Background

• Second largest economy in the world.

• GDP knocked $18.38 Trillion in 2020.

• It is political and economic union of 27 members including 

• Aim of policies on Free movement of people, goods, services and capital within the internal markets.

• The EU began in 1957 when six countries signed Treaty of Rome. The six initiative countries were called the European Economic Community which were Belgium, France, Italy, Luxembourg the Netherlands and West Germany.

• The EU was created after World War II. They wanted to stop wars, make a better world and build community.

• Spain joined the EU in 1986.

• On July 1, 2013, Croatia joined the EU . It will be the twenty-eighth country to join the EU.

EU Membership

It has grown from six to 27 nations; combined with the four EFTA countries (i.e. Switzerland, Norway, Iceland and Liechtenstein), which brings the total population of Europe to over half a billion.

Major Exports

• Machinery

• Plastics

• Motor Vehicles

• Aircraft  etc.

Objectives of the European Union

• To promote peace and well-being of the union’s citizens .

• To improve political relation among member nations.

• To create an area of freedom , security and justice without internal borders.

• To remove trade barriers in order to increase intra-regional trades.

• To create sustainable development based on balanced economic growth and social justice.

• To emerge as a free single market with EURO as a dominant currency.

Functions of the European Union

• The European Union's primary purpose was meant to be more economic than political.           

• The European Council develops the strategies that guide EU policies composed by the heads of the member countries.

• The European Central Bank controls the EURO and manages the union's monetary policy.

• Decisions taken by the EU regarding economic and social policies are legally binding on all member nations, as long as the majority votes favor them.

• The 27 nations that belong to the EU work together by participating in a number of common institutions by setting policy and promoting their common interest.