Economic Recovery in Europe West German Economic Miracle Assisted by US to fight cold war Rebuild industry High quality German goods in demand around world Top three economies in the world Weakened after reunification with East Germany

European Economic Unification Need to compete with US and Japan European Coal and Steel Community 1952 regulate coal and steel industries The Common Market 1957 Free trade/no tariffs 1973 Maastricht Treaty/European Union/new currency Euro dollar/European Parliament

The European Union Based on the rule of law and democracy 27 member countries

Timeline European Coal and Steel Community 1951 The Maastricht Treaty on European Union 1992 Amsterdam Treaty 1997

Principal Objectives Establish European citizenship Ensure freedom, security and justice Promote economic and social progress Assert Europe’s role in the World

EU Institutions European Parliament Council of Union European Commission Court of Justice Court of Auditors

The Union Presidency rotates every six months among member nations All trade barriers broken down Free movement of people, products and ideas Focus on agriculture and industrial development Euro dollar began to replace national currency Jan 2002 national currencies as legal currencies will be abolished Euro notes come in 7 denominations: 5, 10, 20, 50, 100, 200, 500. Euro coins: 1, 2, 5, 10, 20, 50, Euro coins: 1 and 2 cents coins, 50 cent coin

Global and Regional Economic Organizations The Group of 8: world’s leading industrial nations: Britain, Canada, France, Germany, Italy, Japan, Russia, the United States. Concern: speed with which money moves around the world. Trillion dollars a day changes hands Economic goals: Lower tariffs, prevent recessions, reduce chronic unemployment,

World Bank Stimulates economic growth in developing nations by means of loans and advice. 180 members Located in Washington DC. Bank President chosen by US President

International Monetary Fund Founded in 1944 Helps developing nations when the nations can not get capital from any other source Requires nations develop free market economies Cut budget deficits South Korea and Russia

World Trade Organization GATT: General Agreement on Tariffs and Trade Goal: increase free trade around the world. 117 members Against tariffs Fair competition

NAFTA North American Free Trade Agreement Canada, Mexico, and United States Free trade no tariffs Hurts United States because of labor laws and environment laws in Mexico

OPEC Organization of Petroleum Exporting Countries. Controls price of oil on the world markets. 1970s cut off oil to US