Download - European Union PPT
ECONOMIC INTEGRATION & EUROPEAN UNION
PRESENTED BY LAVINA
NACHLANI - 68
WHAT IS ECONOMIC INTEGRATION ?
Economic integration can be defined as a kind of arrangement where countries get in agreement to coordinate
and manage their fiscal, trade, and monetary policies in order to be mutually benefitted by them.
KINDS OF ECONOMIC INTEGRATION
FOUR KINDS (STAGES) OF ECONOMIC INTEGRATION
FTA (free trade area): – no internal tariffs among members, but each country
imposes its own external tariffs to the third country.– NAFTA (North America Free Trade Agreement– AFTA (ASEAN Free Trade Area)– EFTA (European Free Trade Area)
Customs union: – no internal tariffs and common external tariffs, uniform
commercial policy formed jointly– Mercosur (Southern Common Market), – CACM (Central American Common Market)
FOUR KINDS (STAGES) OF ECONOMIC INTEGRATION
Common market: – free movement of products and factors
(resources), which is customs union plus factor mobility
– EU (European Union – previously EEC) Economic union:
– common market plus common currency – coordination of fiscal and monetary policy– EMU (Economic and Monetary Union)
ECONOMIC INTEGRATION
BENEFITS
Progress in trade.
Ease of agreement.
Improved political cooperation.
DRAWBACKS
Creation Of Trading Blocs
Trade Diversion
National Sovereignty:
EUROPEAN UNION
What is the EU ?
A “family” of 27 European countries
Shared values: liberty, democracy, respect for
human rights and fundamental freedoms, and the
rule of law.
Largest economic body in the world.
World’s most successful model for advancing
peace and democracy.
A unique institution – Member States voluntarily
cede national sovereignty in many areas to carry
out common policies and governance.
World’s most open market for goods and
commodities from developing countries.
27
7
30
490million
Member States
Combined population of
EU Member States
Percent of world’spopulation
Percent of global GDP
55Percent of combined
worldwide OfficialDevelopment Assistance
EUROPEAN UNION
The EU HEADQUARTERS
Brussels, Belgium
Selected as the headquarters of the European Union because of its centralized location in Europe.
ORIGIN OF THE EU
First successful regional organization (1957) European Economic Community (EEC)
EEC became European Community (EC) (1986)
EC became European Union (EU) (1993)
STRUCTURE OF THE EUROPEAN UNION
EuropeanEuropeanParliamentParliament
EuropeanEuropeanCommissionCommission
CouncilCouncilof Ministersof Ministers
EuropeanEuropeanCouncilCouncil
CourtCourtof Justiceof Justice
The EU is run by five institutions, each playing a
specific role:
European Parliament – elected by the peoples of the Member States
Council of the Union – composed of the governments of the Member States
European Commission – driving force and executive body
Court of Justice – compliance with the law
Court of Auditors – sound and lawful management of the EU budget
OBJECTIVES OF THE EU
Its principal goal is to promote and expand cooperation among member states in economics, trade, social issue, foreign policy, security, defense, and judicial matter.
• EU has sought out to meet its objective in three ways:
1. By defining a common commercial policy.2. By reducing economic differences between its richer
and poorer members.3. By stabilizing the currencies of its members.
Elimination of custom duties, quantitative restrictions with regard to export & imports.
Establishment of a common custom tariff & commercial policy.
Abolition of all obstacles for movement of persons, services & capital.
Application of programmes in order to coordinate the economic policies.
ACTIVITIES OF EU
The €uro
In 1999, the euro area was established as a currency in
eleven of the then fifteen EU Member States.
Of the 27 EU Member States today, fifteen have adopted
the euro.
One of the striking benefits of a single European currency
are low interest rates due to a high degree of price
stability.
The euro is as stable and credible as the best-performing
currencies previously used in the euro area countries.
€
€
€
€
The European Central Bank (ECB) is the central bank
for Europe's single currency, the euro.
The ECB’s main task is to maintain the euro's
purchasing power and thus price stability in the euro
area.
The euro area comprises the 15 European Union
countries that have introduced the euro since 1999.
The ECB operates independently from Member State
governments.
The euro was introduced in 1999
EUROPEAN CENTRAL BANK
ADDRESSING GLOBAL CHALLENGES
Peace & Security– Works for global peace and security alongside the United
States and multilateral organizations – including NATO and
the United Nations.– Undertakes humanitarian and peacekeeping missions and has
provided military forces for crisis management around the
globe.
Counterterrorism & Homeland Security– Taken steps to improve intelligence sharing, enhance law
enforcement and judicial cooperation, curtail terrorist
financing.– Boosts trade and transport security to support the struggle
against terrorism.
Democracy & Human Rights– Works globally for free elections and open
democratic processes.– Fights racism and intolerance at home and abroad.– Campaigns globally against capital punishment.
Development Assistance & Humanitarian Relief– The EU and its Member States are the world’s
largest aid donor, providing 55% of total official
development assistance. – Provides billions of dollars in humanitarian aid to
more than 100 countries in response to crises and
natural disasters.
ADDRESSING GLOBAL CHALLENGES
Environmental Protection
– A leader in global efforts to protect the
environment, maintaining rigorous and
comprehensive systems at home.
– Plays a key role in developing and
implementing international agreements, such
as the Kyoto Protocol on Climate Change.
– Executing a “cap and trade” system to reduce
greenhouse gas emissions
– Takes the lead in the fight against global
warming with the adoption of binding energy
targets (cutting 20% of the EU’s greenhouse
gas emissions by 2020).
ADDRESSING GLOBAL CHALLENGES
AGRICULTURE
CAP – Common Agricultural Policy
GREEN RATE – support price is converted into national price at the Green Rate
Free movement of Agricultural products from one country to another.
EEC has achieved self – sufficiency in Agriculture.
FISHERIES - CFP – Common Fisheries Policy
Conservation of fish stocks
Aid to fishing industry to cope with changing circumstances
Monitor supply and demand for fish
Negotiate with non-EU members on fishing issues
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