
Frankfurter Kreuz, the Autobahn interchange close to the airport, is the most used interchange in the EU, used by 320,000 cars daily. In 2011 human-resource-consulting firm Mercer ranked Frankfurt as seventh in its annual'Quality of Living' survey of cities around the world. According to The Economist cost-of-living survey, Frankfurt is Germany's most expensive city and the world's 10th most expensive. Frankfurt has many high-rise buildings in the city centre, forming the Frankfurt skyline, it is one of the few cities in the European Union to have such a skyline and because of it Germans sometimes refer to Frankfurt as Mainhattan, a portmanteau of the local Main River and Manhattan. The other well known and obvious nickname is Bankfurt. Before World War II the city was globally noted for its unique old town with timber-framed buildings, the largest timber-framed old town in Europe; the Römer area was rebuilt and is popular with visitors and for eve
History of the Common Security and Defence Policy
This article outlines the history of the Common Security and Defence Policy of the European Union, a part of the Common Foreign and Security Policy. The post-war period saw several short-lived or ill-fated initiatives for European defence integration intended to protect against potential Soviet or German aggression: The Western Union and the proposed European Defence Community were cannibalised by the North Atlantic Treaty Organisation and rejected by the French Parliament; the dormant Western European Union succeeded the Western Union's remainder in 1954. In 1970 the European Political Cooperation brought about the European Communities' initial foreign policy coordination, which in turn was replaced by the newly founded EU's CFSP pillar in 1993; the WEU was reactivated in 1984 and given new tasks, in 1996 NATO agreed to let it develop a European Security and Defence Identity. The 1998 St. Malo declaration signalled that the traditionally hesitant United Kingdom was prepared to provide the EU with autonomous defence structures.
This facilitated the transformation of the ESDI into the European Security and Defence Policy in 1999, when it was transferred to the EU. In 2003 the EU deployed its first CSDP missions, adopted the European Security Strategy identifying common threats and objectives. In 2009, the Treaty of Lisbon introduced the present name, CSDP, while establishing the EEAS, the mutual defence clause and enabling a subset of member states to pursue defence integration within PESCO. In 2011 the WEU, whose tasks had been transferred to the EU, was dissolved. In 2016 a new security strategy was introduced, which along with the Russian annexation of Crimea, the scheduled British withdrawal from the EU and the election of Trump as US President have given the CSDP a new impetus. On 4 March 1947 France and the United Kingdom signed the Treaty of Dunkirk for mutual assistance in the event of a possible German or Soviet attack in the aftermath of World War II; the treaty entered into force on 8 September 1947. In March 1948 the Treaty of Dunkirk was in essence succeeded by Article 4 of the Treaty of Brussels, to which the Benelux countries were party.
In September the same year the Western Union was established to implement the Treaty of Brussels, with an allied European command structure under British Field Marshal Montgomery. The military arm of the WU was referred to as the Western Union Defence Organisation; when the division of Europe into two opposing camps became considered unavoidable, the threat of the USSR became much more important than the threat of German rearmament. Western Europe, sought a new mutual defence pact involving the United States, a powerful military force for such an alliance; the United States, concerned with containing the influence of the USSR, was responsive. Secret meetings began by the end of March 1949 between American and British officials to initiate the negotiations that led to the signing of the North Atlantic Treaty on 4 April 1949 in Washington, DC; the need to back up the commitments of the North Atlantic Treaty with appropriate political and military structures led to the creation of the North Atlantic Treaty Organisation.
In December 1950, with the appointment of General Eisenhower as the first Supreme Allied Commander Europe, the members of the Treaty of Brussels decided to transfer the headquarters and plans of the Western Union Military Organisation to NATO. NATO's Supreme Headquarters Allied Powers Europe took over responsibility for the defence of Western Europe, while the physical headquarters in Fontainebleau were transformed into NATO's Headquarters, Allied Forces Central Europe; as WUDO's capacities were transferred to NATO's SHAPE, Field Marshal Bernard Montgomery resigned as Commanders-in-Chief Committee Chairman on 31 March 1951 and took the position of deputy Supreme Allied Commander Europe on 1 April 1951. The establishment of NATO, along with the signing of a succession of treaties establishing the Organisation for European Economic Cooperation, the North Atlantic Treaty Organisation, the Council of Europe and the European Coal and Steel Community, left the Western Union and its founding Treaty of Brussels was left devoid of much of its authority.
Since the end of World War II, West Germany had been occupied by Allied forces and lacked its own means of defense. On 23 July 1952, the European Coal and Steel Community came into existence, bonding the member states economically. By 1951, fear of possible Soviet aggression in Europe, as well as the Pleven plan, proposed in 1950 by French Prime Minister René Pleven in response to the American call for the rearmament of West Germany, led France, West Germany and the Benelux – the Inner six of European integration – to propose a scheme, similar in nature to the ECSC but concerned defence; the EDC would have consisted of a pan-European military divided into national components, with a common budget, common institutions, common arms and centralised procurement. At the time, this was favoured over admitting Germany to NATO; the General Treaty of 1952 formally named the EDC as a prerequisite of the end of Allied occupation of Germany. The EDC founding treaty did not enter into force, however, as it failed to obtain approval for ratification on 30 August 1954 in the French National Assembly where Gaullists feared for national sovereignty and Communists opposed a European military consolidation that could rival the Soviet Union.
The failure to establish the EDC resulted in the 1954 amendment of the Treaty of Brussels at the London and Paris Conferences which in replacement of
European Atomic Energy Community
The European Atomic Energy Community is an international organisation established by the Euratom Treaty on 25 March 1957 with the original purpose of creating a specialist market for nuclear power in Europe, by developing nuclear energy and distributing it to its member states while selling the surplus to non-member states. However, over the years its scope has been increased to cover a large variety of areas associated with nuclear power and ionising radiation as diverse as safeguarding of nuclear materials, radiation protection and construction of the International Fusion Reactor ITER, it is distinct from the European Union, but has the same membership, is governed by many of the EU's institutions but is the only remaining community organization, independent from the European Union and therefore outside the regulatory control of the European Parliament. Since 2014, Switzerland has participated in Euratom programmes as an associated state; the Common Assembly proposed extending the powers of the European Coal and Steel Community to cover other sources of energy.
However, Jean Monnet, ECSC architect and President, wanted a separate community to cover nuclear power. Louis Armand was put in charge of a study into the prospects of nuclear energy use in Europe. However, the Benelux states and Germany were keen on creating a general single market, although it was opposed by France due to its protectionism, Jean Monnet thought it too large and difficult a task. In the end, Monnet proposed the creation of separate atomic energy and economic communities to reconcile both groups; the Intergovernmental Conference on the Common Market and Euratom at Val Duchesse in 1956 drew up the essentials of the new treaties. Euratom would foster co-operation in the nuclear field, at the time a popular area, would, along with the EEC, share the Common Assembly and Court of Justice of the ECSC, but not its executives. Euratom would have its own Council and Commission, with fewer powers than the High Authority of the European Coal and Steel Community. On 25 March 1957, the Treaties of Rome were signed by the ECSC members and on 1 January 1958 they came into force.
To save on resources, these separate executives created by the Rome Treaties were merged in 1965 by the Merger Treaty. The institutions of the EEC would take over responsibilities for the running of the EEC and Euratom, with all three becoming known as the European Communities if each existed separately. In 1993, the Maastricht Treaty created the European Union, which absorbed the Communities into the European Community pillar, yet Euratom still maintained a distinct legal personality; the European Constitution was intended to consolidate all previous treaties and increase democratic accountability in them. The Euratom treaty had not been amended as the other treaties had, so the European Parliament had been granted few powers over it. However, the reason it had gone unamended was the same reason the Constitution left it to remain separate from the rest of the EU: anti-nuclear sentiment among the European electorate, which may unnecessarily turn voters against the treaty; the Euratom treaty thus remains in force unamended from its original signing.
This overall timeline includes the establishment and development of Euratom, shows that it is the only former EC body that has not been incorporated into the EU. Since 2014, Switzerland has participated in Euratom programmes as an associated state; as of 2018, the community had Co-operation Agreements of various scopes with nine countries: Armenia, Canada, Kazakhstan, United States and South Africa. The United Kingdom announced its intention to withdraw from the EAEC on 26 January 2017, following on from its decision to withdraw from the European Union. Formal notice to withdraw from the EAEC was provided in March 2017, within the Article 50 notification letter, where the withdrawal was made explicit. Withdrawal will only become effective following negotiations on the terms of the exit, which are scheduled to last two years. A report by the House of Commons Business and Industrial Strategy Committee, published in May 2017, questioned the legal necessity of leaving Euratom and called for a temporary extension of membership to allow time for new arrangements to be made.
In June 2017, the European Commission's negotiations task force published a Position paper transmitted to EU27 on nuclear materials and safeguard equipment, titled "Essential Principles on nuclear materials and safeguard equipment". The following month, a briefing paper from the House of Commons Library assessed the implications of leaving Euratom. If the UK withdraws, it might raise the question of UK nuclear fuel availability after 2019 and the need for new treaties relating to the transportation of nuclear materials. UK politicians have speculated; some argue that this would require – beyond the consent of the EU27 – amendment or revocation of the Article 50 letter of March 2017. The Nuclear Safeguards Act 2018, making provision for safeguards after withdrawal from Euratom, received royal assent on 26 June 2018. In the history of European regulation, Article 37 of the Euratom Treaty represents pioneering legislation concerning binding transfrontier obligations with respect to environmental impact and protection of humans.
The five member Commission was led by only three presidents while it had independent executives, all from France: Louis Armand 1958–1959 – Armand Commission Étienne Hirsch 1959–1962 – H