The Evolution and Economic Challenges of the EU
The Roman Empire spanned the Mediterranean region and established a cultural and linguistic unity.
The Carolingian Empire: Charlemagne attempted to restore the Roman Empire.
The Hispanic Monarchy embraced the Iberian Peninsula, Italy, the Netherlands, and the Holy Roman Empire under Charles V and Philip II, defending Catholicism.
The Napoleonic Empire: Under Napoleon Bonaparte, France and its revolution spread across Europe.
After the Second World War (1945), Europe was divided into two blocks: the communist USSR until 1991, and the Western bloc. Some European countries began building:
In 1948, the Benelux Customs Union was established between Belgium, Luxembourg, and the Netherlands.
In 1951, the European Coal and Steel Community (ECSC) was formed, removing trade barriers between Germany, France, Italy, and the Benelux countries.
The Evolution of the European Union
Following the success of the ECSC, in 1957, Germany, France, Italy, Belgium, Luxembourg, and the Netherlands signed the Treaty of Rome, leading to the European Economic Community (EEC), a common market between them.
In 1973, the United Kingdom, Ireland, and Denmark joined. Greece entered in 1981, followed by Spain and Portugal in 1986, creating the Europe of the Twelve.
EU Institutions
The main institutions are:
- The Council of the EU: The legislative body representing the Member States.
- The European Commission: The EU executive branch, consisting of 27 members.
- The European Parliament: Approves laws and the EU budget, with 785 MEPs in Strasbourg.
- The European Council: Composed of the Heads of State and Government, setting the policy of the Union.
- The Court of Justice: Applies Community law.
- The European Court of Auditors: Monitors the budgetary funds.
The EU’s Economic Challenges
- Economic stability
- Economic growth after the crises of the 1990s and 2008
- Reducing unemployment rates and curbing inflation.
The European Central Bank (ECB) was established in 1998 and directs the economic and monetary union, responsible for overcoming the crisis and recession of 2008.
Common Currency
In January 2002, euro banknotes and coins became official. Sweden, the United Kingdom, and Denmark rejected joining the common currency. In January 2007, Slovenia joined the single currency.
Economic Sectors in the EU
The primary sector employs few European inhabitants but is very productive, producing cereals, fruits, vegetables, vines, and olive trees. Fishing is important in countries like Norway, France, and Spain. There are important mineral deposits, but much dependence on foreign oil and gas.
The secondary sector: The European industry is well developed in research and development (R&D).
The tertiary sector: Trade provides the highest income (Japan and USA), along with tourism (Spain, France, Italy, Germany).
European Economic Regions
- The continental center: Comprising Germany, France, the Netherlands, and the United Kingdom. The Ruhr basin, Rotterdam, Paris, and Milan are key areas. Its economic power lies in heavy industry, chemicals, and services.
- The Mediterranean area: Includes Italy, France, Spain, and Greece, focusing on agriculture and tourism.
- The North Baltic region: Includes Denmark, Finland, and Sweden. It has significant technology investments. Estonia, Lithuania, and Latvia are more delayed in development.
- The Central and Eastern Europe area: Includes Poland, Hungary, Slovakia, Malta, Cyprus, Latvia, Lithuania, Estonia, the Czech Republic. The primary sector is strong with cheap labor, needing industrial restructuring of its obsolete communist structures.