European Union

European Union (EU) is a political and economic union of 27 member states that are located primarily in Europe. It has an area of 4,233,255.3 square kilometers and an estimated population of about 447 million. The EU has developed an internal Single market through a standardized system of laws that apply in all member states in those matters, and only those matters, where the states have agreed to act as one. EU policies aim to ensure the free movement of people, goods, services, and capital within the internal market; enact legislation in justice and home affairs; and maintain common policies on trade, agriculture, fisheries, and regional development.

History

The European Union was established in the wake of the Second World War. The first steps were to foster economic cooperation: the idea being that countries that trade with one another become economically interdependent and so more likely to avoid conflict. The result was the European Coal and Steel Community (ECSC), established in 1951, which later evolved into the European Economic Community (EEC) in 1957 under the Treaty of Rome. The EEC and ECSC were later incorporated into the European Union when it was formed in 1993 under the Maastricht Treaty.

Institutions

The EU operates through a hybrid system of supranational and intergovernmental decision-making, and according to the principle of Subsidiarity, which holds that decisions are taken as closely as possible to the citizen. The key institutions include the European Commission, the Council of the European Union, the European Parliament, the Court of Justice of the European Union, the European Central Bank, and the European Court of Auditors.

Member States

As of 2023, the EU consists of 27 member states. Each member state is party to the founding treaties of the union and thereby shares in the privileges and obligations of membership. Unlike members of most international organizations, the member states of the EU have agreed to relinquish part of their sovereignty to EU institutions in those areas where there is a collective agreement to act as a single entity.

Policies and Economy

The EU has established a single market across the territory of all its members. To this end, it ensures the free movement of goods, capital, services, and people within its borders. The EU also has various policies on external trade, agriculture, fisheries, and regional development. The Eurozone, a monetary union of 19 EU member states, uses the euro (€) as their common currency and sole legal tender. The EU's GDP was estimated to be $15.7 trillion in nominal terms in 2020, representing around 18% of the global economy.

Challenges and Criticisms

The EU faces several challenges, including economic disparities among its members, migration and asylum seeking issues, and the rise of Euroscepticism. The Brexit referendum in 2016, where the United Kingdom voted to leave the EU, has also posed significant political and economic challenges.

Future of the EU

The future of the EU remains uncertain, with debates on further integration, enlargement, and its role on the global stage. The EU continues to negotiate new trade agreements, navigate the complexities of Brexit, and address the social and economic impacts of the COVID-19 pandemic.