Европейски съюз(Bulgarian) Evropská unie(Czech) Den Europæiske Union(Danish) Europese Unie(Dutch) Euroopa Liit(Estonian) Euroopan unioni(Finnish) Union européenne(French) Europäische Union(German) Ευρωπαϊκή Ένωση(Greek) Európai Unió(Hungarian) An tAontas Eorpach(Irish) Unione Europea(Italian) Eiropas Savienība(Latvian) Europos Sąjunga(Lithuanian) L-Unjoni Ewropea(Maltese) Unia Europejska(Polish) União Europeia(Portuguese) Uniunea Europeană(Romanian) Európska únia(Slovak) Evropska unija(Slovene) Unión Europea(Spanish) Europeiska unionen(Swedish)
A common currency, the euro, has been adopted by sixteen member states constituting the Eurozone. The EU has developed a limited role in foreign policy, having representation at the WTO, G8 summits, and at the UN. It enacts legislation in justice and home affairs, including the abolition of passport controls between many member states which form part of the Schengen Area. Twenty-one EU countries are members of NATO.
The EU traces its origins to the European Coal and Steel Community formed among six countries in 1951 and the Treaty of Rome in 1957. Since then the union has grown in size through the accession of new countries, and new policy areas have been added to the remit of the EU's institutions.
In 1973 the Communities enlarged to include Denmark, Ireland and the United Kingdom. Norway had negotiated to join at the same time but a referendum rejected membership and so it remained outside. In 1979 the first direct, democratic elections to the European Parliament were held.
In 1990, after the fall of the Iron Curtain, the former East Germany became part of the Community as part of a newly united Germany.[28] With enlargement toward East-Central Europe on the agenda, the Copenhagen criteria for candidate members to join the European Union were agreed.
On 1 January 2007, Romania and Bulgaria became the EU's newest members and Slovenia adopted the euro. In December of that year European leaders signed the Lisbon Treaty which was intended to replace the earlier, failed European Constitution, which never came into force after being rejected by French and Dutch voters. However, uncertainty clouds the prospects of the Lisbon Treaty's coming into force as result of its rejection by Irish voters in June 2008.
There are three official candidate countries, Croatia, Macedonia, and Turkey. The western Balkan countries of Albania, Bosnia and Herzegovina, Montenegro, and Serbia are officially recognised as potential candidates.[Kosovo is also listed by the European Commission as a potential candidate but the Commission does not list it as an independent country because not all member states recognise it as an independent country, separate from Serbia.
To join the EU, a country must meet the Copenhagen criteria, defined at the 1993 Copenhagen European Council. These require a stable democracy which respects human rights and the rule of law; a functioning market economy capable of competition within the EU; and the acceptance of the obligations of membership, including EU law. Evaluation of a country's fulfilment of the criteria is the responsibility of the European Council.The current framework does not specify how a country could exit the Union (although Greenland, and Faroe Islands (the latter being a part of the European continent) two territories of Denmark, withdrew in 1985), but the proposed Treaty of Lisbon contains a formal procedure for withdrawing.
The territory of the EU consists of the combined territories of its 27 member states with some exceptions outlined below. The territory of the EU is not the same as that of Europe, as parts of the continent are outside the EU, such as Iceland, Switzerland, Norway, and European Russia. Some parts of member states are not part of the EU, despite forming part of the European continent (for example the Isle of Man and Channel Islands two territories of the United Kingdom and Faroe Islands a territory of Denmark). The island country of Cyprus, a member of the EU, is approximate to Turkey – specifically, Anatolia (Asia Minor) – and often considered part of Asia.
The EU's climate is influenced by its 65,993 km coastline. (Crete)
The EU's member states cover a combined area of 4,422,773 square kilometres (1,707,642 sq mi). The total territory of the EU is larger than all but six countries and its highest peak is Mont Blanc in the Graian Alps, 4,807 metres (15,771 ft) above sea level. The landscape, climate, and economy of the EU are influenced by its coastline, which is 65,993 kilometres (41,006 mi) long. The EU has the world's second longest coastline, after Canada. The combined member states share land borders with 21 non-member states for a total of 12,441 kilometres (7,730 mi), the fifth longest border in the world.
Including the overseas territories of member states, the EU experiences most types of climate from Arctic to tropical, rendering meteorological averages for the EU as a whole meaningless. In practice, the majority of the population lives either in areas with a Mediterranean climate (Southern Europe), a temperate maritime climate (Western Europe), or a warm summer continental or hemiboreal climate (Eastern Europe).
The EU is often described as being divided into three areas of responsibility, called pillars. The original European Community policies form the first pillar, while the second consists of Common Foreign and Security Policy. The third pillar originally consisted of Justice and Home Affairs, however owing to changes introduced by the Amsterdam and Nice treaties, it currently consists of Police and Judicial Co-operation in Criminal Matters. Broadly speaking, the second and third pillars can be described as the intergovernmental pillars because the supranational institutions of the Commission, Parliament and the Court of Justice play less of a role or none at all, while the lead is taken by the intergovernmental Council of Ministers and the European Council. Most activities of the EU come under the first, Community pillar. This is mostly an economically oriented pillar and is where the supranational institutions have the most influence.
The activities of the EU are regulated by a number of institutions and bodies. They carry out the tasks and policies set out for them in the treaties. The EU receives its political leadership from the European Council, which is composed of one representative per member state — either its head of state or head of government — plus the President of the Commission. Each member state's representative is assisted by its Foreign Minister. The Council uses its leadership role to sort out disputes which have arisen between member states and the institutions, and to resolve political crises and disagreements over controversial issues and policies.
The Council is headed by a rotating presidency, with every member state taking the helm of the EU for a period of six months during which that country's representatives chair meetings of the European Council and the Council of Ministers. The member state holding the presidency typically uses it to drive a particular policy agenda such as economic reform, reform of the EU itself, enlargement or furthering European integration. The Council usually meet four times a year at European Summits.
The European Council should not be mistaken for the Council of Europe, an international organisation independent from the EU.
The European Commission acts as the EU's executive arm and is responsible for initiating legislation and the day-to-day running of the EU. It is intended to act solely in the interest of the EU as a whole, as opposed to the Council which consists of leaders of member states who reflect national interests. The commission is also seen as the motor of European integration. It is currently composed of 27 commissioners for different areas of policy, one from each member state. The President of the Commission and all the other commissioners are nominated by the Council. Appointment of the Commission President, and also the Commission in its entirety, have to be confirmed by Parliament.
The European Parliament forms one half of the EU's legislature. The 785 Members of the European Parliament (MEPs) are directly elected by EU citizens every five years. Although MEPs are elected on a national basis, they sit according to political groups rather than their nationality. Each country has a set number of seats. The Parliament and the Council form and pass legislation jointly, using co-decision, in certain areas of policy. This procedure will extend to many new areas under the proposed Treaty of Lisbon, and hence increase the power and relevance of the Parliament. The Parliament also has the power to reject or censure the Commission and the EU budget. The President of the European Parliament carries out the role of speaker in parliament and represents it externally. The president and vice presidents are elected by MEPs every two and a half years.
The Council of the European Union (sometimes referred to as the Council of Ministers) forms the other half of the EU's legislature. It consists of a government minister from each member states and meets in different compositions depending on the policy area being addressed. Notwithstanding its different compositions, it is considered to be one single body. In addition to its legislative functions, the Council also exercises executive functions in relations to the Common Foreign and Security Policy.
The judicial branch of the EU consists of the European Court of Justice (ECJ) and the Court of First Instance. Together they interpret and apply the treaties and the law of the EU.[51] The Court of First Instance mainly deals with cases taken by individuals and companies directly before the EU's courts, and the ECJ primarily deals with cases taken by member states, the institutions and cases referred to it by the courts of member states.Decisions from the Court of First Instance can be appealed to the Court of Justice but only on a point of law.
The EU is based on a series of treaties. These first established the European Community and the EU, and then made amendments to those founding treaties. These are power-giving treaties which set broad policy goals and establish institutions with the necessary legal powers to implement those goals. These legal powers include the ability to enact legislation which can directly affect all member states and their inhabitants. Under the principle of supremacy, national courts are required to enforce the treaties that their member states have ratified, and thus the laws enacted under them, even if doing so requires them to ignore conflicting national law, and (within limits) even constitutional provisions.
The main legal acts of the EU come in three forms: regulations, directives and decisions. Regulations become law in all member states the moment they come into force, without the requirement for any implementing measures, and automatically override conflicting domestic provisions. Directives require member states to achieve a certain result while leaving them discretion as to how to achieve the result. The details of how they are to be implemented are left to member states.When the time limit for implementing directives passes, they may, under certain conditions, have direct effect in national law against Member States. Decisions offer an alternative to the two above modes of legislation. They are legal acts which only apply to specified individuals, companies or a particular Member State. They are most often used in Competition Law, or on rulings on State Aid, but are also frequently used for procedural or administrative matters within the institutions.
Regulations, directives and decisions are of equal legal value and apply without any formal hierarchy.
One of the complicating features of the EU's legal system is the multiplicity of legislative procedures used to enact legislation. The treaties micro-manage the EU's powers, indicating different ways of adopting legislation for different policy areas and for different areas within the same policy areas. A common feature of the EU's legislative procedures, however, is that almost all legislation must be initiated by the Commission, rather than member states or European parliamentarians. The two most common procedures are co-decision, under which the European Parliament can veto proposed legislation, and consultation, under which Parliament is only permitted to give an opinion which can be ignored by European leaders. In most cases legislation must be agreed by the council.
National courts within the Member States play a key role in the EU as enforcers of EU law, and a "spirit of cooperation" between EU and national courts is laid down in the Treaties. National courts can apply EU law in domestic cases, and if they require clarification on the interpretation or validity of any EU legislation related to the case it may make a reference for a preliminary ruling to the ECJ. The right to declare EU legislation invalid however is reserved to the EU courts.
Justice and home affairs
The Schengen Area comprises most member states ensuring open borders.
Over the years, the EU has developed a wide competence in the area of justice and home affairs. To this end, agencies have been established that co-ordinate associated actions: Europol for co-operation of police forces,Eurojust for co-operation between prosecutors, and Frontex for co-operation between border control authorities. The EU also operates the Schengen Information System which provides a common database for police and immigration authorities.
Furthermore, the Union has legislated in areas such as extradition, family law,asylum law, and criminal justice. Prohibitions against sexual and nationality discrimination have a long standing in the treaties. In more recent years, these have been supplemented by powers to legislate against discrimination based on race, religion, disability, age, and sexual orientation. By virtue of these powers, the EU has enacted legislation on sexual discrimination in the work-place, age discrimination, and racial discrimination.
Fundamental rights
At present the EU does not have a codified catalogue of fundamental rights against which its legal acts might be judged. However the European Court of Justice does give judgements on fundamental rights derived from the "constitutional traditions common to the Member States," and may even invalidate EU legislation based on its failure to adhere to these fundamental rights. While the EU may be said to have an unwritten fundamental rights code, there have, nonetheless, been efforts to establish a written catalogue. In 2000, the EU drew up the Charter of Fundamental Rights. The Charter is not legally binding at present but would become so if the Lisbon Treaty comes into force.
Although signing the European Convention on Human Rights (ECHR) is a condition for EU membership, the EU itself is not covered by the convention as it is neither a state[77] nor has the competence to accede. Nonetheless the Court of Justice and European Court of Human Rights co-operate to ensure their case-law does not conflict. If the Lisbon Treaty comes into force the EU would be required to accede to the ECHR.
Foreign policy cooperation between member states dates from the establishment of the Community in 1957, when member states negotiated as a bloc in international trade negotiations under the Common Commercial Policy. Steps for a more wide ranging coordination in foreign relations began in 1970 with the establishment of European Political Cooperation which created an informal consultation process between member states with the aim of forming common foreign policies. It was not, however, until 1987 when European Political Cooperation was introduced on a formal basis by the Single European Act. EPC was renamed as the Common Foreign and Security Policy (CFSP) by the Maastricht Treaty.
The Maastricht Treaty gives the CFSP the aims of promoting both the EU's own interests and those of the international community as a whole. This includes promoting international co-operation, respect for human rights, democracy, and the rule of law.
The Amsterdam Treaty created the office of the High Representative for the Common Foreign and Security Policy (currently held by Javier Solana) to co-ordinate the EU's foreign policy. The High Representative, in conjunction with the current Presidency, speaks on behalf of the EU in foreign policy matters and can have the task of articulating ambiguous policy positions created by disagreements among member states. The Common Foreign and Security Policy requires unanimity among the now 27 member states on the appropriate policy to follow on any particular issue. The unanimity and difficult issues treated under the CFSP makes disagreements, such as those which occurred over the war in Iraq,not uncommon.
Besides the emerging international policy of the European Union, the international influence of the EU is also felt through enlargement. The perceived benefits of becoming a member of the EU act as an incentive for both political and economic reform in states wishing to fulfil the EU's accession criteria, and are considered an important factor contributing to the reform of former Communist countries in Central and Eastern Europe. This influence on the internal affairs of other countries is generally referred to as "soft power", as opposed to military "hard power".
Besides the CFSP, the Commission also has its own representation in international organisations. This is primarily through the European Commissioner for External Relations, who works alongside the High Representative. In the UN, as an observer and working together, the EU has gained influence in areas such as aid due to its large contributions in that field (see below). In the G8, the EU has rights of membership besides chairing/hosting summit meetings and is represented at meetings by the presidents of the Commission and the Council. In the World Trade Organisation (WTO), where all 27 member states are represented, the EU as a body is represented by Trade CommissionerCatherine Ashton.
The Eurofighter is built by a consortium of four EU countries.
Member states are responsible for their own territorial defence. Many EU members are also members of NATO although some member states follow policies of neutrality. The Western European Union (WEU) is a European security organisation related to the EU. In 1992, the WEU's relationship with the EU was defined, when the EU assigned it the "Petersberg tasks" (humanitarian missions such as peacekeeping and crisis management). These tasks were later transferred from the WEU to the EU by the Amsterdam Treaty and now form part of the Common Foreign and Security Policy and the European Security and Defence Policy. Elements of the WEU are currently being merged into the Common Foreign and Security Policy, and the President of the WEU is currently the EU's foreign policy chief.
Following the Kosovo War in 1999, the European Council agreed that "the Union must have the capacity for autonomous action, backed by credible military forces, the means to decide to use them, and the readiness to do so, in order to respond to international crises without prejudice to actions by NATO". To that end, a number of efforts were made to increase the EU's military capability, notably the Helsinki Headline Goal process. After much discussion, the most concrete result was the EU Battlegroups initiative, each of which is planned to be able to deploy quickly about 1500 men.[94] EU forces have been deployed on peacekeeping missions from Africa to the former Yugoslavia and the Middle East. EU military operations are supported by a number of bodies, including the European Defence Agency, satellite centre and the military staff.[96]
Collectively, the EU is the largest contributor of foreign aid in the world.
The European Community Humanitarian Aid Office, or "ECHO", provides humanitarian aid from the EU to developing countries. In 2006 its budget amounted to €671 million, 48% of which went to the African, Caribbean and Pacific countries. Counting the EU's own contributions and those of its member states together, the EU is the largest aid donor in the world.
The EU's aid has previously been criticised by the Eurosceptic think-tank Open Europe for being inefficient, mis-targeted and linked to economic objectives. Furthermore, some charities have claimed European governments have inflated the amount they have spent on aid by incorrectly including money spent on debt relief, foreign students, and refugees. Under the de-inflated figures, the EU as a whole did not reach its internal aid target in 2006 and is expected not to reach the international target of 0.7% of GNI until 2015.
However, four countries have reached that target, most notably Sweden, Luxembourg, the Netherlands and Denmark.In 2005 EU aid was 0.34% of the GNP which was higher than that of either the United States or Japan. The current commissioner for aid, Louis Michel, has called for aid to be delivered more rapidly, to greater effect, and on humanitarian principles.
Economy
170 of the world's 500 largest corporations are headquartered in EU countries. (HSBC, UK.)
Since its origin, the EU has established a single economic market across the territory of all its members. Currently, a single currency is in use between the 16 members of the eurozone. Considered as a single economy, the EU generated an estimated nominal gross domestic product (GDP) of US$18.39 trillion (15.247 trillion international dollars based on purchasing power parity) in 2008, amounting to over 22% of the world's total economic output in terms of purchasing power parity, which makes it the largest economy in the world by nominal GDP and the second largest trade bloc economy in the world by PPP valuation of GDP. It is also the largest exporter of goods, the second largest importer, and the biggest trading partner to several large countries such as India and China.
170 of the top 500 largest corporations measured by revenue (Fortune Global 500) have their headquarters in the EU. In May 2007 unemployment in the EU stood at 7% while investment was at 21.4% of GDP, inflation at 2.2% and public deficit at -0.9% of GDP. There is a great deal of variance for annual per capita income within individual EU states, these range from US$7,000 to US$69,000.
EU member states have a standardised passport design with the words "European Union" given in the national language(s) at the top.[115]
Two of the original core objectives of the European Economic Community were the development of a common market, subsequently renamed the single market, and a customs union between its member states. The single market involves the free circulation of goods, capital, people and services within the EU, and the customs union involves the application of a common external tariff on all goods entering the market. Once goods have been admitted into the market they can not be subjected to customs duties, discriminatory taxes or import quotas, as they travel internally. The non-EU member states of Iceland, Norway, Liechtenstein and Switzerland participate in the single market but not in the customs union. Half the trade in the EU is covered by legislation harmonised by the EU.
Free movement of capital is intended to permit movement of investments such as property purchases and buying of shares between countries. Until the drive towards Economic and Monetary Union the development of the capital provisions had been slow. Post-Maastricht there has been a rapidly developing corpus of ECJ judgements regarding this initially neglected freedom. The free movement of capital is unique insofar as that it is granted equally to non-member states.
The free movement of persons means citizens can move freely between member states to live, work, study or retire in another country. This required the lowering of administrative formalities and recognition of professional qualifications of other states.
The free movement of services and of establishment allows self-employed persons to move between member states in order to provide services on a temporary or permanent basis. While services account for between sixty and seventy percent of GDP, legislation in the area is not as developed as in other areas. This lacuna has been addressed by the recently passed Directive on services in the internal market which aims to liberalise the cross border provision of services.According to the Treaty the provision of services is a residual freedom that only applies if no other freedom is being exercised.
The creation of a European single currency became an official objective of the EU in 1969. However, it was only with the advent of the Maastricht Treaty in 1993 that member states were legally bound to start the monetary union no later than 1 January 1999. On this date the euro was duly launched by eleven of the then fifteen member states of the EU. It remained an accounting currency until 1 January 2002, when euro notes and coins were issued and national currencies began to phase out in the eurozone, which by then consisted of twelve member states. The eurozone has since grown to sixteen countries, the most recent being Slovakia which joined on 1 January 2009.
All other EU member states, except Denmark and the United Kingdom, are legally bound to join the euro when the economic conditions are met, however only a few countries have set target dates for accession. Sweden has circumvented the requirement to join the euro area by not meeting the membership criteria.[
The euro is designed to help build a single market by, for example: easing travel of citizens and goods, eliminating exchange rate problems, providing price transparency, creating a single financial market, price stability and low interest rates, and providing a currency used internationally and protected against shocks by the large amount of internal trade within the eurozone. It is also intended as a political symbol of integration and stimulus for more.
The euro, and the monetary policies of those who have adopted it in agreement with the EU, are under the control of the European Central Bank (ECB). There are eleven other currencies used in the EU. A number of other countries outside the EU, such as Montenegro, use the euro without formal agreement with the ECB.
The EU operates a competition policy intended to ensure undistorted competition within the single market. The Commission as the competition regulator for the single market is responsible for antitrust issues, approving mergers, breaking up cartels, working for economic liberalisation and preventing state aid.
The Competition Commissioner, currently Neelie Kroes, is one of the most powerful positions in the Commission, notable for the ability to affect the commercial interests of trans-national corporations. For example, in 2001 the Commission for the first time prevented a merger between two companies based in the United States (GE and Honeywell) which had already been approved by their national authority. Another high profile case against Microsoft, resulted in the Commission fining Microsoft over €777 million following nine years of legal action.
In negotiations on the Treaty of Lisbon, French PresidentNicolas Sarkozy succeeded in removing the words "free and undistorted competition" from the treaties. However, the requirement is maintained in an annex and it is unclear whether this will have any practical effect on EU policy.
The twenty-seven member state EU had an agreed budget of €120.7 billion for the year 2007 and €864.3 billion for the period 2007-2013, representing 1.10% and 1.05% of the EU-27's GNI forecast for the respective periods. By comparison, the United Kingdom's expenditure for 2004 was estimated to be €759 billion, and France was estimated to have spent €801 billion. In 1960, the budget of the then European Economic Community was 0.03% of GDP.
In the 2006 budget, the largest single expenditure item was agriculture with around 46.7% of the total budget. Next came structural and cohesion funds with approximately 30.4% of the total.
Internal policies took up around 8.5%. Administration accounted for around 6.3%. External actions, the pre-accession strategy, compensations and reserves brought up the rear with approximately 4.9%, 2.1%, 1% and 0.1% respectively.
The Common Agricultural Policy (CAP) is one of the oldest policies of the European Community, and was one of its core aims.The policy has the objectives of increasing agricultural production, providing certainty in food supplies, ensuring a high quality of life for farmers, stabilising markets, and ensuring reasonable prices for consumers (article 33 of the Treaty of Rome). It was, until recently, operated by a system of subsidies and market intervention. Until the 1990s, the policy accounted for over 60% of the then European Community's annual budget, and still accounts for around 35%.
The policy's price controls and market interventions led to considerable overproduction, resulting in so-called butter mountains and wine lakes. These were intervention stores of produce bought up by the Community to maintain minimum price levels. In order to dispose of surplus stores, they were often sold on the world market at prices considerably below Community guaranteed prices, or farmers were offered subsidies (amounting to the difference between the Community and world prices) to export their produce outside the Community. This system has been criticised for under-cutting farmers in the developing world. The overproduction has also been criticised for encouraging environmentally unfriendly intensive farming methods. Supporters of CAP say that the economic support which it gives to farmers provides them with a reasonable standard of living, in what would otherwise be an economically unviable way of life. However, the EU's small farmers receive only 8% of CAP's available subsidies.
Since the beginning of the 1990s, the CAP has been subject to a series of reforms. Initially these reforms included the introduction of set-aside in 1988, where a proportion of farm land was deliberately withdrawn from production, milk quotas (by the McSharry reforms in 1992) and, more recently, the 'de-coupling' (or disassociation) of the money farmers receive from the EU and the amount they produce (by the Fischler reforms in 2004). Agriculture expenditure will move away from subsidy payments linked to specific produce, toward direct payments based on farm size. This is intended to allow the market to dictate production levels, while maintaining agricultural income levels. One of these reforms entailed the abolition of the EU's sugar regime, which previously divided the sugar market between member states and certain African-Caribbean nations with a privileged relationship with the EU.
In 2006, the 27 member states of the EU had a gross inland energy consumption of 1,825 million tonnes of oil equivalent (toe). Around 46% of the energy consumed was produced within the member states while 54% was imported. In these statistics, nuclear energy is treated as primary energy produced in the EU, regardless of the source of the uranium, of which less than 3% is produced in the EU.
The EU has had legislative power in the area of energy policy for most of its existence; this has its roots in the original European Coal and Steel Community. The introduction of a mandatory and comprehensive European energy policy was approved at the meeting of the European Council in October 2005, and the first draft policy was published in January 2007.
The Commission has five key points in its energy policy: increase competition in the internal market, encourage investment and boost interconnections between electricity grids; diversify energy resources with better systems to respond to a crisis; establish a new treaty framework for energy co-operation with Russia while improving relations with energy-rich states in Central Asia and North Africa; use existing energy supplies more efficiently while increasing use of renewable energy; and finally increase funding for new energy technologies.
The EU currently imports 82% of its oil, 57% of its gas and 97.48% of its uranium demands. There are concerns that the EU is largely dependent on other countries, primarily Russia, for its energy. This concern has grown following a series of clashes between Russia and its neighbours, threatening the flow of gas. As a result the EU is attempting to diversify its energy supply.
The EU is working to improve cross-border infrastructure within the EU, for example through the Trans-European Networks (TEN). Projects under TEN include the Channel Tunnel, LGV Est, the Fréjus Rail Tunnel, the Oresund Bridge and the Brenner Base Tunnel. In 2001 it was estimated that by 2010 the network would cover: 75,200 kilometres (46,700 mi) of roads; 78,000 kilometres (48,000 mi) of railways; 330 airports; 270 maritime harbours; and 210 internal harbours.
The developing European transport policies will increase the pressure on the environment in many regions by the increased transport network. In the pre-2004 EU members, the major problem in transport deals with congestion and pollution. After the recent enlargement, the new states that joined since 2004 added the problem of solving accessibility to the transport agenda. The Polish road network in particular was in poor condition: at Poland's accession to the EU, 4,600 roads needed to be upgraded to EU standards, demanding approximately €17 billion.
Another infrastructure project is the Galileo positioning system. Galileo is a proposed Global Navigation Satellite System, to be built by the EU and launched by the European Space Agency (ESA), and is to be operational by 2010. The Galileo project was launched partly to reduce the EU's dependency on the US-operated Global Positioning System, but also to give more complete global coverage and allow for far greater accuracy, given the aged nature of the GPS system. It has been criticised by some due to costs, delays, and their perception of redundancy given the existence of the GPS system.
There are substantial economical disparities across the EU. Even corrected for purchasing power, the difference between the richest and poorest regions (NUTS-2 and NUTS-3 of the Nomenclature of Territorial Units for Statistics) is about a factor of ten. On the high end Frankfurt has €71,476 PPP per capita, Paris €68,989, and Inner London €67,798, while the three poorest NUTS, all in Romania, are Vaslui County with €3,690 PPP per capita, Botoşani County with €4,115, and Giurgiu County with €4,277. Compared to the EU average, the United States GDP per capita is 35% higher and the Japanese GDP per capita is approximately 15% higher.
The first environmental policy of the European Community was launched in 1972. Since then it has addressed issues such as acid rain, the thinning of the ozone layer, air quality, noise pollution, waste and water pollution. The Water Framework Directive is an example of a water policy, aiming for rivers, lakes, ground and coastal waters to be of "good quality" by 2015. Wildlife is protected through the Natura 2000 programme and covers 30,000 sites throughout Europe. In 2007, the Polish government sought to build a motorway through the Rospuda valley, but the Commission has been blocking construction as the valley is a wildlife area covered by the programme.
The REACH regulation was a piece of EU legislation designed to ensure that 30,000 chemicals in daily use are tested for their safety. In 2006, toxic waste spill off the coast of Côte d'Ivoire, from a European ship, prompted the Commission to look into legislation regarding toxic waste. With members such as Spain now having criminal laws against shipping toxic waste, the Commission proposed to create criminal sentences for "ecological crimes". Although the Commission's right to propose criminal law was contested, it was confirmed in this case by the Court of Justice.
In 2007, member states agreed that the EU is to use 20% renewable energy in the future and that is has to reduce carbon dioxideemissions in 2020 by at least 20% compared to 1990 levels. This includes measures that in 2020, one-tenth of all cars and trucks in EU 27 should be running on biofuels. This is considered to be one of the most ambitious moves of an important industrialised region to fight global warming.
At the 2007 United Nations Climate Change Conference, dealing with the successor to the Kyoto Protocol, the EU has proposed at 50% cut in greenhouse gases by 2050. The EU's attempts to cut its carbon footprint appear to have also been aided by an expansion of Europe's forests which, between 1990 and 2005, grew 10% in western Europe and 15% in Eastern Europe. During this period they soaked up 126 million metric tons of carbon dioxide, equivalent to 11% of EU emissions from human activities.
Renewable energy is one priority in transnational research activities such as the FP7.
Education and science are areas where the EU's role is limited to supporting national governments. In education, the policy was mainly developed in the 1980s in programmes supporting exchanges and mobility. The most visible of these has been the ERASMUS programme, a university exchange programme which began in 1987. In its first 20 years it has supported international exchange opportunities for well over 1.5 million university and college students and has become a symbol of European student life. There are now similar programmes for school pupils and teachers, for trainees in vocational education and training, and for adult learners in the Lifelong Learning Programme 2007–2013. These programmes are designed to encourage a wider knowledge of other countries and to spread good practices in the education and training fields across the EU. Through its support of the Bologna process the EU is supporting comparable standards and compatible degrees across Europe.
Scientific development is facilitated through the EU's Framework Programmes, the first of which started in 1984. The aims of EU policy in this area are to co-ordinate and stimulate research. The independent European Research Council allocates EU funds to European or national research projects. The Seventh Framework Programme (FP7) deals in a number of areas, for example energy where it aims to develop a diverse mix of renewable energy for the environment and to reduce dependence on imported fuels.
Since January 2000 the European Commission has set its sights on a more ambitious objective, known as the European Research Area, and has extensively funded research in a few key areas. This has the support of all member states, and extends the existing financing structure of the frameworks. It aims to focus on co-ordination, sharing knowledge, ensuring mobility of researchers around Europe, improving conditions for researchers and encouraging links with business and industry as well as removing any legal and administrative barriers. The EU is involved with six other countries to develop ITER, a fusionreactor which will be built in the EU at Cadarache. ITER builds on the previous project, Joint European Torus, which is currently the largest nuclear fusion reactor in the world. The Commission foresees this technology to be generating energy in the EU by 2050. It has observer status within CERN, there are various agreements with ESA and there is collaboration with ESO.These organisations are not under the framework of the EU, but membership heavily overlaps between them.
The combined population of all 27 member states has been estimated at 499,628,529 in January 2009,
The EU's population is 7.3% of the world total, yet the EU covers just 3% of the Earth's land, amounting to a population density of 113 km2 (44 sq mi) making the EU one of the most densely populated regions of the world. One third of EU citizens live in cities of over a million people, rising to 80% living in urban areas generally. The EU is home to more global cities than any other region in the world. It contains 16 cities with populations of over one million.
German is the most widely spoken mother tongue (about 88.7 million people as of 2006), followed by English, Italian and French. English is by far the most spoken foreign language at over half (51%) of the population, with German and French following. 56% of European citizens are able to engage in a conversation in a language other than their mother tongue. Most official languages of the EU belong to the Indo-Europeanlanguage family, except Estonian, Finnish, and Hungarian, which belong to the Uralic language family, and Maltese, which is a Semitic language. Most EU official languages are written in the Latin alphabet except Bulgarian, written in Cyrillic, and Greek, written in the Greek alphabet.
Besides the 23 official languages, there are about 150 regional and minority languages, spoken by up to 50 million people.Of these, only the Spanish regional languages (Catalan/Valencian, Basque and Galician), Scottish Gaelic and Welsh can be used by citizens in communication with the main European institutions. Although EU programmes can support regional and minority languages, the protection of linguistic rights is a matter for the individual member states.
Besides the many regional languages, a broad variety of languages from other parts of the world are spoken by immigrant communities in the member states: Turkish, Maghrebi Arabic, Russian, Urdu, Bengali, Hindi, Tamil, Ukrainian, Punjabi and Balkan languages are spoken in many parts of the EU. Many older immigrant communities are bilingual, being fluent in both the local (EU) language and in that of their ancestral community. Migrant languages have no formal status or recognition in the EU or in the EU countries, although from 2007 they are eligible for support from the language teaching section of the EU's Lifelong Learning Programme 2007–2013.
The EU is a secular body with no formal connections to any religion and no mention of religion in any current or proposed treaty. Discussion over the draft texts of the European Constitution and later the Treaty of Lisbon included proposals to mention Christianity and/or God in the preamble of the text, but the idea faced opposition and was dropped.
Percentage of Europeans in each Member State who believe in "a God"[181]
Eurostat's Eurobarometer opinion polls show that the majority of EU citizens have some form of belief system, with only 21% seeing it as important. Many countries have experienced falling church attendance and membership in recent years. The 2005 Eurobarometer showed that of the European citizens (of the 25 members at that time), 52% believed in a god, 27% in some sort of spirit or life force and 18% had no form of belief. The countries where the fewest people reported a religious belief were the Czech Republic (19%) and Estonia (16%), The most religious countries are Malta (95%; predominantly Roman Catholic), and Cyprus and Romania both with about 90% of citizens believing in God. Across the EU, belief was higher among women, increased with age, those with religious upbringing, those who left school at 15 with a basic education, and those "positioning themselves on the right of the political scale (57%)."
Other significant religions present in the EU territories are Buddhism, Sikhism and Hinduism with the latter two having a strong presence in the United Kingdom.
Policies affecting cultural matters are mainly set by individual member states. Cultural co-operation between member states has been a concern of the EU since its inclusion as a community competency in the Maastricht Treaty. Actions taken in the cultural area by the EU include the Culture 2000 7-year programme, the European Cultural Month event,the Media Plus programme, orchestras such as the European Union Youth Orchestra and the European Capital of Culture programme – where one or more cities in the EU are selected for one year to assist the cultural development of that city. In addition, the EU gives grants to cultural projects (totalling 233 in 2004) and has launched a Web portal dedicated to Europe and culture, responding to the European Council's expressed desire to see the Commission and the member states "promote the networking of cultural information to enable all citizens to access European cultural content by the most advanced technological means".
Within the EU, politicians, such as the President of the European Parliament, appeal to a shared European historical/cultural heritage, including Greek philosophy, Roman law, the Judeo-Christian heritage, and a tradition of modern freedom and democracy, but also negative elements such as the World wars.
Spectator sports are popular in much of the EU. (Camp Nou, Barcelona)
Sport is mainly the responsibility of individual member states or other international organisations rather than that of the EU. However, some EU policies have had an impact on sport, such as the free movement of workers which was at the core of the Bosman ruling, which prohibited national football leagues from imposing quotas on foreign players with European citizenship.
Under the proposed Treaty of Lisbon sports would be given a special status which would exempt this sector from much of the EU's economic rules. This followed lobbying by governing organisations such as the International Olympic Committee and FIFA, due to objections over the applications of free market principles to sport which led to an increasing gap between rich and poor clubs.
Several European sports associations are consulted in the formulation of the EU's sports policy, including FIBA, UEFA, EHF, IIHF, FIRA and CEV. All EU member states and their respective national sport associations participate in European sport organisations such as UEFA.
Turkey is part of Europe. Fear keeps it out of the EU
Sarkozy's argument won't wash. This great nation, a crucial link with the Muslim world, would be a major asset for the union
When on his recent visit to Turkey President Obama called for Turkish entry into the European Union, he put his finger on a strategic and cultural sore spot. The French president, Nicolas Sarkozy, speaking for the majority position in Europe, was quick to respond: Turkey may one day enjoy a privileged relationship with the EU, but full membership is out of the question. Turkey is not European – geographically or culturally.
Interpretations of the US stance are numerous and contradictory, but they highlight deep tensions within Europe on the issue. Some believe the US is concerned primarily with securing access to the energy reserves of the Caspian basin; others suspect Washington of using Turkish alignment with American policy (by way of Nato) to exert pressure on its European allies; still others see an attempt to weaken Europe by placing a Turkish economic, demographic and cultural millstone around its neck.
None of these hypotheses is wholly accurate or inaccurate. Nevertheless, they do reveal Europe's continuing contortions over its identity and its future. The Turkish question rarely figures in the foreground of European debate today, yet its spectre hovers over discussions of "European identity", "immigration" and the "Muslim question".
Political parties that call for an increasingly narrow view of Europe are gaining ground. These parties promote a strictly Judeo-Christian perspective of European history, mistrust of Islam, repressive hardline immigration policies and reject a Turkey they claim is overpopulated and excessively Muslim.
Europeans have become fearful. Economic crisis has brought with it calls for greater security and for protection of purchasing power, and from "foreigners" and "immigrants", who are seen as threatening financial stability and cultural homogeneity. Seen from this perspective, the Turkish question reveals both centripetal (a sense of "standing together" against outside threats) and centrifugal (a lack of shared strategic or foreign policy orientations) forces within the EU.
The arguments that locate Turkey outside European history and geography cannot withstand analysis. For more than four centuries the Ottoman empire shared and shaped the political and strategic future of the continent. During the late 19th and early 20th century, it became the "sick man of Europe". Even today, Turkey's historical and economic influence continues to be substantial.
No one is likely to be fooled by attempts to redraw the geographical boundaries of Europe for ideological or political purposes. If we were to apply the same criteria across the board, Cyprus would not be part of Europe. Such artificial distinctions ignore history, just as they ignore the realities of European society itself, where national origins, memories and cultures have long met and blended. Approximately 40% of Turkey's population is of European origin; millions of Turks have already acquired the nationality of a European country.
We must look elsewhere for the real issues, and we must look them in the eye. Instead of being obsessed by the question of culture and religion, European leaders would be better advised to develop a forward-looking strategic vision. Given its close ties with Iran, Syria, Iraq and central Asia, Turkey simply cannot be ignored. Its economic and military clout should be integrated into a European policy based on good-neighbourly relations and stability in Asia and the Middle East.
On two recent occasions the Turkish government has refused to bow to Washington, demonstrating a distinct capacity for independent action. Europe can hardly fault the US for its unilateral behaviour while failing to develop an autonomous foreign policy of its own. Where there should be a unified European voice, there is a discordant chorus. The US, China and India have no reason to fear European power. Divided, lacking a common policy, Europe succeeds only in working against itself.
Meanwhile, commercial ties between Turkey and the European countries have continued to expand. Between 1990 and 2003, Turkish imports from Europe grew threefold, while exports quadrupled. Better trade management within the framework of an EU-wide economic policy should make these ties stronger and more competitive. The countries of Europe are facing an acute, long-term manpower shortage. Writing in internal EU publications, some specialists now argue the labour market will require an additional 15 million workers in the next 20 years. Europe needs immigration. Instead of adopting restrictive immigration policies that would criminalise both undocumented and legal immigrants, the EU should be moving toward realistic and responsible regulation. In this light Turkey, with its human resources, would prove a powerful ally.
It is time for the countries of Europe to overcome their fear of Islam; time for them to stop turning Turkish EU membership into a cultural battleground. The only criteria to membership should be those of Copenhagen (1993) – and a European commission report (2004) mentioned that Turkey is very close to satisfying them. European politicians are ready to ignore their countries' long-term socioeconomic needs in order to respond to the short-term religious and cultural fears of their constituencies. Millions of women and men are already European and Muslim; Turkish EU membership would be nothing new, and present no dangers. Islam is, de facto, a European religion; culturally, politically and economically, Turkey forms an integral part of its future.
We need courageous European politicians who will develop a new vision of Turkish-EU relations, who will remind their citizens that Turkey, by virtue of its economic power, geography, history and natural position as go-between with the "Muslim world", is a major asset for Europe and for its future. Instead of waiting until historical necessity forces the EU to incorporate Turkey, European statesmen should be working together to develop a clear, reasonable policy leading to Turkish membership – one that would respect political principles and recognise cultural and religious diversity. Welcoming Turkey into the EU would mean Europe would have to reconcile itself with its own principles: the principles it has all too often betrayed in practice.
Organisation for Economic Co-operation and Development
The Organisation for European Economic Co-operation (OEEC) was founded in 1948 to help the Marshall Plan for the reconstruction of Europe after World War II. The headquarters was in the Chateau de la Muette in Paris, France. As the Marshall Plan was out of date , the OEEC focused on economic questions.
In the 1950s the OEEC provided the framework for negotiations aimed at determining conditions for setting up a European Free Trade Area, to bring the Common Market of the Six and the other OEEC members together on a multilateral basis. In 1958, a European Nuclear Energy Agency was set up under the OEEC.
Following the 1957 Rome Treaties to launch Europe's Common Market, the Convention on the Organisation for Economic Co-operation and Development was drawn up to reform the OEEC. The Convention was signed in December 1960 and the OECD officially superseded the OEEC in September 1961. It consisted of the European founder countries of the OEEC plus the United States and Canada, with Japan joining three years later.
A setting in which governments can compare policy experiences, seek answers to common problems, identify good practices, and co-ordinate domestic and international policies. The mandate of the OECD is broad, covering economic, environmental, and social issues. It is a forum where peer pressure can act as a powerful incentive to improve policy and implement "soft law" — non-binding instruments that can occasionally lead to binding treaties.
Exchanges between OECD governments flow from information and analysis provided by a secretariat in Paris. The secretariat collects data, monitors trends, and analyses and forecasts economic developments. It also researches social changes or evolving patterns in trade, environment, education, agriculture, technology, taxation and other areas. The OECD is also known as a premium statistical agency, as it publishes highly-comparable statistics on a very wide number of subjects.
Over the past several decades, the OECD has tackled a range of economic, social, and environmental issues while further deepening its engagement with business, trade unions and other representatives of civil society. Collaboration at the OECD regarding taxation, for example, have fostered the growth of a global web of bilateral tax treaties.
The Organisation for Economic Co-operation and Development (OECD) promotes policies designed:
to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy;
to contribute to sound economic expansion in Member as well as nonmember countries in the process of economic development; and
to contribute to the expansion of world trade on a multilateral, nondiscriminatory basis in accordance with international obligations.
Structure
Financing
The OECD's annual budget, currently around USD $510 million (EUR 342.9 million), is funded by the member countries based on a formula related to the size of each member's gross national product.The largest contributor is the United States, which contributes about one quarter of the budget, followed by Japan with 16%, Germany with 9% and the U.K. and France with 7%. The OECD governing council sets the budget and scope of work on a two-yearly basis.
Bodies
The OECD's structure revolves around 3 major bodies:
The OECD member countries, each represented by a delegation led by an ambassador. Together, they form the council.
The OECD Secretariat, led by the Secretary-General (currently Angel Gurria). The Secretariat is organised in directorates. There are some 2,500 agents in the OECD Secretariat.
The OECD committees, one for each work area of the OECD. Committee members are typically subject-matter experts from member and non-member countries. The committees commission all the work on each theme (publications, task forces, conferences, and so on). The committee members then relay the conclusions to their capitals.
Meetings
Every year, more than 40,000 delegates visit the OECD to attend committees and other meetings, principally organised by the OECD Secretariat. Former Deputy-Secretary General Pierre Vinde estimated in 1997 that the cost born by the member countries, such as sending their officials to OECD meetings and maintaining permanent delegations, is equivalent to the cost of running the secretariat. This ratio is unique among inter-governmental organisations. In other words, the OECD is more a persistent forum or network of officials and experts than an administration.
Noteworthy meetings include:
The yearly Ministerial Council Meeting, with the Ministers of Economy of all member countries and the candidates for enhanced engagement among the countries.
The annual OECD Forum, which brings together leaders from business, government, labour, civil society and international organisations. This takes the form of conferences and discussions and is open to public participation.
Thematic Ministerial Meetings, held among Ministers of a given domain (ie. all Ministers of Labour, all Ministers of Environment, etc.).
The bi-annual World Forum on Statistics, Knowledge and Policies, which doesn't usually take place in the OECD. This series of meetings has the ambition to measure and foster progress in societies.
In January 2008, the OECD opened a new conference centre to host these meetings.
Secretariat
The OECD Secretariat is organised in Directorates:
Centre for Entrepreneurship, SMEs and Local Development
Centre for Tax Policy and Administration
Development Co-operation Directorate
Directorate for Education
Directorate for Employment, Labour and Social Affairs
Directorate for Financial and Enterprise Affairs
Directorate for Science, Technology and Industry
Economics Department
Environment Directorate
Public Governance and Territorial Development Directorate
Representatives of the 30 OECD member countries meet in specialised committees to advance ideas and review progress in specific policy areas, such as economics, trade, science, employment, education or financial markets.
There are about 200 committees, working groups and expert groups. Some 40,000 senior officials from national administrations go to OECD committee meetings each year to request, review and contribute to work undertaken by the OECD secretariat. At home, they have on-line access to documents and can exchange information through a special network.
Member countries
There are currently 31 full members of the OECD. Of these, Mexico, Poland and Turkey (marked with *) are described as upper middle-income economies by the World Bank. The remaining 27 members are described as high-income economies.[6]
The European Commission participates in the work of the OECD alongside the EU Member States.
Relations with non-members and enlargement
OECD members Accession candidate countries Enhanced engagement countries
Currently, 25 non-members participate as regular observers or full participants in OECD Committees. About 50 non-members are engaged in OECD working parties, schemes or programmes. The OECD conducts a policy dialogue and capacity building activities with non-members (Country Programmes, Regional Approaches and Global Forums) to share their views on best policy practices and to bear on OECD's policy debate. The OECD's Centre for Co-operation with Non-Members develops and oversees the strategic orientations of the relations with non-members.
On 16 May 2007, the OECD Ministerial Council decided to open accession discussions with Chile, Estonia, Israel, the Russian Federation and Slovenia. OECD officially invited Chile as a new member country on 15 December 2009.The accession agreement will be signed on 11 January 2010. Chile will finally become a member in January 2010 after the ratification of the National Congress.
The OECD Ministerial Council of 2007 also decided to strengthen OECD's co-operation with Brazil, China, India, Indonesia and South Africa, through a process of enhanced engagement or as full members.[8] In July 2009, Folha de São Paulo reported that Brazil had refused an invitation from Secretary General Ángel Gurría to join the OECD, citing constraints that membership would entail as the primary reason.
The OECD will also explore the possibilities for enhanced co-operation with selected countries and regions of strategic interest to the OECD, giving priority to South East Asia with a view to identifying countries for possible membership.
Publishing
The OECD publishes books, reports, statistics, working papers and reference materials.
Books
The OECD releases between 300 and 500 books each year. Most books are published in English and French. The OECD flagship titles include:
The OECD Economic Outlook, published twice a year. It contains forecast and analysis of the economic situation of the OECD member countries.
The Main Economic Indicators, published monthly. It contains a large selection of timely statistical indicators.
The OECD Factbook, published yearly and available online, as an iPhone app and in print. The Factbook contains more than 100 economic, environmental and social indicators, each presented with a clear definition, tables and graphs. It is freely accessible online and delivers all the data in Excel format via Statlinks.
OECD in Figures, published yearly. A pocket-sized book full of the latest OECD statistics.
OECD Observer, an award-winning magazine with six issues a year. News, analysis, commentaries and data on global economic, social and environmental challenges. Contains book reviews and special section listing the latest OECD books, plus ordering information.
The OECD Communications Outlook and OECD Information Technology Outlook, which rotate every year. They contain forecasts and analysis of the communications and information technology industries in OECD member countries and non-member economies.
In 2007 the OECD published Human Capital: How what you know shapes your life, the first book in the OECD Insights series. This series uses OECD analysis and data to introduce important social and economic issues to non-specialist readers. Other books in the series cover sustainable development, international trade and international migration.
as static files or dynamic database views on the OECD Statistics portal,
and as StatLinks (in most OECD books, there is a URL which links to the underlying data).
Working papers
There are 15 working papers series published by the various directorates of the OECD Secretariat. They are available on SourceOECD, as well as on many specialised portals.
Reference works
The OECD is responsible for the OECD Guidelines for the Testing of Chemicals, a continually-updated document which is a de facto standard (i.e., soft law).
In addition, the OECD publishes and continually updates a model tax convention which serves as a template for bilateral negotiations regarding tax coordination and cooperation.
This model is accompanied by a set of commentaries which reflect OECD-level interpretation of the content of the model convention provisions. This model generally allocates the primary right to tax to the country from which capital investment originates (i.e., the home, or resident country) rather than the country in which the investment is made (the host, or source country). As a result, it is most effective as between two countries with reciprocal investment flows (such as among the OECD member countries), but can be very unbalanced when one of the signatory countries is economically weaker than the other (such as between OECD and non-OECD pairings).
Data not tracked
The OECD does not gather or track the total cumulative debt per capita of its members, although there is nothing in its charter to prevent this.
Personnel policy
As an international organisation the terms of employment of OECD staff are not governed by the laws of the country in which their offices are located. Agreements with the host country safeguard the organisation's impartiality with regard to the host and member countries. Hiring and firing practices, working hours and environment, holiday time, pension plans, health insurance and life insurance, salaries, expatriation benefits and general conditions of employment are managed according to rules and regulations associated with the OECD. In order to maintain working conditions which are similar to similarly-structured organisations, the OECD participates as an independent organisation in the system of co-ordinated European organisations, whose other members include NATO, the Western European Union and the European Patent Organisation.
Special programs and actions
Between 1995 and 1997, the OECD designed the much disputed Multilateral Agreement on Investment (MAI), which was rejected. A Swedish journalist discovered the agreement, which was until then clandestinely[citation needed] negotiated. It would have disburdened foreign investments of any claims on the part of the concerned regions and countries (also of social, environmental standards).[citation needed] In 1976, the OECD adopted the Declaration on International Investment and Multinational Enterprises, which was rewritten and annexed by the OECD Guidelines for Multinational Enterprises in 2000.
Among other areas, the OECD has taken a role in co-ordinating international action on corruption and bribery, creating the OECD Anti-Bribery Convention, which came into effect in February 1999. It has been ratified by thirty-seven countries.
The OECD has also constituted an anti-spamtask force, which submitted a detailed report, with several quite useful background papers on spam problems in developing countries, best practices for ISPs, e-mail marketers, etc., appended. It works on the information economy and the future of the Internet economy.
It has published the OECD Environmental Outlook to 2030, which shows that tackling the key environmental problems we face today — including climate change, biodiversity loss, water scarcity, and the health impacts of pollution — is both achievable and affordable.
Since 1998, the OECD has led a charge against what it deems "harmful" tax practices, principally targeting the activities of tax havens (while principally accepting the policies of its member countries which would tend to encourage tax competition).
These efforts have been met with mixed reaction: the primary objection is the sanctity of tax policy as a matter of sovereign entitlement. Liechtenstein's recent skirmish with German and U.S. tax authorities is a vivid illustration of what the OECD is encountering in this area.
Nevertheless, the OECD maintains a 'blacklist' of countries it considers uncooperative in the drive for transparency of tax affairs and the effective exchange of information, officially called "The List of Uncooperative Tax Havens".[ As of May 2009, no country is currently listed as a tax haven by the OECD.
On 22 October 2008, at an OECD meeting in Paris, 17 countries led by France and Germany decided to draw up a new blacklist of tax havens. The OECD has been asked to investigate around 40 new tax havens in the world where undeclared revenue is hidden and which host many of the non-regulated hedge funds that have come under fire during the 2008 financial crisis. Germany, France and other countries called on the OECD to specifically add Switzerland to a blacklist of countries which encourage tax fraud.
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