1.

The European Union

I. Introduction to the topic

The European Union (EU) is a supranational and intergovernmental union of 27 democratic
member states. It was established under that name in 1992 by the Maastricht Treaty.

Three countries, Switzerland, Iceland and Norway, have decided to stay out of the European
Union. In May 2004 ten applicant countries joined. The next phase of enlargement took place
in January 2007 with the accession of Bulgaria and Romania.



The Four Freedoms

The free movement of goods, services, labour and capital forms part of the substantive law of
the EU.
The Schengen Agreement abolished passport control and customs checks on many of the EUs
internal borders, creating a single space of mobility for EU citizens to live, travel, work and
invest.
While the free movement of goods, services and capital has more or less been implemented,
after the enlargement of 2004, only 3 old members Sweden , the UK and Ireland allowed
foreign workers to take on jobs without a work permit. Most of the old members temporarily
prohibit the inflow of foreign workers, because they are afraid of the mass migration of cheap
labour.

The single currency

The euro has been the official currency of the European Union in several member states since
1999, although coins and bank notes werent introduced until 1 January 2002. Some of the old
member countries decided against joining the eurozone at that time. Most of the new members
are preparing for the adoption of the euro. The single currency is managed by the European
Central Bank.


1. Countries wishing to accede to the eurozone have to meet certain requirements: the
Maastricht criteria:
Price stability: inflation must be under the average of the three countries with the lowest
inflation, plus 1.5%
The long-term interest rates should be within 2% of the average of the three countries
with the lowest inflation
The public deficit shouldnt exceed 3 % of GDP
The national debt shouldnt exceed 60 % of GDP






2. ERM II (Exchange Rate Mechanism II)

Joining ERM II ensures that the participating countries orient their policies towards stability and
convergence, which will help them in their efforts to adopt the euro. A central rate is determined
between the euro and each participating non-euro area currency, with a standard fluctuation
band of 15% above and below that rate, and each participating country has to hold its currency in
this band without the intervention of the National Bank for two consecutive years. Hungary has
not joined the system yet.

3. As a result of the introduction of the euro, transaction costs and exchange rate risks are
eliminated (there is no need to exchange the national currency) and prices become more
transparent. Apart from contributing to macroeconomic stability, it has further favourable
economic impacts by attracting foreign direct investment (FDI).


Common Agricultural Policy

The Common Agricultural Policy (CAP) is a protectionist policy guaranteeing a minimum price
to producers and also giving direct aid to them.
Some countries in the EU have larger agricultural sectors than others, notably Spain, Poland and
Portugal, and consequently receive more money under the CAP. They are net recipients.
Overall, certain countries make net contributions, notably Germany, the Netherlands and the
UK.
The enlargement of the EU in 2004 increased the number of farmers from 7 to 11 million, and it
also increased the agricultural land area by 30% and crop production by 10-20%.
The 2004 entrants into the EU gained immediate access to price support measures (export
refunds, intervention buying). However, direct payments to Hungary are being phased in over
10 years (2004-2013), starting at 25% of the rate paid to old member countries in 2004.



Further enlargement
After the last enlargement (when Romania and Bulgaria joined the EU) the union remained open,
but countries wishing to join have to comply with strict requirements. Croatia and Turkey are
the official candidate countries which have started accession negotiations with the EU.












Vocabulary exercises based on the introductory text

A. Match each word in the left-hand column with a word or phrase similar in meaning
from the list opposite.


1. applicant a. repayments

2. accession b. support

3. abolished c. joining as a new member

4. customs d. effects

5. internal e. place where import duties are charged

6. exceed f. candidate

7. transparent g. surpass

8. impacts h. clear

9. aid i. eliminated

10. refunds j. not foreign


B. For each word or phrase in the list below, find in the text a word or phrase similar in
meaning.

1. set up
2. expansion
3. necessary conditions
4. something owed
5. taking part
6. take and use, accept
7. as a result
8. countries receiving more money than they pay in (two words)

9. introduced gradually (two words)
10. act in accordance with a demand (two words)







II. Hungarian text

Exercise 1. Cover the English words and expressions given in the footnotes and try to guess the
English equivalents of the underlined parts of the Hungarian text.
Exercise 2. After checking your guesses against the footnotes, give an oral summary of the text
in English.


Prgban nem sietnek az eur tvtelvel
1


Npszabadsg, Szilvssy Jzsef 2008. janur 11

A cseh kormny
2
az v vgn tdolgozta azt a konvergenciaprogramot
3
, amelyet kt ve mg
Jiri Paroubek kormnya hagyott jv. A dokumentum 2010-et jellte meg
4
az eur csehorszgi
bevezetsnek idpontjul, a mostani terv azonban mr nem tartalmaz konkrt cldtumot
5
.
- Sokkal tbb krunk, mint hasznunk
6
szrmazna a felesleges sietsgbl
7
. Terveink szerint
legksbb jvre
8
teljestjk a maastrichti kritriumokat
9
, m a cl a kedvez folyamatok
hossz tv fenntartsa
10
- nyilatkozta Miroslav Kalousek pnzgyminiszter
11
.
A prgai trcavezet szerint az elkvetkez vekben
12
szmos kockzattal szembesl
13
az orszg.
Ezek kzl az els helyen emltette a demogrfiai gondokat
14
. - A nyugdjasok arnya
15

drmaian megnvekszik
16
a gazdasgi szempontbl aktv rteghez kpest
17
. A nyugdjkorhatrt
pedig csak fokozatosan emeljk
18
fel 65 vre - mutatott r a pnzgyminiszter.


1
adoption of the euro
2
Czech government
3
reworked the convergence programme
4
designated 2010
5
target date
6
more costs than benefits
7
unnecessary haste
8
next year at the latest
9
meet the Maastricht criteria
10
long-term maintenance
11
finance minister
12
in the coming years
13
faces risks
14
mentioned demographic problems
15
proportion of pensioners
16
will rise dramatically
17
compared to the active segment
18
raise retirement age gradually

1
.

o
l
d
a
l
,

s
s
z
e
s
e
n
:

2

A megfontolt lpsek hve
19
Zdenek Tuma, a cseh jegybank elnke
20
is, aki szerint az eur
bevezetsnek legalkalmasabb idpontja 2019 lehetne. - Akkor emlkeznk meg
21
az els
csehszlovk fizeteszkz
22
, a korona megszletsnek szzadik vforduljrl
23
, amelytl gy
mlt mdon bcszhatnnk. Radsul
24
akkorra
25
felteheten minden szempontbl
26
kszek
lesznk az eur bevezetsre, vagyis sokkal tbb lesz a hasznunk a vltsbl, mint a
kockzatunk - szgezte le a neves pnzgyi szakrt.
vatoskod hangok hallatszanak Pozsonybl
27
is, ahol a legismertebb szlovk kzvlemny-
kutat intzet
28
, az MVK legutbbi reprezentatv felmrse szerint
29
a lakossg 45.3 szzalka
jelentkeny mrtkben
30
a csehorszgi stratgia hatsra
31
is - szeretn nhny vvel
elhalasztani
32
az eur bevezetst. Csupn a megkrdezettek 22.7 szzalka tartan
33
a kitztt
idpontot, vagyis 2009. janur 1-jt. - Szlovkiban szntelenl ersdik a korona az eurhoz
kpest
34
. Ennek a hatsnak a megszntetse
35
leginkbb a szegny rtegeket sjtan
36
- rvelt
Jlius Brocka, a Magyar Koalci Prtjnak egyik alelnke
37
.


III. English text


19
in favour of carefully thought out steps
20
governor of the Czech National Bank
21
commemorate
22
currency
23
100th anniversary
24
moreover
25
by that time
26
in every respect
27
Bratislava
28
public-opinion research institute
29
according to a representative survey
30
to a large extent
31
affected by
32
postpone
33
would keep to
34
the crown is appreciating against the euro
35
elimination
36
would hit the poor layers
37
vice president argued





Prodi says Romanian influx took EU by surprise
By Guy Dinmore in Rome

Financial Times, 7 November 2007

1. Europe completely underestimated the scale of the exodus from Romania after the country's
accession to the European Union this year, Romano Prodi, Italy's prime minister, has said.
"Nobody could expect the scale of influx. Nobody was expecting the outflow from Romania
across Europe," he told the Financial Times in an interview.
2. The Italian government is battling a wave of public anger over uncontrolled immigration
following the brutal murder last week of a 47-year-old woman outside a Rome train station. A
Romanian man was subsequently arrested and charged with sexual assault, robbery and murder.
3. In response to the public outcry, the government issued a decree authorising local authorities
to expel EU nationals deemed a threat to public safety.
4. Asked how many Romanians had entered Italy since Romania entered the EU on January 1,
Mr Prodi replied: "Nobody knows." However, he said the figure of 500,000 people given by
Giuliano Amato, the interior minister, was an "exaggeration".
5. The majority of Romanians are in Italy legally and are employed in construction, day care
and night-shift work.
6. Mr Prodi defended the principle of free movement of EU citizens and said Italy desperately
needed imported labour. But he said the directive governing the free movement of EU citizens,
drawn up when he was president of the Commission, was inadequate.
7. As a staunch defender of EU enlargement while Commission president from 1999 to 2004,
Mr Prodi insisted that the expansion of the bloc had been more positive than expected.
8. "I used to repeat that enlargement is the only way of exporting democracy," he said.
Italy has expelled only a few EU citizens but nearly all of them are Romanians.
1420 n




Important terms

scale of the exodus the huge number of people leaving (Romania)
scale of influx the huge number of people entering (Italy)
outflow the huge number of people leaving (Romania) (the opposite of influx)
immigration when people come into a country in order to live and work there (emigration
is when you leave your native country to live in another country)
principle of free movement the idea that every citizen of the EU has the right to work
and live in another member state without being discriminated against on grounds of
nationality.
imported labour workers invited from other countries
expansion (of the bloc) same as enlargement. The bloc is the EU.

Extended vocabulary

underestimated: failed to realize how large something would be
wave of public anger: a sudden increase or surge in public anger
public outcry: a reaction of strong disapproval and anger shown by the public
issued a decree: published a ruling or law
expel: officially order to leave the country
deemed: considered (to be)
night-shift work: working at night on a regular basis as part of a job
directive: a legislative act of the EU that requires some action from member states
staunch defender: very loyal supporter
inadequate: not good enough, lacking in something


Comprehension questions


1. How did the EU react to the outflow of Romanians across Europe?



2. What are people in Italy angry about?



3. What did the Italian government do in response to public anger?



4. According to Mr Prodi, how many Romanians have arrived in Italy since Romania
entered the EU? And how many according to the interior minister?



5. What kinds of jobs do most Romanians in Italy work in?



6. Are most Romanians legally or illegally employed in Italy?



7. What does Mr Prodi believe about the principle of free movement?



8. What are Mr Prodis views about enlargement?



IV. Discussion questions

A. Discussion questions related to the article

1. Many West European countries, like Austria or Italy, are afraid of migrant workers from
Central Europe. Is this something they should be worried about or is it something they should be
happy about? Justify your answer.

2. Do you think that migrant workers are good for an economy, and if so, what conditions or
rules should be applied to letting in foreign immigrants, in order to fight illegal immigration?

3. What is your opinion about imposing labour restrictions on a group of people (Bulgarians,
Romanians) who are entitled to live in another member state for 3 months without a visa, but
arent allowed to work there? Will this only encourage working illegally?


B. Additional discussion questions

1. Which countries are involved in the further enlargement of the EU? Why have certain
European countries decided to be neutral?

2. What do you think are some of the advantages of EU membership?

3. What are the conditions for adopting the euro? What advantages do you see in the common
currency?




V. Role-play



1. Hope for the middle-aged unemployed

Student:
You are an employment consultant who specialises in helping middle-aged unemployed people to
transition back into the workplace. A middle-aged man / woman comes to you for advice on how
to go about looking for a job.

Examiner:
You have been out of the workforce for many years, but would like to start working again. You
dont know where to begin, and are unsure if people at your age are even hireable. Ask the
consultant for advice on getting a job.

2. Small companies versus big companies

Student:
Your best friend works as a middle manager at a small Hungarian company. He has been
approached by a head-hunter who is offering a higher-paying management job at a multinational
company. Now he asks for your advice. Try to convince your friend about the advantages of
working in a big company.

Examiner:
You are a middle manager at a small Hungarian company. Youre successful and love your job.
But a head-hunter is offering you a lot more pay at a multinational. You dont know if you
should take the job or not, and so you ask your best friend for advice.