In effort to expand Europ
European Union is a political and economic union which was created in 1958 after the Second World War in order to form a single market which would enhance economic growth and political stability among the members. The 27 member countries have established rules and laws that have encouraged economic growth. The Union provides inter-regional trade barriers, it also comes up with a common external tariff against other countries, ensure a common agricultural and industrial policy and enhance free movement of labor and capital. European Union usually establishes common policy aimed at obtaining political, economic and monetary integration (Molle, 2001 p. 54). The union formed European Economic Community Treaty which abolished quotas and custom duties between the member countries. It also seeks to form a common external tariff for the member countries’ products. Since inception, the European Union has played a vital role in fostering trade and economic cooperation between the member countries (Loukas, 1997 p.112).
One of the European Union’s goals is to enlarge European Economic Community to the rest of Europe. However, various policies advocated by the European Union bring about major discrepancies. This is mainly because it is hard for these policies to be widely operational in all European countries which have different national interests. By the year 2007, the members of this union were 27 in number (Egan, 201 p. 12). European Union has faced a major recession since 1930s and the GDP was projected to decline by 4% in 2009. This has created worries among European countries. Major issues are raised concerning the foundation of European Union. This paper seeks to address the issues which make many people question the foundation of European Union in the light of expansion of Europe (Arestis and Sawyer, 2001 p.12).
Macroeconomic issues that hinder expansion of Europe
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(2011, 03). Impediment of European Union Economic Policy in Effort to Expand Europe. StudyMode.com. Retrieved 03, 2011, from http://www.studymode.com/essays/Impediment-Of-European-Union-Economic-Policy-617605.html
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