Global Groupings Case Study - EU

Development of the EU:

- The 'European Economic Community' was set up by the 'Treaty of Rome' in 1957 to achieve economic and political cooperation after WW2
- Originally made up of 6 members (Belgium, France, Germany, Italy, Luxembourg and the Netherlands) whose aim was to bring economic cooperation through a common European market free of tariffs
- Denmark, Ireland and the UK joined in 1973 benefitting from:

• trading with each other without tariffs - boosting trade and wealth
• joint control of food production - ensuring fair food distribution
• EU regional policy - transfers funds to poorer areas to improve infrastructure and create jobs

- Greece, Spain and Portugal had joined by 1987 and the 'Single European Treaty' was signed with the aim of creating a 'single market' allowing the free flow of trade across EU borders
- In 1993, what began as a purely economic union evolved into an organisation spanning policy areas, from development aid to environment, and became the 'European Union'
- The free movement of goods, services, people and money was permitted across the EU
- Further expansion in 1995 saw Austria, Finland and Sweden become members
- More recently, Croatia was accepted into the EU in July 2013 - the 28th member
- Other countries seeking permission to join are Iceland, Turkey and other east European nation, who could become part of the EU by 2020


To what extent has the EU helped to...?

- Integrate European Economies

• via the introduction of the 'euro' - helps build a single market by easing trade and travel by eliminating issues of exchange rate
• problems with euro arisen so countries e.g. UK and Denmark not accepted it
• single market enables free circulation of goods, services, capital and people within EU
• common tariff on external trade so member countries more likely to interact with each others' economies rather than outsiders'
• development of infrastructure, such as transport, helps to connect economies of eastern countries with those of the west, by facilitating transport of goods and people
• it is argued that true integration of countries can only exist with a single EU government, however this has been previously rejected - 'Treaty of Lisbon' - creation of EU president in December 2007 rejected

- Develop the economies of Europe and other countries

• EU allocated funds to support underdeveloped regions and support them to conform to EU standards
• Poland - shift from state-controlled economy --> market-orientated, infrastructure funds to improve roads and particularly links to EU neighbours such as Germany
• 'European Development Fund' directs aid from EU to developing countries - in 2008-13 it was expected to allocate >10 billion euros of aid

- Increase globalisation

• companies can trade within EU with reduced tariffs and people work abroad - freedom of movement
• societies more multi-cultural due to movement of people
• greater polarisation in world between EU and countries which do not meet EU standards or are outside Europe - so limiting globalisation

- Ensure food security in Europe

• 'Common Agricultural Policy' aim to increase production whilst ensuring high standard of living for farmers, stabilising markets and ensure reasonable prices for customers
• considerable over-production was taking place
• criticised for undercutting farmers in developing countries

- Protect the environment

• policies addressing issues such as acid rain, thinning of ozone layer, air quality, noise pollution and waste and water pollution
• reaching group aims - 20% renewable energy and cut carbon emission levels in 1990 by 2020
• forestry expansion = success 

Make Europe a more peaceful place than it was in 19th and early 20th centuries

• peace created through Europeans adopting European identity over a national one
• although only 8% of Britons identify themselves as European
• no longer credible threats of war - positive influence on possibilities of war

Advantages and Disadvantages of being in the EU:

 

Should Britain stay in the EU?