THE MAASTRICHT TREATY

The Maastricht Treaty

[Nese Ersanli]

[Sabanci University]



“I personally could never have signed this Treaty.”(Margaret Thatcher)

-Former Prime Minister of United Kingdom

ABSTRACT

This term paper aims to explore the Treaty on European Union, also known as the Treaty of Maastricht with regard to the integration, and its results in both economic and political realm. It also outlines the several theories of European integration from different perspectives by analyzing the characteristics of them.

TABLE OF CONTENTS

Abstractiii

Introduction1

Discussion2

The Pillar Structure4

Principles of the Treaty7

Economical Aspects of the Treaty and the European Monetary Union8

The Maastricht Treaty and European Monetary Union (EMU)11

Integration Process - Different Integration Theories from Different Perspectives13

Conclusion21

References25

THE MAASTRICHT TREATY

Introduction

The enlargement process has continued steadily, if unevenly, during all but 7 years since the signing of the Treaty of Rome in 1957. Originally, European integration involved only six Western European states: France, Germany, the Netherlands, Belgium, Italy, and Luxemburg. The first round of enlargement took place in 1973, when Britain, Ireland, and Denmark joined the EC. This round was followed by the accession of Greece in 1981. The southern dimension of the integration was strengthened 5 yrs., when Spain and Portugal became members. After the signing of the Maastricht Treaty in 1992 and the consequent establishment of the EU, the expansion, which included Sweden, Finland, and Austria, took effect in 1995. This phase of the EU lasted 9 yrs.

The European Union and member states move closer to political and social unity by the supranational agreement called as "The Maastricht Treaty". This agreement is also known as the "Treaty on European Union". The agreement derives its name from the Dutch city Maastricht. The Maastricht Treaty was signed on February 7, 1992 which followed a protracted period of fractious and biased charged negotiations. After the approval of all the members, the agreement of the Maastricht Treaty became effective on November 1, 2011. It also suspended the European Economic Community (ECC) and Treaty of Rome, as a result, the Maastricht Treaty marked the degree of greatest cooperation between multinational of European state members. The treaty can be regarded as the continuation of a decades-long trend wherein many European nations have been progressively moving toward economic and political unity.

Discussion

In order to understand the full impact of the Maastricht Treaty, one must look somewhat further back into history and the point of implementation of the individual agreements. The European Union targets an enhancement of competitive forces, the lowering of prices and an increase in customer satisfaction. Starting with the discussions in the 1950s about restructuring the economies of Western Europe, two alternatives for economic cooperation emerged. This plan incorporated such features as imposing common external tariffs and no tariffs between the members of the proposed association.

The fact that the 1950s discussion and the negotiations resulted with the conclusion of the Treaty of Rome in 1957, the European Free Trade Association was established. One component of the Treaty of Rome was the establishment of the European Economic Community (EEC). High profile participants in this were members of the European ...