• History of the EU:
- WWII saw a human and economic cost which hit Europe hardest so to help Europe recover after the war the European nations formed a group called the Council of Europe in 1949.
- Their aims were to ensure peace and improve economic development by making the countries more closely integrated.
- In 1950, the European Coal and Steel Community began to unite European countries economically and politically in order to secure lasting peace.
- The six founders were; Belgium, France, Germany, Italy, Luxembourg and the Netherlands.
- In 1973 Denmark, Ireland and the United Kingdom joined the European Union, this took the number of members up to 9.
- In 1986 the Single European Act was signed. This created the ‘Single Market’.
- In 1989, the Berlin Wall was pulled down and the border between East and West Germany was opened.
- In 1993 the Single Market was completed with the 'four freedoms' of: movement of goods, services, people and money.
- In 1993 it was named the EU.
- Now in 2013 there are 28 members, with Croatia been the newest (joining in July 2013).
(to the left) This shows the members of the EU with the years they joined.
• It's a closely integrated economic and political group. For example:
- Goods, services, people and money can move freely between most member states without barriers.
- 17 out of the 28 members of the EU have adopted a single currency - the Euro.
- Member states have agreed to have common laws and policies on things like agriculture and fisheries.
• Positive impacts of the EU:
• Trade has increased
- Trade has increased between European Countries
- For example in 1970 just over 12% of the UK's GDP came from trade with European countries.
- Then after the UK joined the EU in 1973 the % of the GDP from trading with Europe increased to 23% in 2003.
• Trade is easier
- Trade has been made easier between some countries because of the Euro - this means that there is no need for money to be exchanged.
- This means prices are more consistent because there is no uncertainty in exchange rates.
- It has also been made easier because of the single market.
- A single market is a type of trade bloc which is composed of a free trade area for goods with common policies on product regulation, and freedom of movement.
- The aim is that the movement of capital, labour, goods, and services between the members is as easy as within them.
- In other words, doing business with other EU countries should become increasingly like doing business within your own country.
• Easy to move around
- Many EU residents are free to move around the EU so they can work or live in most other EU countries.
- For example in 2004 when Poland joined the EU many polish flocked to the UK to find jobs.
• There's increased security from external threats
- For example the EU counter-terrorism policy protects all member states from the threat of terrorism. One of the ways they did this was introducing biometric passports to increase border security.
• The EU supports some industries
- For example the Common Agricultural Policy (CAP) which includes subsidies for EU farmers and adds import tariffs and quotas on agricultural products from outside the EU.
- This then gives farmers a reasonable standard of living, secures food supplies and ensures a good price for consumers.
Negative Impacts of the EU:
• Joining can be expensive
- To become an EU member a country has to meet certain criteria
- For example high standards of environmental protection
- Meeting this criteria can involve a lot of investment
• Countries have to share some resources
- For example, countries who join the EU come under the Common Fisheries Policy
- This means their fishing grounds become open to fishing by other members
• Economies of countries outside the EU suffer
- For example policies like the CAP can cause economies of countries outside the EU to suffer.
- This is because EU countries might trade with other non-EU countries less as its cheaper for them to trade with fellow EU members.
• Lack of skilled workers
- In some Eastern countries there is a lack of skilled workers.
- This is because so many people have moved to Western Europe in the hope of better wages/jobs
• Reduces Independence
- Joining the EU could reduce independence
- This is because EU countries have to agree to obey EU policies even if it conflicts with their own national policies.
• How is it governed?
- There are three political institutions which hold the executive and legislative power of the Union; The Parliament, the Commission and the Council.
- The Parliament represents citizens.
- The Commission represents the European interest.
- The Council represents governments.
- The Council, Parliament or another party place a request for legislation to the Commission.
- The Commission then drafts this and presents it to the Parliament and Council, where in most cases both must give their assent.
- Although the exact nature of this depends upon the legislative procedure in use, once it is approved and signed by both bodies it becomes law.
- The Commission's duty is to ensure it is implemented by dealing with the day-to-day running of the Union and taking others to Court if they fail to comply.
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