Presentation

on
European Union

Presented By:-Praveen Mayar

Abhishek tiwari
Jitendra agrawal
Trade blocs
• Type of intergovernmental agreement, often part of a regional
intergovernmental organization, where regional barriers to trade (tariffs
and non-tariff barriers) are reduced or eliminated among the participating
states.

• Trade blocs can be stand-alone agreements between several states (such

as the North American Free Trade Agreement (NAFTA) or part of a regional
organization (such as the European Union.

• Depending on the level of economic integration, trade blocs can fall into
different categories, such as: preferential trading areas, free trade areas,
customs unions, common markets and economic and monetary unions
 The EU Model
• European Union (EU) has long been the most developed model of regional integration, it was severely shaken
by the recent economic crisis, causing increasing doubts about the integration process.
• Since the early 1950s, the EU has been a pioneer in regional integration.

underlying the success of the EU project include:

• Visionary politicians, such as Robert Schuman of France and Konrad Adenauer of Germany, who
conceived of a new form of politics based on the supranational “community method” rather than
the traditional balance-of-power model. Support from the United States was also crucial in the
early years.

• Leadership generated by the Franco-German axis. Despite many problems, Paris and Berlin have
been and remain the driving force behind European integration.

• The political will to share sovereignty and construct strong, legally based, common institutions to
oversee the integration project.

• A consensus approach combined with solidarity and tolerance. The EU approach is based on not
isolating any member state if they have a major problem (such as Greece in the most recent crisis),
hesitance to move forward with policies until the vast majority of member states are ready, and a
willingness to provide significant financial transfers to help poorer member states catch up with
the norm.
HISTORY
1945 -1959
A peaceful Europe – the beginnings of cooperation
• The European Union is set up with the aim of ending the frequent and bloody
wars between neighbours, which culminated in the Second World War.
• As of 1950, the European Coal and Steel Community begins to unite European
countries economically and politically in order to secure lasting peace.
• The six founders are Belgium, France, Germany, Italy, Luxembourg and the
Netherlands. The 1950s are dominated by a cold war between east and west.
• Protests in Hungary against the Communist regime are put down by Soviet
tanks in 1956; while the following year, 1957, the Soviet Union takes the lead
in the space race, when it launches the first man-made space satellite,
Sputnik 1. Also in 1957, the Treaty of Rome creates the European Economic
Community (EEC), or ‘Common Market’.
1960 -1969

‘Swinging Sixties’ – a period of economic growth

• The 1960s sees the emergence of 'youth culture’, with groups
such as the Beatles attracting huge crowds of teenage fans
wherever they appear, helping to stimulate a cultural
revolution and widening the generation gap.
• It is a good period for the economy, helped by the fact that EU
countries stop charging custom duties when they trade with
each other.
• They also agree joint control over food production, so that
everybody now has enough to eat - and soon there is even
surplus agricultural produce.
• May 1968 becomes famous for student riots in Paris, and many
changes in society and behaviour become associated with the
so-called ‘68 generation’
1970 -1979

A growing Community – the first Enlargement

•Denmark, Ireland and the United Kingdom join the European
Union on 1 January 1973, raising the number of member states to
nine.
•The short, yet brutal, Arab-Israeli war of October 1973 result in
an energy crisis and economic problems in Europeh.
•Dictatorships in Europe come to an end with the overthrow of
the Salazar regime in Portugal in 1974 and the death of General
Franco of Spain in 1975.
•The EU regional policy starts to transfer huge sums to create jobs
and infrastructure in poorer areas.
•The European Parliament increases its influence in EU affairs and
in 1979 all citizens can, for the first time, elect their members
directly.
 1980 -1989
The changing face of Europe - the fall of the Berlin Wall

• The Polish trade union, Solidarność, and its leader Lech Walesa, become
household names across Europe and the world following the Gdansk
shipyard strikes in the summer of 1980. In 1981,
• Greece becomes the 10th member of the EU and Spain and Portugal
follow five years later. In 1987 the Single European Act is signed.
• This is a treaty which provides the basis for a vast six-year programme
aimed at sorting out the problems with the free-flow of trade across EU
borders and thus creates the ‘Single Market’.
• There is major political upheaval when, on 9 November 1989, the Berlin
Wall is pulled down and the border between East and West Germany is
opened for the first time in 28 years, this leads to the reunification of
Germany when both East and West Germany are united in October 1990.
1990 -1999
A Europe without frontiers
• With the collapse of communism across central and eastern Europe,
Europeans become closer neighbours.
• In 1993 the Single Market is completed with the the 'four freedoms' of:
movement of goods, services, people and money. The 1990s is also the
decade of two treaties, the ‘Maastricht’ Treaty on European Union in 1993
and the Treaty of Amsterdam in 1999.
• People are concerned about how to protect the environment and also how
Europeans can act together when it comes to security and defence matters.
• In 1995 the EU gains three more new members, Austria, Finland and
Sweden. A small village in Luxembourg gives its name to the ‘Schengen’
agreements that gradually allow people to travel without having their
passports checked at the borders.
• Millions of young people study in other countries with EU support.
Communication is made easier as more and more people start using mobile
phones and the internet
 2000 – today
A decade of further expansion
• The euro is the new currency for many Europeans. 11
September 2001 becomes synonymous with the 'War on Terror'
after hijacked airliners are flown into buildings in New York and
Washington.
• EU countries begin to work much more closely together to fight
crime.
• The political divisions between east and west Europe are finally
declared healed when no fewer than 10 new countries join the
EU in 2004.
• Many people think that it is time for Europe to have a
constitution but what sort of constitution is by no means easy
to agree, so the debate on the future of Europe rages on
OBJECTIVE OF FORMATION
• The original objective of the formation of the European Union
was to improve conditions for trade, both within the member
states and to create a regional bloc that would become more
competitive within the expanding global environment.
• However, since its inception, the number of member states
has expanded considerably, following the inclusion of
countries from the former Soviet bloc, and the objectives have
been expanded to include political as well as commercial
control of these states.
• These developments have served to fuel the debate as to
whether the formation of the EU was a good idea in the first
place.
• To be fair, in attempting to address this debate it is important
to first assess the benefits and disadvantages that result from
membership of the EU.
 Members of regional bloc
• The EU currently has 27 member countries, which have transferred some
of their sovereignty – or lawmaking authority – to the EU.A number of
other countries have applied to become members of the EU.
• Members: Austria: Belgium: Cyprus; Czech Republic; Denmark; Estonia;
Finland; France; Germany; Greece; Hungary; Ireland; Italy; Latvia;
Lithuania; Luxembourg; Malta; Netherlands; Poland; Portugal; Slovakia;
Slovenia; Spain; Sweden; United Kingdom
• The EU has become the most powerful trading bloc in the world with a
GDP nearly as large as that of the United States.
• It is also the largest importer of agricultural products from developing
countries, and maintains close links to its former colonies in the ACP group
through trade preferences and aid deals.
• The EU has found it difficult to shed its protectionist past based on the idea
of self-sufficiency in agriculture which limits agricultural exports from the
other countries, although it has implemented a major reform of its
Common Agricultural Policy to shift subsides to support the environment
Share %
Trade within european union

• Everybody wins

• A firm commitment

• The rules-based system

• A network of agreements

• Trade and development

• Trade with major partners

 The European Union and world trade

Trade for a better world

• Trade is everybody’s business. Trade policy may seem a complex, technical subject that only experts
can understand, but it actually involves us all, every day, whatever we do and wherever we live.
Think global. Think of morning tea or coffee, the cars we drive, the computers on which we
increasingly depend. Think of a favourite oriental rug or a holiday on another continent.
• Globalisation means that more and more countries, both rich and poor, are taking part in the world
economy. This process is changing the pattern of world trade and increasingly permeating our
everyday lives.
• The wealth that trade can generate helps European Union (EU) countries to give their citizens a
better quality of life — now, and for future generations too. Taking part in world trade — if properly
managed — also gives developing countries a much-needed opportunity for economic growth.
• As the world’s leading trade power, the EU has a strong interest in creating conditions in which trade
can prosper. The EU’s position also gives it responsibilities towards the rest of the world. That is why
it plays a leading role in international trade negotiations, working towards fair trade and seeking to
harness globalisation through the World Trade Organisation (WTO).
• The EU works to ensure that its trading partners in the developing world can join in the system,
giving them a hand where needed. This applies particularly to the poorest countries, for which the
benefits of globalisation remain elusive.
• This booklet describes how EU trade policy works. It outlines the EU’s trade relationships with the
rest of the world and the role the EU plays in the World Trade Organisation. And it explains how the
EU intends to make sure that the whole world can benefit from the international trade negotiations
that were launched in Doha in November 2001. Known as the ‘Doha development agenda’, the new
round of negotiations will be a decisive force in shaping trade in the 21st century.
 Role and responsibilities of the European Union

• The European Union, with its 15 member countries, represents just 6 % of the
world’s population. But it accounts for more than a fifth of global imports and
exports. This makes the Union the world’s biggest trader.
• Trade was one of the first areas in which EU countries agreed to pool their
sovereignty, transferring to the European Commission the responsibility for
handling trade matters, including negotiating international trade agreements on
their behalf.
• This means that the EU’s 15 Member States negotiate as one, both with their
trading partners and at the WTO, thus maximising their influence on the
international scene.
• But a wide range of players are involved in drawing up the EU’s trade policy.
Representatives of the governments of the EU countries are regularly and closely
consulted, and ministers themselves take the key decisions. The European
Parliament is closely involved in all developments. The Commission is continually
organising a wide consultation of civil society, such as non-governmental
organisations (NGOs), trade unions, and business.
• This enables the EU to be sensitive to all interests as it works to expand trade
and to create a win–win situation for all players.