THE EUROPEAN UNION

THE EU How many countries are there in the EU?

History The EU was formed in 1958 Its aim was to stop war between the governments of Europe The EU is run by a Commission which is a group of people represented by governments of members states

Single Market Since 1992 Europe has been a single market What does this mean? : Free Trade : no barriers to trade Freedom of movement of goods, services and people. For example you can sell anything anywhere in the EU

Why is this good for us? Lower prices Increased choice Bigger market Lower costs for producers Increase in profit

Why is the EU important to business? Makes it easier to trade within Europe (no tariffs or quotas) The use of the Euro Standard health and safety regulations (including those on pollution, the environment) Standard copyright and patent laws Loans and grants for areas of high unemployment and if income below the EU average

So what’s the problem? Different languages Different market characteristics Distances Different cultures

Problems for the UK Increasing population - employment Continue to use the sterling Competition

Advantages of the Single Currency Lower transaction costs : no commission on foreign exchange Reduction in transaction costs Lower costs for business Lower prices for consumers

Disadvantages of the Single currency Convert everything to accept Euro Some countries might suffer if they are doing badly. They used to be able to be able to depreciate currency.

Activities 1.Who benefits from the single European single market. Please find examples 2.Explain 2 benefits and 2 problems of the single currency.