European Union Market
After a long history of wars and conflicts the european countries decided in the middle of the 1940`s that they have to find a way to anchor peace for the continent and find new ways to balance their payment-deficits. After World War II Europe suffered a lot under the destruction and low economies.
They were afraid of foreign competition and started to impose trade barriers like tariffs for example. This should protect their domestic firms and workers from external competition.
But just a few years later in the 1950`s all these trade barriers were considered to be counterproductive and the first attempts were started to abolish them.
Based on the Treaty of Rom of 1957 the European Community was founded by six nations. Belgium, France, Italy, Germany, Luxembourg and the Netherlands agreed in 1968 to create a free trade area; that ended up eliminating all their tariffs. Just 2 years later, they formed a Custom Union by adjusting common external tariffs. In 1973 United Kingdom, Ireland and Denmark joined the trade bloc and Greece became a member in 1981. Six years later Spain and Portugal were accepted and in 1992 the 12 members established a common market without any trade restrictions. Its name changed in 1993 when the Contract for the European Union was signed. In 1995 Sweden, Finland and Austria were admitted and helped to build the European Monetary Union with one single currency in 2002 which was necessary to fulfil all 4 criterias of the convergence criterias.
They regulate four important economic targets. The price stability in each country should be less than 1.5 % above the average of the inflation rates in the three countries with lowest inflation rate. Another rule considers the long-term interest rate. It is not allowed to be higher than 2 % above the average interest rate in the other European countries. The exchange rate has to be stable as well. The several governments have to make sure that they will be within a certain target band of the monetary union. As its last target the convergence criterias states that the public finances should not allow that the budget deficit is higher than 3 % of the countries GDP or that the outstanding governmental debt is higher than 60 % of a year’s GDP.
In the year 2004 ten new members joined the EU. Cyprus, The Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia were included and in 2007 Bulgaria and Rumania are expected to be admitted.
During this era, businesses supplied large amounts of employment for citizens which created power for these businesses. They had the power to provide bad working conditions, lower wages, and fire their employees without any justification (Doc 1). George E. McNeill, a labor leader, states how “whim is law” and one can not object to it. The government took a laissez-faire approach and refused to regulate economic factors. This allowed robber barons and business tycoons to gain more authority of each industry through the means of horizontal and vertical integration. It wasn’t until later in the time period that the government passed a few acts to regulate these companies, such as the ICC and the Sherman Antitrust Act. One of the main successful industries was
Furthermore, Norway didn’t join because they do not want to give up their independence. Small countries such as Portugal, Greece, Italy joined so they could be more powerful and wants more money. Still, does do the advantages of being in the EU excel the sacrifices? Honestly, I would say yes; essentially for economic competition, peace and security, and cultural diversity.
In conclusion, the European Union has “merged” the countries of Europe. It has developed a common currency called the Euro’s, and a Parliament located in Belgium, Luxembourg, and France. Also, ALL of the countries of the Union are affected when one country is affected. This is important because the continent of Europe had become very weak after the wars and they needed to strengthen, and the European Union keeps the countries of Europe strong and economically fit.
The Common Market is the third level of trade blocs. This has features of the Customs Union plus free movement of capital and labour and some policy harmonisation such as similar trade policies to prevent certain member countries having an unfair advantage. The European Union is an example of a Common Market and is an economic and political partnership that involves 28 European countries. It allows goods and people to be moved around and has its own currency, the euro, which is used by nineteen of the member countries (The UK excluded). It also has its own parliament and sets rules in a wide range of areas such as transport,... ...
The European Union cooperation all started with economic integration. Since the beginning of the ECSC in 1952 until now one of the major forces but also one of the major weaknesses of the EU has been their will for a common market and a monetary union. The single market was achieved in 1992 with the entrance into function of the Maastricht treaty. This treaty greatly influenced how states would have to deal with external border control and the free movement of the people because what the Maastricht treaty did was not only opening a single market, but also allowing people, goods and services to move freely across European Union member states. Economic integration has explained by Nevin has usually 5 level which goes from he lowest o he highest level of cooperation. The first level of integration is the preferential tariff which only allows st...
Many people would agree that Europe is a continent in which regions identify with each other even if they are not part of the same country. For that reason, as well as others, in 1957 the Treaty of Rome "declared a common European market as a European objective with the aim of increasing economic prosperity and contributing to 'an ever closer union among the peoples of Europe'" (www.euro.ecb.int). Later, in 1986 and then in 1992, the Single European Act and the Treaty of European Union tried to build on the previous treaty to create a system in Europe in which one currency could eventually be used all over the land under the heading of the Economic and Monetary Union. (www.euro.ecb.int) However, the question remains, why would the leaders of various European nations want to create one currency when the rights of national sovereignty have always been an issue for countries all over the world. Why, in 1998 did they create the European Central Bank, and why in "The third stage of EMU... on 1 January 1999, when the exchange rates of the participating currencies were irrevocably set" (www.euro.ecb.int) did eleven, and later twelve, countries link themselves economically in a way that has never been done before?
In 1957 the European Economic Community, the precursor to the European Union, was formed by the signing of the Treaty of Rome. The nations of Belgium, West Germany, France, Italy, Luxembourg, and the Netherlands signed the Treaty in order to form an economic community that would solidify Europe in response to the continental division during World War Two and to form “a closer union” among member nations. The continent had been reeling from the devastation of two world wars and many agreed that in order to prevent future war the nations of Europe must come together. The treaty allowed for easier trade and travel between member nations and the synchronizing of many economic regulations (Lisbon). One early example of economic synchronization
Europe will not run the 21st century because of a combination of economic, institutional, and cultural factors. However, for the purpose of this paper, I will focus on the economic aspects of European society that will impede EU ascendency. I do not believe that the EU will cease to exist in the coming century, but I do believe it will become obsolete because it will be unable to make the necessary changes to their demographic problems, defense policies, and economic culture in response to the increasing American ascendency. Europe has long been known as the continent home to the great powers of the world. From Caesar to Napoleon to the British Empire, the European empires have continuously been at the helm of the ship of progress. The wars of the 20th century however, left Europe in a wake of destruction and chaos period before. The continent was devastated and had little hope to recover. In this new era of European descent, the great American Era came into existence. The US, one of the remaining superpowers, became the helping hand that Europe needed. With the aid allocated by the Marshall Plan and the creation of programs and institutions, Europe had a future. The creation of the European Union (EU) united the European countries over the common goal of preventing war another war. The United States intended for these programs to be a stepping-stone to build the economic and institutional powers of Europe, because a stronger Europe was good for the US. However, instead of using these as a springboard to create self-reliant union, the EU remains reliant on US military and hard power to support them their social efforts.
Some would say the European Union is the modern day Soviet Union and now with the introduction of the euro, it has succeeded in what the Soviets could not dare to accomplish. How amazing that a single currency could change the fate of Europe and bring it back to a super power that it always was. In order to stand up to the influential nations of this world the European Union did the unthinkable, created the euro. While others would agree, as predicted by many financial analysts, the creation of the euro currency was one of Europe’s greatest accomplishments. The establishment of the European Union (EU) in Europe created an alliance whereby it would be greatly constructive as a nation to be strengthened economically, politically and ideologically, with a one level currency. Hence, the introduction and final association with the euro was established on January 1, 1999. This currency which was used primarily for trade and deficit diminutions was now established as the main foundational monies of all the European countries involved. Through this cooperation and attainment, the European Union gained strength in the economic frontier through consumer and business initiatives and frontiers. Basically, the EU was on the verge of bankruptcy and in order to save this great nation the euro was adopted and procured. Yet many member states did not regard the euro as their main currency, they feared the issues surrounding
These “Inner Six” nations thus laid the framework for further integration of other nations within the region and its supranational principles were what led to the creation of the European Economic Community in 1957, further assimilating the European countries’ economies. The creations of these communities for economic purposes were meant to promote cooperation amongst European nations to prevent the further outbreak of violence which had subsided with the end of WWII. Through these general agreements of economic importance came further integration through the creation of more agreements throughout the 1960s, such as the abolishment of customs duties amongst their borders, creating free trade and border trade tax pacts among the Inner Six and across their borders to other signatory nations.
As mentioned earlier, the European Union had its origins in the years after World War II, in which the member states could buy and sell coal and steel without import and export duties. The main idea here was that countries
As at January 1, 2007, the European Union comprised of 29 member States (United kingdom, Ireland, Denmark, France, Netherlands, Italy, Germany, Luxembourg, Belgium, Spain, Poland, Slovenia, Lithuania, Czech Republic, Estonia, Finland, Slovakia, Cyprus, Greece, Hungary, Latvia, Malta, Portugal, Austria, Sweden, Bulgaria, Romania, Croatia and Turkey.)
One important factor of European integration is the Marshall Plan and the United States’ push for European interdependence. The United States’ goal with the Marshall Plan was to aid in the reconstruction of Europe by eliminating trade barriers and revolutionizing certain industries helping Europe to thrive again (Hogan, 1987). This goal forced the countries of Europe to work together to rebuild not just their countries, but the European community. The beginnings of the European Economic Community were also born out of the Marshall Plan and its provisions that contributed to the creation of the Organization for European Economic Cooperation (Weigall and Stirk, 1992: 39). This was one of the first formal supranational organization in Europe and laid the foundation for how the European states interact and integrate with each other throughout the rest of the European integration process. Even after the funding ended, the countries of Europe who joined together under the Organization for European Economic Cooperation continued to thrive with increasing inly stable economies (Eichengreen 2008, 57). It can be argued that the Marshall Plan is the foundation on which European integration
Eurozone crisis has had huge impacts not only on the economy of the UE but also on the other countries who have economic and financial relations with the members of the union. The reason why we have decided to examine the Eurozone crisis in detail is to have a better understanding of the mechanisms behind this extremely important and complex problem and also to make accurate inferences about the solution alternatives. In our pape...
The official European was first officially created in 1993. The purpose of the European Union was to make sure that that it connected parts