Professional Documents
Culture Documents
Experience:
The European
Union
Presented by:
History of the EU
• EU President
• EU Commission
• EU Parliament
• European Court of
Justice
• EU Directives
Advantages of the EU
• Vary country to country
• Prevent war
• Trade growth and reduced
transaction costs
• Greater employment
opportunities
• Structural funds
– Regional ERDF
– Single National Program
Disadvantages of The EU
• Expansion threatens
internal strength
• Farming subsidies
• Language Barriers
Economy of the European
Union
• General Background
– GDP: 14.96 trillion*
– Labor Force: 224.6 million*
– Largest exporter of goods
– Second largest importer of goods
• Main goals:
– Strengthen trade position
– Bolster political and economic power
• Operates under a competition policy
*2008 statistics
Currency: Euro
• Goals of single currency:
– Build a single financial market
– Represent a political symbol of integration
– Bring more jobs and prosperity to Europeans
• The euro area
– Member States using the euro
– Criteria for adoption
– Who is already in the euro area?
– European Central Bank
• All cash transactions in euros by January
2002
Economic and Monetary Union
(EMU)
• Founded in 1957
• Purposes
– Better functioning economy
– Improving prosperity and job market
• Framework for cooperation on monetary
and economic policy
• All EU countries are members of the EMU
– Responsibilities divided between Member
States and Institutions
Economic and Monetary Union
(cont’d)
• 3 stages coordinating economic policy
– Stage 1: Abolished capital movement
restrictions between Member States
(1990-1994)
– Stage 2: EMI and ECB established (1994-
1999)
– Stage 3: Exchange rates fixed (1999-
)
Benefits of the Euro
• Business
– Increased competition for consumers, no
exchange rate transaction costs
• Citizens
– Price transparency, low interest rates
encouraging investment
• Macroeconomy
– Price stability, low inflation
• Political
– Prominent position in the global economy,
milestone step in European integration
• Global
– Greater ease of international trade, enhanced
stability
EU Budget
2009