Published Mar 5, 2023 The European Union (EU) is a political and economic union of 27 member countries located mainly in Europe. It was first established in November 1993 and has since grown in size and importance. The EU operates as a single market with a common trade policy, a common currency (the Euro), and a shared foreign policy. It also has its own institutions, including the European Commission, the Council of the European Union, and the European Parliament. To illustrate the functioning of the EU, let’s consider a fictional example. Suppose there are two neighboring countries, Country A and Country B. Before joining the EU, both countries had their own currencies and independent policies. However, after joining the EU, they adopted the Euro and agreed to follow common economic policies. As a result, citizens of both countries can now travel freely between them without needing a visa or facing border checks. There are also no tariffs on goods traded between the two countries, which has boosted economic activity. Moreover, citizens of both countries now have access to EU-wide funding for education, infrastructure, and other projects. The EU plays a vital role in the political and economic affairs of Europe and the world. Its members collectively account for almost one-fifth of the world’s GDP, making it one of the largest economies globally. The EU has also been instrumental in maintaining peace and stability in Europe since its inception. The EU continues to play a crucial role in many areas, ranging from climate change to security to digital technology. Its regulations and policies have a significant impact on businesses operating within its borders and outside. It is also a prominent player in the international arena, representing the interests of its member states and promoting common values such as democracy and human rights.Definition of European Union (EU)
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Why the European Union (EU) Matters
Macroeconomics