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EUROPEAN UNION A PEACEFUL EUROPE - THE BEGINNING OF COOPERATION

The European Union is a unique economic and political union between Twenty-Eight (28) European countries that together cover much of the continent. The predecessor of the EU was created in the aftermath of the Second World War. Initial steps were to foster economic cooperation: the idea being that countries that trade with one another become economically interdependent and so more likely to avoid conflict. The result was the European Economic Community (EEC), created in 1958, and initially increasing economic cooperation between six countries: Belgium, Germany, France, Italy, Luxembourg and the Netherlands. Since then, 22 other members joined and a huge single market (also known as the ‘internal’ market) has been created and continues to develop towards its full potential. What began as a purely economic union has evolved into an organization spanning policy areas, from climate, environment and health to external relations and security, justice and migration. A name change from the European Economic Community (EEC) to the European Union (EU) in 1993 reflected this.

Stability, a single currency, mobility and growth:

The EU has delivered more than half a century of peace, stability and prosperity, helped raise living standards and launched a single European currency: the euro. More than 340 million EU citizens in 19 countries now use it as their currency and enjoy its benefits. Thanks to the abolition of border controls between EU countries, people can travel freely throughout most of the continent. And it has become much easier to live, work and travel abroad in Europe. All EU citizens have the right and freedom to choose in which EU country they want to study, work or retire. Every member country must treat EU citizens in exactly the same way as its own citizens for employment, social security and tax purposes.

The EU’s main economic engine is the single market. It enables most goods, services, money and people to move freely. The EU aims to develop this huge resource to other areas like energy, knowledge and capital markets to ensure that Europeans can draw the maximum benefit from it.

Transparent and Democratic Institutions:

The EU remains focused on making its governing institutions more transparent and democratic. More powers have been given to the directly elected European Parliament, while national parliaments play a greater role, working alongside the European institutions. In turn, European citizens have an ever-increasing number of channels for taking part in the political process.

The EU is governed by the principle of representative democracy, with citizens directly represented at Union level in the European Parliament and member states represented in the European Council and the Council of the EU. The Eurozone is a monetary union between 19 members of the European Union. Euro is the official currency of the area and is the most tangible proof of European integration – the common currency in 19 out of 28 EU countries and used by some 338.6 million people every day. The benefits of the common currency are immediately obvious to anyone travelling abroad or shopping online on the websites based in another EU country.

EURO Banknotes:

There are two series of Euro banknotes. The first series consists of the denominations of 5, 10, 20, 50, 100, 200 and 500. The new Europa series currently comprises the denominations of 5, 10, 20 and 50 and will include the 100 and 200 banknotes in due course. The banknotes from both series are legal tender in the 19 countries of the Euro area. In May 2016, the ECB decided not to produce a Europa series 500 banknote, but the first series 500 notes still in circulation will remain legal tender and can therefore continue to be used as means of payment and store of value for an unlimited period of time. The 500 banknote, like the other denominations, can be exchanged at the national central banks of the Eurosystem indefinitely.

EURO Countries include:

Austria
Belgium
Cyprus
Estonia
Finland
France
Germany
Greece
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
The Netherlands
Portugal
Slovakia
Slovenia
Spain

Purpose of the EURO:

A single currency offers many advantages, such as eliminating fluctuating exchange rates and exchange costs. Because it is easier for companies to conduct cross-border trade and the economy is more stable, the economy grows and consumers have more choice. A common currency also encourages people to travel and shop in other countries. At global level, the euro gives the EU more clout, as it is the second most important international currency after the US dollar.

Managing the EURO:

The independent European Central Bank is in charge of monetary issues in the EU. Its main goal is to maintain price stability. The ECB also sets a number of key interest rates for the Euro area. Although taxes are still levied by EU countries and each country decides upon its own budget, national governments have devised common rules on public finances to be able to coordinate their activities for stability, growth and employment. Currently, the Schengen area consists of 26 European countries. Twenty-Two (22) out of Twenty-Six (26) are European Union States which are Belgium, Czech Republic, Denmark, Germany, Estonia, Greece, Spain, France, Italy, Latvia, Lithuania, Luxembourg, Hungary, Malta, Netherlands, Austria, Poland, Portugal, Slovenia, Slovakia, Finland and Sweden. While other four (04) non-European Union States are Iceland, Liechtenstein, Norway and Switzerland. Being part of the area without internal border controls means that these countries:

Do not carry out border checks at their internal borders (i.e. borders between two Schengen states)

Carry out harmonized controls, based on clearly defined criteria, at their external borders (i.e. borders between a Schengen state and a non-Schengen state

As a result, both EU citizens and non-EU nationals may freely travel within the Schengen area and are checked only when crossing the external border. Bulgaria, Croatia, Cyprus, Ireland, Romania and the United Kingdom are EU states that are not, or not yet, part of the Schengen area. This means that a flight from one of these states to a Schengen state is regarded as an external flight and is subject to border checks. However, EU citizens have the right to free movement when travelling within the EU, regardless of whether the country is part of Schengen or Not. In principle, when entering a non-Schengen EU state, EU citizens only undergo minimum checks to verify their identities on the basis of travel documents (passport or identity card).

Joining the Schengen area:

To join the Schengen area, the Schengen states have had to demonstrate that they are able to take responsibility for controlling the area’s external border on behalf of the other Schengen states and for issuing uniform short-stay visas (Schengen visas)

Efficiently cooperate with the other Schengen states in order to maintain a high level of security once internal border controls are abolished

Apply the set of Schengen rules, such as rules on land, sea and air border controls, visa issuing, police cooperation and personal data protection

Connect to and use the Schengen Information System (SIS) and the Visa Information System (VIS) Schengen states undergo periodic evaluations to control that they correctly apply the Schengen rules.

EU & PAKISTAN

The EU is working on a large number of development and humanitarian projects across Pakistan. Education and vocational training is the single largest sector for EU funding. Thousands of boys and girls in Khyber Pakhtunkhwa, Punjab and Sindh have improved access to schools due to EU funding. Higher quality of curricula and textbooks, and more professional teachers, are among the criteria for receiving EU funding. Bridges in Swat, pavements in Gilgit-Baltistan, drinking water schemes in Balochistan, child nutrition in Sindh, and improving public infrastructure and the delivery of essential services at community level are essential to many EU supported programs. Efficient water utilization, high quality seeds, effective veterinary care, better market access, reforestation, more efficient management of community rangelands, are all supported by the EU to improve food security and ensure a durable utilization of the natural resources. By supporting an improved budget management and more efficient tax collection and public administration, the EU supports the efforts of the Federal and Provincial Governments to further develop the skills of their staff and the functioning of their institutions in charge of the public accounts. The EU responded quickly and generously, assisting victims of the 2010 and 2011 monsoon floods, providing over 450 million Euro in humanitarian assistance in 2010 and tens of millions of euro again in 2011. The EU supports Afghan refugees staying in Pakistan and the local Pakistan communities acting as hosts for refugees, as well.

Political Relations:

The EU and Pakistan are important political partners. The Delegation represents the EU on a range of issues including: development cooperation, trade, humanitarian assistance, security and counter terrorism, energy, environment, health, transport, migration and climate change. Political and security relations are getting stronger, something which is underscored by the EU-Pakistan Five-year Engagement Plan. A Pakistan-EU Joint Commission meets annually to review the plan’s progress. Aim of this 5-year Engagement Plan, as stated

To build a strategic relationship by forging a partnership for peace and development rooted in shared values, principles and commitments

The EU-Pakistan engagement is to be based on the principles of the UN Charter. International norms and law, principles of mutual respect, mutual trust and mutual interest must underpin this cooperative approach.

Building inter alia on the Cooperation Agreement between the European Union and the Islamic Republic of Pakistan on Partnership and Development, the Engagement Plan should progressively expand, and raise the level of the EU-Pakistan relationship. The Strategic Dialogue would cover issues relating to security, democracy, human rights, good governance and socio-economic development, trade and investment, energy and sectoral cooperation. The EU and Pakistan are already committed to work together in the context of the group of “Friends of Democratic Pakistan” (FoDP), and to implement the conclusions of FoDP meetings, including the Ministerial chaired jointly by Pakistan and the EU in Brussels in October 2010.

ECONOMIC RELATIONS:

The EU supports Pakistan’s integration into the global economy. This is being achieved by:

Furthering bilateral trade

Promoting direct investment

Supporting institution building

Defending human rights, including the implementation of international labor standards

The EU also supports the Pakistan Government’s on-going economic reform agenda in consultation with the international financial institutions. In addition, the EU is planning to expand its dialogue and cooperation with Pakistan in relation to energy issues.

TRADE RELATIONS:

The EU is one of Pakistan’s largest trading partners and the biggest market for Pakistani exports. Overall EU-Pakistan trade reached 10.49 billion in 2015, up by 20.1% from 2013. Pakistan’s exports to the EU are heavily dependent on textile and clothing products, which account for 76% of all exports. The main imports from the EU are machinery and appliances (25.5%), followed by transport equipment (16.5%), and chemicals & pharmaceuticals (15.5%). In May 2007, the EU and Pakistan set up a Sub-Group on Trade under the Pakistan-EU Joint Commission. Since January 2014, Pakistan has benefitted from the EU’s Generalized System of Preferences (GSP), which has boosted Pakistan’s exports to the EU.

TECHNICAL AND FINANCIAL COOPERATION:

Development Cooperation:

Along with its member countries, the EU provides Pakistan with about 700 million per year for development and humanitarian assistance. Among other issues, the EU supports Pakistan in its efforts to tackle poverty, increase literacy, reduce child mortality, improve maternal health, combat major diseases, and ensure environmental sustainability.

Science and Technology:

The EU and Pakistan are committed to cooperating in science and technology. Horizon 2020 is the biggest EU research and innovation program ever, with nearly 80 billion of funding available over seven years (2014 to 2020). The EU Delegation has concluded a partnership with the Pakistan Science Foundation (PSF) to promote the Horizon 2020 program in Pakistan.

Support for Specific Issues:

A Multi Annual Indicative Programme (MIP) details the EU cooperation priorities with Pakistan for the years 2014-2020. The assistance provided through the EU Delegation focuses on delivering long-term support for Rural Development, Education and Governance. (See entries below for more details).

Rural Development:

Through the MIP, the EU is contributing more than 340 million to rural development in Pakistan. The funding program focuses on boosting economic growth and livelihoods in some of Pakistan’s poorest areas. Efforts will therefore be made to: