Presentation is loading. Please wait.

Presentation is loading. Please wait.

THE EUROPEAN UNION Background 11 June 2016 1 Image by Rock Cohen. Used with permission europa.eu – official website of the EU.

Similar presentations


Presentation on theme: "THE EUROPEAN UNION Background 11 June 2016 1 Image by Rock Cohen. Used with permission europa.eu – official website of the EU."— Presentation transcript:

1 THE EUROPEAN UNION Background 11 June 2016 1 Image by Rock Cohen. Used with permission europa.eu – official website of the EU

2 THE ROLE OF THE EU  European Union: An organisation of 27 countries which aims to increase European trade and co- operation  The EU is the largest market in the world economy, with around 493 million people 1 and 30% of world GDP 2 11 June 2016 2 * 1. Source: Wikipedia 2. Source: International Monetary Fund: World Economic outlook database  2006:  EU GDP = US$14.2 trillion (£7.3 trillion)  World GDP = US$47.8 trillion (£24.5 trillion)  1 trillion = 1,000 billion = 1,000,000 million = 1,000,000,000,000

3 BACKGROUND THE GROWTH OF THE EU  The EU was set up by the Treaty of Rome in 1958  Members: 11 June 2016 3 Germany (W.) France Italy Belgium The Netherlands Luxembourg UK Denmark Eire Greece Spain Portugal Austria Sweden Finland (1990: Reunification of Germany) 19521973198119861995 * Lithuania Malta Poland Slovakia Slovenia Bulgaria Romania 20042007 Cyprus Czech Republic Estonia Hungary Latvia

4 EU MEMBERS 11 June 2016 4 * Cyprus Spain Portugal UK Ireland France Finland Sweden Latvia Estonia Lithuania Poland Czech Rep Austria Germany Greece Italy Slovakia Belgium Denmark Hungary Netherlands Romania Bulgaria Slovenia Malta Luxembourg

5 THE EUROPEAN UNION Single European Market 11 June 2016 5 Image by Dusty Davidson. Used with permission europa.eu – official website of the EU

6 SINGLE EUROPEAN MARKET  In setting up a single market the idea was to make selling products anywhere in Europe as easy as selling at home  No tariffs and quotas  Common safety regulations etc.  No exchange rates 11 June 2016 6 *

7 ADVANTAGES TO BUSINESS OF OPERATING WITHIN THE EU  Free access to huge potential markets  Economies of scale gained from operating in a larger market  Protection from outside competition by a ‘Common External Tariff’  Competition from other EU firms provides an incentive to improve efficiency 11 June 2016 7 *

8 DISADVANTAGES TO BUSINESS OF OPERATING WITHIN THE EU  The Common External Tariff has increased the cost of imports from outside the EU  Businesses in the EU have free access to the UK market  Shelter from external competition can reduce the incentive for efficiency 11 June 2016 8 *

9 SOCIAL CHAPTER (A PART OF THE MAASTRICHT TREATY)  The EU aims to improve the working conditions of EU workers  Main conditions:  Minimum wage  Maximum working week  Equal treatment for men and women 11 June 2016 9 *

10 SOCIAL CHAPTER TASK  Find out about the national minimum wage  How much is the minimum wage?  Is there a lower minimum for under 21s and under 18s? 11 June 2016 10 * DTI website

11 EURO AREA MEMBER STATES  There are currently 18 member states in the euro area.  Austria Belgium  Cyprus Estonia  Finland France  Germany Greece  Ireland Italy  Latvia Luxembourg  Malta Netherlands  Portugal Slovakia  Slovenia Spain 11 June 2016 11

12 BENEFITS OF MEMBERSHIP OF THE EURO  Reduced uncertainty – no exchange rate fluctuations make long term planning easier  Reduced transaction costs – no commission to pay on euro transactions  Economies of scale – easier for European firms to merge and conduct business 11 June 2016 12 *

13 DISADVANTAGE OF THE EURO  Members lose much control over their own economies since the government’s main monetary policy tool (interest rates) is controlled by the European Central Bank 11 June 2016 13 * Image by Jeff Barnes. Used with permission

14  Complete notes that explain the what the following are and their main purpose:  The European Commission  The Council of Ministers  The European Parliament  The European Court of Justice  The World Trade Organisation 11 June 2016 14 * Image by Rock Cohen. Used with permission RESEARCH TASK


Download ppt "THE EUROPEAN UNION Background 11 June 2016 1 Image by Rock Cohen. Used with permission europa.eu – official website of the EU."

Similar presentations


Ads by Google