European Union

Definition

The European Union (EU) is a unique political and economic union of 27 member states that are located primarily in Europe. It was established to promote peace, its values, and the well-being of its citizens through the creation of a single market, a common currency, and the implementation of shared policies in areas such as trade, agriculture, and social policy.

5 Must Know Facts For Your Next Test

1. The European Union was established in 1993 with the signing of the Maastricht Treaty, which transformed the previously existing European Economic Community into the European Union.
2. The EU's single market allows for the free movement of goods, services, capital, and people within the member states, creating a more integrated and efficient economic system.
3. The euro, introduced in 1999, is the official currency of 19 of the 27 EU member states, known as the Eurozone, and is one of the most widely used currencies in the world.
4. The EU has developed a common foreign and security policy, allowing member states to coordinate their responses to global issues and challenges, such as climate change, terrorism, and international conflicts.
5. The European Union has expanded over time, with the most recent member state, Croatia, joining in 2013, bringing the total number of member states to 27.

Review Questions

• Explain the key objectives and principles of the European Union.
  • The European Union was established with the primary objectives of promoting peace, its values, and the well-being of its citizens. Its key principles include the creation of a single market, the implementation of shared policies in areas such as trade, agriculture, and social policy, and the adoption of a common currency, the euro, by a majority of its member states. The EU aims to foster economic integration, political cooperation, and the protection of human rights and democratic values among its member states.
• Describe the role and structure of the European Commission and the European Parliament within the European Union.
  • The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties, and managing the day-to-day business of the EU. The European Parliament, on the other hand, is the directly elected legislative body of the EU, consisting of 705 members who represent the interests of the citizens of the EU member states. The Parliament works alongside the Council of the European Union to pass laws and approve the EU's budget, ensuring that the EU's actions reflect the will of its citizens.
• Analyze the impact of the European Union's single market and the introduction of the euro on the economic integration and cooperation among its member states.
  • The creation of the European Union's single market has had a profound impact on economic integration and cooperation among its member states. By allowing for the free movement of goods, services, capital, and people, the single market has fostered greater economic efficiency and competitiveness, as well as increased trade and investment opportunities within the EU. The introduction of the euro as the common currency for a majority of EU member states has further enhanced economic integration by eliminating exchange rate fluctuations and transaction costs, facilitating cross-border transactions, and promoting financial stability. These measures have strengthened the economic ties and interdependence among EU member states, leading to a more integrated and cohesive economic system within the European Union.

Related terms

Eurozone: The Eurozone is the monetary union of 19 of the 27 European Union member states that have adopted the euro as their common currency and sole legal tender.

European Commission: The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties, and managing the day-to-day business of the EU.

European Parliament: The European Parliament is the directly elected legislative body of the European Union, consisting of 705 members who represent the interests of the citizens of the EU member states.