EUROPE: EUROPEAN UNION

The European Union is an economical and political union that covers a large portion of the European continent. Actually contains 27 sovereign member states: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg ,Republic of Malta, Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom. And It represents 30% of the world’s GDP, and has 23 official languages.
The European Union is founded upon numerous treaties but the European Coal and Steel Community in the Treaty of Paris (1951) was the beginning of this integration followed by the Treaty of Rome in which the European Economic Community (EEC) and Euratom where created (1957). In 1969 Heads of State or Government meet in The Hague to discuss completion of single market, greater integration and enlargement of the European Community. They agree to phase in economic and monetary union (EMU) by 1980, to speed up integration and cooperation on political matters, finally in 1992 the Maastricht Treaty on European Union was signed, founded "on the principles of liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law“
It objectives are the development of a common market where people, goods, services and capital can moved freely and also a customs union between its member states in which is apply a common external tariff on all goods entering the market.

There is a current discussion around the existence of the co-determinism principle in Germany. Select, define and explain 3 arguments in favor and 3 against such principle.

Co-determination is a practice whereby the employees have a role in management of a company. It began in Germany and at first there was only worker participation in management in the coal and steel industries. But in 1974, a general law was passed mandating that worker representatives hold seats on the boards of all companies employing over 500 people. 1

There are different points of view relating this matter, there are arguments in favor and against.

IN FAVOR:

1. On the assumption that the primary goal of employers is to maximise profits in the interests of shareholders, codetermination can reorient the company's goals in the interests of workers. A better balance may be struck so that the company interests are not so one sided. For unions, codetermination is part of democratising the economy. It is also a way for workers to better the terms and conditions of their contracts in an orderly and regulated way.

2. It can be an instrument for long term increase in productivity of the company. Some economists dispute this on the basis that the losses in efficiency in production outweigh any gains in productivity.

3.It can also foster innovation in the company, through the participation of all the member of the company

AGAINST:

1. Trade unions have long been calling for the clarification of supervisory duties and for the introduction of minority rights so that a disinterested majority is not able to allow management free run to do as it pleases. “Law on the Improvement of the Supervision and Transparency of Companies” 2

2. Many scholars have said that if the interest of the shareholder is to get profit, the principle of determinism is against that notion. The employees will make decisions according to their own benefit.

3. there is also an argument that although the co determinism principle try to give equity to all the members of the company the shareholder are going to have always one extra vote, making the decision making process unequal.

1. http://en.wikipedia.org/wiki/Co-determination
2. http://www.boeckler.de/pdf/p_arbp_033.pdf

http://en.wikipedia.org/wiki/Codetermination_in_Germany