1. Trading Blocks: The European Union Bartu and Gabriele

3. What is the EU, origins and development Economic and Political Union 28 member states Numerous institutions Schengen Area (1995) Eurozone (2002)

4. What is the EU, origins and development Last major amendment to the constitutional basis of the EU – Treaty of Lisbon Latest Figures 7.3% of world population 23% of world’s GDP (2012)

5. The EU’s Aim: Free movement of People Goods Services Capital

6. Which countries benefit from the EU Copenhagen criteria to join

8. Copenhagen criteria Democracy The rule of law Human rights Respect for and protection of minorities The existence of a functioning market economy The capacity to cope with competitive pressure and market forces within the Union

9. EU and the Single Market Economic and Monetary Union (EMU) 17 members (Eurozone) Single currency (Euro) Free circulation of goods, capital, people, services Common external tariff on all imports

10. Why have a monetary union? Easier travel (citizens, goods, services) No exchange rate issues More price stability Political symbol of unity

11. EU and Competition European Commission = competition regulator Aim: Undistorted competition within the single market  Antitrust issues  Approving mergers  Breaking up cartels  Economic liberalisation  Preventing unfair state subsidies

12. EU and Agriculture Common Agricultural Policy (1962)  Increasing production  High quality of life for farmers  Stabilising food markets  Reasonable prices for consumers

13. Issues with the CAP Price control mechanisms  Excess of supply  Purchase of stock by EU Dumping of stock outside EU  Damages international competitors  Overproduction due to subsidies  Environmental damage (farming)

14. EU’s Achievements Peace and stability in Europe Economic freedom (single market) Unified security and justice systems Common tariff policy Common agricultural policy (CAP) Environmental regulations

15. EU’s Setbacks Increased bureaucracy Less national identity (culture) Economic cost to members Inefficient policies (agricultural over-supply) Migration-related issues (employment) Problems with the Euro  Uniform interest rates (ECB)  Limits fiscal policy  Countries cannot devaluate  Economic crisis harms all