Background Guide - TJHSST Activities

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TechMUN 2015
MS European Union
MS European Union
Thomas Jefferson High School Model United Nations Conference
TechMUN 2015
Middle School Specialized Committee
Chair: Richa Gupta
Chair: Abhi Mogili
TechMUN at Stuart Thomas Jefferson High School for Science and Technology and JEB Stuart
High School Fairfax, VA | April 10-11, 2015
TechMUN 2015
MS European Union
Messages from your Chairs
Welcome to the European Union at TechMUN 2015! My name is Richa Gupta, and I have the
honor of being one of your chairs this year. Before delving into the substance of the committee, I’d like to
tell you a little bit about myself. I was born in India,
spent my younger years in Cyprus and moved to the
United States during elementary school. I’m currently a
sophomore at Thomas Jefferson HS. If you ever find
me in my free time, I’m usually reading and listening
to alternative rock. I also enjoy dancing, painting, and
playing field hockey. Volunteering is one of the most
important parts of my life. One of the organizations
closest to my heart is the American Diabetes
Association. I am currently on a committee that
organizes a regional ride, the Northern Virginia Tour de Cure, in June to raise money for diabetes
awareness and research. My biggest passion, however, is most definitely Model UN. I started Model UN
in high school and this will be my first time chairing a committee. Having lived in Europe, this committee
is especially exciting for me, and I look forward to seeing the creative solutions you all come up with to
combat two important issues: the Eurozone Economic Crisis and Influx of Refugees.
TechMUN 2015
MS European Union
Hello Delegates of the European Union
my name is Abhi Mogili, and I have the special
distinction of being your chair for TECHMUN
2015. Outside of school I am an avid member of
my community through the boy scouts and the
Civil Air Patrol. In my free time I love to travel,
and have had the wonderful experience of
traveling to Germany, Iceland, and Austria last
summer for two weeks as an exchange student.
Last summer I also had the pleasure of traveling
to India to participate in my first international Model UN conference. One of the unique things about me
is my love for extreme sports. You can find me diving, flying a plane, or biking throughout Northern
Virginia. At TJ, I am an active member of the TJMUN club and am currently the fundraising coordinator
for the club. I have been to many national and local conferences where I have had the honor to work with
many interesting and great people. Moving toward this year’s TECHMUN, I am very excited to chair my
first committee! I look forward to seeing the intricate and innovative ideas that you as delegates will
debate about. The topic of refugees will definitely test the ability of member nations to change their
immigration policies, and the economic crisis will warrant new ideas to plan for the future.
We both expect a high level of debate and a wide variety of solutions from the EU delegates this
year, and are very excited to see all you at TechMUN this year! If you have any questions please don’t
hesitate to email us at [email protected].
Best Wishes,
Abhi & Richa
TechMUN 2015
MS European Union
History of the European Union:
Following the end of the World War II, Europe was a war-torn and divided continent in
desperate need of rebuilding. In the aftermath of the war, six countries signed the Treaty of Paris
in 1951, which was the beginning of the European Coal and Steel Community (ECSC), or
Schuman Plan, in which they would run their coal and steel industries under the same
management. West Germany, Italy, France, Belgium, Luxembourg, and the Netherlands all
signed this treaty to promote economic growth, as well as prevent any of the countries from
creating weapons, and mitigate the risk another large-scale war. Later on, in 1957, these same
countries signed the Treaty of Rome and created the European Economic Community (EEC) to
promote further economic integration. Then in 1965, under the Merger Treaty (Treaty of
Brussels), the EEC added institutions such as European Coal and Steel Community (ECSC) and
European Atomic Energy Community (EAEC) under its jurisdiction. In 1973, Denmark, Ireland,
and the United Kingdom joined the newly renamed European Community, sparking the interest
of many other nations wishing to join. The European Community had 10 members by 1981 and
12 by 1986. Also in 1986, the Single Market Treaty was signed to ensure free flowing trade
across borders and create a single market of trade for Europe. Finally in 1992, by the Maastricht
Treaty, the euro became the formal currency for Europe. After it began being utilized, foreign
and security policy were established, and there was greater collaboration on the country’s
affairs. Around the same time, the European Community was renamed the European Union.
Reorganization of the guidelines of the European Union in 2007 by the Treaty of Lisbon created
the form of the European Union still in place today. As of 2015 there are 28 member nations of
TechMUN 2015
MS European Union
the European Union. It has retained many of the same policies and values as the original
partnership in 1951.
How the EU works: http://europa.eu/about-eu/index_en.htm
Agencies of the EU: http://europa.eu/about-eu/agencies/index_en.htm
TechMUN 2015
MS European Union
Topic A: Eurozone Economic Crisis
Since the Great Recession spread to Europe from the United States, the European Union
(EU) has been in tenuous economic standings. Crashes in the market in 2008, 2011, and again in
2014 coupled with the banking
crisis and the rising debts of many
governments have left many of the
EU nations with minimal, or even
negative, growth. The European
Central Bank (ECB) began making
sweeping changes in 2013, starting
with tax reform. These changes
were most notable in the two
major tax havens of Europe, Cyprus and Liechtenstein (De Jong and LaFranco). Despite the
sinking economies and negative growth, their tax rates remain low and invite many foreign
corporations
European Union versus Eurozone
The European Union contains 28 states and 19 of these states are defined as part of the
Eurozone. These states use the euro as their primary currency and must follow monetary policy
created by the ECB, and must also collaborate in terms of their individual fiscal policies. The
other nine states in the EU, though at times do collaborate, are less involved in the workings of
the Eurozone, as they are not directly affected by the rise and fall of the euro. The nations in the
TechMUN 2015
MS European Union
Eurozone are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland,
Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and
Spain.
Definitions to know:
Deflation: Reduction of the general level of prices in the economy; declining GDP
growth.
Devaluation: When the value of a currency drops. For example, yesterday you could buy
bread with 1 euro, but today that same bread has to be bought with 2 euros.
GDP: Growth Domestic Produce, monetary value of the products of a certain nation or
area over a time period.
Inflation: Increase of the general level of prices in the economy; increasing GDP growth,
but also causes devaluation.
Recession: Period when the real GDP has been declining for two or more quarters.
The Euro
The Euro is one of the major freely traded currency. However, a recent large-scale
deflation of the Euro led to a trading value of only $1.13 USD has resulted in its lowest value in
eleven years. Recent drops in oil prices in late January 2015 furthered the deflation of the Euro
(Worstall). The main reason for deflation in the Eurozone is the “secular stagnation”. Meaning
that nations of the Eurozone are reliant on a zero interest economy for growth. Essentially, the
economy only grows if interest rates are at zero, which is a problem because then banks aren’t
making money either (interest rates are affected by monetary policy and therefore by the ECB).
Due to this, Eurozone nations aren’t able to cut down interest rates in times of crisis. Instead they
TechMUN 2015
MS European Union
have to print money, which is less effective, devaluing the euro. These devaluation rates and high
unemployment rates are creating a disaster situation in the Eurozone (Mason).
Stimulus Loans
With the drop in GDP in 2012, the European Central Bank has implemented many plans
and policies and was able to promote growth in some nations. Since 2012, the economy began to
grow in many nations. However, other nations, such as Greece, are nearing the end of their
previous loans and are unable to get extensions, especially in loan agreements from other
nations. Tensions are rising between borrower and lender nations within the EU as these dates
approach. For example, Greece was granted an extension from Germany in February 2015,
however, such a short period of time makes it difficult for Greece to fulfill a loan nearing 240
billion euros. Other countries are facing similar issues with loans that were originally meant to
foster their economies, but may end up causing an even larger strain. Loans were also taken from
the European Central Bank, private investors, Treasury bill holders, and the International
Monetary Fund.
Countries Defecting from the European Union
The recent economic tension has aggravated countries into talks of defaulting or
defecting from the European Union. This brings up fear because when one nation defects, other
nations become more likely to do so as well. However, regardless of which nations defect, the
Eurozone will face many problems. Earlier this year in February, Greece was at risk of
defaulting from the European Union; this defection, commonly know as the “Grexit”, could have
caused the defaulting of many other nations who invested in Greece. Furthermore, this could lead
to political instability in the EU. Similar effects would follow the defection of a more stable
TechMUN 2015
MS European Union
nation, especially because of the large amounts of fiscal support they provide to the European
Union (Bednarik).
Stimulus Plan
The ECB plans to begin their new stimulus plan in March of 2015 to work with nations in
order to increase GDP growth and help nations to work themselves out of debt (Leger, Davidson,
and Hjelmgaard). This plan focuses on an economy boost by implementing one trillion euros and
a quantitative easing (QE) system (Associated Press). The ECB plans to use a QE system similar
to the United States’ Federal Reserve's Quantitative Easing (QE) program. Through this
mechanism, they plan to buy €60 billion ($69.7 billion) of private and sovereign bonds from
pension funds, insurance funds, sovereign wealth funds, and banks per month (Sky). This would
be aimed to increasing inflation, maintaining low interest rates, and increasing cash flow in the
banking sector (Leger, Davidson, and Hjelmgaard). Because the ECB would be buying from
secondary markets, they would be able to bypass the condition in the Treaty of Lisbon
preventing them from directly extending credit to governments of the Eurozone. This
quantitative easing program would essentially create a stock market bubble, which would
promote greater cash flow through the economies. Quantitative easing programs in the United
States and Japan have stimulated growth and prevented massive deflation and monetary crisis.
However, some experts claim that in the United States, this program has only led to minimal
benefits. This is because they believed that only wealthy citizens benefitted. Therefore it took
longer for the program’s benefits to reach the lower strata of the economy (Sky).
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MS European Union
Stock Market
There has been a consistent trend of stock market jumps following the announcements of
various ECB plans or hopeful negotiation conclusions. Following the announcement of the ECB
stimulus plan, stock markets around the globe increased. Most importantly, the DAX by 1.3%,
France CAC by 1.5%, Britain FTSE by 1%, S&P 500 by 31.03 points to 2,063.15, and the Dow
Jones by 259.70 to 17,813.98 (Associated Press). Similarly, following Germany’s announcement
of Greece’s extension, the Dow Jones rose by 154.67 (or 0.86%) points to 18,140.44 while the
S&P 500 rose by 12.85 points (0.61%) to 2,110.3. Furthermore, Global X FTSE Greece 20
exchange-traded fund increased by 10.1 percent, while shares of the National Bank of Greece
jumped 21.7 percent to $1.96 (Valetkevitch).
Questions to Consider
1. How can the ECB combat deflation in the long term?
2. What parts of the European Stimulus Plan will combat poverty and promote economic
growth in the lower classes of society?
3.
In what ways can the European Union prevent the defection of member nations?
4. How can the EU promote GDP growth in its member nations?
5. How can the nations of the European Union decrease unemployment numbers?
Useful Links:
https://www.ecb.europa.eu/home/html/index.en.html
http://www.ehow.com/info_8104380_principles-macroeconomics-made-easy.html
TechMUN 2015
MS European Union
Topic B: Influx of Refugees
As a direct result of the Arab Spring and other movements of political and social unrest,
large numbers of African and Middle Eastern refugees have fled their homes in search of a better
lifestyle in the European Union. However the EU is not ready to receive and integrate them into
society. With proper integration, refugees could become a source of human capital,
entrepreneurship, and labor; an overall benefit to their host nation (Milton, Spencer, and Findley
5). Despite the benefits, there are many large-scale issues that must be taken into account,
including the reformation of the EU immigration policy to ensure that these refugees are able to
get the help they need.
The Journey
As of 2015, 1.5 million refugees reside within the European Union. (ECRE) Many of
them arrive on makeshift boats, including children and newborn babies from north African
states, such as Algeria and Tunisia (Sherwood et. al). After leaving Africa, many of the Refugees
find passageway into countries such as Italy, Greece, Austria, and France. On February 11th,
2015, over 300 refugees were feared dead after their boat sank in the Mediterranean (Aloisio).
Small scale steps have been taken by member nations such as Italy to safely guide these boats
into cities such as Lampedusa. Operations such as Triton initiated by the Italian coast guard does
not have saving human lives at its core but rather focuses its resources on protecting Italian
assets throughout the mediterranean from refugee ships (Faiola). With this as the primary
directive many international organizations have criticized the operations for not taking
consideration of the lives of those on board. However even if the refugees survive the perilous
TechMUN 2015
MS European Union
journey toward European mainland, not much has been done to ensure their safety within the
EU.
Countries Leading the Relief Efforts
Italy has established few refugee intake camps, often unsanitary and overcrowded. These
camps have been heavily criticized by the international community because of the poor living
conditions that mimic those in labor camps. Many of the refugees that arrive here are subjected
to the harsh treatment by camp staff due to their scarcity. (Riegert) After the refugees arrive in
these camps the process grinds to a halt in regards to granting asylum and providing steady
sources of income.
In Greece as stated by Spiegel Deutsch “they are held in squalid detention camps”. Many
human rights organizations have found these “camps” to be lacking basic human needs. In 2012,
over 8,000 Syrian refugees were arrested in Greece for illegally entering the country. This action
has caused much controversy and criticism to arise over the refugee policies of Greece and the
EU. Later on the EU Court of Human Rights ruled that Greece’s asylum system is “inadequate
and degrading.”
As a result of the lack of action that the EU in general has taken many of these new
refugees have taken up lives of crime and hostility to make ends meet. In central Italy, many
refugees have been jailed for stealing produce from farms and living in the middle of vineyards.
In addition the lack of healthcare access has catalyzed the spread of sexually transmitted diseases
such as HIV and AIDS.
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MS European Union
Asylum
Many refugees arrive in the EU in hopes of receiving asylum, however their applications
sometimes are not approved. Asylums were first introduced into the EU after member states
ratified the Geneva Convention of 1951 on the Status of Refugees. Further action to allow
refugee fluidity throughout the EU was instituted with the introduction of the Schengen
agreement of 1990. Today asylums are reserved for “people fleeing persecution or serious harm
in their own country and therefore in need of international protection” (Common European
Asylum System). On October 9, 2014 a large group of african refugees boarded a train from
Milan, Italy to Chiasso, Switzerland, hoping to have their asylum requests accepted. They often
protested, “Our Europe is without Borders”. Once an asylum application has been filled and
submitted the applicant is not allowed to leave the country of filling and is also not allowed to
file his or her request elsewhere. This obviously proves to be problematic as stated in an
UNHCR report only two syrian refugees per annum on average have the good fortune of having
their asylum applications accepted (Aloisio). However the refugees were met with a group of
police officers who simply did not allow them to leave the station in Chiasso. By the end of the
day, the refugees had made their statement, they wanted their applications to go through, and
they wanted them fast. The refugees were allowed to stay in Switzerland for up to three months
if they had papers, after which they would be sent back to Italy. Many would say that sending
the refugees back is a direct violation of the Schengen agreement, however others would argue
that this was a protective measure and since the Refugees were not european citizens it did not
apply to them.
TechMUN 2015
MS European Union
Economic Independence
The issue of providing jobs to theses refugees is one that rests on each states government,
although employers would like to provide these refugees with jobs, as they will most likely
accept lower wages, the refugees lack the paperwork needed. Many feel like they are forgotten
and feel that the only way to survive is to resort to desperate measures such as crime and
prostitution. Current systems that are in place lack the capacity and efficiency needed to deal
with the heavy volume of applications. With economic independence comes a double edged
sword where on one side it offers refugees employments, but also takes away the desirability to
hire local European citizens, who often ask for higher wages. This also increases the negative
sentiment among European citizens against refugees. With a steady source of income many
refugee families would be able to support themselves, and would help integrate them into
society.
Radicalism and Racism
As can be seen with the Charlie Hebdo attacks, racism and radicalism are still very much
ingrained in the lives of Europeans. Radicalism is defined as “the social processes by which
people are brought to condone, legitimize, support, or carry out violence for political or religious
objectives”. The influx of refugees into EU nations can cause increase terrorism and political
strife. Studies comparing data from The United Nation High Commissioner for Refugees
(UNHCR) and the ITERATE Terrorism Data, has shown a trend in the number of refugees and
instances of terrorist acts (Milton, Spencer, and Findley 4). Most radicalism in refugee camps is
believed to stem from their apparent hopelessness, host nations inability or unwillingness to aid
them, and their lack of political representation in host nations (Milton, Spencer, and Findley 8).
Many European nationals feel like they are not responsible for the refugees and that the
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MS European Union
government should not help and provide assistance for refugees (Duboc). This may cause
refugees to spark violence and political strife or become more susceptible to recruitment from
terrorist groups (Milton, Spencer, and Findley 11). The European Commision recently published
a 10 point action plan in order to reduce radicalism inside and outside of the EU. This plan
mostly aims to reduce radical acts by encouraging member nations to develop programs to
discourage people from violence or radical environments. In the side of political radicalism, the
European Commission called for the creation of a knowledge hub in order to combat propaganda
and online recruitment. Outside of the European Union, the plan aims to discourage EU citizens
from entering conflict zones or participating in radicalist movements in other nations. However,
this plan fails to focus on radicalism within refugee groups (Strengthening the EU's response).
A multitude of solutions will be required to effectively solve this issue, some questions
that a resolution must answer:
1. On what grounds will Asylum be granted?
2. How can refugee intake camps be improved?
3. What can be done regarding race relations throuough Europe?
4. What measures can be taken to prevent the transmission of disease between Refugees and
Citizens?
5. What changes should be made to the EU’s refugee policy?
Useful Links:
https://news.vice.com/video/fortress-italia-full-length
http://ec.europa.eu/dgs/home-affairs/what-we-do/policies/asylum/index_en.htm
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MS European Union
Works Cited
"African refugees in Berlin school standoff." Al Jazeera. N.p., 27 June 2014. Web. 16 Feb. 2015.
<http://www.aljazeera.com/news/europe/2014/06/african-refugees-berlin-schoolstandoff-2014627202217110629.html>.
Aloisio, Giulia. "More Than 300 Migrants Feared Dead After Boats Sink in Mediterranean."
Vice News. N.p., 11 Feb. 2015. Web. 20 Feb. 2015. <https://news.vice.com/article/morethan-200-migrants-feared-dead-after-boats-sink-in-mediterranean>.
Associated Press. "ECB feared stimulus wasn't working _ so it added a trillion." The Eagle.
Bryan College Station, 19 Feb. 2015. Web. 20 Feb. 2015.
- - -. "Market Closes Up After E.C.B. Announces Stimulus Plan." NY Times. New York Times,
22 Jan. 2015. Web. 20 Feb. 2015.
Bednarik, Valeria. "http://www.fxstreet.com/analysis/be-ready/2015/02/20/." FX Street. The
Forex Market, 20 Feb. 2015. Web. 20 Feb. 2015. <http://www.fxstreet.com/analysis/beready/2015/02/20/>.
"Common European Asylum System." Migration and Home Affairs. European Union, 6 Dec.
2013. Web. 16 Feb. 2015. <http://ec.europa.eu/dgs/home-affairs/what-wedo/policies/asylum/index_en.htm>.
De Jong, David, and Rob LaFranco. "Billionaire Tax Haven Liechtenstein Loses on Bank
Reforms." Bloomberg. Bloomberg, 2 May 2013. Web. 11 Feb. 2015.
<http://www.bloomberg.com/news/articles/2013-05-02/billionaire-tax-havenliechtenstein-loses-on-bank-reforms>.
Duboc, Charlet, and Gregoray Brosnan. "Fortress Italia." Vice News. N.p., 14 Oct. 2014. Web.
21 Feb. 2015. <https://news.vice.com/video/fortress-italia-full-length>.
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Faiola, Anthony. "Amid flood of refugees to Europe, Italy opens a back door." The Washington
Post. N.p., 9 Sept. 2014. Web. 16 Feb. 2015.
<http://www.washingtonpost.com/world/europe/migrant-crisis-hitseurope/2014/09/09/5dd8012d-cbe0-4a8a-895a-033d5a6794f6_story.html>.
Forelle, Charles, Pat Minczeski, and Elliot Bentley. "Greece’s Debt Due: What Greece Owes
When." WSJ. Wall Street Journal, 19 Feb. 2015. Web. 20 Feb. 2015.
<http://graphics.wsj.com/greece-debt-timeline/?mod=e2tw>.
Hoover, Kevin D. "Phillips Curve." The Concise Encyclopedia of Economics. By Lawrence
Summers and David R. Henderson. 2nd ed. Liberty Fund, 2008. Web. 11 Feb. 2015.
<http://www.econlib.org/library/Enc/PhillipsCurve.html>.
Leger, Donna Leinwand, Paul Davidson, and Kim Hjelmgaard. "European Central Bank
announces huge stimulus program." USA Today. USA Today, 19 Jan. 2015. Web. 20 Feb.
2015.
Mason, Paul. "Deflation would be the stuff of nightmares for European economies." The
Guardian. The Guardian, 7 Sept. 2014. Web. 20 Feb. 2015.
Milton, Daniel, Megan Spencer, and Michael Findley. "Radicalism of the Hopeless: Refugee
Flows and Transnational Terrorism." International Interactions: Empirical and
Theoretical Research in International Relations Publication details, including
instructions for authors and sub 39.5 (2013): n. pag. Taylor Francis Online. Web. 21
Feb. 2015.
<http://www.tandfonline.com/doi/abs/10.1080/03050629.2013.834256#.VOis7XB4r5I>.
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Riegert, Bernd. "African refugees find new home in Palermo, Italy." Deutsche Welt. N.p., 11
Nov. 2014. Web. 16 Feb. 2015. <http://www.dw.de/african-refugees-find-new-home-inpalermo-italy/a-18066439>.
Sherwood, Harriet, et al. "Europe faces 'colossal humanitarian catastrophe' of refugees dying at
sea." The Guardian. N.p., 2 June 2014. Web. 16 Feb. 2015.
<http://www.theguardian.com/world/2014/jun/02/europe-refugee-crisis-un-africaprocessing-centres>.
Sky, Jasper. "Opinion: ECB could fund a European renaissance." Deutsche Welle. Deutsche
Welle, 22 Jan. 2015. Web. 20 Feb. 2015. <http://www.dw.de/opinion-ecb-could-fund-aeuropean-renaissance/a-18209945>.
Staff, Spiegel. "Is the Boat Really Full?" Trans. Daryl Lindsey. Der Spiegel. N.p., n.d. Web. 15
Feb. 2015. <http://www.spiegel.de/international/europe/european-refugee-crisis-worsensin-mediterranean-a-964304.html>.
Strengthening the EU's response to radicalisation and violent extremism. European Commission.
European Commission, 15 Jan. 2014. Web. 21 Feb. 2015.
<http://ec.europa.eu/news/justice/140116_en.htm>.
2014 Autumn Economic forecast: Slow recovery with very low inflation. European Commission.
European Commission, 4 Nov. 2014. Web. 20 Feb. 2015.
Valetkevitch, Caroline. "Dow, S&P 500 close at record highs on Greece debt deal." Reuters.
Thomas Reuters, 20 Feb. 2015. Web. 20 Feb. 2015.
<http://www.reuters.com/article/2015/02/20/us-markets-stocksidUSKBN0LO10F20150220>.
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Worstall, Time. "It's Not The Oil Price That Is Causing Deflation In The Eurozone." Forbes.
Forbes, 30 Jan. 2015. Web. 11 Feb. 2015.
<http://www.forbes.com/sites/timworstall/2015/01/31/its-not-the-oil-price-that-iscausing-deflation-in-the-eurozone/>.

Background Guide - TJHSST Activities

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