Harvard Model United

Nations 2023

A Background Guide for

European Union
 TABLE OF CONTENTS

Letter from the Secretary-General................................................................................ 3

Letter from the Under-Secretary-General.................................................................... 4
Letter from the Director.............................................................................................. 5

Introduction................................................................................................................ 6
History of the Committee........................................................................................... 6

Committee Outline.....................................................................................................9
Topic Area A: The Future of the Euro........................................................................ 10
Case Study: The Eurozone Crisis............................................................................... 11
Proposed Solutions.................................................................................................... 23
Potential Bloc Positions............................................................................................. 24
Questions a Resolution Must Answer........................................................................ 25

Closing Remarks....................................................................................................... 26
Position Paper Requirements..................................................................................... 27
Endnotes....................................................................................................................28
 HARVARD MODEL UNITED NATIONS 2023
A LETTER FROM THE SECRETARY-GENERAL

Dear Delegates,

Welcome to your first step of preparation for Harvard Model United Nations 2023! The
background guide you are about to read is the product of months of research and writing.
Ruhi Nayak Your director began this process last February and has been looking forward to seeing this
Secretary-General topic debated ever since. In addition to the background guide, you will find sections at the
end of this document directing you to other resources you may find helpful for further
Alexander E. Chan research. Background guides give you an introduction to your topic and serve as the best
Director-General
resource for gaining general knowledge of a committee topic, but delegates will be expected
Angela Dela Cruz to individually conduct further research on their country, their country’s position, and
Under-Secretary-General potential solutions to the problems posed by the committee topic.
Administration
As the culmination of your research, you are asked to compose a position paper for your
Kaleena R. Roeva country. These position papers will then be shared with your director for review. Instructions
Under-Secretary-General
Business for writing position papers will also be found in this guide. Additionally, delegates in the
Specialized Agencies will have the opportunity to prepare their crisis plans by composing
Justin S. Xu crisis papers. Crisis papers will allow delegates to write about the covert goals and strategies
Comptroller their character or country hopes to enact during committee. These confidential documents
will be seen only by committee staff members. I hope this element of the Specialized
Kaylee E. Kim Agencies committee experience enhances every delegates’ confidence in their preparation.
Under-Secretary-General
Operations At the end of this guide, you will be able to read further instructions as to what to include
in crisis papers.
Aaron G. Eudaimon
Under-Secretary-General I could not be more excited to welcome you all to Boston this January. This year, we want
General Assembly to impart the message that by working together, especially through what many perceive as
divided times, delegates can find common ground and make our world a better place. Please
Katherine Y. Zhu
Under-Secretary-General
know we understand that delegates make sacrifices to fully participate in HMUN, often
Economic and Social placing important assignments, social engagements, family commitments, and much more
Council on hold for four days. We want to take the time to understand the varying backgrounds
we are all coming from and bridge these divides through collaboration and understanding.
Samuel Guerrero As your Secretary-General, I am here as a resource for you should you have any questions.
Under-Secretary-General
Regional Bodies Please feel free to reach out to me directly at [email protected].

Sincerely,

Ruhi Nayak
Alexander P. Glynn
Under-Secretary-General
Specialized Agencies

Ruhi Nayak
Secretary-General
Harvard Model United Nations 2023

59 Shepard Street, Box 205

Cambridge, MA 02138
Voice: 617-398-0772
Fax: 617-496-4472
Email: [email protected]
www.harvardmun.org
 HARVARD MODEL UNITED NATIONS 2023
A LETTER FROM THE UNDER-SECRETARY GENERAL

Dear Delegates,

Welcome to the Regional Bodies at Harvard Model United Nations 2023! I am so excited to
meet all of you and see the unique approaches you use to address a variety of pressing issues
Ruhi Nayak gripping the international community.
Secretary-General
The Regional Bodies organ prides itself on having a diverse set of committees that are
Alexander E. Chan tailored to address a variety of regional problems. The directors of each committee have a
Director-General
particular interest in the topics being debated, and it has been wonderful to work with them
Angela Dela Cruz to help plan a conference that will no doubt be eye-opening, engaging, and an incredible
Under-Secretary-General learning opportunity for you, the delegates. As delegates, I would encourage you to consider
Administration the impact that you have, not just on yourselves, but on the directors, assistant directors, and
the HMUN community. With each iteration of HMUN, I am increasingly impressed by the
Kaleena R. Roeva unique perspectives brought to committee, which are reflected in the working papers and
Under-Secretary-General
Business resolutions that are debated.

Justin S. Xu Lastly, I would like to introduce the purpose of this background guide. The information
Comptroller contained within this guide reflects several months of research and writing by your directors.
It is intended to familiarize you with the themes that your directors would like you to debate
Kaylee E. Kim thoroughly, while also providing information as to why the issue is so pressing. Though the
Under-Secretary-General
Operations
guides are quite thorough, they are designed to kick-start your research, rather than be an
all-inclusive guide to the topics. Though the topics that are central to this guide are often
Aaron G. Eudaimon salient, polarizing issues, the directors have worked hard to remove their personal biases to
Under-Secretary-General allow for an inclusive debate. As delegates, I would also encourage you to be as independent
General Assembly as possible, making sure to always reflect your country’s position rather than your own.
Katherine Y. Zhu The topics being debated in this year’s Regional Bodies committees contain the potential
Under-Secretary-General
Economic and Social
to remodel the way you, as delegates, interpret international issues of great importance.
Council Whether this is your first model UN experience or your last high school conference, I hope
that participating in HMUN 2023 will be an informative, transformational experience.
Samuel Guerrero I encourage you to step outside of your comfort zone and embrace the uncertainty that
Under-Secretary-General naturally comes with being a delegate at a model UN conference.
Regional Bodies

If at any point you have questions, comments, or concerns before the conference begins,
Alexander P. Glynn
Under-Secretary-General please do not hesitate to reach out to me at the email attached below. Otherwise, I am
Specialized Agencies looking forward to seeing you all in January!

Sincerely,

Samuel Guerrero
Samuel Guerrero
Under-Secretary-General for the
59 Shepard Street, Box 205 Regional Bodies
Cambridge, MA 02138
Voice: 617-398-0772 Harvard Model United Nations 2023
Fax: 617-496-4472
Email: [email protected]
www.harvardmun.org
 HARVARD MODEL UNITED NATIONS 2023
A LETTER FROM THE DIRECTOR

Dear Delegates,

Welcome to the European Union (EU)! My name is Taryn, and I’m incredibly excited to be
your director at HMUN 2023!
Ruhi Nayak
Secretary-General Just a brief introduction: I’m a junior at Harvard College studying Applied Mathematics and
Economics, and I’m from Kings Park, New York, a small town on Long Island. Through my
Alexander E. Chan studies, I’ve developed interests in political economy, trade policy, and international relations,
Director-General
which I hope to share with you through this year’s EU committee! Outside of my classes, I’m
Angela Dela Cruz an editor for the Harvard College Economics Review, a member of Harvard’s Intercollegiate
Under-Secretary-General MUN team, and a member of the Harvard Undergraduate Automotive Society. I’m also
Administration serving as one of the Directors of Finance at HNMUN 2023, HMUN’s sister conference!
In my free time, I love watching Formula One races, discovering new music, and reading!
Kaleena R. Roeva
Under-Secretary-General
For this committee, my aim is to delve into the complexity of the Euro. Due to its nature
Business
as a singular currency for every member of the Eurozone, it is subject to unique challenges.
Justin S. Xu It has been put to the test in the past during the Eurozone Crisis, but now once again
Comptroller faces increased attention as the global economy continues to recover from the Coronavirus
outbreak amidst a flareup in international tensions. Now, it is upon you, delegates, to find a
Kaylee E. Kim way to ensure the stability of the Euro, or maybe even entertain an alternative.
Under-Secretary-General
Operations
As with every committee I’ve directed so far, I hope that this one provides you all with an
Aaron G. Eudaimon incredibly engaging experience through which you can grapple with real-world issues while
Under-Secretary-General having the opportunity to work on your own skills as a delegate. It was committees like these
General Assembly that drew me to MUN as a freshman in high school and allowed me to explore the complex
world of international relations, and I hope that my committee does the same for you.
Katherine Y. Zhu
Under-Secretary-General Of course, if you have any questions or concerns about the committee, please reach out to me
Economic and Social
Council at [email protected]! I can’t wait to meet you all in committee in January!

Taryn O’Connor
Samuel Guerrero Sincerely,
Under-Secretary-General
Regional Bodies

Alexander P. Glynn
Under-Secretary-General
Specialized Agencies Taryn O’Connor
Director for the European Union
Harvard Model United Nations 2023

59 Shepard Street, Box 205

Cambridge, MA 02138
Voice: 617-398-0772
Fax: 617-496-4472
Email: [email protected]
www.harvardmun.org
6 Background Guide: European Union

INTRODUCTION

Topic Introduction: The Future of Predecessors & the Maastricht

the Euro Treaty
Since its inception via the Maastricht Treaty in The predecessors to the EU date back to the
1992, the European Union has served to cre- aftermath of World War II, largely due to efforts
ate and maintain economic and political unity to create further union amongst the nations of
amongst its numerous member states. One of Europe. The earliest of these predecessors, the
the key measures through which this unity was North Atlantic Treaty Organization (NATO)
achieved was the Euro, which is currently uti- and the Council of Europe, continue to oper-
lized by 19 of the 27 current member states of ate today as international organizations separate
the EU, and is set to be used by 7 more mem- from the EU1. However, while these institutions
bers in the future. Through the adoption of a provided Europe with political and military
common currency, these 19 countries, which unity for select members, it was believed that
are more commonly referred to as the Eurozone, Europe would further benefit from economic
have been able to facilitate more trade amongst integration. This led to the creation of the Euro-
each other and with other nations. Addition- pean Coal and Steel Community (ECSC), the
ally, the adoption of the Euro has generally first direct predecessor to the EU, in 19522. This
allowed for more stable economic conditions by community, which initially consisted of the na-
eliminating exchange rates between Eurozone tions of Germany, France, Italy, the Netherlands,
members and having a singular monetary policy Belgium, and Luxembourg, would unite their
be implemented for all members. However, the coal and steel industries, allowing for the pre-
Euro is still susceptible to stability issues, as vention of the creation of war weapons3 and the
evidenced by the Eurozone crisis, which contin- reduction of trade barriers amongst the six mem-
ues to have an impact on the Euro to this day. ber states4. In the following years, the six nations
Now, due to the economic aftermath of COVID would proceed to build on their existing cooper-
and the ongoing Russian invasion of Ukraine, ation by signing the Treaties of Rome, paving the
the Euro may once again face increased stability way for the creation of the European Economic
issues, posing a threat of economic destabiliza- Community (EEC) and the European Atomic
tion for some of the EU’s member states. In Energy Community (Euratom) in 19585. Similar
this committee, you will be charged with debat- to the ECSC, both the EEC and Euratom would
ing and determining the best course of action further connect the economic activity of the six
with regards to the Euro. As members of the member states, with the EEC creating a com-
EU, you will explore the various pros and cons mon market and Euratom creating a free market
of the Euro as a common currency, and con- for atomic energy6. With the establishment of
sider whether the Eurozone should continue to these communities, the six nations also sought
expand, change its criteria for joining, or even if to establish a forum to manage their shared
the EU should abandon the Euro altogether. economic outputs. This led to the creation of the
European Parliamentary Assembly, which would
HISTORY OF THE EUROPEAN eventually become the European Parliament, one
UNION of the key institutions of today’s EU7.
United by the three organizations, Germany,
France, Italy, the Netherlands, Belgium, and
Luxembourg would begin to undertake joint
economic action, allowing for increased eco-
nomic growth. Such actions would include the
establishment of a common agricultural policy
 Harvard Model United Nations 2023 7

that would result in the six nations sharing was adding a newly formed democracy to its
control over agricultural production, as well as membership, establishing the precedent that new
increased cooperation with other nations outside members should adhere to democratic standards.
the EEC8. The first of these international agree- At the same time, the EC & its own institu-
ments, the Yaoundé Convention, would establish tions became more directly democratic, with
trade relations between the EEC and 18 nations the members of the European Parliament be-
in Africa and set the precedent for future inter- ing elected by the citizens of member countries,
national trade agreements involving the EEC instead of being elected by the parliaments of the
and eventually, the EU9. EC’s member states16.
With the success of the EEC, Euratom, and Heading into the 1990s, the EC sought to create
ECSC, the six member states eventually signed further union amongst its member states. The
a merger treaty in 1965, which would unite the initial move to lift all tariffs and customs was
three organizations under one executive. From helpful in facilitating trade, but it was still held
here, the three organizations would come to back by the varying regulations established by
be known as the European Communities (EC), member states17. The idea of a singular cur-
and would be run by a singular commission and rency amongst the member states also began to
council, as opposed to each organization having float, largely due to its ability to create greater
its own executive bodies10. With the EC further economic unity amongst the EC18. Additionally,
uniting the member states, they moved to lift all with the end of the Cold War and the fall of the
tariffs and customs duties on trade between each USSR, the EC’s member states also sought to
other, setting the seeds for what would eventu- create stronger foreign & security policies19.
ally become the EU Customs Union11. The results of this push for unity were the
Through the 1970s and 1980s, the EC would be establishment of the common market and the
put to the test by economic and political crises creation of the Maastricht Treaty, which would
and begin to increase its membership. In 1973, establish the European Union (EU). With the
it underwent its first expansion in membership creation of the common market in early 1993,
with the United Kingdom, Ireland, and Den- almost all barriers to trade were lifted, and the
mark all opting to join as members at the begin- members of the EC adopted the same regula-
ning of the year12. With its expanded member- tions to allow for the free passage of people,
ship, the EC would now begin to implement goods, services, and money across borders20. The
programs that would provide financial support common market was then complemented by
to poorer member nations that would allow for the Maastricht Treaty, which created the EU by
the economic development of these nations and merging the three European Communities, and
ensure the stability of the EC. One of these key also laid out the foundations for creation of the
programs, the European Regional Development Euro as a singular currency for all members21.
Fund, created a route by which funding could With a singular union, the treaty also paved the
be transferred from the richest nations in the way for the creation of a common defense and
EC to the poorest13. The Fund would eventu- foreign policy amongst the member states. On
ally become one of the EU’s most important the 1st of November 1993, the treaty went into
programs for economic stability, especially when force, establishing the EU as we know it today22.
the Eurozone crisis hit the region in the early 21st As a singular entity, the EU would continue to
century14. take action to further cement its unity, and even
While these programs were also being imple- extend some of its programs to non-EU mem-
mented, the EC also began to develop its stan- bers in Europe. In 1994, the EU would establish
dards for membership, especially through its the European Economic Area (EEA), which
admittance of Portugal, Greece, and Spain in would extend the common market established in
the early 1980s15. In each of these cases, the EC the previous year to members of the European
8 Background Guide: European Union

Free Trade Association (EFTA), which had been to the Euro once it began to be accepted as legal
established in 1960 by non-EC members as part tender30. In the case of the first 11 nations to
of an effort to facilitate greater economic integra- join the Eurozone, these criteria allowed them to
tion23. Then, in 1997, the EU members passed immediately adopt the Euro when it was cre-
an amendment to the Maastricht Treaty, known ated, and then replace their national currencies
as the Treaty of Amsterdam, giving the central completely in 2002 when the first Euro notes
institutions of the EU jurisdiction over immigra- and coins were entered into circulation31.
tion, foreign policy, and select criminal laws24. The euro and the eurozone are overseen by the
The last major action to be undertaken by the Eurosystem, whose membership includes the
EU in the 1990s was the entry of the Euro in 11 European Central Bank (ECB), as well as the
of its member states, which would pave the way central banks of each member of the Eurozone32.
for the creation of a singular monetary union As part of its responsibilities, the Eurosystem
within the EU, known as the Eurozone25. issues Euro notes and coins33 and oversees the
implementation of monetary policy decisions in
Creation of the Eurozone and order to ensure the stability of prices across the
Eurosystem entire Eurozone34. Through the Eurosystem, the
When the Euro was initially launched at the ECB can efficiently control the monetary policy
beginning of 1999, the Eurozone came into exis- concerning the Euro by delegating its decisions
tence as the monetary union of the EU. Initially, to the members’ central banks, who then imple-
the Euro existed alongside the national curren- ment these decisions individually35.
cies of Eurozone members as an electronic form However, despite the efficiency of this system,
of payment, as Euro notes and coins had yet to the Eurozone has had its fair share of issues, with
be manufactured and entered into circulation . 26 the most significant issue thus far being the
In order for the transition from each of the 11 Eurozone Crisis, which occurred in the early 21st
states’ national currency to the Euro to function century.
smoothly, several actions were taken by the EU,
with some of these actions dating back to the The Eurozone Crisis
creation of the Maastricht Treaty. First, several Prior to the Global Financial Crisis of 2008, the
criteria were put in place in order for nation to EU had been undergoing a period of stability.
be able to adopt the Euro as its currency, which Following the establishment of the Euro, Greece
all EU member states must achieve eventually became the first nation to join the Eurozone
in order to remain in the EU27 (with the excep- after its initial cohort joined, having been able
tion of the United Kingdom and Denmark, both to successfully meet the criteria to join in 200136.
of which had negotiated an exclusion from the The EU itself was also growing in membership,
requirement to adopt the Euro when the Maas- with 10 nations joining in 2004 and 2 more
tricht Treaty was still being debated28). These cri- joining in 200737. At the same time, the EU
teria ensured that nations had stable prices, rela- also increased in efficiency through the passage
tively limited levels of government deficits and of the Treaty of Lisbon, which introduced more
debts, and that they had low long-term interest democratic elements to the institutions of the
rates. Along with this, nations were required to EU38. However, when the global financial crisis
fix the value of their currency to the European occurred, the EU, and especially the Eurozone,
Currency Unit (before 1999) or the Euro (from were hit hard, especially due to the nature of the
1999 onwards)29. By fixing their currencies, na- Euro being a singular currency for many dif-
tions attempting to join the Eurozone could ferent countries. The ensuing Eurozone crisis,
ensure that the value of their currency could which will be further explored later in this guide,
continue to fluctuate, but in a more controlled saw the members of the Eurozone provide sup-
manner, and also allow for a smooth transition port to the poorest countries of the Eurozone in
 Harvard Model United Nations 2023 9

order to keep the Eurozone intact as a monetary

union. In the end, the efforts of the EU and the
ECB proved successful, and the tools used to
tackle the crisis helped to further unite the EU.
However, as discussed later in this guide, the
crisis also exposed the flaws of the Eurozone and
the euro, especially the constraints it has when
utilizing macroeconomic tools to tackle financial
difficulties.
Expansion of the Eurozone Figure 1: A Current Map of the European Union
(European Union Website)
As mentioned earlier, a requirement for nations
that wish to join the EU is a commitment to
adopt the Euro as a currency in the future when Modern Economic Policy & Segue
into Committee
they meet the criteria outlined in the Maastricht
Treaty. The only exceptions to this requirement The economic recovery from lockdowns due to
are the United Kingdom and Denmark, both of COVID-19 has been a central focus internation-
which were able to obtain an exception during ally as of late, especially for the Eurozone. Simi-
negotiations over the criteria and requirement to lar to the Eurozone crisis, the members of the
join the Eurozone39. However, since the addition Eurozone have once again found themselves in
of Greece to the Eurozone in 2001, only seven the position of needing to guarantee the finan-
more EU members have joined, those seven cial stability of the Eurozone’s poorest members.
being Slovenia, Cyprus, Malta, Slovakia, Esto- At the same time, the ongoing Russian invasion
nia, Latvia, and Lithuania40. Recently, Croatia of Ukraine has put extreme pressure on the EU
achieved the criteria to join the Eurozone, and both politically and economically, and has the
is set to do so at the beginning of 2023, leav- potential to greatly disrupt the flow of goods
ing seven current EU members who have yet to through the EEA. Now, it is up to the EU to
meet the criteria to join the Eurozone, including take action to continue to promote the eco-
Denmark41. Some of these countries are actively nomic recovery from COVID-19 at a time when
making an effort to join the Eurozone, such as anything can change in an instant.
Bulgaria, which fixed the value of the Bulgarian
lev to the euro in 202042. However, some, like COMMITTEE OUTLINE
Sweden, have chosen to not meet the criteria
to avoid having to join the Eurozone43. With General Timeline
the EU not actively enforcing the requirement
that all members must join the Eurozone, this To start, I’d like to give you all a brief overview
leaves some member states with the decision to of how I would like to see the flow of debate
join or not. However, it is largely agreed that proceed for the duration of HMUN. On Thurs-
once a state chooses to adopt the Euro and join day night, we’ll pick up from where this back-
the Eurozone, it may not leave the Eurozone ground guide leaves off, which is the question of
voluntarily, leaving states with little option if a how the EU can ensure the stability of the Euro
financial crisis akin to the Eurozone crisis were at a time where it is subject to fluctuation as a re-
to occur again44. sult of both economic and political factors, those
factors being the global economic recovery from
COVID-19 and the Russian invasion of Ukraine.
Ideally, I’d like for there to be a clear understand-
ing of where each delegation lies and what policy
aspects you all would like to tackle first. Those
10 Background Guide: European Union

policies will likely be the focus of the sessions on However, it’s important to remember that one of
Friday, as you all begin to work on your working the most important skills to have in Model UN
papers. As debate continues, I’d love to see all as a delegate is cooperativeness and adaptation.
the working papers you come up with be merged A key part of the committee experience is the
to form a maximum of 2-3 draft resolutions by barriers that you will encounter as the weekend
the end of committee on Saturday. Then, we can progresses. You might find that while your ideas
debate these resolutions Sunday morning, and are best for your nation, they lack the sufficient
hopefully pass one of them! amount of votes in committee, or might be
impossible to execute given the circumstances. It
Working Papers and Resolutions is then upon you to figure out the best path for
This is quite a complex topic, so I’m anticipating your delegation and the committee as a whole.
that there will be a lot of working papers on the Whether that involves negotiating with another
floor as you all attempt to come up with solu- delegation on differing ideas, convincing the
tions. However, I must stress that in order for committee to vote for your draft resolution, or
this committee to run smoothly and maximize taking another route altogether, it is completely
the total amount of time for debate, you must up to you. In the end, my goal is for everyone
work to merge your working papers with papers to have an enjoyable and educational experience
drafted by your fellow delegates throughout the throughout the whole weekend!
whole writing process. This is essential if we are
going to finish with 2-3 draft resolutions on the TOPIC AREA: THE FUTURE OF
floor. THE EURO
If you have any questions about working pa-
pers and draft resolutions, I encourage you to
consult the delegate handbook, where you will
Preventing Another Eurozone
Crisis
find information about how these two papers
are written, as well as the type of information to With the focus of this committee being on the
include in them. future of the euro, it’s important to first explore
perhaps one of the most important events sur-
My Expectations as Your Director rounding the euro since its creation in 1999: The
For the duration of the conference weekend, I Eurozone Crisis. This exposed one of the largest
hope that we can all partake in productive com- flaws of the Eurozone as a monetary union, as it
mittee sessions that allow us to thoroughly ex- restricted the ability of national central banks to
plore the topic at hand. As such, it is imperative utilize monetary policy within their own borders
that we create an environment where all ideas to combat the impacts caused by the ongoing
are welcome and delegates with varying amounts balance-of-payments crisis and the 2008 global
of experience can all walk away having learned recession. Seeing as the economies of Eurozone
something new, whether that be about the Eu- members are once again under pressure, this
ropean Union, or about model UN as a whole. time from the impacts of COVID & the Russian
Additionally, for the duration of this committee, invasion of Ukraine, let’s delve into exactly how
all delegates should follow parliamentary proce- the Eurozone Crisis happened in the first place,
dure. I highly recommend that you all explore and how the EU and the eurosystem ultimately
HMUN’s Guide to Delegate Preparation in the resolved the crisis.
time leading up to the conference.
In preparing for the conference, I expect that
you will all thoroughly research your assigned
states and come up with ideas that will advance
your delegations interests in an effective manner.
 Harvard Model United Nations 2023 11

Case Study: The Eurozone Crisis accumulating debt were to undergo financial
troubles, they would be rescued and bailed out
Key Causes by the rest of the Eurozone48. This only further
Several factors have been identified as potential fueled the supply of loans from financial institu-
causes of the Eurozone crisis, with some of them tions to the debtor nations of the EU.
being traced back to issues with how the Euro At the same time, while the monetary policy was
had been managed as a currency since its con- identical for all nations in the eurozone, each
ception. nation had the freedom to conduct its own fiscal
As stated earlier in the introduction, the institu- policy, through which the government influences
tions of the EU were built with the intention of economic conditions through its spending and
creating unity amongst its members and ensur- tax policies. While this would give the eurozone
ing its long-term stability. This meant that poorer a way to avoid the crisis if the nations chose to
nations of the EU would often turn to financial adopt policies that would restrict the growth of
support from the wealthier nations, and the gen- account deficits (e.g. if Germany were to imple-
eral flow of goods within the EU would go from ment policies that discouraged financial institu-
wealthy nations to their poorer counterparts. In tions from lending, or if Greece were to imple-
order to pay for these goods, nations would turn ment policies that restricted trade and slowed
to borrowing from financial institutions, caus- down the economic growth), the nations of the
ing them to accumulate a significant amount of eurozone often only utilized fiscal policy to drive
debt leading up to the Eurozone crisis45. Now, domestic economic activity and growth49. This
if these countries were not a part of the same highlights another flaw that existed in the euro-
monetary union, then it’s possible that their own zone. Though all nations were bound by one cur-
central banks could help to manage this rising rency and monetary policy with the expectation
imbalance by engaging in monetary policy and that they would support each other, the nations
adjusting interest rates or even by devaluing their chose to engage in fiscal policies that favored
currency by altering the exchange rate. However, their domestic interests over the stability of the
since all the countries in the Eurozone utilized EU and the eurozone.
the same currency, the ECB was stuck in the As the balance-of-payments crisis was build-
position where it could only devise a singular ing up within the eurozone, debtor countries
monetary policy that would influence economic continued to enjoy rapid economic growth as
activity in the region. As a result of this flaw, the they continued to take out loans. This ultimately
ECB would actually end up contributing to the resulted in an increase in the prices, contributing
rising account deficits within the eurozone that to the bubble that had been building up in the
led to the crisis46. global economy.
In the early 2000s, the ECB decided to keep in- This bubble began to burst in 2007 with the
terest rates low, which caused wealthier eurozone onset of the Global Financial Crisis, as financial
members to seek economic opportunities abroad, institutions that had been lending to nations
and encouraged poorer nations to borrow more such as Greece and Portugal suddenly stopped
money from financial institutions47. This only providing any loans, bringing an end to any eco-
exacerbated the build-up in account deficits, as it nomic growth that had been occurring50. Now,
maintained the ongoing flow of goods from na- the eurozone as a whole found itself with tril-
tions such as Germany to nations such as Greece lions in debt. This created two key issues, as the
and Portugal. At the same time, due to the EU’s debtor countries were unlikely able to be able
history with prior attempts to maintain stability to pay off the debts that had been accumulated
(such as the creation of the European Regional due to the onset of recession as economic growth
Development Fund), there was also an expecta- halted, and wealthier nations such as Germany
tion in place that if one of the eurozone nations now had to support its domestic financial in-
12 Background Guide: European Union

stitutions from collapse due to the inability of its debts, but less than a year after this renegotia-
debtor countries to repay their loans51. With the tion, it found itself cutting spending and raising
convergence of the Global Financial Crisis and taxes once again, prompting strikes as people
the accumulation of account deficits, the EU continued to lose their jobs58.
and the Eurosystem were forced into a position However, the progress of Greece’s economic
where it had to ensure the stability of several recovery was threatened in 2015 by the victory
Eurozone nations – including Greece, Ireland, of the Syriza party in a snap election59. The party
Cyprus, and Spain – in order to prevent the euro and its leader, Alexis Tsipras, were against mea-
from collapsing as a currency. sures that reduced spending and increased taxes,
Greece and also sought to cancel the debt that Greece
Greece was among the first members of the still had through its bailouts60. When the nation
eurozone to express concerns over its ability to ended up missing a 1.6 billion euro repayment
avoid a total economic collapse. Having been to the IMF in June 2015, it was once again in
left unable to pay off its existing debts due to financial trouble, as the government was unable
the inability to obtain a loan in the aftermath to secure any funding to complete the payment
of the Global Financial Crisis, the government or obtain an extension. As a result, Tsipras, who
of Greece announced in 2010 that it was at risk was now the Prime Minister of Greece, was
of defaulting on its debts52. Since such an event forced to limit the Greek population’s access to
could potentially bring down the EU with it, money saved with banks, and would eventually
the EU ended up bailing out Greece in 2010 have to back more cuts on spending and tax
through joint action with the International increases in order to continue receiving financial
Monetary Fund. In the bailout, Greece was support from the EU and the IMF61. Having
provided with 100 billion euros in a loan, and in done this, Greece was once again bailed out in
exchange it would engage in fiscal policies that 2015 by the EU, with the stipulation that Greece
would cut government expenditures and increase would have to further cut government spending
tax rates53. The Greek economy would begin to and implement reforms concerning taxation and
show signs of recovery due to the creation of a labor62.
750 million euro rescue fund by the EU54, but Since then, Greece has managed to exit all of the
Greece would eventually need another bailout bailout programs it entered, but still owes bil-
from the EU and the IMF in 2012, this time lions in debt to the EU and the IMF, suggesting
receiving 130 billion euros55. that the impact of the eurozone crisis continues
However, Greece was also facing domestic op- to hurt Greece63. However, the response of the
position to the policies put in place as part of
its economic recovery. In particular, the reduc-
tion in government spending and increases in
taxation created discontent amongst the Greek
population, putting the existing government at
threat of being voted out at the polls in favor of
a fringe government that opposed receiving bail-
outs from the EU and IMF56. While the existing
government continued to hold onto a majority,
the terms of the bailout were renegotiated in
2012, allowing Greece to receive lower interest
Figure 2: An Image of Police in Greece During
rates on the bailouts and lowering the standards Protests over Economic Stipulations Mandated
for debt reduction expected by the EU and the by the IMF as Part of Greece’s Bailout Package
IMF57. These renegotiations reduced pressures on (Council on Foreign Relations)
the Greek government as it attempted to repay
 Harvard Model United Nations 2023 13

EU and the IMF helped the nation to avert a However, similar to Greece, Ireland was forced
total economic collapse, securing the future of to adopt measures that cut government spending
the euro and the eurozone in the process. and increased taxes. Considering that these mea-
Ireland sures were implemented at a time where unem-
Prior to the eurozone crisis and the Global ployment was rapidly rising within the country,
Financial Crisis, Ireland was undergoing a period the existing government, which was comprised
of rapid economic growth referred to as the of Fianna Fáil and the Green Party, lost its ma-
‘Celtic Tiger64.’ Similar to other poorer nations jority in the 2011 Irish general election, allowing
in the eurozone, this period of growth was fu- a new coalition to form between Fine Gael and
eled by foreign direct investment caused by the Ireland’s Labour Party67.
ECB’s monetary policy decisions. However, not The new majority coalition continued to attempt
only did financial institutions from nations such to handle the financial crisis, merging the now-
as Germany partake in the ongoing economic state-owned Irish Nationwide Building Society
growth by providing loans; Irish financial insti- and Anglo Irish Bank, two Irish financial institu-
tutions also were a major source of loans at the tions, into the Irish Bank Resolution Corpora-
time, meaning that when the Global Financial tion68. Additionally, the government continued
Crisis hit, Ireland not only found itself with a to cut spending and increased taxes, but made a
high level of debt to foreign financial institutions commitment to not seek a second bailout from
that it was unable to payback, but it also found the EU or the IMF. They managed to renegotiate
itself in a position where it needed to bail out its the terms of their first bailout in order to reduce
own financial institutions65. the amount of interest owed on the loans re-
When the eurozone crisis began, Ireland was also ceived from the EU and the IMF, cutting poten-
among the nations of the eurozone who sought tial costs down the line by hundreds of millions
a bailout from the EU in order to prevent an of euros69. In 2013, the government then liq-
economic collapse. It would be successful in uidated the Irish Bank Resolution Corporation,
its efforts, receiving an 85 million euro bailout removing two main contributors to the ongoing
financed by the EU, the IMF, and the Irish crisis in Ireland from the Irish financial sector70.
government66. These funds were to be used not By the end of 2013, Ireland was able to exit the
just to pay out the Irish state’s debts, but to also bailout it received 3 years prior, signaling that
bail out several Irish banks in order to maintain the Irish economy was beginning to recover
economic stability, effectively nationalizing them. following the beginning of the crisis. Since then,
Ireland has not needed any further economic
support from other members of the EU or orga-
nizations such as the IMF, and has shown steady
progress in reducing unemployment and the
overall national debt-GDP ratio71.
Cyprus
Cyprus, like Greece and Ireland, was impacted
heavily by the Global Financial Crisis due to
a slowdown of economic growth. However, it
would not be at risk of severe financial troubles
until 2012, 2 years after Greece and Ireland
sought bailouts as a result of the Global Finan-
cial Crisis. This ended up being the case since
Figure 3: Enda Kenny (pictured above) became the
Taoiseach of Ireland following the 2011 general
Cypriot financial institutions were among the
election. The first year of his tenure were focused lenders involved in the bailout of Greece72. As
on addressing the Euroone crisis mentioned earlier, Greece renegotiated the terms
14 Background Guide: European Union

of its bailout, resulting in extensions for pay- ties of the EU as the eurozone crisis occurred. As
ments, a reduction in interest rates, and in some a result, they received one of the largest bailout
cases a reduction of the amount of debt owed packages given by the EU and the IMF at the
back to lenders. While this was highly beneficial time, and had fewer stipulations associated with
for the Greek economy, as it reduced a need to their package80. This contrasted with the efforts
implement unpopular fiscal policy measures, it in Greece, Ireland, and Cyprus, all of which had
had a severe impact on Cypriot banks, as they to implement severe cuts to government expen-
had now lost a significant amount of money ditures and raise taxes, and in the case of Cyprus,
through the loans provided to Greece . As a
73
obtain money directly from the population.
result, the Cypriot government sought a bailout However, despite this, Spain has displayed the
from the EU in 2013. However, seeing as the slowest recovery of the nations that needed to be
EU didn’t want to keep bailing out its members, recovered during the eurozone crisis and con-
it required that in order for the Cypriot govern- tinued to maintain double-digit unemployment
ment to be bailed out, it must impose a one-time levels by the end of the 2010s81.
levy on people with deposits in Cypriot banks Another issue to notice with the case of Spain
in order to further finance Cyprus’ economic was the political blowback that the government
recovery. This deal was rejected by the Cypriot faced throughout the economic downturn and
government, and the bailout was then rene- bailout period. Similar to Greece, the Spanish
gotiated such that only those with more than government was faced with strikes and other
€100,000 would face a levy on their deposits . 74
protests from workers, and the majority govern-
With this levy in place, the bailout of Cyprus has ment was at risk of losing their support at the
been occasionally referred to as a “bail-in” due polls. The outcomes of the eurozone crisis have
to the large amount of funding that came from also been traced to the rise in support for the
people holding bank accounts within Cyprus . 75
Catalonia separatist movement that occurred in
Nonetheless, Cyprus received a bailout of 10 bil- the mid-2010s82. This was largely due to dis-
lion euros from the EU and IMF in 2013, and satisfaction with how the Spanish government
this funding combined with the money collected handled the crisis and the weakening of Catalo-
via the levy enabled the Cypriot government to nia’s Statute of Autonomy, and it highlights how
begin its economic recovery . By March 2016,
76
extreme the political consequences can be for the
Cyprus was able to exit this bailout program members of the eurozone if things go awry83.
without even needing to utilize approximately
3 billion euros provided through the program, How the Eurozone Crisis was
indicating the success of the measures taken by
Handled
both the Cypriot government and the EU in aid- Through our exploration of the impacts the
ing Cyprus’ economic recovery77. eurozone crisis had in Greece, Ireland, Cyprus,
Spain and Spain, we can observe the response that the
Similar to Cyprus, Spain also became enveloped EU and its core institutions had. By far, the most
in the eurozone crisis not just because of its common solution was for the distribution of
accumulation of debt, but because its financial bailout money to countries at risk of economic
institutions were also at risk of collapse due to collapse. However, it is essential to note that a
unpaid loans78. In 2012 it became the recipient large amount of bailout money came from the
of a 100 billion euro bailout loan provided by IMF, highlighting the EU’s inability to handle
the EU, enabling the Spanish government to bail the eurozone crisis on its own. Additionally, with
out some of the nation’s financial institutions79. these bailouts, each nation receiving money was
Notably, because Spain was at the time (and still required to adhere to a set of stipulations, with
is) one of the EU’s largest economies, maintain- the most common one being austerity poli-
ing its economic stability was among the priori- cies (ex. cutting government expenditures and
 Harvard Model United Nations 2023 15

increasing taxes). While in concept these poli- What Has Changed Since
cies can alleviate the impacts of a balance-of-
payments crisis by helping governments raise The EU implemented several changes to try
money to pay off huge sums of debt, the dis- and prevent a second crisis, with key changes
content caused by these policies can also pose a focusing on the issues caused by differing fiscal
threat to the economic recovery process, through policies between EU countries. This was largely
either strikes that limit national productivity because the difference in fiscal policies were a key
or through governmental transitions caused by contributor to the severity of the crisis when the
shifts in party support in general elections. Global Financial Crisis occurred. In 2012, most
It’s also important to consider the role that the members of the EU signed the Fiscal Compact
initial response to the eurozone crisis had in Treaty, marking the first significant EU-wide
prolonging the crisis itself, especially in the case policy change84. Through this treaty, the sig-
with Cyprus. In the EU & ECB’s attempts to co- natories agreed to limit their account deficits
ordinate bailout packages with the IMF, they had to under .5 percent of their GDP85. With such
failed to consider the risks of future economic a policy in place, nations would no longer be
downturns for other EU members. While this incentivized to pursue investments in other EU
strategy worked in the short-term and prevented countries or to take out loans for trade purposes,
countries such as Greece from defaulting on their preventing the accumulation of account deficits
debts at the onset of the global recession, the that occurred prior to 2007.
severity of the situation created a domino effect. Additionally, action has been taken to make
When Greece soon found itself at a point where temporary EU funding programs permanent
it needed to have a reduction on the amount of institutions, should a eurozone member need to
money owed to institutions, institutions such as be bailed out in the future. During the crisis, the
the banks in Cyprus now faced their own liquid- European Financial Stability Facility (EFSF) and
ity issues, forcing the Cypriot government to in- the European Financial Stabilization Mechanism
tervene and obtain its own bailout. Because the (EFSM) were created as temporary programs
EU had already provided so many rescue loans through which bailout funding could be coor-
through bailouts, Cyprus was essentially forced dinated and disbursed to nations such as Greece,
to turn to the population and other individu- Ireland, Cyprus, and Spain86. However, seeing as
als holding money in Cypriot banks in order to these were only temporary, the EU moved to cre-
fund the bailout of Cypriot banks. This cause- ate a comparable permanent program called the
and-effect process highlighted a key flaw in the European Stability Mechanism (ESM) in 2012,
interconnectivity of the eurozone, as if one na- which had the capacity to fulfill the duties that
tion were to undergo extreme economic turmoil both the EFSF and EFSM carried out during the
(akin to Greece during the eurozone crisis) and eurozone crisis87. The ESM has since been called
sought support from wealthier eurozone mem- on during the COVID-19 pandemic, and has
bers, those members were now indirectly also functioned as needed, suggesting that this was an
being put at risk of economic turmoil. effective action made by the EU in order to help
While the eurozone crisis has been mostly solved, maintain the stability of the eurozone and the
with some nations still lagging in economic euro88.
activity and recovery, the EU and Eurosystem Criticisms about Convergence
were forced to reevaluate the system as a whole, Policies
and attempt to implement reforms that would
prevent such a crisis from happening again. When the Maastricht Treaty outlined the euro as
a singular currency to be utilized by the mem-
bers of the EU, it also detailed a set of conver-
gence criteria in order for a nation to join the
eurozone and adopt the euro as its national cur-
16 Background Guide: European Union

rency89. The first of these criteria is that nations the euro that needs to be addressed by the EU in
seeking to adopt the euro must have domestic the near future, as the existing criteria pose chal-
price stability. The specific parameter that na- lenges for members who are expected to eventu-
tions must meet is that their inflation rate must ally join the eurozone, but may actually inflict
be less than 1.5 percentage points above the aver- more economic damage through any attempts to
age inflation rate of the three best performing do so.
nations in the EU90. Next, nations must have a
limited amount of debt, with the criteria requir- COVID-19 and its Economic
ing that the nation’s debt-to-GDP ratio cannot
Impacts
increase by more than 3 percentage points in The most significant challenge that the EU and
the next year, and the debt-to-GDP ratio cannot the eurozone have faced since the eurozone crisis
be any greater than 60 percent91. The nation’s is undoubtedly the COVID-19 outbreak. When
domestic currency is also subject to the require- the spread of the coronavirus increased signifi-
ment that it partakes in the EU’s Exchange Rate cantly in early 2020, consumer activity drasti-
Mechanism, where its value is essentially pegged cally slowed down as governments around the
to the euro. Lastly, interest rates on government world installed lockdown requirements, effec-
bonds cannot be more than 2 percentage points tively bringing the global economy to a near halt.
higher than the average interest rate of the three However, the EU didn’t have an encroaching
EU members with the lowest inflation rates92. balance-of-payments crisis like it did when the
While these criteria have been designed with the Global Financial Crisis hit the region, suggesting
intent of ensuring that nations joining the euro- that actions taken to prevent such a crisis from
zone can do so without any negative consequenc- happening again (e.g. the Financial Stability
es for either themselves or the other members Treaty) were effective in preventing an accumula-
of the eurozone, they have still been subject to tion of account deficits.
criticism over how the criteria have been treated The Eurogroup, which is comprised of the
since their creation in 1992. In some cases, the finance ministers for all members of the euro-
criticism has been that the criteria are used as zone, were quick to devise an economic response
more of a political than economic mechanism, to COVID-19, publishing the Report on the
with key evidence being the disregard for the Comprehensive Economic Policy Response to the
criteria when the eurozone was initially estab- COVID-19 Pandemic in April 202097. In this
lished93. If we revisit the criteria discussed earlier report, the Eurogroup outlined the measures
in this section and examine the economies of already taken by the eurozone nations, as well
the first 11 members of the eurozone when they as their strategy for the future. A key element of
joined, we can observe that several criteria such this plan was the establishment of a pandemic re-
as the maximum debt-to-GDP ratio of 60% and covery fund with 750 billion euros by the ESM,
the maximum inflation rate were not enforced at which had been established as a result of the
the time, with nations such as Germany violating eurozone crisis98. Through these actions, we can
them when it adopted the euro94. Additionally, clearly see how the eurozone had improved its
the strict adherence to these criteria and the re- ability to response to economic crises, with two
quirement has also been identified as a potential key areas being the increased collaboration be-
cause of divergence, rather than convergence95. tween eurozone nations through the Eurogroup,
This is largely due to the potential costs associ- and the utilization of the ESM to have a fund
ated with meeting the requirements outlined by ready should any eurozone nation seek financial
the Maastricht Treaty, which can negatively hurt support as COVID-19 continued to spread.
the economics of non-eurozone EU members Even though the lockdown period has come to
and push them further away from meeting the an end, now the euro continues to face chal-
convergence criteria96. This is yet another issue of lenges as economic activity has sped up again.
 Harvard Model United Nations 2023 17

In particular, there have been inflation concerns The Russian Invasion of Ukraine
surrounding the euro as the economic recov-
ery from COVID-19 has picked up in the past All while the EU and eurozone continues to
year99. While the ECB and eurosystem have address the economic impacts of COVID-19
been able to address these concerns through the amidst the recovery of the global economy, it
utilization of monetary policy, there is still the also has to face the economic threat posed by the
question of how these concerns about inflation Russian invasion of Ukraine. Here, there is both
could impact different parts of the eurozone. It’s a political and economic threat, as Russia shares
been found that COVID-19 has impacted the a border with 5 EU nations (Finland, Estonia,
economies of the eurozone nations in different Latvia, Lithuania, & Poland), Ukraine shares
manners, making it difficult for the economic a border with 4 EU nations (Hungary, Poland,
response to be coordinated across the entire eu- Slovakia, & Romania), and the ongoing invasion
rozone. For example, the spread of COVID-19 has already had an impact on trade and prices102.
caused varying lengths of lockdown periods All of these factors indicate that Russia’s invasion
within eurozone nations, with the nations of of Ukraine has the possibility of disrupting the
northern Europe having the least restrictive eurozone’s economic recovery from COVID-19,
and shortest lockdown periods throughout the which would put both the eurozone and the
outbreak, and the nations of southern Europe euro at risk.
having the strictest and longest lockdown peri- The EU’s borders with Russia and Ukraine
ods100. While recovery funds such as the one set have the potential to introduce new challenges
up by the ESM could bridge some of the eco- through the influx of refugees fleeing the inva-
nomic gaps caused by varying lockdown policies sion. A UN projection released in 2022 indicat-
by providing more support to nations such as ed that as many as 8.3 million refugees could flee
Italy, Spain, and Portugal, there are still long- Ukraine by the end of the year, and Ukraine’s
term risks to these countries that could weigh border with the EU means that many of these
down the eurozone as a whole. For now, the refugees may soon find a place to settle within
EU has attempted to negate these risks through the eurozone103. While the ECB has claimed
the creation of NextGeneration EU, a fund that roughly half of all Ukrainian refugees who
dedicated exclusively to the economic recovery enter the eurozone could eventually join the
from COVID-19101. However, as the economic workforce104, which could help with overall
recovery continues, there may still be hidden employment, there is still the possibility that eu-
risks to the stability of the euro stemming from rozone nations taking in these refugees will have
the impacts of COVID-19. increased economic costs as a result, negatively
impacting their ability to fully recover from CO-
VID-19. Additionally, the proximity of Russia
means that it is usually the largest supplier of gas
to the eurozone. With that link cut off due to
the ongoing invasion, energy prices have begun
to soar amid a time where prices are already
increasing105. This is putting greater inflationary
pressures on the eurozone as a whole with the
ongoing concerns over inflation, but there is an
especially great amount of pressure on Eastern
Figure 4: A meeting of the Eurogroup (The National European countries who are largely dependent
Herald) on Russia for its supply of gas.
18 Background Guide: European Union

cut their gas usage by 15%. This drew criticism

from EU members in Western and Southern
Europe, as they had managed to almost elimi-
nate any dependence they had on Russian gas
and switched to alternate natural gas suppliers or
to other forms of energy, while nations such as
Germany were still dependent on Russia to meet
their national demand for gas110. As a result, the
15% threshold was altered to cover the entire EU,
and it is anticipated that Germany and other
nations dependent on Russian gas will cut more
Figure 5: A map of the Nord Stream 1 & 2 pipelines than 15% of gas consumption to compensate for
(Al Jazeera) other nations cutting by less than 15% 111.
Here, we can once again observe regional differ-
Germany’s Response: Nord Stream
ences when it comes to the impact of economic
One of the major routes by which Russian gas
crises on the eurozone. With the eurozone crisis,
has arrived into Europe is through the Nord
the poorest nations of the EU were hit the hard-
Stream 1 pipeline, an offshore pipeline that
est; with the economic shock from COVID-19,
connects Russia to Germany. The Nord Stream
nations hit the hardest by COVID found them-
1 pipeline was meant to be one of a pair of two
selves needing more support from the EU; and
pipelines, with Nord Stream 2 being built in
with the ongoing Russian invasion of Ukraine,
2021106. However, in response to the Russian
Eastern EU nations and those more reliant on
invasion of Ukraine, Germany refused to certify
Russian gas sought support from the rest of the
the second pipeline in 2022, effectively bank-
EU. This asymmetry across the eurozone region
rupting the Russian owners of Nord Stream 2
further highlights the challenges faced by the EU
and preventing the pipeline from ever being
and the eurozone, especially with an established
run107.
precedent that the EU will come to the rescue of
However, while Germany has taken punitive
any member facing severe economic troubles.
action against Russia through its refusal to certify
Nord Stream 2, the influx of natural gas from Depreciation of the Euro and
Russia from Nord Stream 1 ended up mak- Parity with the US Dollar
ing the nation incredibly reliant on Russia for
As both the COVID-19 recovery and the Rus-
natural gas. So, when Gazprom, a Russian gas
sian invasion of Ukraine continue to occur, we
company that is the majority shareholder of the
can observe how the EU has been able to re-
company that operates the Nord Stream pipeline,
spond to both events simultaneously and the
shut down the flow of natural gas into Europe
subsequent impacts it has had on the eurozone.
as a punitive action, Germany struggled to find
As of September 2022, inflation in the eurozone
alternative sources of gas108. At the same time,
had reached a new high of 9.1%, despite the at-
the shutdown of gas flows from Russia to Europe
tempts of the ECB to tame inflation through the
also put the price of natural gas and other energy
use of monetary policy112. In particular, goods
sources at risk of increasing. In order to try and
such as energy and food reached inflation levels
limit the economic impact that this would have
of 38.3% and 10.6% respectively, partially due
on the EU as it continued its economic recov-
to extreme temperatures and the Russian inva-
ery, a deal was reached in which the entire EU
sion of Ukraine113.
would cut its usage of natural gas by 15%109.
The rise in the prices of these goods, especially
However, this threshold caused controversy
the price of energy, has the potential to cause
when the deal was being negotiated, as the initial
extreme disruption in the eurozone through this
terms stipulated that all EU countries would
 Harvard Model United Nations 2023 19

winter, with households potentially having to

face massive surges in the costs associated with
heating their homes. In response, some nations
have chosen to implement subsidies or tax cuts
on households that would help respond to the
increase of prices, an example being Spain’s cut
on the value-added tax on energy bills114. How-
ever, in the case of Germany, households may
have to endure additional financial hardship.
While the government has pledged to lower the
value-added tax on natural gas and will distrib-
ute a subsidy to households across the country,
Figure 6: The EUR/USD Exchange Rate from
households still have to pay a levy on gas to the
January 1999 to October 2022 (Statista)
German government in order to compensate for
Germany’s shift away from Russian gas suppli-
dollar, it could increase concerns of a recession
ers115. With the levy having the potential to add
occurring in the eurozone, which would cer-
an additional 500 euros to the annual cost of
tainly not be beneficial for the EU as it faces the
energy per household, households may still end
simultaneous threats posed by COVID-19 and
up paying more for gas despite the subsidy116.
Russia.
As a result, total economic consumption may
As the EU continues to deal with both situations,
decrease as households find goods relatively
it’s important to keep in mind the importance
more expensive as Europe heads into the winter.
of its actions. We’ve seen that past actions have
This asymmetric impact displays once again the
been important for setting precedents, and that
risks that the eurozone faces by sharing a sin-
the actions of the EU (even in just one nation)
gular currency; if the economy of a nation like
can carry long-term consequences for all its
Germany finds itself struggling, it will need to
members. However, the EU has also shown great
rely on the rest of the EU to support it. While
resilience and adaptation in the face of crisis in
financial support would likely be given (based
the past, and it’s not unreasonable to assume
on the precedents set by both the eurozone crisis
that it will continue to do so. While the current
and the COVID-19-associated lockdowns), we
situation would not be considered a crisis, it is
could potentially observe increased tensions due
possible that it may still elevate to one, and the
to Germany’s status as one of the largest econo-
EU will need to take quick and decisive actions
mies in the eurozone, as well as its status as the
in order to minimize any potential consequences
nation most reliant on Russia for energy imports,
if it is to maintain its existing union.
despite previous criticisms before Nord Stream 1
began to operate. Further Expansions to the
Amidst all of this, the euro has been slowly Eurozone
depreciating in value relative to other currencies
around the globe. Notably, in the summer of While the EU continues to attempt to maintain
2022, the euro fell below parity with the US dol- the stability of the eurozone and the euro, there
lar, meaning that the dollar was worth more than are still several members of the EU who have
the euro for the first time in 20 years117. While yet to join the eurozone: Bulgaria, Croatia, the
there isn’t a significant numerical difference if Czech Republic, Denmark, Hungary, Poland,
€1 is worth $1.01 or $.99, the parity barrier can Romania, and Sweden. With the exception of
be incredibly significant in the markets due to Denmark, all of these nations are obligated to
consumer psychology. If the euro continues to join the eurozone and adopt the euro at some
depreciate relative to currencies such as the US point in the future. However, most of them are
not making it a priority to join the eurozone any
20 Background Guide: European Union

time soon, with Sweden even actively avoiding economies to meet the convergence criteria119.
meeting the criteria to join the eurozone. Countries that Have Joined the
While it could be argued that it is in the best Eurozone Since its Creation
interest of the EU to allow these nations to take When the eurozone was first created with the
their time when adopting the euro, the lack of euro in 1999, only 11 members of the EU auto-
enforcement of the clause mandating that all EU matically joined. Since then, only 9 nations have
members (except Denmark) must join the euro- met the criteria to join the eurozone. The first
zone takes away from the image of unity that the of these 9 nations to do so was Greece, which
EU attempts to portray. joined the eurozone in 2001120. At the time,
Taking all these factors into account, the EU Greece was the only non-eurozone member that
must consider how it currently manages the actively wanted to join the eurozone and adopt
process of joining the euro, and if it should make the euro but was unable to meet the criteria.
any changes to the current requirements estab- However, Greece’s adoption of the euro can be
lished by the Maastricht Treaty or opt to change seen as both a political and economic effort,
how the existing criteria and requirement to join showing how the euro might be more than just a
the eurozone are enforced. currency to the EU.
Criteria to Join the Eurozone Throughout the 1990s, the Greek government
As discussed earlier in this guide, the Maastricht had come to be associated with economic and
Treaty outlined 5 criteria that all EU members political mismanagement121. So when the Maas-
would have to meet in order to adopt the euro as tricht Treaty laid out the foundation for the euro
a national currency and join the eurozone. Once as a singular currency for the EU, the Greek
a member state fulfills all of these criteria, they government made a push to meet the conver-
are required to adopt the euro and become a gence criteria to join the EU as part of an effort
member of the eurozone. However, these criteria to improve its political image. While it was un-
are not actively forced onto EU member states, able to meet the criteria by 1999 when the euro
with some states simply choosing not to enter- began to be utilized as a currency by financial
tain joining the EU at any point in the future. institutions, the push to meet the criteria meant
Some states, like Sweden, have sought to achieve that Greece became eligible to adopt the euro by
the price stability desired by the EU without 2000122. As a result, on January 1st, 2001, Greece
pegging their currency to the euro, effectively became the 12th member of the eurozone and
postponing the process to join the eurozone adopted the euro before banknotes and coins
indefinitely . Others, like Hungary, have opted entered distribution throughout the eurozone in
118

not to pursue policies that would cause their 2002123.

While Greece’s push to meet the EU’s con-
vergence criteria did improve its track record
with economic management, its entry into the
eurozone marked a more significant political mo-
ment for the nation. By being among the earliest
nations to join the eurozone, Greece successfully
sent a signal that it had fully committed to the
EU and its institutions and programs. However,
as we know through the eurozone crisis, Greece’s
membership would soon put an extreme amount
of pressure on the EU in order to maintain the
stability of the euro as a currency.
Figure 7: A timeline of members who have joined the
The entry of Greece into the eurozone allows us
Eurizone from 1999-2015 (Destatis)
to examine some of the motivations as to why
 Harvard Model United Nations 2023 21

EU nations might want to meet the convergence Croatia had been intending to join the eurozone
criteria and fulfill the requirement to join the since it first joined the EU in 2013, but the pro-
EU. By joining the eurozone, which is said to cess was delayed due to the eurozone crisis and
have no exit option, EU nations can affirm their the EU’s subsequent bailouts127. However, by
commitment to the ideals of the EU, which 2022, Croatia had finally met all 5 of the crite-
include cooperation and democratic principles. ria, allowing it to join the eurozone on January
However, this motivation would be considered 1st 2023, making it the first EU member to join
more related to politics rather than economics, the eurozone in 8 years128. The reasons cited for
displaying how the euro can function as a politi- Croatia’s accession to the eurozone included im-
cal tool for members both inside and outside the proving the Croatian economy at a time of high
eurozone. inflation across the EU and completing Croatia’s
From 2007-2009, the eurozone added 4 new integration as an EU member state, once again
members – Slovenia, Cyprus, Malta, and Slo- displaying the political and economic justifica-
vakia – as the EU began its descent into the tions behind joining the eurozone129.
eurozone crisis124. After the crisis began and the Considering that multiple EU nations have yet
EU started to bailout member states such as to join the eurozone, it’s important to consider
Greece, Ireland, Cyprus, and Spain, there was the reasons behind Croatia’s recent accession.
an increase in doubts surrounding the euro as Since the eurozone crisis has been cited by
a currency, slowing down any attempts to join several members as a key reason to not join the
the eurozone. However, there was one exception: EU, it’s possible that these sentiments may have
Estonia, which proceeded to join the eurozone declined in the time since, as shown by Croatia’s
in 2011 amidst the ongoing crisis125. Similar to accession to the EU. Additionally, with Bulgaria
Greece, Estonia joined the eurozone to send a also attempting to meet the convergence criteria
signal to the EU and to international investors. in order to join the eurozone by 2024130, we
By joining as the EU was tackling the eurozone could be witnessing the beginning of a new wave
crisis, Estonia displayed its resiliency to the of expansion in membership as non-eurozone
crisis, its openness to support from institutions nations begin to seek sources of economic stabil-
such as the IMF, and the increased stability of its ity amidst the ongoing crisis presented by CO-
economy and prices126. Through this, the nation VID-19 and the Russian invasion of Ukraine.
was able to show to investors that it had recov- Criticisms of the Euro as a Currency by
ered economically since the fall of the USSR and EU Member States
had become one of the strongest economies in While nations such as Croatia and Bulgaria have
Eastern Europe. been actively pushing to meet the convergence
Again, we can examine more of the motivations criteria and join the eurozone, several nations,
that can drive nations to meet the convergence such as Sweden and Denmark, still have no
criteria. In the case of Estonia, the government intent to do so.
saw the nation’s entry into the EU as a way to In the case of Denmark, there has been a sig-
portray its economic strength and draw in for- nificant amount of opposition to joining the
eign investment at a time of global recession. At eurozone since the Maastricht Treaty was first
the same time, the nation was also able to affirm drafted in 1992. Denmark was one of three EC
its commitment to the ideals of the EU, which countries to hold referendums on whether to
was especially important given Estonia’s for- ratify the Maastricht Treaty or not, the other two
mer status as a Soviet Socialist Republic. Since nations being France and Ireland131. A majority
Estonia joined the eurozone in 2011, only three of Danish voters were against Denmark ratify-
nations have met the criteria to join the euro, ing the treaty, potentially preventing the creation
with the most recent addition to the eurozone of the EU, as all EC members had to ratify the
being Croatia. Maastricht Treaty132. As a result, the parties com-
22 Background Guide: European Union

prising the Danish government negotiated with support for the EU and the euro has increased,
the rest of the EC to secure a series of opt-outs indicating that Sweden may eventually opt to
from the Treaty, including an opt-out mecha- join the eurozone sometime in the near future138.
nism that would allow Denmark to meet the Between the cases of Denmark, Sweden, Greece,
convergence criteria without being forced to join Estonia, and Croatia, it becomes clear that there
the eurozone133. is also a divide economically when it comes to
As a result, when the treaty was passed and the support for the EU. Denmark and Sweden argu-
euro eventually went into circulation, Denmark ably have two of the strongest economies in the
did not enter the eurozone despite having met eurozone, and have both shown the capability
all of the convergence criteria. This stemmed to meet the convergence criteria with relative
from the result of a second referendum held in ease. With these nations, the issue of joining the
2000, in which a majority of voters were against eurozone is an issue of national sovereignty and
adopting the euro134. Ever since, Denmark has domestic control of economic affairs. On the
continued to use the Danish krone as its curren- other hand, Greece, Estonia, and Croatia, which
cy, despite continuing to meet the convergence have more unstable economies, have seen the
criteria. eurozone as an opportunity for economic growth
The main reason behind the reluctance of the and as a commitment mechanism by which they
Danish people to join the eurozone lies in how can earn the confidence of the international
the euro is regulated. As mentioned earlier, all economy. A similar divide can also be found
member nations of the eurozone lose the abil- within the eurozone itself, especially as we saw
ity to independently conduct monetary policy, with the eurozone crisis. As a result, it’s crucial
as the ECB ultimately makes monetary policy that the EU considers the current dynamic when
decisions concerning the euro. While the Danish debating the future of the eurozone.
krone is currently pegged to the euro, meaning Risks of Expansion and Increased
that the ECB’s monetary policy already influ- Enforcement
ences the Danish economy, the possibility of It is the goal of the EU to eventually have all
Denmark losing the ability to remove the peg on members adopt the euro and join the eurozone
the euro and conduct its own monetary policy is as part of its effort to facilitate greater economic
what drives public opinion against the accession activity for the benefit of all its members. How-
of Denmark to the eurozone135. ever, as we saw with Greece’s accession in 2001,
Another case to consider is that of Sweden, the expansion of the eurozone has the potential
which does not have an opt-out mechanism in to bear extreme consequences for the EU as a
place but is planning on indefinitely delaying whole if a member needs to be bailed out in
the process of meeting the convergence criteria the future. As the EU continues to admit more
and joining the eurozone. However, following members to the eurozone during the current
a 2003 referendum in which voters stated their crisis, it must also consider the potential risks as-
opposition to joining the EU, Sweden has opted sociated with this action. Now, while the EU was
to not peg the value of its currency to the euro, able to respond to the eurozone crisis and create
preventing it from meeting all 5 convergence mechanisms to help it combat another crisis, it
criteria136. The main reason as to why the Swed- might find itself stretched too thin if too many
ish population voted to keep its own currency countries seek bailouts from the EU at some
was to preserve its national sovereignty from the point in the future. Since the stability of the
EU137. This differs slightly from the reasons as euro is dependent on the economic stability of
to why Denmark chose to not join the eurozone, the members of the eurozone, it might be in the
and once again highlights how the euro and the best interests of the EU to expand the eurozone
convergence criteria function as a political mech- in a more controlled manner and let its members
anism within the EU. However, in recent years take their time to fulfill the convergence criteria.
 Harvard Model United Nations 2023 23

However, the EU also risks a loss of legitimacy if committee, you will need to conduct research on
it isn’t strict enough when enforcing rules such as a variety of elements including, but certainly not
the requirement to meet the convergence criteria. limited to: your nation’s past actions & subse-
Failure to do this could cause the EU to appear quent reactions, the agenda of your nation’s cur-
weaker in the global economy, which would rent government and any major political move-
discourage nations such as Sweden and Denmark ments, and recent events that have impacted
from pursuing entry into the eurozone. your nation. Through this research, you will be
Another element to consider when debating more able to address the topic at hand and adapt
the enforcement of the convergence criteria is to any events that may occur within committee.
how nations have already used these criteria. As Reform How the Eurozone is Managed
we saw with Greece and Estonia, meeting the A resolution to reform the eurozone could help
criteria to join the eurozone was part of an effort to address the ongoing pressures on the euro and
to send a signal that they had strengthened their the eurozone caused by the COVID-19 econom-
economies and were ready to fully commit to the ic recovery and the Russian invasion of Ukraine.
EU. If the criteria become more strictly enforced, Actions in a resolution taking this path might
nations outside the eurozone may no longer seek seek to create new programs that could help the
to meet the criteria, as it would no longer send eurozone tackle potential crises, or could reform
the same signal of strength to foreign investors. how eurozone members engage in fiscal policy
It’s possible that stricter enforcement may also within their own borders. Another option could
encourage nations such as Denmark to consider be to alter the process through which EU mem-
a Brexit-style exit from the EU in order to guar- bers join the eurozone, or to even create a path
antee their economic independence. If the mem- where nations can leave the eurozone altogether.
ber states with larger and stronger economies There are a plethora of different approaches that
pursue this action, it could completely disrupt could be taken by a resolution that seeks to
the stability of the EU and cause its collapse. reform the eurozone, so I highly encourage you
All of these factors need to be considered by the to get creative!
EU when determining how the eurozone should
be expanded. As we’ve seen, there are a variety Enforce the Convergence Criteria
of negative consequences that the EU may be Another option that the EU and its member
impacted with by certain paths of action. It is on states could consider would be an increase in
you, delegates, to find a solution that guarantees the enforcement of the convergence criteria and
the long-term viability of the EU and completes the requirement that all EU nations join the
its mission to fully unite its member states politi- eurozone. As we have seen, times of economic
cally and economically. That is, of course, as- hardship such as the eurozone crisis have caused
suming that the stability of the EU is in the best public sentiment towards the euro to decrease,
interests of your nation. delaying the process by which EU members join
the eurozone. However, as we’ve seen through
PROPOSED SOLUTIONS the efforts of Croatia and Bulgaria to join the
euro, as well as the increasing sentiment for the
Here, I’d like to give you all an idea of some euro in Sweden, now might be the time to begin
of the more general solutions that have been enforcing the convergence criteria and fully inte-
proposed to address the issues presented in either grate all members of the EU into the eurozone.
of the two sub-topics. However, it’s important to
note that these aren’t the only potential solutions Abandon the Euro
that you may debate in committee. In order to This is one of the most extreme actions that the
determine where your assigned nation might committee can take throughout the conference
stand with some of the solutions presented in weekend, and would be pursued by nations
this section or any other solutions brought up in that feel that the eurozone is harming all the
24 Background Guide: European Union

members of the EU. As you may discover in Leave the Eurozone

your research, there is no established precedent If your nation is currently in the eurozone, a
for any member leaving the eurozone, let alone route that you consider as you complete your
the entire disbandment of the eurozone. This is research may be abandoning the euro. Similar to
largely because the EU had established the euro those who might try to join the eurozone, any
and the eurozone as being permanent aspects of attempts to leave will also occur with immediate
the EU. Therefore, should you determine that effect. However, it’s important to remember that
this is the best route for your nation, it is expect- there is no precedent for any nation leaving the
ed that you will take the numerous impacts that eurozone, so it’s possible that an attempt by a
this action will have into consideration, includ- singular nation to leave the eurozone may have
ing the subsequent transition from the euro back drastic impacts on everyone in committee. As
to national currencies, as well the possibility of a stated earlier, this course of action may not be
domino effect that causes the collapse of the EU. considered until Saturday at the earliest due to
Also, due to the severity of this course of action, its potential consequences.
any attempts to abandon the euro will not be
entertained until Saturday at the earliest, due POTENTIAL BLOC POSITIONS
to the significant impacts it would have on the
Throughout the conference weekend, you will
entirety of the EU.
form blocs with your fellow committee members
Individual Solutions as you begin to deliberate solutions and work
As you conduct your research, you might find on working papers. In this section, I will outline
that there is a more individualized path of action some of the positions that potential blocs could
that your nation would favor. Such actions might take. As I said in the previous section, these are
concern your nation’s membership in the euro- only suggestions, and it is your responsibility to
zone or your engagements with other nations conduct research on your designated nation in
both inside and outside the EU. While I en- order to determine where your nation would
courage all of you to consider potential options, stand. You may also choose to take a position
please note that any individual actions must be not mentioned in this section, if your research
passed through committee in order to occur. Ad- leads you to believe that it aligns with the views
ditionally, this list of individual solutions is just of your nation. Another element to consider
some suggestions, so feel free to get creative! is that your nation may fall into several of the
Enter the Eurozone blocs mentioned here; however, as you progress
If your nation is not currently in the eurozone through the weekend, you might find it in your
or on track to join the eurozone within the next best interests to prioritize some blocs over others
year, you have the option to enter the eurozone. as you begin to draft working papers and eventu-
This would see your nation transition from using ally compile resolutions.
your national currency to the euro, as well as the Expand the Eurozone
lifting of any remaining trade barriers between A bloc with this position would be likely to at-
your nation and the rest of the eurozone. While tempt to ensure that the EU’s goal of complete
the process of joining the eurozone takes two economic integration is achieved by having all
years at the minimum due to the exchange rate members of the EU join the eurozone. However,
requirement, any actions to join the eurozone there is the possibility that there may be tensions
will occur with immediate effect within com- within this bloc when it comes to how this ex-
mittee, with the assumption that you met all the pansion should be achieved. Some of you might
requirements to join the eurozone. find that this course of action may only be suc-
cessful if the EU becomes more strict about how
the convergence criteria are enforced. Others
 Harvard Model United Nations 2023 25

might find that the current status quo with the incredibly important and interesting aspect of
convergence criteria works for the EU, but that the conference experience, it is essential that the
the eurozone should provide more incentives resolutions drafted and presented to the commit-
that would draw the remaining EU members to tee address the following key questions. If these
join the eurozone. questions are not addressed in a resolution, it
will not be entertained in committee.
Reform the Eurozone • How can the EU address the rising discon-
Another bloc that may arise throughout the tent caused by rising prices, especially in the
conference weekend would be composed of energy sector?
nations who believe that there are fundamental, • Will the EU create any relief programs to
but resolvable, issues within the eurozone that subsidize energy costs for nations impacted
prevent full integration between member states. by natural gas shortages throughout the win-
Nations in this bloc may believe that the euro- ter? If so, where will the funding for these
zone is not suited to deal with the impending subsidies come from?
energy crisis, and needs to be improved so that • Will the EU take any action to strengthen
nations in need of financial support down the the euro in the global economy?
line can more easily obtain it. Other members • Should the EU consider allowing nations to
within this bloc may believe that the eurozone is withdraw from the eurozone?
too restrictive on its members due to its controls • How will the EU proceed with admitting
over monetary and fiscal policy. These nations more nations to the eurozone? Will the cri-
might seek to restore sovereignty over economic teria be forced onto nations, or will member
policy to the governments of the member states states be allowed to fulfill the criteria at their
of the eurozone. own pace?
Disband the Eurozone • Should the EU make any changes to how the
Lastly, this bloc may believe that the eurozone is euro is managed as a currency?
a flawed union that only harms the EU. These • Will the process to join the eurozone be
nations may believe that the eurozone only integrated into the process to join the EU,
weakens their member states by making them effectively merging them into one singular
dependent on each other in times of need, and process?
that the common market alone is sufficient to While these questions must be addressed by the
promote economic activity. Nations in this bloc committee throughout the conference weekend,
may be dissatisfied with the current response to I still highly encourage any further discussions
the COVID-19 economic recovery and the Rus- on elements that you believe are also relevant to
sian invasion of Ukraine, and find that it would the EU, the eurozone, and the current situation.
be better to pursue their own course of action.
Additionally, they may also find that the euro is a
Suggestions For Further Research
flawed currency and the EU does not sufficiently When starting your research for this committee,
enforce its policies surrounding the euro. it might be helpful to start by examining your
nation’s current status within the eurozone. If
QUESTIONS A RESOLUTION it is a member of the eurozone, how long did it
MUST ANSWER take to meet the convergence criteria? Were there
any barriers that delayed the process? How has
As you work towards creating a thorough resolu- your nation’s opinion of the euro changed since?
tion to be passed by the committee at the end of If your nation has not yet joined the eurozone,
the weekend, it is expected that many working why hasn’t it met the criteria yet? What is the
papers will be drafted and debated as we prog- current public opinion within your nation con-
ress through the intricacies of the issues at hand.
While the debates over these complexities are an
26 Background Guide: European Union

cerning the euro? Is your nation’s government ress throughout the conference weekend.
planning to join the eurozone at some point in The topic at hand is not an easy one to resolve; it
the future? Each of these questions can help you asks you to find a way to promote and preserve
determine where your nation stands on the issue the EU’s ideals for unity, without letting that
at hand and guide your research as you continue unity hold it back from progress. As we saw with
to delve into the topic of this committee. the eurozone crisis, the unity of the EU has the
Another key element to research is which nations potential to promote economic recovery, while
in the committee are you likely to find yourself also having the potential to spread economic
agreeing with as debate progresses? This can be hardship from member to member. Now, the
essential for determining who will be in your eurozone faces two extreme economic issues at
bloc(s) and who might be the best to collaborate the same time, potentially leading to another
with on a working paper or resolution. crisis with a magnitude similar to the eurozone
You should also consider how your assigned na- crisis. At the same time, the EU and eurozone
tion has reacted to the EU’s economic recovery still have issues lingering from the creation of the
from COVID-19 or its economic response to eurozone in the 1990s that have the potential to
the Russian invasion of Ukraine. This can be drive the future growth of the eurozone.
essential as the circumstances of the EU may Throughout the conference weekend, I am
change as we progress through the weekend, optimistic that you all will present creative and
making adaptability essential for all delegates. unique ideas that have the potential to resolve
In order to successfully draft a working paper the crisis at hand while simultaneously building
or resolution that adequately covers the issue at on the core ideals of the EU. I also look forward
hand, it’s crucial to understand the functions of to seeing how you all work together to come up
the EU, its relevant institutions and programs, as with a solution while trying to advance your own
well as the EU’s jurisdiction over economic and national interests, even if that means causing a
political matters. This will be essential especially little chaos in committee.
if the committee entertains drastic changes to In making this guide, I have aimed to set the
the eurozone (such as its disbandment). stage for the debates that will occur in commit-
Lastly, there is also the potential for the current tee throughout the conference weekend. Now, it
state of affairs to change in the time leading up is your turn to conduct your research on your
to the conference, especially with the subtopic own nation, not just to understand where you
focusing on the Russian invasion of Ukraine. stand on the issue at hand, but to also maximize
Therefore, I encourage you to keep up with EU your success as a delegate at this year’s HMUN.
and global affairs in the time leading up to the As always, if any questions arise between now
committee. For me, I find that the best way to and the start of conference, please contact me at
do this is by following news outlets such as AP, [email protected]. I look forward to seeing
Reuters, the Economist, or the BBC. Addition- you all in January!
ally, POLITICO’s Brussels Playbook provides Best regards,
daily summaries of actions of the EU for free, so Taryn O’Connor
I highly suggest that you register for it as part of Director, European Union
your preparations for committee.

CLOSING REMARKS
Dear Delegates,
Welcome to the end of the background guide! I
hope that this guide has provided you all with a
thorough overview of the issue to be tackled in
committee, and how I’d like to see debate prog-
 Harvard Model United Nations 2023 27

POSITION PAPER GUIDELINES hope that delegates will be able to illustrate clear
knowledge of their country’s policies and interests
Once you have completed your preliminary instead of simply reiterating parts of the Background
research, you are ready to write your position paper. Guide.
Unless otherwise indicated in the respective committee A position paper should include three sections,
background guide, HMUN requires delegates to outlined below:
write a one single-spaced page position paper. These
papers should be submitted on MUNBase no later A. Background of the Topic
than January 15th. Your Director’s email address can
be found either in your Background Guide, or the • In your country’s opinion, what are the
HMUN website. Each position paper has three basic main elements of the problem?
parts: your country’s national interests, your country’s • What are the roots of those elements?
national policies, and your opinion on potential
resolution components. National interests are what a B. Position taken by your delegation
country would like to see happen in the world (e.g. • What are your national interests in the
Cameroon, a lesser developed country troubled by situation?
terrorism, wants to reduce the incidence of terrorism • What are your nation’s policies on the topic?
to stabilize its government). These interests are not • What steps would you like to see taken to
subject to compromise, but instead generally idealized deal with the problem?
goals or methods of solving specific problems.
National policies are the country’s attempts C. Proposed Solutions
to secure its interests (e.g. Cameroon, in an effort • What does your nation believe needs to be
to combat terrorism, has sought to enter into new done to solve the problem?
extradition treaties). These policy positions are usually • What do you predict will be the main
open to negotiation. Your opinions on potential opposition to your proposals?
resolution components are your responses to the
“Proposed Solutions” and “Questions A Resolution Position papers should roughly adhere to the
Must Answer” sections of the Background Guide. above form, with the Country, the Committee, and
Although these sections provide flexibility, you need the Topic included at the top. Please limit your
to keep in mind the interests of your nation. Possible paper to one single-spaced typed page. A sample
resolutions must be consistent with your country’s position paper may be found in the Guide to
national interests and current national policies (e.g. Delegate Preparation.
Cameroon feels that any resolution on the prevention
of terrorism must assign to the injured state the right
to try the terrorists. In addition, Cameroon would
not be averse to the establishment of an international
information network on terrorism. Cameroon,
however, will not support any resolution that allows
terrorist acts to be protected from extradition under
the political offense exception doctrine).
Writing position papers benefits you in many
ways. The staff reads over the position papers
and summarizes them in order to gauge what the
committee will be like and to see which delegates have
done a good job preparing for the conference. Most
importantly, writing a position paper makes you think
about the information you have researched and helps
you to express ideas concisely and clearly, making you
better prepared for the conference.
The structuring of the position papers is intended
to elicit responses from the delegates that provide a
clear picture of a nation’s stance on a particular topic
area. By providing an outline of a position paper, we
28 Background Guide: European Union

ENDNOTES
1 “History of the European Union 1945-59.” European Union, https://european-union.europa.eu/principles-countries-history/history-
eu/1945-59_en. Accessed 17 Sept. 2022.
2 Ibid.
3 Ibid.
4“European Coal and Steel Community.” Britannica, https://www.britannica.com/topic/European-Coal-and-Steel-Community. Accessed 17
Sept. 2022.
5 “History of the European Union 1945-59.”
6 “Europe’s Common Market Founded in Major Step toward Economic Unity.” HISTORY, 9 Feb. 2010, https://www.history.com/this-day-in-
history/common-market-founded.
7“European Parliament Timeline: From Past to Present.” European Parliament, https://www.europarl.europa.eu /infographic/european-parlia-
ment-timeline/index_en.html. Accessed 17 Sept. 2022.
8 “History of the European Union 1960-69.” European Union, https://european-union.europa.eu/principles-countries-history/history-
eu/1960-69_en. Accessed 17 Sept. 2022.
9 Ibid.
10 Ibid.
11“History of the EU Customs Union.” European Commission, https://taxation-customs.ec.europa.eu/history-eu-customs-union_en. Accessed
17 Sept. 2022.
12 “History of the European Union 1970-79.” European Union, https://european-union.europa.eu/principles-countries-history/history-
eu/1970-79_en. Accessed 17 Sept. 2022.
13 Chrismer, Andrew. “Spotlighting the European Regional Development Fund (ERDF): Yesterday and Today.” German Marshall Fund, https://
www.gmfus.org/news/spotlighting-european-regional-development-fund-erdf-yesterday-and-today. Accessed 17 Sept. 2022.
14 Ibid.
15 “History of the European Union 1980-89.” European Union, https://european-union.europa.eu/principles-countries-history/history-
eu/1980-89_en. Accessed 17 Sept. 2022.
16 Nelsson, Richard. “The First European Elections, June 1979.” The Guardian, 23 Jan. 2019. The Guardian, https://www.theguardian.com/
politics/from-the-archive-blog/2019/jan/23/first-european-elections-june-1979.
17 “History of the European Union 1990-99.” European Union, https://european-union.europa.eu/principles-countries-history/history-
eu/1990-99_en. Accessed 17 Sept. 2022.
18 Ibid.
19 Ibid.
20Ibid.
21 Ibid.
22 Ibid.
23 Ibid.
24 “The Amsterdam Treaty of 2 October 1997 - European Organisations.” CVCE.EU by UNI.LU, https://www.cvce.eu/en/collections/unit-
content/-/unit/d5906df5-4f83-4603-85f7-0cabc24b9fe1/bb4a9f06-34fc-41e1-b237-ccc7543dd9f6. Accessed 17 Sept. 2022.
25 “History of the European Union 1990-99.”
26 Hämäläinen, European Central. “The Euro: The Birth of a New Currency.” European Central Bank, 21 May 1999, https://www.ecb.europa.
eu/press/key/date/1999/html/sp990521.en.html.
27 “Conditions for Joining the Euro Area: Convergence Criteria.” European Council, https://www.consilium.europa.eu/en/policies/joining-the-
euro-area/convergence-criteria/. Accessed 17 Sept. 2022.
28 Adler-Nissen, Rebecca. “Introduction.” Opting Out of the European Union: Diplomacy, Sovereignty and European Integration, Cambridge
University Press, 2014, pp. 1–24. Cambridge University Press, https://doi.org/10.1017/CBO9781107337916.001.
29 “Conditions for Joining the Euro Area: Convergence Criteria.”
30 Ibid.
31 “History of the European Union 2000-09.” European Union, https://european-union.europa.eu/principles-countries-history/history-
eu/2000-09_en. Accessed 17 Sept. 2022.
32 “Eurosystem Mission.” European Central Bank, 2 Apr. 2020, https://www.ecb.europa.eu/ecb/orga/escb/eurosystem-mission/html/index.
en.html.
33 “Euro Issuance.” Banca D’Italia, https://www.bancaditalia.it/compiti/emissione-euro/https%3A%2F%2Ffanyv88.com%3A443%2Fhttps%2Fwww.bancaditalia.
it%2Fcompiti%2Femissione-euro%2Findex.html%3Fcom.dotmarketing.htmlpage.language%3D1. Accessed 17 Sept. 2022.
34 “The Eurosystem.” Banca D’Italia, https://www.bancaditalia.it/chi-siamo/eurosistema/https%3A%2F%2Ffanyv88.com%3A443%2Fhttps%2Fwww.bancaditalia.it%2Fchi-
siamo%2Feurosistema%2Findex.html%3Fcom.dotmarketing.htmlpage.language%3D1. Accessed 17 Sept. 2022.
35 Ibid.
36 “History of the European Union 2000-09.”
37 Ibid.
38 Ibid.
39 Adler-Nissen.
40 “What Is the Euro Area?” European Commission, https://economy-finance.ec.europa.eu/euro/what-euro-area_en. Accessed 17 Sept. 2022.
41 “Croatia Set to Join the Euro Area on 1 January 2023: Council Adopts Final Required Legal Acts.” European Council, https://www.consilium.
europa.eu/en/press/press-releases/2022/07/12/croatia-set-to-join-the-euro-area-on-1-january-2023-council-adopts-final-required-legal-acts/.
Accessed 17 Sept. 2022.
42 “Bulgaria and the Euro.” European Commission, https://economy-finance.ec.europa.eu/euro/eu-countries-and-euro/bulgaria-and-euro_en.
Accessed 17 Sept. 2022.
43Höpner, Martin. “Should Sweden Adopt the Euro?” European Policy Analysis, Nov. 2017, p. 4.
44 Phillips, Leigh. “Brussels: ‘No One Can Leave the Euro.’” EUobserver, 9 Sept. 2011, https://euobserver.com/news/113563.
45 Higgins, Matthew, and Thomas Klitgaard. “The Balance of Payments Crisis in the Euro Area Periphery.” Current Issues in Economics and
Finance, vol. 20, no. 2, 2014, pp. 1–8.
46 Beckworth, David. “The Monetary Policy Origins of the Eurozone Crisis.” Mercatus Working Paper, June 2016, p. 47.
47 Baldwin, Richard, and Francesco Giavazzi. “The Eurozone Crisis: A Consensus View of the Causes and a Few Possible Solutions.” CEPR, 7
Sept. 2015, https://cepr.org/voxeu/columns/eurozone-crisis-consensus-view-causes-and-few-possible-solutions.
48 Frieden, Jeffry, and Stefanie Walter. “Understanding the Political Economy of the Eurozone Crisis.” Annual Review of Political Science, vol.
 Harvard Model United Nations 2023 29

20, no. 1, 2017, pp. 371–90. Annual Reviews, https://doi.org/10.1146/annurev-polisci-051215-023101.

49 Ibid.
50Gros, Daniel. “The Eurozone Crisis as a Sudden Stop: It Is the Foreign Debt Which Matters.” CEPR, https://cepr.org/voxeu/columns/
eurozone-crisis-sudden-stop-it-foreign-debt-which-matters. Accessed 17 Sept. 2022.
51 Ibid.
52 “Greece’s Debt Crisis Timeline.” Council on Foreign Relations, https://www.cfr.org/timeline/greeces-debt-crisis-timeline. Accessed 17 Sept.
2022.
53 Ibid.
54 Charlemagne. “Europe’s 750 Billion Euro Bazooka.” The Economist, 10 May 2010. The Economist, https://www.economist.com/char-
lemagne/2010/05/10/europes-750-billion-euro-bazooka.
55 “Greece’s Debt Crisis Timeline.”
56 Ibid.
57 Volkery, Carsten. “Euro Zone Finance Ministers Avert Greek Bankruptcy in Marathon Talks.” Der Spiegel, 27 Nov. 2012. www.spiegel.de,
https://www.spiegel.de/international/europe/euro-zone-finance-ministers-avert-greek-bankruptcy-in-marathon-talks-a-869487.html.
58 “Greece’s Debt Crisis Timeline.”
59 Ibid.
60 Ibid.
61 Ibid.
62 Ibid.
63 Ibid.
64Campbell, Bruce, and Lawrence Mishel. “Death of the Celtic Tiger: A Cautionary Irish Tale.” Economic Policy Institute, 16 Feb. 2011, https://
www.epi.org/publication/death_of_the_celtic_tiger/.
65 Ibid.
66 Wijffelaars, Maartje, and Herwin Loman. “Eurozone (Debt) Crisis: Country Profile Ireland.” Rabobank, 18 Dec. 2015, https://economics.
rabobank.com/publications/2015/december/eurozone-debt-crisis-country-profile-ireland/.
67 McDonald, Henry. “Fianna Fáil Trounced as Fine Gael and Labour Set to Form Coalition.” The Observer, 26 Feb. 2011. The Guardian,
https://www.theguardian.com/world/2011/feb/26/fianna-fail-irish-general-election.
68 “Irish Bank Resolution Corporation (IBRC).” gov.ie, 23 Jan. 2018, https://www.gov.ie/en/publication/97fb9b-irish-bank-resolution-
corporation-ibrc/.
69 Gleeson, Colin. “Jean-Claude Trichet and the Irish Bailout: A Timeline.” The Irish Times, https://www.irishtimes.com/business/economy/
jean-claude-trichet-and-the-irish-bailout-a-timeline-1.1990882. Accessed 17 Sept. 2022.
70 “Irish Bank Resolution Corporation (IBRC).”
71 Gleeson.
72 Kambas, Michele, et al. “Insight: Why Did Cypriot Banks Keep Buying Greek Bonds?” Reuters, 30 Apr. 2013. www.reuters.com, https://www.
reuters.com/article/cyprus-banks-investigation-idINDEE93T07220130430.
73 Ibid.
74 Osborne, Hilary, and Josephine Moulds. “Cyprus Bailout Deal: At a Glance.” The Guardian, 25 Mar. 2013. The Guardian, https://www.
theguardian.com/business/2013/mar/25/cyprus-bailout-deal-at-a-glance.
75 “European Court Dismisses Compensation Claim in Cyprus 2013 Deposit-Grab.” Reuters, 13 July 2018. www.reuters.com, https://www.
reuters.com/article/us-cyprus-banks-idUSKBN1K3242.
76 Ibid.
77 Ellyatt, Holly. “That Was Quick! Cyprus Exits Bailout with Cash to Spare.” CNBC, 8 Mar. 2016, https://www.cnbc.com/2016/03/08/that-
was-quick-cyprus-exits-bailout-with-cash-to-spare.html.
78 Royo, Sebastián. “From Boom to Bust: The Economic Crisis in Spain 2008–2013.” Why Banks Fail, June 2020, pp. 119–40. PubMed
Central, https://doi.org/10.1057/978-1-137-53228-2_4.
79 Ibid.
80 Minder, Raphael, et al. “Spain to Accept Rescue From Europe for Its Ailing Banks.” The New York Times, 9 June 2012. NYTimes.com, https://
www.nytimes.com/2012/06/10/business/global/spain-moves-closer-to-bailout-of-banks.html.
81 Chislett, William. “The Conundrum of Spain’s Recovering Economy and Stubbornly High Unemployment.” Real Instituto Elcano, 15 Sept.
2017, https://www.realinstitutoelcano.org/en/analyses/the-conundrum-of-spains-recovering-economy-and-stubbornly-high-unemployment/.
82 Balfour, Sebastian. “The Catalan and Spanish Crisis: A European Perspective.” European Politics and Policy, 3 July 2018, https://blogs.lse.
ac.uk/europpblog/2018/07/03/the-catalan-and-spanish-crisis-a-european-perspective/.
83 Ibid.
84 Dullien, Sebastian. “Reinventing Europe: Explaining the Fiscal Compact – European Council on Foreign Relations.” ECFR, 1 May 2012,
https://ecfr.eu/article/commentary_reinventing_europe_explaining_the_fiscal_compact/.
85 Ibid.
86 Sibert, Anne. “The EFSM and the EFSF: Now and What Follows.” European Parliament, Sept. 2010, https://www.europarl.europa.eu/docu-
ment/activities/cont/201009/20100908ATT81666/20100908ATT81666EN.pdf.
87 “History.” European Stability Mechanism, https://www.esm.europa.eu/about-us/history. Accessed 18 Sept. 2022.
88 Ibid.
89 “Conditions for Joining the Euro Area: Convergence Criteria.”
90 Ibid.
91 Ibid.
92 Ibid.
93 De Grauwe, Paul. “The Politics of the Maastricht Convergence Criteria.” CEPR, 15 Apr. 2009, https://cepr.org/voxeu/columns/politics-
maastricht-convergence-criteria.
94 Ibid.
95 Paleta, Tomáš. “Maastricht Criteria Of…Divergence?” Review of Economic Perspectives, vol. 12, no. 2, Jan. 2012. DOI.org (Crossref ), https://
doi.org/10.2478/v10135-012-0005-7.
96 Ibid.
97 “Report on the Comprehensive Economic Policy Response to the COVID-19 Pandemic.” European Council, 9 Apr. 2020, https://www.
consilium.europa.eu/en/press/press-releases/2020/04/09/report-on-the-comprehensive-economic-policy-response-to-the-covid-19-pandemic/.
98 Ibid.
99 Nelson, Eshe. “Inflation Is Posing 19 Problems for One Central Bank.” The New York Times, 2 July 2022. NYTimes.com, https://www.
nytimes.com/2022/07/02/business/europe-inflation.html.
30 Background Guide: European Union

100 Sapir, André. “Why Has COVID-19 Hit Different European Union Economies so Differently?” Policy Contribution, no. 18, Sept. 2020,
p. 13.
101 “Recovery Plan for Europe.” European Commission, https://ec.europa.eu/info/strategy/recovery-plan-europe_en. Accessed 18 Sept. 2022.
102 “Maps: Tracking the Russian Invasion of Ukraine.” The New York Times, 12 Sept. 2022. NYTimes.com, https://www.nytimes.com/interac-
tive/2022/world/europe/ukraine-maps.html.
103 Farge, Emma. “U.N. Expecting 8.3 Mln Refugees from Ukraine This Year | Reuters.” Reuters, 26 Apr. 2022, https://www.reuters.com/
world/europe/un-expecting-83-mln-refugees-ukraine-this-year-2022-04-26/.
104 Look, Carolynn. “ECB Sees Ukraine Refugees Lifting Workforce by Up to 1.3 Million.” Bloomberg.Com, 20 June 2022. www.bloomberg.
com, https://www.bloomberg.com/news/articles/2022-06-20/ecb-sees-ukraine-refugees-lifting-workforce-by-up-to-1-3-million.
105 Twidale, Susanna, and Nora Buli. “EU Gas Price Rockets Higher after Russia Halts Nord Stream Flows.” Reuters, 5 Sept. 2022. www.
reuters.com, https://www.reuters.com/business/energy/no-stream-eu-gas-markets-brace-price-surge-after-latest-russia-gas-cut-2022-09-04/.
106 Knight, Ben. “The History of Nord Stream.” DW, 23 July 2021, https://www.dw.com/en/the-history-of-nord-stream/a-58618313.
107 lliott, Stuart, and Andreas Franke. “Germany Says Nord Stream 2 Gas Pipeline Certification Cannot Now Go Ahead.” S&P Global Com-
modity Insights, 22 Feb. 2022, https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/natural-gas/022222-germany-
says-nord-stream-2-gas-pipeline-certification-cannot-now-go-ahead.
108 Noryskiewicz, Anna. “As Russia Turns off the Gas, Can Germany and Its EU Neighbors Stay Warm This Winter?” CBS News, 2 Sept.
2022, https://www.cbsnews.com/news/russia-cuts-off-gas-to-europe-ukraine-war-germany-eu-energy/.
109 Oltermann, Philip. “Eurozone Crisis in Reverse as Southern States Scold Germany over Gas.” The Guardian, 26 July 2022. The Guardian,
https://www.theguardian.com/world/2022/jul/26/germany-worst-in-europe-for-reliance-on-russian-gas.
110 Ibid.
111 Ibid.
112 Ward-Glenton, Hannah. “Euro Zone Inflation Hits Another Record of 9.1% as Food and Energy Prices Soar.” CNBC, 31 Aug. 2022,
https://www.cnbc.com/2022/08/31/euro-zone-inflation-hits-another-record-of-9point1percent-as-food-and-energy-prices-soar.html.
113 Ibid.
114 Spain Will Cut VAT on Gas from 21% to 5% Starting in October 2022.” Enerdata, 1 Sept. 2022, https://www.enerdata.net/publications/
daily-energy-news/spain-will-cut-vat-gas-21-5-starting-october-2022.html.
115 Chestney, Nina. “Factbox: Europe’s Efforts to Shield Households from Soaring Energy Costs.” Reuters, 4 Sept. 2022. www.reuters.com,
https://www.reuters.com/business/energy/europes-efforts-shield-households-soaring-energy-costs-2022-09-02/.
116 Ibid.
117 “What Does It Mean That the Euro Has Fallen below Parity with the Dollar?” PBS NewsHour, 23 Aug. 2022, https://www.pbs.org/news-
hour/economy/ask-the-headhunter/what-does-it-mean-that-the-euro-has-fallen-below-parity-with-the-dollar.
118 “Questions and Answers on the Convergence Report 2022.” European Commission, 1 June 2022, https://ec.europa.eu/commission/press-
corner/detail/en/QANDA_22_3313.
119 Balogh, András. “Hungarians Want to Replace Forint with Euro, but the Government Does Not.” Daily News Hungary, 16 July 2021,
https://dailynewshungary.com/will-hungary-adopt-the-euro/.
120 “Greece and the Euro.” European Commission, https://economy-finance.ec.europa.eu/euro/eu-countries-and-euro/greece-and-euro_en.
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121 Galanos, George, et al. “Greece and the Euro: The Chronicle of an Expected Collapse.” Intereconomics, vol. 46, no. 5, 2011, pp. 263–69.
122 Alogoskoufis, George. “Euro Area Participation and the Greek Economy: The First Twenty Years.” Greece@LSE, 19 Jan. 2022, https://
blogs.lse.ac.uk/greeceatlse/2022/01/19/euro-area-participation-and-the-greek-economy-the-first-twenty-years/.
123 Ibid.
124 “EU and Eurozone over Time.” Destatis, https://www.destatis.de/Europa/EN/Country/EU-Member-States/_EU_EZ_Zeitverlauf_en.html.
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125 Ibid.
126 “A Successful Euro Changeover in Estonia.” European Commission, https://ec.europa.eu/economy_finance/articles/euro/estonia_euro_
en.htm. Accessed 18 Sept. 2022.
127 “EU Gives Croatia Final Green Light to Adopt Euro in 2023.” France 24, 12 July 2022, https://www.france24.com/en/europe/20220712-
eu-gives-croatia-final-green-light-to-adopt-euro-in-2023.
128 Ibid.
129 Ibid.
130 “Bulgaria Sticks to Plan to Adopt the Euro in 2024 amid Coalition Squabbles.” Reuters, 27 May 2022, https://www.reuters.com/markets/
europe/bulgaria-sticks-plan-adopt-euro-2024-amid-coalition-squabbles-2022-05-27/.
131 Svensson, Palle. “The Danish Yes to Maastricht and Edinburgh. The EC Referendum of May 1993.” Scandinavian Political Studies, no. 1,
1994, https://tidsskrift.dk/scandinavian_political_studies/article/download /32803/31055?inline=1.
132 “The Danish Opt-Outs from EU Cooperation.” The Danish Parliament, 14 Aug. 2019, https://www.thedanishparliament.dk/en/eu-
information-centre/the-danish-opt-outs-from-eu-cooperation.
133 Ibid.
134 Jørgensen, Carsten. “Denmark Votes No to the Euro.” Eurofound, 27 Oct. 2000, https://www.eurofound.europa.eu/publications/ar-
ticle/2000/denmark-votes-no-to-the-euro.
135 Mroziewicz, Krzysztof. “Why Denmark Is Not Part of the Eurozone.” Mises Institute, 25 Nov. 2019, https://mises.org/power-market/why-
denmark-not-part-eurozone.
136 Cowell, Alan. “In a Referendum, Swedes Resoundingly Reject the Euro.” The New York Times, 15 Sept. 2003. NYTimes.com, https://www.
nytimes.com/2003/09/15/world/in-a-referendum-swedes-resoundingly-reject-the-euro.html.
137 Ibid.
138 Rolander, Niclas, and Ott Ummelas. “Swedish Support for EU Membership Rises to Record in Poll.” Bloomberg.Com, 8 June 2022. www.
bloomberg.com, https://www.bloomberg.com/news/articles/2022-06-08/swedish-support-for-eu-membership-rises-to-record-in-poll.
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