The European Union (EU) is a family of democratic European countries, committed to working together for peace and prosperity. It is not a State intended to replace existing States, nor is it just an organisation for international cooperation. The EU is, in fact, unique. Its member states have set up common institutions to which they delegate some of their sovereignty so that decisions on specific matters of joint interest can be made democratically at European level. Thus, the European Union or the EU is an intergovernmental and supranational union of 27 democratic countries known as member states.
The historical roots of the European Union lie in the Second World War. The idea was born because Europeans were determined to prevent such killing and destruction ever happening again. In the early years, the cooperation was between six countries and mainly about trade and the economy. Now the EU embraces 27 countries and nearly half a billion people, and it deals with a wide range of issues of direct importance for our everyday life.
Europe is a continent with many different traditions and languages, but also with shared values such as democracy, freedom and social justice. The EU defends these values. It fosters cooperation among the peoples of Europe, promoting unity while preserving diversity and ensuring that decisions are taken as close as possible to the citizens.
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, economic and social policy)
• a confederation (for example, on 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, a common trade policy, and a common fisheries policy.
The most important EU institutions are
• the Council of the European Union,
• the European Court of Justice, and
• the European Court of Auditors.
The European Central Bank and the European Investment Bank are EU financial bodies. There are also several advisory committees, such as the Committee of the Regions, the Economic and Social Committee, the Political and Security Committee and the European Ombudsman.
Some of the most important policies are briefly described below:
Single market - Many of the policies of the EU relate in one way or another to the development and maintenance of an effective single market. Significant efforts have been made to create harmonised standards – which are designed to bring economic benefits through creating larger, more efficient markets. The power of the single market reaches beyond the EU borders, because to sell within the EU, it is beneficial to conform to its standards.
The single market has both internal and external aspects. Internal policies, among others, include:
Free trade of goods and services among member states (an aim further extended to three of the four EFTA states by the European Economic Area, EEA).
A common EU competition law controlling anti-competitive activities of companies (through antitrust law and merger control) and member states.
The Schengen treaty allowed removal of internal border controls and harmonisation of external controls between its member states. This excludes the UK and Ireland, which have derogations, but includes the non-EU members Iceland and Norway. Switzerland also voted via referendum in 2005 to become part of the Schengen zone.
Freedom for citizens of its member states to live and work anywhere within the EU with their spouses and children, provided they can support themselves.
Free movement of capital between member states (and other EEA states).
A single currency, the euro (excluding the UK and Denmark, which have derogations).
Some of the external policies include a common external customs tariff, and a common position in international trade negotiations, funding for programmes in candidate countries and other Eastern European countries, as well as aid to many developing countries.