European Union

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European Union

European flag

Motto: In varietate concordia


(Latin: Unity in diversity)

Headquarters

Brussels

Parliament

Strasbourg (official seat), Brussels, Luxembourg City

Official languages2

Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish,
Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Slovak, Slovene, Spanish, Swedish

Area
 - Total

Ranked 7th3
3,976,372 km²

Population
 - Total (2005)
 - Density

Ranked 3rd3
457,030,418 (EU-25)
116.4 people/km²

Largest city

London

GDP (2005)
 - Total (nominal)
 - Per capita (PPP)

Ranked 1st3
$13,926,873,800,000
$26,900

The European Union or EU is an intergovernmental and supranational union of 25


European countries, known as member states. The European Union was established under
that name in 1992 by the Treaty on European Union (the Maastricht Treaty). However,
many aspects of the Union existed before that date through a series of predecessor
relationships, dating back to 1951. According to the Lisbon Agenda the European Union
or EU is to become until the end of the decade the most advanced economic, technological
and cultural area of the Earth.
The European Union's activities cover all areas of public policy, from health and economic
policy to foreign affairs and defence. However, the extent of its powers differs greatly
between areas. Depending on the area in question, the EU may therefore resemble:
 a federation (for example, on monetary affairs, agricultural, trade and environmental
policy)
 a confederation (for example, on social and economic policy, consumer protection,
home affairs)
 an international organisation (for example, in foreign affairs)

A key activity of the EU is the establishment and administration of a common single


market, consisting of a customs union, a single currency (adopted by 12 of the 25 member
states), a Common Agricultural Policy and a Common Fisheries Policy.

European Union member states


Current members
There are currently 25 member states in the European Union. Together with their dates of
accession, these are:
 Austria (1995)
 Belgium (founding member: 1952/58)
 Cyprus (2004)
 Czech Republic (2004)
 Denmark (1973)
 Estonia (2004)
 Finland (1995)
 France (founding member: 1952/58)
 Germany (founding member: 1952/58)
 Greece (1981)
 Hungary (2004)
 Ireland (1973)
 Italy (founding member: 1952/58)
 Latvia (2004)
 Lithuania (2004)
 Luxembourg (founding member: 1952/58)
 Malta (2004)
 The Netherlands (founding member: 1952/58)
 Poland (2004)
 Portugal (1986)
 Slovakia (2004)
 Slovenia (2004)
 Spain (1986)
 Sweden (1995)
 United Kingdom (1973)

Future and prospective members


Acceding nations

Acceding countries (with year of submitting and accession):


 1995, Bulgaria, completed negotiations, set for membership in 2007.
 1995, Romania, completed negotiations, set for membership in 2007.

Candidate nations

The following states have submitted applications for EU membership (with year of
submitting):
 1987, Turkey, expected to start negotiations in October 2005. (EU-Turkey Customs
Union is in force since 1995)
 2003, Croatia, was set to start negotiations in March 2005, but they have been
postponed.

Other nations

 2004, Republic of Macedonia, currently in the process of being recognized as a


candidate country by the EU.

 Switzerland has a long-standing EU membership application. The Swiss


government's stated long-term aim is for Switzerland to join the EU when certain
key conditions are met [1]. A recent study by the Demoscope institute found that
51% percent of those polled were against EU membership.

 Norway has previously submitted applications, but twice rejected membership in


referenda. In November 2004, a study by the Opinion Institute found 56% of those
who expressed an opinion were in favour of joining the EU, ten years after rejecting
the idea by referendum. A representative of the institute stated that this has been the
balance of power for two to three years. This was confirmed by another poll in April
2005. After two rejections of the EU constitution in France and Netherlands, 59% of
Norwegians were opposed to membership in the EU according to a survey taken
immediately after the referenda. Prime Minister Kjell Magne Bondevik, a leading
figure in the 1994 'no' campaign who now sees the benfits of intergration, plans to
raise the subject of joining midway through the next parliament, although the matter
will not form part of his election manifesto. Norway's two largest political parties,
Labour and the Conservative Party, are largely pro-EU but supporters of EU
membership say they are waiting for public opinion to stabilise before launching a
third campaign. A new EU membership debate will be started after 2007, when a
date for a referendum will be set and, pending a positive outcome, negotiations will
be launched on Norway's accession

Brussels says things are looking up for euro zone economy


12.08.2005 - 09:53 CET | By Lisbeth Kirk

EUOBSERVER / BRUSSELS – The European economy appears to be regaining some


momentum and the indications are that things will continue to improve in the
second half of the year, the European Commission announced yesterday (11
August)

Presenting its growth figures for the second quarter of 2005, the Commission said
that the euro zone had grown by 0.3%, a much stronger performance than most
analysts had expected, although weaker than the 0.5% seen in the first three
months of the year.

The figures were helped by some surprisingly strong economic growth from Italy,
which has rebounded from recession but were dragged down by stagnation in
Germany, Europe’s largest economy.

The Commission also said that growth should be higher in the fourth quarter of the
year (September to December), forecasting 0.4%-0.8%.

The economy should be spurred on by better economic conditions globally and the
fact that the recent decline in the value of the euro against the dollar has made life
easier for European exporters, Brussels said.

The European Central Bank also sounded a slightly more optimistic note on the
European economy. In its monthly report published yesterday, the Bank said that
the economy should grow in a "sustained, albeit gradual manner".

Although this may not seem like an especially optimistic outlook, it represents a key
departure from the ECB’s usual language and signals a marked change in the Bank’s
usually more gloomy assessment of the economy.

However, there was little comfort for those euro zone politicians calling for lower
interest rates. The ECB repeated its opinion that it believes rates – at a historically
low level of 2% - were "appropriate".

And the Bank warned that high oil prices, which continue to rise strongly, could
dampen the recovery. The ECB said it was also worried about the low level of
consumer confidence in the euro zone.

Economists and market participants now expect the Bank to increase borrowing
costs rather than decrease them, which would potentially slow the economy and
harm the consumer.

Fear of 'youth drain' from new member states


11.08.2005 - 08:44 CET | By Honor Mahony
EUOBSERVER / BRUSSELS - Some new member states are battling with a 'youth drain'
as well-qualified young people leave for jobs in western Europe, according to a new
report.

Published on Wednesday (10 August) by the NGO, European Citizen Action Service
(ECAS), the report suggests that "3% to 5% of young new member states nationals
who [have] completed a third-level education tend to leave their home countries for
better wage prospects".

"Sending countries (such as Poland or Hungary) fear not simply a brain drain but
rather a youth drain", states the report.

Statistics show that workers tend to be predominantly young (18-34) and male.

Poland, as the biggest new member state, has the most nationals abroad. Poles make
up the biggest number of eastern workers in the UK (98,235 or 56%), Ireland
(40,000) and Sweden, where Poles account for 60 percent - all three member states
opened their borders to new member state workers.

In Germany, where there is a seven-year transitional period before free movement is


allowed, Poles are again the most numerous, with 216,575 seasonal workers and
almost 20,000 contractual workers registered in the first half of 2004.

Scare-mongering
ECAS says that the statistical data on migration within the EU since enlargement last
year shows that fears about an influx of workers to old member states proved to be a
myth.

"The scare-mongering was wrong", said Tony Venables, head of ECAS adding "There is
still an enormous gap between the public perception of enlargement and what is
happening on the ground".

The authors of the report suggest that particularly in the UK, Ireland and Sweden,
migrants from new member states tend to be temporary, so do not bring their family,
and take jobs that others cannot or will not do.

In Warsaw, for example, a training school has been set up to prepare Polish dentists to
work in Britain, where there is a lack of dentists.

Ireland most popular destination


However, the lack of restrictions in the UK, Sweden and Ireland has led to a sharp
increase in the numbers of workers coming to these countries, when compared to pre-
enlargement data.
In the UK, 175,000 workers have registered - much higher than the 5,000 to 10,000
predicted by the British government.

Similarly, in Ireland, 85,000 social security numbers have been allocated to migrants
from accession countries, a high percentage for the small four-million strong country.

In Sweden, which is the only country that also allows equal access to its social security
system, there was a 70 percent increase in the number of applications for residence
permits.

But arguing that these workers fill a gap that needed to be filled, Mr Venables said that
the justification for transitional measures restricting workers - in 12 of the 15 old
member states -"appears indefensible".

He also indicated that there may be a link between the transitional measures and the
'Polish plumber' syndrome in France, which has become a metaphor for all the fears
about cheap eastern labour.

He suggests that because it is so difficult for a Polish worker to get employed in


France, the worker becomes self-employed, and charges cheaper Polish prices.

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