Is the European Union a Global Power?

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 Is the European Union a Global Power?

Since its inception the European Union (EU) has continually grown in power and size, and it now boasts 27 member states, a powerful central economy, the worlds 3rd largest population and burgeoning unified military policy.  This essay will discuss whether or not the EU has achieved global power status, by examining its global economic, military and political roles and power.  

Is the E.U a Global Economic Power

Japan in the 1970s claimed to be first state to become a global power on the basis of its economic strength, suggesting that while it was incapable of projecting military force, its economic power meant it was able to project global power through the use of its economic and industrial might.  If economic power alone can classify a region as a global power then it could be argued that the E.U has a claim to the title.  “There are various ways of measuring the size of an economy with Gross Domestic Product being the most commonly quoted”.  According to the International Monetary Fund (IMF), the World Bank, and the Central Intelligence Agency (CIA) world fact book, the E.U has the highest Gross Domestic Product (GDP) of any area in the world eclipsing the United States, even when their total is combined with that of all other North American Free Trade Agreement (NAFTA) members.  In 2007, the IMF estimated the E.U’s nominal GDP at $16,853 billion.  This is a figure that has soared over the past decade, growing almost threefold from an estimated $6,000 billion in 1998.  This growth is likely to continue in the future, as it was driven by the E.U’s enlargement, the Union growing by 12 members between 2004 and 2007.  “The Situation however is not static” , and with many other candidate countries standing in the wings to ascend to membership, it seems unlikely that the E.U’s accumulation of total wealth will falter in the near future.  

 As a single entity, with the 3rd largest population in world, the E.U can also command a powerful domestic market to ensure economic stability, as well as being an attractive area for investment with “a market of more than 450 million consumers bigger than the U.S and Japan combined, sharing some very positive benefits”.   While, according to the IMF, it has only the 13th highest per capita GDP in the world, this low rating is due to recent enlargements that have taken place, in total since the final states joined in 2007 the E.U per capita GDP dropped by 16%.  If the new members prosper economically, as previous economically weak nations have since joining the E.U, per capita GDP is bound to increase.  For example Ireland, who on joining the E.U had a GDP which was just 60% of the average E.U member at the time, today has a substantial and powerful economy which has moved from receiving E.U subsidies to being a net in putter into E.U funds.  Indeed, in their 2006 report on the Euroland economies, PricewaterhouuseCoopers noted that “Ireland had the fastest growing Euroland economy in 2006 and is expected to maintain its first place in the monetary union growth rankings in both 2007 and 2008”.

However despite this show of demonstrable prosperity within in the E.U, in order for the EU to be considered a global power it must demonstrate how it can effectively manage the power of its economy and market to have a global impact.  “The most powerful actors in the new international environment will be those that create opportunities, not those that issue threats”.  This statement defines how the EU attempts to have an impact economically on the global level, endeavouring to encourage global economic change rather than to enforce it.  

Perhaps the most obvious area for the E.U to have a global economic impact in is in trade, and “the E.U is big and influential in trade matters”, the union accounting for “approximately 20 percent of world exports” .  This has generated “huge demand for agreements with the community, the largest trading bloc in the world”.  This is because the E.U has a “common policy that operates along federal principles” meaning that the E.U is able act in a unified fashion, the best example of this unification being that at the World Trade Organisation (WTO) where the E.U acts as an emissary for all E.U countries speaking with one for voice “in fact the three major powers of the WTO are clearly the European Community, the United States and Japan”.  This means “when it comes to promoting its arguments in the WTO or in bilateral or regional discussions the E.U has relatively good tools at its disposal”  and is more successful than states acting on an individual level.  This unified voice has allowed it to by-pass or ‘loosely interpret’ certain global finance and trade regulations with little consequence, such as the use of Anti-Dumping regulations which the E.U often uses “to protect European manufacturers from competitive, non-European companies”.  This has lead to criticisms from both other states that see the European Union as flouting global regulations and economists who see the E.U’s actions as protectionist and moving “towards over-regulation and the use of political power to handicap market choice”.  However, whatever the arguments maybe as to whether or not the E.U is using its economic power properly, they do not change the fact that it has this power to override supranational organisations, with very little consequence, setting its own economic policies which due to the size and market the E.U represents have global effects.  The success of the E.U in the area of trade has meant that other global economic powers such as the U.S, who used to condemn it for its actions such as overriding many Global economic regulations, have begun to try to emulate it.  The E.U becoming viewed as an “effective laboratory”, as other regions of the world seek to create “large regional systems bringing together sovereign nation-states”.  The most obvious example of  being the North American Free Trade Agreement (NAFTA), an agreement which has created a free trade area not unlike the E.U between the U.S, Canada and Mexico.  This influence on world economic systems is a real example of how many E.U members wanted the E.U to change the world, and by having many sovereign states coming together and acting in unison they have “given ourselves the means to influence the world”.

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The E.U has also built extremely strong economic ties with less economically developed nations (LEDCs) becoming the lead international figure in attempts to “establish a basis for a new North-South partnership”.  It established this role originally with the treaty of Rome agreements which established “bilateral free trade areas with overseas territories” primarily with former colonies.  These agreements were then replaced by the Cotonou Convention, which came into force in 2002,  establishing relations between the E.U and 79 African, Caribbean and Pacific (ACP) states setting itself the goals of poverty reduction, new economic and trade partnerships and improved financial co-operation”.  These ...

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