The interdependence of global economies has increased considerably in recent decades. This process of globalisation has benefited the European Union and has provided economic prosperity. Today it poses new challenges because it forces EU countries to be more competitive.
The European Union is a single market of 28 countries and is one of the main economic operators in the world. The EU contributes 18.6% of world production and its GDP accounts for 30% of the world's total. The euro has become a key international currency.
Some EU countries, such as Germany, France and the UK, are among the most advanced economies in the world. According to GDP figures, the most advanced economies are the USA and China. These countries are far ahead of any single EU country.
After two decades of growth that placed the EU in a leading economic position, current macroeconomic data shows that the recession that began in 2007 has weakened the economy.
The EU suffers weak economic growth, very low inflation, a significant unemployment rate in some countries and massive public debt in major economies, such as Italy, France and Spain.
Europe now faces the challenge of leaving behind one of the darkest stages of its economy and entering a more prosperous one.
As of 2015, some European economies have begun to benefit from a combination of favourable factors. Oil prices remain relatively low, the growth of the world economy is sustained and the euro has continued to depreciate against the dollar, which favours exports.
The Economic and Monetary Union (EMU) is the integration of various EU member countries into a common market that uses a single currency, the euro. In this market the freedom of movement of goods, services, people and capital is respected.
Similarly, it aims to implement a common trade policy with countries that do not belong to this common market.
The strategy of the European institutions for the coming years is to respond to 2007's financial and economic crisis. To do this, the EU has established the following objectives.
To coordinate the policies of the various state governments, the European Central Bank and the European Commission.
To implement a common European fiscal policy to provide greater economic stability, contain inflation and enable greater growth.
To invest up to 3% of its GDP in research and innovation.
To combat unemployment, which affects over 26 million people, in order to achieve an employment rate of 75% among citizens aged between 20 and 64.
To promote training by adopting policies to reduce the number of people leaving school to below 10% and increase the number of people between 30 and 34 with higher education to 40%.
To reduce people at risk of poverty or social exclusion by 20 million.