The European Union

The European Union (EU) is an economic and political union of 27 member states, located in Europe. It was established by the Treaty of Maastricht¹ on November 1^st in 1993, on the basis of the former European Economic Community. With almost 500 million citizens, the share of the EU in the nominal gross world product² is about 30%, which was $ 18.4 trillion in 2008.

The EU has developed a single market through a standard system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital. It maintains common policies on trade, agriculture, fisheries, and regional development. Sixteen member states have adopted a common currency, the euro. It has developed a limited role in foreign policy, having representation at the World Trade Organization, The Group of Eight (G8) forums, and at the United Nations. Twenty-one EU countries are members of the North Atlantic Treaty Organization (NATO). The EU has developed a role in justice and home affairs, including the abolition of passport controls between many member states which form part of the Schengen Area, which also includes some associated European non-EU countries.

The EU operates through a system which takes into account both common union and national country's interests. It means that in certain areas the EU depends upon agreement between the member states. However, some decisions can be made by a country's government without any special agreements between all national governments. Important institutions and offices of the EU include the European Commission, the European parliament, the Council of the European Union, the European Council, the European Court of Justice and the European Central Bank. EU citizens elect the Parliament every five years.