European union

The European Union

The European Union
Agenda

• Introduction - Brief History of the European Union • The Single Market • The Common Currency : Euro • The Power of the European Union in the world • The Mission of EU and its challenges for the future

Introduction - Brief History of the European Union

1945-1959 9 may 1950 – date of birth of the EU
Belgium, France, Germany, Italy,Luxembourg, Netherlands (6)

aim

end the frequent and bloody wars between the European countries Robert Schuman propose to European Coal & Steel Community (ECSC) to unit countries economically and politically

1957- Treaty of Rome creates European Economic Community (EEC) & the European Atomic Energy Community (Euratom)

1960 - 1969
    emergence of “youth culture” custom duties areabolished, joint control over food production, common external tariff 8 april 1965 – merge a single Council and a single Commission for ECSC, EEC, Euratom

Introduction - Brief History of the European Union
1970-1979
             Denmark, Ireland, UK join the EU (9) 1973 - Arab-Israeli war energy crisis, economic problems 1979 - 1st direct elections to the European Parliament EP getgreater power over the budget

1980-1989
Greece, Spain, Portugal join the EU (12) 1985 - Schengen Agreement abolish checks at the borders 1986 - The Single European Act is singed “Single Market” 1989 - Fall of Berlin Wall, unification of Germany 1990-1999 Austria, Finland, Sweden join the EU (15) 11 EU countries adopt the euro The ECB responsible for monetary policy EU is an area of freedom,security and justice 2000- today 13 new candidates join the EU, adopt euro

 11 September 2001- “War on Terror” EU countries work more closely to fight crime

 2004 - The European Constitution is adopted in Rome

The Single Market

Removing barriers among the member states

Physical Technical Fiscal

The Single Market
The benefits and limits
• Industry’s benefits – Economiesof scale – Increased competitiveness – Lower costs – Profitability Customers’ benefits – Cheaper products – More efficient providers of products – Increased choice of products – New products Side-effects – Competition -> negative impact on some sectors of a national Economy – Some enterprises could fail to improve its organization and methods -> unemployment or migration

•

•

The CommonCurrency : Euro

•

Official Currency of 16 countries
– 2nd most important currency after the US dollar

Regional competitiveness and employment objective. Convergence objective: regions with GDP per capita under 75% of the EU average. 81.5% of the funds are spent on this objective.

– Entered in circulation in 2002 • Advantages for citizens: – Travelling – Shopping
– Business

•Advantages for international role: – Reflects Europe’s weight in the world Economy – Advantages for investors – Strengthens Europe´s role in international fora and organisations

The Power of the European Union in the world
- Nature of Eu's trade -

Main products:


Primarily buys and sells manufactured goods which represent:
– –

90% of its exports

Three quarters of its importsContribution: Machines and transport equipment (44% of exports and 30% of imports)  Energy and chemical products becomes next  Conversely, foodstaffs and raw material around 5% both


The Power of the European Union in the world
- Main Trading partners -

During the period 2000-2007 • Main trading partner -> United States • Next coming...
China  Russia & Switzerland  Japan  India &Brazil


The Power of the European Union in the world
- Economies of member states -

•

Economic performance varies from state to state with the larger economies suffering from stagnant growth and the new nations enjoying sustained economic growth Eu27 GDP is on increase BUT the percentage of Gross World Product is decreasing The reason?
– Emergence of economic powers such as: – China,...