The EUROPEAN UNION
Before we start, a few vocabulary
words to review.
Tariff: a tax on goods going into our
out of a country.
passport that provides
a person when
The common currency used
in 12 of the European Union
Gross Domestic The amount of goods and
Product (gdp) services produced within a
country in a year.
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 France
continued for nearly 50 years.
the EU are
The goal of the
European Union is to
break down trade
barriers and eliminate
tariffs between member
People no longer
to travel between
The original twelve
countries are in green.
added in 1995 1995
NEW MEMBERS AS new members join
the EU on May 1
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
But, add them together as the EU and we are nearly
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 Untied 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? If we had to stop at the borders
when traveling between states and
pay taxes on goods between states..
As members of the EU, members can ship their
goods to any member country without paying
tariffs (taxes) or stopping at border crossings.
Prior to the EU, trade
between countries required
passing through border
Goods now move
between EU member
countries without any
Another goal of the EU is to make countries so
economically dependent on one another, there
won’t be another European war between
The combined gross domestic product of the EU
is roughly that of the USA. That makes the EU a
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
The intent is to keep EU companies from
relocating to China or Southeast Asia.
How will the European Union affect
YOU????? Jobs, goods you
etc.. We are