Introduction
During the 1990s, discussion about trade policies and economics has typically centered around one word -- globalization. Another word that seems to play a huge role in these discussions is regionalism -- the idea that separate countries can join together in one group in order to create a formidable force in terms of global politics, economics and trade.
One such example of this a regionalism has been the European Union (EU). Although most people are familiar with Europe as separate countries -- England, France, Germany, Italy and the like -- when it comes to global trade and politics, the more common usage is that of the EU to refer to all member countries in Europe.
According to the media, the EU has become a powerhouse in its own right. Its member countries have combined to create a formidable force, particularly in terms of global trading. Furthermore, as a federation, the EU is proving to be a major player in terms of global politics. But does this mean that all is well in peaceful within the European Union? Does the fact that the member states have banded together meaning that everyone has benefited from the concept of the EU?
This paper will attempt to answer these questions by outlining the background and reason for formation of the EU and explain what the original intent was. We will then discuss the EU in terms of economics and trade (as these two topics are definitely interrelated); and we will discuss some theories behind the success or failure of the EU.
We will then consider it formation of the EU has actually been beneficial for its member states both separately and in its entirety.
Background And History
In order to better understand the theories and principles that drive the European Union, it w...
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...lmost 16 percent -- which is also larger that exports coming from the United States (at 12.6 percent) or Japan (at 7.7 percent) (Letiche, 2002). this has, needless to say, in the envy of many other nations.
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The brutality of the World War II and the anguish of the Cold War enforced nations in Europe to establish the European Union for peace and unity in the region. With ratification of the Maastricht Treaty by members of the European Community in 1993, an economic and political union; the European Union is formed. In December 2012, the European Union awarded the Nobel Peace Prize for its “historical accomplishments”. Nevertheless, the member states of the European Union are still facing the crisis that started in the Eurozone since 2009. One of the major causes of the crisis is the common currency – the euro which has weak structural formation. The creation of a currency, the euro, is one of the major parts of the European Union. The German Chancellor Gerhard SchrÖder said in a speech in 1999 that “The introduction of the euro is probably the most important integrating step since the beginning of the unification process.”(Yeager, 30) Therefore, in this essay I would like to study the history of creation of the euro, lessons that the European Union draws from the euro crisis and analyze the future predictions of specialists about the euro. I will use the publication “Economic and monetary union and the euro” by the European Commission as the main source and other credible sources about the euro in my paper.
The European Union today is a political and economic entity that controls in a single market located mostly in Europe exploiting Euro as a single currency uniting the vast majority of its members. The market that all European Union members share provides free trade of goods and services as well as a common external tariff. One might argue that the European Union would not perceptible its current influence had it not been for the introduction of the Euro. Speaking of the benefits of the Euro, one can name the elimination of exchange rate problems, creation of a single financial market, providing price stability, low interest rates as well as being a political symbol of unity and commitment to the Union. Today, Euro is the second reserve currency in the entire world - a fact that clearly speaks for itself of its value in the global market.
Regional trade agreements have been prevalent since the early 1990s. A Regional trade agreement removes all barriers to trade and foreign investment, which means that poor economies are not allowed to use import tariffs to protect their growing industries or their farmers from floods of cheap imports. Free trade agreements also include additional rules on investment that pose a prospective threat to poor people’s access to public services. This clearly states that even though poor countries have the advantage of strength in numbers as compared to the rich economies and countries, the former are more likely to be pushed into accepting unreasonable demands of the richer economies. Therefore, it can be analyzed that a Regional Trade Agreement between equal partners can prove to be beneficial for both, but such an agreement between unequal partners ( rich and a poor economy) shall probably prove to be beneficial for the stronger economy.
The European Union has been helped economically ever since World War II. Right after World War II’s end, Europe was struggling to hold on. The countries of the modern-day European Union thought it would be a good idea to come together and help each others struggling economy. To this day, this decision has had a very positive outcome on the EU’s economy. As shown in Diagram 1, the European Union combined together has the world’s highest GDP at 18.3 Trillion USD as compared to the United States’ 17.4 Trillion USD GDP and China’s 10.4 Trillion USD GDP. The idea
Peterson, J. and Shackleton, M. 2002. The institutions of the European Union. Oxford: Oxford University Press.
The European Union as an established governing body is an essential example of this concept which must be reviewed as the establi...
The EU is a union of sovereign European states who share sovereignty based on treaty. The union also possesses competences in policy sectors with exclusive jurisdiction in the area of Economic and Monetary Union while others are shared with Member States (MS), the other powers belong to MS as derived from the conferral of powers art 5(2) TEU, 2(1) TFEU art.3 & 4 TFEU additionally other powers have been offered by the decisions of the European Court for direct effect on citizens
These are very exciting times for our country, we are now part of the largest economic community the world has ever seen, opening the doors of opportunity for us, the Irish citizens, everywhere we look. Ireland's membership of the EU is seen by most to be of great benefit to the country as it will solidify the foundations of our economy as well as increase the awareness of Ireland as an investment opportunity for multi national companies; however, some will argue that the change would be detrimental to our nation in the long run.
The European Union economic and political union is divided between twenty-eight European countries that united to preserve the economy, of the union. This form of economic preservation allowed “an organization spanning policy areas, from climate, environment, and health to external relations and security, justice and migration” (EU 2018). First, to build the European Union every country within the union avoided conflict by trading goods with one another. The act of courtesy in trade amongst the countries promoted peace and economic growth between the European countries (EU 2018).
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Senior, Nello Susan. "Chapters:4,15." The European Union: Economics, Policies and History. London: McGraw-Hill, 2009. Print.
Europe has a history of war and conflict that predates living memory and the idea of a united Europe is something that appears repeatedly in that history. Hitler, Napoleon, and the many Roman Emperors all sought a united Europe. Their quests although in many ways motivated by a horrifying desire for power sparked the minds of philosophers and other political thinkers to imagine Europe united in harmony and peace despite national differences. Today we have the European Union which is quite unique. After the horrors, bloodshed, and economic disaster of the twentieth century, in a desire for peace and harmony and economic and political prosperity twenty-seven states have limited their national sovereignty.2 With national interests and ambition still in mind these countries see the European Union and supranational governance and the benefits of peace and prosperity therein as something worthwhile. However, in the history of European integration there has been much conflict and Euroskepticism. Some see unity in diversity and diversity in unity as impossible, and the existence of differentiation in the EU as highly problematic. However, differentiation in the European Union’s integration process is not the hindrance it is often defined as, rather it creates further cooperation in Europe bringing the European Union closer to its objectives of peace, and economic and political growth, resulting in a more effective and efficient bureaucracy. Differentiation in the EU’s integration process has created more successful integration as it allows the nations who wish t...
The enlargement of the European Union (EU) in 2004 and 2007 has been termed as the largest single expansion of the EU with a total of 12 new member states – bringing the number of members to 27 – and more than 77 million citizens joining the Commission (Murphy 2006, Neueder 2003, Ross 2011). A majority of the new member states in this enlargement are from the eastern part of the continent and were countries that had just emerged from communist economies (EC 2009, Ross 2011), although overall, the enlargement also saw new member states from very different economic, social and political compared to that of the old member states (EC 2009, Ross 2011). This enlargement was also a historical significance in European history, for it saw the reunification of Europe since the Cold War in a world of increasing globalization (EC 2009, Mulle et al. 2013, Ross 2011). For that, overall, this enlargement is considered by many to have been a great success for the EU and its citizens but it is not without its problems and challenges (EC 2009, Mulle et al. 2013, Ross 2011). This essay will thus examine the impact of the 2004/2007 enlargements from two perspectives: firstly, the impact of the enlargements on the EU as a whole, and thereafter, how the enlargements have affected the new member states that were acceded during the 2004/2007 periods. Included in the essay will be the extent of their integration into the EU and how being a part of the Commission has contributed to their development as nation states. Following that, this essay will then evaluate the overall success of the enlargement process and whether the EU or the new member states have both benefited from the accessions or whether the enlargement has only proven advantageous to one th...
The story of Europe is a story that is worth telling for the simple fact that without the background of Europe, people will not understand the complexities in the creation of the Europe of yesterday and creation of the Europe today. This rich history cannot be ignored because of the close ties to the creation of the nations and the supranational institutions that have become the European Union and its trade partners. Without the background on the history of Europe the creation of this larger organization or supranational organization would be nearly impossible to understand the complexities of the current political, social and economic qualities within the EU. The history of a country, state or organization also helps us to understand the some aspects of the future of the EU.
Sharp, Manu. and Mussler: «The Economic Constitution of the European Community. From 'Rome' to 'Maastricht'», European Law Journal 1 (1995), pp. 5-30.