European Business and Economy

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Table of Contents
Introduction2
Free movement of people2
Monetary policy3
Impact analysis of the accession of new Member States in Central and Eastern Europe3 Global Environment/BRICS4
European / Dutch future of manufacturing4
Financial crisis5
Future of the Euro6
Trends7
Conclusion7

Introduction
The aim of this paper is to present our thoughts and analysis which developed over the past two weeks after a number of lectures concerning the European Business and Economy with focus on economic, cultural and historic aspects. Our group is really diverse we come from Austria, South Korea,Taiwan & Aruba. So this is a multi cultural assessment of Caroline Samwald, Yongbum Kwon, Li-shu Liao & Leanne Geerman. Free movement of people

After the success of legislation to permit the free movement of goods, the European Community countries decided that people, capital, and services should also to cross borders without obstacles. -Before the Maastricht Treaty on 7th February 1992, only free movement of workers, the right of business establishment and the freedom to provide services were recognized. -In 1985, Germany, France, Benelux decided to create a territory without internal borders for people. And the territory had expended to 13 Member States by 1997. -Directive 2004/38 came into force in 2006, providing citizens and their families with details of their rights concerning entry and residence. Free movement rights can be divided into a right of travel and a right of residence. Directive 2004/38 had a major impact on unemployed people, who retained the status of workers. The limitation on free movement also included in Directive 2004/38, and applies both to free movement under Union citizenship and to free movement as a worker. -The EC Treaty enshrined specific rights for the free movement of workers. In particular, free movement of workers proved to be of great social and economical value to the community. -Free movement brings many advantages for entrepreneurs in the 15 old Member States. For example, by hiring workers from Eastern and Central Europe, employers can reduce their personnel costs considerably. Also, migrant workers help to relieve specific shortages in the labor market. Monetary policy

-The Maastricht Treaty specifies that the main task of the Euro system is to deliver price stability. -Officially, the highest priority of Euro system is to stabilize inflation, but it might also consider secondary concerns, which are indirectly connected to the final aim to stabilize the inflation rates. -The Euro system uses the short-term interest rate to conduct monetary policy like most other central banks, because very short-term assets are close to cash. -Central banks act indirectly on the real economy, since they affect long-term interest rates through their influence on future short-term rates and inflation. -The monetary strategy of the Euro system relies on three elements, namely the definition of inflation and two ‘pillars’, ‘real economic pillar’ and ‘monetary pillar’, used to identify risks to price stability. -The effectiveness of monetary policy partly depends on the magnitude and speed with which changes in interest rates affect aggregate demand and then prices. Impact analysis of the accession of new Member States in Central and Eastern Europe

During the last years the European Union has grown tremendously in numbers of members. In 1951 it started with only 6 members and today we have 28 members, so the EU has served it purpose of European integration. Enlargement has brought measurably greater economic prosperity for all EU citizens and has made Europe stronger in the world economy. During the last years there have been talks about the entry of more countries and it can be observed that these are more Central and Eastern countries, one of these countries are Turkey.

The question has to be asked about how far the EU will go in the future, how far in the factors of geography,...
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