EUROPEAN UNION

Project prepared and presented by :Amrita DuttaJinia BiswasShruti JainSmarajit KunduSriparna Chakrabarty

INTRODUCTION• The European Union is an economic and political union

of 28 member states that are located primarily in Europe.• Founded: November 1, 1993• Unemployment rate: 11.0% (Sep 2013) Eurostat• Government debt: 85.2% of GDP (2012) Eurostat• Broadband penetration: 26.50 connections per 100

inhabitants (Jan 2011) Eurostat• Founders: France, Belgium, Luxembourg, Italy, Netherl

ands, Germany• Awards: Nobel Peace Prize

• Operating as a single market with 28 countries, the EU is a major world trading power.

• EU economic policy seeks to sustain growth by investing in transport, energy and research – while minimising the impact of further economic development on the environment.

• The EU's economy — measured in terms of the goods and services it produces (GDP) — is now bigger than the US's: EU GDP in 2012: €12 945 402 million

GOVERNANCE

• The European Union has seven institutions: the European Parliament, the Council of the European Union, the European Commission, the European Council, the European Central Bank, the Court of Justice of the European Union and the European Court of Auditors

EUROZONE• The eurozone, a monetary union, was established in 1999 and

came into full force in 2002. • It is currently composed of 17 member states that have adopted

the euro (€) as their common currency and sole legal tender.• Monetary policy of the zone is the responsibility of

the European Central Bank (ECB) which is governed by a president and a board of the heads of national central banks.

• The principal task of the ECB is to keep inflation under control.• The eurozone has established and used provisions for granting

emergency loans to member states in return for the enactment of economic reforms.

EUROZONE CRISIS

• The Eurozone crisis (often referred to as the Euro crisis) is an ongoing crisis that has been affecting the countries of the Eurozone since late 2009. It is a combined government debt crisis, a banking crisis and a growth and competitiveness crisis.

• The crisis made it difficult or impossible for some countries in the eurozone to repay or refinance their government debt without the assistance of third parties.

• Moreover, banks in the Eurozone are undercapitalised and have faced liquidity problems.

• Additionally, economic growth is slow in the whole of the Eurozone and is unequally distributed across the member states.

TRADE

• With just 7% of the world’s population, the EU's trade with the rest of the world accounts for around 20% of global exports and imports.

• Around two-thirds of EU countries’ total trade is done with other EU countries.

• Trade has been hit by the global recession, but the EU remains the world’s largest player accounting for 16.4% of global imports in 2011. The EU is followed by the United States with 15.5% of all imports, and China with 11.9%.

• The EU was also the biggest exporter, accounting for 15.4% of all exports – compared with 13.4% for China and the 10.5% for the United States.

Trading Partners

• The EU spends around 6% of its annual budget on staff, administration and maintenance of its buildings.

• The European Commission is divided into departments known as Directorates General (DGs), roughly equivalent to ministries. Each covers a specific policy area or service such as trade or environment, and is headed by a Director-General who reports to a Commissioner. Around 38 000 people are employed by the European Commission.

• In the European Parliament, around 6 000 people work in the general secretariat and in the political groups. They are joined by Members of Parliament and their staff. In the Council of the European Union, around 3 500 people work in the general secretariat.

EU ADMINISTRATION

• The EU provides funding and grants for a broad range of projects and programmes covering areas such as:

• Education• Health• Consumer Protection• Environmental Protection• Humanitarian Aid.

EU FUNDING

• Grants for specific projects, usually following a public announcement known as a 'call for proposals'. Part of the funding comes from the EU, part from other sources.

• Public contracts to buy services, goods or works to ensure the operations of EU institutions or programmes. Contracts are awarded through calls for tenders (public procurement) and cover a range of areas: studies, technical assistance and training; consultancy, conference organisation, IT equipment purchases, etc.

• As a group, the 28 EU Commissioners have the ultimate political responsibility for ensuring that EU funds are spent properly. But because most EU funding is managed at country level, national governments are responsible for conducting checks and annual audits.

TWO TYPES OF FUNDING

• The main aim of the Single Payment Scheme is to support farmers' incomes in return for them respecting standards of food safety, environmental protection, animal welfare and keeping the land in good condition. Farmers are encouraged to take their decisions based on market signals.

• Specific support schemes have been introduced or maintained for a number of products. Traders and processors can, under certain conditions, receive export refunds as well as processing aid. 

• The purpose of market management is to respond to market disturbances using measures such as intervention buying or private storage aid or export refunds. 

AGRICULTURAL POLICY

• Under the Rural Development policy 2007-2013, the EU will contribute over €90 billion to Member States investments to improve competitiveness for farming and forestry, to protect the environment and the countryside, to improve the quality of life and diversification of the rural economy.

• Stronger surveillance of national budgets• Sound public finances• Early warning system of macroeconomic imbalances• Structural reforms to foster competitiveness• Firewalls to protect financial stability

POLICIES FOR STABILITY & GROWTH

The EU and national governments share responsibility for policy in the fields of employment, social affairs and inclusion. The EU:

• Coordinates and monitors national policies• Promotes the sharing of best practices in fields such

as employment, poverty and social exclusion and pensions

• Makes laws and monitors their implementation in areas such as rights at work and coordination of social security schemes.

EMPLOYMENT & SOCIAL AFFAIRS

• Globalisation : As a result of advancing globalisation EU industry will become even more integrated into international value chains as global sourcing becomes more complex. Export markets, particularly the fast-growing economies of emerging Asia and the BRICs, will remain vital for EU businesses.

• Technological changes : A variety of radical new developments are emerging that will lead to the formation of new goods, services, and business models that will reshape EU industry. Industry will also be indispensable for finding solutions to the major societal challenges facing the EU and the world.

KEY CHALLENGES

• Climate and energy : Industry needs also to adapt to the challenges posed by climate change and to grasp the opportunities of new low- energy and resource saving processes and products. The ability to adapt to changes will be pivotal for the competitiveness of the European manufacturing and for achieving the EU's overall growth and job objectives. 

• Competitiveness analysis : It pays special attention to the following issues:

• regulatory framework• position of sectors in the international trade• role of research, development and innovation,

knowledge and skills, environmental issues, competition etc.

• Revolving Door : The so-called “revolving door”, or when public sector officials move into private sector jobs and vice-versa, is becoming more of an issue in the European Union with every year. The primary concern in these cases is the tendency for conflicts of interest to arise, in other words, the abuse of inside knowledge attained by these persons while in public office. The issue with the revolving door in regards to the European Union begins when lobbyists or Brussels officers commute between EU institutions and companies without regard to conflicts of interest

• The European Union (EU) has the potential to play a leading role in the provision of Global Public Goods. Although the EU has played a key role in the provision of GPGs, notably on climate policy and food security, it lacks a common strategy for addressing GPG challenges. The EU needs to adapt to the changing global landscape, improve its internal coherence and promote a global vision and development approach with common narratives on the challenges that need to be tackled.

OPPORTUNITIES

• China is making an attempt to secure business ties in a region where the European Union and Russia are increasingly jostling for influence. Analysts say the Asian economic power is interested in energy and raw materials to fuel its economy and in cheap labor at a time when wages are rising at home. Coupled with a strengthening national currency, China's growing labor costs risk crimping its exports, its traditional economic strength. 

• Google Inc. gave European Union regulators a new proposal to settle an almost three-year-old EU antitrust probe into the way it operates its search services. In addition to fining companies for antitrust violations, the European commission may impose orders to change the way firms operate .

• In 2012 the EU had a combined GDP of 16.073 trillions international dollars, a 20% share of the global gross domestic product (in terms of purchasing power parity).[According to Credit Suisse Global Wealth Report 2012 (September), the EU owns the largest net wealth in the world; sit is estimated to equal 30% of the $223 trillion global wealth.

• Of the top 500 largest corporations measured by revenue (Fortune Global 500 in 2010), 161 have their headquarters in the EU. In 2007, unemployment in the EU stood at 7% while investment was at 21.4% of GDP, inflation at 2.2%, and current account balance at −0.9% of GDP (i.e., slightly more import than export). In 2012, unemployment in the EU stood, per August 2012, at 11.4%.s

CONCLUSION

• www.europa.eu• www.wikipedia.org• www.economictimes.com• www.google.com

BIBILIOGRAPHY

Thank You

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