The European Union

THE EUROPEAN UNIONHow do individuals, businesses and economies

benefit from using the Euro?

The European Union

Where in the world is the EU?

2

The European Union

3

28

7

30

508million

Member States

Combined population ofEU Member States

Percent of world’spopulation

Percent of global GDP

56Percent of combinedworldwide OfficialDevelopment Assistance

The European Union

Population in millions, 2012

508

1343

127 143

314

EU China Japan Russia United States

EU Population in the World

5

The European Union

Area of the EU compared to the rest of the world

Surface area, 1 000 km²EU China Japan Russia United States

16 889

9327 9159

4290

365

6

The European Union

1952:

Founding Members

BelgiumFrance

GermanyItaly

LuxembourgNetherlands

The European Union

1973

DenmarkIreland

United Kingdom

The European Union

1981

Greece

The European Union

1986

PortugalSpain

The European Union

1989

Fall of theBerlin Wall

sets thestage forunifying

Europe andEU

enlargement

Poland’s Solidarity

Party gains legal status

The European Union

1995

AustriaFinlandSweden

The European Union

2004

CyprusCzech Republic

EstoniaHungaryLatvia

LithuaniaMaltaPoland

SlovakiaSlovenia

The European Union

2007

BulgariaRomania

The European Union

Free movement of goods• No customs duties between the member states

• The EU also prohibits charges having an equivalent effect of customs duties.

The European Union

Free movement of services

The freedom prohibits restrictions on free circulation of services within Member States.

Examples:

• Postal service

• Internet purchases

• Banking

The European Union

Free movement of people

• The right to travel.

• The right to work in any member state.

• The right to settle in any member state.

The European Union

Free movement of capital

Capital within the EU may be transferred in any amount from one country to another.

The European Union

The Euro

In 1999, the euro area was established as a currency in eleven of the then fifteen EU Member States.

Of the 28 EU Member States today, seventeen have adopted the euro. Estonia most recently joined in 2011, and Latvia is expected to adopt the euro in 2014.

In response to the economic and financial crisis, the EU created a new set of rules on enhanced EU economic governance which entered into force in December 2011.

€

€

€

The European Union

Before the Euro: a multitude of currencies

• Cumbersome inter-state trading

• Comparing prices more difficult

• Currency exchange can be unpredictable in contracts/ loans

The European Union

The Euro: a single currency for Europeans

• Austria• Belgium• Finland• France• Germany• Greece

• Italy• Ireland• Luxembourg• Netherlands• Portugal• Spain

The 12 countries that introduced the Euro in 2001:

The European Union

The Euro: a single currency for Europeans

EU countries using the euro in 2013

EU countries not using the euro

Can be used everywhere in the 17-country euro area

Coins: one side with national symbols, one side common Notes: no national side

New Euro countries since 2001:

• Cyprus (2006)• Malta (2006)• Slovakia (2008)

•Slovenia (2009)• Estonia (2011)

The European Union

Some of the Euro’s benefits

• European Central Bank keeps price inflation low so interest rates also remain low

• Travelling is made easier

• Comparing prices is made simpler

• International trade is facilitated

• Currency exchange costs are eliminated

The European Union

Celebrating the European Union -A Half Century of Change and Progress

• Since the creation of the EU over half a century ago, Europe has enjoyed the longest period of peace in its history.

• EU enlargement has helped overcome the division of Europe – contributing to peace, prosperity, and stability across the continent.

• A single market and a common currency benefit companies and consumers.

• EU has united the citizens of Europe – while preserving Europe’s diversity.

European UnionUnited in diversity