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European Union


European Union

Abbr. EU An economic and political union established in 1993 after the ratification of the Maastricht Treaty by members of the European Community and since expanded to include numerous Central and Eastern European nations. The establishment of the European Union expanded the political scope of the European Economic Community, especially in the area of foreign and security policy, and provided for the creation of a central European bank and the adoption of a common currency, the euro.

European Union

n (Government, Politics & Diplomacy) an organization created in 1993 with the aim of achieving closer economic and political union between member states of the European Community. The current members are Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the UK. Abbreviation: EU

Eu′ropean Un′ion


n. an association of European nations formed in 1993 for the purpose of achieving political and economic integration. Formerly known as the European Economic Community, the European Union's member states are Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom. Abbr.: EU
Thesaurus
Noun1.European Union - an international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its membersEuropean Union - an international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members; "he tried to take Britain into the Europen Union"Common Market, EC, EEC, European Community, European Economic Community, EU, Europeglobal organization, international organisation, international organization, world organisation, world organization - an international alliance involving many different countriesDanmark, Denmark, Kingdom of Denmark - a constitutional monarchy in northern Europe; consists of the mainland of Jutland and many islands between the North Sea and the Baltic SeaKingdom of Sweden, Sverige, Sweden - a Scandinavian kingdom in the eastern part of the Scandinavian PeninsulaDeutschland, FRG, Germany, Federal Republic of Germany - a republic in central Europe; split into East Germany and West Germany after World War II and reunited in 1990Finland, Republic of Finland, Suomi - republic in northern Europe; achieved independence from Russia in 1917Ellas, Greece, Hellenic Republic - a republic in southeastern Europe on the southern part of the Balkan peninsula; known for grapes and olives and olive oilItalia, Italian Republic, Italy - a republic in southern Europe on the Italian Peninsula; was the core of the Roman Republic and the Roman Empire between the 4th century BC and the 5th century ADAustria, Oesterreich, Republic of Austria - a mountainous republic in central Europe; under the Habsburgs (1278-1918) Austria maintained control of the Holy Roman Empire and was a leader in European politics until the 19th centuryBelgique, Belgium, Kingdom of Belgium - a monarchy in northwestern Europe; headquarters for the European Union and for the North Atlantic Treaty OrganizationBritain, Great Britain, U.K., UK, United Kingdom, United Kingdom of Great Britain and Northern Ireland - a monarchy in northwestern Europe occupying most of the British Isles; divided into England and Scotland and Wales and Northern Ireland; `Great Britain' is often used loosely to refer to the United KingdomEire, Ireland, Irish Republic, Republic of Ireland - a republic consisting of 26 of 32 counties comprising the island of Ireland; achieved independence from the United Kingdom in 1921France, French Republic - a republic in western Europe; the largest country wholly in EuropeHolland, Kingdom of The Netherlands, Nederland, Netherlands, The Netherlands - a constitutional monarchy in western Europe on the North Sea; half the country lies below sea levelGrand Duchy of Luxembourg, Luxembourg, Luxemburg - a grand duchy (a constitutional monarchy) landlocked in northwestern Europe between France and Belgium and Germany; an international financial centerPortugal, Portuguese Republic - a republic in southwestern Europe on the Iberian Peninsula; Portuguese explorers and colonists in the 15th and 16th centuries created a vast overseas empire (including Brazil)Espana, Kingdom of Spain, Spain - a parliamentary monarchy in southwestern Europe on the Iberian Peninsula; a former colonial power
Translations
欧洲联盟

European Union

欧洲联盟zhCN

European Union


European Union

(EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community (EC), an economic and political confederation of European nations, and other organizations (with the same member nations) that are responsible for a common foreign and security policy and for cooperation on justice and home affairs. In Dec., 2009, following the ratification of the Treaty of Lisbon, the EU officially replaced and succeeded the EC. Twenty-eight countries—Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany (originally West Germany), Great Britain (officially in the process of withdrawing as of 2017), Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden—are full members of the organizations of the EU.

Organizational Structure

The former EC, which formed the core of the EU, originally referred to the group of Western European nations that belonged to each of three treaty organizations—the European Coal and Steel CommunityEuropean Coal and Steel Community
(ECSC), 1st treaty organization of what has become the European Union; established by the Treaty of Paris (1952). It is also known as the Schuman Plan, after the French foreign minister, Robert Schuman, who proposed it in 1950.
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 (ECSC), the European Economic CommunityEuropean Economic Community
(EEC), organization established (1958) by a treaty signed in 1957 by Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany (now Germany); it was known informally as the Common Market.
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 (EEC), and the European Atomic Energy CommunityEuropean Atomic Energy Community
(Euratom or EAEC), economic organization that came into being as the 3d treaty organization of what has become the European Union; established by the Treaty of Rome (1958).
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 (Euratom). In 1967 these organizations were consolidated under a comprehensive governing body composed of representatives from the member nations; further modifications since then have established the institutions of the EU as the European ParliamentEuropean Parliament,
an institution of the governing body of the European Union (EU). It convenes on a monthly basis in Strasbourg, France; most meetings of the separate parliamentary committees are held in Brussels, Belgium, and its Secretariat is located in Luxembourg.
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, the European CouncilEuropean Council,
institution of the European Union (EU) responsible for defining the EU's general political direction and priorities. It is composed of an elected president (who serves a two-and-a-half-year term), the heads of government of the EU nations, and the president of
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, the Council of the European UnionCouncil of the European Union,
institution of the European Union (EU) that has the final vote on legislation proposed by the European Commission and approved by the European Parliament; in some cases the council, unlike the parliament, may initiate new laws.
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, the European CommissionEuropean Commission
(EC), institution of the European Union (EU) invested with executive powers; it also is the main EU institution that initiates legislation. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the
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, and the Court of Justice of the European UnionCourt of Justice of the European Union,
judicial institution of the European Union (EU). Located in Luxembourg, it was founded in 1958 as the joint court for the three treaty organizations that were consolidated into the European Community (the predecessor of the EU) in 1967.
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, the European Central Bank (see European Monetary SystemEuropean Monetary System,
arrangement by which most nations of the European Union (EU) linked their currencies to prevent large fluctuations relative to one another. It was organized in 1979 to stabilize foreign exchange and counter inflation among members.
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), and the Court of Auditors.

Although the EU has no single seat of government, many of its most important offices are in Brussels, Belgium. The European Commission is headquartered there, as is the European Council and the Council of the European Union; it is also where the various committees of the European Parliament generally meet to prepare for the monthly sessions in Strasbourg, France. The European Central Bank is in Frankfurt, Germany; the Court of Justice and the Court of Auditors are in Luxembourg, Luxembourg.

Evolution

The history of the EU began shortly after World War II, when there developed in Europe a strong revulsion against national rivalries and parochial loyalties. While postwar recovery was stimulated by the Marshall PlanMarshall Plan
or European Recovery Program,
project instituted at the Paris Economic Conference (July, 1947) to foster economic recovery in certain European countries after World War II. The Marshall Plan took form when U.S. Secretary of State George C.
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, the idea of a united Europe was held up as the basis for European strength and security and the best way of preventing another European war. (This last motivation in particular informed the awarding of the 2012 Nobel Peace Prize to the European Union, which also mentioned the EU's fostering of democracy in its member nations.) In 1950 Robert SchumanSchuman, Robert
, 1886–1963, French statesman and lawyer, b. grand duchy of Luxembourg. A member of the Catholic Mouvement Républicain Populaire (MRP), he was finance minister (1946, 1947) and premier (1947–48).
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, France's foreign minister, proposed that the coal and steel industries of France and West Germany be coordinated under a single supranational authority. France and West Germany were soon joined by four other countries—Belgium, Luxembourg, the Netherlands, and Italy—in forming (1952) the ECSC. The EEC (until the late 1980s it was known informally as the Common Market) and Euratom were established by the Treaty of Rome in 1958. The EEC, working on a large scale to promote the convergence of national economies into a single European economy, soon emerged as the most significant of the three treaty organizations.

The Brussels Treaty (1965) provided for the merger of the organizations into what came to be known as the EC and later the EU. Under Charles de Gaullede Gaulle, Charles
, 1890–1970, French general and statesman, first president (1959–69) of the Fifth Republic. The World Wars

During World War I de Gaulle served with distinction until his capture in 1916. In The Army of the Future (1934, tr.
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, France vetoed (1963) Britain's initial application for membership in the Common Market, five years after vetoing a British proposal that the Common Market be expanded into a transatlantic free-trade area. In the interim, Britain had engineered the formation (1959) of the European Free Trade Association. In 1973 the EC expanded, as Great Britain, Ireland, and Denmark joined. Greece joined in 1981, and Spain and Portugal in 1986. With German reunification in 1990, the former East Germany also was absorbed into the Community.

The Single European Act (1987) amended the EC's treaties so as to strengthen the organization's ability to create a single internal market. The Treaty of European Union, signed in Maastricht, the Netherlands, in 1992 and ratified in 1993, provided for a central banking system, a common currency to replace the national currencies (the euro), a legal definition of the EU, and a framework for expanding the EU's political role, particularly in the area of foreign and security policy. The member countries completed their move toward a single market in 1993 and agreed to participate in a larger common market, the European Economic Area (est. 1994), with most of the European Free Trade AssociationEuropean Free Trade Association
(EFTA), customs union and trading bloc; its current members are Iceland, Liechtenstein, Norway, and Switzerland. EFTA was established in 1960 by Austria, Denmark, Great Britain, Norway, Portugal, Sweden, and Switzerland.
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 (EFTA) nations. In 1995, Austria, Finland, and Sweden, all former EFTA members, joined the EU, but Norway did not, having rejected membership for the second time in 1994.

A crisis within the EU was precipitated in 1996 when sales of British beef were banned because of "mad cow disease" (see prionprion
, abnormal form of a protein found in mammals, believed to cause a group of diseases known as prion diseases or transmissible spongiform encephalopathies. Well-known prion diseases are Creutzfeldt-Jakob disease (CJD) and kuru in humans, scrapie in sheep, bovine
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). Britain retaliated by vowing to paralyze EU business until the ban was lifted, but that crisis eased when a British plan for eradicating the disease was approved. The ban was lifted in 1999, but French refusal to permit the sale of British beef resulted in new strains within the EU. In 1998, as a prelude to their 1999 adoption of the euro, 11 EU nations established the European Central Bank. The euro was introduced into circulation in 2002 by 12 EU nations; additional EU nations have since adopted it.

The EU was rocked by charges of corruption and mismanagement in its executive body, the European CommissionEuropean Commission
(EC), institution of the European Union (EU) invested with executive powers; it also is the main EU institution that initiates legislation. Located in Brussels, Belgium, it was founded in 1967 when the three treaty organizations comprising what was then the
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 (EC), in 1999. In response the EC's executive commission including its president, Jacques SanterSanter, Jacques
(Jean Jacques Santer) , 1937–, Luxembourg political leader and European statesman. A lawyer and economist, he entered politics as a member of the Christian Social People's party in 1965 and later held several ministerial posts, notably finance minister
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, resigned, and a new group of commissioners headed by Romano ProdiProdi, Romano
, 1939–, Italian politician, premier of Italy (1996–98, 2006–8), b. Scandiano. Educated at the Catholic Univ. of Milan (grad. 1961), he is a trained economist and served (1978–79) as Italy's minister for industry; he also was a professor of
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 was soon installed. In actions taken later that year the EU agreed to absorb the functions of the Western European UnionWestern European Union
(WEU), European security and defense organization. It was set up in Brussels in 1955 as a defensive, economic, social, and cultural organization, consisting of Belgium, France, Germany, Great Britain, Italy, Luxembourg, and the Netherlands; Portugal and
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, a comparatively dormant European defense alliance, thus moving toward making the EU a military power with defensive and peacekeeping capabilities.

The installation in Feb., 2000, of a conservative Austrian government that included the right-wing Freedom party, whose leaders had made xenophobic, racist, and anti-Semitic pronouncements, led the other EU members to impose a number of sanctions on Austria that limited high-level contacts with the Austrian government. Enthusiasm for the sanctions soon waned, however, among smaller EU nations, and the issue threatened to divide the EU. A face-saving fact-finding commission recommended ending the sanctions, stating that the Austrian government had worked to protect human rights, and the sanctions were ended in September.

In 2003 the EU and ten non-EU European nations (Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Cyprus, and Malta) signed treaties that resulted in the largest expansion of the EU the following year, increasing the its population by 20% and its land area by 23%. Most of the newer members were significantly poorer than the largely W European older members. The old and new member nations at first failed to agree on a constitution for the organization; the main stumbling block concerned voting, with Spain and Poland reluctant to give up a weighted system of voting scheduled for 2006 that would give them a disproportionate influence in the EU relative to their populations. In Oct., 2004, however, EU nations signed a constitution with a provision requiring a supermajority of nations to pass legislation. The constitution, which needed to be ratified by all members to come into effect, was rejected by voters in France and the Netherlands in 2005, leading EU leaders to pause in their push for its ratification.

Meanwhile, in 2003 the EU embarked, in minor ways, on its first official military missions when EU peacekeeping forces replaced the NATO force in Macedonia (now North Macedonia) and were sent by the United Nations to Congo (Kinshasa); the following year the EU assumed responsibility for overseeing the peacekeepers in Bosnia. EU members also took steps toward developing a common defense strategy independent of NATO, and agreed in 2004 to admit Bulgaria and Romania in 2007. José Manuel BarrosoBarroso, José Manuel Durão
, 1956–, Portuguese politician, b. Lisbon. A leftist activist while in law school, he became a Social Democrat in 1980 and was first elected to the Portuguese parliament in 1985.
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 succeeded Prodi as president of the European Commission late in 2004. Accession talks with Turkey were partially suspended in Dec., 2006, over the issue of Turkish relations with Cyprus because Turkey was unwilling to open its ports to Cypriot trade unless the EU eased its trade restrictions on North Cyprus. Discussions with Turkey subsequently stalled over various issues, and the situation was aggravated by measures the Turkish government adopted in the aftermath of the 2016 coup attempt.

The EU opted for incremental reforms over a new constitution in 2007, when member nations signed the Lisbon Treaty. The treaty reorganized the European Council, established an elected president of the European Council and a single EU foreign policy official, and reformed the EU's system of voting, among other changes. (The reforms were phased in through 2017.) In June, 2008, however, Irish voters—the only national electorate given the opportunity to ratify the treaty—rejected it in a referendum, a potentially fatal setback. A year later, however, EU nations agreed on a number of guarantees to the Irish Republic that were designed to lead to a new Irish referendum on the treaty (several other nations also received various exemptions). Irish voters approved the treaty in a revote in Oct., 2009; ratification was completed the following month; and the treaty came into force in Dec., 2009.

Weaknesses in an EU system in which economic and monetary integration was not bolstered by political unity were revealed by the economic crisis of 2008, when measures such as bank-deposit guarantees adopted by some euro nations forced most EU nations to adopt similar measures in order to avoid bank runs. Eurozone nations were unable to agree on a common approach to the crisis and resulting recession, and subsequent high budget deficits in Greece and some other eurozone countries strained the monetary union and forced eurozone nations to adopt sometimes stringent austerity programs. At the same time, however, many non-euro European nations, whether members of the EU or not, found their financial systems stressed, at least initially, to a greater degree by the crisis than many euro nations did. In 2010 the effects of the crisis forced EU nations and the IMF to adopt a $950 billion package to aid financially troubled eurozone nations and support the euro; additional measures were adopted and additional funds set aside in 2011 and 2012, and in Oct., 2012, the eurozone's permanent European Statility Mechanism was established

By 2011 Greece, then Ireland, and later Portugal had been forced to accept international rescue packages, and they and some other EU nations were forced to adopt significant austerity budgets that led in many cases to economic recession, increased unemployment, and further budget deficits. In Mar., 2012, all but two EU nations (Britain and the Czech Republic) signed an agreement intended prevent future budget crises, though many criticized the accord for emphasizing budgetary discipline without consideration for its relationship to economic growth. Spain and Cyprus subsequently also sought international financial aid. At the same time, however, there was increasing public resistance to additional austerity measures in many hard-hit EU nations, and in the EU as a whole unemployment increased to record levels. In July, 2013, Croatia joined the EU.

In the 2014 elections for the European parliament, a number of parties on the far right and left that were strongly opposed to various aspects of the EU made significant gains, primarily in Great Britain, France, and Greece. Although pro-EU parties nonetheless won a significant majority of the seats, the vote was seen as a sign of increasing unhappiness with the EU within some of its member nations. The subsequent nomination of Jean-Claude JunckerJuncker, Jean-Claude,
1954–, Luxembourg political leader. A member of the Christian Social People's party, he was first elected to the Chamber of Deputies in 1984.
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 to succeed Barroso as president of the European Commission was strongly opposed by Great Britain, who called for choosing someone less identified with increased EU integration, but nearly all EU nations supported his nomination, and he was easily elected to the post.

Negotiations in 2015 over Greece's ongoing economic difficulties and debt produced divisions in the European Union, most notably between Germany and France (with France unsuccessfully favoring a less hardline approach), that combined with economic divisions reinforced national political agendas and undermined the sense of common European purpose and integration. Relations among EU nations were also strained in 2015 as individual countries struggled to cope with and reacted to an influx of more than a million refugees and migrants from the Middle East and parts of Africa. Many EU nations reimposed border controls in an attempt to control or stop the influx, and by early 2016 thousands of refugees and migrants in Greece became essentially trapped there. Beginning in Apr., 2016, the EU began deporting people who had crossed into Greece from Turkey without following immigration procedures back to Turkey, and later in the year the EU established a border and coast guard agency to assist EU nations with policing their borders. Migration remained a problem in subsequent years, both into Greece and into Italy and neighboring nations, though the scale greatly diminished.

In June, 2016, a majority of British voters approved leaving the EU in a national referendum, and the unity of the EU and the eurozone came under increasing pressure from nationalist and populist movements in other member countries in subsequent months, most notably in Hungary and Poland, where the governments adopted policies and enacted laws that brought those nations into conflict with the European Commission. The situation with respect to Poland and Hungary led the EU by 2018 to consider measures designed to increase protections for the rule of law as well as legal action by the Commission against both nations.

Great Britain formally initiated the process of withdrawing from the EU in Mar., 2017. At the same time, the remaining 27 members signed the Rome Declaration, which recognized that further progress toward integration could proceed at different paces for different groups of nations. Later in 2017, 23 members signed a defense integration agreement. In 2018 EU nations found themselves subjected to U.S. tariffs on steel and aluminum under the Trump administration, and imposed equivalent tariffs on U.S. trade in retaliation. At the same time, however, the EU was pursuing trade deals with other nations, and signed (2018) a landmark trade agreement with Japan that eliminated most tariffs. After complex, difficult negotations, designed to produce a minimally disruptive, business-friendly plan for Britain's post-withdrawal relationship with the EU, the final plan failed to win the support of the British parliament in 2019, and Britain's exit was then delayed.

Bibliography

See W. Diebold, The Schuman Plan (1959); R. L. Heilbroner, Forging a United Europe (Public Affairs Pamphlet, 1961); B. Morris and K. Boehm, ed., The European Community (1986); H. Wallace and A. Ridley, Europe: The Challenge of Diversity (1986); M. Burgess, Federalism and European Union (1989); J. Roy, A Historical Dictionary of the European Union (2006); H. James, Making the European Monetary Union (2012); M. K. Brunnermeier et al., The Euro and the Battle of Ideas (2016); J. Stiglitz, The Euro: How a Common Currency Threatens the Future of Europe (2016).

European Union

an organization created in 1993 with the aim of achieving closer economic and political union between member states of the European Community. The current members are Austria, Belgium, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and the UK.
www.europa.eu.int/index_en.htm
www.eia.org.uk/websites.htm
MedicalSeeEu

European Union


European Union (EU)

the economic and political grouping that came into effect in 1993 and resulted from the European Union Treaty, an important treaty signed at Maastricht on 7 February 1992. It amended the EUROPEAN ECONOMIC COMMUNITY (EEC) Treaty, indeed, renaming it the European Community. Thus the present legal structure is called the EUROPEAN COMMUNITIES or the European Union.

European Union


European Union (EU)

An economic association of European countries founded by the Treaty of Rome in 1957 as a common market for six nations. It was known as the European Community until January 1, 1994 and currently comprises 15 European countries. Its goals are a single market for goods and services without any economic barriers, and a common currency with one monetary authority.

European Union

A supranational economic and political organization consisting of the majority of the countries in Europe. While it lacks the authority of a federal union, it provides a common market and free trade between members. Importantly, it created and operates the euro, which is one of the most important global currencies. See also: European Central Bank.
EU Budget 2004Fig. 39 EU Budget 2004.

European Union (EU)

a regional alliance established by the Treaty of Rome in 1958 with the general objective of integrating the economies of member countries. The EU was originally called the ‘European Economic Community’ (EEC) before changing its name to simply the ‘European Community’ (EC). In 1993, following ratification of the MAASTRICHT TREATY, the current name was adopted to reflect the wider move towards social and political union as well as economic union.

In January 1999 the EU put into place a further major step towards integrating the economies of member countries. Under the ECONOMIC and MONETARY UNION (EMU) programme a new single currency, the EURO, was introduced to replace the individual domestic currencies of EMU participants by the end of 2002. The introduction of EMU has meant the end of the EUROPEAN MONETARY SYSTEM and the European Currency Unit. (For further details of this landmark development see ECONOMIC AND MONETARY UNION, EURO, and EUROPEAN CENTRAL BANK entries).

The deeper integration of member countries implied by EMU has already accentuated a number of underlying difficulties, particularly that of applying ‘one fit’ policies throughout the EMU-zone despite substantial differences in the industrial structures and extent of economic maturity of members (contrast relatively economically ‘advanced’ Germany with that of less-developed Greece). Many economists fear that harmonization will become untenable as more and more countries, most of them possessing weak industrial sectors and thus in need of massive structural funding, join the EU.

The EU has a total population of some 450 million and accounts for around 44% of the world production and world exports.

There were six founding countries of the EU: (West) Germany, France, Italy, Netherlands, Belgium and Luxembourg. Nineteen more countries have since joined the EU bringing its current membership up to 25. The UK, Ireland and Denmark joined in 1973, Greece in 1981, Spain and Portugal in 1986, and Austria, Sweden and Finland in 1995. In 2004 a further 10 countries joined the EU under an ‘Accession’ arrangement which required them to have undertaken major reforms of their economies to make them market-orientated: Poland, Hungary Czech Republic, Estonia, Slovenia, Slovakia, Latvia, Lithuania, Cyprus and Malta.

The strategic and operational policies of the EU are formulated by member country governments acting through the Council of Ministers (one appointed member per country) and the European Parliament (democratically elected). The European Commission is responsible for overseeing the day-to-day administration of the EU and in controlling its general budget finances while various other bodies are responsible for running specific programmes such as the Common Agricultural Policy Agricultural price support and structural operations (the EU's regional and social, programmes) currently account for around four fifths of the total EU Budget.

In 2004 the EU Budget totalled some 103 billion Euros. Contributions and receipts for the 15 member countries of the EU are listed in Fig 39. The budget is financed from four sources – a charge on each country proportional to their share of the EU's Gross National Product (GNP); a proportional charge on each countries value added tax (VAT) receipts; levies on agricultural imports and customs duties on other imports from non-EU countries.

The main economic developments within the EU down to EMU include:

  1. the creation of a (‘single’) common market providing for free trade in goods and services and the free movement of labour and capital across national boundaries. (See TRADE INTEGRATION entry for details). Member countries are committed to removing TARIFFS, QUOTAS and other obstacles to trade within the EU and to maintaining the EU's ‘common external tariff against nonmember countries' imports. Import restrictions by the six original members against each other were dismantled and their external tariffs harmonized in stages between 1958 and 1968. The creation of an internal market was give further impetus by the SINGLE EUROPEAN ACT, 1986 which embodied some 400 ‘directives’ providing for the implementation of common technical standards, product specification, descriptions and labelling, road haulage regulations etc. In addition, the EU has concluded a number of trade preference agreements with non-member countries, including the multilateral LOME AGREEMENT with over 40 less-developed countries, most of them former colonies of EU members, and bilateral pacts with members of the EUROPEAN FREE TRADE ASSOCIATION. See also EUROPEAN ECONOMIC AREA.
  2. a competition policy providing for the prohibition of price-fixing and market-sharing agreements between firms and the abuse of a dominant market position which have the effect of reducing or eliminating intra-EU trade (see COMPETITION POLICY EU)
  3. Common Agricultural Policy providing for the subsidization and protection of the farm sector
  4. a REGIONAL POLICY providing financial assistance for the removal of regional imbalances both within and between member countries.
  5. the establishment of the EUROPEAN MONETARY SYSTEM to provide a close coordination of member countries' currency exchange rates and settlement of payment imbalances.

EU laws generally take precedence over the national laws of member countries but in some areas the principle of subsidiarity can be invoked which involves the devolvement of responsibility for decisionmaking from the European Commission to national administrations. See, for example, COMPETITION POLICY (EU).

In 2000 the Treaty of Nice introduced several changes to the administration of the EU in order to facilitate the enlargement of the EU, and enable the integration of members' economies to proceed more rapidly. Member countries vote allocations were re-weigh ted in favour of the larger states; qualified majority voting replaced the national veto on a range of issues; limits were introduced on the size of the European Commission (big nations lose their second Commissioner in 2005); groups of eight or more countries can push ahead with integration in agreed policy areas. However, tax and social security matters will remain subject to unanimity in voting.

European Union (EU)

A regional alliance established by the Treaty of Rome in 1958 with the general objective of integrating the economies of member countries. The EU was originally called the ‘European Economic Community’ (EEC) before changing its name to simply the ‘European Community’ (EC). In 1993, following ratification of the MAASTRICHT TREATY, the current name was adopted to reflect the wider move towards social and political union as well as economic union. The EU has a collective population of some 465 million people
European Union budgetEuropean Union budget. (a) Breakdown, 1980 and 2003/4.

(b) Member country payments and receipts 2003/4.

European Union

and accounts for over 40% of world production and world exports.

There were six founding countries of the EU: (West) Germany, France, Italy, Netherlands, Belgium and Luxembourg, which had previously cooperated (with the exception of the Netherlands) in the EUROPEAN COAL AND STEEL COMMUNITY. Nine more countries then joined the EU, bringing its membership up to 15. The UK, Ireland and Denmark joined in 1973, Greece in 1981, Spain and Portugal in 1986, and Austria, Sweden and Finland in 1995. In April 2004 a further 10 countries joined the EU under a previously negotiated Accession’ arrangement that required these countries to undertake reforms of their institutions and policies to align them with EU practice. Eight of the new members are formerly centrally planned ‘socialist’ countries, which for them has meant a major transformation of their economies to meet the ‘market’ conditions prevailing in the EU: Poland, the Czech Republic, Estonia, Slovakia, Slovenia, Hungary, Latvia and Lithuania. The other two new members are Cyprus and Malta. Compared to the long-established members of the EU, the new entrants are mostly relatively economically undeveloped, with low levels of per capita income (see below), and this had led to concerns about how quickly they could meet the convergence criteria required for entry to the EURO-zone and their likely drain on the EU budget, with the richer members having to make further contributions to make ends meet.

Looking to the longer term, another 10 countries are lined up to join the EU from 2010 onwards.

Per capita GDP
EU-15 median ₠23,782
Cyprus 14,714
Slovenia 13,487
Malta 8,377
Hungary 8,144
Czech Republic 7,821
Slovakia 5,852
Estonia 5,709
Poland 4,979
Lithuania 4,978
Latvia 3,704

The strategic and operational policies of the EU are formulated by member country governments acting through the Council of Ministers (one appointed member per country) and the European Parliament (democratically elected). The EUROPEAN COMMISSION is responsible for overseeing the day-to-day administration of the EU and in controlling its general budget finances while various bodies are responsible for running specific programmes such as the COMMON AGRICULTURAL POLICY (CAP). As Fig. 62 (a) shows, agricultural price support and structural operations (the EU's regional and social programmes) currently account for around four-fifths of the total EU Budget. Fig. 62 (b) shows member countries’ contributions to, and receipts from, the EU budget in 2003/4. As regards national BUDGETS, each member state at the present time is under an obligation to conform to certain budgetary restrictions as established by the ‘Stability and Growth Pact’, namely, that current budget deficits should not exceed more than 3% of GDP and accumulated total debts should not exceed 60% of GDP. These provisions are in the process of being ‘relaxed’ as a number of leading European economies (Germany, France, Italy) have gone over the prescribed 3% current budget deficit/GDP ratio as a result of having to cope with recessionary conditions.

The main economic developments within the EU down to 2004 are listed below:

  1. the creation of a ‘single’ COMMON MARKET, providing for free trade in goods and services and the free movement of labour and capital across national boundaries. Member countries are committed to removing TARIFFS, QUOTAS and other obstacles to trade within the EU and to maintaining the EU's ‘common external tariff against nonmember countries’ imports. Import restrictions by the six original members against each other were dismantled and their external tariffs harmonized in stages between 1958 and 1968. The creation of an internal market was given further impetus by the SINGLE EUROPEAN ACT 1986, which embodied some 400 ‘directives’ providing for the implementation of common technical standards, product specification, descriptions and labelling, road haulage regulations, etc. In addition, the EU has concluded a number of trade preference agreements with nonmember countries, including the multilateral LOMÉ AGREEMENT with more than 40 less developed countries, most of them former colonies of EU members, and bilateral pacts with members of the EUROPEAN FREE TRADE ASSOCIATION (see GAINS FROM TRADE, TRADE CREATION, TRADE DIVERSION). See also EUROPEAN ECONOMIC AREA;
  2. a competition policy providing for the prohibition of price-fixing and market-sharing agreements between firms and the abuse of a dominant market position, which have the effect of reducing or eliminating intra-EU trade (see COMPETITION POLICY EU);
  3. a COMMON AGRICULTURAL POLICY providing for the subsidization and protection of the farming sector;
  4. a regional policy providing financial assistance for the removal of regional imbalances both within and between member countries (see EUROPEAN REGIONAL DEVELOPMENT FUND, EUROPEAN INVESTMENT BANK);
  5. the establishment of the EUROPEAN MONETARY SYSTEM to provide a close coordination of member countries’ currency exchange rates and settlement of payment imbalances;
  6. the creation of a special monetary asset, the EUROPEAN CURRENCY UNIT, to provide a common basis for payments under the Common Agricultural Policy, European Monetary System, etc.

EU laws generally take precedence over the national laws of member countries, but in some areas the principle of subsidiarity can be invoked, which involves the devolvement of responsibilities for decision-making from the European Commission to national administrations. See, for example, COMPETITION POLICY (EU).

In January 1999, the EU put into place a further major step towards integrating the economies of member countries. Under the ECONOMIC and MONETARY UNION (EMU) programme, a new single currency, the EURO, was introduced, that replaced the individual domestic currencies of EMU participants by the end of 2002. The introduction of EMU has meant the end of the EUROPEAN MONETARY SYSTEM and the EUROPEAN CURRENCY UNIT. (For further details of this landmark development see ECONOMIC AND MONETARY UNION, EURO, EUROPEAN CENTRAL BANK and MAASTRICHT TREATY entries).

The deeper integration of member countries implied by EMU has already accentuated a number of underlying difficulties, particularly that of applying ‘one-fit’ policies throughout the EMU-zone despite substantial differences in the industrial structures and extent of economic maturity of members (contrast relatively economically ‘advanced’ Germany with that of less developed Greece). Many economists fear that harmonization will become untenable as more and more countries, most of them possessing weak industrial sectors and thus in need of massive structural funding, j oin the EU.

AcronymsSeeEU

European Union


  • noun

Synonyms for European Union

noun an international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members

Synonyms

  • Common Market
  • EC
  • EEC
  • European Community
  • European Economic Community
  • EU
  • Europe

Related Words

  • global organization
  • international organisation
  • international organization
  • world organisation
  • world organization
  • Danmark
  • Denmark
  • Kingdom of Denmark
  • Kingdom of Sweden
  • Sverige
  • Sweden
  • Deutschland
  • FRG
  • Germany
  • Federal Republic of Germany
  • Finland
  • Republic of Finland
  • Suomi
  • Ellas
  • Greece
  • Hellenic Republic
  • Italia
  • Italian Republic
  • Italy
  • Austria
  • Oesterreich
  • Republic of Austria
  • Belgique
  • Belgium
  • Kingdom of Belgium
  • Britain
  • Great Britain
  • U.K.
  • UK
  • United Kingdom
  • United Kingdom of Great Britain and Northern Ireland
  • Eire
  • Ireland
  • Irish Republic
  • Republic of Ireland
  • France
  • French Republic
  • Holland
  • Kingdom of The Netherlands
  • Nederland
  • Netherlands
  • The Netherlands
  • Grand Duchy of Luxembourg
  • Luxembourg
  • Luxemburg
  • Portugal
  • Portuguese Republic
  • Espana
  • Kingdom of Spain
  • Spain
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