European Union (EU)

Preliminary statement
The European Union is a geo-political entity covering a large portion of the European continent. It is founded upon numerous treaties and has undergone expansions that have taken it from 6 member states to 27, a majority of states in Europe. The evolution of what is today the European Union (EU) from a regional economic agreement among six neighboring states in 1951 to today's hybrid intergovernmental and supranational organization of 27 countries across the European continent stands as an unprecedented phenomenon in the annals of history. Dynastic unions for territorial consolidation were long the norm in Europe; on a few occasions even country-level unions were arranged Although the EU is not a federation in the strict sense, it is far more than a free-trade association such as ASEAN, NAFTA, or Mercosur, and it has certain attributes associated with independent nations: its own flag, currency (for some members), and law-making abilities, as well as diplomatic representation and a common foreign and security policy in its dealings with external partners.

Background
The foundation of the European Union (EU) was created in the aftermath of World War II in response to the economic, social and political devastations that resulted from nationalist divisions within Europe. Formation of European Union is not simple. European Union formed through some revolutions. It was formed after time to time changing the various situations. These are:

Pre-1945 Ideas on European unity

Large areas of Europe had previously been unified by empires built on force, such as the Roman Empire, Byzantine Empire, Frankish Empire, Holy Roman Empire, Ottoman Empire, the First French Empire and Nazi Germany. A peaceful means of some consolidation of European territories used to be provided by dynastic unions; less common were countrylevel unions, such as the Polish-Lithuanian Commonwealth and Austro-Hungarian Empire. Largely due to the devastating effects of war many people turned to the idea of some form of unified Europe, notably William Penn, Abbot Charles de Saint-Pierre, Victor Hugo, Richard Coudenhove-Kalergi and Giuseppe Mazzini. Such ideas became greater in Western Europe following World War I, with the massive loss of life it entailed, but it was not until after World War II that real steps were taken in Western Europe.

European Union (EU)

19451957 Peace forged from cold steel

World War II from 1939 to 1945 saw a human and economic cost which hit Europe hardest. It demonstrated the horrors of war and also of extremism, through the holocaust and the atomic bombings of Hiroshima and Nagasaki, for example. With statements such as Winston Churchill's 1946 call for a "United States of Europe" becoming louder, in 1949 the Council of Europe was established as the first pan-European organization. In the year following, on 9 May 1950, the French Foreign Minister Robert Schuman proposed a community to integrate the coal and steel industries of Europe - these being the two elements necessary to make weapons of war. On the basis of that speech, France, Italy, the Benelux countries together with West Germany signed the Treaty of Paris (1951) creating the European Coal and Steel Community the following year. The attempt to turn the Saar protectorate into a "European territory" was rejected by a referendum in 1955. After failed attempts at creating defense (European Defense Community) and political communities (European Political Community), leaders met at the Messina Conference and established the Spaak Committee which produced the Spaak report. The report was accepted at the Venice Conference (29 and 30 May 1956) where the decision was taken to organize an Intergovernmental Conference. The Intergovernmental Conference on the Common Market and Erratum focused on economic unity, leading to the Treaties of Rome being signed in 1957 which established the European Economic Community (EEC) and the European Atomic Energy Community (Euratom) among the members.

19581972 Three communities

The two new communities were created separately from ECSC, although they shared the same courts and the Common Assembly. The executives of the new communities were called Commissions, as opposed to the "High Authority". The EEC was headed by Walter Hallstein (Hallstein Commission) and Euratom was headed by Louis Armand (Armand Commission) and then Etienne Hirsch. Euratom would integrate sectors in nuclear energy while the EEC would develop a customs union between members. Throughout the 1960s tensions began to show with France seeking to limit supranational power and rejecting the membership of the United Kingdom. However, in 1965 an agreement was reached to merge the three communities under a single set of institutions, and hence the Merger Treaty was signed in Brussels and came into force on 1 July 1967 creating the European Communities. Jean Rey presided over the first merged Commission (Rey Commission).

European Union (EU)

19731993 Enlargement to Delors

After much negotiation, and following a change in the French Presidency, Denmark, Ireland and the United Kingdom (with Gibraltar) eventually joined the European Communities on 1 January 1973. This was the first of several enlargements which become a major policy area of the Union. In 1979, the European Parliament held its first direct elections by universal suffrage. 410 members were elected, who then elected the first female President of the European Parliament, Simone Veil. A further enlargement took place in 1981 with Greece joining on 1 January, six years after applying. In 1985, Greenland voted to leave the Community after gaining home rule from Denmark. Spain and Portugal joined (having applied in 1977) on 1 January 1986 in the third enlargement recently appointed Commission President Jacques Delors (Delors Commission) presided over the adoption of the European flag by the Communities in 1986. In the first major revision of the treaties since the Merger Treaty, leaders signed the Single European Act in February 1986. It was a major component in completing the single market and came into force on 1 July 1987. In 1987 Turkey formally applied to join the Community and began the longest application process for any country. In 1989, following upheavals in Eastern Europe, the Berlin Wall fell, along with the Iron curtain. With a wave of new enlargements on the way, the Maastricht Treaty was signed on 7 February 1992 which established the European Union when it came into force the following year.

19932004 Creation
On 1 November 1993, under the third Delors Commission, the Maastricht Treaty became effective, creating the European Union with its pillar system including foreign and home affairs alongside the European Community. The 1994 European elections were held resulting in the Socialist group maintaining their position as the largest party in Parliament. They took office on 23 January 1995. On 30 March 1994, accession negotiations concluded with Austria, Sweden and Finland. The 1990s also saw the further development of the euro. The 1 January 1994 saw the second stage of EMU begin with the establishment of the European Monetary Institute and at the break of 1999 the euro as a currency was launched and the European Central Bank was established. On 1 January 2002 notes and coins were put into circulation, replacing the old currencies entirely. The Nice Treaty was signed on 26 February 2001 and came into force on 1 February 2003 which made the final preparations before the 2004 enlargement to 10 new members.

European Union (EU)

2004present Recent history

On the 1013 June 2004, the 25 member states participated in the largest trans-national election in history. On 22 July 2004, Jos Manuel Barroso was approved by the new Parliament as the next Commission President. However his new team of 25 Commissioners faced a tougher road. The Prodi Commission had to extend their mandate to the 22 November after the new line up of Commissioners was finally approved. A proposed constitutional treaty was signed by plenipotentiaries from EU member states on 28 October 2004. On 13 December 2007 the treaty was signed, containing opt-outs for the more eurosceptic members and no state-like elements. The Lisbon treaty finally came into force on 1 December 2009. It created the post of President of the European Council and significantly expanded the post of High Representative. The 2009 elections again saw a victory for the European People's Party, despite losing the British Conservatives who formed a smaller eurosceptic grouping with other anti-federalist right wing parties. In 2007, the fifth enlargement completed with the accession of Romania and Bulgaria on 1 January 2007. Also, in 2007 Slovenia adopted the euro, Malta and Cyprus in 2008 and Slovakia in 2009. However, with the risk of a default in Greece, Ireland, Portugal and other members in late 2009-10, euro zone leaders agreed to provisions for loans to member states that could not raise funds.

Objectives
European Union works toward and oversees the economic and political integration of these states. The European Union consists of the European Community (q.v.; formerly European Economic Community) and a framework for unified action by member countries in security and foreign policy and for cooperation in police and justice matters. Within the Union, goods, services, capital and people move freely. The monetary union has advanced to its third stage, and in 1999, a single currency, euro, is going to be introduced. The Regional policy of the European Union (EU) is a policy with the stated aim of improving the economic well-being of regions in the EU and also to avoid regional disparities. The EU's regional policy covers all European regions, although regions across the EU fall in different categories (socalled objectives), depending mostly on their economic situation. In the current 2007 2013 funding period, EU regional policy consists of three objectives: Convergence, Regional competitiveness and employment, and European territorial cooperation.

European Union (EU)

Convergence
By far the largest amount of regional policy funding (over 80%) is dedicated to the regions falling under the Convergence objective. This objective covers Europe's poorest regions whose per capita gross domestic product (GDP) is less than 75% of the EU average. This includes nearly all the regions of the new member states, most of Southern Italy, East Germany, Greece and Portugal, much of Spain, and some parts of the United Kingdom. With the addition of the newest member countries in 2004 and 2007, the EU average GDP has fallen. These regions now receive transitional, "phasing out" support until 2013. Regions that used to be covered under the convergence criteria but are now above the 75% threshold even within the EU-15 are receiving "phasing-in" support through the Regional competitiveness and employment objective. The Convergence objective aims to allow the regions affected to catch up with the EU's more prosperous regions, thereby reducing economic disparity within the European Union. Regional policy projects in Convergence regions are supported by three European funds: the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund.

Regional competitiveness and employment

This objective covers all European regions that are not covered by the Convergence objective. With 16% of the EU's regional policy budget dedicated to this objective, its main aim is to create jobs by promoting competitiveness and making the regions concerned more attractive to businesses and investors. Possible projects include developing clean transport, supporting research centers, universities, small businesses and start-ups, providing training, and creating jobs. Funding is managed through either the ERDF or the ESF.

European territorial cooperation

This objective aims to reduce the importance of borders within Europe both between and within countries by improving regional cooperation. Article I-3 of the Constitutional Treaty, which covers the internal and external objectives of the Union, merges the provisions of the EU Treaty and those of the EC Treaty. These objectives must guide the Union in the defining and implementation of all its policies. The main objectives of the Union are now to promote peace, the Union's values and the well-being of its peoples. These general objectives are supplemented by a list of more detailed objectives:

European Union (EU)

an area of freedom, security and justice without internal frontiers ; an internal market where competition is free and undistorted; the promotion of scientific and technological advance; The promotion of economic, social and territorial cohesion, and solidarity among Member States.

To the objectives already set out in the existing Treaties, the Constitution thus adds the promotion of scientific and technological advance, of solidarity between generations and of the protection of children's rights. Economic and social cohesion now additionally acquires a territorial dimension. Cultural and linguistic diversity, and the safeguarding and enhancing of Europe's cultural heritage, also become Union objectives. Paragraph 4 of Article I-3 is devoted to the Union's promotion of its values and interests in its relations with the rest of the world. This paragraph brings together the objectives from the EU Treaty relating to the common foreign and security policy, and the provisions of the EC Treaty relating to development cooperation:

peace; security; sustainable development of the Earth; solidarity and mutual respect among peoples; free and fair trade; eradication of poverty; protection of human rights (in particular the rights of the child);

Finally, in Part III of the Constitutional Treaty, Articles III-115 to III-122 contain provisions relating to more specific requirements which the Union must fulfill in implementing the Constitution, in particular, equality between men and women, the combating of discrimination, requirements relating to employment and social policy, protection of the environment and consumers and consideration for the specific nature of services of general economic interest.

Functions
The function of the European Union (EU) is to enable closer relations between the member states. It enables a lot of the bureaucracy that used to be involved with those issues to be by past. The EU was also formed as a counter balance to the position of the United States as the only global super power. The E.U does not belong to anybody, each member state has a

European Union (EU)

say in the running of the EU. The EU was formed mainly out of need for stability in Europe after the Second World War, and was a product of firstly economic agreements, which still form the main basis of today's EU. EU plays a great role by doing many welfare activities in whole Europe. Some functions are summed up below:

Support to improve living conditions and create jobs Egypt: 17 August 2011
The European Commission has today approved 100 million for Egypt, to help improve living conditions for the poor in Cairo, create more jobs, and make sustainable energy more widely available. The new support will improve environmental conditions in the area by financing initiatives for waste collection, recycling of solid waste, solar energy systems for health clinics and waste water disposal. It will also raise awareness, through civil society groups, of the environmental challenges facing residents, and help local people - especially women and young people to get involved in developing their own areas. In line with Egyptian priorities and the two Joint Communications of the European Commission and of the High Representative of the EU for Foreign Affairs and Security Policy the European Union's financial support will focus in particular on:

improving the living conditions of the poor population residing in under-served areas in the Greater Cairo region (20 million); implementing trade and domestic market-related reforms which are expected to trigger inclusive economic growth and job creation (20 million); Improving sustainable energy supply for the whole population via the promotion of renewable energy and energy efficiency in conjunction with increasing the financial transparency of the energy sector (60 million).

New support for education and renewable energy Jordan: 17 August 2011
A new 71 million assistance package allocated for Jordan will provide critical support to education, renewable energy and the implementation of the country's European Neighborhood Policy Action Plan. This assistance package focuses on three priority areas: renewable energy, education and support to the implementation of the Action Plan. The following programs will be implemented:

European Union (EU)

Renewable Energy and Energy Efficiency Program (35 million)

The Sectoral Budget Support program will focus on the development and implementation of effective renewable energy policies. This will provide the necessary support to roll-out the 2007-2020 energy strategy, which aims to achieve the ambitious goals of 10% production from renewable energies and 20% energy savings by 2020.

EU Support to Second Phase of Education Reform (23 million)

The Sectoral Budget Support program will provide support to the second phase of education reform. More specifically, the program will focus on the improvement of areas which are less developed but crucial to the reform of the sector. These include the continuous training of teachers, the improved monitoring and evaluation capacities of the Ministry of Education, particularly through the implementation of a reliable Education Management Information System, and an enhanced access to and quality of early childhood and special needs education.

Support for the Implementation of the Action Plan Program III (13 million)

This project will provide various Jordanian institutions with technical assistance and twinning activities, which means a close partnership between an EU member state institution and that of the beneficiary country in order to develop modern and efficient administrations. Such support will help Jordan's institutions meet the commitments undertaken in the context of the EU-Jordan Association Agreement and ENP Action Plan, in addition to complementing the EU support to Jordan's reforms provided through different programs so far. This support comes partly from funds brought forward from 2012.

EGF to help 680 workers in shoe industry Portugal :17 August 2011
The European Commission has approved an application from Portugal for assistance from the EU Globalization Adjustment Fund (EGF). The grant of 1.4 million will help 680 redundant workers in shoe manufacturing to find new jobs. The package of EGF assistance will include skills recognition, vocational training, grants for training at personal initiative, entrepreneurship training and support to business creation, support to self-placement and hiring incentives. The total estimated cost of this package is 2.23 million, of which the European Globalization adjustment Fund has been asked to fund 1.44 million. 680 of the 974 workers made redundant will benefit from the EGF assistance.

European Union (EU)

EU bolsters support for justice and governance Lebanon :17 August 2011
European Union funding, will help to reform the Lebanese justice system by implementing new training for clerks and opening up a national debate on the independence of the judiciary system by giving the Lebanese people chance to make their views heard in conferences and seminars. The funds, part of the Annual Action Program for Lebanon, will also improve the environmental performance of the public sector in Lebanon by helping the Ministry of the Environment to better plan and implement environmental policy. Lebanon's municipalities will also benefit from this program through the provision of new training and expertise to make administration in the municipal sector more effective and better able to manage public funds. The objectives of the program are:

Support to the reform of municipal finance (20 million) Support to Reform Environmental Governance (8 million) Support to the Reform of the Judiciary (5 million)

Fresh European aid for cultural heritage and transport sector Algeria :17 August 2011
A 34.5 million Annual Action Program for Algeria has been adopted by the European Commission. The two projects making up this program will strengthen partnership between the European Union and Algeria. The first project will enhance the protection and development of Algerias cultural heritage through support for priority actions to identify and record this heritage, and tools to protect and exploit it by providing methodological tools, equipment and training. The second project will support the implementation of Algerias new transport strategy, which includes the modernization of the Transport Ministry, support for updating legislation and the regulatory framework, support for institutions in charge of transport safety, and the professionalization of those employed in transport. The following two projects:

Cultural Heritage Protection and Enhancement Support Program in Algeria (21.5 million) Transport Sector Policy Support Program II (13 million)

European Union (EU)

Fresh support for equality and rural development Morocco: 17 August 2011
The European Union has approved the 2011 Annual Action Program for Morocco. Beneficiaries of this fresh support include those living in the rural region of Al Hoceima (19 million) in northern Morocco, which is an isolated area, socially and economically more backward than the rest of the country, and where cannabis-growing is widespread. The program will help improve the living conditions and incomes of the local population by supporting decentralization and local development, job creation and social development, and environmental issues.

Support for the dynamics of integrated development in rural provinces and territories of northern Morocco The 35 million support program for promoting equity and equality between women and men The Making a Success of Advanced Status

EU action following the escalation of violent repression Syria :18 August 2011
The EU condemns in the strongest terms the brutal campaign Bashar al-Assad and his regime are waging against their own people. In recent weeks the Syrian leadership has stepped up its violent crackdown against peaceful protesters and resorted to large-scale use of military force in the cities of Hama, Deir al-Zour and Lattakia. The EU has repeatedly emphasized that the brutal repression must be stopped, detained protesters released, free access by international humanitarian and human rights organizations and media allowed, and a genuine and inclusive national dialogue launched.

World Humanitarian Day: Europe's support to humanitarian work Brussels:18 August 2011
There are more than half a million aid workers in the world today, counting both relief and development personnel. The last detailed assessment of the sector, carried out in 2008, placed the number of humanitarians at 595,000. Space for helping humanity Respect for International humanitarian law

10

European Union (EU)

Finally, the EU is the worlds biggest trader and its currency, the euro, is the second one in international financial markets. It has a web of bilateral and multilateral agreements covering most countries and regions of the globe and spends a billion euros a month in assistance projects in all five continents. Its significant role on the global stage is indisputable. To expand and deepen relations with other countries and regions, the EU holds regular summit meetings with its main partners as well as regional dialogues with countries in the Mediterranean, the Middle East, Asia and Latin America. Although these relationships focused mainly on trade issues at the beginning, over the years they have broadened to cover economic cooperation, energy, science and technology, investment and environmental issues, as well as human rights, the war on terror, international crime and drug trafficking.

Impact of European Union on International Business

The European Union has a great influence on international business and its affairs. The followings are emphasizing the influence of European Union (EU) on international business as well as business affairs globally:

International trade
The European Union has had a significant influence upon international trade, especially in respect of the countries that are member states in the Union. However, it has also had an impact on global trade generally. Internally, trading between the member states within the European Union has become less restrictive, because of the laws and regulations passed. Trade barriers between member states have been virtually eliminated and strict regulations have been applied to ensure fair competition for all. It is partially resulting from these moves that countries like those in the Baltic States are clamoring to join the EU.

Protecting from unfair competition

The EU also protects its member states from unfair competition tactics that other nations might use. The economic power of the Union is such that it can act in this way to greater effect than an individual member would have. For example, the voice of the European Union would be more effective against the might of the United States than would be the voice of a country like Romania. This protection allows the less able member states of the Union to achieve a faster rate of economic growth than they would be able to achieve as a single nation, and to compete on terms that are more realistic.

11

European Union (EU)

Creating power to compete globally

Globally, the European Union has created a power that can compete internationally with superpowers such as the United States. Without the union, the US would hold an unassailable position in world trade. Such dominance could lead to a position of unfair trading, as there would be no realistic competition. Similarly, the Union provides a sizable competitor for the increasing trade emanating from the Far East, with countries such as China currently achieving rapid growth.

Impact on government and enterprises in a global economy

The law of the EU has a great influence on government and enterprises in a global economy, and its repercussions on, and interaction with, other international institutions, in particular the World Trade Organization. Those who are not the member of EU are deprived of various facilities than the members of EU.

Make up a huge market

The 27 countries of the European Union (EU) make up a huge market of potential customers and suppliers for your business. This market can be easier to access than other overseas markets as many of the trading practices, regulations and standards apply throughout the EU. EU countries have introduced to make it easier to trade with each other by Reducing bureaucracy and paperwork, harmonization of standards, moving of people and pricing products or services in Euros. Finally European member states would not allow them to be able to compete fairly, either with other larger members or with large international countries such as the US and China. Therefore, the European Union has provided a fairer platform for international trade.

12