22.1 Negotiations and key provisions of the Maastricht Treaty

The Maastricht Treaty, signed in 1992, transformed the European Community into the European Union. It introduced a three-pillar structure, covering economic integration, foreign policy, and justice affairs, setting the stage for deeper European cooperation.

The treaty laid the groundwork for the euro and established criteria for joining the single currency. It also expanded EU powers in foreign policy and justice, while introducing new decision-making processes to balance efficiency and member state autonomy.

Maastricht Treaty and European Community

Formation and Structure of the European Union

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• Maastricht Treaty signed on February 7, 1992, in Maastricht, Netherlands, by 12 member states of the European Community
• European Community transformed into the European Union, establishing a new framework for European integration
• Three pillars structure introduced to organize different areas of cooperation:
  • European Communities (EC) pillar
  • Common Foreign and Security Policy (CFSP) pillar
  • Justice and Home Affairs (JHA) pillar
• Treaty created a single institutional framework for the EU, including the European Parliament, Council of Ministers, and European Commission

Economic and Monetary Union

• Maastricht Treaty laid the foundation for the Economic and Monetary Union (EMU)
• Established convergence criteria for member states to join the single currency (euro):
  • Inflation rate no more than 1.5% above the average of the three best-performing member states
  • Government deficit not exceeding 3% of GDP
  • Government debt not exceeding 60% of GDP
  • Long-term interest rates no more than 2% above the average of the three best-performing member states
• European Central Bank (ECB) created to manage the euro and monetary policy
• Euro introduced as a common currency in 1999, with physical coins and notes circulating from 2002

Policy Areas

Common Foreign and Security Policy (CFSP)

• CFSP established as the second pillar of the European Union
• Aimed to strengthen EU's external action and promote common values internationally
• Key objectives included:
  • Safeguarding common values and fundamental interests of the EU
  • Strengthening the security of the Union and its member states
  • Preserving peace and international security
  • Promoting international cooperation
• Introduced new decision-making mechanisms:
  • Common positions to define EU stance on specific issues
  • Joint actions for coordinated operational activities
• High Representative for CFSP appointed to represent the EU in foreign affairs (Javier Solana as the first High Representative)

Justice and Home Affairs (JHA)

• JHA established as the third pillar of the European Union
• Focused on cooperation in law enforcement, criminal justice, and immigration
• Key areas of cooperation included:
  • Asylum policy and immigration
  • Combating drug trafficking and organized crime
  • Judicial cooperation in civil and criminal matters
  • Customs cooperation
• Created Europol (European Police Office) to facilitate information exchange between national law enforcement agencies
• Established the Schengen Agreement within the EU framework, allowing free movement of people across internal borders (UK and Ireland opted out)

Decision-making Processes

Subsidiarity and Institutional Changes

• Principle of subsidiarity introduced to ensure decisions are taken at the most appropriate level of government
• Aimed to balance EU-level action with member state autonomy
• European Parliament gained more power through the codecision procedure:
  • Allowed Parliament to amend and veto legislation in certain policy areas
  • Increased democratic accountability in EU decision-making
• Committee of the Regions established to represent local and regional authorities in EU policy-making

Voting and Member State Flexibility

• Qualified majority voting (QMV) expanded to more policy areas in the Council of Ministers:
  • Replaced unanimity in some decisions to increase efficiency
  • Voting weight allocated to member states based on population size
• Opt-outs introduced to allow flexibility for member states:
  • UK and Denmark secured opt-outs from the single currency
  • Denmark obtained opt-outs from defense policy and justice and home affairs
• Introduced enhanced cooperation mechanism:
  • Allowed a group of member states to pursue deeper integration in specific areas
  • Required a minimum number of participating states and approval from the Council