2.5 Maastricht Treaty

The Maastricht Treaty (The Treaty on European Union, TEU)

(I) Introduction

The Treaty has 7 Titles, several Protocols (including the agreement on social policy, the "Social Chapter" agreed with 11 of the then 12 member states, excluding the UK) and several Declarations. The Titles are listed below.

The 7 Titles of the Treaty on European Union (TEU)

Number	Name	Significance
I	Common Provisions
II	Provisions amending the Treaty establishing the European Economic Community (the 1957 Treaty of Rome, or EEC Treaty) with a view to establishing the European Community (Treaty of the European Community, TEC, or EC Treaty)	Formally renamed the EEC the European Community, which becomes the 1^st pillar of the EU
III	Provisions amending the Treaty establishing the European Coal and Steel Community (ECSC) (the 1951 Treaty of Paris)	Concerned with updating the ECSC
IV	Provisions amending the Treaty establishing the European Atomic Energy Community (Euratom, also signed in Rome in 1957)	Concerned with updating Euratom
V	Provisions on a Common Foreign and Security Policy (CFSP)	Established the, inter-governmental, 2^nd pillar of the EU
VI	Provisions on cooperation in the fields of Justice and Home Affairs (JHA)	Established the, inter-governmental, 3^rd pillar of the EU
VII	Final Provisions

Source: FCO, Treaty on European Union (including the Protocols and Final Act with Declarations), HMSO, Cm 1934, 1992.

The Protocols included:

On Economic and Monetary Union:

On the Statute of the European System of Central Banks and of the European Central Bank (ECB).
On the Statute of the European Monetary Institute (EMI).
On the Excessive Deficit Procedure.
On the Convergence Criteria Referred to in Article 109j of the Treaty Establishing the European Community.
On the Transition to the Third Stage of Economic and Monetary Union (EMU).
On Certain Provisions Relating to the United Kingdom (the UK "opt-out" of EMU).

On the Social Chapter:

On Social Policy for 11 of the 12 member states excluding the UK.
On Social Policy Concluded Between the Member States of the European Community With the Exception of the UK.

The Maastricht Treaty was concerned with both Economic and Monetary Union and European Political Union:

The amendments to the Treaty of Rome (EEC Treaty), renaming the EEC the European Community, with the emphasis on Economic and Monetary Union (EMU).
The creation of the 3-pillared EU, comprising the European Community (1^st pillar) and two intergovernmental pillars on foreign (2^nd pillar) and home affairs (3^rd pillar): the creation of "European Political Union" (EPU).

The Maastricht Treaty provided the European Community with a legal personality, as indeed the EEC had a legal personality under the Treaty of Rome. But it did not provide the EU with a legal personality.

(II) Key provisions

Establishment of the EU with a 3-pillar structure:

The European Community (EC) (Pillar 1);
Common foreign & security policy (CFSP) (Pillar 2);
Justice & home affairs cooperation (JHA) (Pillar 3).

The 2^nd and 3^rd pillars were by "intergovernmental cooperation", which meant:

They were conducted by national governments through the Council of Ministers & the European Council.
Directives & Regulations (EC laws) could not be issued.
No formal powers were given by them to the supranational EU institutions - the Commission, EP & European Court of Justice (ECJ).

Establishment of EU citizenship, in other words, the establishment of new rights for citizens of member states of the EU as citizens of the EU.
Establishment of a timetable & conditions for Economic and Monetary Union (EMU), including the single currency.
The timetable for EMU was:

Stage 1: cooperation and coordination in economic and monetary fields, which had already begun in July 1990, as agreed at the Madrid summit (in 1989).
Stage 2: laying down the basic institutional and operational rules necessary for the realisation of EMU - to start in January 1994.
Stage 3: the move towards irrevocably locked together exchange rates, leading to a single currency - to start in January 1999, at the latest.

Under EMU a "cohesion fund" was to be provided for the 4 poorer members - Spain, Portugal, Ireland and Greece.
Further extension of EC competence: to consumer protection, public health, education and vocational training, culture and "trans-European networks" (TENs).
There was also the extension of existing powers in environmental policy, industrial policy & R&D.
Agreement by 11 member states (excluding the UK) on the Social Chapter. The Protocol on Social Policy and an Agreement on Social Policy (The Social Chapter) was appended to the Maastricht Treaty.
Further extension of powers of European Parliament (EP): to extend the legislative powers of the EP in EC decision-making, the appointment of the Commission & in external relations policy. Co-decision was introduced.
The European Council was identified as responsible for providing the EU with the impetus for development and for defining the EU's general political guidelines.
The use of QMV in the Council of Ministers was extended.
The Committee of the Regions was created.
The Court of Auditors was upgraded to a full Community institution.
Other institutional changes: included the increase in the commission's term of office from 4 to 5 years, and granting to the European Court of Justice (ECJ) of the right to impose fines on member states for failing to implement its judgments.
The new intergovernmental Common Foreign & Security Policy (CFSP) had a limited provision for QMV & a statement of intent to build a common defence policy. The Maastricht Treaty, therefore, formally initiated the development of common foreign & defence policies, with the defence issues initially subcontracted to the WEU.
The new intergovernmental Justice & Home Affairs (JHA) pillar was concerned with police and judicial cooperation in civil and criminal matters on matters such as asylum policy and immigration & policing.
It established the principle of subsidiarity - the principle that decisions should be taken at the lowest level consistent with effective action within a political system.

The main aims of the Maastricht Treaty can, therefore, be broadly identified as:

To promote economic & social progress in the EU through the creation of a single market without frontiers through the strengthening of economic & social cohesion & through the introduction of EMU.
To assert the European identity on the international scene, particularly through the implementation of a common foreign and defence policy.
To protect the interests of the nationals of member states through the introduction of European citizenship.
To develop close cooperation between the member states on justice & home affairs.
To ensure the effectiveness of the mechanisms & institutions of the Community.

Main sources: Steven McGiffen, The European Union: a critical guide, (Pluto Press, 2001; Dick Leonard, Guide to the European Union (8^th edition), Economist, 2002).

RL, February 2007