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European Union

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The European Union’s (EU) evolution is unprecedented in history, transforming from a regional economic agreement among six neighboring states in 1951 to today’s hybrid intergovernmental and supranational organization of 27 countries across the European continent.

For such a large number of nation – states to cede some of their sovereignty to an overarching entity is unique. Dynastic unions for territorial consolidation were long the norm in Europe, although country – level unions were sometimes arranged, such as the Polish – Lithuanian Commonwealth and the Austro – Hungarian Empire.

Although the EU is not a federation in the strict sense, it is far more than a free – trade association such as ASEAN or Mercosur, and it has certain attributes associated with independent nations: its own flag, currency (for some members), and law – making abilities, as well as diplomatic representation and a common foreign and security policy in its dealings with external partners.

source: www.cia.gov

Additional Info

MAP OF THE EUROPEAN UNION

Today, 27 countries are part of the European Union.
These countries are:

  • Austria
  • Belgium
  • Bulgaria
  • Croatia
  • Cyprus
  • Czechia
  • Denmark
  • Estonia
  • Finland
  • France
  • Germany
  • Greece
  • Hungary
  • Ireland
  • Italy
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • Netherlands
  • Poland
  • Portugal
  • Romania
  • Slovakia
  • Slovenia
  • Spain
  • Sweden

 

Source: european-union.europa.eu

BACKGROUND

In the aftermath and devastation of the two World Wars, a number of far – sighted European leaders in the late 1940s sought to respond to the overwhelming desire for peace and reconciliation on the continent. In 1950, French Foreign Minister Robert Schuman proposed pooling the production of coal and steel in Western Europe, which would bring France and West Germany together and be open to other countries as well. The following year, the European Coal and Steel Community (ECSC) was set up when six members — Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands — signed the Treaty of Paris.

Within a few years, the ECSC was so successful that member states decided to further integrate their economies. In 1957, envisioning an “ever closer union,” the Treaties of Rome created the European Economic Community (EEC) and the European Atomic Energy Community (Euratom), which eliminated trade barriers among the six member states to create a common market. In 1967, the institutions of all three communities were formally merged into the European Community (EC), creating a single Commission, a single Council of Ministers, and a legislative body known today as the European Parliament. Members of the European Parliament were initially selected by national parliaments, but direct elections began in 1979 and have been held every five years since.

In 1973, the first enlargement of the EC added Denmark, Ireland, and the UK. The 1980s saw further membership expansion, with Greece joining in 1981 and Spain and Portugal in 1986. The 1992 Treaty of Maastricht laid the basis for further cooperation in foreign and defense policy and judicial and internal affairs, as well as the creation of an economic and monetary union — including a common currency. The Maastricht Treaty created the European Union (EU), at the time standing alongside the EC. In 1995, Austria, Finland, and Sweden joined the EU/EC, raising the total number of member states to 15. On 1 January 1999, the new euro currency was launched in world markets and became the unit of exchange for all EU member states except Denmark, Sweden, and the UK. In 2002, citizens of the 12 participating member states began using euro banknotes and coins.

In an effort to ensure that the EU could function efficiently with an expanded membership, the Treaty of Nice in 2000 set forth rules to streamline the size and procedures of the EU’s institutions. An effort to establish a “Constitution for Europe,” growing out of a Convention held in 2002-2003, foundered when it was rejected in referenda in France and the Netherlands in 2005. A subsequent effort in 2007 incorporated many features of the rejected draft Constitutional Treaty, while also making a number of substantive as well as symbolic changes. The new treaty, referred to as the Treaty of Lisbon, sought to amend existing treaties rather than replace them. The treaty was approved at a conference of member states, and after all member states ratified, the Lisbon Treaty came into force on 1 December 2009, at which point the EU officially replaced and succeeded the EC.

Ten new countries joined the EU in 2004 — Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia. Bulgaria and Romania joined in 2007 and Croatia in 2013. UK citizens on 23 June 2016 narrowly voted to leave the EU; the formal exit, widely known as “Brexit,” took place on 31 January 2020. The EU and the UK negotiated a withdrawal agreement that included a status quo transition period through December 2020, when the follow-on EU-UK Trade and Cooperation Agreement was concluded. Current EU membership stands at 27. Eight of the newer member states — Croatia, Cyprus, Estonia, Latvia, Lithuania, Malta, Slovakia, and Slovenia — have now adopted the euro, bringing total euro-zone membership to 20.

LIVING IN THE EU

Population

Total: 451,815,312
Male: 220,631,332
Female: 231,183,980 (2024 est.)

Age structure
0 – 14 years: 14.5% (male 33,606,273 / female 31,985,118)
15 – 64 years: 63.5% (male 143,874,460 / female 143,104,994)
65 years and over: 22% (2024 est.) (male 43,150,599 / female 56,093,868)

The EU has delivered more than half a century of peace, stability and prosperity, helped raise living standards, and launched a single European currency: the euro.  More than 340 million EU citizens in 19 countries now use it as their currency and enjoy its benefits.  Thanks to the abolition of border controls between EU countries, people can travel freely throughout most of the continent.  It has become much easier to live, work, and travel abroad in Europe.  All EU citizens have the right and freedom to choose which EU country they want to study, work, or retire in.  Every EU country must treat EU citizens in exactly the same way as its own citizens for employment, social security, and tax purposes.  

The EU is governed by the principle of representative democracy, with citizens directly represented at Union level in the European Parliament and Member States represented in the European Council and Council of the EU.  European citizens are encouraged to contribute to the democratic life of the Union by giving their views on EU policies during development or suggest improvements to existing laws and policies.  The European citizens’ initiative empowers citizens to have a greater say on EU policies that affect their lives.  Citizens can also submit complaints and inquiries concerning the application of EU law.

GOVERNMENT

Political structure
A hybrid and unique intergovernmental and supranational organization

Capital
Name: Brussels (Belgium), Strasbourg (France), Luxembourg, Frankfurt (Germany);
Note – the European Council, a gathering of member – state heads of state and / or government, and the Council of the European Union, a gathering of member – state cabinet ministers, meet in Brussels, Belgium, except for Council of the EU meetings held in Luxembourg in April, June, and October; the European Parliament meets in Brussels and Strasbourg, France, and has administrative offices in Luxembourg; the Court of Justice of the European Union is located in Luxembourg; and the European Central Bank is located in Frankfurt, Germany

Legal system
Unique supranational system of laws in which, according to an interpretive declaration of member-state governments appended to the Treaty of Lisbon, “the Treaties and the law adopted by the Union on the basis of the Treaties have primacy over the law of Member States” under conditions laid down in the case law of the Court of Justice;

Key principles of EU jurisprudence include universal rights as guaranteed by the Charter of Fundamental Rights and as resulting from constitutional traditions common to the EU’s 27 member states;

EU law is divided into ‘primary’ and ‘secondary’ legislation; primary legislation is derived from the consolidated versions of the Treaty on European Union and the Treaty on the Functioning of the European Union and are the basis for all EU action;

Secondary legislation – which includes directives, regulations, and decisions – is derived from the principles and objectives set out in the treaties.

Executive branch
Under the EU treaties there are three distinct institutions, each of which conducts functions that may be regarded as executive in nature:

European Council – brings together member – state heads of state or government, along with the president of the European Commission, and meets at least four times a year; its aim is to provide the impetus for the development of the Union and to issue general policy guidance; the Treaty of Lisbon established the position of “permanent” (full – time) president of the European Council; leaders of the EU member states appoint the president for a 2 1/2 year term, renewable once; the president’s responsibilities include chairing European Council meetings and providing policy and organizational continuity; the current president is Charles MICHEL (Belgium), since 1 December 2019, who succeeded Donald TUSK (Poland; 2014 – 2019).

Council of the European Union – consists of gatherings of member – state officials, ranging from working – level diplomats to cabinet ministers in a given policy field, such as foreign affairs, agriculture, or economy; it conducts policymaking and coordinating functions as well as legislative functions; representatives from one member state chair meetings of the Council of the EU, based on a 6 – month rotating presidency except for the meetings of EU Foreign Ministers in the Foreign Affairs Council that are chaired by the High Representative for Foreign Affairs and Security Policy.

European Commission – headed by a College of Commissioners comprised of 27 members (one from each member state) including the president; each commissioner is responsible for one or more policy areas; the Commission has the sole right to initiate EU legislation (except for foreign and security/defense policy), and is also responsible for promoting the general interest of the EU, acting as “guardian of the Treaties” by monitoring the application of EU law, implementing / executing the EU budget, managing programs, negotiating on the EU’s behalf in policy areas where the member states have conferred sole competency, such as trade, and ensuring the Union’s external representation in some policy areas; its current president is Ursula VON DER LEYEN (Germany) elected on 16 July 2019 (took office on 1 December 2019); the president of the European Commission is nominated by the European Council and confirmed by the European Parliament; the Commission president allocates specific responsibilities among the members of the College (appointed by common accord of the member – state governments in consultation with the president – elect); the European Parliament confirms the entire Commission for a 5 – year term.

Note: For external representation and foreign policy making, member – state leaders appointed Joseph BORRELL (Spain) as the High Representative of the Union for Foreign Affairs and Security Policy; BORRELL took office on 1 December 2019, succeeding Federica MOGHERINI (Italy (2014 – 2019); the High Representative’s concurrent appointment as Vice President of the European Commission was meant to bring more coherence to the EU’s foreign policy (including policies managed by the Commission that are particularly relevant for EU external relations, such as trade, humanitarian aid and crisis management, neighborhood policy and enlargement, as well as between member-state capitals and the EU); the High Representative helps develop and implement the EU’s Common Foreign and Security Policy and Common Security and Defense Policy components, chairs the Council of the EU’s meetings of member-state foreign ministers, called the Foreign Affairs Council, represents and acts for the Union in many international contexts, and oversees the European External Action Service, the diplomatic corps of the EU, established on 1 December 2010

Legislative branch
Description: two legislative bodies consisting of the Council of the European Union (27 seats; ministers representing the 27 member states) and the European Parliament (720 seats; seats allocated among member states roughly in proportion to population size; members elected by proportional representation to serve 5-year terms); note – the European Parliament President, Roberta METSOLA, was elected in January 2022 and reelected in July 2024 by a majority of fellow members of the European Parliament (MEPs) and represents the Parliament within the EU and internationally; the Council of the EU and the MEPs share responsibilities for adopting the bulk of EU legislation; the two bodies must come to agreement for a commission proposal to become law, after negotiations in which they reconcile differences in each body’s text of the proposal, except in the area of Common Foreign and Security Policy, which is governed by consensus of the EU member – state governments)

Elections: last held on 6 – 9 June 2024 (next to be held in June 2029)

Judicial branch
Highest court(s): Court of Justice of the European Union, which includes the Court of Justice (informally known as the European Court of Justice or ECJ) and the General Court (consists of 27 judges, one drawn from each member state); the ECJ includes 11 Advocates General while the General Court can include additional judges; both the ECJ and the General Court may sit in a “Grand Chamber” of 15 judges in special cases but usually in chambers of 3 to 5 judges

Judge selection and term of office: judges appointed by the common consent of the member states to serve 6 – year renewable terms

Note: the ECJ is the supreme judicial authority of the EU; it ensures that EU law is interpreted and applied uniformly throughout the EU, resolves disputes among EU institutions and member states, and reviews issues and opinions regarding questions of EU law referred by member state courts

source: www.cia.gov

GOALS

One of its main goals is to promote human rights both internally and around the world. Human dignity, freedom, democracy, equality, the rule of law and respect for human rights: these are the core values of the EU. Since the 2009 signing of the Treaty of Lisbon, the EU’s Charter of Fundamental Rights brings all these rights together in a single document. The EU’s institutions are legally bound to uphold them, as are EU governments whenever they apply EU law. As it continues to grow, the EU remains focused on making its governing institutions more transparent and democratic. More powers are being given to the directly elected European Parliament, while national parliaments are being given a greater role, working alongside the European institutions. In turn, European citizens have an ever-increasing number of channels for taking part in the political process.

THE ECONOMY

The EU’s main economic engine is the single market.  It enables most goods, services, money, and people to travel freely.  The EU aims to develop this huge resource to other areas like energy, knowledge, and capital markets to ensure that Europeans can draw maximum benefits from it.  

It is the largest trade block in the world.  It is also the world’s biggest exporter of manufactured goods and services, and the biggest import market for over 100 countries.  Free trade among its members was one of the EU’s founding principles.  This is possible thanks to the single market.  Beyond its borders, the EU is also committed to liberalizing world trade.

Operating as a single market, the EU is a major world trading power. EU economic policy focuses on creating jobs and boosting growth by making smarter use of financial resources, removing obstacles to investment, and providing visibility and technical assistance to investment projects.  The EU’s economy – measured in terms of the goods and services it produces (GDP) – is now bigger than the US’s.  EU GDP in 2017: €15.3 trillion

Source: www.europa.eu/about-eu

EU PRIORITIES 2024 – 2029

Following the European elections in June 2024, the EU set a number of priorities that shape the political and policy agenda until 2029. They serve to address the main challenges faced by the EU and its citizens.

The priorities derive from a dialogue between EU leaders, national ministers, EU institutions and the political groups elected to the European Parliament. In June 2024, the European Council set out its priorities in the 2024-2029 EU strategic agenda. This serves as inspiration for the European Commission’s political priorities which it draws up before taking office for a 5-year term.

EU Strategic Agenda for 2024 – 2029
In their 2024 – 2029 strategic agenda, EU leaders set out 3 priority areas to guide the work of the EU institutions over these 5 years. The need for a clear strategic plan has become ever more pressing. In the past few years, the EU has faced many crises, from the fight against climate change to the COVID – 19 pandemic and supporting Ukraine following Russia’s war of aggression. By focusing on new priority areas, the EU will help make Europe more sovereign and better equipped to deal with future challenges.

The 3 priorities are:

A free and democratic Europe

  • Upholding European values within the EU
  • Living up to EU values at global level

A strong and secure Europe

  • Ensuring coherent and influential external action
  • Strengthening EU security and defence, and protecting EU citizens
  • Preparing for a bigger and stronger Union
  • Pursuing a comprehensive approach to migration and border management

A prosperous and competitive Europe

  • Bolstering the EU’s competitiveness
  • Making a success of the green and digital transitions
  • Promoting an innovation – and business – friendly environment
  • Advancing together

Source: www.europa.eu/about-eu

ECONOMY OVERVIEW

The 28 member states that make up the EU have adopted an internal single market with free movement of goods, services, capital, and labor.  The EU, which is also a customs union, aims to bolster Europe’s trade position and its political and economic weight in international affairs.

Despite great differences in per capita income among member states (from $28,000 to $109,000) and in national attitudes towards issues like inflation, debt, and foreign trade, the EU has achieved a high degree of coordination of monetary and fiscal policies.  A common currency – the euro – circulates among 19 of the member states, under the auspices of the European Economic and Monetary Union (EMU).  Eleven member states introduced the euro as their common currency on 1 January 1999 (Greece did so two years later).  

Since 2004, 13 states acceded to the EU.  Of the 13, Slovenia (2007), Cyprus and Malta (2008), Slovakia (2009), Estonia (2011), Latvia (2014), and Lithuania (2015) have adopted the euro; 7 other member states – not including the UK and Denmark, which have formal opt – outs – are required by EU treaties to adopt the common currency upon meeting fiscal and monetary convergence criteria.

The EU economy posted moderate GDP growth for 2014 through 2017, capping five years of sustained growth since the 2008 – 09 global economic crisis and ensuing sovereign debt crisis in the eurozone in 2011.  The bloc’s recovery has been uneven.  Some EU member states (Czech Republic, Ireland, Malta, Romania, Sweden, and Spain) have recorded strong growth while others (Italy and the UK) are experiencing modest expansion, and some (Greece) have only recently shaken off recession.  Only Greece remains under an EU rescue program (due to end August 2018), while Cyprus, Ireland, Portugal, and Spain have successfully concluded their agreements.  

Overall, the EU’s recovery has been buoyed by lower commodities prices and accommodative monetary policy, which has lowered interest rates and stimulated demand.  The eurozone, which makes up about 70% of the total EU economy, is performing well, achieving a growth rate not seen in a decade.  

Continued uncertainty about the implications of the UK’s exit from the EU could hurt consumer and investor confidence and dampen EU growth, particularly if trade and cross – border investment significantly declines.  Externally, the EU has continued to pursue comprehensive free trade agreements to expand EU external market share, particularly with Asian countries; EU and Japanese leaders reached a political – level agreement on a free trade agreement in July 2017, and an agreement with Mexico in April 2018 on updates to an existing free trade agreement.

Among the world’s largest and most technologically advanced regions, the EU industrial base includes: ferrous and non – ferrous metal production and processing, metal products, petroleum, coal, cement, chemicals, pharmaceuticals, aerospace, rail transportation equipment, passenger and commercial vehicles, construction equipment, industrial equipment, shipbuilding, electrical power equipment, machine tools and automated manufacturing systems, electronics and telecommunications equipment, fishing, food and beverages, furniture, paper, and textiles.