European Union: History, Structure, Policies, and Impact
1. Process of the Creation of the European Union
1.1 The Need for European Trading
The creation of a European common market was not a new idea. The variables expressed in the treaty signed in 1957 in Rome by Germany, France, Italy, Belgium, and Luxembourg. To get treated, the EEC introduced a number of concrete policies: the free circulation of capital, goods, and services, and encouraged people with a set of measures such as freedom and development of competition laws.
1.2 The European Union
In 1992, with the EU treaty, a free space between frontiers without civilization was signed in Maastricht. This new treaty established fixed rights for citizens, and solidarity with the least developed regions. One of the most important initiatives has been the Economic Union. The approval of the Euro on January 1st, 1999, became the common currency for eleven of the fifteen states. On January 1st, 2002, the Euro effectively started circulating.
1.3 The Unity of Europe
Despite its diversity, the countries that make up the EU share fundamental values of peace, the state of democracy, and respect for human rights. During half a century, the EU has increased the level of life of its citizens. Its success can be considered the consolidation of the commercial market, consolidated in other areas such as defense policy or social and cultural aspects.
2. The European Union
2.1 Objectives of the EU
The EU is organizing relations in solidarity between the states. The objectives are:
- The momentum of economic and social progress: the establishment of a clearance of borders or unique markings since 1992 and the introduction of a single currency.
- The affirmation of European identity in the international arena: the drive for humanitarian aid and involvement in problem-solving.
- The implantation of a European citizen: rights and duties involve establishing commonalities.
- The space of development, freedom, security, and justice: which means citizens can travel freely between states.
- Maintenance and development of a sense of community: the development of certain common laws or rules in all EU states.
2.2 The EU and Heterogeneity
The EU is a patchwork of states. This is manifested both in its development and in its diversity. Despite cultural unification and EU integration, there are significant social and economic differences, not only between states but also between regions of a single state. With the entry into force of the EU treaty, it became more urgent to reduce regional disparities.
2.3 A Joint Regional Policy
To correct the regional economic imbalances that currently exist, the EU’s regional economic policy focuses on more than one-third of the community budget. This economic policy is based on the development of structural funds and cohesion funds. It is intended for the following purposes:
- Concession of loans for investments in the poorest regions.
- Creation of transport infrastructure and power supply.
- The realization of public works for the solution of environmental problems and general technical assistance.
- Political development in the common areas of education, culture, youth problems, etc.
- The creation of jobs.
- Granting loans and subsidies to help maintain agriculture and fisheries.
2.4 The EU Broadening
With the addition of several states in 2004 and since 2007, a series of imbalances have been shown between new and old member countries. There is a very different degree of development, both socially and politically. For that reason, to reduce important differences, one part of the community funds is used for the functioning of the states. The European project has developed numbers from the constitution.
3. Institutions of the European Union
The EU is formed by a series of supranational organizations or institutions. The most important institutions are:
3.1 The European Executive
Composed of the heads of state or government. It is the highest political body and is in charge of defining the general orientations of the EU.
3.2 The Council of Ministers
Formed by representatives of the states that integrate the EU. The Council of Ministers makes the most important decisions. Decisions are taken unanimously or by majority.
3.3 The European Parliament
Elected by universal suffrage. These are organized into political groups according to the parties they represent. The Parliament exercises legislative functions and can reform laws.
3.4 The European Commission
Acts as the executive. It guarantees compliance with European regulations. The Commission is formed by the President and the Commissioners. All are elected by the member states for a term of four years.
3.5 The Court of Justice
Exercises the judicial function, ensures compliance with the interpretation and application of EU laws.
3.6 The Defender of the People
Can be addressed by citizens of the member states if they have considered that they have been treated unfairly.
3.7 Other Institutions
They are the European Central Bank, which manages the Euro and monetary policy, and the Court of Auditors. There is also the Committee of the Regions, the European Investment Bank, and the Economic Council.
4. Agricultural and Fisheries Policy of the EU
4.1 A Common Agricultural Policy
This policy of aid justifies the modernization and management of large installations to foster intensive agriculture and concentration. It favors the improvement of farms and lends money to farmers at low interest rates. It ensures farmers an interesting price for their products, so if they are not sold, the EU buys their surplus. The EU limits the importance of food from outside countries to harm developed economies.
4.2 Objectives of the EU’s Agricultural Policy
The purpose is to obtain consumption within the EU, which has resulted in a large increase in production. To solve the problem of excess production, the EU has new proposals:
- Reduce the surface area of crops, especially less fertile land.
- Convert a part of the crop land into a forested area.
- Significantly reduce the guarantee prices paid by the EU.
4.3 The Importance of the CAP
4.4 The Community Fisheries Sector
22 out of 27 EU states are maritime. In some cases, the fisheries sector is very important, such as in the United Kingdom, France, Denmark, Spain, the Netherlands, and Italy. These countries have a large economic activity generated in fishing, as well as related sectors such as shipyards, industries, distribution networks, etc. The Common Fisheries Policy (CFP) is in charge of establishing exclusive fishing zones and the volume and size of catches.
5. Major Industrial Axes of the European Union
5.1 Principal EU Industrial Zones
These areas are among the most important in industrial production, together with North America and Japan. They are the origin of European economic development and employ nearly 25% of the workforce. The main shopping area runs from the south of the United Kingdom to the north of Italy. It is characterized by traditional industry. This type of activity has been reduced since the early 1980s. Currently, they receive investments from the West because of lower wages and production costs.
5.2 The Industry
Currently, in the EU, while older industries are in a time of recession, high-tech industries are in a phase of dynamism. However, they have a problem with the lack of power resources such as oil and raw materials. By setting lower prices, they have meant moving factories to countries with the consequent industrial delocalization.
6. Services, Trade, and Communications in the EU
6.1 Towards a Service Economy
EU countries get most of their wealth and employ over 65% of the active population in services, trade, sports activities such as banks, transport, and education. The extraordinary technological development of the last two decades has permitted an enormous production of agricultural goods. Likewise, advanced societies enjoy new sports activities related to social needs.
6.2 Trade
Trade between the member countries of the EU and the rest of the world acquires a great volume. Thus, in 2005, EU countries imported goods worth 1,179,990 million euros and exported goods worth 1,070,478 million euros.
6.3 Transport
To circulate goods and people, the EU has a strong transport network. The majority of EU transport is carried out by road. The EU network intends to improve maritime transport of goods. Rail transport between EU countries accounts for 90% of trade with the rest of the market. Air transport is a key element for the single market and the economic and social cohesion of the EU.
7. Spain in the EU
7.1 Spain in Europe
The first steps in European construction occurred without Spain. At that time, it was subjected to an undemocratic dictatorial regime and did not fulfill the required prerequisites of the project. In February 1979, with Spain in democracy, negotiations were opened for Spanish accession to the EEC. Spain requested a period of adaptation in areas related to the customs union and certain monopolies.
7.2 The Subsequent Inclusion of Spain in the EEC
With the entry of Spain and Portugal into the European Economic Community in 1986, it reached 329 million inhabitants. Spain has 8 votes in the Council of Ministers, while the European Commission was integrated by 17 commissions. After the enlargements of 2004 and 2007, Spain has a single commissioner and 54 deputies in the European Parliament out of 736 members.
7.3 The Balance of Spain’s Incorporation into the EU
Spain’s economic and social development enjoyed today is due in part to the integration process itself. Spain has received EU funding worth 0.8% of GDP each year since 1987. Spanish per capita income in 1986 was barely 68% of the EU average. Approximately 300,000 jobs are created annually in Spain. In addition, 98% of the investment Spain receives comes from outside the EU.
7.4 The Utilization of EU Funds
EU funds have financed many projects in Spain. Thanks to these funds, 40% of the sections of the Spanish high-speed train were built in the 20th century. Expansions of the Madrid and Barcelona airports, as well as language schools. Programs such as Erasmus have benefited 180,000 Spanish students. The European health insurance card covers medical treatment, the restoration of the Court of the Lions, the Alhambra, and the Monastery of Guadalupe.