Trading Blocks: The European Union Bartu and Gabriele.
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Transcript of Trading Blocks: The European Union Bartu and Gabriele.
![Page 1: Trading Blocks: The European Union Bartu and Gabriele.](https://reader035.fdocuments.in/reader035/viewer/2022062620/551bbae0550346be588b4684/html5/thumbnails/1.jpg)
Trading Blocks:The European Union
Bartu and Gabriele
![Page 2: Trading Blocks: The European Union Bartu and Gabriele.](https://reader035.fdocuments.in/reader035/viewer/2022062620/551bbae0550346be588b4684/html5/thumbnails/2.jpg)
![Page 3: Trading Blocks: The European Union Bartu and Gabriele.](https://reader035.fdocuments.in/reader035/viewer/2022062620/551bbae0550346be588b4684/html5/thumbnails/3.jpg)
What is the EU, origins and development
• Economic and Political Union• 28 member states
• Numerous institutions• Schengen Area (1995)• Eurozone (2002)
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What is the EU, origins and development
• Last major amendment to the constitutional basis of the EU – Treaty of Lisbon
• Latest Figures • 7.3% of world population• 23% of world’s GDP (2012)
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The EU’s Aim:
• Free movement of• People• Goods• Services• Capital
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Which countries benefit from the EU
• Copenhagen criteria to join
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Copenhagen criteria
• Democracy• The rule of law• Human rights• Respect for and protection of minorities• The existence of a functioning market
economy• The capacity to cope with competitive
pressure and market forces within the Union
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EU and the Single Market
• Economic and Monetary Union (EMU)• 17 members (Eurozone)• Single currency (Euro)• Free circulation of goods, capital, people,
services• Common external tariff on all imports
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Why have a monetary union?
• Easier travel (citizens, goods, services)• No exchange rate issues• More price stability• Political symbol of unity
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EU and Competition
• European Commission = competition regulator• Aim: Undistorted competition within the single
market Antitrust issues Approving mergers Breaking up cartels Economic liberalisation Preventing unfair state subsidies
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EU and Agriculture
• Common Agricultural Policy (1962) Increasing production High quality of life for farmers Stabilising food markets Reasonable prices for consumers
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Issues with the CAP
• Price control mechanisms Excess of supply Purchase of stock by EU
• Dumping of stock outside EU Damages international competitors
Overproduction due to subsidies Environmental damage (farming)
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EU’s Achievements
• Peace and stability in Europe• Economic freedom (single market)• Unified security and justice systems• Common tariff policy• Common agricultural policy (CAP)• Environmental regulations
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EU’s Setbacks
• Increased bureaucracy• Less national identity (culture)• Economic cost to members• Inefficient policies (agricultural over-supply)• Migration-related issues (employment)• Problems with the Euro
Uniform interest rates (ECB) Limits fiscal policy Countries cannot devaluate Economic crisis harms all