UPSC » UPSC CSE Study Materials » General Awareness » European Union (EU)

European Union (EU)

Read on to learn all about the European Union (EU), the history and formation of the EU, unites countries in the European Union, the objective and purpose of the EU, and more.

Did you know? The EU is the world’s third-largest economy, following China and the US, with its GDP being $20 trillion in 2020. The EU has formed post World War II with six western European countries having the primary objective of promoting peace and harmony among the European countries. Currently, there are 27 united countries in the EU. However, there might be the probable chances for potential enlargement of the EU, which results in the addition of certain future countries in Europe. 

The following 5-10 years may have a significant impact on the EU, considering the Brexit event in 2020. With the announcement of proposed changes by the EU, major reformations can take place in federal Europe by 2025. Keep reading to know more about the European Union and its future profile. 

What is the European Union?

The European Union (EU) is a cohesive or unified union of sovereign countries that came together to follow common policies concerning economic, social, and political aspects for economic growth. This established the single market for the free flow of people, goods, and services, eliminating the border controls among the majority of EU members. 

All the EU members share the common trade and agricultural policies, which allow the goods to be sold to any other EU member without the levy of taxes and duties. Citizens in EU countries providing services such as tourism, medicine, banking, insurance, and law can handle business anywhere in the union and member countries. 

History and Formation of the EU

  • The EU dates back to 1950 as the European Coal and Steel Community (ECSC) formed with only six countries: Belgium, France, Italy, West Germany, Netherlands, and Luxembourg. This ‘Treaty of Paris’ took effect in 1952 

  • ECSC, European Atomic Energy Community (EAEC), and European Economic Community (EEC) were formed by the Treaty of Rome (1957). These three communities are merged under common institutions forming the European Community (EC) under the Merger treaty in 1965, Brussels 

  • Eventually, EC started to see its expansion with Denmark, Ireland, and the UK as its members in 1973, followed by Greece in 1981and Portugal and Spain as members in 1986 

  • ‘The Schengen Agreement’ was signed on June 14, 1985, to abolish the national borders to build the free movement across Europe known as the ‘Schengen Area’

  • Except for Ireland, the remaining 26 countries of the EU are part of the Schengen Agreement along with some of the non-EU countries, including Iceland, Norway, Liechtenstein, etc.  

  • The ‘Maastricht Treaty’ established the European Union with effect in 1993, and the common single currency ‘EURO’ debuted 

  • Today EURO is the shared official currency of 19 EU members known collectively as the eurozone 

  • Further, many countries came to join the EU in 2004 and 2007, which resulted in the present EU community

  • ‘Treaty of Lisbon increased the powers of the European Parliament in 2009 to negotiate and sign international treaties.

Member Countries of the EU

There are 27 unites countries in the European Union as of 2022, namely (by population):

  • Germany 

  • France

  • Italy

  • Spain

  • Poland

  • Romania 

  • Netherlands 

  • Belgium

  • Czech Republic 

  • Greece

  • Portugal

  • Sweden 

  • Hungary

  • Austria

  • Bulgaria

  • Denmark

  • Finland

  • Slovakia

  • Ireland

  • Croatia

  • Lithuania

  • Slovenia

  • Latvia

  • Estonia

  • Cyprus

  • Luxembourg

  • Malta

The Brexit 

The ‘Britain exit’, Brexit is the withdrawal process of the United Kingdom from the EU. The UK has been a member of the EU since 1973, and the withdrawal of the UK from the EU officially took place at 23:00 GMT on Jan. 31, 2020, due to reasons like policy decisions, sovereignty, demographic and cultural factors, immigration, etc.

Federal Europe by 2025 

Although the European Union is making progress in terms of economic growth, there are however unprecedented geopolitical challenges hindering the federalism of member countries. There are also other setbacks and curveball issues relating to political transition in main countries, along with migrant and refugee crises. Here is the dilemma relating to the EU’s federalism concerning significant doubt on forming a federal Europe by 2025 or a chance for the Balkanisation of member regions.

Conclusion 

As much as the EU is managing and maintaining the unity and cohesive relationship of 27 member countries and prospective member candidates, there are still major issues like debt crisis, unemployment, demographic challenges, and many more posing a threat to federalism and prosperity in the EU.

Considering the robust changes in the EU, there will be a significant impact on the position of the EU in the global marketplace.

faq

Frequently asked questions

Get answers to the most common queries related to the UPSC Examination Preparation.

Is the United Kingdom still part of the European Union?

Answer: No. The Brexit event is the withdrawal process of the UK from the European Union which officially took place...Read full

State the number of united countries in the European Union?

Answer: There are 27 member countries in the EU in total. The 27-EU members include Germany, France, Italy, Spain, P...Read full

What is the objective and purpose of EU formation?

Answer: To be more competitive in the global marketplace ...Read full

State the number of stars on the EU flag and their significance?

Answer: There are 12 stars on the EU flag that represent harmony, equality, and unity of member countries in the EU....Read full

What are the changes taking place in the EU and the future countries in Europe?

Answer: After the collapse of the Soviet Union, the EU expanded its roots to the eastern European nations, which are...Read full