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The founding and evolution of the EU

Hundreds of people from West and East Berlin standing on the wall near Brandenburg Gate.
The fall of the Berlin Wall in 1989 was a defining moment in history. Known in Germany as the turning point, it took just three years after the wall came down to adopt the Maastricht Treaty establishing the European Union. © Wikimedia

The Maastricht Treaty established the European Union, with the European Communities making up the first of three pillars. New additions were a common foreign and security policy as the second pillar and greater cooperation in justice and home affairs as the third. The Treaties of Nice and Amsterdam were later added to the existing set of agreements, in part due to the upcoming expansion of the EU to the east.

In 1989, a fundamental and unexpected change occurred on the continent: Hungary opened its borders to the West, and the Wall fell in divided Berlin. This was followed by the dissolution of the Soviet Union in 1991. Following the end of the Cold War and the reunification of Germany, the European Union was created in 1992 by the Treaty of Maastricht. This treaty also introduced the three-pillar structure, with the European Communities (EC) as the first pillar, adding the Common Foreign and Security Policy (CFSP) as the second pillar, and Justice and Home Affairs (JHA) as the third pillar, which enhanced cooperation in the area of law enforcement and home affairs. In the first pillar the decisions of the EC were mostly made according to the principle of qualified majority voting, whereas in the second and third pillars intergovernmental cooperation was the rule and decisions were reached unanimously.

The economic and monetary union

Map of the economic and monetary union.
Map of the economic and monetary union. © FDFA

The Treaty of Maastricht also initiated an economic and monetary union (EMU). The euro was introduced as an accounting currency in 1999. From that date the European Central Bank operated a single monetary policy for the entire euro area. At the beginning of 2002 the euro was introduced as a cash currency and established itself – at least until the debt crisis of 2010 – as a strong and stable single currency. Today it is the official currency in all 'old' EU states except the United Kingdom, Denmark and Sweden. Of the member states that have joined since 2004, the first country to meet the necessary convergence criteria was Slovenia, which entered the euro area in 2007. Cyprus and Malta joined in 2008, followed by Slovakia in 2009, Estonia in 2011, Latvia in 2014,  Lithuania in 2015 and Croatia in 2023. There are now 20 participating countries in the euro area. Within the framework of an intergovernmental 'fiscal pact' signed in March 2012, the 25 EU members committed themselves to strengthening budgetary discipline and introducing a debt brake. Only the United Kingdom and the Czech Republic have remained outside the pact.

The Treaties of Nice and Amsterdam

In 1995, Austria, Finland, and Sweden – all former members of the European Free Trade Association (EFTA) – joined the EU. This brought the total number of EU member states to 15. The Treaties of Amsterdam (1997) and Nice (2001) amended the Treaty of Maastricht with the aim of making the EU institutions work more efficiently, particularly in the run-up to eastern enlargement, which was how the inclusion of numerous Central and Eastern European states was known. The treaties simplified the decision-making process within the EU by replacing the principle of unanimity with a qualified majority in many areas. The joint decision-making power of the European Parliament was also considerably strengthened.

Schengen 1995 / Dublin 1997

The Schengen Agreement came into force in March 1995, allowing the first European states to halt their border controls and to increase inter-state judicial and police cooperation. The Dublin Convention entered into effect two years later, ensuring that each asylum application is only processed in one participating state in the Dublin area. The Dublin criteria establish which country is responsible for dealing with an application. The cooperation between European states known as Schengen/Dublin – in the fields of justice, police, visas and asylum – had been initiated as early as 1985 by five member states of the then EC.

European Security and Defence Policy (ESDP)

In light of the bloodshed in the Balkan wars, the European Council in Cologne in 1999 decided on a common European Security and Defence Policy (ESDP). The EU thereby created the necessary resources to respond more effectively to future conflicts. In particular, the ESDP takes the form of civilian and military peacekeeping operations, also beyond the European continent. The EU has described itself as a global actor prepared to take on more responsibilities.

Milestones

In a referendum, the British population decides to withdraw from the European Union. Two years later, on 31 January 2020, the UK officially leaves the EU.

Croatia becomes the EU’s 28th member state on 1 July 2013.

Bulgaria and Romania join the EU on 1 January 2007, raising the number of member states to 27. At the same time, Slovenia becomes the 13th EU member state to introduce the euro.

On 1 January 2004, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia join the EU, bringing its membership up to 25 European countries.

On 1 January 2002, uniform euro currency notes and coins are issued in 12 EU countries. With this, the euro replaces the national currencies. Denmark, Sweden and the United Kingdom do not join the monetary union.

The EU member states sign the Treaty of Nice on 26 February 2001. It is aimed at reforming decision-making processes in the EU in view of future enlargements. It contains the Charter of Fundamental Rights of the EU. The Treaty enters into force on 1 February 2003.

The European Council develops a new strategy to promote employment within the EU, modernise the economy and strengthen social cohesion in Europe. The Lisbon Strategy aims at making the EU the most competitive and dynamic economy in the world by 2010.

On 1 January 1999, eleven EU member states introduce the euro for non-cash transactions on the financial markets. The exchange rates for national currencies are irrevocably fixed. The European Central Bank assumes responsibility for the EU’s monetary policy.

The member states sign the Treaty of Amsterdam on 2 October 1997, which extends and reforms the Treaty of Maastricht. The application of the qualified majority vote is extended to more areas and the EU Parliament is given more far-reaching powers, thereby reinforcing the democratic legitimacy of the EU. The division of powers between the EU and its member states is also better defined. The Schengen agreement on the abolition of border controls is integrated in EU law, as is the Stability and Growth Pact. The treaty enters into force on 1 May 1999.

Austria, Finland and Sweden leave the EFTA and join the EU on 1 January 1995. The EU now comprises 15 member states. The Norwegian electorate rejects EU accession for a second time.

In December 1991, the European Council (heads of state and government) approves a new treaty in Maastricht. It forms the foundation of a common foreign and security policy, closer cooperation in the areas of justice and home affairs as well as an economic and monetary union with a common currency. The EEC becomes the European Community (EC). The Treaty on European Union (EU Treaty) is signed on 7 February 1992 and enters into force on 1 November 1993.

The Berlin Wall is pulled down on 9 November 1989, ending the East-West division of Europe’s political landscape between the systems of democratic market economy and communist planned economy. This leads to the reunification of Germany in October 1990 and to the democratisation of the countries in central and eastern Europe. The Soviet Union collapses in December 1991.

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Letzte Aktualisierung 16.05.2023