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==1993β2004: Creation== {{Main|History of the European Union (1993β2004)}} {{Evolution_of_the_European_Union_SMIL.svg}} On 1 November 1993, under the third [[Delors Commission]], the Maastricht Treaty became effective, creating the [[European Union]] with its [[Three pillars of the European Union|pillar system]], including foreign and home affairs alongside the [[European Community]].<ref>[http://europa.eu/abc/history/1990-1999/1993/index_en.htm 1993] europa.eu</ref><ref>[http://www.cvce.eu/obj/characteristics_of_the_treaty_on_european_union-en-beec7a53-4023-412d-a1ab-2c31b6a3c39d.html Characteristics of the Treaty on European Union] cvce.eu</ref> The [[1994 European Parliament election|1994 European elections]] were held resulting in the [[Party of European Socialists]] maintaining their position as the largest party in Parliament. The Council proposed [[Jacques Santer]] as [[Commission President]] but he was seen as a second choice candidate, undermining his position. Parliament narrowly approved Santer but [[Santer Commission|his commission]] gained greater support, being approved by 416 votes to 103. Santer had to use his new powers under Maastricht to flex greater control over his choice of Commissioners. They took office on 23 January 1995.<ref name="ENA">{{Cite web| title =The crisis of the Santer Commission | publisher =[[Centre Virtuel de la Connaissance sur l'Europe (CVCE)]] | url =http://www.cvce.eu/obj/the_crisis_of_the_santer_commission-en-7380f95b-1fb2-484d-a262-d870a0d5d74d.html | access-date = 29 January 2013 }}</ref> On 30 March 1994, accession negotiations concluded with [[Austria]], [[Sweden]] and [[Finland]]. Meanwhile, [[Norway]], [[Iceland]] and [[Liechtenstein]] joined the [[European Economic Area]] (which entered into force on 1 January 1994), an organisation that allowed [[European Free Trade Association]] states to enter the [[Single European Market]]. The following year, the [[Schengen Agreement]] came into force between seven members, expanding to include nearly all others by the end of 1996. The 1990s also saw the further development of the [[euro]]. 1 January 1994 saw the second stage of the [[Economic and Monetary Union of the European Union]] begin with the establishment of the [[European Monetary Institute]] and at the start of 1999 the euro as a currency was launched and the [[European Central Bank]] was established. On 1 January 2002, notes and coins were put into circulation, replacing the old currencies entirely. [[File:Euro coins and banknotes.jpg|left|thumb|Coins and banknotes of the [[Euro]], the single-currency [[History of the euro|introduced from 1999]]]] During the 1990s, the [[Yugoslav wars|conflicts in the Balkans]] gave impetus to developing the EU's [[Common Foreign and Security Policy]] (CFSP). The EU failed to react during the beginning of the conflict, and [[UN peacekeepers]] from the Netherlands failed to prevent the [[Srebrenica massacre]] (July 1995) in [[Bosnia and Herzegovina]], the largest mass murder in Europe since the Second World War. The [[North Atlantic Treaty Organization]] (NATO) finally had to [[NATO intervention in Bosnia and Herzegovina|intervene in the war]], forcing the combatants to the negotiation table. The early foreign policy experience of the EU led to foreign policy being emphasised in the [[Treaty of Amsterdam]] (which created the [[High Representative]]).<ref>[http://www.ena.lu?lang=2&doc=18928 The Treaty of Amsterdam] ena.lu</ref> However, any success was overshadowed by the budget crisis in March 1999. The Parliament refused to approve the Commission's 1996 [[Budget of the European Union|community's budget]] on grounds of financial mismanagement, fraud and nepotism. With Parliament ready to throw them out, the entire [[Santer Commission]] resigned.<ref name="Ringe">{{Cite web| last =Ringer | first =Nils F. | title =The Santer Commission Resignation Crisis | publisher =[[University of Pittsburgh]] |date=February 2003 | url =http://aei.pitt.edu/2919/01/156.pdf | access-date = 7 October 2007 | archive-url = https://web.archive.org/web/20060830184844/http://aei.pitt.edu/2919/01/156.pdf | archive-date = 30 August 2006 | url-status = live }}</ref><ref name="Hoskyns">{{Cite book| last = Hoskyns | first = Catherine |author2=Michael Newman | title = Democratizing the European Union: Issues for the twenty-first Century (Perspectives on Democratization) | publisher = [[Manchester University Press]] | year = 2000 | pages=106β7 | isbn = 978-0-7190-5666-6 }}</ref> The post-Delors mood of euroscepticism became entrenched with the Council and Parliament constantly challenging the Commission's position in coming years.<ref name="Topan">{{Cite web| last = Topan | first = Angelina | title= The resignation of the Santer-Commission: the impact of 'trust' and 'reputation' | publisher = European Integration online Papers | date = 30 September 2002 | url = http://eiop.or.at/eiop/texte/2002-014.htm | access-date = 7 October 2007 }}</ref> In the [[1999 European Parliament election|following elections]], the Socialists lost their decades-old majority to the new [[European People's Party|People's Party]] and the incoming [[Prodi Commission]] was quick to establish the new [[European Anti-Fraud Office]] (OLAF).<ref name="OLAF">{{Cite web|title=EU Budget Fraud |publisher=politics.co.uk |url=http://www.politics.co.uk/issue-briefs/europe/eu-budget/eu-budget-fraud/eu-budget-fraud-$366701.htm |access-date=7 October 2007 |archive-url=https://web.archive.org/web/20060619223954/http://www.politics.co.uk/issue-briefs/europe/eu-budget/eu-budget-fraud/eu-budget-fraud-%24366701.htm |archive-date=19 June 2006 |url-status=dead }}</ref> Under the new powers of the Amsterdam Treaty, Prodi was described by some as the 'First Prime Minister of Europe'.<ref>[http://www.iht.com/articles/1999/04/16/eu.2.t_0.php Prodi to Have Wide, New Powers as Head of the European Commission] iht.com 16 April 1999</ref> On 4 June, [[Javier Solana]] was appointed Secretary General of the Council and the strengthened [[High Representative for the Common Foreign and Security Policy]] admitted the intervention in Kosovo β Solana was also seen by some as Europe's first [[Foreign Minister]].<ref>[https://web.archive.org/web/20000302051246/http://www.businessweek.com/1999/99_45/b3654047.htm Javier Solana/Spain: Europe's First Foreign Minister?] businessweek.com</ref> The [[Nice Treaty]] was signed on 26 February 2001 and entered into force on 1 February 2003 which made the final preparations before the [[2004 enlargement of the European Union|2004 enlargement to 10 new members]].
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