what is EU and how it works?

1. TEAM MEMBERS
Kajal Sharma Shivani Pandey
Karan Gujral Shriya Chaurasia
Mohit Bhat Surender Singh
Prasanth Narisetty Vamsi Krishna
Prudhvi Sadhu

2. The EU is a unique economic and
political partnership between 28
European countries that together
cover much of the continent.

3. created in the aftermath of the Second World War.
the idea being that countries who trade with one
another become economically interdependent and
so more likely to avoid conflict.
the European Economic Community (EEC), created
in 1958
Initially increasing economic cooperation between
six countries: Belgium, Germany, France, Italy,
Luxembourg and the Netherlands
World’s largest trading bloc, and second largest
economy, after USA

5. • President is appointed
(not elected) by the EU
Council for a 5-year
term and confirmed
by Parliament.
• 15 judges and 8 advocate generals appointed
by member states for 6 year terms.
• The Court of Justice ensures that Community
law is uniformly interpreted and effectively applied.
• It has jurisdiction in disputes involving Member States, EU institutions,
businesses and individuals
President of the EU
Court of Justice

6. FUNCTIONS
aim to ensure free
movement of people,
goods, services, and
capital, enact legislation in
justice and home affairs,
and maintain common
policies on trade,
agriculture, fisheries, and
regional development
to get countries
using the Euro to
enact fiscal policies
that will keep the
Euro stable
create and
implement laws
and regulations
that integrate the
member states of
the EU
countries of the EU are
supposed to have uniform
laws and policies concerning a
variety of things (like
immigration, labor, weights
and measures -- all sorts of
things).
decide how this
integration should
be done and to
carry it out.
to devise
the
currency

8. The Single Market
Based on Four Freedoms:
– Free movement of goods;
– Free movement of capital;
– Free movement of persons;
– Free movement of services.
GDP boosted by nearly €900 billion over 10
year period 1992-2002 (over $1 trillion) and
2.5 million jobs created from the single
market alone.

9. • The EU created European single currency, euro to help
build a single market by, for example: easing travel of
citizens and goods, eliminating exchange rate
problems, providing price transparency, creating a
single financial market, price stability and low
interest rates.
• The EU has established a single economic market
which involves the free circulation of goods, capital,
people and services within the territory of all its
members.
• the EU generated an estimated nominal GDP of
US$18.39 trillion in 2008, amounting to over 22% of
the world's total economic output.

10. • Liberalizing trade in goods and services could bring
a potential 20% boost to bilateral trade and GDP
gains of up to $12 billion for Canada by 2014.
• In 2008, Canadian goods and services exports to
the EU totalled $52.2 billion, an increase of 3.9%
from 2007, and imports from the EU amounted to
$62.4 billion.
• the EU is the second largest source of foreign direct
investment (FDI) in Canada, with the stock of FDI
amounting to $133.1 billion at the end of 2008.

12. How EU decisions are made
The EU’s standard decision-making procedure is known as 'Ordinary Legislative
Procedure’ (ex “codecision"). This means that the directly elected European
Parliament has to approve EU legislation together with the Council (the governments
of the 28 EU countries). The Commission drafts and implements EU legislation.
EU treaties
The European Union is based on the rule of law. This means that every action taken
by the EU is founded on treaties that have been approved voluntarily and
democratically by all EU member countries.
The Treaty of Lisbon increased the number of policy areas where 'Ordinary Legislative
Procedure' is used. The European Parliament also has more power to block a proposal
if it disagrees with the Council.

13. The budget of the EU Parliament for 2012 is 1.7 billion euros, 24% of this amount is spent for
basic expenditures of MPs, such as travel, accommodation, food etc..;
• The number of employees in the Parliament is 6166; 3279 of them are located in Brussels,
80 in Strasbourg, while others are in Luxembourg;
• In 2012 MPs received a monthly salary of € 7.957;
• 1.07 million EU citizens signed an online petition to the EP requesting the European
parliament to be permanently located;
• Approximately one third of MPs are women;
• The turnout in general elections in 2009 was 43.4% , while in 2004 it was 45.6%;
the maximum number of members of the European Parliament, as set by the Treaty of Nice,
is 732. After the election in June 2004 the number of MPs increased to 754, while before it
was 626.

14. • European harmony- Europe has managed to heal the
divisions which were so painfully exposed in the World War –II.
EU was awarded the Nobel Peace Prize in 2012 for helping to
promote peace and international co-operation.
• Free trade within the bloc- Free trade and removal of non-
tariff barriers have helped reduce costs and prices for
consumers.
• Market access and trade creation- Easier access to each
other’s markets & high cost domestic producers to be
replaced by lower cost, and more efficient imports.
• Flexible Economy- Free movement of labour and capital
have helped create a more flexible economy & the immigration
of workers helped to fill labour market shortages.
• Protection- Firms inside the bloc are protected from cheaper
imports from outside, such as cheap imports from China and
Vietnam.

15. • Loss of benefits- The benefits of free trade between
countries in different blocs is lost.
• Distortion of trade-Trading blocs are likely to distort world
trade, and reduce the beneficial effects of specialization and
the exploitation of comparative advantage.
• Inefficiencies and trade diversion- Inefficient producers
within the bloc can be protected from more efficient ones
outside the bloc.
• Unemployment- due to prolong recession.
• Prolonged Fall in GDP- Economic stagnancy
• More bureaucracy less democracy- EU has created
extra layers of bureaucracy whilst taking away decision
making process further from local communities.