European Union

Definition

The European Union (EU) is a unique political and economic union of 27 member states located primarily in Europe. It was established to foster cooperation, promote peace, and ensure the free movement of goods, services, capital, and people among its member nations.

5 Must Know Facts For Your Next Test

1. The European Union was established in 1993 through the Maastricht Treaty, which built upon previous European economic and political integration efforts.
2. The EU has a supranational structure, with member states delegating some of their sovereignty to EU institutions, such as the European Parliament, the European Commission, and the European Court of Justice.
3. The EU's common market and customs union have eliminated trade barriers between member states, promoting the free movement of goods, services, capital, and people.
4. The Eurozone, a subset of the EU, is the monetary union of 19 member states that have adopted the euro as their common currency.
5. The EU has expanded its membership over time, growing from 6 founding members to 27 current member states, with several other countries in the process of accession.

Review Questions

• Explain how the European Union contributes to global governance as a regional intergovernmental organization (IGO).
  • As a regional IGO, the European Union plays a significant role in global governance by coordinating the policies and actions of its member states on a wide range of issues, including trade, environmental protection, and security. The EU's supranational structure allows it to act independently of its member states, enabling it to represent European interests on the global stage and participate in international organizations and negotiations. Additionally, the EU's common market and economic integration have made it a major economic power, allowing it to shape global economic policies and institutions.
• Discuss the European Union's role as a non-state actor in international political economy (IPE) beyond its function as an IGO.
  • The European Union is not only a regional IGO, but also a significant non-state actor in the field of international political economy. As a common market and customs union, the EU has the ability to negotiate trade agreements and shape global trade policies, often acting independently of its member states. Additionally, the Eurozone and the common currency have given the EU a significant influence over global financial and monetary policies. The EU also plays a role in regulating multinational corporations and promoting sustainable development, demonstrating its ability to impact the global economy as a non-state actor.
• Analyze how the evolution of the European Union from the post-Cold War period to the present day reflects broader trends in modernization theory and current issues in international political economy.
  • The development of the European Union from the post-Cold War period to the present day aligns with the tenets of modernization theory, which posits that economic and social development leads to the emergence of more complex political and social institutions. The EU's expansion, deepening economic integration, and the establishment of the Eurozone reflect the modernization of Europe's political and economic systems. However, the EU has also faced challenges in recent years, such as the Eurozone crisis and the rise of Euroscepticism, which highlight the ongoing tensions between national sovereignty and supranational governance. These issues are emblematic of broader trends in international political economy, where the forces of globalization and regionalization compete with the interests of nation-states, creating a complex and evolving landscape for policymakers and international organizations.

Related terms

Supranational Organization: An international organization in which member states delegate authority and decision-making power to the organization, which then acts independently of the member states.

Common Market: An economic union of countries that have agreed to eliminate tariffs, quotas, and other trade barriers between them, allowing the free flow of goods, services, capital, and sometimes labor.

Eurozone: 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.