THE EUROPEAN UNION How do individuals, businesses and economies benefit from using the Euro?

Where in the world is the EU?

28 508 7 30 56 million Member States Combined population of EU Member States 7 Percent of world’s population 30 Percent of global GDP Percent of combined worldwide Official Development Assistance 56

EU Population in the World 1343 508 314 127 143 EU China Japan Russia United States 5 Population in millions, 2012

Area of the EU compared to the rest of the world 16 889 9327 9159 4290 365 EU China Japan Russia United States 6 Surface area, 1 000 km²

Founding Members 1952: Belgium France Germany Italy Luxembourg Netherlands

1973 Denmark Ireland United Kingdom

1981 Greece

1986 Portugal Spain

Poland’s Solidarity Party gains legal status 1989 Fall of the Berlin Wall sets the stage for unifying Europe and EU enlargement Poland’s Solidarity Party gains legal status

1995 Austria Finland Sweden

2004 Cyprus Czech Republic Estonia Hungary Latvia Lithuania Malta Poland Slovakia Slovenia

2007 Bulgaria Romania

Free movement of goods No customs duties between the member states The EU also prohibits charges having an equivalent effect of customs duties.

Free movement of services The freedom prohibits restrictions on free circulation of services within Member States. Examples: Postal service Internet purchases Banking

Free movement of people The right to travel. The right to work in any member state. The right to settle in any member state.

Free movement of capital Capital within the EU may be transferred in any amount from one country to another.

The Euro € In 1999, the euro area was established as a currency in eleven of the then fifteen EU Member States. Of the 28 EU Member States today, seventeen have adopted the euro. Estonia most recently joined in 2011, and Latvia is expected to adopt the euro in 2014. In response to the economic and financial crisis, the EU created a new set of rules on enhanced EU economic governance which entered into force in December 2011.

Before the Euro: a multitude of currencies Cumbersome inter-state trading Comparing prices more difficult Currency exchange can be unpredictable in contracts/ loans 19

The Euro: a single currency for Europeans The 12 countries that introduced the Euro in 2001: Austria Belgium Finland France Germany Greece Italy Ireland Luxembourg Netherlands Portugal Spain 20

The Euro: a single currency for Europeans Can be used everywhere in the 17-country euro area Coins: one side with national symbols, one side common Notes: no national side New Euro countries since 2001: EU countries using the euro in 2013 EU countries not using the euro Cyprus (2006) Malta (2006) Slovakia (2008) Slovenia (2009) Estonia (2011)

Some of the Euro’s benefits International trade is facilitated Currency exchange costs are eliminated European Central Bank keeps price inflation low so interest rates also remain low Travelling is made easier Comparing prices is made simpler 22

Celebrating the European Union - A Half Century of Change and Progress Since the creation of the EU over half a century ago, Europe has enjoyed the longest period of peace in its history. EU enlargement has helped overcome the division of Europe – contributing to peace, prosperity, and stability across the continent. A single market and a common currency benefit companies and consumers. EU has united the citizens of Europe – while preserving Europe’s diversity. European Union United in diversity