The
European Union (
EU) is an
economicA common market is a type of trade bloc which is composed of a customs union with common policies on product regulation, and freedom of movement of the factors of production and of enterprise. The goal is that the movement of capital, labour, goods, and services between the members is as easy as...
and
political unionA political union is a type of state which is composed of or created out of smaller states. Unlike a personal union, the individual states share a common government and the union is recognized internationally as a single political entity...
of 27
Member StatesA Member State of the European Union is any one of the 27 sovereign states that have acceded to the European Union since its de facto inception in 1951 as the European Coal and Steel Community . From an original membership of six states, there have been six successive enlargements, the largest...
, located primarily in
EuropeEurope is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally divided from Asia to its east by the water divide of the Ural Mountains, the Ural River, the Caspian Sea, the Caucasus Mountains , and the Black Sea to the southeast...
. Committed to
regional integrationEuropean integration is the process of political, legal, economic integration of states wholly or partially in Europe...
, the EU was established by the
Treaty of MaastrichtThe Maastricht Treaty was signed on 7 February 1992 in Maastricht, the Netherlands after final negotiations on 9 December 1991 between the members of the European Community and entered into force on 1 November 1993 during the Delors Commission. It created the European Union and led to the creation...
on 1 November 1993 upon the foundations of the pre-existing
European Economic CommunityThe European Economic Community was an international organisation that existed between 1958 and 1993 which was created to bring about economic integration between Belgium, France, Germany, Italy, Luxembourg and the Netherlands.It was...
. With almost 500 million citizens, the EU combined generates an estimated 30% share (
US$The United States dollar is the unit of currency of the United States. The U.S. dollar is normally abbreviated as the dollar sign, $, or as USD or US$ to distinguish it from other dollar-denominated currencies and from others that use the $ symbol. It is divided into 100 cents .The U.S...
18.4 trillion in 2008) of the nominal
gross world productGross world product is the total gross national product of all the countries in the world. This also equals the total gross domestic product. See measures of national income and output for more details. The per capita GWP in 2008 was approximately $10,500 US dollars...
.
The EU has developed a single market through a standardised system of laws which apply in all Member States, ensuring the
freedom of movement of people, goods, services, and capitalIn European Union law, the Four Freedoms is a common term for a set of treaty provisions, secondary legislation and court decisions, protecting the ability of goods, capital, services, people and labour to move freely within the internal market of the European Union...
. It maintains common policies on trade,
agricultureThe Common Agricultural Policy is a system of European Union agricultural subsidies and programs. It represents 48% of the EU's budget, €49.8 billion in 2006 ....
,
fisheriesThe Common Fisheries Policy is the fisheries policy of the European Union. It sets quotas for which member states are allowed to catch what amounts of each type of fish, as well as encouraging the fishing industry by various market interventions...
and regional development. Sixteen Member States have adopted a common currency, the
euroThe euro is the official currency of 16 of the 27 Member States of the European Union . The states, known collectively as the Eurozone, are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain...
, constituting the
EurozoneThe eurozone is an economic and monetary union of 16 European Union member states which have adopted the euro currency as their sole legal tender. It currently consists of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal,...
. The EU has developed a limited role in foreign policy, having representation at the
WTOThe World Trade Organization is an international organization designed by its founders to supervise and liberalize international capital trade. The organization officially commenced on January 1, 1995 under the Marrakesh Agreement, replacing the General Agreements on Tariffs and Trade , which...
,
G8The Group of Eight is a forum, created by France in 1975, for governments of the six richest countries in the world: France, Germany, Italy, Japan, the United Kingdom, and the United States. In 1976, Canada joined the group...
, G20 and at the
UNThe United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and the achieving of world peace...
. It enacts legislation in justice and home affairs, including the abolition of passport controls between many Member States which form part of the
Schengen AreaThe Schengen Area is a group of twenty-five European countries which have abolished all border controls between each other. It originates from the eponymous agreement signed in the Luxembourgish town of Schengen in 1985, which has since been absorbed into the European Union...
.
As an
international organisationAn intergovernmental organization, sometimes rendered as an international governmental organization and both abbreviated as IGO, is an organization comprised primarily of sovereign states , or of other intergovernmental organization...
, the EU operates through a hybrid system of
supranationalismSupranationalism is a method of decision-making in multi-national political communities, wherein power is transferred to an authority broader than governments of member states. Because decisions in some supranational structures are taken by majority votes, it is possible for a member-state in those...
and
intergovernmentalismThe term Intergovernmentalism can mean different things:-A decision-making method:It is usually said that intergovernmentalism refers to the decision-making methods in international organisations, where power is possessed by the member states and decisions are often but not always made by unanimity...
. In certain areas, it depends upon agreement between the Member States; in others, supranational bodies are able to make sovereign decisions without unanimity. Important institutions and bodies of the EU include the
European CommissionThe European Commission acts as an executive of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union.The Commission operates in the method of cabinet government, with 27...
, the
Council of the European UnionThe Council of the European Union is the principal decision-making institution of the European Union . It is often informally called the Council of Ministers or just the Council, the name used in the treaties; it is also called Consilium as a Latin-language compromise...
, the
European CouncilThe European Council is the highest political body of the European Union. It comprises the heads of state or government of the Union's member states along with the President of the European Commission...
, the
European Court of JusticeThe European Court of Justice , is the highest court in the European Union in matters of European Union law. It is tasked with interpreting EU law and ensuring its equal application across all EU member states. The Court was established in 1952 and is based in Luxembourg...
, and the
European Central BankThe European Central Bank is one of the world's most important central banks, responsible for monetary policy covering the 16 member States of the Eurozone. It was established by the European Union in 1998 with its headquarters in Frankfurt, Germany.-History:Technically the predecessor to the ECB...
. The
European ParliamentThe European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union , it forms the bicameral legislative branch of the Union's institutions and has been described as one of the most powerful legislatures in the world...
is elected every five years by Member States' citizens, to whom the
citizenship of the European UnionCitizenship of the European Union was introduced by the Maastricht Treaty signed in 1992. It exists alongside national citizenship and provides additional rights to nationals of Member States of the European Union.- Who is an EU citizen? :...
is guaranteed.
The EU traces many of its origins to the
European Coal and Steel CommunityThe European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for European democracy and the modern-day developments of the European Union...
formed among six countries in 1951 and the Treaty of Rome in 1957. Since then the union has grown in size through the accession of new countries, and new policy areas have been added to the remit of the EU's institutions.
History
After the end of the
Second World WarWorld War II, or the Second World War , was a global military conflict which involved a majority of the world's nations, including all great powers, organized into two opposing military alliances: the Allies and the Axis...
, moves towards European integration were seen by many as an escape from the extreme forms of
nationalismNationalism is an ideology, a sentiment, a form of culture, or a social movement that focuses on the nation. It is a type of collectivism emphasizing the collective of a specific nation...
which had devastated the continent. One such attempt to unite Europeans was the
European Coal and Steel CommunityThe European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for European democracy and the modern-day developments of the European Union...
which, while having the modest aim of centralised control of the previously national coal and
steel industriesSteel is an alloy consisting mostly of iron, with a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most cost-effective alloying material for iron, but various other alloying elements are used such as manganese, chromium, vanadium, and tungsten...
of its Member States, was declared to be "a first step in the federation of Europe". The originators and supporters of the Community include
Jean MonnetJean Omer Marie Gabriel Monnet is regarded by many as a chief architect of European Unity. Never elected to public office, Monnet worked behind the scenes of American and European governments as a well-connected pragmatic internationalist.-Early years:Monnet was born in Cognac, Charente, into a...
,
Robert SchumanRobert Schuman was a noted French statesman. Schuman was a Christian Democrat and an independent political thinker and activist...
,
Paul Henri SpaakPaul Henri Charles Spaak was a Belgian Socialist politician and statesman.-Early life:He was born in Schaerbeek to Paul Spaak and Marie Janson...
and
Alcide de GasperiAlcide De Gasperi was an Italian statesman and politician and founder of the Christian Democratic Party. From 1945 to 1953 he was the prime minister of eight successive coalition governments. His eight-year rule remains a landmark of political longevity for a leader in modern Italian politics...
. The founding members of the Community were
BelgiumThe Kingdom of Belgium is a country in northwest Europe. It is a founding member of the European Union and hosts its headquarters, as well as those of other major international organizations, including NATO...
,
FranceFrance , officially the French Republic , is a country located in Western Europe, with several overseas islands and territories located on other continents. Metropolitan France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean...
,
ItalyItaly , officially the Italian Republic , is a country located on the Italian Peninsula in Southern Europe and on the two largest islands in the Mediterranean Sea, Sicily and Sardinia. Italy shares its northern, Alpine boundary with France, Switzerland, Austria and Slovenia...
,
LuxembourgLuxembourg , officially the Grand Duchy of Luxembourg , is a small, landlocked country in western Europe, bordered by Belgium, France, and Germany...
, the
NetherlandsThe Netherlands is a country in Northwestern Europe, constituting the major portion of the Kingdom of the Netherlands. It is a parliamentary democratic constitutional monarchy. The Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east...
and
West GermanyWest Germany is a common English name for the period of the Federal Republic of Germany between its' formation in May 1949 to German reunification in October 1990, when the German Democratic Republic was dissolved and the five states on its territory joined the Federal Republic of Germany,...
.
In 1957, these six countries signed the Treaties of Rome which extended the earlier cooperation within the
European Coal and Steel CommunityThe European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for European democracy and the modern-day developments of the European Union...
and created the
European Economic CommunityThe European Economic Community was an international organisation that existed between 1958 and 1993 which was created to bring about economic integration between Belgium, France, Germany, Italy, Luxembourg and the Netherlands.It was...
, (EEC) establishing a
customs unionThe European Union Customs Union is a customs union which consists of all European Union member states. No customs are levied on goods travelling within the customs union and — unlike a free trade area — members of the customs union impose a common external tariff on all goods entering...
and the
European Atomic Energy CommunityThe European Atomic Energy Community is an international organisation which is semi-independent of, but completely controlled by, the European Community pillar of the European Union....
(Euratom) for cooperation in developing
nuclear energyNuclear energy is released by the splitting or merging together of the nuclei of atom. The conversion of nuclear mass to energy is consistent with the mass-energy equivalence formula ΔE = Δm.c², in which ΔE = energy release, Δm = mass defect, and c = the speed of light in a vacuum...
. In 1967 the
Merger TreatyThe Merger Treaty was a European treaty which combined the executive bodies of the European Coal and Steel Community , European Atomic Energy Community and the European Economic Community into a single institutional structure.The treaty was signed in Brussels on 8 April 1965 and came into force...
created a single set of institutions for the three communities, which were collectively referred to as the
European CommunitiesThe European Communities were three international organisations that were governed by the same set of institutions...
(EC), although commonly just as the
European Community.
In 1973 the Communities enlarged to include
DenmarkDenmark is a Scandinavian country in Northern Europe and the senior member of the Kingdom of Denmark. It is the southernmost of the Nordic countries; southwest of Sweden and south of Norway, and it is bordered to the south by Germany. Denmark borders both the Baltic and the North Sea...
,
IrelandIreland is a country in north-western Europe. The modern sovereign state occupies about five-sixths of the island of Ireland, which was partitioned on 3 May 1921. It is a parliamentary democracy and a republic...
and the
United KingdomThe United Kingdom of Great Britain and Northern Ireland is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of Ireland, and many small islands...
.
NorwayNorway , officially the Kingdom of Norway, is a country in Northern Europe occupying the western portion of the Scandinavian Peninsula, as well as Jan Mayen and the Arctic archipelago of Svalbard under the Spitsbergen Treaty...
had negotiated to join at the same time but Norwegian voters rejected membership in a referendum and so Norway remained outside. In 1979 the
first direct, democratic electionsThe 1979 European elections were parliamentary elections held across all then-9 European Community member states. They were the first European elections to be held, allowing citizens to elect 410 MEPs to the European Parliament, and also the first international election in history.Seats in the...
to the European Parliament were held.
GreeceGreece , officially the Hellenic Republic , is a country in southeastern Europe, situated on the southern end of the Balkan Peninsula....
joined in 1981, and
SpainSpain , officially the Kingdom of Spain , is a country located in southwestern Europe on the Iberian Peninsula.
[The Spanish constitution does not establish any official denomination of the country, even though España , Estado español and Nación española are used interchangeably...]
and
PortugalPortugal , officially the Portuguese Republic , is a country located in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of mainland Europe and is bordered by the Atlantic Ocean to the west and south and by Spain to the north and east...
in 1986. In 1985 the
Schengen AgreementThe Schengen Agreement is a treaty signed between five of the ten member states of the European Community in 1985. It was supplemented by the Convention implementing the Schengen Agreement some five years later...
led the way toward the creation of
open bordersBorder controls are measures used by a country to monitor or regulate its borders.The control of the flow of many people, animals and goods across a border may be controlled by government Customs services. Security is enforced by various kinds of Border Guards and Coast Guards...
without
passportA passport is a document, issued by a national government, which certifies, for the purpose of international travel, the identity and nationality of its holder. The elements of identity are name, date of birth, sex, and place of birth...
controls between most Member States and some non-Member States. In 1986 the European flag began to be used by the Community and the
Single European ActThe Single European Act was the first major revision of the 1957 Treaty of Rome. The Act set the European Community an objective of establishing a Common Market by 31 December 1992, and codified European Political Cooperation, the forerunner of the European Union's Common Foreign and Security Policy...
was signed.
In 1990, after the fall of the
Iron CurtainThe concept of the Iron Curtain symbolized the ideological and physical boundary dividing Europe into two separate areas from the end of World War II in 1945 until the end of the Cold War in 1991...
, the former East Germany became part of the Community as part of a newly united Germany. With enlargement toward
Eastern and Central EuropeEast-Central Europe – a term defining the countries located between German-speaking countries and Russia. Those lands are described as situated “between two”: between two worlds, between two stages, between two futures...
on the agenda, the
Copenhagen criteriaThe Copenhagen criteria are the rules that define whether a country is eligible to join the European Union. The criteria require that a state have the institutions to preserve democratic governance and human rights, have a functioning market economy, and accept the obligations and intent of the EU...
for candidate members to join the European Union were agreed.
The European Union was formally established when the
Maastricht TreatyThe Maastricht Treaty was signed on 7 February 1992 in Maastricht, the Netherlands after final negotiations on 9 December 1991 between the members of the European Community and entered into force on 1 November 1993 during the Delors Commission. It created the European Union and led to the creation...
came into force on 1 November 1993, and in 1995
AustriaAustria , officially the Republic of Austria , is a landlocked country of roughly 8.3 million people in Central Europe. It borders both Germany and the Czech Republic to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west...
,
SwedenSweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe...
and
FinlandFinland , officially the Republic of Finland
, is a Nordic country and democracy situated in the Fennoscandian region of northern Europe. It borders Sweden on the west, Russia on the east, and Norway on the north, while Estonia lies to its south across the Gulf of Finland...
joined the newly established EU. In 2002,
euroThe euro is the official currency of 16 of the 27 Member States of the European Union . The states, known collectively as the Eurozone, are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain...
notes and coins replaced national currencies in 12 of the Member States. Since then, the
eurozoneThe eurozone is an economic and monetary union of 16 European Union member states which have adopted the euro currency as their sole legal tender. It currently consists of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal,...
has increased to encompass sixteen countries, with Slovakia joining the eurozone on 1 January 2009. In 2004, the EU saw
its biggest enlargement to dateThe 2004 enlargement of the European Union was the largest single expansion of the European Union , both in terms of territory and population, yet was the smallest in terms of gross domestic product ....
when
MaltaMalta , officially the Republic of Malta , is a densely populated developed European country in the European Union. The Southern European island nation is an archipelago that includes the inhabited islands of Malta, Gozo and Comino, along with a number of smaller, uninhabited islands...
,
CyprusCyprus , officially the Republic of Cyprus , is a Eurasian island country situated in the eastern Mediterranean, south of Turkey and west of Syria and Lebanon....
,
SloveniaSlovenia , officially the Republic of Slovenia , is a country in Central Europe bordering Italy to the west, the Adriatic Sea to the southwest, Croatia to the south and east, Hungary to the northeast, and Austria to the north...
,
EstoniaEstonia , officially the Republic of Estonia , is a country in Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by the Russian Federation...
,
LatviaLatvia , officially the Republic of Latvia is a country in the Baltic region of Northern Europe. It is bordered to the north by Estonia , to the south by Lithuania , to the east by the Russian Federation , and to the southeast by Belarus . Across the Baltic Sea to the west lies Sweden...
,
LithuaniaLithuania , officially the Republic of Lithuania is a country in Northern Europe, the southernmost of the three Baltic states. Situated along the southeastern shore of the Baltic Sea, it shares borders with Latvia to the north, Belarus to the southeast, Poland, and the Russian exclave of...
,
PolandPoland , officially the Republic of Poland , is a country in Central Europe . Poland is bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, the
Czech RepublicThe Czech Republic is a country in Central Europe that is sometimes considered to be Eastern European. The country borders Poland to the northeast, Germany to the west and northwest, Austria to the south and Slovakia to the east. The capital and largest city is Prague...
,
SlovakiaThe Slovak Republic is a landlocked country in Eastern Europe with a population of over five million and an area of about . Slovakia borders the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south. The largest city is its capital, Bratislava...
, and
HungaryHungary , in English officially the Republic of Hungary , is a landlocked country in the Carpathian Basin of Central Europe, bordered by Austria, Slovakia, Ukraine, Romania, Serbia, Croatia, and Slovenia. Its capital is Budapest. Hungary is a member of OECD, NATO, EU, V4 and is a Schengen state...
joined the Union.
On 1 January 2007,
RomaniaRomania is a country located in Southeastern and Central Europe, North of the Balkan Peninsula, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea. Almost all of the Danube Delta is located within its territory...
and
BulgariaBulgaria , officially the Republic of Bulgaria , is a country in the Balkans in south-eastern Europe. Bulgaria borders five other countries: Romania to the north , Serbia and the Republic of Macedonia to the west, and Greece and Turkey to the south...
became the EU's newest members and
SloveniaSlovenia , officially the Republic of Slovenia , is a country in Central Europe bordering Italy to the west, the Adriatic Sea to the southwest, Croatia to the south and east, Hungary to the northeast, and Austria to the north...
adopted the euro. In December of that year European leaders signed the
Lisbon TreatyThe Treaty of Lisbon of 1668 was a peace treaty between Portugal and Spain, concluded at Lisbon on 13 February 1668, through the mediation of England, in which Spain recognized Portuguese independence.-The principals:...
which was intended to replace the earlier, failed
European ConstitutionThe Treaty establishing a Constitution for Europe , commonly referred to as the European Constitution, was an international treaty intended to create a constitution for the European Union...
, which never came into force after being rejected by French and Dutch voters. However, uncertainty clouded the prospects of the Lisbon Treaty's coming into force as result of its
rejection by Irish votersThe Twenty-eighth Amendment of the Constitution Bill 2008 was a proposal to amend the Constitution of Ireland in order to enable ratification of the Treaty of Lisbon of the European Union, so it could be enacted as scheduled on 1 January 2009...
in June 2008. On 2 October 2009 the Irish voters passed the Lisbon Treaty with 67% of the votes ratifying the treaty from a total
voter turnoutVoter turnout is the percentage of eligible voters who cast a ballot in an election. After increasing for many decades, there has been a trend of decreasing voter turnout in most established democracies since the 1960s. In general, low turnout may be due to disenchantment, indifference, or...
of 58% of the electorate. On 17 July 2009, the Parliament of
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
agreed to formally apply for EU membership and to begin talks for an agreement to be put to a referendum to the Icelandic voters. On 23 July 2009 the Icelandic foreign minister formally submitted Iceland's application for membership to his Swedish counterpart (Sweden held the EU Presidency on this date).
Member States
The European Union is composed of 27
sovereignA sovereign state is a political association with effective internal and external sovereignty over a geographic area and population which is not dependent on, or subject to any other power or state...
Member States:
AustriaAustria , officially the Republic of Austria , is a landlocked country of roughly 8.3 million people in Central Europe. It borders both Germany and the Czech Republic to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west...
,
BelgiumThe Kingdom of Belgium is a country in northwest Europe. It is a founding member of the European Union and hosts its headquarters, as well as those of other major international organizations, including NATO...
,
BulgariaBulgaria , officially the Republic of Bulgaria , is a country in the Balkans in south-eastern Europe. Bulgaria borders five other countries: Romania to the north , Serbia and the Republic of Macedonia to the west, and Greece and Turkey to the south...
,
CyprusCyprus , officially the Republic of Cyprus , is a Eurasian island country situated in the eastern Mediterranean, south of Turkey and west of Syria and Lebanon....
, the
Czech RepublicThe Czech Republic is a country in Central Europe that is sometimes considered to be Eastern European. The country borders Poland to the northeast, Germany to the west and northwest, Austria to the south and Slovakia to the east. The capital and largest city is Prague...
,
DenmarkDenmark is a Scandinavian country in Northern Europe and the senior member of the Kingdom of Denmark. It is the southernmost of the Nordic countries; southwest of Sweden and south of Norway, and it is bordered to the south by Germany. Denmark borders both the Baltic and the North Sea...
,
EstoniaEstonia , officially the Republic of Estonia , is a country in Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by the Russian Federation...
,
FinlandFinland , officially the Republic of Finland
, is a Nordic country and democracy situated in the Fennoscandian region of northern Europe. It borders Sweden on the west, Russia on the east, and Norway on the north, while Estonia lies to its south across the Gulf of Finland...
,
FranceFrance , officially the French Republic , is a country located in Western Europe, with several overseas islands and territories located on other continents. Metropolitan France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean...
,
GermanyGermany , officially the Federal Republic of Germany , is a country in Central Europe. It is bordered to the north by the North Sea, Denmark, and the Baltic Sea; to the east by Poland and the Czech Republic; to the south by Austria and Switzerland; and to the west by France, Luxembourg, Belgium,...
,
GreeceGreece , officially the Hellenic Republic , is a country in southeastern Europe, situated on the southern end of the Balkan Peninsula....
,
HungaryHungary , in English officially the Republic of Hungary , is a landlocked country in the Carpathian Basin of Central Europe, bordered by Austria, Slovakia, Ukraine, Romania, Serbia, Croatia, and Slovenia. Its capital is Budapest. Hungary is a member of OECD, NATO, EU, V4 and is a Schengen state...
,
IrelandIreland is a country in north-western Europe. The modern sovereign state occupies about five-sixths of the island of Ireland, which was partitioned on 3 May 1921. It is a parliamentary democracy and a republic...
,
ItalyItaly , officially the Italian Republic , is a country located on the Italian Peninsula in Southern Europe and on the two largest islands in the Mediterranean Sea, Sicily and Sardinia. Italy shares its northern, Alpine boundary with France, Switzerland, Austria and Slovenia...
,
LatviaLatvia , officially the Republic of Latvia is a country in the Baltic region of Northern Europe. It is bordered to the north by Estonia , to the south by Lithuania , to the east by the Russian Federation , and to the southeast by Belarus . Across the Baltic Sea to the west lies Sweden...
,
LithuaniaLithuania , officially the Republic of Lithuania is a country in Northern Europe, the southernmost of the three Baltic states. Situated along the southeastern shore of the Baltic Sea, it shares borders with Latvia to the north, Belarus to the southeast, Poland, and the Russian exclave of...
,
LuxembourgLuxembourg , officially the Grand Duchy of Luxembourg , is a small, landlocked country in western Europe, bordered by Belgium, France, and Germany...
,
MaltaMalta , officially the Republic of Malta , is a densely populated developed European country in the European Union. The Southern European island nation is an archipelago that includes the inhabited islands of Malta, Gozo and Comino, along with a number of smaller, uninhabited islands...
, the
NetherlandsThe Netherlands is a country in Northwestern Europe, constituting the major portion of the Kingdom of the Netherlands. It is a parliamentary democratic constitutional monarchy. The Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east...
,
PolandPoland , officially the Republic of Poland , is a country in Central Europe . Poland is bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
,
PortugalPortugal , officially the Portuguese Republic , is a country located in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of mainland Europe and is bordered by the Atlantic Ocean to the west and south and by Spain to the north and east...
,
RomaniaRomania is a country located in Southeastern and Central Europe, North of the Balkan Peninsula, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea. Almost all of the Danube Delta is located within its territory...
,
SlovakiaThe Slovak Republic is a landlocked country in Eastern Europe with a population of over five million and an area of about . Slovakia borders the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south. The largest city is its capital, Bratislava...
,
SloveniaSlovenia , officially the Republic of Slovenia , is a country in Central Europe bordering Italy to the west, the Adriatic Sea to the southwest, Croatia to the south and east, Hungary to the northeast, and Austria to the north...
,
SpainSpain , officially the Kingdom of Spain , is a country located in southwestern Europe on the Iberian Peninsula.
[The Spanish constitution does not establish any official denomination of the country, even though España , Estado español and Nación española are used interchangeably...]
,
SwedenSweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe...
, and the
United KingdomThe United Kingdom of Great Britain and Northern Ireland is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of Ireland, and many small islands...
.
Only
six of theseThe Inner Six, or simply The Six, were the six founding member-states of the European Communities. This was in contrast to the outer seven who formed the European Free Trade Association rather than be involved in supranational European integration .-History:The inner six are those who responded to...
– France, (then-
West) GermanyWest Germany is a common English name for the period of the Federal Republic of Germany between its' formation in May 1949 to German reunification in October 1990, when the German Democratic Republic was dissolved and the five states on its territory joined the Federal Republic of Germany,...
, Italy, and the three already integrated
BeneluxThe Benelux is a union in Western Europe that comprises three neighboring countries, Belgium, the Netherlands, and Luxembourg , which lie in the north western European region between France and Germany...
countries;
Belgium,
Netherlands, and
Luxembourg – were members at the start, with membership having grown as countries willingly accede to the
treatiesThe Treaties of the European Union are a set of international treaties between the Union's member states which sets out the constitutional basis of the European Union...
and by doing so, pool sovereignty in exchange for representation in the
institutionsThere are currently five institutions of the European Union which govern the Union. They are outlined in the treaties of the European Union in the following order: the European Parliament, the Council of the European Union ; the European Commission, the European Court of Justice and the European...
. To join the EU a country must meet the
Copenhagen criteriaThe Copenhagen criteria are the rules that define whether a country is eligible to join the European Union. The criteria require that a state have the institutions to preserve democratic governance and human rights, have a functioning market economy, and accept the obligations and intent of the EU...
, defined at the 1993 Copenhagen European Council. These require a stable democracy that respects
human rightsHuman rights refer to the "basic rights and freedoms to which all humans are entitled." Examples of rights and freedoms which have come to be commonly thought of as human rights include civil and political rights, such as the right to life and liberty, freedom of expression, and equality before the...
and the
rule of lawThe rule of law, also called supremacy of law, means that the law is above everyone and it applies to everyone. Whether governor or governed, rulers or ruled, no one is above the law, no one is exempted from the law, and no one can grant exemption to the application of the law.Rule of law is a...
; a functioning
market economyA market economy is economy based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand....
capable of competition within the EU; and the acceptance of the obligations of membership, including EU law. Evaluation of a country's fulfilment of the criteria is the responsibility of the
European CouncilThe European Council is the highest political body of the European Union. It comprises the heads of state or government of the Union's member states along with the President of the European Commission...
. The current framework does not specify how a country could exit the Union (although
GreenlandGreenland is an autonomous constituent country within the Kingdom of Denmark located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago...
, a territory of Denmark, withdrew in 1985), but the proposed
Treaty of LisbonThe Treaty of Lisbon of 1668 was a peace treaty between Portugal and Spain, concluded at Lisbon on 13 February 1668, through the mediation of England, in which Spain recognized Portuguese independence.-The principals:...
contains a formal procedure for withdrawing.
There are three official candidate countries,
CroatiaCroatia , officially the Republic of Croatia , is a country in southeast Europe, at the crossroads of the Pannonian Plain, the Balkans, and the Mediterranean Sea. Its capital is Zagreb...
,
MacedoniaMacedonia , officially the Republic of Macedonia , is a country in the central Balkan peninsula in southeastern Europe. It is one of the successor states of the former Yugoslavia, from which it declared independence in 1991...
and
TurkeyTurkey , known officially as the Republic of Turkey
, is a Eurasian country that stretches across the Anatolian peninsula in Western Asia and Thrace in the Balkan region of southeastern Europe...
.
AlbaniaAlbania , officially the Republic of Albania , is a Mediterranean country in South Eastern Europe. It is bordered by Montenegro to the north, Kosovo to the northeast, Macedonia to the east and Greece to the south-east...
,
Bosnia and HerzegovinaBosnia and Herzegovina Bosnia and Herzegovina Bosnia and Herzegovina ( or (Bosnian, Croatian, Serbian Latin: Bosna i Hercegovina; Serbian Cyrillic: Босна и Херцеговина) is a country in Southeast Europe, on the Balkan Peninsula...
,
MontenegroMontenegro , is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast, Kosovo to the east and Albania to the south...
,
SerbiaSerbia , officially the Republic of Serbia , is a country located in both Central and Southeastern Europe. Its territory covers the southern part of the Pannonian Plain and central part of the Balkans...
and
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
are officially recognised as potential candidates.
KosovoKosovo is a disputed territory in the Balkans. Its majority is governed by the partially-recognised Republic of Kosovo , a self-declared independent state which has de facto control over the territory; the exceptions are some Serb enclaves...
is also listed as a potential candidate but the European Commission does not list it as an independent country because not all Member States recognise it as an independent country separate from Serbia.
Four
Western EuropeWestern Europe is the collection of countries in the westernmost region of Europe, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a cultural entity—the region lying west of Central Europe...
an countries that have chosen not to join the EU have partly committed to the EU's economy and regulations:
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
, which has now applied for membership,
LiechtensteinThe Principality of Liechtenstein is a doubly landlocked alpine microstate in Western Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over 160 km² and it has an estimated population of 35,000...
and
NorwayNorway , officially the Kingdom of Norway, is a country in Northern Europe occupying the western portion of the Scandinavian Peninsula, as well as Jan Mayen and the Arctic archipelago of Svalbard under the Spitsbergen Treaty...
, which are a part of the
single marketA common market is a type of trade bloc which is composed of a customs union with common policies on product regulation, and freedom of movement of the factors of production and of enterprise. The goal is that the movement of capital, labour, goods, and services between the members is as easy as...
through the
European Economic AreaThe European Economic Area was established on 1 January 1994 following an agreement between member states of the European Free Trade Association ,the European Community , and all member states of the European Union...
, and
SwitzerlandSwitzerland , officially the Swiss Confederation , is a federal republic consisting of 26 states named cantons, with Bern as the seat of the federal authorities...
, which has similar ties through
bilateral treatiesSwitzerland is a member of the European Free Trade Association . It took part in negotiating the European Economic Area agreement with the European Union. It signed the agreement on 2 May 1992, and submitted an application for accession to the EU on 20 May 1992. However, a Swiss referendum held on...
. The relationships of the
European microstatesThere are a number of microstates in Europe; due to their size they are often closely linked with another larger state. Currently, the European microstates have special relations with the European Union....
,
AndorraAndorra , officially the Principality of Andorra , also called the Principality of the Valleys of Andorra, is a small landlocked country in southwestern Europe, located in the eastern Pyrenees mountains and bordered by Spain and France. It is the sixth smallest nation in Europe having an area of ...
,
MonacoMonaco , officially the Principality of Monaco , is a small sovereign city-state located in South Western Europe on the northern central coast of the Mediterranean Sea, having a land border on three sides only with France, and being about away from Italy. Its size is just under 2 km² with an...
,
San MarinoThe Most Serene Republic of San Marino is a country situated in the Apennine Mountains. It is a landlocked enclave, completely surrounded by Italy. Its size is just over 60 km² with an estimated population of almost 30,000. Its capital is the City of San Marino...
and the
VaticanVatican City , officially the State of the Vatican City , is a landlocked sovereign city-state whose territory consists of a walled enclave within the city of Rome, the capital city of Italy...
include the use of the
euroThe euro is the official currency of 16 of the 27 Member States of the European Union . The states, known collectively as the Eurozone, are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain...
and other areas of co-operation.
Geography
The territory of the EU consists of the combined territories of its 27 Member States with some exceptions, outlined below. The territory of the EU is not the same as that of
EuropeEurope is traditionally reckoned as one of seven continents. Physiographically, however, it is the northwestern peninsula of the larger landmass known as Eurasia : Asia occupies the eastern bulk of this continuous landmass and all share a common continental shelf...
, as parts of the continent are outside the EU, such as
SwitzerlandSwitzerland , officially the Swiss Confederation , is a federal republic consisting of 26 states named cantons, with Bern as the seat of the federal authorities...
,
NorwayNorway , officially the Kingdom of Norway, is a country in Northern Europe occupying the western portion of the Scandinavian Peninsula, as well as Jan Mayen and the Arctic archipelago of Svalbard under the Spitsbergen Treaty...
, European
RussiaRussia , officially known as both Russia and the Russian Federation , is a country in northern Eurasia . It is a semi-presidential republic, comprising 83 federal subjects...
, and (if considered part of Europe as it lies across both the North American and the European continental plates)
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
. Some parts of Member States are not part of the EU, despite forming part of the European continent (for example the
Isle of ManThe Isle of Man , or Mann , is a self-governing British Crown dependency, located in the Irish Sea between the islands of Britain and Ireland. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Crown is represented by a Lieutenant Governor...
and
Channel IslandsThe Channel Islands are an archipelago in the English Channel, off the French coast of Normandy. They include two separate bailiwicks: the Bailiwick of Guernsey and the Bailiwick of Jersey...
(two Crown Dependencies), and the
Faroe IslandsThe Faroe Islands, sometimes Faeroe Islands, Faroe, or Faeroes are an island group situated between the Norwegian Sea and the North Atlantic Ocean, approximately halfway between Scotland and Iceland...
, a territory of Denmark). The island country of
CyprusCyprus , officially the Republic of Cyprus , is a Eurasian island country situated in the eastern Mediterranean, south of Turkey and west of Syria and Lebanon....
, a member of the EU, is closer to
TurkeyTurkey , known officially as the Republic of Turkey
, is a Eurasian country that stretches across the Anatolian peninsula in Western Asia and Thrace in the Balkan region of southeastern Europe...
than to
mainland EuropeContinental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. Notably, in British and Irish English usage, the term means Europe excluding the United Kingdom, the Isle of Man, the Channel...
and is often considered part of
AsiaAsia is the world's largest and most populous continent, located in the eastern and northern hemispheres. It covers 8.6% of the earth's total surface area and with approximately 4 billion people, it hosts 60% of the world's current human population.Asia is traditionally defined as part of the...
.
Several territories associated with Member States that are outside geographic Europe are also not part of the EU (such as
GreenlandGreenland is an autonomous constituent country within the Kingdom of Denmark located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago...
,
ArubaAruba is a -long island of the Lesser Antilles in the southern Caribbean Sea, north of the Paraguaná Peninsula, Falcón State, Venezuela. Together with Bonaire and Curaçao, it forms a group referred to as the ABC islands of the Leeward Antilles, the southern island chain of the Lesser Antilles.An...
, the
Netherlands AntillesThe Netherlands Antilles , previously known as the Netherlands West Indies or Dutch Antilles/West Indies, is part of the Lesser Antilles and consists of two groups of islands in the Caribbean Sea: Curaçao and Bonaire, just off the Venezuelan coast, and Sint Eustatius, Saba and Sint Maarten, located...
, and all the non-European
British overseas territoriesThe British overseas territories are fourteen territories that are under the sovereignty of the United Kingdom, but which do not form part of the United Kingdom itself....
). Some overseas territories are part of the EU even though geographically not part of Europe, such as the
AzoresThe Azores is a Portuguese archipelago in the Atlantic Ocean, about from Lisbon and about from the east coast of North America. The two westernmost Azorean islands actually lie on the North American plate...
, the
Canary IslandsThe Canary Islands are a Spanish archipelago which, in turn, forms one of the Spanish Autonomous Communities and an Outermost Region of the European Union. The archipelago is located just off the northwest coast of mainland Africa, 100 km west of the disputed border between Morocco and the...
,
MadeiraMadeira is a Portuguese archipelago in the mid Atlantic Ocean that lies between and . It is one of the Autonomous regions of Portugal, with Madeira Island and Porto Santo Island being the only inhabited islands...
,
LampedusaThe Mediterranean island of Lampedusa belongs to Italy and is the largest of the Pelagie Islands, situated 205 km from Sicily and 113 km from Tunisia. Its population subsists on fishing, agriculture and tourism...
,
French GuianaFrench Guiana is an overseas department of France, located on the northern coast of South America. It has borders with two nations, Brazil and Suriname. Like the other DOMs, French Guiana is also an overseas region of France, one of the 26 regions of France. Its currency is the euro...
,
GuadeloupeGuadeloupe is an archipelago located in the eastern Caribbean Sea at , with a land area of 1,628 square kilometres . It is an overseas department of France. As with the other overseas departments, Guadeloupe is also one of the twenty-six regions of France and an integral part of the Republic...
,
MartiniqueMartinique is an island in the eastern Caribbean Sea, with a land area of . It is an overseas department of France. To the northwest lies Dominica, to the south St Lucia, and to the southeast Barbados. As with the other overseas departments, Martinique is also one of the twenty-six regions of...
and
RéunionRéunion is an island located in the Indian Ocean, east of Madagascar, about south west of Mauritius, the nearest island.Administratively, Réunion is one of the overseas départements of France...
,
CeutaCeuta is an autonomous city of Spain located on the North African side of the Strait of Gibraltar, on the Mediterranean, which separates it from the Spanish mainland. The area of Ceuta is approximately ....
and
MelillaMelilla is an autonomous Spanish city located on the Mediterranean, on the north coast of North Africa. It was regarded as a part of Málaga province prior to 14 March 1995, when the city's Statute of Autonomy was passed.Melilla was a free port before Spain joined the European Union. As of 2008 it...
. As well, although being technically part of the EU, EU law is suspended in Northern Cyprus as it is under the
de facto control of the
Turkish Republic of North Cyprus, a self-proclaimed state that is recognised only by Turkey.
The EU's Member States cover an area of . The EU is larger in area than all but
six countries, and its highest peak is
Mont BlancMont Blanc or Monte Bianco is the highest mountain in the Alps and in Western Europe. It rises above sea level and is ranked 11th in the world in topographic prominence...
in the
Graian AlpsThe Graian Alps are a mountain range in the western part of the Alps. They are located in France , Italy , and Switzerland...
,
above sea levelThe term above mean sea level refers to the elevation or altitude of any object, relative to the average sea level datum. AMSL is used extensively in radio by engineers to determine the coverage area a station will be able to reach...
. The landscape, climate, and economy of the EU are influenced by its coastline, which is long. The EU has the world's second-longest coastline, after
CanadaCanada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean...
. The combined Member States share
land bordersThis is a list of countries bordering the European Union, and its predecessor the European Community, both at its current geographical extent and after all previous rounds of enlargement.- 2007 to present :...
with 21 non-Member States for a total of , the fifth-longest border in the world.
Including the overseas territories of Member States, the EU experiences most
types of climateThe Köppen climate classification is one of the most widely used climate classification systems. It was first published by the Russian climatologist Wladimir Köppen in 1884, with several later modifications by Köppen himself notably in 1918 and 1936...
from
ArcticRegions with a polar climate are characterized by a lack of warm summers .The tundra covers over 20% of the earth...
to
tropicalA tropical climate is a kind of climate typical in the tropics. Köppen's widely-recognized scheme of climate classification defines it as a non-arid climate in which all twelve months have mean temperatures above .- Examples of tropical climates :...
, rendering meteorological averages for the EU as a whole meaningless. The majority of the population lives in areas with a
Mediterranean climateA hi Mediterranean climate resembles the climate of the lands in the Mediterranean Basin, which includes most of the area with this climate type worldwide...
(
Southern EuropeThe term Southern Europe, at its most general definition, is used to mean "all countries in the south of Europe". However, the concept, at different times, has had different meanings, providing additional political, linguistic and cultural context to the definition in addition to the typical...
), a temperate
maritime climateAn oceanic climate is the climate typically found along the west coasts at the middle latitudes of all the world's continents, and in southeastern Australia...
(
Western EuropeWestern Europe is the collection of countries in the westernmost region of Europe, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a cultural entity—the region lying west of Central Europe...
), or a warm summer continental or
hemiborealHemiboreal means halfway between the temperate and subarctic zones. The term is most frequently used in the context of ecosystems....
climate (
Eastern EuropeEastern Europe is a region lying in the Eastern part of Europe. The term is highly context-dependent and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...
).
Governance
The EU's work is divided into three areas of responsibility, called
pillarsThe Treaty of Maastricht, which established the European Union, divided EU policies into three main areas called pillars.- The three pillars :# The first or 'Community' pillar concerns economic, social and environmental policies....
. The original European Community policies form the first pillar, while the second consists of
Common Foreign and Security PolicyThe Common Foreign and Security Policy is the organised, agreed foreign policy of the European Union for mainly security and defence diplomacy and actions. CFSP deals only with a specific part of the EU External Relations, which domains include mainly Trade and Commercial Policy and other areas...
. The third pillar originally consisted of Justice and Home Affairs, however owing to changes introduced by the Amsterdam and Nice treaties, it has been reduced to
Police and Judicial Co-operation in Criminal MattersPolice and Judicial Co-operation in Criminal Matters , formerly Justice and Home Affairs , is the third of the three pillars of the European Union, focusing on co-operation in law enforcement and combating racism. It is based more around intergovernmental cooperation than the other pillars meaning...
(other matters were transferred to the Community). Broadly speaking, the second and third pillars can be described as the intergovernmental pillars because the supranational institutions of the Commission, Parliament and the Court of Justice play less of a role or none at all, while the lead is taken by the intergovernmental Council of Ministers and the European Council (which operate more by consensus then majority in these pillars). Most activities of the EU come under the first, Community pillar. This is mostly an economically oriented pillar and is where the supranational institutions have the most influence.
The activities of the EU are regulated by a number of institutions and bodies. They carry out the tasks and policies set out for them in the treaties. The EU receives its political leadership from the
European CouncilThe European Council is the highest political body of the European Union. It comprises the heads of state or government of the Union's member states along with the President of the European Commission...
, which is composed of one representative per Member State – either its
head of stateHead of state is the generic term for the individual or collective office that serves as the chief public representative of a monarchy, republic, federation, commonwealth or other kind of state...
or
head of governmentHead of government is the chief officer of the executive branch of a government, often presiding over a cabinet. In a parliamentary system, the head of government is often styled Prime Minister, President of the Government, Premier, etc...
– plus the
President of the CommissionThe President of the European Commission is the most powerful office in the European Union, as the head of the European Commission, the executive branch of the European Union. The President is responsible for allocating portfolios to members of the Commission and can reshuffle or fire them if needed...
. Each Member State's representative is assisted by its
Foreign MinisterA minister for foreign affairs, or foreign minister, is a governmental cabinet minister who helps form the foreign policy of a sovereign nation. The ministry for foreign affairs is often regarded as the most senior ministerial position below that of the head of government ; it is often granted to...
. The Council uses its leadership role to sort out disputes which have arisen between Member States and the institutions, and to resolve political crises and disagreements over controversial issues and policies. These procedures are all subject to the principle of subsidiarity which requires that action only be taken at EU level where an objective cannot be sufficiently achieved by the Member States alone.
The Council is headed by a
rotating presidencyPresidency of the Council of the European Union is the responsibility for the functioning of the Council of the European Union which is rotated between European Union member states every six months...
, with every Member State taking the helm of the EU for a period of six months during which that country's representatives chair meetings of the European Council and the Council of Ministers. The Member State holding the presidency typically uses it to drive a particular policy agenda such as economic reform, reform of the EU itself, enlargement or furthering European integration. The Council usually meet four times a year at European Summits.
The European Council should not be mistaken for the
Council of EuropeThe Council of Europe is the oldest international organisation working towards European integration, having been founded in 1949. It has a particular emphasis on legal standards, human rights, democratic development, the rule of law and cultural co-operation...
, an international organisation independent from the EU.
Institutions
The
European CommissionThe European Commission acts as an executive of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union.The Commission operates in the method of cabinet government, with 27...
acts as the EU's
executive arm}}In the study of political science the executive branch of government has sole authority and responsibility for the daily administration of the state bureaucracy. The division of power into separate branches of government is central to the democratic idea of the separation of powers .In many...
and is responsible for
initiating legislationLegislative initiative is the constitutionally defined power to propose law proposals .Legislative initiative is usually attributed to parliaments, which in most countries have the right to make law proposals, alone or sharing this right with governments.In parliamentary systems it is common that...
and the day-to-day running of the EU. It is intended to act solely in the interest of the EU as a whole, as opposed to the Council which consists of leaders of Member States who reflect national interests. The commission is also seen as the motor of
European integrationEuropean integration is the process of political, legal, economic integration of states wholly or partially in Europe...
. It is currently composed of 27
commissionersA European Commissioner is a member of the 27-member European Commission. Each Commissioner within the college holds a specific portfolio and are led by the President of the European Commission. In simple terms they are the equivalent of national ministers....
for different areas of policy, one from each Member State. The
President of the CommissionThe President of the European Commission is the most powerful office in the European Union, as the head of the European Commission, the executive branch of the European Union. The President is responsible for allocating portfolios to members of the Commission and can reshuffle or fire them if needed...
and all the other commissioners are nominated by the Council. Appointment of the Commission President, and also the Commission in its entirety, have to be confirmed by Parliament.
The
European ParliamentThe European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union , it forms the bicameral legislative branch of the Union's institutions and has been described as one of the most powerful legislatures in the world...
forms one half of the EU's
legislatureA legislature is a type of deliberative assembly with the power to pass, amend and repeal laws. The law created by a legislature is called legislation or statutory law...
. The 785
Members of the European ParliamentA Member of the European Parliament is the English name for a person who has been elected to the European Parliament, one of the European Union's two legislative bodies. MEPs are the European Union's equivalents of a country's national legislators in either the lower house or unicameral...
(MEPs) are directly elected by
EU citizensCitizenship of the European Union was introduced by the Maastricht Treaty signed in 1992. It exists alongside national citizenship and provides additional rights to nationals of Member States of the European Union.- Who is an EU citizen? :...
every five years. Although MEPs are elected on a national basis, they sit according to political groups rather than their nationality. Each country has a set number of seats. The Parliament and the Council form and pass legislation jointly, using
co-decisionThe codecision procedure is the main legislative procedure by which law can be adopted in the European Community, the first of the three pillars of the European Union...
, in certain areas of policy. This procedure will extend to many new areas under the proposed
Treaty of LisbonThe Treaty of Lisbon of 1668 was a peace treaty between Portugal and Spain, concluded at Lisbon on 13 February 1668, through the mediation of England, in which Spain recognized Portuguese independence.-The principals:...
, and hence increase the power and relevance of the Parliament. The Parliament also has the power to reject or censure the Commission and the EU budget. The
President of the European ParliamentThe President of the European Parliament presides over the debates and activities of the European Parliament. He or she also represents the Parliament within the EU and internationally. The President's signature is required for enacting most EU laws and the EU budget.Presidents serve...
carries out the role of
speakerThe term speaker is a title often given to the presiding officer of a legislative body. The speaker's official role is to moderate debate, make rulings on procedure, announce the results of votes, and the like. The speaker decides who may speak and has the powers to discipline members who break the...
in parliament and represents it externally. The president and vice presidents are elected by MEPs every two and a half years.
The
Council of the European UnionThe Council of the European Union is the principal decision-making institution of the European Union . It is often informally called the Council of Ministers or just the Council, the name used in the treaties; it is also called Consilium as a Latin-language compromise...
(sometimes referred to as the Council of Ministers) forms the other half of the EU's
legislatureA legislature is a type of deliberative assembly with the power to pass, amend and repeal laws. The law created by a legislature is called legislation or statutory law...
. It consists of a
government ministerA minister is a politician who holds significant public office in a national or regional government. Senior ministers are members of the cabinet.-Origin:...
from each Member States and meets in different compositions depending on the policy area being addressed. Notwithstanding its different compositions, it is considered to be one single body. In addition to its legislative functions, the Council also exercises
executive functionsThe executive system is a theorized cognitive system in psychology that controls and manages other cognitive processes. It is also referred to as the executive function, executive functions, supervisory attentional system, or cognitive control.The concept is used by psychologists and...
in relations to the
Common Foreign and Security PolicyThe Common Foreign and Security Policy is the organised, agreed foreign policy of the European Union for mainly security and defence diplomacy and actions. CFSP deals only with a specific part of the EU External Relations, which domains include mainly Trade and Commercial Policy and other areas...
.
The
judicial branchThe judiciary is the system of courts which interprets and applies the law in the name of the sovereign or state. The judiciary also provides a mechanism for the resolution of disputes...
of the EU consists of the
European Court of JusticeThe European Court of Justice , is the highest court in the European Union in matters of European Union law. It is tasked with interpreting EU law and ensuring its equal application across all EU member states. The Court was established in 1952 and is based in Luxembourg...
(ECJ) and the
Court of First InstanceThe European Court of First Instance, created in 1989, is a court of the European Union.-Competence:The Court of First Instance hears disputes . Appeals are sent to the European Court of Justice...
. Together they interpret and apply the treaties and the law of the EU. The Court of First Instance mainly deals with cases taken by individuals and companies directly before the EU's courts, and the ECJ primarily deals with cases taken by Member States, the institutions and
cases referred to itA preliminary ruling is a decision of the European Court of Justice on the interpretation of European Union law, made at the request of a court of a European Union member state. The name is somewhat of a misnomer in that preliminary rulings are not subject to a final determination of the matters...
by the courts of Member States. Decisions from the Court of First Instance can be appealed to the Court of Justice but only on a
point of lawIn jurisprudence, a question of law is a question which must be answered by applying relevant legal principles, by an interpretation of the law. Such a question is distinct from a question of fact, which must be answered by reference to facts and evidence, and inferences arising from those facts...
.
Legal system
The EU is based on a series of treaties. These first established the European Community and the EU, and then made amendments to those founding treaties. These are power-giving treaties which set broad policy goals and establish institutions with the necessary legal powers to implement those goals. These legal powers include the ability to enact legislation which can directly affect all Member States and their inhabitants. Under the principle of supremacy, national courts are required to enforce the treaties that their Member States have ratified, and thus the laws enacted under them, even if doing so requires them to ignore conflicting national law, and (within limits) even constitutional provisions.
The main legal acts of the EU come in three forms: regulations, directives and
decisionsA Decision is one of the three binding instruments provided by secondary EU legislation. A decision is binding on the person or entity to which it is addressed. Decisions may be addressed to member states or individuals...
. Regulations become law in all Member States the moment they come into force, without the requirement for any implementing measures, and automatically override conflicting domestic provisions. Directives require Member States to achieve a certain result while leaving them discretion as to how to achieve the result. The details of how they are to be implemented are left to Member States. When the time limit for implementing directives passes, they may, under certain conditions, have
direct effectDirect effect is a principle of European Community law according to which certain pieces of European legislation are enforceable before the courts of European Union member states. Direct effect is not explicitly mentioned in any of the EC Treaties, but was established by the European Court of...
in national law against Member States. Decisions offer an alternative to the two above modes of legislation. They are legal acts which only apply to specified individuals, companies or a particular Member State. They are most often used in Competition Law, or on rulings on State Aid, but are also frequently used for procedural or administrative matters within the institutions. Regulations, directives and decisions are of equal legal value and apply without any formal hierarchy.
One of the complicating features of the EU's legal system is the multiplicity of legislative procedures used to enact legislation. The treaties
micro-manageIn business management, micromanagement is a management style where a manager closely observes or controls the work of his or her subordinates or employees...
the EU's powers, indicating different ways of adopting legislation for different policy areas and for different areas within the same policy areas. A common feature of the EU's legislative procedures, however, is that almost all legislation must be initiated by the Commission, rather than Member States or European parliamentarians. The two most common procedures are co-decision, under which the European Parliament can veto proposed legislation, and consultation, under which Parliament is only permitted to give an opinion which can be ignored by European leaders. In most cases legislation must be agreed by the council.
National courts within the Member States play a key role in the EU as enforcers of EU law, and a "spirit of cooperation" between EU and national courts is laid down in the Treaties. National courts can apply EU law in domestic cases, and if they require clarification on the interpretation or validity of any EU legislation related to the case it may make a reference for a preliminary ruling to the ECJ. The right to declare EU legislation invalid however is reserved to the EU courts.
Justice and home affairs
Over the years, the EU has developed a wide competence in the area of justice and home affairs. To this end, agencies have been established that co-ordinate associated actions:
EuropolEuropol is the European Union's criminal intelligence agency. It became fully operational on 1 July 1999....
for co-operation of police forces,
EurojustEurojust is an agency of the European Union dealing with judicial co-operation.It is composed of national prosecutors, magistrates or police officers of equivalent competence from each of the EU states...
for co-operation between prosecutors, and
FrontexFrontex is the European Union agency for external border security...
for co-operation between border control authorities. The EU also operates the
Schengen Information SystemThe Schengen Information System, also called SIS, is a secure governmental database used by several European countries for the purpose of maintaining and distributing information related to border security and law enforcement. The data collected concern certain classes of persons and property...
which provides a common database for police and immigration authorities.
Furthermore, the Union has legislated in areas such as extradition,
family lawFamily law is an area of the law that deals with family-related issues and domestic relations including:*the nature of marriage, civil unions, and domestic partnerships;...
, asylum law, and
criminal justiceCriminal justice is the system of practices and institutions of governments directed at upholding social control, deterring and mitigating crime, and sanctioning those who violate laws with criminal penalties and rehabilitation efforts....
. Prohibitions against sexual and nationality discrimination have a long standing in the treaties. In more recent years, these have been supplemented by powers to legislate against discrimination based on race, religion, disability, age, and
sexual orientationSexual orientation is a pattern of emotional, romantic, and/or sexual attractions to men, women, both genders, neither gender, or another gender...
. By virtue of these powers, the EU has enacted legislation on
sexual discriminationSexism, a term coined in the mid-20th century, is the belief or attitude that one gender or sex is inferior to, less competent, or less valuable than the other. It can also refer to hatred of, or prejudice towards, either sex as a whole , or the application of stereotypes of masculinity in relation...
in the work-place,
age discriminationAgeism, also called age discrimination, is stereotyping of and discrimination against individuals or groups because of their age. It is a set of beliefs, attitudes, norms, and values used to justify age based prejudice and discrimination. This may be casual or systematic.The term was coined in 1969...
, and
racial discriminationRacism is the belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race. In the case of institutional racism, certain racial groups may be denied rights or benefits, or get preferential treatment...
.
Fundamental rights
At present the EU does not have a codified catalogue of fundamental rights against which its legal acts might be judged. However the
European Court of JusticeThe European Court of Justice , is the highest court in the European Union in matters of European Union law. It is tasked with interpreting EU law and ensuring its equal application across all EU member states. The Court was established in 1952 and is based in Luxembourg...
does give judgements on fundamental rights derived from the "constitutional traditions common to the Member States," and may even invalidate EU legislation based on its failure to adhere to these fundamental rights. While the EU may be said to have an unwritten fundamental rights code, there have, nonetheless, been efforts to establish a written catalogue. In 2000, the EU drew up the
Charter of Fundamental RightsThe Charter of Fundamental Rights of the European Union is a document enshrining certain fundamental rights.The wording of the document has been agreed at ministerial level and has been incorporated into the draft Constitution for Europe. However, the draft constitution was rejected by referendums...
. The Charter is not legally binding at present but would become so if the Lisbon Treaty comes into force.
Although signing the
European Convention on Human RightsThe Convention for the Protection of Human Rights and Fundamental Freedoms , was adopted under the auspices of the Council of Europe in 1950 to protect human rights and fundamental freedoms in Europe...
(ECHR) is a condition for EU membership, the EU itself is not covered by the convention as it is neither a state nor has the competence to accede. Nonetheless the Court of Justice and
European Court of Human RightsThe European Court of Human Rights in Strasbourg is an international judicial body established under the European Convention on Human Rights of 1950 to monitor respect of human rights by states...
co-operateCooperation, co-operation, or coöperation is the process of working or acting together, which can be accomplished by both intentional and non-intentional agents...
to ensure their case-law does not conflict. If the Lisbon Treaty comes into force the EU would be required to accede to the ECHR. The EU opposes the
death penaltyCapital punishment or the death penalty, is the execution of a person by judicial process as a punishment for an offense. Crimes that can result in a death penalty are known as capital crimes or capital offences....
and promotes its world wide abolition. Abolition of the death penalty is a condition for EU membership.
Foreign relations
Foreign policy cooperation between Member States dates from the establishment of the Community in 1957, when Member States negotiated as a bloc in
international tradeInternational trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product . While international trade has been present throughout much of history , its economic, social, and political...
negotiations under the Common Commercial Policy. Steps for a more wide ranging coordination in
foreign relationsDiplomacy is the art and practice of conducting negotiations between representatives of groups or states. It usually refers to international diplomacy, the conduct of international relations through the intercession of professional diplomats with regard to issues of peace-making, trade, war,...
began in 1970 with the establishment of
European Political CooperationThe European Political Cooperation was introduced in 1970 and was the synonym for European Union foreign policy coordination until it was superseded by the Common Foreign and Security Policy in the Maastricht Treaty ....
which created an informal consultation process between Member States with the aim of forming common foreign policies. It was not, however, until 1987 when European Political Cooperation was introduced on a formal basis by the
Single European ActThe Single European Act was the first major revision of the 1957 Treaty of Rome. The Act set the European Community an objective of establishing a Common Market by 31 December 1992, and codified European Political Cooperation, the forerunner of the European Union's Common Foreign and Security Policy...
. EPC was renamed as the
Common Foreign and Security Policy (CFSP) by the Maastricht Treaty.
The Maastricht Treaty gives the CFSP the aims of promoting both the EU's own interests and those of the
international communityThe international community is a vague term used in international relations to refer to all the governments of the world or to a group of them...
as a whole. This includes promoting international co-operation, respect for
human rightsHuman rights refer to the "basic rights and freedoms to which all humans are entitled." Examples of rights and freedoms which have come to be commonly thought of as human rights include civil and political rights, such as the right to life and liberty, freedom of expression, and equality before the...
,
democracyDemocracy is a system of government in which either the actual governing is carried out by the people governed , or the power to do so is granted by them...
, and the
rule of lawThe rule of law, also called supremacy of law, means that the law is above everyone and it applies to everyone. Whether governor or governed, rulers or ruled, no one is above the law, no one is exempted from the law, and no one can grant exemption to the application of the law.Rule of law is a...
.
The
Amsterdam TreatyThe Treaty of Amsterdam amending the Treaty of the European Union, the Treaties establishing the European Communities and certain related acts, commonly known as the Amsterdam Treaty, was signed on 2 October 1997, and entered into force on 1 May 1999; it made substantial changes to the Treaty on...
created the office of the
High Representative for the Common Foreign and Security PolicyThe High Representative for the Common Foreign and Security Policy is the main co-ordinator of the Common Foreign and Security Policy within the European Union...
(currently held by
Javier SolanaFrancisco Javier Solana de Madariaga, Ph.D. is the High Representative for the Common Foreign and Security Policy and the Secretary-General of both the Council of the European Union and the Western European Union . He was named Secretary General of the 10 permanent member Western European Union...
) to co-ordinate the EU's foreign policy. The High Representative, in conjunction with the current
PresidencyPresidency of the Council of the European Union is the responsibility for the functioning of the Council of the European Union which is rotated between European Union member states every six months...
, speaks on behalf of the EU in foreign policy matters and can have the task of articulating ambiguous policy positions created by disagreements among Member States. The Common Foreign and Security Policy requires unanimity among the now 27 Member States on the appropriate policy to follow on any particular issue. The unanimity and difficult issues treated under the CFSP makes disagreements, such as those which occurred over the
war in IraqThe Iraq War, also known as the Occupation of Iraq or Operation Iraqi Freedom, is an ongoing military campaign which began on March 20, 2003 with the invasion of Iraq by a multinational force led by troops from the United States and the United Kingdom.Prior to the war, the governments of the United...
, not uncommon.
Besides the emerging international policy of the European Union, the international influence of the EU is also felt through
enlargementEnlargement of the European Union is the process of expanding the European Union through the accession of new member states. This process began with the Inner Six, who founded the European Coal and Steel Community in 1951...
. The perceived benefits of becoming a member of the EU act as an incentive for both political and economic reform in states wishing to fulfil the EU's accession criteria, and are considered an important factor contributing to the reform of former
Communist countriesIn political science, a Communist state is a state with a form of government characterized by single-party rule of a Communist party and a professed allegiance to a communist ideology as the guiding principle of the state....
in
Central and Eastern EuropeCentral Europe is the region lying between the variously defined areas of Eastern and Western Europe. The term and widespread interest in the region itself came back into fashion after the end of the Cold War, which, along with the Iron Curtain, had divided Europe politically into East and West,...
. This influence on the internal affairs of other countries is generally referred to as "
soft powerSoft power is the ability to obtain what you want through co-option and attraction. It is in contradistinction to 'hard power', which is the use of coercion and payment. It is similar in substance but not identical to a combination of the second dimension and the third dimensions of power as...
", as opposed to military "hard power".
Besides the CFSP, the Commission also has its own representation in international organisations. This is primarily through the
European Commissioner for External RelationsThe European Commissioner for External Relations and European Neighbourhood Policy, is a member of the European Commission with responsibility over the Commissions external representation in the world and the European Union's Neighbourhood Policy. The responsibility is shared though between other...
, who works alongside the High Representative. In the UN, as an observer and working together, the EU has gained influence in areas such as aid due to its large contributions in that field (see below). In the
G8The Group of Eight is a forum, created by France in 1975, for governments of the six richest countries in the world: France, Germany, Italy, Japan, the United Kingdom, and the United States. In 1976, Canada joined the group...
, the EU has rights of membership besides chairing/hosting summit meetings and is represented at meetings by the presidents of the Commission and the Council. In the
World Trade OrganisationThe World Trade Organization is an international organization designed by its founders to supervise and liberalize international capital trade. The organization officially commenced on January 1, 1995 under the Marrakesh Agreement, replacing the General Agreements on Tariffs and Trade , which...
(WTO), where all 27 Member States are represented, the EU as a body is represented by
Trade CommissionerThe Commissioner for External Trade is the member of the European Commission responsible for the European Union's external trade policy. The portfolio is currently held by Catherine Ashton, a British member of the Party of European Socialists....
Catherine AshtonCatherine Margaret Ashton, Baroness Ashton of Upholland is a British Labour politician who is currently serving as the European Trade Commissioner; formerly, she served both as Leader of the House of Lords and Lord President of the Council....
.
There has been discussion among political analysts as to whether the European Union represents a new type of
geopoliticalGeopolitics is the art and practice of using political power over a given territory. Traditionally, the term has applied primarily to the impact of geography on politics, but its usage has evolved over the past century to encompass a wider connotation....
actorPower in international relations is defined in several different ways. Political scientists, historians, and practitioners of international relations have used the following concepts of political power:*Power as a goal of states or leaders;...
that focuses on
supranational lawSupranational law is a form of international law, based on the limitation of the rights of sovereign nations between one another. It is distinguished from public international law, which involves the United Nations, the Geneva conventions, or the Law of the Sea, because in supranational law,...
and economic and political rivalries rather than military and ideological rivalries. The discussion is typified by the debate over the extent to which the European Union sees itself, or is seen by others, as a "
postmodernPostmodernism literally means 'after the modernist movement'. While "modern" itself refers to something "related to the present", the movement of modernism and the following reaction of postmodernism are defined by a set of perspectives...
superpowerA number of states have been speculated to be, or to be in the process of turning into, a superpower at some point of the 21st century. Presently, it is widely considered that only the United States currently fulfills the criteria to be considered a superpower. Among the most commonly mentioned are...
" – either now or in the foreseeable future.
Military and defence
The predecessors of the European Union were not devised as a strong military alliance because NATO was largely seen as appropriate and sufficient for defence purposes. Twenty-one
EU membersA Member State of the European Union is any one of the 27 sovereign states that have acceded to the European Union since its de facto inception in 1951 as the European Coal and Steel Community . From an original membership of six states, there have been six successive enlargements, the largest...
are members of
NATOThe North Atlantic Treaty Organization ); ), also called "the Atlantic Alliance", is an intergovernmental military alliance based on the North Atlantic Treaty which was signed on April 4, 1949...
while the remaining Member States follow policies of neutrality. The
Western European UnionThe Western European Union is a largely dormant intergovernmental defence and security organisation, established on the basis of the Treaty of Brussels of 1948, with the accession of West Germany and Italy in 1954. The WEU headquarters are in Brussels...
(WEU) is a European security organisation related to the EU. In 1992, the WEU's relationship with the EU was defined, when the EU assigned it the "
Petersberg tasksThe Petersberg tasks are a list of military and security priorities incorporated within the European Security and Defence Policy of the European Union....
" (humanitarian missions such as peacekeeping and
crisis managementCrisis management is the process by which an organization deals with a major unpredictable event that threatens to harm the organization, its stakeholders, or the general public. Three elements are common to most definitions of crisis: a threat to the organization, the element of surprise, and ...
). These tasks were later transferred from the WEU to the EU by the Amsterdam Treaty and now form part of the Common Foreign and Security Policy and the
European Security and Defence PolicyThe European Security and Defence Policy or ESDP is a major element of the Common Foreign and Security Policy pillar of the European Union and is the domain of EU policy covering defence and military aspects...
. Elements of the WEU are currently being merged into the Common Foreign and Security Policy, and the President of the WEU is currently the EU's foreign policy chief.
Following the
Kosovo WarThe term Kosovo War or Kosovo Conflict is used to describe two sequential and at times parallel armed conflicts in Kosovo:#Early 1998–1999: War between Yugoslav police forces, Yugoslav paramilitaries, and the Kosovo Albanian insurgents....
in 1999, the European Council agreed that "the Union must have the capacity for
autonomous actionAutonomous Action, Avtonomnoe Deystvie, is a revolutionary anarchist federation in Russia, Belarus and Ukraine that was founded in January 2002.AD is comprised of anarcho-communists, syndicalists, autonomist-marxists, and radical ecologists...
, backed by credible
military forcesThe armed forces of a country are its government-sponsored defense, fighting forces, and organizations. They exist to further the foreign and domestic policies of their governing body, and to defend that body and the nation it represents from external and internal aggressors. In some countries...
, the means to decide to use them, and the readiness to do so, in order to respond to international crises without prejudice to actions by NATO". To that end, a number of efforts were made to increase the EU's military capability, notably the
Helsinki Headline GoalThe Helsinki Headline Goal was a military capability target set for 2003 during the December 1999 Helsinki European Council meeting. There was much interest in the idea of a single EU military force, and inaccurate characterisations of the initiative led to inaccurate...
process. After much discussion, the most concrete result was the EU Battlegroups initiative, each of which is planned to be able to deploy quickly about 1500 men. EU forces have been deployed on
peacekeepingPeacekeeping, as defined by the United Nations, is "a way to help countries torn by conflict create conditions for sustainable peace." It is distinguished from both peacebuilding and peacemaking....
missions from
AfricaAfrica is the world's second-largest and second most-populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area. With a billion people in 61 territories, it accounts for about 14.8% of the...
to the former
YugoslaviaYugoslavia is a term that describes three political entities that existed successively on the Balkan Peninsula in Europe, during most of the 20th century.The first country to be known by this...
and the
Middle EastThe Middle East is a region that spans southwestern Asia, southeastern Europe, and northeastern Africa. It has no clear boundaries, often used as a synonym to Near East, in opposition to Far East...
. EU
military operationThis article describes three distinct, but related terms: military operations, Operations as military events, and operational level of war.-Military operations:...
s are supported by a number of bodies, including the
European Defence AgencyThe European Defence Agency is an agency of the European Union based in Brussels. It is a Common Foreign and Security Policy body set up on 12 July 2004, reporting to the Council of the European Union. All EU member states, except Denmark which has an opt-out of the CFSP pillar, take part in the...
,
satellite centreThe European Union Satellite Centre is an Agency of the Council of the European Union which gathers information through satellite images to help the EU prevent conflicts and provide humanitarian aid....
and the
military staffThe European Union Military Staff is a department of the European Union , responsible for supervising operations within the realm of the European Security and Defence Policy...
.
Humanitarian aid
The European Community Humanitarian Aid Office, or "ECHO", provides
humanitarian aidHumanitarian aid is material or logistical assistance provided for humanitarian purposes, typically in response to humanitarian crises. The primary objective of humanitarian aid is to save lives, alleviate suffering, and maintain human dignity...
from the EU to
developing countriesDeveloping country is a term generally used to describe a nation with a low level of material well being. There is no single internationally-recognized definition of developed country, and the levels of development may vary widely within so-called developing countries, with some developing...
. In 2006 its budget amounted to €671 million, 48% of which went to the African, Caribbean and Pacific countries. Counting the EU's own contributions and those of its Member States together, the EU is the largest aid donor in the world.
The EU's aid has previously been criticised by the
euroscepticEuroscepticism is a general term used to describe opposition and criticism of the European Union , and the process of European integration...
think-tankA think tank is an organization, institute, corporation, or group that conducts research and engages in advocacy in areas such as social policy, political strategy, economy, science or technology issues, industrial or business policies, or military advice...
Open EuropeOpen Europe is a eurosceptic, London-based think-tank and interest group that UK business people set up. While Open Europe does not advocate British withdrawal from the European Union, it is critical of the process of European integration and has called for "substantial powers to be returned" to...
for being inefficient, mis-targeted and linked to economic objectives. Furthermore, some charities have claimed European governments have inflated the amount they have spent on aid by incorrectly including money spent on
debt reliefDebt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations...
,
foreign studentsInternational students are students, usually in early adulthood, who study in foreign educational institutions. While most universities have official student exchange programs, some well-funded high schools have them, too. Although some students travel abroad mainly to improve their language...
, and refugees. Under the de-inflated figures, the EU as a whole did not reach its internal aid target in 2006 and is expected not to reach the international target of 0.7% of
GNIGross national income ' comprises the total value produced within a country , together with its income received from other countries , less similar payments made to other countries....
until 2015. However, four countries have reached that target, most notably
SwedenSweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe...
,
LuxembourgLuxembourg , officially the Grand Duchy of Luxembourg , is a small, landlocked country in western Europe, bordered by Belgium, France, and Germany...
,
the NetherlandsThe Netherlands is a country in Northwestern Europe, constituting the major portion of the Kingdom of the Netherlands. It is a parliamentary democratic constitutional monarchy. The Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east...
and
DenmarkDenmark is a Scandinavian country in Northern Europe and the senior member of the Kingdom of Denmark. It is the southernmost of the Nordic countries; southwest of Sweden and south of Norway, and it is bordered to the south by Germany. Denmark borders both the Baltic and the North Sea...
. In 2005 EU aid was 0.34% of the GNP which was higher than that of either the United States or Japan. The current
commissioner for aidEuropean Commissioner for Development & Humanitarian Aid is a member of the European Commission. The post is currently held by Commissioner Karel De Gucht...
,
Louis MichelLouis H. O. Ch. Michel is a Belgian Member of European Parliament. Before that, he served as European Commissioner for Development and Humanitarian Aid until July 2009...
, has called for aid to be delivered more rapidly, to greater effect, and on humanitarian principles.
Economy
Since its origin, the EU has established a single economic market across the territory of all its members. Currently, a single currency is in use between the 16 members of the
eurozoneThe eurozone is an economic and monetary union of 16 European Union member states which have adopted the euro currency as their sole legal tender. It currently consists of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal,...
. If considered as a single economy, the EU generated an estimated nominal
gross domestic productThe gross domestic product or gross domestic income is a basic measure of a country's economic performance and is the market value of all final goods and services made within the borders of a country in a year...
(GDP) of
US$The United States dollar is the unit of currency of the United States. The U.S. dollar is normally abbreviated as the dollar sign, $, or as USD or US$ to distinguish it from other dollar-denominated currencies and from others that use the $ symbol. It is divided into 100 cents .The U.S...
18.39 trillion (15.247 trillion international dollars based on
purchasing powerPurchasing power is the number of goods/services that can be purchased with a unit of currency. For example, if you had taken one dollar to a store in the 1950s, you would have been able to buy a greater number of items than you would today, indicating that you would have had a greater purchasing...
parity) in 2008, amounting to over 22% of the world's total
economic outputOutput in economics is the total value of all of the goods and services produced in an entity's economy. It is a concept used in macroeconomics, or the study of the economic transactions of broad groups such as countries....
in terms of purchasing power parity,
Gross domestic product, current prices; U.S. dollars, Billions;
2007=16,927.173
2008=18,394.115
2009=15,342.908 [projection]
Gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP; Current international dollar, Billions;
2007=14,762.109
2008=15,247.163
2009=14,774.525 [projection]
GDP based on PPP share of world total
2007=22.605%
2008=22.131%
2009=21.609% [projection]
World "GDP", current prices; U.S. dollars, Billions;
2007=54,840.873
2008=60,689.812
2009=54,863.551 [projection]
These data were published in 2009. Data for 2009 are projections based on a number of assumptions.
}} which makes it the largest economy in the world by nominal GDP and the second largest
trade blocA trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade are reduced or eliminated among the participating states.-Description:...
economy in the world by PPP valuation of GDP. It is also the largest exporter , and largest importer of
goods and servicesIn economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility. It is often used when referring to a Goods and Services Tax....
, and the biggest trading partner to several large countries such as
IndiaIndia, officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal...
and
ChinaThe People's Republic of China , commonly known as China, is the largest country in East Asia and the most populous in the world with over 1.3 billion people, approximately one-fifth of the world's population...
.
178 of the top 500 largest corporations measured by revenue (
Fortune Global 500The Fortune Global 500 is a ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by Fortune magazine....
) have their headquarters in the EU.
In May 2007 unemployment in the EU stood at 7% while investment was at 21.4% of GDP, inflation at 2.2% and public deficit at −0.9% of GDP. There is a great deal of variance for annual per capita income within individual EU states, these range from US$7,000 to US$69,000.
Single market
Two of the original core objectives of the European Economic Community were the development of a
common marketA common market is a type of trade bloc which is composed of a customs union with common policies on product regulation, and freedom of movement of the factors of production and of enterprise. The goal is that the movement of capital, labour, goods, and services between the members is as easy as...
, subsequently renamed the
single marketA common market is a type of trade bloc which is composed of a customs union with common policies on product regulation, and freedom of movement of the factors of production and of enterprise. The goal is that the movement of capital, labour, goods, and services between the members is as easy as...
, and a
customs unionThe European Union Customs Union is a customs union which consists of all European Union member states. No customs are levied on goods travelling within the customs union and — unlike a free trade area — members of the customs union impose a common external tariff on all goods entering...
between its Member States. The single market involves the free circulation of goods,
capitalIn economics, capital or capital goods or real capital are factors of production used to create goods or services that are not themselves significantly consumed in the production process. Capital goods may be acquired with money or financial capital...
,
peopleThe freedom of movement for workers is a policy chapter of the acquis communautaire of the European Union. It is part of the free movement of persons and one of the four economic freedoms: free movement of goods, services, labour and capital.-Introduction:...
and services within the EU, and the customs union involves the application of a
common external tariffWhen a group of countries form a customs union they must introduce a common external tariff. The same customs duties, import quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which country within the area they are entering...
on all goods entering the market. Once goods have been admitted into the market they can not be subjected to
customs dutiesCustoms is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, personal effects and hazardous items in and out of a country. Depending on local legislation and regulations, the import or export of...
, discriminatory taxes or
import quotaAn import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time....
s, as they travel internally. The non-EU Member States of
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
,
NorwayNorway , officially the Kingdom of Norway, is a country in Northern Europe occupying the western portion of the Scandinavian Peninsula, as well as Jan Mayen and the Arctic archipelago of Svalbard under the Spitsbergen Treaty...
,
LiechtensteinThe Principality of Liechtenstein is a doubly landlocked alpine microstate in Western Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over 160 km² and it has an estimated population of 35,000...
and
SwitzerlandSwitzerland , officially the Swiss Confederation , is a federal republic consisting of 26 states named cantons, with Bern as the seat of the federal authorities...
participate in the single market but not in the customs union. Half the trade in the EU is covered by legislation harmonised by the EU.
Free movement of capital is intended to permit movement of investments such as property purchases and buying of shares between countries. Until the drive towards
Economic and Monetary UnionAn economic and monetary union is a type of trade bloc which is composed of a single market with a common currency. It is to be distinguished from a mere currency union , which does not involve a single market. This is the fifth stage of economic integration...
the development of the capital provisions had been slow. Post-Maastricht there has been a rapidly developing corpus of ECJ judgements regarding this initially neglected freedom. The free movement of capital is unique insofar as that it is granted equally to non-Member States.
The free movement of persons means
citizensCitizenship of the European Union was introduced by the Maastricht Treaty signed in 1992. It exists alongside national citizenship and provides additional rights to nationals of Member States of the European Union.- Who is an EU citizen? :...
can move freely between Member States to live, work, study or retire in another country. This required the lowering of administrative formalities and recognition of professional qualifications of other states.
The free movement of services and of establishment allows
self-employedSelf-employment is where a person works for themselves rather than someone else or a company that they do not own. To be self-employed, an individual is normally highly skilled in a trade or has a niche product or service for their local community. With the creation of the Internet the ability for...
persons to move between Member States in order to provide services on a temporary or permanent basis. While services account for between sixty and seventy percent of GDP, legislation in the area is not as developed as in other areas. This lacuna has been addressed by the recently passed
Directive on services in the internal marketThe Directive on services in the internal market is an initiative of the European Commission aimed at creating a single market for services within the European Union , similar to the single market for goods already present...
which aims to liberalise the cross border provision of services. According to the Treaty the provision of services is a residual freedom that only applies if no other freedom is being exercised.
Monetary union
The creation of a European single currency became an official objective of the EU in 1969. However, it was only with the advent of the Maastricht Treaty in 1993 that Member States were legally bound to start the
monetary unionA currency union is where two or more states share the same currency, though without there necessarily having any further integration as would be characterised by an Economic and Monetary Union, which involves economic integration to the point of a single market.-Examples of existing...
no later than 1 January 1999. On this date the
euroThe euro is the official currency of 16 of the 27 Member States of the European Union . The states, known collectively as the Eurozone, are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain...
was duly
launched by elevenThe introduction of the euro took place principally between 31 December 1998, when the exchange rates between the euro and legacy currencies in the eurozone became fixed, and early 2002, when euro notes and coins were introduced and the legacy currencies withdrawn.Since 2002, the eurozone has...
of the then fifteen Member States of the EU. It remained an accounting currency until 1 January 2002, when
euro notesEuro banknotes are the banknotes of the euro, the currency of the eurozone . They have been in circulation since 2002 and are issued by the European Central Bank , each bearing the signature of the President of the European Central Bank...
and coins were issued and national currencies began to phase out in the
eurozoneThe eurozone is an economic and monetary union of 16 European Union member states which have adopted the euro currency as their sole legal tender. It currently consists of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal,...
, which by then consisted of twelve Member States. The eurozone has since grown to sixteen countries, the most recent being
SlovakiaThe Slovak Republic is a landlocked country in Eastern Europe with a population of over five million and an area of about . Slovakia borders the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south. The largest city is its capital, Bratislava...
which joined on 1 January 2009.
All other EU Member States, except Denmark and the United Kingdom, are legally bound to join the euro when the economic conditions are met, however only a few countries have set target dates for accession. Sweden has circumvented the requirement to join the euro area by not meeting the membership criteria.
The euro is designed to help build a single market by, for example: easing travel of citizens and goods, eliminating
exchange rateIn finance, the exchange rates between two currencies specifies how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency...
problems, providing price transparency, creating a single
financial marketIn economics, a financial market is a mechanism that allows people to easily buy and sell financial securities , commodities , and other fungible items of value at low transaction costs and at prices that reflect the efficient-market hypothesis.Financial markets have evolved significantly over...
,
price stabilityIn economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation is also an erosion in the purchasing power of money – a loss of real...
and low
interest rateAn interest rate is the price a borrower pays for the use of money they do not own, for instance a small company might borrow from a bank to kick start their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower...
s, and providing a currency used internationally and protected against shocks by the large amount of internal trade within the eurozone. It is also intended as a political symbol of integration and stimulus for more. Since its launch the euro has become the second
reserve currencyA reserve currency is a currency which is held in significant quantities by many governments and institutions as part of their foreign exchange reserves...
in the world with a quarter of foreign exchanges reserves being in euro.
The euro, and the monetary policies of those who have adopted it in agreement with the EU, are under the control of the
European Central BankThe European Central Bank is one of the world's most important central banks, responsible for monetary policy covering the 16 member States of the Eurozone. It was established by the European Union in 1998 with its headquarters in Frankfurt, Germany.-History:Technically the predecessor to the ECB...
(ECB). There are
eleven other currenciesThere are thirteen currencies of the European Union as of 2009, the principal currency being the euro. The euro is used by the the institutions of the European Union and by the eurozone states, which account for 16 of the 27 member states of the European Union...
used in the EU. A number of other countries outside the EU, such as
MontenegroMontenegro , is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast, Kosovo to the east and Albania to the south...
, use the euro without formal agreement with the ECB.
Competition
The EU operates a
competition policyCompetition law, known in the United States as antitrust law, has three main elements:*prohibiting agreements or practices that restrict free trading and competition between business entities. This includes in particular the repression of cartels....
intended to ensure undistorted competition within the single market. The Commission as the
competition regulatorA competition regulator is a government agency, typically a statutory authority, sometimes called an economic regulator, which regulates and enforces competition laws, and may sometimes also enforce consumer protection laws...
for the single market is responsible for
antitrustCompetition law, known in the United States as antitrust law, has three main elements:*prohibiting agreements or practices that restrict free trading and competition between business entities. This includes in particular the repression of cartels....
issues, approving
mergersThe phrase mergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow rapidly without having to create another...
, breaking up
cartelA cartel is a formal agreement among firms. It is a formal organization of producers that agree to coordinate prices and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
s, working for
economic liberalisationEconomic liberalism is the economic component of classical liberalism. It is the political and economic philosophy that supports and promotes the economic system of capitalism, in the laissez-faire sense...
and preventing
state aidA subsidy is a form of financial assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more...
.
The Competition Commissioner, currently
Neelie KroesNeelie Kroes is a Dutch politician of the People's Party for Freedom and Democracy and since November 22 2004 the European Commissioner for Competition....
, is one of the most powerful positions in the Commission, notable for the ability to affect the commercial interests of trans-national corporations. For example, in 2001 the Commission for the first time prevented a merger between two companies based in the
United StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
(
GEThe General Electric Company, or GE , is a multinational American technology and services conglomerate incorporated in the State of New York. In 2009, Forbes ranked GE as the world's largest company...
and
HoneywellHoneywell is a major conglomerate company that produces a variety of consumer products, engineering services, and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments....
) which had already been approved by their national authority. Another high profile case against Microsoft, resulted in the Commission fining
MicrosoftMicrosoft Corporation is a multinational computer technology corporation that develops, manufactures, licenses, and supports a wide range of software products for computing devices...
over €777 million following nine years of
legal actionLaw is a system of rules, usually enforced through a set of institutions. It shapes politics, economics and society in numerous ways and serves as a primary social mediator of relations between people. Contract law regulates everything from buying a bus ticket to trading on derivatives markets...
.
In negotiations on the Treaty of Lisbon, French President
Nicolas SarkozyNicolas Sarkozy is the 23rd and current President of the French Republic and ex officio Co-Prince of Andorra...
succeeded in removing the words "free and undistorted competition" from the treaties. However, the requirement is maintained in an annex and it is unclear whether this will have any
practical effectA practical special effect is one in which a prop object appears to work in a situation where it obviously could not . No trick photography or post-production editing is involved...
on EU policy.
Budget
The twenty-seven Member State EU had an agreed budget of €120.7 billion for the year 2007 and €864.3 billion for the period 2007–2013, representing 1.10% and 1.05% of the EU-27's
GNIGross national income ' comprises the total value produced within a country , together with its income received from other countries , less similar payments made to other countries....
forecast for the respective periods. By comparison, the United Kingdom's expenditure for 2004 was estimated to be €759 billion, and France was estimated to have spent €801 billion. In 1960, the budget of the then European Economic Community was 0.03% of GDP.
In the 2006 budget, the largest single expenditure item was
agricultureThe Common Agricultural Policy is a system of European Union agricultural subsidies and programs. It represents 48% of the EU's budget, €49.8 billion in 2006 ....
with around 46.7% of the total budget. Next came structural and cohesion funds with approximately 30.4% of the total. Internal policies took up around 8.5%. Administration accounted for around 6.3%. External actions, the pre-accession strategy, compensations and reserves brought up the rear with approximately 4.9%, 2.1%, 1% and 0.1% respectively.
Agriculture
The
Common Agricultural PolicyThe Common Agricultural Policy is a system of European Union agricultural subsidies and programs. It represents 48% of the EU's budget, €49.8 billion in 2006 ....
(CAP) is one of the oldest policies of the European Community, and was one of its core aims. The policy has the objectives of increasing agricultural production, providing certainty in food supplies, ensuring a high
quality of lifeThe term quality of life is used to evaluate the general well-being of individuals and societies. The term is used in a wide range of contexts, including the fields of international development, healthcare, and political science. Quality of life should not be confused with the concept of...
for farmers, stabilising markets, and ensuring reasonable prices for consumers (article 33 of the Treaty of Rome). It was, until recently, operated by a system of subsidies and market intervention. Until the 1990s, the policy accounted for over 60% of the then
European CommunityThe European Community is the first of the three pillars of the European Union created under the Maastricht Treaty . It is based upon the principle of supranationalism and has its origins in the European Economic Community, the predecessor of the European Union. If the Treaty of Lisbon comes into...
's annual budget, and still accounts for around 35%.
The policy's
price controlsIncomes policies in economics are wage and price controls, most commonly instituted as a response to inflation, and usually below market level....
and market interventions led to considerable overproduction, resulting in so-called
butter mountains and
wine lakes. These were
intervention storesIntervention storage is the practice in the European Union of storing quantities of produce with the aim of stabilising markets, which began after the creation of the Common Agricultural Policy...
of produce bought up by the Community to maintain minimum
price levelA price level is a hypothetical measure of overall prices for some set of goods and services, in a given region during a given interval, normalized relative to some base set...
s. In order to dispose of surplus stores, they were often sold on the world market at prices considerably below Community guaranteed prices, or farmers were offered subsidies (amounting to the difference between the Community and world prices) to export their produce outside the Community. This system has been criticised for under-cutting farmers in the
developing worldThe term Third World arose during the Cold War to define countries that remained non-aligned or neutral with either capitalism and NATO or communism and the Soviet Union...
. The overproduction has also been criticised for encouraging environmentally unfriendly
intensive farmingIntensive farming or intensive agriculture is an agricultural production system characterized by the high inputs of capital, labour, or heavy usage of technologies such as pesticides and chemical fertilizers relative to land area....
methods. Supporters of CAP say that the economic support which it gives to farmers provides them with a reasonable
standard of livingStandard of living is generally measured by standards such as real income per person and poverty rate. Other measures such as access and quality of health care, income growth inequality and educational standards are also used. Examples are access to certain goods , or measures of health such as...
, in what would otherwise be an economically unviable way of life. However, the EU's small farmers receive only 8% of CAP's available subsidies.
Since the beginning of the 1990s, the CAP has been subject to a series of reforms. Initially these reforms included the introduction of
set-asideSet-aside was introduced as a political measure by the European Union in 1988 to help reduce the large and costly surpluses produced in Europe under the guaranteed price system of the Common Agricultural Policy ; and to deliver some environmental benefits following considerable damage to...
in 1988, where a proportion of farm land was deliberately withdrawn from production, milk quotas (by the McSharry reforms in 1992) and, more recently, the 'de-coupling' (or disassociation) of the money farmers receive from the EU and the amount they produce (by the Fischler reforms in 2004). Agriculture expenditure will move away from subsidy payments linked to specific produce, toward direct payments based on farm size. This is intended to allow the market to dictate production levels, while maintaining agricultural income levels. One of these reforms entailed the abolition of the EU's sugar regime, which previously divided the sugar market between Member States and certain African-Caribbean nations with a privileged relationship with the EU.
Energy
In 2006, the 27 Member States of the EU had a gross inland
energy consumptionIn 2005, total worldwide energy consumption was 500 exajoules with 80 to 90 percent derived from the combustion of fossil fuels. This is equivalent to an average energy consumption rate of 16 terawatts...
of 1,825 million tonnes of oil equivalent (toe).
In the EU27, gross inland energy consumption was 1 825 million tonnes of oil equivalent (toe) in 2006, stable compared with 2005, while energy production decreased by 2.3% to 871 mn toe. . . .
Gross inland consumption is defined as primary production plus imports, recovered products and stock change, less exports and fuel supply to maritime bunkers (for seagoing ships of all flags). . . . .
A tonne of oil equivalent (toe) is a standardised unit defined on the basis of one tonne of oil having a net calorific value of 41.868 Gigajoules.}} Around 46% of the energy consumed was produced within the Member States while 54% was imported. In these statistics, nuclear energy is treated as
primary energyPrimary energy is energy found in nature that has not been subjected to any conversion or transformation process.Primary energy is energy contained in raw fuels and any other forms of energy received by a system as input to the system. The concept is used especially in energy statistics in the...
produced in the EU, regardless of the source of the uranium, of which less than 3% is produced in the EU. Nuclear energy and renewable energy are treated differently from oil, gas , and coal in this respect.
The EU has had legislative power in the area of
energy policyEnergy policy is the manner in which a given entity has decided to address issues of energy development including energy production, distribution and consumption...
for most of its existence; this has its roots in the original
European Coal and Steel CommunityThe European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for European democracy and the modern-day developments of the European Union...
. The introduction of a mandatory and comprehensive European energy policy was approved at the meeting of the European Council in October 2005, and the first draft policy was published in January 2007.
The Commission has five key points in its energy policy: increase competition in the
internal marketAn internal market operates inside an organizations or set of organizations which have decoupled internal components. Each component trades its services and interfaces with the others. Often a set of government or government-funded set of organizations will operate an internal market...
, encourage investment and boost interconnections between
electricity gridsFile:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumersrect 2 243 235 438 Power stationrect 276 317 412 556 Transformer...
; diversify energy resources with better systems to respond to a crisis; establish a new treaty framework for energy co-operation with Russia while improving relations with energy-rich states in
Central AsiaAsia is a region of Asia from the Caspian Sea in the west to central China in the east, and from southern Russia in the north to northern India in the south. It is also sometimes known as Middle Asia or Inner Asia, and is within the scope of the wider Eurasian continent.Various definitions of its...
and
North AfricaNorth Africa or Northern Africa is the northernmost region of the African continent, linked by the Sahara to Sub-Saharan Africa.Geopolitically, the UN definition of Northern Africa includes the following seven countries or territories; Algeria, Egypt, Libya, Morocco, Sudan, Tunisia,Mauritania, and...
; use existing energy supplies more efficiently while increasing use of renewable energy; and finally increase funding for new energy technologies.
The EU currently imports 82% of its
oilPetroleum or crude oil is a naturally occurring, flammable liquid found in rock formations in the Earth consisting of a complex mixture of hydrocarbons of various molecular weights, plus other organic compounds.The term "petroleum" was first used in the treatise De Natura Fossilium, published in...
, 57% of its
gasNatural gas is a gas consisting primarily of methane. It is found associated with fossil fuels, in coal beds, as methane clathrates, and is created by methanogenic organisms in marshes, bogs, and landfills...
and 97.48% of its
uraniumUranium is a silvery-white metallic chemical element in the actinide series of the periodic table that has the symbol U and atomic number 92. Besides its 92 protons, a uranium nucleus can have between 141 and 146 neutrons. The most common uranium isotopes are U-238 and U-235 . A uranium atom has...
demands. There are concerns that Europe's dependence on Russian energy is endangering the Union and its member countries. The EU is attempting to diversify its
energy supplyEnergy supply is the delivery of fuels or transformed fuels to point of consumption. It potentially encompasses the extraction, transmission, generation, distribution and storage of fuels....
.
Infrastructure
The EU is working to improve cross-border
infrastructureInfrastructure can be defined as the basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function....
within the EU, for example through the
Trans-European NetworksThe Trans-European Networks were created by the European Union by Articles 154-156 of the Treaty of Rome , with the stated goals of the creation of an internal market and the reinforcement of economic and social cohesion...
(TEN). Projects under TEN include the
Channel TunnelThe Channel Tunnel , also known as the Chunnel, is a undersea rail tunnel linking Folkestone, Kent in the UK with Coquelles, near Calais in northern France beneath the English Channel at the Strait of Dover. At its lowest point it is deep...
,
LGV EstThe LGV Est européenne is an extension to the French high-speed TGV network, connecting Paris and Strasbourg. , it is the newest high-speed line in France and still under construction, with 300 km of a planned 406 km in service...
, the
Fréjus Rail TunnelThe Fréjus Rail Tunnel is a rail tunnel of length in the European Alps, carrying the Fréjus railway through Mount Cenis and connecting Modane, France and Bardonecchia, Italy...
, the
Öresund BridgeThe Øresund or Öresund Bridge is a combined two-track rail and four-lane road bridge-tunnel across the Öresund strait. It is the longest combined road and rail bridge in Europe and connects the two metropolitan areas of the Öresund Region: the Danish capital of Copenhagen and the Swedish city of...
and the
Brenner Base TunnelThe Brenner Base Tunnel is a planned long railway tunnel through the base of the Brenner massif. It will run from Innsbruck Hauptbahnhof in Austria to Franzensfeste in Italy....
. In 2001 it was estimated that by 2010 the network would cover: of roads; of railways; 330 airports; 270 maritime harbours; and 210 internal harbours.
The developing European transport policies will increase the pressure on the environment in many regions by the increased transport network. In the pre-2004 EU members, the major problem in transport deals with congestion and pollution. After the recent enlargement, the new states that joined since 2004 added the problem of solving accessibility to the transport agenda. The
Polish road networkThe road infrastructure of Poland is underdeveloped. As of October 2009, there were 881 kilometres of motorways ; 557 km of expressways , and an extensive network of roads connecting all major cities.The quality of the Polish road transport...
in particular was in poor condition: at Poland's accession to the EU, 4,600 roads needed to be upgraded to EU standards, demanding approximately €17 billion.
Another infrastructure project is the Galileo positioning system. Galileo is a proposed
Global Navigation Satellite SystemGlobal Navigation Satellite Systems is the standard generic term for satellite navigation systems that provide autonomous geo-spatial positioning with global coverage. GNSS allows small electronic receivers to determine their location to within a few metres using time signals transmitted along a...
, to be built by the EU and launched by the
European Space Agency|owner = |headquarters = Paris|spaceport = Guiana Space Centre|image = ESA LOGO.svg|size = 240px|acronym = ESA|established = 1975|administrator = Jean-Jacques Dordain...
(ESA), and is to be operational by 2010. The Galileo project was launched partly to reduce the EU's dependency on the US-operated
Global Positioning SystemThe Global Positioning System is a U.S. space-based global navigation satellite system. It provides reliable positioning, navigation, and timing services to worldwide users on a continuous basis in all weather, day and night, anywhere on or near the Earth.GPS is made up of three parts: between 24...
, but also to give more complete global coverage and allow for far greater accuracy, given the aged nature of the GPS system. It has been criticised by some due to costs, delays, and their perception of redundancy given the existence of the GPS system.
Regional development
There are substantial economical disparities across the EU. Even corrected for purchasing power, the difference between the richest and poorest regions (NUTS-2 and NUTS-3 of the
Nomenclature of Territorial Units for StatisticsThe Nomenclature of Territorial Units for Statistics is a geocode standard for referencing the subdivisions of countries for statistical purposes. The standard is developed and regulated by the European Union, and thus only covers the member states of the EU in detail...
) is about a factor of ten. On the high end Frankfurt has €71,476
PPPThe purchasing power parity theory uses the long-term equilibrium exchange rate of two currencies to equalize their purchasing power...
per capita,
ParisParis is the capital of France and the country's most populous city. It is situated on the river Seine, in northern France, at the heart of the Île-de-France region...
€68,989, and
Inner LondonInner London is the name for the group of London boroughs which form the interior part of Greater London and are surrounded by Outer London. The area was first officially defined in 1965 and for purposes such as statistics, the definition has changed over time. The terms Inner London and Central...
€67,798, while the three poorest NUTS, all in
RomaniaRomania is a country located in Southeastern and Central Europe, North of the Balkan Peninsula, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea. Almost all of the Danube Delta is located within its territory...
, are
Vaslui CountyVaslui is a county of Romania, in the historical region Moldavia, with the seat at Vaslui.-Demographics:In 2002, it had a population of 455,049 and the population density was 86/km².*Romanians - over 98%*Romas, other-Geography:...
with €3,690 PPP per capita,
Botoşani CountyBotoşani is a county of Romania, in Moldavia, with the capital city at Botoşani.-Demographics:In 2002, it had a population of 452,834 and the population density was 91/km2.*Romanians - *Russians, Ukrainians and Romas....
with €4,115, and
Giurgiu CountyGiurgiu is a county of Romania, in Muntenia, with the capital city at Giurgiu.- Demographics :In 2002, it had a population of 297,859 and the population density was 84/km².* Romanians - over 96%* Roma - 3.5%, and others.- Geography :...
with €4,277. Compared to the EU average, the United States GDP per capita is 35% higher and the Japanese GDP per capita is approximately 15% higher.
There are a number of
Structural Funds and Cohesion FundsStructural Funds and the Cohesion Fund are funds allocated by the European Union for two related purposes: support for the poorer regions of Europe and support for integrating European infrastructure especially in the transport sector...
to support development of underdeveloped regions of the EU. Such regions are primarily located in the
new Member StatesThe European Union is a geo-political entity covering a large portion of the European continent. It is founded upon numerous treaties and has undergone expansions that has taken it from 6 member states to 27, a majority of states in Europe....
of
East-Central EuropeEast-Central Europe – a term defining the countries located between German-speaking countries and Russia. Those lands are described as situated “between two”: between two worlds, between two stages, between two futures...
. Several funds provide
emergency aidEmergency management is the discipline of dealing with and avoiding risks. It is a discipline that involves preparing for disaster before it occurs, disaster response , as well as supporting, and rebuilding society after natural or human-made disasters have occurred...
, support for candidate members to transform their country to conform to the EU's standard (
PharePhare is also the name of a proposed skyscraper in Paris.The Phare programme is one of the three pre-accession instruments financed by the European Union to assist the applicant countries of Central and Eastern Europe in their preparations for joining the European Union.Originally created in 1989...
,
ISPAInstrument for Structural Policies for Pre-Accession is one of the three financial instruments of the European Union to assist the candidate countries in the preparation for accession...
, and
SAPARDSAPARD was established in June 1999 by the Council of the European Union to help countries of Central and Eastern Europe deal with the problems of the structural adjustment in their agricultural sectors and rural areas, as well as in the implementation of the acquis communautaire concerning the...
), and support to the
former USSRThe post-Soviet states, also commonly known as the Former Soviet Union or former Soviet republics, are the 15 independent nations that split off from the Union of Soviet Socialist Republics in its breakup in December 1991...
Commonwealth of Independent States
{{Redirect|EU}}
The
European Union (
EU) is an
economicA common market is a type of trade bloc which is composed of a customs union with common policies on product regulation, and freedom of movement of the factors of production and of enterprise. The goal is that the movement of capital, labour, goods, and services between the members is as easy as...
and
political unionA political union is a type of state which is composed of or created out of smaller states. Unlike a personal union, the individual states share a common government and the union is recognized internationally as a single political entity...
of 27
Member StatesA Member State of the European Union is any one of the 27 sovereign states that have acceded to the European Union since its de facto inception in 1951 as the European Coal and Steel Community . From an original membership of six states, there have been six successive enlargements, the largest...
, located primarily in
EuropeEurope is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally divided from Asia to its east by the water divide of the Ural Mountains, the Ural River, the Caspian Sea, the Caucasus Mountains , and the Black Sea to the southeast...
. Committed to
regional integrationEuropean integration is the process of political, legal, economic integration of states wholly or partially in Europe...
, the EU was established by the
Treaty of MaastrichtThe Maastricht Treaty was signed on 7 February 1992 in Maastricht, the Netherlands after final negotiations on 9 December 1991 between the members of the European Community and entered into force on 1 November 1993 during the Delors Commission. It created the European Union and led to the creation...
on 1 November 1993 upon the foundations of the pre-existing
European Economic CommunityThe European Economic Community was an international organisation that existed between 1958 and 1993 which was created to bring about economic integration between Belgium, France, Germany, Italy, Luxembourg and the Netherlands.It was...
. With almost 500 million citizens, the EU combined generates an estimated 30% share (
US$The United States dollar is the unit of currency of the United States. The U.S. dollar is normally abbreviated as the dollar sign, $, or as USD or US$ to distinguish it from other dollar-denominated currencies and from others that use the $ symbol. It is divided into 100 cents .The U.S...
18.4 trillion in 2008) of the nominal
gross world productGross world product is the total gross national product of all the countries in the world. This also equals the total gross domestic product. See measures of national income and output for more details. The per capita GWP in 2008 was approximately $10,500 US dollars...
.
The EU has developed a single market through a standardised system of laws which apply in all Member States, ensuring the
freedom of movement of people, goods, services, and capitalIn European Union law, the Four Freedoms is a common term for a set of treaty provisions, secondary legislation and court decisions, protecting the ability of goods, capital, services, people and labour to move freely within the internal market of the European Union...
. It maintains common policies on trade,
agricultureThe Common Agricultural Policy is a system of European Union agricultural subsidies and programs. It represents 48% of the EU's budget, €49.8 billion in 2006 ....
,
fisheriesThe Common Fisheries Policy is the fisheries policy of the European Union. It sets quotas for which member states are allowed to catch what amounts of each type of fish, as well as encouraging the fishing industry by various market interventions...
and regional development. Sixteen Member States have adopted a common currency, the
euroThe euro is the official currency of 16 of the 27 Member States of the European Union . The states, known collectively as the Eurozone, are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain...
, constituting the
EurozoneThe eurozone is an economic and monetary union of 16 European Union member states which have adopted the euro currency as their sole legal tender. It currently consists of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal,...
. The EU has developed a limited role in foreign policy, having representation at the
WTOThe World Trade Organization is an international organization designed by its founders to supervise and liberalize international capital trade. The organization officially commenced on January 1, 1995 under the Marrakesh Agreement, replacing the General Agreements on Tariffs and Trade , which...
,
G8The Group of Eight is a forum, created by France in 1975, for governments of the six richest countries in the world: France, Germany, Italy, Japan, the United Kingdom, and the United States. In 1976, Canada joined the group...
, G20 and at the
UNThe United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and the achieving of world peace...
. It enacts legislation in justice and home affairs, including the abolition of passport controls between many Member States which form part of the
Schengen AreaThe Schengen Area is a group of twenty-five European countries which have abolished all border controls between each other. It originates from the eponymous agreement signed in the Luxembourgish town of Schengen in 1985, which has since been absorbed into the European Union...
.
As an
international organisationAn intergovernmental organization, sometimes rendered as an international governmental organization and both abbreviated as IGO, is an organization comprised primarily of sovereign states , or of other intergovernmental organization...
, the EU operates through a hybrid system of
supranationalismSupranationalism is a method of decision-making in multi-national political communities, wherein power is transferred to an authority broader than governments of member states. Because decisions in some supranational structures are taken by majority votes, it is possible for a member-state in those...
and
intergovernmentalismThe term Intergovernmentalism can mean different things:-A decision-making method:It is usually said that intergovernmentalism refers to the decision-making methods in international organisations, where power is possessed by the member states and decisions are often but not always made by unanimity...
. In certain areas, it depends upon agreement between the Member States; in others, supranational bodies are able to make sovereign decisions without unanimity. Important institutions and bodies of the EU include the
European CommissionThe European Commission acts as an executive of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union.The Commission operates in the method of cabinet government, with 27...
, the
Council of the European UnionThe Council of the European Union is the principal decision-making institution of the European Union . It is often informally called the Council of Ministers or just the Council, the name used in the treaties; it is also called Consilium as a Latin-language compromise...
, the
European CouncilThe European Council is the highest political body of the European Union. It comprises the heads of state or government of the Union's member states along with the President of the European Commission...
, the
European Court of JusticeThe European Court of Justice , is the highest court in the European Union in matters of European Union law. It is tasked with interpreting EU law and ensuring its equal application across all EU member states. The Court was established in 1952 and is based in Luxembourg...
, and the
European Central BankThe European Central Bank is one of the world's most important central banks, responsible for monetary policy covering the 16 member States of the Eurozone. It was established by the European Union in 1998 with its headquarters in Frankfurt, Germany.-History:Technically the predecessor to the ECB...
. The
European ParliamentThe European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union , it forms the bicameral legislative branch of the Union's institutions and has been described as one of the most powerful legislatures in the world...
is elected every five years by Member States' citizens, to whom the
citizenship of the European UnionCitizenship of the European Union was introduced by the Maastricht Treaty signed in 1992. It exists alongside national citizenship and provides additional rights to nationals of Member States of the European Union.- Who is an EU citizen? :...
is guaranteed.
The EU traces many of its origins to the
European Coal and Steel CommunityThe European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for European democracy and the modern-day developments of the European Union...
formed among six countries in 1951 and the Treaty of Rome in 1957. Since then the union has grown in size through the accession of new countries, and new policy areas have been added to the remit of the EU's institutions.
History
{{Main|History of the European Union}}
After the end of the
Second World WarWorld War II, or the Second World War , was a global military conflict which involved a majority of the world's nations, including all great powers, organized into two opposing military alliances: the Allies and the Axis...
, moves towards European integration were seen by many as an escape from the extreme forms of
nationalismNationalism is an ideology, a sentiment, a form of culture, or a social movement that focuses on the nation. It is a type of collectivism emphasizing the collective of a specific nation...
which had devastated the continent. One such attempt to unite Europeans was the
European Coal and Steel CommunityThe European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for European democracy and the modern-day developments of the European Union...
which, while having the modest aim of centralised control of the previously national coal and
steel industriesSteel is an alloy consisting mostly of iron, with a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most cost-effective alloying material for iron, but various other alloying elements are used such as manganese, chromium, vanadium, and tungsten...
of its Member States, was declared to be "a first step in the federation of Europe". The originators and supporters of the Community include
Jean MonnetJean Omer Marie Gabriel Monnet is regarded by many as a chief architect of European Unity. Never elected to public office, Monnet worked behind the scenes of American and European governments as a well-connected pragmatic internationalist.-Early years:Monnet was born in Cognac, Charente, into a...
,
Robert SchumanRobert Schuman was a noted French statesman. Schuman was a Christian Democrat and an independent political thinker and activist...
,
Paul Henri SpaakPaul Henri Charles Spaak was a Belgian Socialist politician and statesman.-Early life:He was born in Schaerbeek to Paul Spaak and Marie Janson...
and
Alcide de GasperiAlcide De Gasperi was an Italian statesman and politician and founder of the Christian Democratic Party. From 1945 to 1953 he was the prime minister of eight successive coalition governments. His eight-year rule remains a landmark of political longevity for a leader in modern Italian politics...
. The founding members of the Community were
BelgiumThe Kingdom of Belgium is a country in northwest Europe. It is a founding member of the European Union and hosts its headquarters, as well as those of other major international organizations, including NATO...
,
FranceFrance , officially the French Republic , is a country located in Western Europe, with several overseas islands and territories located on other continents. Metropolitan France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean...
,
ItalyItaly , officially the Italian Republic , is a country located on the Italian Peninsula in Southern Europe and on the two largest islands in the Mediterranean Sea, Sicily and Sardinia. Italy shares its northern, Alpine boundary with France, Switzerland, Austria and Slovenia...
,
LuxembourgLuxembourg , officially the Grand Duchy of Luxembourg , is a small, landlocked country in western Europe, bordered by Belgium, France, and Germany...
, the
NetherlandsThe Netherlands is a country in Northwestern Europe, constituting the major portion of the Kingdom of the Netherlands. It is a parliamentary democratic constitutional monarchy. The Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east...
and
West GermanyWest Germany is a common English name for the period of the Federal Republic of Germany between its' formation in May 1949 to German reunification in October 1990, when the German Democratic Republic was dissolved and the five states on its territory joined the Federal Republic of Germany,...
.
In 1957, these six countries signed the Treaties of Rome which extended the earlier cooperation within the
European Coal and Steel CommunityThe European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for European democracy and the modern-day developments of the European Union...
and created the
European Economic CommunityThe European Economic Community was an international organisation that existed between 1958 and 1993 which was created to bring about economic integration between Belgium, France, Germany, Italy, Luxembourg and the Netherlands.It was...
, (EEC) establishing a
customs unionThe European Union Customs Union is a customs union which consists of all European Union member states. No customs are levied on goods travelling within the customs union and — unlike a free trade area — members of the customs union impose a common external tariff on all goods entering...
and the
European Atomic Energy CommunityThe European Atomic Energy Community is an international organisation which is semi-independent of, but completely controlled by, the European Community pillar of the European Union....
(Euratom) for cooperation in developing
nuclear energyNuclear energy is released by the splitting or merging together of the nuclei of atom. The conversion of nuclear mass to energy is consistent with the mass-energy equivalence formula ΔE = Δm.c², in which ΔE = energy release, Δm = mass defect, and c = the speed of light in a vacuum...
. In 1967 the
Merger TreatyThe Merger Treaty was a European treaty which combined the executive bodies of the European Coal and Steel Community , European Atomic Energy Community and the European Economic Community into a single institutional structure.The treaty was signed in Brussels on 8 April 1965 and came into force...
created a single set of institutions for the three communities, which were collectively referred to as the
European CommunitiesThe European Communities were three international organisations that were governed by the same set of institutions...
(EC), although commonly just as the
European Community.
In 1973 the Communities enlarged to include
DenmarkDenmark is a Scandinavian country in Northern Europe and the senior member of the Kingdom of Denmark. It is the southernmost of the Nordic countries; southwest of Sweden and south of Norway, and it is bordered to the south by Germany. Denmark borders both the Baltic and the North Sea...
,
IrelandIreland is a country in north-western Europe. The modern sovereign state occupies about five-sixths of the island of Ireland, which was partitioned on 3 May 1921. It is a parliamentary democracy and a republic...
and the
United KingdomThe United Kingdom of Great Britain and Northern Ireland is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of Ireland, and many small islands...
.
NorwayNorway , officially the Kingdom of Norway, is a country in Northern Europe occupying the western portion of the Scandinavian Peninsula, as well as Jan Mayen and the Arctic archipelago of Svalbard under the Spitsbergen Treaty...
had negotiated to join at the same time but Norwegian voters rejected membership in a referendum and so Norway remained outside. In 1979 the
first direct, democratic electionsThe 1979 European elections were parliamentary elections held across all then-9 European Community member states. They were the first European elections to be held, allowing citizens to elect 410 MEPs to the European Parliament, and also the first international election in history.Seats in the...
to the European Parliament were held.
GreeceGreece , officially the Hellenic Republic , is a country in southeastern Europe, situated on the southern end of the Balkan Peninsula....
joined in 1981, and
SpainSpain , officially the Kingdom of Spain , is a country located in southwestern Europe on the Iberian Peninsula.
[The Spanish constitution does not establish any official denomination of the country, even though España , Estado español and Nación española are used interchangeably...]
and
PortugalPortugal , officially the Portuguese Republic , is a country located in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of mainland Europe and is bordered by the Atlantic Ocean to the west and south and by Spain to the north and east...
in 1986. In 1985 the
Schengen AgreementThe Schengen Agreement is a treaty signed between five of the ten member states of the European Community in 1985. It was supplemented by the Convention implementing the Schengen Agreement some five years later...
led the way toward the creation of
open bordersBorder controls are measures used by a country to monitor or regulate its borders.The control of the flow of many people, animals and goods across a border may be controlled by government Customs services. Security is enforced by various kinds of Border Guards and Coast Guards...
without
passportA passport is a document, issued by a national government, which certifies, for the purpose of international travel, the identity and nationality of its holder. The elements of identity are name, date of birth, sex, and place of birth...
controls between most Member States and some non-Member States. In 1986 the European flag began to be used by the Community and the
Single European ActThe Single European Act was the first major revision of the 1957 Treaty of Rome. The Act set the European Community an objective of establishing a Common Market by 31 December 1992, and codified European Political Cooperation, the forerunner of the European Union's Common Foreign and Security Policy...
was signed.
In 1990, after the fall of the
Iron CurtainThe concept of the Iron Curtain symbolized the ideological and physical boundary dividing Europe into two separate areas from the end of World War II in 1945 until the end of the Cold War in 1991...
, the former East Germany became part of the Community as part of a newly united Germany. With enlargement toward
Eastern and Central EuropeEast-Central Europe – a term defining the countries located between German-speaking countries and Russia. Those lands are described as situated “between two”: between two worlds, between two stages, between two futures...
on the agenda, the
Copenhagen criteriaThe Copenhagen criteria are the rules that define whether a country is eligible to join the European Union. The criteria require that a state have the institutions to preserve democratic governance and human rights, have a functioning market economy, and accept the obligations and intent of the EU...
for candidate members to join the European Union were agreed.
The European Union was formally established when the
Maastricht TreatyThe Maastricht Treaty was signed on 7 February 1992 in Maastricht, the Netherlands after final negotiations on 9 December 1991 between the members of the European Community and entered into force on 1 November 1993 during the Delors Commission. It created the European Union and led to the creation...
came into force on 1 November 1993, and in 1995
AustriaAustria , officially the Republic of Austria , is a landlocked country of roughly 8.3 million people in Central Europe. It borders both Germany and the Czech Republic to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west...
,
SwedenSweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe...
and
FinlandFinland , officially the Republic of Finland
, is a Nordic country and democracy situated in the Fennoscandian region of northern Europe. It borders Sweden on the west, Russia on the east, and Norway on the north, while Estonia lies to its south across the Gulf of Finland...
joined the newly established EU. In 2002,
euroThe euro is the official currency of 16 of the 27 Member States of the European Union . The states, known collectively as the Eurozone, are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain...
notes and coins replaced national currencies in 12 of the Member States. Since then, the
eurozoneThe eurozone is an economic and monetary union of 16 European Union member states which have adopted the euro currency as their sole legal tender. It currently consists of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal,...
has increased to encompass sixteen countries, with Slovakia joining the eurozone on 1 January 2009. In 2004, the EU saw
its biggest enlargement to dateThe 2004 enlargement of the European Union was the largest single expansion of the European Union , both in terms of territory and population, yet was the smallest in terms of gross domestic product ....
when
MaltaMalta , officially the Republic of Malta , is a densely populated developed European country in the European Union. The Southern European island nation is an archipelago that includes the inhabited islands of Malta, Gozo and Comino, along with a number of smaller, uninhabited islands...
,
CyprusCyprus , officially the Republic of Cyprus , is a Eurasian island country situated in the eastern Mediterranean, south of Turkey and west of Syria and Lebanon....
,
SloveniaSlovenia , officially the Republic of Slovenia , is a country in Central Europe bordering Italy to the west, the Adriatic Sea to the southwest, Croatia to the south and east, Hungary to the northeast, and Austria to the north...
,
EstoniaEstonia , officially the Republic of Estonia , is a country in Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by the Russian Federation...
,
LatviaLatvia , officially the Republic of Latvia is a country in the Baltic region of Northern Europe. It is bordered to the north by Estonia , to the south by Lithuania , to the east by the Russian Federation , and to the southeast by Belarus . Across the Baltic Sea to the west lies Sweden...
,
LithuaniaLithuania , officially the Republic of Lithuania is a country in Northern Europe, the southernmost of the three Baltic states. Situated along the southeastern shore of the Baltic Sea, it shares borders with Latvia to the north, Belarus to the southeast, Poland, and the Russian exclave of...
,
PolandPoland , officially the Republic of Poland , is a country in Central Europe . Poland is bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
, the
Czech RepublicThe Czech Republic is a country in Central Europe that is sometimes considered to be Eastern European. The country borders Poland to the northeast, Germany to the west and northwest, Austria to the south and Slovakia to the east. The capital and largest city is Prague...
,
SlovakiaThe Slovak Republic is a landlocked country in Eastern Europe with a population of over five million and an area of about . Slovakia borders the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south. The largest city is its capital, Bratislava...
, and
HungaryHungary , in English officially the Republic of Hungary , is a landlocked country in the Carpathian Basin of Central Europe, bordered by Austria, Slovakia, Ukraine, Romania, Serbia, Croatia, and Slovenia. Its capital is Budapest. Hungary is a member of OECD, NATO, EU, V4 and is a Schengen state...
joined the Union.
On 1 January 2007,
RomaniaRomania is a country located in Southeastern and Central Europe, North of the Balkan Peninsula, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea. Almost all of the Danube Delta is located within its territory...
and
BulgariaBulgaria , officially the Republic of Bulgaria , is a country in the Balkans in south-eastern Europe. Bulgaria borders five other countries: Romania to the north , Serbia and the Republic of Macedonia to the west, and Greece and Turkey to the south...
became the EU's newest members and
SloveniaSlovenia , officially the Republic of Slovenia , is a country in Central Europe bordering Italy to the west, the Adriatic Sea to the southwest, Croatia to the south and east, Hungary to the northeast, and Austria to the north...
adopted the euro. In December of that year European leaders signed the
Lisbon TreatyThe Treaty of Lisbon of 1668 was a peace treaty between Portugal and Spain, concluded at Lisbon on 13 February 1668, through the mediation of England, in which Spain recognized Portuguese independence.-The principals:...
which was intended to replace the earlier, failed
European ConstitutionThe Treaty establishing a Constitution for Europe , commonly referred to as the European Constitution, was an international treaty intended to create a constitution for the European Union...
, which never came into force after being rejected by French and Dutch voters. However, uncertainty clouded the prospects of the Lisbon Treaty's coming into force as result of its
rejection by Irish votersThe Twenty-eighth Amendment of the Constitution Bill 2008 was a proposal to amend the Constitution of Ireland in order to enable ratification of the Treaty of Lisbon of the European Union, so it could be enacted as scheduled on 1 January 2009...
in June 2008. On 2 October 2009 the Irish voters passed the Lisbon Treaty with 67% of the votes ratifying the treaty from a total
voter turnoutVoter turnout is the percentage of eligible voters who cast a ballot in an election. After increasing for many decades, there has been a trend of decreasing voter turnout in most established democracies since the 1960s. In general, low turnout may be due to disenchantment, indifference, or...
of 58% of the electorate. On 17 July 2009, the Parliament of
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
agreed to formally apply for EU membership and to begin talks for an agreement to be put to a referendum to the Icelandic voters. On 23 July 2009 the Icelandic foreign minister formally submitted Iceland's application for membership to his Swedish counterpart (Sweden held the EU Presidency on this date).
Member States
{{Main|Member State of the European Union|Enlargement of the European Union}}
{{European Union Labelled Map (blue)}}
The European Union is composed of 27
sovereignA sovereign state is a political association with effective internal and external sovereignty over a geographic area and population which is not dependent on, or subject to any other power or state...
Member States:
AustriaAustria , officially the Republic of Austria , is a landlocked country of roughly 8.3 million people in Central Europe. It borders both Germany and the Czech Republic to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the west...
,
BelgiumThe Kingdom of Belgium is a country in northwest Europe. It is a founding member of the European Union and hosts its headquarters, as well as those of other major international organizations, including NATO...
,
BulgariaBulgaria , officially the Republic of Bulgaria , is a country in the Balkans in south-eastern Europe. Bulgaria borders five other countries: Romania to the north , Serbia and the Republic of Macedonia to the west, and Greece and Turkey to the south...
,
CyprusCyprus , officially the Republic of Cyprus , is a Eurasian island country situated in the eastern Mediterranean, south of Turkey and west of Syria and Lebanon....
, the
Czech RepublicThe Czech Republic is a country in Central Europe that is sometimes considered to be Eastern European. The country borders Poland to the northeast, Germany to the west and northwest, Austria to the south and Slovakia to the east. The capital and largest city is Prague...
,
DenmarkDenmark is a Scandinavian country in Northern Europe and the senior member of the Kingdom of Denmark. It is the southernmost of the Nordic countries; southwest of Sweden and south of Norway, and it is bordered to the south by Germany. Denmark borders both the Baltic and the North Sea...
,
EstoniaEstonia , officially the Republic of Estonia , is a country in Northern Europe. It is bordered to the north by the Gulf of Finland, to the west by the Baltic Sea, to the south by Latvia , and to the east by the Russian Federation...
,
FinlandFinland , officially the Republic of Finland
, is a Nordic country and democracy situated in the Fennoscandian region of northern Europe. It borders Sweden on the west, Russia on the east, and Norway on the north, while Estonia lies to its south across the Gulf of Finland...
,
FranceFrance , officially the French Republic , is a country located in Western Europe, with several overseas islands and territories located on other continents. Metropolitan France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean...
,
GermanyGermany , officially the Federal Republic of Germany , is a country in Central Europe. It is bordered to the north by the North Sea, Denmark, and the Baltic Sea; to the east by Poland and the Czech Republic; to the south by Austria and Switzerland; and to the west by France, Luxembourg, Belgium,...
,
GreeceGreece , officially the Hellenic Republic , is a country in southeastern Europe, situated on the southern end of the Balkan Peninsula....
,
HungaryHungary , in English officially the Republic of Hungary , is a landlocked country in the Carpathian Basin of Central Europe, bordered by Austria, Slovakia, Ukraine, Romania, Serbia, Croatia, and Slovenia. Its capital is Budapest. Hungary is a member of OECD, NATO, EU, V4 and is a Schengen state...
,
IrelandIreland is a country in north-western Europe. The modern sovereign state occupies about five-sixths of the island of Ireland, which was partitioned on 3 May 1921. It is a parliamentary democracy and a republic...
,
ItalyItaly , officially the Italian Republic , is a country located on the Italian Peninsula in Southern Europe and on the two largest islands in the Mediterranean Sea, Sicily and Sardinia. Italy shares its northern, Alpine boundary with France, Switzerland, Austria and Slovenia...
,
LatviaLatvia , officially the Republic of Latvia is a country in the Baltic region of Northern Europe. It is bordered to the north by Estonia , to the south by Lithuania , to the east by the Russian Federation , and to the southeast by Belarus . Across the Baltic Sea to the west lies Sweden...
,
LithuaniaLithuania , officially the Republic of Lithuania is a country in Northern Europe, the southernmost of the three Baltic states. Situated along the southeastern shore of the Baltic Sea, it shares borders with Latvia to the north, Belarus to the southeast, Poland, and the Russian exclave of...
,
LuxembourgLuxembourg , officially the Grand Duchy of Luxembourg , is a small, landlocked country in western Europe, bordered by Belgium, France, and Germany...
,
MaltaMalta , officially the Republic of Malta , is a densely populated developed European country in the European Union. The Southern European island nation is an archipelago that includes the inhabited islands of Malta, Gozo and Comino, along with a number of smaller, uninhabited islands...
, the
NetherlandsThe Netherlands is a country in Northwestern Europe, constituting the major portion of the Kingdom of the Netherlands. It is a parliamentary democratic constitutional monarchy. The Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east...
,
PolandPoland , officially the Republic of Poland , is a country in Central Europe . Poland is bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
,
PortugalPortugal , officially the Portuguese Republic , is a country located in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of mainland Europe and is bordered by the Atlantic Ocean to the west and south and by Spain to the north and east...
,
RomaniaRomania is a country located in Southeastern and Central Europe, North of the Balkan Peninsula, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea. Almost all of the Danube Delta is located within its territory...
,
SlovakiaThe Slovak Republic is a landlocked country in Eastern Europe with a population of over five million and an area of about . Slovakia borders the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south. The largest city is its capital, Bratislava...
,
SloveniaSlovenia , officially the Republic of Slovenia , is a country in Central Europe bordering Italy to the west, the Adriatic Sea to the southwest, Croatia to the south and east, Hungary to the northeast, and Austria to the north...
,
SpainSpain , officially the Kingdom of Spain , is a country located in southwestern Europe on the Iberian Peninsula.
[The Spanish constitution does not establish any official denomination of the country, even though España , Estado español and Nación española are used interchangeably...]
,
SwedenSweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe...
, and the
United KingdomThe United Kingdom of Great Britain and Northern Ireland is a sovereign state located off the northwestern coast of continental Europe. It is an island country, spanning an archipelago including Great Britain, the northeastern part of Ireland, and many small islands...
.
Only
six of theseThe Inner Six, or simply The Six, were the six founding member-states of the European Communities. This was in contrast to the outer seven who formed the European Free Trade Association rather than be involved in supranational European integration .-History:The inner six are those who responded to...
– France, (then-
West) GermanyWest Germany is a common English name for the period of the Federal Republic of Germany between its' formation in May 1949 to German reunification in October 1990, when the German Democratic Republic was dissolved and the five states on its territory joined the Federal Republic of Germany,...
, Italy, and the three already integrated
BeneluxThe Benelux is a union in Western Europe that comprises three neighboring countries, Belgium, the Netherlands, and Luxembourg , which lie in the north western European region between France and Germany...
countries;
Belgium,
Netherlands, and
Luxembourg – were members at the start, with membership having grown as countries willingly accede to the
treatiesThe Treaties of the European Union are a set of international treaties between the Union's member states which sets out the constitutional basis of the European Union...
and by doing so, pool sovereignty in exchange for representation in the
institutionsThere are currently five institutions of the European Union which govern the Union. They are outlined in the treaties of the European Union in the following order: the European Parliament, the Council of the European Union ; the European Commission, the European Court of Justice and the European...
. To join the EU a country must meet the
Copenhagen criteriaThe Copenhagen criteria are the rules that define whether a country is eligible to join the European Union. The criteria require that a state have the institutions to preserve democratic governance and human rights, have a functioning market economy, and accept the obligations and intent of the EU...
, defined at the 1993 Copenhagen European Council. These require a stable democracy that respects
human rightsHuman rights refer to the "basic rights and freedoms to which all humans are entitled." Examples of rights and freedoms which have come to be commonly thought of as human rights include civil and political rights, such as the right to life and liberty, freedom of expression, and equality before the...
and the
rule of lawThe rule of law, also called supremacy of law, means that the law is above everyone and it applies to everyone. Whether governor or governed, rulers or ruled, no one is above the law, no one is exempted from the law, and no one can grant exemption to the application of the law.Rule of law is a...
; a functioning
market economyA market economy is economy based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand....
capable of competition within the EU; and the acceptance of the obligations of membership, including EU law. Evaluation of a country's fulfilment of the criteria is the responsibility of the
European CouncilThe European Council is the highest political body of the European Union. It comprises the heads of state or government of the Union's member states along with the President of the European Commission...
. The current framework does not specify how a country could exit the Union (although
GreenlandGreenland is an autonomous constituent country within the Kingdom of Denmark located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago...
, a territory of Denmark, withdrew in 1985), but the proposed
Treaty of LisbonThe Treaty of Lisbon of 1668 was a peace treaty between Portugal and Spain, concluded at Lisbon on 13 February 1668, through the mediation of England, in which Spain recognized Portuguese independence.-The principals:...
contains a formal procedure for withdrawing.
There are three official candidate countries,
CroatiaCroatia , officially the Republic of Croatia , is a country in southeast Europe, at the crossroads of the Pannonian Plain, the Balkans, and the Mediterranean Sea. Its capital is Zagreb...
,
MacedoniaMacedonia , officially the Republic of Macedonia , is a country in the central Balkan peninsula in southeastern Europe. It is one of the successor states of the former Yugoslavia, from which it declared independence in 1991...
and
TurkeyTurkey , known officially as the Republic of Turkey
, is a Eurasian country that stretches across the Anatolian peninsula in Western Asia and Thrace in the Balkan region of southeastern Europe...
.
AlbaniaAlbania , officially the Republic of Albania , is a Mediterranean country in South Eastern Europe. It is bordered by Montenegro to the north, Kosovo to the northeast, Macedonia to the east and Greece to the south-east...
,
Bosnia and HerzegovinaBosnia and Herzegovina Bosnia and Herzegovina Bosnia and Herzegovina ( or (Bosnian, Croatian, Serbian Latin: Bosna i Hercegovina; Serbian Cyrillic: Босна и Херцеговина) is a country in Southeast Europe, on the Balkan Peninsula...
,
MontenegroMontenegro , is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast, Kosovo to the east and Albania to the south...
,
SerbiaSerbia , officially the Republic of Serbia , is a country located in both Central and Southeastern Europe. Its territory covers the southern part of the Pannonian Plain and central part of the Balkans...
and
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
are officially recognised as potential candidates.
KosovoKosovo is a disputed territory in the Balkans. Its majority is governed by the partially-recognised Republic of Kosovo , a self-declared independent state which has de facto control over the territory; the exceptions are some Serb enclaves...
is also listed as a potential candidate but the European Commission does not list it as an independent country because not all Member States recognise it as an independent country separate from Serbia.
Four
Western EuropeWestern Europe is the collection of countries in the westernmost region of Europe, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a cultural entity—the region lying west of Central Europe...
an countries that have chosen not to join the EU have partly committed to the EU's economy and regulations:
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
, which has now applied for membership,
LiechtensteinThe Principality of Liechtenstein is a doubly landlocked alpine microstate in Western Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over 160 km² and it has an estimated population of 35,000...
and
NorwayNorway , officially the Kingdom of Norway, is a country in Northern Europe occupying the western portion of the Scandinavian Peninsula, as well as Jan Mayen and the Arctic archipelago of Svalbard under the Spitsbergen Treaty...
, which are a part of the
single marketA common market is a type of trade bloc which is composed of a customs union with common policies on product regulation, and freedom of movement of the factors of production and of enterprise. The goal is that the movement of capital, labour, goods, and services between the members is as easy as...
through the
European Economic AreaThe European Economic Area was established on 1 January 1994 following an agreement between member states of the European Free Trade Association ,the European Community , and all member states of the European Union...
, and
SwitzerlandSwitzerland , officially the Swiss Confederation , is a federal republic consisting of 26 states named cantons, with Bern as the seat of the federal authorities...
, which has similar ties through
bilateral treatiesSwitzerland is a member of the European Free Trade Association . It took part in negotiating the European Economic Area agreement with the European Union. It signed the agreement on 2 May 1992, and submitted an application for accession to the EU on 20 May 1992. However, a Swiss referendum held on...
. The relationships of the
European microstatesThere are a number of microstates in Europe; due to their size they are often closely linked with another larger state. Currently, the European microstates have special relations with the European Union....
,
AndorraAndorra , officially the Principality of Andorra , also called the Principality of the Valleys of Andorra, is a small landlocked country in southwestern Europe, located in the eastern Pyrenees mountains and bordered by Spain and France. It is the sixth smallest nation in Europe having an area of ...
,
MonacoMonaco , officially the Principality of Monaco , is a small sovereign city-state located in South Western Europe on the northern central coast of the Mediterranean Sea, having a land border on three sides only with France, and being about away from Italy. Its size is just under 2 km² with an...
,
San MarinoThe Most Serene Republic of San Marino is a country situated in the Apennine Mountains. It is a landlocked enclave, completely surrounded by Italy. Its size is just over 60 km² with an estimated population of almost 30,000. Its capital is the City of San Marino...
and the
VaticanVatican City , officially the State of the Vatican City , is a landlocked sovereign city-state whose territory consists of a walled enclave within the city of Rome, the capital city of Italy...
include the use of the
euroThe euro is the official currency of 16 of the 27 Member States of the European Union . The states, known collectively as the Eurozone, are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain...
and other areas of co-operation.
Geography
{{Main|Geography of the European Union}}
The territory of the EU consists of the combined territories of its 27 Member States with some exceptions, outlined below. The territory of the EU is not the same as that of
EuropeEurope is traditionally reckoned as one of seven continents. Physiographically, however, it is the northwestern peninsula of the larger landmass known as Eurasia : Asia occupies the eastern bulk of this continuous landmass and all share a common continental shelf...
, as parts of the continent are outside the EU, such as
SwitzerlandSwitzerland , officially the Swiss Confederation , is a federal republic consisting of 26 states named cantons, with Bern as the seat of the federal authorities...
,
NorwayNorway , officially the Kingdom of Norway, is a country in Northern Europe occupying the western portion of the Scandinavian Peninsula, as well as Jan Mayen and the Arctic archipelago of Svalbard under the Spitsbergen Treaty...
, European
RussiaRussia , officially known as both Russia and the Russian Federation , is a country in northern Eurasia . It is a semi-presidential republic, comprising 83 federal subjects...
, and (if considered part of Europe as it lies across both the North American and the European continental plates)
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
. Some parts of Member States are not part of the EU, despite forming part of the European continent (for example the
Isle of ManThe Isle of Man , or Mann , is a self-governing British Crown dependency, located in the Irish Sea between the islands of Britain and Ireland. The head of state is Queen Elizabeth II, who holds the title of Lord of Mann. The Crown is represented by a Lieutenant Governor...
and
Channel IslandsThe Channel Islands are an archipelago in the English Channel, off the French coast of Normandy. They include two separate bailiwicks: the Bailiwick of Guernsey and the Bailiwick of Jersey...
(two Crown Dependencies), and the
Faroe IslandsThe Faroe Islands, sometimes Faeroe Islands, Faroe, or Faeroes are an island group situated between the Norwegian Sea and the North Atlantic Ocean, approximately halfway between Scotland and Iceland...
, a territory of Denmark). The island country of
CyprusCyprus , officially the Republic of Cyprus , is a Eurasian island country situated in the eastern Mediterranean, south of Turkey and west of Syria and Lebanon....
, a member of the EU, is closer to
TurkeyTurkey , known officially as the Republic of Turkey
, is a Eurasian country that stretches across the Anatolian peninsula in Western Asia and Thrace in the Balkan region of southeastern Europe...
than to
mainland EuropeContinental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas. Notably, in British and Irish English usage, the term means Europe excluding the United Kingdom, the Isle of Man, the Channel...
and is often considered part of
AsiaAsia is the world's largest and most populous continent, located in the eastern and northern hemispheres. It covers 8.6% of the earth's total surface area and with approximately 4 billion people, it hosts 60% of the world's current human population.Asia is traditionally defined as part of the...
.
Several territories associated with Member States that are outside geographic Europe are also not part of the EU (such as
GreenlandGreenland is an autonomous constituent country within the Kingdom of Denmark located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago...
,
ArubaAruba is a -long island of the Lesser Antilles in the southern Caribbean Sea, north of the Paraguaná Peninsula, Falcón State, Venezuela. Together with Bonaire and Curaçao, it forms a group referred to as the ABC islands of the Leeward Antilles, the southern island chain of the Lesser Antilles.An...
, the
Netherlands AntillesThe Netherlands Antilles , previously known as the Netherlands West Indies or Dutch Antilles/West Indies, is part of the Lesser Antilles and consists of two groups of islands in the Caribbean Sea: Curaçao and Bonaire, just off the Venezuelan coast, and Sint Eustatius, Saba and Sint Maarten, located...
, and all the non-European
British overseas territoriesThe British overseas territories are fourteen territories that are under the sovereignty of the United Kingdom, but which do not form part of the United Kingdom itself....
). Some overseas territories are part of the EU even though geographically not part of Europe, such as the
AzoresThe Azores is a Portuguese archipelago in the Atlantic Ocean, about from Lisbon and about from the east coast of North America. The two westernmost Azorean islands actually lie on the North American plate...
, the
Canary IslandsThe Canary Islands are a Spanish archipelago which, in turn, forms one of the Spanish Autonomous Communities and an Outermost Region of the European Union. The archipelago is located just off the northwest coast of mainland Africa, 100 km west of the disputed border between Morocco and the...
,
MadeiraMadeira is a Portuguese archipelago in the mid Atlantic Ocean that lies between and . It is one of the Autonomous regions of Portugal, with Madeira Island and Porto Santo Island being the only inhabited islands...
,
LampedusaThe Mediterranean island of Lampedusa belongs to Italy and is the largest of the Pelagie Islands, situated 205 km from Sicily and 113 km from Tunisia. Its population subsists on fishing, agriculture and tourism...
,
French GuianaFrench Guiana is an overseas department of France, located on the northern coast of South America. It has borders with two nations, Brazil and Suriname. Like the other DOMs, French Guiana is also an overseas region of France, one of the 26 regions of France. Its currency is the euro...
,
GuadeloupeGuadeloupe is an archipelago located in the eastern Caribbean Sea at , with a land area of 1,628 square kilometres . It is an overseas department of France. As with the other overseas departments, Guadeloupe is also one of the twenty-six regions of France and an integral part of the Republic...
,
MartiniqueMartinique is an island in the eastern Caribbean Sea, with a land area of . It is an overseas department of France. To the northwest lies Dominica, to the south St Lucia, and to the southeast Barbados. As with the other overseas departments, Martinique is also one of the twenty-six regions of...
and
RéunionRéunion is an island located in the Indian Ocean, east of Madagascar, about south west of Mauritius, the nearest island.Administratively, Réunion is one of the overseas départements of France...
,
CeutaCeuta is an autonomous city of Spain located on the North African side of the Strait of Gibraltar, on the Mediterranean, which separates it from the Spanish mainland. The area of Ceuta is approximately ....
and
MelillaMelilla is an autonomous Spanish city located on the Mediterranean, on the north coast of North Africa. It was regarded as a part of Málaga province prior to 14 March 1995, when the city's Statute of Autonomy was passed.Melilla was a free port before Spain joined the European Union. As of 2008 it...
. As well, although being technically part of the EU, EU law is suspended in Northern Cyprus as it is under the
de facto control of the
Turkish Republic of North Cyprus, a self-proclaimed state that is recognised only by Turkey.
The EU's Member States cover an area of {{convert|4422773|km2|sqmi|0}}. The EU is larger in area than all but
six countries, and its highest peak is
Mont BlancMont Blanc or Monte Bianco is the highest mountain in the Alps and in Western Europe. It rises above sea level and is ranked 11th in the world in topographic prominence...
in the
Graian AlpsThe Graian Alps are a mountain range in the western part of the Alps. They are located in France , Italy , and Switzerland...
, {{convert|4807|m|ft|0}}
above sea levelThe term above mean sea level refers to the elevation or altitude of any object, relative to the average sea level datum. AMSL is used extensively in radio by engineers to determine the coverage area a station will be able to reach...
. The landscape, climate, and economy of the EU are influenced by its coastline, which is {{convert|65993|km|mi|0}} long. The EU has the world's second-longest coastline, after
CanadaCanada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean...
. The combined Member States share
land bordersThis is a list of countries bordering the European Union, and its predecessor the European Community, both at its current geographical extent and after all previous rounds of enlargement.- 2007 to present :...
with 21 non-Member States for a total of {{convert|12441|km|mi|0}}, the fifth-longest border in the world.
Including the overseas territories of Member States, the EU experiences most
types of climateThe Köppen climate classification is one of the most widely used climate classification systems. It was first published by the Russian climatologist Wladimir Köppen in 1884, with several later modifications by Köppen himself notably in 1918 and 1936...
from
ArcticRegions with a polar climate are characterized by a lack of warm summers .The tundra covers over 20% of the earth...
to
tropicalA tropical climate is a kind of climate typical in the tropics. Köppen's widely-recognized scheme of climate classification defines it as a non-arid climate in which all twelve months have mean temperatures above .- Examples of tropical climates :...
, rendering meteorological averages for the EU as a whole meaningless. The majority of the population lives in areas with a
Mediterranean climateA hi Mediterranean climate resembles the climate of the lands in the Mediterranean Basin, which includes most of the area with this climate type worldwide...
(
Southern EuropeThe term Southern Europe, at its most general definition, is used to mean "all countries in the south of Europe". However, the concept, at different times, has had different meanings, providing additional political, linguistic and cultural context to the definition in addition to the typical...
), a temperate
maritime climateAn oceanic climate is the climate typically found along the west coasts at the middle latitudes of all the world's continents, and in southeastern Australia...
(
Western EuropeWestern Europe is the collection of countries in the westernmost region of Europe, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a cultural entity—the region lying west of Central Europe...
), or a warm summer continental or
hemiborealHemiboreal means halfway between the temperate and subarctic zones. The term is most frequently used in the context of ecosystems....
climate (
Eastern EuropeEastern Europe is a region lying in the Eastern part of Europe. The term is highly context-dependent and there are "almost as many definitions of Eastern Europe as there are scholars of the region"...
).
Governance
{{Main|Politics of the European Union}}
The EU's work is divided into three areas of responsibility, called
pillarsThe Treaty of Maastricht, which established the European Union, divided EU policies into three main areas called pillars.- The three pillars :# The first or 'Community' pillar concerns economic, social and environmental policies....
. The original European Community policies form the first pillar, while the second consists of
Common Foreign and Security PolicyThe Common Foreign and Security Policy is the organised, agreed foreign policy of the European Union for mainly security and defence diplomacy and actions. CFSP deals only with a specific part of the EU External Relations, which domains include mainly Trade and Commercial Policy and other areas...
. The third pillar originally consisted of Justice and Home Affairs, however owing to changes introduced by the Amsterdam and Nice treaties, it has been reduced to
Police and Judicial Co-operation in Criminal MattersPolice and Judicial Co-operation in Criminal Matters , formerly Justice and Home Affairs , is the third of the three pillars of the European Union, focusing on co-operation in law enforcement and combating racism. It is based more around intergovernmental cooperation than the other pillars meaning...
(other matters were transferred to the Community). Broadly speaking, the second and third pillars can be described as the intergovernmental pillars because the supranational institutions of the Commission, Parliament and the Court of Justice play less of a role or none at all, while the lead is taken by the intergovernmental Council of Ministers and the European Council (which operate more by consensus then majority in these pillars). Most activities of the EU come under the first, Community pillar. This is mostly an economically oriented pillar and is where the supranational institutions have the most influence.
The activities of the EU are regulated by a number of institutions and bodies. They carry out the tasks and policies set out for them in the treaties. The EU receives its political leadership from the
European CouncilThe European Council is the highest political body of the European Union. It comprises the heads of state or government of the Union's member states along with the President of the European Commission...
, which is composed of one representative per Member State – either its
head of stateHead of state is the generic term for the individual or collective office that serves as the chief public representative of a monarchy, republic, federation, commonwealth or other kind of state...
or
head of governmentHead of government is the chief officer of the executive branch of a government, often presiding over a cabinet. In a parliamentary system, the head of government is often styled Prime Minister, President of the Government, Premier, etc...
– plus the
President of the CommissionThe President of the European Commission is the most powerful office in the European Union, as the head of the European Commission, the executive branch of the European Union. The President is responsible for allocating portfolios to members of the Commission and can reshuffle or fire them if needed...
. Each Member State's representative is assisted by its
Foreign MinisterA minister for foreign affairs, or foreign minister, is a governmental cabinet minister who helps form the foreign policy of a sovereign nation. The ministry for foreign affairs is often regarded as the most senior ministerial position below that of the head of government ; it is often granted to...
. The Council uses its leadership role to sort out disputes which have arisen between Member States and the institutions, and to resolve political crises and disagreements over controversial issues and policies. These procedures are all subject to the principle of subsidiarity which requires that action only be taken at EU level where an objective cannot be sufficiently achieved by the Member States alone.
The Council is headed by a
rotating presidencyPresidency of the Council of the European Union is the responsibility for the functioning of the Council of the European Union which is rotated between European Union member states every six months...
, with every Member State taking the helm of the EU for a period of six months during which that country's representatives chair meetings of the European Council and the Council of Ministers. The Member State holding the presidency typically uses it to drive a particular policy agenda such as economic reform, reform of the EU itself, enlargement or furthering European integration. The Council usually meet four times a year at European Summits.
The European Council should not be mistaken for the
Council of EuropeThe Council of Europe is the oldest international organisation working towards European integration, having been founded in 1949. It has a particular emphasis on legal standards, human rights, democratic development, the rule of law and cultural co-operation...
, an international organisation independent from the EU.
Institutions
{{Main|Institutions of the European Union}}
The
European CommissionThe European Commission acts as an executive of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union.The Commission operates in the method of cabinet government, with 27...
acts as the EU's
executive arm}}In the study of political science the executive branch of government has sole authority and responsibility for the daily administration of the state bureaucracy. The division of power into separate branches of government is central to the democratic idea of the separation of powers .In many...
and is responsible for
initiating legislationLegislative initiative is the constitutionally defined power to propose law proposals .Legislative initiative is usually attributed to parliaments, which in most countries have the right to make law proposals, alone or sharing this right with governments.In parliamentary systems it is common that...
and the day-to-day running of the EU. It is intended to act solely in the interest of the EU as a whole, as opposed to the Council which consists of leaders of Member States who reflect national interests. The commission is also seen as the motor of
European integrationEuropean integration is the process of political, legal, economic integration of states wholly or partially in Europe...
. It is currently composed of 27
commissionersA European Commissioner is a member of the 27-member European Commission. Each Commissioner within the college holds a specific portfolio and are led by the President of the European Commission. In simple terms they are the equivalent of national ministers....
for different areas of policy, one from each Member State. The
President of the CommissionThe President of the European Commission is the most powerful office in the European Union, as the head of the European Commission, the executive branch of the European Union. The President is responsible for allocating portfolios to members of the Commission and can reshuffle or fire them if needed...
and all the other commissioners are nominated by the Council. Appointment of the Commission President, and also the Commission in its entirety, have to be confirmed by Parliament.
The
European ParliamentThe European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union , it forms the bicameral legislative branch of the Union's institutions and has been described as one of the most powerful legislatures in the world...
forms one half of the EU's
legislatureA legislature is a type of deliberative assembly with the power to pass, amend and repeal laws. The law created by a legislature is called legislation or statutory law...
. The 785
Members of the European ParliamentA Member of the European Parliament is the English name for a person who has been elected to the European Parliament, one of the European Union's two legislative bodies. MEPs are the European Union's equivalents of a country's national legislators in either the lower house or unicameral...
(MEPs) are directly elected by
EU citizensCitizenship of the European Union was introduced by the Maastricht Treaty signed in 1992. It exists alongside national citizenship and provides additional rights to nationals of Member States of the European Union.- Who is an EU citizen? :...
every five years. Although MEPs are elected on a national basis, they sit according to political groups rather than their nationality. Each country has a set number of seats. The Parliament and the Council form and pass legislation jointly, using
co-decisionThe codecision procedure is the main legislative procedure by which law can be adopted in the European Community, the first of the three pillars of the European Union...
, in certain areas of policy. This procedure will extend to many new areas under the proposed
Treaty of LisbonThe Treaty of Lisbon of 1668 was a peace treaty between Portugal and Spain, concluded at Lisbon on 13 February 1668, through the mediation of England, in which Spain recognized Portuguese independence.-The principals:...
, and hence increase the power and relevance of the Parliament. The Parliament also has the power to reject or censure the Commission and the EU budget. The
President of the European ParliamentThe President of the European Parliament presides over the debates and activities of the European Parliament. He or she also represents the Parliament within the EU and internationally. The President's signature is required for enacting most EU laws and the EU budget.Presidents serve...
carries out the role of
speakerThe term speaker is a title often given to the presiding officer of a legislative body. The speaker's official role is to moderate debate, make rulings on procedure, announce the results of votes, and the like. The speaker decides who may speak and has the powers to discipline members who break the...
in parliament and represents it externally. The president and vice presidents are elected by MEPs every two and a half years.
The
Council of the European UnionThe Council of the European Union is the principal decision-making institution of the European Union . It is often informally called the Council of Ministers or just the Council, the name used in the treaties; it is also called Consilium as a Latin-language compromise...
(sometimes referred to as the Council of Ministers) forms the other half of the EU's
legislatureA legislature is a type of deliberative assembly with the power to pass, amend and repeal laws. The law created by a legislature is called legislation or statutory law...
. It consists of a
government ministerA minister is a politician who holds significant public office in a national or regional government. Senior ministers are members of the cabinet.-Origin:...
from each Member States and meets in different compositions depending on the policy area being addressed. Notwithstanding its different compositions, it is considered to be one single body. In addition to its legislative functions, the Council also exercises
executive functionsThe executive system is a theorized cognitive system in psychology that controls and manages other cognitive processes. It is also referred to as the executive function, executive functions, supervisory attentional system, or cognitive control.The concept is used by psychologists and...
in relations to the
Common Foreign and Security PolicyThe Common Foreign and Security Policy is the organised, agreed foreign policy of the European Union for mainly security and defence diplomacy and actions. CFSP deals only with a specific part of the EU External Relations, which domains include mainly Trade and Commercial Policy and other areas...
.
The
judicial branchThe judiciary is the system of courts which interprets and applies the law in the name of the sovereign or state. The judiciary also provides a mechanism for the resolution of disputes...
of the EU consists of the
European Court of JusticeThe European Court of Justice , is the highest court in the European Union in matters of European Union law. It is tasked with interpreting EU law and ensuring its equal application across all EU member states. The Court was established in 1952 and is based in Luxembourg...
(ECJ) and the
Court of First InstanceThe European Court of First Instance, created in 1989, is a court of the European Union.-Competence:The Court of First Instance hears disputes . Appeals are sent to the European Court of Justice...
. Together they interpret and apply the treaties and the law of the EU. The Court of First Instance mainly deals with cases taken by individuals and companies directly before the EU's courts, and the ECJ primarily deals with cases taken by Member States, the institutions and
cases referred to itA preliminary ruling is a decision of the European Court of Justice on the interpretation of European Union law, made at the request of a court of a European Union member state. The name is somewhat of a misnomer in that preliminary rulings are not subject to a final determination of the matters...
by the courts of Member States. Decisions from the Court of First Instance can be appealed to the Court of Justice but only on a
point of lawIn jurisprudence, a question of law is a question which must be answered by applying relevant legal principles, by an interpretation of the law. Such a question is distinct from a question of fact, which must be answered by reference to facts and evidence, and inferences arising from those facts...
.
Legal system
{{See|Law of the European Union|Treaties of the European Union|European Union legislative procedure}}
The EU is based on a series of treaties. These first established the European Community and the EU, and then made amendments to those founding treaties. These are power-giving treaties which set broad policy goals and establish institutions with the necessary legal powers to implement those goals. These legal powers include the ability to enact legislation which can directly affect all Member States and their inhabitants. Under the principle of supremacy, national courts are required to enforce the treaties that their Member States have ratified, and thus the laws enacted under them, even if doing so requires them to ignore conflicting national law, and (within limits) even constitutional provisions.
The main legal acts of the EU come in three forms: regulations, directives and
decisionsA Decision is one of the three binding instruments provided by secondary EU legislation. A decision is binding on the person or entity to which it is addressed. Decisions may be addressed to member states or individuals...
. Regulations become law in all Member States the moment they come into force, without the requirement for any implementing measures, and automatically override conflicting domestic provisions. Directives require Member States to achieve a certain result while leaving them discretion as to how to achieve the result. The details of how they are to be implemented are left to Member States. When the time limit for implementing directives passes, they may, under certain conditions, have
direct effectDirect effect is a principle of European Community law according to which certain pieces of European legislation are enforceable before the courts of European Union member states. Direct effect is not explicitly mentioned in any of the EC Treaties, but was established by the European Court of...
in national law against Member States. Decisions offer an alternative to the two above modes of legislation. They are legal acts which only apply to specified individuals, companies or a particular Member State. They are most often used in Competition Law, or on rulings on State Aid, but are also frequently used for procedural or administrative matters within the institutions. Regulations, directives and decisions are of equal legal value and apply without any formal hierarchy.
One of the complicating features of the EU's legal system is the multiplicity of legislative procedures used to enact legislation. The treaties
micro-manageIn business management, micromanagement is a management style where a manager closely observes or controls the work of his or her subordinates or employees...
the EU's powers, indicating different ways of adopting legislation for different policy areas and for different areas within the same policy areas. A common feature of the EU's legislative procedures, however, is that almost all legislation must be initiated by the Commission, rather than Member States or European parliamentarians. The two most common procedures are co-decision, under which the European Parliament can veto proposed legislation, and consultation, under which Parliament is only permitted to give an opinion which can be ignored by European leaders. In most cases legislation must be agreed by the council.
National courts within the Member States play a key role in the EU as enforcers of EU law, and a "spirit of cooperation" between EU and national courts is laid down in the Treaties. National courts can apply EU law in domestic cases, and if they require clarification on the interpretation or validity of any EU legislation related to the case it may make a reference for a preliminary ruling to the ECJ. The right to declare EU legislation invalid however is reserved to the EU courts.
Justice and home affairs
{{See|Police and Judicial Co-operation in Criminal Matters|European Commissioner for Justice, Freedom & Security}}
Over the years, the EU has developed a wide competence in the area of justice and home affairs. To this end, agencies have been established that co-ordinate associated actions:
EuropolEuropol is the European Union's criminal intelligence agency. It became fully operational on 1 July 1999....
for co-operation of police forces,
EurojustEurojust is an agency of the European Union dealing with judicial co-operation.It is composed of national prosecutors, magistrates or police officers of equivalent competence from each of the EU states...
for co-operation between prosecutors, and
FrontexFrontex is the European Union agency for external border security...
for co-operation between border control authorities. The EU also operates the
Schengen Information SystemThe Schengen Information System, also called SIS, is a secure governmental database used by several European countries for the purpose of maintaining and distributing information related to border security and law enforcement. The data collected concern certain classes of persons and property...
which provides a common database for police and immigration authorities.
Furthermore, the Union has legislated in areas such as extradition,
family lawFamily law is an area of the law that deals with family-related issues and domestic relations including:*the nature of marriage, civil unions, and domestic partnerships;...
, asylum law, and
criminal justiceCriminal justice is the system of practices and institutions of governments directed at upholding social control, deterring and mitigating crime, and sanctioning those who violate laws with criminal penalties and rehabilitation efforts....
. Prohibitions against sexual and nationality discrimination have a long standing in the treaties. In more recent years, these have been supplemented by powers to legislate against discrimination based on race, religion, disability, age, and
sexual orientationSexual orientation is a pattern of emotional, romantic, and/or sexual attractions to men, women, both genders, neither gender, or another gender...
. By virtue of these powers, the EU has enacted legislation on
sexual discriminationSexism, a term coined in the mid-20th century, is the belief or attitude that one gender or sex is inferior to, less competent, or less valuable than the other. It can also refer to hatred of, or prejudice towards, either sex as a whole , or the application of stereotypes of masculinity in relation...
in the work-place,
age discriminationAgeism, also called age discrimination, is stereotyping of and discrimination against individuals or groups because of their age. It is a set of beliefs, attitudes, norms, and values used to justify age based prejudice and discrimination. This may be casual or systematic.The term was coined in 1969...
, and
racial discriminationRacism is the belief that race is the primary determinant of human traits and capacities and that racial differences produce an inherent superiority of a particular race. In the case of institutional racism, certain racial groups may be denied rights or benefits, or get preferential treatment...
.
Fundamental rights
At present the EU does not have a codified catalogue of fundamental rights against which its legal acts might be judged. However the
European Court of JusticeThe European Court of Justice , is the highest court in the European Union in matters of European Union law. It is tasked with interpreting EU law and ensuring its equal application across all EU member states. The Court was established in 1952 and is based in Luxembourg...
does give judgements on fundamental rights derived from the "constitutional traditions common to the Member States," and may even invalidate EU legislation based on its failure to adhere to these fundamental rights. While the EU may be said to have an unwritten fundamental rights code, there have, nonetheless, been efforts to establish a written catalogue. In 2000, the EU drew up the
Charter of Fundamental RightsThe Charter of Fundamental Rights of the European Union is a document enshrining certain fundamental rights.The wording of the document has been agreed at ministerial level and has been incorporated into the draft Constitution for Europe. However, the draft constitution was rejected by referendums...
. The Charter is not legally binding at present but would become so if the Lisbon Treaty comes into force.
Although signing the
European Convention on Human RightsThe Convention for the Protection of Human Rights and Fundamental Freedoms , was adopted under the auspices of the Council of Europe in 1950 to protect human rights and fundamental freedoms in Europe...
(ECHR) is a condition for EU membership, the EU itself is not covered by the convention as it is neither a state nor has the competence to accede. Nonetheless the Court of Justice and
European Court of Human RightsThe European Court of Human Rights in Strasbourg is an international judicial body established under the European Convention on Human Rights of 1950 to monitor respect of human rights by states...
co-operateCooperation, co-operation, or coöperation is the process of working or acting together, which can be accomplished by both intentional and non-intentional agents...
to ensure their case-law does not conflict. If the Lisbon Treaty comes into force the EU would be required to accede to the ECHR. The EU opposes the
death penaltyCapital punishment or the death penalty, is the execution of a person by judicial process as a punishment for an offense. Crimes that can result in a death penalty are known as capital crimes or capital offences....
and promotes its world wide abolition. Abolition of the death penalty is a condition for EU membership.
Foreign relations
{{Main|Foreign relations of the European Union|Common Foreign and Security Policy}}
Foreign policy cooperation between Member States dates from the establishment of the Community in 1957, when Member States negotiated as a bloc in
international tradeInternational trade is exchange of capital, goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product . While international trade has been present throughout much of history , its economic, social, and political...
negotiations under the Common Commercial Policy. Steps for a more wide ranging coordination in
foreign relationsDiplomacy is the art and practice of conducting negotiations between representatives of groups or states. It usually refers to international diplomacy, the conduct of international relations through the intercession of professional diplomats with regard to issues of peace-making, trade, war,...
began in 1970 with the establishment of
European Political CooperationThe European Political Cooperation was introduced in 1970 and was the synonym for European Union foreign policy coordination until it was superseded by the Common Foreign and Security Policy in the Maastricht Treaty ....
which created an informal consultation process between Member States with the aim of forming common foreign policies. It was not, however, until 1987 when European Political Cooperation was introduced on a formal basis by the
Single European ActThe Single European Act was the first major revision of the 1957 Treaty of Rome. The Act set the European Community an objective of establishing a Common Market by 31 December 1992, and codified European Political Cooperation, the forerunner of the European Union's Common Foreign and Security Policy...
. EPC was renamed as the
Common Foreign and Security Policy (CFSP) by the Maastricht Treaty.
The Maastricht Treaty gives the CFSP the aims of promoting both the EU's own interests and those of the
international communityThe international community is a vague term used in international relations to refer to all the governments of the world or to a group of them...
as a whole. This includes promoting international co-operation, respect for
human rightsHuman rights refer to the "basic rights and freedoms to which all humans are entitled." Examples of rights and freedoms which have come to be commonly thought of as human rights include civil and political rights, such as the right to life and liberty, freedom of expression, and equality before the...
,
democracyDemocracy is a system of government in which either the actual governing is carried out by the people governed , or the power to do so is granted by them...
, and the
rule of lawThe rule of law, also called supremacy of law, means that the law is above everyone and it applies to everyone. Whether governor or governed, rulers or ruled, no one is above the law, no one is exempted from the law, and no one can grant exemption to the application of the law.Rule of law is a...
.
The
Amsterdam TreatyThe Treaty of Amsterdam amending the Treaty of the European Union, the Treaties establishing the European Communities and certain related acts, commonly known as the Amsterdam Treaty, was signed on 2 October 1997, and entered into force on 1 May 1999; it made substantial changes to the Treaty on...
created the office of the
High Representative for the Common Foreign and Security PolicyThe High Representative for the Common Foreign and Security Policy is the main co-ordinator of the Common Foreign and Security Policy within the European Union...
(currently held by
Javier SolanaFrancisco Javier Solana de Madariaga, Ph.D. is the High Representative for the Common Foreign and Security Policy and the Secretary-General of both the Council of the European Union and the Western European Union . He was named Secretary General of the 10 permanent member Western European Union...
) to co-ordinate the EU's foreign policy. The High Representative, in conjunction with the current
PresidencyPresidency of the Council of the European Union is the responsibility for the functioning of the Council of the European Union which is rotated between European Union member states every six months...
, speaks on behalf of the EU in foreign policy matters and can have the task of articulating ambiguous policy positions created by disagreements among Member States. The Common Foreign and Security Policy requires unanimity among the now 27 Member States on the appropriate policy to follow on any particular issue. The unanimity and difficult issues treated under the CFSP makes disagreements, such as those which occurred over the
war in IraqThe Iraq War, also known as the Occupation of Iraq or Operation Iraqi Freedom, is an ongoing military campaign which began on March 20, 2003 with the invasion of Iraq by a multinational force led by troops from the United States and the United Kingdom.Prior to the war, the governments of the United...
, not uncommon.
Besides the emerging international policy of the European Union, the international influence of the EU is also felt through
enlargementEnlargement of the European Union is the process of expanding the European Union through the accession of new member states. This process began with the Inner Six, who founded the European Coal and Steel Community in 1951...
. The perceived benefits of becoming a member of the EU act as an incentive for both political and economic reform in states wishing to fulfil the EU's accession criteria, and are considered an important factor contributing to the reform of former
Communist countriesIn political science, a Communist state is a state with a form of government characterized by single-party rule of a Communist party and a professed allegiance to a communist ideology as the guiding principle of the state....
in
Central and Eastern EuropeCentral Europe is the region lying between the variously defined areas of Eastern and Western Europe. The term and widespread interest in the region itself came back into fashion after the end of the Cold War, which, along with the Iron Curtain, had divided Europe politically into East and West,...
. This influence on the internal affairs of other countries is generally referred to as "
soft powerSoft power is the ability to obtain what you want through co-option and attraction. It is in contradistinction to 'hard power', which is the use of coercion and payment. It is similar in substance but not identical to a combination of the second dimension and the third dimensions of power as...
", as opposed to military "hard power".
Besides the CFSP, the Commission also has its own representation in international organisations. This is primarily through the
European Commissioner for External RelationsThe European Commissioner for External Relations and European Neighbourhood Policy, is a member of the European Commission with responsibility over the Commissions external representation in the world and the European Union's Neighbourhood Policy. The responsibility is shared though between other...
, who works alongside the High Representative. In the UN, as an observer and working together, the EU has gained influence in areas such as aid due to its large contributions in that field (see below). In the
G8The Group of Eight is a forum, created by France in 1975, for governments of the six richest countries in the world: France, Germany, Italy, Japan, the United Kingdom, and the United States. In 1976, Canada joined the group...
, the EU has rights of membership besides chairing/hosting summit meetings and is represented at meetings by the presidents of the Commission and the Council. In the
World Trade OrganisationThe World Trade Organization is an international organization designed by its founders to supervise and liberalize international capital trade. The organization officially commenced on January 1, 1995 under the Marrakesh Agreement, replacing the General Agreements on Tariffs and Trade , which...
(WTO), where all 27 Member States are represented, the EU as a body is represented by
Trade CommissionerThe Commissioner for External Trade is the member of the European Commission responsible for the European Union's external trade policy. The portfolio is currently held by Catherine Ashton, a British member of the Party of European Socialists....
Catherine AshtonCatherine Margaret Ashton, Baroness Ashton of Upholland is a British Labour politician who is currently serving as the European Trade Commissioner; formerly, she served both as Leader of the House of Lords and Lord President of the Council....
.
There has been discussion among political analysts as to whether the European Union represents a new type of
geopoliticalGeopolitics is the art and practice of using political power over a given territory. Traditionally, the term has applied primarily to the impact of geography on politics, but its usage has evolved over the past century to encompass a wider connotation....
actorPower in international relations is defined in several different ways. Political scientists, historians, and practitioners of international relations have used the following concepts of political power:*Power as a goal of states or leaders;...
that focuses on
supranational lawSupranational law is a form of international law, based on the limitation of the rights of sovereign nations between one another. It is distinguished from public international law, which involves the United Nations, the Geneva conventions, or the Law of the Sea, because in supranational law,...
and economic and political rivalries rather than military and ideological rivalries. The discussion is typified by the debate over the extent to which the European Union sees itself, or is seen by others, as a "
postmodernPostmodernism literally means 'after the modernist movement'. While "modern" itself refers to something "related to the present", the movement of modernism and the following reaction of postmodernism are defined by a set of perspectives...
superpowerA number of states have been speculated to be, or to be in the process of turning into, a superpower at some point of the 21st century. Presently, it is widely considered that only the United States currently fulfills the criteria to be considered a superpower. Among the most commonly mentioned are...
" – either now or in the foreseeable future.
Military and defence
{{Main|European Security and Defence Policy|Military of the European Union}}
The predecessors of the European Union were not devised as a strong military alliance because NATO was largely seen as appropriate and sufficient for defence purposes. Twenty-one
EU membersA Member State of the European Union is any one of the 27 sovereign states that have acceded to the European Union since its de facto inception in 1951 as the European Coal and Steel Community . From an original membership of six states, there have been six successive enlargements, the largest...
are members of
NATOThe North Atlantic Treaty Organization ); ), also called "the Atlantic Alliance", is an intergovernmental military alliance based on the North Atlantic Treaty which was signed on April 4, 1949...
while the remaining Member States follow policies of neutrality. The
Western European UnionThe Western European Union is a largely dormant intergovernmental defence and security organisation, established on the basis of the Treaty of Brussels of 1948, with the accession of West Germany and Italy in 1954. The WEU headquarters are in Brussels...
(WEU) is a European security organisation related to the EU. In 1992, the WEU's relationship with the EU was defined, when the EU assigned it the "
Petersberg tasksThe Petersberg tasks are a list of military and security priorities incorporated within the European Security and Defence Policy of the European Union....
" (humanitarian missions such as peacekeeping and
crisis managementCrisis management is the process by which an organization deals with a major unpredictable event that threatens to harm the organization, its stakeholders, or the general public. Three elements are common to most definitions of crisis: a threat to the organization, the element of surprise, and ...
). These tasks were later transferred from the WEU to the EU by the Amsterdam Treaty and now form part of the Common Foreign and Security Policy and the
European Security and Defence PolicyThe European Security and Defence Policy or ESDP is a major element of the Common Foreign and Security Policy pillar of the European Union and is the domain of EU policy covering defence and military aspects...
. Elements of the WEU are currently being merged into the Common Foreign and Security Policy, and the President of the WEU is currently the EU's foreign policy chief.
Following the
Kosovo WarThe term Kosovo War or Kosovo Conflict is used to describe two sequential and at times parallel armed conflicts in Kosovo:#Early 1998–1999: War between Yugoslav police forces, Yugoslav paramilitaries, and the Kosovo Albanian insurgents....
in 1999, the European Council agreed that "the Union must have the capacity for
autonomous actionAutonomous Action, Avtonomnoe Deystvie, is a revolutionary anarchist federation in Russia, Belarus and Ukraine that was founded in January 2002.AD is comprised of anarcho-communists, syndicalists, autonomist-marxists, and radical ecologists...
, backed by credible
military forcesThe armed forces of a country are its government-sponsored defense, fighting forces, and organizations. They exist to further the foreign and domestic policies of their governing body, and to defend that body and the nation it represents from external and internal aggressors. In some countries...
, the means to decide to use them, and the readiness to do so, in order to respond to international crises without prejudice to actions by NATO". To that end, a number of efforts were made to increase the EU's military capability, notably the
Helsinki Headline GoalThe Helsinki Headline Goal was a military capability target set for 2003 during the December 1999 Helsinki European Council meeting. There was much interest in the idea of a single EU military force, and inaccurate characterisations of the initiative led to inaccurate...
process. After much discussion, the most concrete result was the EU Battlegroups initiative, each of which is planned to be able to deploy quickly about 1500 men. EU forces have been deployed on
peacekeepingPeacekeeping, as defined by the United Nations, is "a way to help countries torn by conflict create conditions for sustainable peace." It is distinguished from both peacebuilding and peacemaking....
missions from
AfricaAfrica is the world's second-largest and second most-populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area. With a billion people in 61 territories, it accounts for about 14.8% of the...
to the former
YugoslaviaYugoslavia is a term that describes three political entities that existed successively on the Balkan Peninsula in Europe, during most of the 20th century.The first country to be known by this...
and the
Middle EastThe Middle East is a region that spans southwestern Asia, southeastern Europe, and northeastern Africa. It has no clear boundaries, often used as a synonym to Near East, in opposition to Far East...
. EU
military operationThis article describes three distinct, but related terms: military operations, Operations as military events, and operational level of war.-Military operations:...
s are supported by a number of bodies, including the
European Defence AgencyThe European Defence Agency is an agency of the European Union based in Brussels. It is a Common Foreign and Security Policy body set up on 12 July 2004, reporting to the Council of the European Union. All EU member states, except Denmark which has an opt-out of the CFSP pillar, take part in the...
,
satellite centreThe European Union Satellite Centre is an Agency of the Council of the European Union which gathers information through satellite images to help the EU prevent conflicts and provide humanitarian aid....
and the
military staffThe European Union Military Staff is a department of the European Union , responsible for supervising operations within the realm of the European Security and Defence Policy...
.
Humanitarian aid
{{See|European Community Humanitarian Aid Office}}
The European Community Humanitarian Aid Office, or "ECHO", provides
humanitarian aidHumanitarian aid is material or logistical assistance provided for humanitarian purposes, typically in response to humanitarian crises. The primary objective of humanitarian aid is to save lives, alleviate suffering, and maintain human dignity...
from the EU to
developing countriesDeveloping country is a term generally used to describe a nation with a low level of material well being. There is no single internationally-recognized definition of developed country, and the levels of development may vary widely within so-called developing countries, with some developing...
. In 2006 its budget amounted to €671 million, 48% of which went to the African, Caribbean and Pacific countries. Counting the EU's own contributions and those of its Member States together, the EU is the largest aid donor in the world.
The EU's aid has previously been criticised by the
euroscepticEuroscepticism is a general term used to describe opposition and criticism of the European Union , and the process of European integration...
think-tankA think tank is an organization, institute, corporation, or group that conducts research and engages in advocacy in areas such as social policy, political strategy, economy, science or technology issues, industrial or business policies, or military advice...
Open EuropeOpen Europe is a eurosceptic, London-based think-tank and interest group that UK business people set up. While Open Europe does not advocate British withdrawal from the European Union, it is critical of the process of European integration and has called for "substantial powers to be returned" to...
for being inefficient, mis-targeted and linked to economic objectives. Furthermore, some charities have claimed European governments have inflated the amount they have spent on aid by incorrectly including money spent on
debt reliefDebt relief is the partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations...
,
foreign studentsInternational students are students, usually in early adulthood, who study in foreign educational institutions. While most universities have official student exchange programs, some well-funded high schools have them, too. Although some students travel abroad mainly to improve their language...
, and refugees. Under the de-inflated figures, the EU as a whole did not reach its internal aid target in 2006 and is expected not to reach the international target of 0.7% of
GNIGross national income ' comprises the total value produced within a country , together with its income received from other countries , less similar payments made to other countries....
until 2015. However, four countries have reached that target, most notably
SwedenSweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe...
,
LuxembourgLuxembourg , officially the Grand Duchy of Luxembourg , is a small, landlocked country in western Europe, bordered by Belgium, France, and Germany...
,
the NetherlandsThe Netherlands is a country in Northwestern Europe, constituting the major portion of the Kingdom of the Netherlands. It is a parliamentary democratic constitutional monarchy. The Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east...
and
DenmarkDenmark is a Scandinavian country in Northern Europe and the senior member of the Kingdom of Denmark. It is the southernmost of the Nordic countries; southwest of Sweden and south of Norway, and it is bordered to the south by Germany. Denmark borders both the Baltic and the North Sea...
. In 2005 EU aid was 0.34% of the GNP which was higher than that of either the United States or Japan. The current
commissioner for aidEuropean Commissioner for Development & Humanitarian Aid is a member of the European Commission. The post is currently held by Commissioner Karel De Gucht...
,
Louis MichelLouis H. O. Ch. Michel is a Belgian Member of European Parliament. Before that, he served as European Commissioner for Development and Humanitarian Aid until July 2009...
, has called for aid to be delivered more rapidly, to greater effect, and on humanitarian principles.
Economy
{{Main|Economy of the European Union}}
Since its origin, the EU has established a single economic market across the territory of all its members. Currently, a single currency is in use between the 16 members of the
eurozoneThe eurozone is an economic and monetary union of 16 European Union member states which have adopted the euro currency as their sole legal tender. It currently consists of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal,...
. If considered as a single economy, the EU generated an estimated nominal
gross domestic productThe gross domestic product or gross domestic income is a basic measure of a country's economic performance and is the market value of all final goods and services made within the borders of a country in a year...
(GDP) of
US$The United States dollar is the unit of currency of the United States. The U.S. dollar is normally abbreviated as the dollar sign, $, or as USD or US$ to distinguish it from other dollar-denominated currencies and from others that use the $ symbol. It is divided into 100 cents .The U.S...
18.39 trillion (15.247 trillion international dollars based on
purchasing powerPurchasing power is the number of goods/services that can be purchased with a unit of currency. For example, if you had taken one dollar to a store in the 1950s, you would have been able to buy a greater number of items than you would today, indicating that you would have had a greater purchasing...
parity) in 2008, amounting to over 22% of the world's total
economic outputOutput in economics is the total value of all of the goods and services produced in an entity's economy. It is a concept used in macroeconomics, or the study of the economic transactions of broad groups such as countries....
in terms of purchasing power parity,
Gross domestic product, current prices; U.S. dollars, Billions;
2007=16,927.173
2008=18,394.115
2009=15,342.908 [projection]
Gross domestic product based on purchasing-power-parity (PPP) valuation of country GDP; Current international dollar, Billions;
2007=14,762.109
2008=15,247.163
2009=14,774.525 [projection]
GDP based on PPP share of world total
2007=22.605%
2008=22.131%
2009=21.609% [projection]
World "GDP", current prices; U.S. dollars, Billions;
2007=54,840.873
2008=60,689.812
2009=54,863.551 [projection]
These data were published in 2009. Data for 2009 are projections based on a number of assumptions.
}} which makes it the largest economy in the world by nominal GDP and the second largest
trade blocA trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade are reduced or eliminated among the participating states.-Description:...
economy in the world by PPP valuation of GDP. It is also the largest exporter , and largest importer of
goods and servicesIn economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility. It is often used when referring to a Goods and Services Tax....
, and the biggest trading partner to several large countries such as
IndiaIndia, officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the south, the Arabian Sea on the west, and the Bay of Bengal...
and
ChinaThe People's Republic of China , commonly known as China, is the largest country in East Asia and the most populous in the world with over 1.3 billion people, approximately one-fifth of the world's population...
.
178 of the top 500 largest corporations measured by revenue (
Fortune Global 500The Fortune Global 500 is a ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by Fortune magazine....
) have their headquarters in the EU.{{Update after|2010|07|23|reason=next update of list expected approx. 2010-07-23}}
In May 2007 unemployment in the EU stood at 7% while investment was at 21.4% of GDP, inflation at 2.2% and public deficit at −0.9% of GDP. There is a great deal of variance for annual per capita income within individual EU states, these range from US$7,000 to US$69,000.
Single market
{{See|Four Freedoms (European Union)}}
Two of the original core objectives of the European Economic Community were the development of a
common marketA common market is a type of trade bloc which is composed of a customs union with common policies on product regulation, and freedom of movement of the factors of production and of enterprise. The goal is that the movement of capital, labour, goods, and services between the members is as easy as...
, subsequently renamed the
single marketA common market is a type of trade bloc which is composed of a customs union with common policies on product regulation, and freedom of movement of the factors of production and of enterprise. The goal is that the movement of capital, labour, goods, and services between the members is as easy as...
, and a
customs unionThe European Union Customs Union is a customs union which consists of all European Union member states. No customs are levied on goods travelling within the customs union and — unlike a free trade area — members of the customs union impose a common external tariff on all goods entering...
between its Member States. The single market involves the free circulation of goods,
capitalIn economics, capital or capital goods or real capital are factors of production used to create goods or services that are not themselves significantly consumed in the production process. Capital goods may be acquired with money or financial capital...
,
peopleThe freedom of movement for workers is a policy chapter of the acquis communautaire of the European Union. It is part of the free movement of persons and one of the four economic freedoms: free movement of goods, services, labour and capital.-Introduction:...
and services within the EU, and the customs union involves the application of a
common external tariffWhen a group of countries form a customs union they must introduce a common external tariff. The same customs duties, import quotas, preferences or other non-tariff barriers to trade apply to all goods entering the area, regardless of which country within the area they are entering...
on all goods entering the market. Once goods have been admitted into the market they can not be subjected to
customs dutiesCustoms is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, personal effects and hazardous items in and out of a country. Depending on local legislation and regulations, the import or export of...
, discriminatory taxes or
import quotaAn import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time....
s, as they travel internally. The non-EU Member States of
IcelandThe Republic of Iceland is a European island country located in the North Atlantic Ocean. It has a population of about 320,000 and a total area of 103,000 km². Its capital and largest city is Reykjavík, whose surrounding area is home to approximately two thirds of the national population...
,
NorwayNorway , officially the Kingdom of Norway, is a country in Northern Europe occupying the western portion of the Scandinavian Peninsula, as well as Jan Mayen and the Arctic archipelago of Svalbard under the Spitsbergen Treaty...
,
LiechtensteinThe Principality of Liechtenstein is a doubly landlocked alpine microstate in Western Europe, bordered by Switzerland to the west and south and by Austria to the east. Its area is just over 160 km² and it has an estimated population of 35,000...
and
SwitzerlandSwitzerland , officially the Swiss Confederation , is a federal republic consisting of 26 states named cantons, with Bern as the seat of the federal authorities...
participate in the single market but not in the customs union. Half the trade in the EU is covered by legislation harmonised by the EU.
Free movement of capital is intended to permit movement of investments such as property purchases and buying of shares between countries. Until the drive towards
Economic and Monetary UnionAn economic and monetary union is a type of trade bloc which is composed of a single market with a common currency. It is to be distinguished from a mere currency union , which does not involve a single market. This is the fifth stage of economic integration...
the development of the capital provisions had been slow. Post-Maastricht there has been a rapidly developing corpus of ECJ judgements regarding this initially neglected freedom. The free movement of capital is unique insofar as that it is granted equally to non-Member States.
The free movement of persons means
citizensCitizenship of the European Union was introduced by the Maastricht Treaty signed in 1992. It exists alongside national citizenship and provides additional rights to nationals of Member States of the European Union.- Who is an EU citizen? :...
can move freely between Member States to live, work, study or retire in another country. This required the lowering of administrative formalities and recognition of professional qualifications of other states.
The free movement of services and of establishment allows
self-employedSelf-employment is where a person works for themselves rather than someone else or a company that they do not own. To be self-employed, an individual is normally highly skilled in a trade or has a niche product or service for their local community. With the creation of the Internet the ability for...
persons to move between Member States in order to provide services on a temporary or permanent basis. While services account for between sixty and seventy percent of GDP, legislation in the area is not as developed as in other areas. This lacuna has been addressed by the recently passed
Directive on services in the internal marketThe Directive on services in the internal market is an initiative of the European Commission aimed at creating a single market for services within the European Union , similar to the single market for goods already present...
which aims to liberalise the cross border provision of services. According to the Treaty the provision of services is a residual freedom that only applies if no other freedom is being exercised.
Monetary union
{{Main|Economic and Monetary Union of the European Union}}
{{See also|Euro|Eurozone}}
The creation of a European single currency became an official objective of the EU in 1969. However, it was only with the advent of the Maastricht Treaty in 1993 that Member States were legally bound to start the
monetary unionA currency union is where two or more states share the same currency, though without there necessarily having any further integration as would be characterised by an Economic and Monetary Union, which involves economic integration to the point of a single market.-Examples of existing...
no later than 1 January 1999. On this date the
euroThe euro is the official currency of 16 of the 27 Member States of the European Union . The states, known collectively as the Eurozone, are Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain...
was duly
launched by elevenThe introduction of the euro took place principally between 31 December 1998, when the exchange rates between the euro and legacy currencies in the eurozone became fixed, and early 2002, when euro notes and coins were introduced and the legacy currencies withdrawn.Since 2002, the eurozone has...
of the then fifteen Member States of the EU. It remained an accounting currency until 1 January 2002, when
euro notesEuro banknotes are the banknotes of the euro, the currency of the eurozone . They have been in circulation since 2002 and are issued by the European Central Bank , each bearing the signature of the President of the European Central Bank...
and coins were issued and national currencies began to phase out in the
eurozoneThe eurozone is an economic and monetary union of 16 European Union member states which have adopted the euro currency as their sole legal tender. It currently consists of Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal,...
, which by then consisted of twelve Member States. The eurozone has since grown to sixteen countries, the most recent being
SlovakiaThe Slovak Republic is a landlocked country in Eastern Europe with a population of over five million and an area of about . Slovakia borders the Czech Republic and Austria to the west, Poland to the north, Ukraine to the east and Hungary to the south. The largest city is its capital, Bratislava...
which joined on 1 January 2009.
All other EU Member States, except Denmark and the United Kingdom, are legally bound to join the euro when the economic conditions are met, however only a few countries have set target dates for accession. Sweden has circumvented the requirement to join the euro area by not meeting the membership criteria.{{Citation needed|date=March 2009}}
The euro is designed to help build a single market by, for example: easing travel of citizens and goods, eliminating
exchange rateIn finance, the exchange rates between two currencies specifies how much one currency is worth in terms of the other. It is the value of a foreign nation’s currency in terms of the home nation’s currency...
problems, providing price transparency, creating a single
financial marketIn economics, a financial market is a mechanism that allows people to easily buy and sell financial securities , commodities , and other fungible items of value at low transaction costs and at prices that reflect the efficient-market hypothesis.Financial markets have evolved significantly over...
,
price stabilityIn economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation is also an erosion in the purchasing power of money – a loss of real...
and low
interest rateAn interest rate is the price a borrower pays for the use of money they do not own, for instance a small company might borrow from a bank to kick start their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower...
s, and providing a currency used internationally and protected against shocks by the large amount of internal trade within the eurozone. It is also intended as a political symbol of integration and stimulus for more. Since its launch the euro has become the second
reserve currencyA reserve currency is a currency which is held in significant quantities by many governments and institutions as part of their foreign exchange reserves...
in the world with a quarter of foreign exchanges reserves being in euro.
The euro, and the monetary policies of those who have adopted it in agreement with the EU, are under the control of the
European Central BankThe European Central Bank is one of the world's most important central banks, responsible for monetary policy covering the 16 member States of the Eurozone. It was established by the European Union in 1998 with its headquarters in Frankfurt, Germany.-History:Technically the predecessor to the ECB...
(ECB). There are
eleven other currenciesThere are thirteen currencies of the European Union as of 2009, the principal currency being the euro. The euro is used by the the institutions of the European Union and by the eurozone states, which account for 16 of the 27 member states of the European Union...
used in the EU. A number of other countries outside the EU, such as
MontenegroMontenegro , is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast, Kosovo to the east and Albania to the south...
, use the euro without formal agreement with the ECB.
Competition
{{Main|European Community competition law}}
{{See also|European Commissioner for Competition}}
The EU operates a
competition policyCompetition law, known in the United States as antitrust law, has three main elements:*prohibiting agreements or practices that restrict free trading and competition between business entities. This includes in particular the repression of cartels....
intended to ensure undistorted competition within the single market. The Commission as the