The EUROPEAN UNION INFORMATION NOTES.

Before we start, a few vocabulary words to review.

Tariff: a tax on goods going into or out of a country. passport Small booklet that provides documentation of a person when traveling between countries. The common currency used in 12 of the European Union countries. Euro

Gross Domestic Product (gdp) The amount of goods and services produced within a country in a year. Currency exchange: When you change your money into the money of the country you are entering (dollars to pesos in Mexico.)

The first big steps to economic cooperation in Europe began in 1958 the European Economic Community was formed. Expansion of the European Union has continued for nearly 50 years. Germany Italy Netherlands BelgiumLuxembourg France

Remember, economically, countries, like people, associate with others like themselves. All the countries in the EU are considered developed.

The goal of the European Union is to break down trade barriers and eliminate tariffs between member countries.

People no longer needed passports to travel between EU member countries.

Ten new members join the EU on May 1 (swissinfo) NEW MEMBERS AS OF The original twelve countries are in green Three were added in new countries were invited in 2005.

European countries alone have a much smaller population than the USA. Look in the demographic section of your text. The most populous country in Europe is? The population of the USA is?

No single European economy can approach that of the USA. But, add them together as the EU and we are nearly the same.

In 1993 a common currency was proposed. The Maastricht Treaty opened the way for the EURO, a currency used in 12 countries of the European Union.

Using the Euro People no longer had to exchange German marks for Italian Lira, or French franks for Spanish pesos when traveling between countries.

Three countries chose not to adopt the Euro. They were the United Kingdom (the “pound”, seen below), Sweden and Denmark.

Prior to the EU, when countries did business outside their country, tariffs, currency exchange, and border regulations sapped profits. What would the economic equivalent be in the USA? As members of the EU, members can ship their goods to any member country without paying tariffs (taxes) or stopping at border crossings. If we had to stop at the borders when traveling between states and pay taxes on goods between states..

Prior to the EU, trade between countries required passing through border crossings. Goods now move between EU member countries without any obstacles.

Another goal of the EU is to make countries so economically dependent on one another, there won’t be another European war between member countries.

The combined gross domestic product of the EU is roughly that of the USA. That makes the EU a ……………………… competitor

Countries such as the UK, France, Germany, are much wealthier than countries like Portugal, Spain, Greece. One of the goals of the EU is to bring the lower tier countries up to the upper level.

The second goal of the EU is to make member countries more competitive in the global economy. They use a tax on economies to update infrastructure, industries, services and technologies in member countries, particularly the poorer members. The major competitors to the EU are the USA, Japan, and China.

Workers in the EU are paid high wages by world standards. They receive generous benefits, high salaries and long vacations. They also receive socialized healthcare. The EU is attempting to move lower income manufacturing jobs to the new Eastern European members in order to keep costs down. The intent is to keep EU companies from relocating to China or Southeast Asia.

How will the European Union affect YOU????? Jobs, goods you can buy, international cooperation, environmental regulations, etc.. We are not alone!