The European Union (EU) is a politico-economic union of 28 member states that are located
primarily in Europe. The EU operates through a system of supranational
institutions and intergovernmental-negotiated decisions by the member states. The institutions
are: the European Commission, the Council of the European Union, the European Council,
the Court of Justice of the European Union, the European Central Bank, the European Court of
Auditors, and the European Parliament. The European Parliament is elected every five years
by EU citizens.
The EU traces its origins from the European Coal and Steel Community (ECSC) and
the European Economic Community (EEC), formed by the Inner Six countries in 1951 and 1958,
respectively. In the intervening years, the community and its successors have grown in size
by the accession of new member states and in power by the addition of policy areas to its remit.
The Maastricht Treaty established the European Union under its current name in 1993 and
introduced European citizenship. The latest major amendment to the constitutional basis of the
EU, the Treaty of Lisbon, came into force in 2009.
The EU has developed a single market through a standardized system of laws that apply in all
member states. Within the Schengen Area, passport controls have been abolished. EU policies
aim to ensure the free movement of people, goods, services, and capital, enact legislation in
justice and home affairs, and maintain common policies on trade, agriculture, fisheries, and
regional development.
The monetary union was established in 1999 and came into full force in 2002. It is currently
composed of 19 member states that use the euro as their legal tender. Through the Common
Foreign and Security Policy, the EU has developed a role in external relations and defense. The
union maintains permanent diplomatic missions throughout the world and represents itself at
the United Nations, the WTO, the G8, and the G-20.
With a combined population of over 508 million inhabitants, or 7.3% of the world
population, the EU in 2014 generated a nominal gross domestic product (GDP) of 18.495 trillion
US dollars, constituting approximately 24% of global nominal GDP and 17% when measured in
terms of purchasing power parity. As of 2014 the EU has the largest economy in the world,
generating a GDP bigger than any other economic union or country. Additionally, 26 out of 28
EU countries have a very high Human Development Index, according to the UNDP. In 2012, the
EU was awarded the Nobel Peace Prize.
The EU was created in the aftermath of the Second World War. The first steps were to foster
economic cooperation: the idea being that countries which trade with one another become
economically interdependent and so more likely to avoid conflict.
The result was the European Economic Community (EEC), created in 1958, and initially
increasing economic cooperation between six countries: Belgium, Germany, France, Italy,
Luxembourg and the Netherlands. Since then, a huge single market has been created and
continues to develop towards its full potential.
PRELIMINARY:
After World War II, European integration was eyed as an escape from the extreme nationalism
that had devastated the continent. The 1948 Hague Congress was a pivotal moment in European
federal history, as it led to the creation of the European Movement International and of
the College of Europe, where Europe's future leaders would live and study together. 1952 saw
the creation of the European Coal and Steel Community, which was declared to be "a first step in
the federation of Europe. The supporters of the Community included Alcide De Gasperi, Jean
Monnet, Robert Schuman, and Paul-Henri Spaak.
In 1957, Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany signed
the Treaty of Rome, which created the European Economic Community (EEC) and established
a customs union. They also signed another pact creating the European Atomic Energy
Community (Euratom) for co-operation in developing nuclear energy. Both treaties came into
force in 1958.[28]
The EEC and Euratom were created separately from ECSC, although they shared the same courts
and the Common Assembly. The EEC was headed by Walter Hallstein (Hallstein Commission)
and Euratom was headed by Louis Armand (Armand Commission) and then tienne Hirsch.
Euratom was to integrate sectors in nuclear energy while the EEC would develop a customs
union among members.
Through the 1960s, tensions began to show, with France seeking to limit supranational power.
Nevertheless, in 1965 an agreement was reached and on 1 July 1967 the Merger Treaty created a
single set of institutions for the three communities, which were collectively referred to as
the European Communities. Jean Rey presided over the first merged Commission (Rey
Commission).
In 1973, the Communities enlarged to include Denmark (including Greenland, which later left
the Community in 1985, following a dispute over fishing rights), Ireland, and the United
Kingdom. Norway had negotiated to join at the same time, but Norwegian voters rejected
membership in a referendum. In 1979, the first direct, democratic elections to the European
Parliament were held.
Greece joined in 1981; Portugal and Spain in 1986. In 1985, the Schengen Agreement led the
way toward the creation of open borders without passport controls between most member states
and some non-member states. In 1986, the European flag began to be used by the
Community and the Single European Act was signed.
In 1990, after the fall of the Eastern Bloc, the former East Germany became part of the
Community as part of a reunited Germany. With further enlargement planned for former
communist states, Cyprus, and Malta, the Copenhagen criteria for candidate members to join the
EU were agreed upon in June 1993.
The European Union was formally established when the Maastricht Treatywhose main
architects were Helmut Kohl and Franois Mitterrandcame into force on 1 November
1993. The treaty also gave the name European community to the EEC, even if it was referred as
such before the treaty. In 1995, Austria, Finland, and Sweden joined the EU. In 2002, euro
banknotes and coins replaced national currencies in 12 of the member states. Since then,
the eurozone has increased to encompass 19 countries. In 2004, the EU saw its biggest
enlargement to date when Cyprus, the Czech
Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia joined the
Union.
On 1 January 2007, Romania and Bulgaria became EU members. In the same year, Slovenia
adopted the euro, followed in 2008 by Cyprus and Malta, by Slovakia in 2009, by Estonia in
2011, by Latvia in 2014 and by Lithuania in 2015. In June 2009, the European Parliament
elections were held, leading to the second Barroso Commission, and by July, Iceland formally
applied for EU membership, but has since suspended negotiations.
On 1 December 2009, the Lisbon Treaty entered into force and reformed many aspects of the
EU. In particular, it changed the legal structure of the European Union, merging the EU three
pillars system into a single legal entity provisioned with a legal personality, created a
permanent President of the European Council, the first of which was Herman Van Rompuy, and
strengthened the High Representative, Catherine Ashton.
In 2012 the Union received the Nobel Peace Prize for having "contributed to the advancement of
peace and reconciliation, democracy, and human rights in Europe. On 1 July
2013, Croatia became the 28th EU member.
MEMBERS OF THE EUROPEAN UNION
EU SYMBOLS
The EU is recognizable by several symbols, the most well-known being the circle of yellow stars
on a blue background.
The European flag:
The 12 stars in a circle symbolise the ideals of unity, solidarity and harmony among the peoples
of Europe.
The melody used to symbolise the EU comes from the Ninth Symphony composed in 1823 by
Ludwig Van Beethoven.
Europe Day:
The ideas behind the European Union were first put forward on 9 May 1950 by French foreign
minister Robert Schuman. This is why 9 May is celebrated as a key date for the EU.
The EU motto:
It signifies how Europeans have come together, in the form of the EU, to work for peace and
prosperity, while at the same time being enriched by the continent's many different cultures,
traditions and languages.
MONEY AND THE EUROPEAN UNION
The EU's sources of income include contributions from member countries, import duties on
products from outside the EU and fines imposed when businesses fail to comply with EU rules.
The EU countries agree on the size of the budget and how it is to be financed several years in
advance.
The EU budget supports growth and job creation. Under the cohesion policy, it funds investment
to help bridge economic gaps between EU countries and regions. It also helps develop rural areas
in Europe.
A large share of import duties on non-EU products (the country that collects the duty retains
a small percentage).
The EU also receives income tax from EU staff, contributions by non-EU
countries to certain EU programs and fines on companies that breach EU
rules and regulations.
The Multiannual Financial Framework (MFF) sets out the EU's long-term spending priorities and
limits. The EU budget finances activities ranging from developing rural areas and conserving the
environment to protecting external borders and promoting human rights. The Commission, the
Council and Parliament all have a say in determining the size of the budget and how it is
allocated. But it is the Commission that is responsible for spending. The EU countries and the
Commission share responsibility for about 80% of the budget.
The budget is decided jointly by the Commission, the Council and Parliament. The Commission
submits a draft to the Council and Parliament for their consideration. They can make changes; if
they disagree, they have to work out a compromise.
Each years budget sets out the amounts agreed in advance according to a plan known as the
multiannual financial framework. This enables the EU to plan its funding programs effectively
for several years in advance. The current framework runs from 2014 to 2020.
Managing EU funds:
The ultimate responsibility for allocating the budget lies with the Commission. However,
national governments manage about 80% of EU funds. Where undue payments have been made,
the Commission works with the EU countries concerned, to recover the money. To ensure
transparency, organizations and companies that receive EU funding are on public record.
Currently the largest share goes on creating growth and jobs and reducing economic
gapsbetween the EU's various regions. Agriculture, rural development, fisheries and
environmental protection also account for a major share. Other areas of expenditure include
combating terrorism, organised crime and illegal immigration.
The euro (sign: ; code: EUR) is the official currency of the eurozone, which consists of 19 of
the 28 member states of the European
Union: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Lat
via, Lithuania,Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.[3]
[4]
The currency is also officially used by theinstitutions of the European Union and four other
European countries, as well as unilaterally by two others, and is consequently used daily by some
337 million Europeans as of 2015.[5] Outside of Europe, a number of overseas territories of EU
members also use the euro as their currency.
Additionally, 210 million people worldwide as of 2013 use currencies pegged to the euro. The
euro is the second largest reserve currency as well as the second most traded currency in the
world after the United States dollar.[6][7][8] As of August 2014, with more than 995,000,000,000
in circulation, the euro has the highest combined value of banknotes and coins in circulation in
the world, having surpassed the U.S. dollar.[note 18]
Based on International Monetary
Fund estimates of 2008 GDP and purchasing power parity among the various currencies, the
eurozone is the second largest economy in the world.[9]
The name euro was officially adopted on 16 December 1995.[10] The euro was introduced to
world financial markets as anaccounting currency on 1 January 1999, replacing the
former European Currency Unit (ECU) at a ratio of 1:1 (US$1.1743). Physical
euro coins and banknotes entered into circulation on 1 January 2002, making it the day-to-day
operating currency of its original members. [11] While the euro dropped subsequently to
US$0.8252 within two years (26 October 2000), it has traded above the U.S. dollar since the end
of 2002, peaking at US$1.6038 on 18 July 2008. [12] Since late 2009, the euro has been immersed
in theEuropean sovereign-debt crisis which has led to the creation of the European Financial
Stability Facility as well as other reformsaimed at stabilising the currency. In July 2012, the euro
fell below US$1.21 for the first time in two years, following concerns raised over Greek debt and
Spain's troubled banking sector.[13] As of June 2015, the eurodollar exchange rate stands at ~
US$1.10.[14]
The economy of the European Union generates a GDP (nominal) of about 14.303 trillion
(US$18.451 trillion in 2014) and a GDP (PPP) of about 12.710 trillion (US$16.773 trillion in
2014) according to International Monetary Fund,[1] which makes it the largest orsecond
largest economy in the world respectively if treated as the economy of a
single country depending on a source used.
The European Union (EU) economy consists of an internal market and the EU is represented as a
unified entity in the World Trade Organization (WTO).
Operating as a single market with 28 countries, the EU is a major world trading power.
EU economic policy seeks to sustain growth by investing in transport, energy and research
while minimising the impact of further economic development on the environment.
Measuring the EUs economy
The EU's economy measured in terms of the goods and services it produces (GDP) is now
bigger than the US's: EU GDP in 2014:
13,920,541 million
Trade
With just 7% of the worlds population, the EU's trade with the rest of the world accounts for
around 20% of global exports and imports.
Around two-thirds of EU countries total trade is done with other EU countries.
Trade has been hit by the global recession, but the EU remains the worlds largest player
accounting for 16.4% of global imports in 2011. The EU is followed by the United States with
15.5% of all imports, and China with 11.9%. The EU was also the biggest exporter, accounting
for 15.4% of all exports compared with 13.4% for China and the 10.5% for the United States.
Employment
Employment has also been hit by the global economic crisis, and the turbulence in the eurozone.
The EU spends around 6% of its annual budget on staff, administration and maintenance of its
buildings.
Staff
The European Commission is divided into departments known as Directorates General (DGs),
roughly equivalent to ministries. Each covers a specific policy area or service such as trade or
environment, and is headed by a Director-General who reports to a Commissioner. Around 33
000 people are employed by the European Commission.
In the European Parliament, around 6 000 people work in the general secretariat and in the
political groups. They are joined by Members of Parliament and their staff. In the Council of the
European Union, around 3 500 people work in the general secretariat.
Languages
Multilingualism is central to the EUs cultural diversity. The EU has 24 official languages.
Choose a language to read and/or hear a short text in that language.
European years
2015 is European Year for Development - the first time a European Year has focussed on the
European Union's international development policy. It is a landmark year in 2 respects:
Konrad Adenauer | Joseph Bech | Johan Willem Beyen | Winston Churchill | Alcide De
Gasperi | Walter Hallstein | Sicco Mansholt | Jean Monnet | Robert Schuman | Paul-Henri
Spaak | Altiero Spinelli
The following visionary leaders inspired the creation of the European Union we live in today.
Without their energy and motivation we would not be living in the sphere of peace and stability
that we take for granted. From resistance fighters to lawyers, the founding fathers were a diverse
group of people who held the same ideals: a peaceful, united and prosperous Europe. Beyond the
founding fathers described below, many others have worked tirelessly towards and inspired the
European project. This section on the founding fathers is therefore a work in progress.
Transcript
A cornerstone of Adenauer's foreign policy was reconciliation with France. Together with French
President Charles de Gaulle a historic turning point was achieved: in 1963 the one-time arch-
enemies Germany and France signed a treaty of friendship, which became one of the milestones
on the road to European integration.
Transcript
Joseph Bech: how a small country can play a crucial role in European integration
Joseph Bech was the Luxembourgish politician that helped set up the European Coal and Steel
Community in the early 1950s and a leading architect behind European integration in the later
1950s.
It was a joint memorandum from the Benelux countries that led to the convening of the Messina
Conference in June 1955, paving the way for the European Economic Community.
Read more about Johan Willem Beyen
Beyen is one of the lesser-known members of the group of Founding Fathers of the EU. Amongst
the people who knew him he was admired for his charm, international orientation and social
ease.
Download (mp4)
Transcript
Transcript
Read more about Alcide De Gasperi
Time and time again he promoted initiatives aimed at the fusion of Western Europe, working on
the realisation of the Marshall Plan and creating close economic ties with other European
countries, in particular France.
Transcript
As President of the European Commission, Hallstein worked towards a rapid realisation of the
Common Market. His energetic enthusiasm and powers of persuasion furthered the cause of
integration even beyond the period of his presidency. During his mandate, the integration
advanced significantly.
Transcript
Read more about Sicco Mansholt
Having witnessed the horrors of the Dutch famine at the end of the Second World War, Mansholt
was convinced that Europe needed to become self-sufficient and that a stable supply of
affordable food should be guaranteed for all.
Transcript
Jean Monnet: the unifying force behind the birth of the European Union
The French political and economic adviser Jean Monnet dedicated himself to the cause of
European integration. He was the inspiration behind the 'Schuman Plan', which foresaw the
merger of west European heavy industry.
Monnet was from the Cognac region of France. When he left school at 16 he travelled
internationally as a cognac dealer, later also as a banker. During both world wars he held high-
level positions relating to the coordination of industrial production in France and the United
Kingdom.
Transcript
Read more about Robert Schuman
In cooperation with Jean Monnet he drew up the internationally renowned Schuman Plan, which
he published on 9 May 1950, the date now regarded as the birth of the European Union. He
proposed joint control of coal and steel production, the most important materials for the
armaments industry. The basic idea was that whoever did not have control over coal and steel
production would not be able to fight a war.
Transcript
Spaak was a leading figure in formulating the content of the Treaty of Rome. At the 'Messina
Conference' in 1955, the six participating governments appointed him president of the working
committee that prepared the Treaty.
Transcript
Read more about Altiero Spinelli
PAGE CONTENTS
EU institutions in brief
A unique institutional set-up
Setting the agenda
Law-making
Other EU institutions and bodies
EU institutions in brief
European Parliament
European Council
European Ombudsman
Interinstitutional bodies
A unique institutional set-up
In the EU's unique institutional set-up:
EU agencies are distinct bodies from the EU institutions separate legal entities set up to
perform specific tasks under EU law.
Decentralised agencies
Decentralised agencies carry out technical, scientific or managerial tasks that help the EU
institutions make and implement policies. They also support cooperation between the EU and
national governments by pooling technical and specialist expertise from both the EU institutions
and national authorities. Decentralised agencies are set up for an indefinite period and are located
across the EU.
European Agency for the operational management of large-scale IT systems in the area of
freedom, security and justice (eu-LISA)
Executive agencies
People living in the EU have access to EU legislation and key political documents in the official
language of their country. They also have the right to write to the Commission, and receive a
reply in that language.
Members of the European Parliament have the right to use any of the EU's official languages
when speaking in Parliament.
With a permanent staff of around 1 750 linguists and 600 support staff, the European
Commission has one of the largest translation services in the world. The Commission's
interpretation service employs 600 staff interpreters, a pool of 3,000 freelance interpreters and
250 support staff.
Locations
The European Commission is mainly based in Brussels and Luxembourg. It also has offices
throughout the EU, and offices outside the EU. Agencies have been set up in many EU countries
to deal with specific technical, scientific or managerial tasks. For example, the European Food
Safety Authority in Italy provides independent scientific advice on all matters related to food
safety.
The European Parliament holds its Committee meetings in Brussels and its plenary sessions in
Brussels and Strasbourg. Administration is located in Luxembourg. It regularly
sends delegations to regions outside the EU.
The Council buildings are in Brussels, where most of its meetings also take place. Occasionally
meetings of the Council of the European Union are held in Luxembourg. Meetings between the
heads of state and governments the European Council take place in Brussels.