EUROPEAN UNION The European Union is set up with the aim of

ending the frequent and bloody wars between

“Promote peace, its values and the well-being neighbors, which culminated in the Second World
of its citizens; also offer freedom, security and justice War. As of 1950, the European Coal and Steel
without internal borders…” Community begins to unite European countries
economically and politically in order to secure lasting
These are some of the goals of the European peace. The six founding countries are Belgium,
Union on which also wanted to combat social France, Germany, Italy, Luxembourg and the
exclusion and discrimination, promote scientific and Netherlands. The 1950s are dominated by a cold war
technological progress, enhance economic, social and between east and west. Protests in Hungary against
territorial cohesion and solidarity among EU the Communist regime are put down by Soviet tanks
countries, respect its rich cultural and linguistic in 1956. In 1957, the Treaty of Rome creates the
diversity and establish an economic and monetary European Economic Community (EEC), or ‘Common
union whose currency is the euro. Market’.
From then, series of developments have been
European Union also has values on which it is provided while facing multiple challenges
an integral part of having European way of life in economically, financially and politically among the
which inclusion, tolerance, justice, solidarity and internal faction of the European Union. With 70 years
non-discrimination prevail. These values are linked in existence, EU strived for Economic growth from
to the human dignity, freedom, democracy, equality, which they have enlarged the trade and agricultural
rule of law and human rights. capabilities of each member from which they
associated and created the “Single Market”.
But what is European Union actually, and
how does it give its members sustainable The people involved which also recognized as
development based on balanced economic growth the Founding Fathers of EU are Konrad Adenauer,
and price stability by which highly competitive Joseph Bech, Johan Beyen, Winston Churchill, Alcide
market economy with full employment and social de Gasperi, Walter Hallstein, Sicco Mansholt, Jean
progress is provided? Monnet, Robert Schuman, Paul-Henri Spaak and
Altiero Spinelli. They all take part in the
In A Nutshell developments and the expansion of the EU.

The European Union is a unique economic Thus, it enabled the EU to become an

and political union between 28 EU countries that awardee of the Noble Prize in 2012.
together cover much of the continent.
Countries in EU
The EU has delivered more than half a
century of peace, stability and prosperity, helped With the creation of EU on 1958, the six
raise living standards and launched a single founding countries are Belgium, France, Germany,
European currency: the euro. More than 340 million Italy, Luxembourg and Netherlands. In 1973,
EU citizens in 19 countries now use it as their Denmark, Ireland and United Kingdom joined. Greece
currency and enjoy its benefits. joined EU in the year 1981 while Portugal and Spain
joined in 1986. Nine years after, Austria, Finland and
The EU's main economic engine is the single Sweden decided to join.
market. It enables most goods, services, money and
people to move freely. The EU aims to develop this With the 21st century embarked the success of
huge resource to other areas like energy, knowledge the EU as 10 countries namely, Cyprus, Czech
and capital markets to ensure that Europeans can Republic, Estonia, Hungary, Latvia, Lithuania, Malta,
draw the maximum benefit from it. Poland, Slovakia and Slovenia joined. Continuing to
enlarge the association, Bulgaria and Romania joined
The European Union is the largest trade block in the year 2007 and recently joined Croatia 6 years
in the world. It is the world's biggest exporter of after.
manufactured goods and services, and the biggest
import market for over 100 countries. While also the essence of this study is to find
out the countries, the Schengen Area is one of the
A Brief History greatest achievements of the EU. It is an area without
internal borders, an area within which citizens, many
non-EU nationals, business people and tourists can
freely circulate without being subjected to border used by Romania and Swedish krona SEK is used by
checks. Since 1985, it has gradually grown and Sweden. Furthermore, The United Kingdom (UK) has
encompasses today almost all EU countries and a few negotiated an opt-out from the euro and thus is not
associated non-EU countries. obliged to introduce it and currently uses pound
sterling (GBP) as its currency.
While having abolished their internal
borders, Schengen States have also tightened
To be able to join the euro area the EU
controls at their common external border on the
member states are required to fulfil the so-called
basis of Schengen rules to ensure the security of
'convergence criteria'. These are economic and legal
those living or travelling in the Schengen Area.
conditions agreed in the Maastricht Treaty in 1992
The countries in Schengen Area are Austria, and are also known as 'Maastricht criteria'.
Belgium, Czech Republic, Denmark Estonia, Finland,
France, Germany, Greece, Hungary, Iceland, Italy, To join the euro area, a country's currency
Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, must have had a stable exchange rate for 2 years.
Netherlands, Norway, Poland, Portugal, Slovakia, There are other strict conditions as regards to
Slovenia, Spain, Sweden, Switzerland. interest rates, budget deficits, level of government
debt, and inflation rates.
The Euro
The euro is the most tangible proof of
European integration – the common currency in 19
out of 28 EU countries and used by some 338.6
million people every day. The benefits of the common
currency are immediately obvious to anyone
travelling abroad or shopping online on websites
based in another EU country.

The purpose of the euro, or rather single

currency is that it offers many advantages, such as
eliminating fluctuating exchange rates and exchange
costs. Because it is easier for companies to conduct
cross-border trade and the economy is more stable,
the economy grows and consumers have more
choice. A common currency also encourages people
to travel and shop in other countries. At global level,
the euro gives the EU more clout, as it is the second
most important international currency after the US
dollar.

The euro (€) is the official currency of 19 out

of 28 EU member countries. These countries are
collectively known as the Euro area. These countries
are Austria, Belgium, Cyprus, Estonia, Finland,
France, Germany, Greece, Ireland, Italy, Latvia,
Lithuania, Luxembourg, Malta, the Netherlands,
Portugal, Slovakia, Slovenia, and Spain.

While the 9 countries has committed to adopt

the euro once it fulfills the necessary conditions, at
the moment, Bulgaria uses Bulgarian lev BGN as its
currency, Croatia uses Croatian Kuna HRK, Czech
Republic on the other hand uses Czech Koruna (CZK).
Denmark uses Danish krone DKK as its currency,
Hungary uses Hungarian Forint HUF and Poland uses
Polish Zloty PLN. Romanian Leu RON is the currency