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EU Overview
- 1.
- 2. o 500 millionpeople o 23 languages o Expanded from 6 to 27 countries Potential countries to join the EU: o Bosnia & Herzegovina o Montenegro o Iceland o Albania o Serbia o Turkey
- 3. The EU isa single market and has a standardised system of laws which apply in all member states. Within the Schengen Area (22 EU and 4 non EU states) passport controls have been abolished. EU policies aim to ensure the free movement of people, goods, services & capital The EU maintains common policies on trade, agriculture, fisheries & regional development. A monetary union, the euro zone, was established in 1999 and is composed of 17 member states.
- 4. After World WarII, European integration was seen as a route to peace. 1951: European Coal & Steel Community, pooled the national heavy industries. Founding members: Belgium, France, Italy, Luxembourg, the Netherlands and West Germany. 1957: Treaty of Rome established the European Economic Community: a customs union. 1973: Communities enlarged to include Denmark, Ireland, and the United Kingdom. 1993: Maastricht: The EU was formally established. In 2004, the EU saw its biggest enlargement to date when Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia joined the Union.
- 8. Issues The average GDPper head for the new member states (2004) was 40% of the average for existing EU countries, making them an economic burden. The failure of many eurozone countries to stick to the rules on government debt triggered a financial crisis in 2009. Greece was burdened with debt amounting to 113% of GDP - nearly double the eurozone limit of 60%. 10bn-euro bailout package for Greece. 85bn euros was agreed on for Ireland, and a 78bn-euro bailout was approved for Portugal. Bailouts failed to address a continuing crisis of confidence in the currency and to heal rifts among the major EU economies on how to deal with it.
- 10. More than 40% of trade is with EU partners The single market means UK citizens are free to move, live , study and trade anywhere within the EU Increased Migration, people migrating to the UK to find work, leads to higher unemployment for UK citizens EU competition law gives firms the opportunity to do business across the EU , stopping bigger firms abusing their power by setting up cartels and monopolies UK has had many economic gains from membership – raised UK GDP by 3-5% and if we withdrawal GDP would decline by 2.25% permanently due to lower FDI leading to lower technical progress Competition has increased since membership due to pressures on firms to reduce prices by increasing efficiency- fall in prices of 3.9% and an increase in quality in order to differentiate products
- 11. David Cameron is planning a national vote on whether Britain should quit the EU he said he wanted to renegotiate the Uk’s relationship with the EU and give people the choice between staying in under the new terms or leaving the EU If the UK left we would suffer the consequences including lower growth and lower investment as a lack of confidence and act as a drag on investment decisions If it goes ahead the referendum is due to be held between 2015 and 2017 http://www.bbc.co.uk/news/uk-politics-21148282 The UK wants secure access to the single market but does not want to be involved in unnecessary policies http://www.bbc.co.uk/news/uk-politics-20448450 The EU launched a clean fuel strategy to ensure the build up of alternative fuel stations across Europe. There will be a minimum level of infrastructure for clean fuels e.g. electricity , hydrogen and natural gas, this is a major opportunity for Europe to establish a strong position in the global market and become more resource efficient