[54] It was used originally to guarantee a minimum price for farmers in the EU. In contrast, Sweden can effectively opt out by choosing when or whether to join the European Exchange Rate Mechanism, which is the preliminary step towards joining. It is worth noting, however, that a significant proportion of international visitors to EU countries are from other member states. The U.K. officially left the EC as of 11 p.m. Greenwich Mean Time, Jan. 31, 2020.. COVID-19 numbers and vaccine news will remain a key driver, however. Eurozone Unemployment Rate (Nov) The Majors It was a bearish end to the year for the European majors on Thursday, with the CAC40 and the EuroStoxx600 falling by 0.86% and by 0.30% respectively. Portugal followed in 2011, along with a second Greek bailout in 2012., Multiple rounds of interest rate cuts and economic stimulus failed to resolve the problem. The European Commission published proposals for the first comprehensive EU energy policy on 10 January 2007. More than half a trillion Euros are now available to shield European Union … [33] With a low Gini coefficient of 31, the European Union has a more egalitarian distribution of income than the world average. Accessed Sept. 11, 2020. International Monetary Fund. The NUTS Regulation lays down a minimum population size of 3 million and a maximum size of 7 million for the average NUTS-1 region, whereas a minimum of 800,000 and a maximum of 3 million for NUTS-2 regions.¹[78] This definition, however, is not respected by Eurostat. Accessed Sept. 10, 2020. [citation needed], The European Union's member states are the birthplace of many of the world's largest leading multinational companies, and home to its global headquarters. The following table shows the history of the unemployment rate for all European Union member states: The European Union is the largest exporter in the world[70] and as of 2008 the largest importer of goods and services. €23.4 bn surplus for EU27. In 2018, public debt in the European Union was 80% of GDP, with disparities between the lowest rate, Estonia with 8.4%, and the highest, Greece with 181.1%.[40]. Among the 20 regions below the 50% level, five were in Bulgaria, four each in Greece and Hungary, three in Poland and two each in France and Romania. [73], Euro area international trade in goods surplus European Union. [34][35], EU's investments in foreign countries total $9.1 trillion, while the foreign investments made in the European Union total $5.1 trillion in 2012, by far the highest foreign and domestic investments in the world. European Economic and Monetary Union (EMU) Definition. A directly elected European Parliament took office in 1979., In 1986, the Single European Act solidified the principles of foreign policy cooperation and extended the powers of the community over the members. Companies have a greater reliance on bank lending than in the United States, although a shift towards companies raising more funding through capital markets is planned through the CMU initiative, the EU plan put forward by the Commission in September 2015 to mobilise the free movement of capital within the EU. [61] Among the member states, the lowest unemployment rates were recorded in the Czech Republic (2.3%), Germany and Poland (both 3.4%), and the highest in Spain (14.9%) and Greece (19.0 in July 2018).[61]. European Union. When the EU negotiates trade related agreement outside the WTO framework, the subsequent agreement must be approved by each individual EU member state government. Other non-eurozone states also experienced a debt crisis and also went through successful bailout programmes, i.e. European Central Bank leaves rates, bond-buying program unchanged Jan. 21, 2021 at 8:02 a.m. "Withdrawal and Explusion From the EU and EMU: Some Reflections." [71][72] Internal trade between the member states is aided by the removal of barriers to trade such as tariffs and border controls. View all available outright and match odds, plus get news, tips, free bets and money-back offers. The calculated GDP per capita is very high because of the large natural gas reserves in this region, but Groningen is one of the poorest parts in the Netherlands. European Union vs. Eurozone. Similar problems can be produced by a large number of tourists visiting the area. The eurozone is a geographic area that consists of the European Union (EU) countries that have fully incorporated the euro as their national currency. An extreme example is Finland, which is divided for historical reasons into mainland Finland with 5.3 million inhabitants and Åland, an autonomous archipelago with a population of 27,000, or about the population of a small Finnish city. [48] The Commissioner for Financial Stability, Financial Services and Capital Markets Union, Valdis Dombrovskis, former Prime Minister of Latvia, is responsible for delivery of the initiative.[49][50][51][52]. France is the world's number one tourist destination for international visitors, followed by Spain, Italy, and Germany. All citizens of the European Union are entitled to travel to any member state without the need of a visa. In the eurozone, trade is helped by not having any currency differences to deal with amongst most members. E.g. European Union - Official website of the European Union. : the région of Île-de-France, with 11.6 million inhabitants, is treated as a NUTS-2 region, while the state Free Hanseatic City of Bremen, with only 664,000 inhabitants, is treated as a NUTS-1 region. Accessed Sept. 10, 2020. It became the European Economic Community in 1957 under the Treaty of Rome and, subsequently, became the European Community (EC)., The early focus of the EC was a common agricultural policy as well as the elimination of customs barriers. The twelve new member states of the European Union have enjoyed a higher average percentage growth rate than their elder members of the EU. Among the ten lowest regions in the ranking in 2017 most were in Bulgaria, with the lowest figure recorded in Severozapaden. Is the US a Market Economy or a Mixed Economy? [47] The plan was updated in 2017 and in 2019, since not a single legislation will deliver the CMU. It has the effect of raising GDP but not altering the number of people living in the area, inflating the GDP per capita figure. "Europe's Common Market Founded in Major Step Toward Economic Unity." Accessed Sept. 11, 2020. The European Union is a major tourist destination, attracting visitors from outside of the Union and citizens travelling inside it. [77] Another example of artificial inflation is Groningen. The following is a list of the largest EU based stock market listed companies in 2016. We would like to show you a description here but the site won’t allow us. The European Union represents all its members at the World Trade Organization (WTO), and acts on behalf of member states in any disputes. Several newer members of the EU have not yet met the criteria for adopting the euro common currency. European Central Bank. The EU and the European Central Bank have struggled with high sovereign debt and sluggish growth in Portugal, Ireland, Greece, and Spain since the global financial market collapse of 2008. The Euro vs. 3 hours European Monetary Union Consumer Confidence below forecasts (-15) in January: Actual (-15.5) FXStreet 3 hours Eurozone advance Jan consumer confidence -15.5 vs -15.0 prior Forexlive Prices fell for both energy (-8.3 percent vs -8.2 percent in October) and non-energy industrial goods (-0.3 percent vs -0.1 percent). In 2011, direct aid to farmers and market-related expenditure amount to just 30% of the budget, and rural development spending to 11%. Much of the difference comes from Russia and the Caspian Sea basin. EU Institutions $13.85 billion, EU member states $73.80 billion. Information on your rights to live, work, travel and study in another EU country, including access to healthcare and consumer rights In 2013 this represented approximately €45billion (less than 33% of the overall budget of €148billion) of the EU's total spending. People had to use up all their cash in the countries' old paper money and coinage before mid-year that year, when they would no longer be accepted in monetary transactions and the euro would be used exclusively. The Dollar As Leading Reserve Currency", "There Are Only Two Real Threats to the US Dollar's Status As The International Reserve Currency", https://www.cia.gov/library/publications/the-world-factbook/geos/ee.html, "GINI index (World Bank estimate) | Data", "Romania becomes third eastern European EU country to be bailed out", © European Union, Integrated Financial Reporting Package Overview, Financial year 2017, Special European Council, 17-21 July 2020, "Europäische Union: Anteile der Wirtschaftssektoren am Bruttoinlandsprodukt (BIP) von 2004 bis 2014", Conference Report: European Financial Market Integration, "The legal and regulatory aspects of the free movement of capital - towards the Capital Markets Union", "EU's capital markets union 2.0, explained", "EU's Dombrovskis ignites fresh row over City's market access post-Brexit", "Fortune Global 500 List 2017: See Who Made It", "Macroeconomic Legal Trends in the EU11 Countries", "GDP and employment flash estimates for the fourth quarter of 2019", "Gross domestic product at market prices (Current prices and per capita)", "Government deficit, excluding support for financial institutions", "General government gross debt – annual data", "EU-Korea FTA Will Be a Long Process: Greek Ambassador", "Top Trading Partners 2017 – Trade Statistics", "Extra-EU27 trade, by main partners, total product", http://appsso.eurostat.ec.europa.eu/nui/show.do?query=BOOKMARK_DS-063317_QID_-63BADB2E_UID_-3F171EB0&layout=TIME,C,X,0;GEO,L,Y,0;INDIC_ET,L,Z,0;SITC06,L,Z,1;PARTNER,L,Z,2;INDICATORS,C,Z,3;&zSelection=DS-063317INDIC_ET,MIO_BAL_VAL;DS-063317PARTNER,EXT_EU28;DS-063317INDICATORS,OBS_FLAG;DS-063317SITC06,TOTAL;&rankName1=PARTNER_1_2_-1_2&rankName2=SITC06_1_2_-1_2&rankName3=INDIC-ET_1_2_-1_2&rankName4=INDICATORS_1_2_-1_2&rankName5=TIME_1_0_0_0&rankName6=GEO_1_2_0_1&sortC=ASC_-1_FIRST&rStp=&cStp=&rDCh=&cDCh=&rDM=true&cDM=true&footnes=false&empty=false&wai=false&time_mode=NONE&time_most_recent=false&lang=EN&cfo=%23%23%23%2C%23%23%23.%23%23%23, "Regional GDP per capita ranged from 30% to 263% of the EU average in 2018", http://epp.eurostat.ec.europa.eu/extraction/retrieve/en/theme1/reg/reg_e3gdp?OutputDir=EJOutputDir_349&user=unknown&clientsessionid=19A1061DE7EB55F2E04BD008A91F53DF.extraction-worker-1&OutputFile=reg_e3gdp.htm&OutputMode=U&NumberOfCells=3868&Language=en&OutputMime=text%2Fhtml&, Link to non-Eurozone EU15 countries Growth Rates, European Commission – Economic and Financial Affairs, Eurostat – Statistics Explained – All articles on economy and finance, Economic and Financial Affairs Commissioner, European Coal and Steel Community (1951–2002), European Economic Community (1958–1993/2009), Mechanism for Cooperation and Verification, Cities with more than 100,000 inhabitants, Largest cities by population within city limits, Trade-Related Aspects of Intellectual Property Rights, Special administrative regions of the People's Republic of China, Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, Regional Comprehensive Economic Partnership, South Asian Association for Regional Cooperation, Customs Union of Belarus, Kazakhstan, and Russia, Cooperation Council for the Arab States of the Gulf, Economic and Monetary Community of Central Africa, https://en.wikipedia.org/w/index.php?title=Economy_of_the_European_Union&oldid=1001892207, Articles tagged for attention after Brexit, World Trade Organization member economies, Short description is different from Wikidata, Articles with unsourced statements from September 2016, Creative Commons Attribution-ShareAlike License, machinery, motor vehicles, pharmaceuticals and other chemicals, fuels, aircraft, plastics, iron and steel, wood pulp and paper products, alcoholic beverages, furniture, fuels and crude oil, machinery, vehicles, pharmaceuticals and other chemicals, precious gemstones, textiles, aircraft, plastics, metals, ships, Officially the Republic of China, participates as ", This page was last edited on 21 January 2021, at 21:33. [32] There are significant disparities in GDP per capita (PPP) between member states ranging from $106,372 in Luxembourg to $23,169 in Bulgaria. The EC initially expanded in 1973 when Denmark, Ireland, and the United Kingdom. The European Single Market was established by 12 countries in 1993 to ensure the so-called four freedoms: the movement of goods, services, people, and money., The EU's gross domestic product (GDP) totaled $15.6 trillion (nominal) in 2019, which was $5.8 trillion less than the United States' $21.4 trillion GDP, according to figures available from the World Bank., The EU began as the European Coal and Steel Community, which was founded in 1950 and had just six members: Belgium, France, Germany, Italy, Luxembourg, and the Netherlands. According to the Global Financial Centres Index, the two largest financial centres in Europe, London and Zurich, are outside the European Union. The euro is used by 19 of its 27 members, overall, it is the official currency in 25 countries, in the eurozone and in six other European countries, officially or de facto.. [30] The GDP per capita (PPP) was $43,188 in 2018,[31] compared to $62,869 in the United States, $44,246 Japan and $18,116 in China. In 1985, around 70% of the EU budget was spent on agriculture. The leading regions in the ranking of NUTS-2 regional GDP per inhabitant in 2018 were the Grand Duchy of Luxembourg (263%), Southern Ireland (225%), and Eastern and Midland Ireland (210%). As of 2015, all countries but Greece have recovered from their debt crisis. "Brexit Timeline: Events Leading to the UK’s Exit From the European Union." For instance, it includes an internal single market with free movement of goods, services, capital, and labor. The remaining states are committed to join the euro through their Treaties of Accession. "Five Things You Need to Know About the Maastricht Treaty." [43], The services sector is by far the most important sector in the European Union, making up 74.7% of GDP, compared to the manufacturing industry with 23.8% of GDP and agriculture with only 1.5% of GDP. CZK is the abbreviation for the Czech Republic's currency, the koruna. Accessed Sept. 10, 2020. The nation voted to leave the EU under what's now called Brexit. This is criticised as a form of protectionism, inhibiting trade, and damaging developing countries; one of the most vocal opponents was the UK, the second largest economy within the bloc until its withdrawal in January 2020, which repeatedly refused to give up the annual UK rebate unless the CAP should undergo significant reform; France, the biggest beneficiary of the CAP and the bloc's third largest (now its second-largest) economy, is its most vocal proponent. [38] The European Union's largest trading partners are the United States, China, the United Kingdom, Switzerland, Russia, Turkey, Japan, Norway, South Korea, India, and Canada. "Europe’s North-South Divide—A Stubborn Chasm." The euro is the second largest reserve currency and the second most traded currency in the world after the United States dollar. [27][28][29] The euro is used by 19 of its 27 members, overall, it is the official currency in 25 countries, in the eurozone and in six other European countries, officially or de facto. [44], Financial services are well developed within the Single Market of the Union. Commissioner for Financial Stability, Financial Services and Capital Markets Union, List of the largest trading partners of the European Union, European Union–Mercosur Free Trade Agreement, Nomenclature of Territorial Units for Statistics, List of countries by GDP (PPP) per capita, List of metropolitan areas in the European Union by GDP, List of largest European companies by revenue, "Population change - Demographic balance and crude rates at national level", "World Economic Outlook Database, October 2019", "World Economic Outlook Database, April 2020", "The World Factbook – Central Intelligence Agency", "People at risk of poverty or social exclusion", "Gini coefficient of equivalised disposable income – EU-SILC survey", "Inequalities in Human Development in the 21st Century", "Employment rate by sex, age group 20-64", "Unemployment by sex and age - monthly average", "Export and Import Partners of European Union", "Client and Supplier Countries of the EU27 in Merchandise Trade (value %) (2019, excluding intra-EU trade)", "Eurostat – Tables, Graphs and Maps Interface (TGM) table", "Balance of payment statistics – Statistics Explained", "International investment position statistics – Statistics Explained", "Euro area and EU27 government deficit both at 0.6% of GDP", http://www.oecd.org/dac/stats/ODA-2015-detailed-summary.pdf, "The EU as a borrower – European Commission", "Scope affirms the European Union's and Euratom's credit rating of AAA with Stable Outlook", https://www.imf.org/en/Publications/WEO/weo-database/2020/October/weo-report?a=1&c=998,&s=NGDPD,PPPGDP,PPPPC,&sy=2019&ey=2025&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1, "Report for Selected Country Groups and Subjects", "Compositional Analysis of Foreign Currency Reserves in the 1999–2007 Period. Northern countries such as Germany and the Netherlands increasingly resent the financial drain from the south. Repeated rumors that Greece would be forced to withdraw from the euro failed to materialize amid disagreement as to whether the move was legally possible as it was not covered in the Maastricht Treaty., As the situation moved from crisis to stagnation, the U.K. government announced it would hold a referendum to determine whether it would remain a part of the EU on June 23, 2016. Figures for these three regions, however, were artificially inflated by the commuters who do not reside in these regions ("Net commuter inflows in these regions push up production to a level that could not be achieved by the resident active population on its own. UK Parliament. You can learn more about the standards we follow in producing accurate, unbiased content in our. The result is that GDP per inhabitant appears to be overestimated in these regions and underestimated in regions with commuter outflows.". [73], The European Union Association Agreement does something similar for a much larger range of countries, partly as a so-called soft approach ('a carrot instead of a stick') to influence the politics in those countries. Living, working, travelling in the EU. DKK is the foreign exchange (FX) currency code for the Danish krone, the official currency of Denmark. The following links are used for the GDP growth and GDP totals (IMF): Overview of the economy of the European Union, EU member states by real GDP growth rates, EU member states by GDP (nominal) per capita in €. Reasons for this growth include government commitments to stable monetary policy, export-oriented trade policies, low flat-tax rates and the utilisation of relatively cheap labour. 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