The European Union

“Original” 15 members of the EU 1. Austria 9. Italy 2. Belgium 10. Luxemburg 3. Denmark* 11. Netherlands 4. Finland12. Portugal 5. France13. Spain 6. Germany14. Sweden* 7. Greece15. UK* 8. Ireland

* Means that while the country is a member of the EU, it did not adopt the Euro as it’s official currency.

“New” members of the EU 1. Czech Republic7. Malta 2. Cyprus8. Poland 3. Estonia9. Slovakia 4. Hungary10. Slovenia 5. Latvia11. Bulgaria 6. Lithuania12. Romania

Applicant countries to the EU: Croatia Macedonia Turkey Map of The EU Map of The EU

Check out the EU by clicking on this link: europa.eu EU at a glanceeuropa.eu EU at a glance

The EU: 1. Is a free trade zone - EU countries can’t place tariffs or quotas on any goods or services coming from other EU countries - The EU has a single external trade policy

2. Allows for the free movement of people and capital A Polish plumber can work in France and a Greek student could study in the UK, much like a Kentuckian could work or go to school in Tennessee.

3. Harmonizes Regulations The EU works to standard government regulations on everything from food safety to the environment.

4. Has a common currency: The Euro a. The UK, Denmark, and Sweden, opted to keep their own currencies b. New EU members must, over time, adopt the Euro

c. A common currency requires a common monetary policy – this is provided by the European Central Bank, in Frankfort, GermanyEuropean Central Bank

Pros of monetary union: 1. Makes trade easier 2. Makes travel easier

Cons of monetary union: 1. Each country loses sovereignty over its monetary policy. An international organization now controls their monetary policy

2. There is only one monetary policy for the Euro area If Germany is in recession while Poland is experiencing inflation, there won’t be a monetary policy they both like

Because monetary policy can’t make each country happy at the same time it is important that the EU allows workers to move from one country to the next to help markets adjust.

Proposed North American currency: Amero Countries: US, Canada, Mexico

Official US response to a common North American currency: Sure, a common currency is great, we will call it the dollar and the US will completely control monetary policy with no input from Canada or Mexico, i.e. if they want a common currency, let them adopt the dollar.