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European Union (EU) Working for Cooperation

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European Union (EU) Working for Cooperation European Union (EU) European Union (EU) is an economic and political partnership among 28 European countries. The EU member countries successfully created a single economic market without internal barriers to trade, labor, and investment. The union's 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 United Kingdom. The union's principal seat is in Brussels, Belgium. Its judicial seat is in the city of Luxembourg, and its parliamentary seat is in Strasbourg, France. The European Union has evolved from economic cooperation that began among Western European countries in the early 1950's. These countries eventually cooperated in economic affairs as members of the European Community (EC). In 1993, the EC members extended their cooperation into the areas of law enforcement and military and foreign policy. The EU was officially created when cooperation was extended to these new areas. The European Union is a major economic unit. Together, its members have more people than the United States. In addition, the value of the goods and services produced by its members exceeds that of the goods and services produced by every country except the United States. The combined value of the union's imports and exports is greater than that of any single country in the world. The United States is the union’s main trading partner. Working for cooperation Internal affairs. The European Union works to increase economic growth among its members by encouraging trade, investment, and economic competition among them. Union members impose no tariffs on one another and give European citizenship to all their people. European citizenship allows citizens of member countries to live and work anywhere in the union. They may also vote in local and European Union elections in any member country in which they live, even if they are not citizens of that country. The European Union also fosters economic development by adopting common policies and regulations in such areas as agriculture, transportation, health and safety, antitrust matters, and industrial standards. One such policy, the common agricultural policy (CAP), controls the prices of agricultural goods, limits agricultural production, and gives subsidies (cash grants) to farmers. In addition, the union determines common policies for its members in such areas as immigration and the control of illegal drug trafficking and other international crimes. The European Union administers programs in education and training and in science and technology. It also provides money for economic development in poorer regions within the union. This aid is aimed at achieving economic and social equality. The union's revenue © 2019 World Book, Inc. All rights reserved. WORLD BOOK and the GLOBE DEVICE are registered trademarks of World Book, Inc. Page 1 of 6 comes from a general sales tax, levies on imports from nonmember countries, and contributions from members. In 1999, many member states began to phase in a single currency, called the euro, as part of a process called European Economic and Monetary Union (EMU). A central bank, known as the European Central Bank, conducts monetary policy for all EMU members. Officials use monetary policy to influence such economic factors as interest rates and the availability of money and loans. Denmark, Sweden, the United Kingdom, and some eastern European states have not accepted the single currency. Nineteen European Union member countries have joined the EMU and adopted the euro. In 1999, companies, banks, and stock exchanges in 11 of these countries—Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain—began to carry out many of their noncash transactions in euros. The value of the traditional currencies of each of these countries was firmly tied to that of the euro. In 2001, Greece became the 12th EU member to adopt the euro. The euro began circulating as coins and paper money on Jan. 1, 2002. The traditional currencies of the 12 countries were withdrawn from circulation that same year. Slovenia adopted the euro in 2007. Cyprus and Malta followed in 2008 and Slovakia in 2009. In 2011, Estonia became the 17th EU country to adopt the euro. Latvia began using the euro in 2014. Lithuania adopted the euro in 2015. Relations with other countries. The European Union is the main partner of the United States in efforts to negotiate and manage world trade rules. The union also cooperates with the United Nations (UN) and such agencies as the International Monetary Fund and the World Bank. The European Union belongs to the Food and Agriculture Organization, a UN agency. The union also gives economic help to struggling nonmember nations. The European Union sometimes helps resolve the military conflicts of nonmember countries. A defense alliance among several EU nations called the Western European Union performed these duties for many years. The European Union gradually took over these responsibilities in the early 2000's. The EU also works closely with the North Atlantic Treaty Organization (NATO). NATO is a larger defense alliance among whose members are the United States, Canada, and numerous European countries, including almost all the members of the European Union. Governing institutions The European Union is governed by seven institutions. They are (1) the European Parliament, (2) the European Council, (3) the Council of the European Union, (4) the European Commission, (5) the Court of Justice of the European Union, (6) the European Central Bank, and (7) the Court of Auditors. The European Parliament shares legislative and budgetary powers with the Council of the European Union. The Parliament has more than 700 members. They are directly elected by EU citizens to five-year terms. The Parliament elects a president from among its © 2019 World Book, Inc. All rights reserved. WORLD BOOK and the GLOBE DEVICE are registered trademarks of World Book, Inc. Page 2 of 6 members. Most EU laws are adopted jointly by the Parliament and the Council. The Parliament cannot propose legislation, but it can accept, amend, or reject legislation that is proposed by the European Commission. In addition, the Parliament has the power to expel the entire Commission. The Parliament meets in Strasbourg and Brussels. Its secretariat (administrative body) is based in Luxembourg. The European Council establishes the general political goals of the EU. It consists of the heads of state or government of each member nation; the president of the European Council; and the president of the European Commission. The European Council elects its president for a term of 21/ years. He or she must not hold a national office. Meetings of the European 2 Council generally take place four times a year in Brussels. The Council of the European Union, also known as the Council of Ministers or simply the Council, is the EU's main decision-making body. The Council, usually acting jointly with the Parliament, passes laws and adopts the EU budget. The Council coordinates the economic policies of EU member nations, establishes the EU's common foreign and security policy, and adopts measures relating to police and judicial cooperation. The Council consists of people who serve as cabinet ministers in the government of their home nation. The presidency of the Council rotates every six months among the EU member nations. Most Council meetings take place in Brussels, but some meetings are in Luxembourg. The European Commission is the EU's executive body. It proposes legislation to the Parliament and the Council of the European Union. It also oversees the carrying out of the treaties on which the EU is based, as well as the laws, the budget, and other measures adopted by EU institutions. The Commission consists of one member from each EU member nation. One of the commissioners is the president, and another commissioner holds the position of high representative for foreign affairs and security policy. All the commissioners must be approved by the Parliament. They serve five-year terms. The Commission is based in Brussels and holds most of its meetings there. The Court of Justice of the European Union, based in Luxembourg, decides whether the actions of EU institutions and member governments comply with EU law. It also interprets EU law at the request of the national courts. The Court of Justice of the European Union consists of three courts: (1) the Court of Justice, which is the highest court; (2) the General Court; and (3) the Civil Service Tribunal, a specialized court for disputes involving EU employees. The Court of Justice and the General Court include judges from each EU member nation. Judges of all three courts are appointed for six-year terms. The European Central Bank, based in Frankfurt, Germany, administers monetary policy for the EU member nations that have adopted the euro as their currency. The bank's primary objective is to maintain price stability. The Court of Auditors, based in Luxembourg, examines the EU's accounts to ensure that EU funds are collected, managed, and spent in a manner that is legal and financially sound. The Court of Auditors consists of one member appointed from each EU member nation. Members serve six-year terms. © 2019 World Book, Inc. All rights reserved. WORLD BOOK and the GLOBE DEVICE are registered trademarks of World Book, Inc. Page 3 of 6 History Beginnings. After World War II ended in 1945, Jean Monnet, a French statesman, promoted the idea of gradually uniting the democratic European nations both economically and politically (see Monnet, Jean). As a result, in 1951, Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany signed the Treaty of Paris, which established the European Coal and Steel Community (ECSC).
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