The EUROPEAN UNION
The first big steps to economic cooperation in Europe began in 1958 the European Economic Community was formed.
Expansion of the European Union has continued for nearly 50 years.
Germany ItalyNetherlands
Belgium Luxembourg
France
Remember, economically, countries, like people, associate with others like themselves.
All the countries in the EU are considered developed.
The goal of the European Union is to break down trade barriers and eliminate tariffs between member countries.
People no longer needed passports to travel between EU member countries.
Ten new members join the EU on May 1 (swissinfo)
NEW MEMBERS AS OF
2004.
The original twelve countries are in green.
19951995
2005
95
Three were added in 1995
10 new countries were invited in 2005.
European countries alone have a much smaller population than the USA. Look in the demographic section of your text. The most populous country in Europe is? The population of the USA is?
No single European economy can approach that of the USA. But, add them together as the EU and we are nearly the same.
Prior to the EU, when countries did business outside their country, tariffs, currency exchange, and border regulations sapped profits.
What would the economic equivalent be in the USA?
As members of the EU, members can ship their goods to any member country without paying tariffs (taxes) or stopping at border crossings.
If we had to stop at the borders when traveling between states and pay taxes on goods between states..
Prior to the EU, trade between countries required passing through border crossings.
Goods now move between EU member countries without any obstacles.
In 1993 a common currency was proposed. The Maastricht Treaty opened the way for the EURO, a currency used in 12 countries of the European Union.
Using the Euro
People no longer had to exchange German marks for Italian Lira, or French franks for Spanish pesos when traveling between countries.
Three countries chose not to adopt the Euro. They were the United Kingdom (the “pound”, seen below), Sweden and Denmark.
The combined gross domestic product of the EU is roughly that of the USA. That makes the EU a
……………………… competitor
Those who originally promoted the Euro never made allowances for an economic “meltdown” such as that in Greece these past few years.
Simply put, the Greek economy can not support the very liberal social policies of the past 30 years.
Germany bailed out the Greeks, but forced fiscal austerity on the country.
The economic recession exposed a flaw in the Euro. No accomadations were ever made for a country to leave the Euro.
Another bi-product of the EU is to make countries so economically dependent on one another, there won’t be another European war between member countries.
Workers in the EU are paid high wages by world standards. They receive generous benefits, high salaries and long vacations. They also receive socialized healthcare.
With few exceptions (Germany), European countries have yet to recover from the world depression to the level the USA has.
Most European countries have high tax rates to support those programs.
How will the European Union affect YOU????? Jobs, goods you
can buy, international cooperation, environmental regulations, etc.. We are not alone!
APHG only
The EU is an example of “supra-nationalism.”
…composed of three or more states that form an administrative structure for mutual benefit and pursuit of shared interests…
