External|outward| relations of the EU at the modern stage

The great size of the European Union in economic, trade and financial terms makes it a world player. The biggest trader and home to the world’s second currency, the EU also spends over 7 billion euro a year on aid to developing countries. Its trade and partnership agreements cover most countries and regions.

The foreign relations of the European Union are primarily a domain of the member-states, although the Union as a whole is beginning to make some influence through its Common Foreign and Security Policy (CFSP). External representation is handled by the High Representative for the Common Foreign and Security Policy and the European Commissioner for External Relations. The Commission is gaining greater representation in bodies such as the United Nations and G8. EU High Representative for Foreign Affairs and Security Policy coordinates between EU countries to shape and implement foreign policy. The High Representative is assisted by civilian and military staff, the European External Action Service.

Policy is agreed on an inter-governmental basis however the general effect of the Union is also felt through Enlargement; the attraction of membership is taken as a major factor contributing to reform and stabilisation of the former Communist countries in Eastern Europe. The Union and its member states also contribute €43 billion in humanitarian aid; making it the largest humanitarian aid provider in the world. These factors influencing other countries are generally referred to as "soft power", as opposed to military "hard power".

On the world stage the Union is gaining greater influence and ability to speak as a bloc. All 27 member states are represented in the World Trade Organization (WTO) through its Trade Commissioner, Karel De Gucht (2009-2012). The latest WTO negotiation round has currently stalled, partly due to European refusal to curtail the agricultural subsidies unless other developed countries would also stop subsidising their agricultural producers.

Europe has had a long history with the United States, being particularly close during the Cold War. The USA initially supported the development of the European Community and ensured the defence of the continent through NATO. However recently there has been friction between the United States and the modern European Union, for example over the Iraq war. Some individual member state governments have backed the USA over the war revealing weaknesses in forming a coherent foreign policy.

External relations are a clear example of the added value which action at the EU level can bring. As the world's major trading partner, the EU is a prime mover in the future development of world trade.