Definition
The European Union (EU) is a unique economic and political union between 27 European countries that together cover much of the continent. The EU was created to enhance political, economic, and social cooperation among its member states. It has its origins in the European Economic Community (EEC) formed in 1957, which subsequently evolved into the European Community (EC) before becoming the European Union in 1993 with the Maastricht Treaty.
The EU seeks to create a unified economic area with a free movement of goods, services, capital, and people. Notably, the EU also introduced a common currency, the Euro, which is used by 19 of the member countries known collectively as the Eurozone.
Member Countries
As of 2011, the member states included:
- Austria
- Belgium
- Bulgaria
- Cyprus (Greek part)
- Czech Republic
- Denmark
- Estonia
- Finland
- France
- Germany
- Greece
- Hungary
- Ireland
- Italy
- Latvia
- Lithuania
- Luxembourg
- Malta
- Netherlands
- Poland
- Portugal
- Romania
- Spain
- Slovakia
- Slovenia
- Sweden
- United Kingdom (note: the UK left the EU on January 31, 2020)
Examples
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Single Market: The EU operates a single market allowing for the free movement of goods, services, money, and people. This helps businesses flourish and citizens enjoy certain rights when traveling, living, or working within the EU.
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Common Currency: The adoption of the Euro in 19 of the member states facilitates trade and economic stability across the Eurozone. This common currency simplifies transactions and eliminates exchange rate fluctuations within the Eurozone.
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Schengen Area: This is an area comprising 26 European countries that have abolished passport and other types of border control at their mutual borders. This region acts as a single country for international travel purposes, with a common visa policy.
Frequently Asked Questions
What is the primary purpose of the European Union?
The primary purpose of the EU is to promote economic integration, political cooperation, and social progress among its member states while ensuring regional stability and peace.
What are the institutions of the EU?
Key EU institutions include the European Commission, the European Parliament, the Council of the European Union, the European Central Bank, and the Court of Justice of the European Union.
How do countries join the EU?
Countries must meet the Copenhagen criteria, which involve being a stable democratic entity, having a functioning market economy, and accepting all EU legislation, including adherence to the aims of political, economic, and monetary union.
What benefits do EU member countries receive?
Members benefit from access to the single market, structural funds, agricultural subsidies, and regional development funds, as well as the potential for increased political influence on the global stage.
What is the significance of the Euro?
The Euro facilitates easier trade and investment between the countries that have adopted it by abolishing exchange rate risks and creating a stable monetary area.
Related Terms
- Eurozone: The group of EU nations that use the Euro as their currency.
- Schengen Agreement: An agreement that removed border controls between most EU countries, allowing for free and unrestricted movement of people.
- European Commission: The executive body of the EU, responsible for proposing legislation, implementing decisions, upholding the EU treaties, and managing day-to-day business.
- European Parliament: The directly elected parliamentary institution of the EU, which, together with the Council of the European Union and the European Commission, acts as a co-legislator.
- Maastricht Treaty: The treaty signed in 1992 that created the EU and led to the creation of the Euro.
Online References
Suggested Books for Further Studies
- “The European Union: A Very Short Introduction” by John Pinder and Simon Usherwood
- “The Economics of European Integration” by Richard Baldwin and Charles Wyplosz
- “Ever Closer Union: An Introduction to European Integration” by Desmond Dinan
- “The European Union: How Does It Work?” by Daniel Kenealy, John Peterson, and Richard Corbett
European Union (EU) Integration Basics Quiz
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