Profile: The European Union

The European Union, or EU, describes itself as a family of democratic European countries, committed to working together for peace and prosperity.

The organisation oversees co-operation among its members in diverse areas, including trade, the environment, transport and employment.

EU promotes economic, political integration of Europe through: A common currency Freedom of movement between member states Trading market without frontiers Enlargement Development of common foreign, security policy

On 1 May 2004 the EU took in 10 new members, most of them former communist countries, in a huge step along the road towards dismantling the post-World War II division of Europe.

The new joiners were the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.

However, plans to introduce a constitution - intended to ensure the smooth running of the enlarged EU - faltered in 2005 after they were rejected by voters in two founding nations, France and the Netherlands.

A reform treaty hammered out to replace the failed constitution was held up by a "no" vote in an Irish referendum in June 2008. Ireland subsequently approved the Lisbon treaty at a second referendum in October 2009, and the process of ratification was completed when the Czech Republic signed the treaty a month later.

History

Over half a century earlier, it was the devastation caused in Europe by World War II which underlay the imperative to build international relationships to guard against any such catastrophe recurring.

EU single currency, the euro, became legal tender in 2002

French statesmen Jean Monnet and Robert Schuman are regarded as the architects of the principle that the best way to start the European bonding process was by developing economic ties.

This philosophy was the foundation for the Treaty of Paris which was signed in 1951. It established the European Coal and Steel Community (ECSC) which was joined by France, Germany, Italy, the Netherlands, Belgium and Luxembourg.

Under the Treaty of Rome which came into force in 1958, these six countries founded the European Economic Community and European Atomic Energy Community to work alongside the ECSC.

In 1967 the three communities merged to become collectively known as the European Communities (EC) whose main focus was on cooperation in economic and agricultural affairs.

Denmark, Ireland and the UK became full EC members in 1973, Greece joined in 1981, Portugal and Spain in 1986, Austria, Finland and Sweden in 1995.

Maastricht and beyond

The Treaty on European Union, signed at Maastricht in 1991, formally established the European Union as the successor to the EC.

COUNCIL OF EUROPEAN UNION Main EU decision making body Also known as Council of Ministers Represents interests of individual member states Each member state represented by its own ministers Appoints president for a 30-month term, renewable once Appoints foreign policy High Representative for five-year term

At the same time, Maastricht expanded the concept of European union into new areas. It introduced a Common Foreign and Security Policy and moved towards an EU coordinating policy on asylum, immigration, drugs and terrorism.

EU citizenship was brought into being for the first time, allowing people from member countries to move freely between member states. The treaty included a Social Chapter, from which the UK opted out, laying down EU policies on workers' rights and other social issues.

Crucially, Maastricht established the timetable for economic and monetary union and specified the economic and budgetary criteria which would determine when countries were ready to join.

The subsequent Stability and Growth Pact tightened up the approach to these criteria, stressing that strict fiscal discipline and coordination would be vital to the success of economic and monetary union.

EUROPEAN COMMISSION Proposes legislation to Council and Parliament Manages implementation of EU legislation Commissioners appointed on five-yearly basis by Council in agreement with member states Appointments confirmed by parliament to which commission is answerable

It also laid down penalties for members failing to control budget deficits.

The single European currency, the euro, was officially adopted by 11 member states in 1999. Greece, which took longer to meet convergence criteria, joined two years later. Denmark, Sweden and the UK have chosen not to join, at least for the time being.

After a transition period, the euro completely replaced the former national currencies in 2002.

Key issues

Supporters of enlargement view it as the best way of building economic and political bonds between the peoples of Europe in order to end the divisions of the past.

They look forward to sharing the world's largest single market and so to expanding and consolidating stability and prosperity.

EUROPEAN PARLIAMENT Members - MEPs - elected every five years by EU citizens Votes on and oversees implementation of EU budget Considers Commission proposals on legislation Works with Council on legislative decisions Guide to the European Parliament

Critics highlight the fact that average GDP per head for the new member states is 40% of the average for existing EU countries, making them an economic burden.

Some also contend that the EU decision-making process will become bogged down as the number of countries round the table increases.

Fears have been expressed in some quarters that established EU members will see a huge influx of immigrants from former communist states seeking better job and benefit prospects.

The response from supporters of enlargement is that new talent is to be welcomed - and that immigration is unlikely to occur on a large scale as most people will want to stay put.

In the short term, existing members are allowed to limit employment rights for people from new member states.

Reform treaty

Expansion is almost certain to continue. Bulgaria and Romania joined in January 2007, entry talks are ongoing for Croatia and an application from the Former Yugoslav Republic of Macedonia is in the pipeline. Talks over Turkey's possible accession began in October 2005.

With enlargement approaching, a convention was established in 2002 to draft a constitution for the EU intended to streamline and replace the complex array of treaties and agreements which govern it at present, and to define the powers of the body.

After intensive negotiation, the final text of the constitution was approved at a meeting of the 25 EU heads of state in Brussels in June 2004.

However, every EU country had to ratify the constitution - through national parliament or public referendum - before it could take effect. The charter was dealt a severe blow in May and June 2005 when it was spurned by French and Dutch voters.

The constitution was put on hold, but with Germany's assumption of the EU presidency in January 2007 it was placed firmly back on the agenda.

Negotiations on a new Reform Treaty took place throughout 2007, and what has become known as the Lisbon Treaty was signed in the Portuguese capital on 13 December.

Road to ratification

Opponents criticized the treaty for being virtually the same as the rejected draft constitution. Most European leaders acknowledged that the main substance of the constitution would be preserved, but they argued that Lisbon simply amended previous European treaties, rather than marking any fundamental new shift in powers.

All 27 EU countries were expected to ratify the Treaty in 2008 with a view to it coming into force in 2009. However, the future of the Lisbon Treaty was thrown into turmoil in June 2008 after voters in Ireland - the only country to hold a referendum on it - delivered a resounding "no" vote.

In the wake of the shock vote, European Commission President Jose Manuel Barroso urged other countries to continue ratifying the Treaty.

Ireland approved the treaty in a second referendum in October 2009, and the ratification process was completed the following month when Czech President Vaclav Klaus - a vehement Eurosceptic who had come to be seen as the last major obstacle to the passage of the treaty - finally signed it.

In November the Council of Ministers approved Belgian Prime Minister Herman Van Rompuy as the first president of the European Council after rejecting several other higher-profile candidacies, including that of former British prime minister Tony Blair. Mr Van Rompuy will take office in January 2010.

The European Union Trade Commissioner, Britain's Baroness Ashton, was appointed High Representative for foreign affairs at the same time. She will take office when the Lisbon Treaty comes into force in December 2009.