The EUROPEAN UNION EUROPEAN UNION.

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The EUROPEAN UNION EUROPEAN UNION

STANDARDS: SS6E8 Analyze the benefits of and barriers to voluntary trade in Europe. d. Describe the purpose of the European Union and the relationship between member nations.   © Brain Wrinkles

The EUROPEAN UNION

History The European Union (EU) is an economic and political partnership between many European countries. After WWII ended, France and Germany came up with a plan to ensure the countries would never go to war with each other again. The result was a deal signed by 6 countries in 1957. In 2016, the EU has grown to 27 members.

*The UK withdrew from the EU in 2016.

The European Union flag was designed by Arsene Heitz and Paul Levy in 1955.

Purpose The European Union was originally established to set up free trade among member countries. Today, the EU is a powerful trade bloc that makes up 1/5th of the world’s trade. Goods produced in Europe can move freely, without tariffs, to other European nations, which leads to huge cost savings to consumers and businesses.

Purpose Even though the EU’s original purpose was to encourage free trade within Europe, it now has several other important interests: Creating a stable, peaceful relationship between countries Ensuring the safety and security of its members Promoting social issues like protecting human rights and preserving the environment The European Union members work together for advantages that would be out of their reach if each were working alone.

Together The EU believes that when countries work together they are a more powerful force in the world because they involve: more money, more people, and more land areas. This helps make small countries more competitive in the world market.

The US is much larger than separate European countries. When the EU countries combine, they have more people and a larger economy, and they can compete in a global economy.

Benefits The EU has built a strong relationship among its member nations. Not having tariffs has led to improved trade and higher standards of living among members. Wealthy countries are sharing wealth with poorer countries. Citizens are allowed to move freely among member countries’ in order to find better jobs. The EU’s strict environmental standards have helped some countries improve their environment.

Euro The EU’s most important economic accomplishment is the establishment of a single currency called the euro. A common currency makes trade easier, more efficient, and less expensive. Countries who use the euro do not have to worry about exchanging currency. 19 member countries have chosen to give up their own currency and exchange it for euros. For example, French francs and German marks have been replaced by the euro.

EU Members 2016 Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Iceland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden

Government The European Union does NOT handle all the government business for the members. It acts as a confederation. Each country still makes its own laws, has a military, and elects its leaders.

Government There is, however, a European Parliament, which is the only directly elected EU body. It does not represent the countries’ governments, but rather the citizens of the EU. Elections have been held every 5 years since 1979. The European Parliament CANNOT pass laws. In recent years, the European Parliament’s powers have increased. Not every country has been happy with this…

European Union Parliament Building in Strasbourg, France

European Union Parliament Building in Strasbourg, France

Brexit In June 2016, the people in the United Kingdom voted to leave the European Union. The people who voted “leave” say they want the UK to be less influenced by other countries and to have its own laws rather than having to go by the rules of the EU. They believed the UK was being held back by the EU, which they said imposed too many rules on business and charged billions of pounds a year in membership fees for little in return.

The UK’s Prime Minister, David Cameron, supported remaining part of the EU. When the country voted to leave, he decided to step down as the country’s leader.

Brexit Brexit supporters also wanted the UK to take back full control of its borders and to reduce the number of people coming into the country to live and/or work. The UK will continue to abide by EU treaties and laws, but not take part in any decision-making, while it negotiates a withdrawal agreement and the terms of its relationship with the now 27 nation bloc.

Non-Members There are several other countries that are NOT EU members, including Turkey, Switzerland, Iceland, & Russia. WHY? Turkey’s culture, stability, & location to the Middle East causes some EU members to not want Turkey to join. Switzerland has one of the world’s highest standards of living & prefers its economy to not be regulated under the EU. The EU has strict limits on the fishing industry, & Iceland does not want the EU’s control on its most important economic activity. Russia prefers to be an independent world leader over its own resources and economy.