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Further information: History of the European Union Germans standing on top of the Berlin Wall at the Brandenburg Gate, November 1989; it would begin to be torn apart in the following days. Following the end of the Cold War, the European Economic Community pushed for closer integration, co-operation in foreign and home affairs, and started to increase its membership into the neutral and former communist countries. In 1993, the Maastricht Treaty established the European Union, succeeding the EEC and furthering political co-operation. The neutral countries of Austria, Finland and Sweden acceded to the EU, and those that didn't join were tied into the EU's economic market via the European Economic Area. These countries also entered the Schengen Agreement which lifted border controls between member states.[83] Another major innovation in the Maastricht Treaty was the creation of a single currency for most EU members. The euro was created in 1999 and replaced all previous currencies in 2002. The most notable exception to the currency union was the United Kingdom, which also did not participate in the Schengen Agreement. However, the EU's desire to work on foreign policy was undermined due to its failure to act during the Yugoslav wars, and its division over whether to support the United States lead Iraq War. European NATO countries were frequently criticized by the United States for insufficient military expenditure, and for not sending enough troops to support NATO's war in Afghanistan. Europe meanwhile decided to reap the benefits of its post–Cold War peace dividend and instead supported the development of international law, for example through the International Criminal Court. In 2004, the EU enlarged to include 10 new countries, eight developing former-communist countries (including three which were part of the Soviet Union itself) along with Malta and the divided island of Cyprus. These were followed by another two former-communist countries in 2007. NATO likewise expanded to include these countries, despite protestations from Russia which was growing more assertive. Russia engaged in a number of bilateral disputes about gas supplies with Belarus and Ukraine which endangered gas supplies to Europe. Russia also engaged in a minor war with Georgia in 2008. However, with the influx of new members in 2004, together with awarding Turkey candidate status, public opinion in the EU turned against enlargement. This was reflected in part by the rejection of the European Constitution in referendums in France and the Netherlands. The constitution's replacement, the Treaty of Lisbon, was also voted down by the Irish before they reversed their decision in 2009. This caused the period up to 2009 to be dominated by "institutional navel gazing" by the EU and a rise in euroskepticism in some states. The Lisbon Treaty did however enhance the EU's capacity for foreign policy action. Opposition to Turkish membership of the EU developed in parallel to an increasing unease as to how Europe deals with Islam. Al Qaeda inspired attacks in London and Madrid, together with a perception that Europe's large Muslim minority was not integrating, contributed to a change in public opinion in some countries. Belgium enacted a ban on the Burqa, also pursed by France, while Switzerland banned minarets. The Danish publication of cartoons portraying prophet Muhammad further damaged relations with Europe's Muslim population, and the Islamic world at-large. In 2008, the EU's eurozone entered its first recession, sparking a debate about its future. Due to the limited ability of the smaller EU nations (most notably Greece) handling their debts in the recessionary climate, member nations agreed to set up a bail out mechanism and study proposals for more fiscal integration. Portugal, Italy, Ireland, Greece, Spain (the so-called PIGS nations) have large debts. In May 2010, the German parliament agreed to loan 22.4 billion euros to Greece over three years, with the stipulation that Greece follow strict austerity measures. See European sovereign-debt crisis. |
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