The European Union

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The European Union

By Sarah Dawson 

What’s the European union?

The European Union, or European Community (EEC) as it was known then, was established in 1957. It was created to look at the economy of some of the countries in Europe after the Second World War had dramatically crippled it. The committee was set up so that it would be easier for the countries to         trade without too much trouble. This was called the common market. It was also set up so that there would be a lasting reconciliation between France and Germany (because obviously Germany was the 'enemy'.) Another reason why it was set up was to develop some kind of political union so that there would be less change on a World War Three. So to summarise the European Union is a union which has 15 countries that all try to work together to help trade, tourism, social and environmental issues. It is constantly coming up with new ideas and rulings that make the country members of the EU nice places to live. Europe without the EU would be a poorer place to live.

 The benefits of joining the EU

There are several benefits for businesses and people:

-Can encourage trade between the member countries

-It can help the candidate countries to reduce the cost to firms because no commission will be needed on exchanging money

-More competition because there will be an increase in trade and might make firms lower costs and boost the economy.

-We should aware the fact that firms can take advantage of economies of scale when they start to trade in one large market.  

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The costs of joining the EU

There are also many disadvantages too:

-They argue that the trade cycles of the countries from the EU may not be sufficient enough to be in line with each other to support a single interest rate.  

        -Members of the EU have also got to pay an amount each year towards the EU budget.  This can be a disadvantage, as it will decrease their budget for the country.  

-Domestic firms may suffer from competition because companies may trade with other countries.

-There are worries that EU integration will cause a loss ...

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