• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Reasoning behind the European union being set up, and why the UK benefits from membership of this bloc.

Extracts from this document...

Introduction

ECONOMICS OF EUROPE Reasoning behind the European union being set up, and why the UK benefits from membership of this bloc" In a variety of forms the European union (EU) has been in existence for over 40 years, originally formed as the European Economic Community (EEC) with the treaty of Rome in 1957 and came into operation on 1 January 1958. The six original member countries (Belgium, France, Italy, Luxemburg, Netherlands and West Germany.) had already made a move towards integration with the formation of the European Coal and Steel Community, 1952. This removed all restrictions on trade in coal, steel and iron ore between member states. The aim was to gain economies of scale and allow more effective competition with the USA and other foreign producers. This principle was to be extended and aimed eventually to be a full common market with completely free trade between members in all products, and completely free movement of labour, enterprise and capital. By 1968 all internal tariffs between the six member states had been abolished and the common external tariff established, although a number of restrictions on internal trade still remained (administrative, legal, etc) ...read more.

Middle

Those American firms employ almost one million British people. The European union now has a common external tariff and no internal tariff, a customs union. There were many common economic policies such as the Common Agriculture Policy (CAP), Regional Policy etc. one of the most fundamental changes in the EU was the Maastricht treaty, 1992. Although an extension to the treaty of Rome, it represents a major step for the union. It aims towards full political, economic and social union. Some of the major objectives are; * To create economic and social progress through an area without internal frontiers and through economic and monetary union (EMU) * To develop a common foreign, security and defence policy which might lead to common defence. * To introduce citizenship of the union. Since 1993 trade within the EU has operated very much like trade within a country. This means, in theory, a firm in Birmingham could sell its goods to Paris just as easy as to London. This will benefit British firms a lot due to increased exports. 53% of Britain's exports go to EU countries, as they can trade with all the EU countries with no border controls, tariffs etc. ...read more.

Conclusion

Such industries of agriculture benefited from the EU as well, as policies were set up such as Common Agricultural Policy (CAP). This involves the union setting high prices for farm products. This involves charging variable import duties to bring foreign food imports up to EU prices and intervention to buy up surpluses of food produced within the EU. Firms will also benefit from the increased mobility of labour. People will be able to travel in work within member states with much more ease, which will enable countries to hire in more experienced or specialized staff. There are many benefits to the UK individual of being a member of this bloc to. For example 'duty free' before 1993 if you were traveling in Europe you were limited to a certain amount of goods to take across the border without paying VAT. Now you can take as many goods as you like from one EU country to another, provided they are for your own consumption. However there are some specified amounts to stop fraud. * APPLIED ECONOMICS, Alan Griffiths & Stuart Wall * ESSENTIALS OF ECONOMICS, John Sloman * THE SCOTSMAN NEWPAPER * THE SUN NEWSPAPER * WWW.4STERLING.ORG * europa online ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level European Union section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level European Union essays

  1. Marked by a teacher

    The European Union and UK Businesses

    3 star(s)

    The Treaty of Amsterdam (1997) The Treaty of Amsterdam was approved by the European Council held in Amsterdam on 16th -17th June 1997 and signed on 2nd October 1997 by the Foreign Ministers of the fifteen member countries of the European Union.

  2. George Washington: America's Greatest Leader

    mass of means and efforts greater strength, greater resource, proportionally greater security from external danger, a less frequent interruption of their peace by foreign nations; and, what is of inestimable value, they must derive from union an exemption from those broils and wars between themselves, which so frequently afflict neighbouring

  1. Transformation of the U.S. Hegemony in Europe through NATO after the Cold War

    continued to voice its concerns that may have further indications on its role. Military and economic culture is what was created with the diplomats and officials through WEU and NATO and according to the U.S.; this created a buffer institution out of the EU and will slowly wipe down this culture.

  2. What does citizenship mean in the European context?

    political entitlement is the celebration of a bureaucratically sanctioned polity of "multi-cultural" groups composed of mono-culturally identified individuals - the antithesis of individual differentity. Likewise, the introduction of a European Citizenship could constitute an attempt to construct and reflect a recognition of fragmented Sovereignty in the sense so impressively and

  1. Advantages of UK membership to the European Union cover many fields

    This makes consumers feel safer and leads to a single market. The membership of the UK also benefits British students. It allows students to be educated, be trained or work in member states. More than 10,000 UK university students a year are taking advantage of the opportunity to study in

  2. An examination of British policy with regard to European Unity during the period 1945 ...

    Thus, as is further exemplified, Britain had sought unity only when it was in tandem with it's own needs. In this case, as Barker (1983) notes, Britain displayed an initial willingness for European unity but only with ulterior, selfish motives.

  1. Examine the reasons for the different attitudes to European integration in Denmark, Finland, Norway ...

    Johnny N. Laursen and Thorsten Borring Olesen (A Nordic Alternative to Europe? The Interdependence of Denmark's Nordic and European Policies, pp. 223-59) examine the viability of Nordism, i.e. close co-operation and possible integration of policies of the Nordic states as seen from the Danish point of view.

  2. The Institution of the European Union and Theories.

    also known as the common market, as an economic association of western European countries. The treaty of Rome has been amended several times to take account for the new member states joining the EEC. Once a treaty has been signed , it must be ratified by all member states before it comes into force.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work