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| Motto: United in diversity[1][2][3] |
| Anthem: Ode to Joy
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| Political centres | Brussels Luxembourg Strasbourg |
| Official languages |
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| Demonym | European[4] |
| Member States |
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| Leaders |
| - | European Council | Herman Van Rompuy |
| - | European Commission | José Manuel Barroso |
| - | European Parliament | Martin Schulz |
| - | Council of the EU | Helle Thorning-Schmidt(Denmark) |
| - | High Representative for Foreign Affairs | Catherine Ashton |
| Legislature | Legislature of the EU |
| - | Upper house | Council of the EU |
| - | Lower house | European Parliament |
| Establishment |
| - | Paris Treaty | 23 July 1952 |
| - | Rome Treaty | 1 January 1958 |
| - | Maastricht Treaty | 1 November 1993 |
| - | Lisbon Treaty | 1 December 2009 |
| Area |
| - | Total | 4,324,782 km2 (7th¹) 1,669,807 sq mi |
| - | Water (%) | 3.08 |
| Population |
| - | 2011 estimate | 502,486,499 [5] (3rd¹) |
| - | Density | 116.2/km2 300.9/sq mi |
| GDP (PPP) | 2011 estimate |
| - | Total | $15,788 trillion[6] (1st¹) |
| - | Per capita | $31,548[6] (14th¹) |
| GDP (nominal) | 2011 estimate |
| - | Total | $17,960 trillion[6] (1st¹) |
| - | Per capita | $35,887[7] (14th¹) |
| Gini (2010) | 30.4[8] (medium) |
| HDI (2011) | 0.856[9] (very high) (14th¹) |
| Currency |
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| Time zone | (UTC+0 to +2) |
| - | Summer (DST) | (UTC+1 to +3[a]) |
| Internet TLD | .eu[b] |
Website europa.eu |
| Calling code | See list |
| 1 | If considered as a single entity. |
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The EU has developed a
single market through a standardised system of laws which apply in all member states. Within the
Schengen Area (which includes EU and non-EU states) passport controls have been abolished.
[17] EU policies aim to ensure the
free movement of people, goods, services, and capital,
[18] enact legislation in justice and home affairs, and maintain common policies on trade,
[19]agriculture,
[20] fisheries and
regional development.
[21] A monetary union, the
eurozone, was established in 1999 and, as of January 2012, is composed of 17 member states. Through the
Common Foreign and Security Policy the EU has developed a limited role in
external relations and
defence. Permanent
diplomatic missions have been established around the world and the EU is represented at the
United Nations, the
WTO, the
G8 and the
G-20.
With a combined population of over 500 million inhabitants,
[22] or 7.3% of the world population,
[23] the EU generated a nominal
GDP of 16,242 billion US dollars in 2010, which represents an estimated 20% of global GDP when measured in terms of
purchasing power parity.
[24]
[edit]History
After
World War II, moves towards European integration were seen by many as an escape from the extreme forms of nationalism which had devastated the continent.
[25] One such attempt to unite Europeans was the
European Coal and Steel Community, which was declared to be "a first step in the federation of Europe", starting with the aim of eliminating the possibility of further wars between its member states by means of pooling the national heavy industries.
[26] The founding members of the Community were
Belgium,
France,
Italy,
Luxembourg, the
Netherlands, and
West Germany. The originators and supporters of the Community include
Jean Monnet,
Robert Schuman,
Paul-Henri Spaak, and
Alcide De Gasperi.
[27]
The EEC and Euratom were created separately from ECSC, although they shared the same courts and the Common Assembly. The executives of the new communities were called Commissions, as opposed to the "High Authority". The EEC was headed by
Walter Hallstein(
Hallstein Commission) and Euratom was headed by
Louis Armand (
Armand Commission) and then
Etienne Hirsch. Euratom would integrate sectors in nuclear energy while the EEC would develop a customs union between members.
[28][29][30]
Throughout the 1960s tensions began to show with France seeking to limit supranational power. However, in 1965 an agreement was reached and hence in 1967 the
Merger Treaty was signed in Brussels. It came into force on 1 July 1967 and created a single set of institutions for the three communities, which were collectively referred to as the
European Communities (EC), although commonly just as the
European Community.
[31][32] Jean Rey presided over the first merged Commission (
Rey Commission).
[33]
In 1973 the Communities enlarged to include Denmark (including
Greenland, which later left the Community in 1985), Ireland, and the United Kingdom.
[34] Norway had negotiated to join at the same time but Norwegian voters rejected membership in a referendum and so Norway remained outside. In 1979, the
first direct, democratic elections to the European Parliament were held.
[35]
Greece joined in 1981, Portugal and Spain in 1986.
[36] In 1985, the
Schengen Agreement led the way toward the creation of open borders without passport controls between most member states and some non-member states.
[37] In 1986, the
European flag began to be used by the Community
[38] and the
Single European Act was signed.
In 1990, after the fall of the
Iron Curtain, the former
East Germany became part of the Community as part of a newly united Germany.
[39] With enlargement towards European formerly communist countries as well as Cyprus and Malta on the agenda, the
Copenhagen criteria for candidate members to join the European Union were agreed.

The introduction of the
euro in 2002 replaced several national currencies.
The European Union was formally established when the
Maastricht Treaty came into force on 1 November 1993,
[13] and in 1995
Austria,
Finland and
Sweden joined the newly established EU. In 2002,
euro notes and coins replaced national currencies in 12 of the member states. Since then, the
eurozone has increased to encompass 17 countries. In 2004, the EU saw
its biggest enlargement to date when
Cyprus, the
Czech Republic,
Estonia,
Hungary,
Latvia,
Lithuania,
Malta,
Poland,
Slovakia and
Slovenia joined the Union.
[40]
On 1 January 2007, Romania and Bulgaria became the EU's members. In the same year Slovenia adopted the euro,
[40] followed in 2008 by Cyprus and Malta, by Slovakia in 2009 and by Estonia in 2011. In June 2009, the
2009 Parliament elections were held leading to a renewal of Barroso's Commission Presidency, and in July 2009 Iceland formally applied for EU membership.
[edit]Treaties
[edit]Geography
The EU's climate is influenced by its 65,993 km (41,006 mi) coastline (
Cyprus).
The EU's member states cover an area of 4,423,147 square kilometres (1,707,787 sq mi).
[c] The EU is larger in area than all but
six countries, and its highest peak is
Mont Blanc in the
Graian Alps, 4,810.45 metres (15,782 ft) above sea level.
[43] The lowest point in the EU is
Zuidplaspolder in the
Netherlands, at 7 m (23 ft) below sea level. The landscape, climate, and economy of the EU are influenced by its coastline, which is 65,993 kilometres (41,006 mi) long. The EU has the world's second-longest coastline, after Canada. The combined member states share
land borders with 19 non-member states for a total of 12,441 kilometres (7,730 mi), the fifth-longest border in the world.
[15][44][45]
The EU's population is highly urbanised, with some 75% of inhabitants (and growing, projected to be 90% in 7 states by 2020) living in urban areas. Cities are largely spread out across the EU, although with a large grouping in and around the
Benelux. An increasing percentage of this is due to low density urban sprawl which is extending into natural areas. In some cases this urban growth has been due to the influx of EU funds into a region.
[47]
[edit]Member states
The member states of the European Union (European Communities pre-1993), animated in order of accession. Only territories in and around Europe are shown.
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The European Union is composed of 27
sovereign Member States:
Austria,
Belgium,
Bulgaria,
Cyprus, the
Czech Republic,
Denmark,
Estonia,
Finland,
France,
Germany,
Greece,
Hungary,
Ireland,
Italy,
Latvia,
Lithuania,
Luxembourg,
Malta, the
Netherlands,
Poland,
Portugal,
Romania,
Slovakia,
Slovenia,
Spain,
Sweden, and the
United Kingdom.
[48] The Union's membership has grown from the original
six founding states—Belgium, France, (then-
West) Germany, Italy, Luxembourg and the Netherlands—to the present day 27 by successive enlargements as countries acceded to the
treaties and by doing so, pooled their sovereignty in exchange for representation in the institutions.
[49] To join the EU a country must meet the
Copenhagen criteria, defined at the 1993 Copenhagen European Council. These require a stable democracy that respects
human rights and the
rule of law; a functioning
market economy capable of competition within the EU; and the acceptance of the obligations of membership, including EU law. Evaluation of a country's fulfilment of the criteria is the responsibility of the European Council.
[50] No member state has ever left the Union, although
Greenland (an
autonomous province of Denmark) withdrew in 1985.
[51] The
Lisbon Treaty now provides a clause dealing with how a member leaves the EU.
[52]
Croatia is expected to become the 28th member state of the EU on 1 July 2013 after a
referendum on EU membership was approved by Croatian voters on 22 January 2012. The Croatian accession treaty still has to be ratified by all current EU member states.
[53]
[edit]Environment
The first environmental policy of the European Community was launched in 1972. Since then it has addressed issues such as
acid rain, the thinning of the
ozone layer,
air quality,
noise pollution,
waste and
water pollution. Today, the European Union is thought to have some of the most progressive environmental policies of any state in the world.
[59]
The
Water Framework Directive is an example of a water policy, aiming for rivers, lakes, ground and coastal waters to be of "good quality" by 2015.
[60] The
Birds Directive and the
Habitats Directive are pieces of European Union legislation for protection of biodiversity and natural habitats. These protections however only directly cover animals and plants; fungi and micro-organisms have no protection under European Union law.
[61] The directives are implemented through the
Natura 2000 programme and covers 30,000 sites throughout Europe.
[60] In 2007, the Polish government sought to build a motorway through the
Rospuda valley, but the Commission has been blocking construction as the valley is a
wildlife area covered by the programme.
[62]
In 2007, member states agreed that the EU is to use 20%
renewable energy in the future and that it has to reduce carbon dioxide emissions in 2020 by at least 20% compared to 1990 levels.
[63] This includes measures that in 2020, 10% of the overall fuel quantity used by cars and trucks in
EU 27 should be running on renewable energy such as
biofuels. This is considered to be one of the most ambitious moves of an important industrialised region to fight
global warming.
[64]
[edit]Politics
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The EU operates solely within those competencies conferred on it upon the
treaties and according to the principle of
subsidiarity (which dictates that action by the EU should only be taken where an objective cannot be sufficiently achieved by the member states alone).
Laws made by the EU institutions are passed in a variety of forms. Generally speaking they can be classified into two groups: those which come into force without the necessity for national implementation measures, and those which specifically require national implementation measures.
[65]
[edit]Governance
[edit]European Council
The European Council uses its leadership role to sort out disputes between member states and the institutions, and to resolve political crises and disagreements over controversial issues and policies. It acts externally as a "collective
head of state" and
ratifies important documents (for example, international agreements and treaties).
[67]
On 19 November 2009,
Herman Van Rompuy was chosen as the first permanent
President of the European Council. On 1 December 2009, the
Treaty of Lisbonentered into force and he assumed office. Ensuring the external representation of the EU,
[68] driving consensus and settling divergences among members are tasks for the President both during the convocations of the European Council and in the time periods between them. The European Council should not be mistaken for the
Council of Europe, an international organisation independent from the EU.
[edit]Commission
[edit]Parliament
The Parliament and the Council of the European Union pass legislation jointly in nearly all areas under the
ordinary legislative procedure. This also applies to the
EU budget. Finally, the Commission is accountable to Parliament, requiring its approval to take office, having to report back to it and subject to motions of censure from it. The
President of the European Parliament carries out the role of speaker in parliament and represents it externally. The EP President and
Vice Presidents are elected by MEPs every two and a half years.
[71]
[edit]Council
The 2011 EU budget (€141.9 bn. in total; commitment appropriations):
[75]
Cohesion and competitiveness for growth and employment (45%)
Citizenship, freedom, security and justice (1%)
The EU as a global player (6%)
Rural development (11%)
Direct aids and market related expenditures (31%)
Administration (6%)
The 27 member state EU had an agreed budget of €120.7 billion for the year 2007 and €864.3 billion for the period 2007–2013,
[76] representing 1.10% and 1.05% of the EU-27's
GNI forecast for the respective periods. By comparison, the United Kingdom's expenditure for 2004 was estimated to be €759 billion, and France was estimated to have spent €801 billion. In 1960, the budget of the then European Economic Community was 0.03% of GDP.
[77]
In the 2010 budget of €141.5 billion, the largest single expenditure item is "
cohesion & competitiveness" with around 45% of the total budget.
[78]Next comes "
agriculture" with approximately 31% of the total.
[78] "
Rural development, environment and fisheries" takes up around 11%.
[78]"
Administration" accounts for around 6%.
[78] The "
EU as a global partner" and "
citizenship, freedom, security and justice" bring up the rear with approximately 6% and 1% respectively.
[78]
The
European Court of Auditors aims to ensure that the
budget of the European Union has been properly accounted for. The court provides an audit report for each financial year to the Council and the European Parliament. The Parliament uses this to decide whether to approve the Commission's handling of the budget. The Court also gives opinions and proposals on financial legislation and anti-fraud actions.
[79]
The Court of Auditors is legally obliged to provide the Parliament and the Council with "a statement of assurance as to the reliability of the accounts and the legality and regularity of the underlying transactions".
[80] The Court has not given an unqualified approval of the Union's accounts since 1993.
[81] In their report on 2009 the auditors found that five areas of Union expenditure,
agriculture and the
cohesion fund, were materially affected by error.
[82] The European Commission estimated that the financial impact of irregularities was €1,863 million.
[83]
[edit]Competences
EU member states retain all powers not explicitly handed to the European Union. In some areas the EU enjoys exclusive competence. These are areas in which member states have renounced any capacity to enact legislation. In other areas the EU and its member states share the competence to legislate. While both can legislate, member states can only legislate to the extent to which the EU has not. In other policy areas the EU can only co-ordinate, support and supplement member state action but cannot enact legislation with the aim of harmonising national laws.
[84]
That a particular policy area falls into a certain category of competence is not necessarily indicative of what
legislative procedure is used for enacting legislation within that policy area. Different legislative procedures are used within the same category of competence, and even with the same policy area.
The distribution of competences in various policy areas between Member States and the Union is divided in the following three categories:
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- culture
- tourism
- education, youth, sport and vocational training
- civil protection (disaster prevention)
- administrative cooperation
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[edit]Legal system
The EU is based on a series of
treaties. These first established the European Community and the EU, and then made amendments to those founding treaties.
[85] These are power-giving treaties which set broad policy goals and establish institutions with the necessary legal powers to implement those goals. These legal powers include the ability to enact legislation
[e]which can directly affect all member states and their inhabitants.
[f] The EU has
legal personality, with the right to sign agreements and international treaties.
[86]
Under the principle of
supremacy, national courts are required to enforce the treaties that their member states have ratified, and thus the laws enacted under them, even if doing so requires them to ignore conflicting national law, and (within limits) even constitutional provisions.
[g]
[edit]Courts of Justice
The Court of Justice primarily deals with cases taken by member states, the institutions, and
cases referred to it by the courts of member states.
[88] The General Court mainly deals with cases taken by individuals and companies directly before the EU's courts,
[89] and the European Union Civil Service Tribunal adjudicates in disputes between the European Union and
its civil service.
[90] Decisions from the General Court can be appealed to the Court of Justice but only on a point of law.
[91]
[edit]Fundamental rights

The last amendment to the constitutional basis of the EU came into force in 2009 and was the
Lisbon Treaty.
The treaties declare that the EU itself is "founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities... in a society in which pluralism, non-discrimination, tolerance, justice, solidarity and equality between women and men prevail."
[92]
In 2009 the
Lisbon Treaty gave legal effect to the
Charter of Fundamental Rights of the European Union. The charter is a codified catalogue of
fundamental rights against which the EU's legal acts can be judged. It consolidates many rights which were previously recognised by the Court of Justice and derived from the "constitutional traditions common to the member states."
[93] The Court of Justice has long recognised fundamental rights and has, on occasion, invalidated EU legislation based on its failure to adhere to those fundamental rights.
[94] The
Charter of Fundamental Rights was drawn up in 2000.
Although originally not legally binding the Charter was frequently cited by the EU's courts as encapsulating rights which the courts had long recognised as the fundamental principles of EU law. Although signing the European Convention on Human Rights (ECHR) is a condition for EU membership,[h] previously, the EU itself could not accede to the Convention as it is neither a state[i] nor had the competence to accede.[j] The Lisbon Treaty and Protocol 14 to the ECHR have changed this: the former binds the EU to accede to the Convention while the latter formally permits it.
The EU also promoted human rights issues in the wider world. The EU opposes the death penalty and has proposed its worldwide abolition.[95] Abolition of the death penalty is a condition for EU membership.[96]
The main legal acts of the EU come in three forms:
regulations,
directives, and
decisions. Regulations become law in all member states the moment they come into force, without the requirement for any implementing measures,
[k] and automatically override conflicting domestic provisions.
[e] Directives require member states to achieve a certain result while leaving them discretion as to how to achieve the result. The details of how they are to be implemented are left to member states.
[l] When the time limit for implementing directives passes, they may, under certain conditions, have
direct effect in national law against member states.
Decisions offer an alternative to the two above modes of legislation. They are legal acts which only apply to specified individuals, companies or a particular member state. They are most often used in
Competition Law, or on rulings on State Aid, but are also frequently used for procedural or administrative matters within the institutions. Regulations, directives, and decisions are of equal legal value and apply without any formal hierarchy.
[97]
[edit]Justice and home affairs

The
Schengen Area comprises most member states ensuring open borders.
Since the creation of the EU in 1993, it has developed its competencies in the area of justice and home affairs, initially at an intergovernmental level and later by supranationalism. To this end, agencies have been established that co-ordinate associated actions:
Europol for co-operation of police forces,
[98] Eurojust for co-operation between prosecutors,
[99] and
Frontex for co-operation between border control authorities.
[100] The EU also operates the
Schengen Information System[17] which provides a common database for police and immigration authorities. This cooperation had to particularly be developed with the advent of open borders through the
Schengen Agreement and the associated cross border crime.
Furthermore, the Union has legislated in areas such as extradition,
[101] family law,
[102] asylum law,
[103] and criminal justice.
[104] Prohibitions against sexual and nationality discrimination have a long standing in the treaties.
[m] In more recent years, these have been supplemented by powers to legislate against discrimination based on race, religion, disability, age, and sexual orientation.
[n] By virtue of these powers, the EU has enacted legislation on
sexual discrimination in the work-place,
age discrimination, and
racial discrimination.
[o]
[edit]Foreign relations
Foreign policy cooperation between member states dates from the establishment of the Community in 1957, when member states negotiated as a bloc in international trade negotiations under the Common
Commercial Policy.
[105] Steps for a more wide ranging coordination in foreign relations began in 1970 with the establishment of
European Political Cooperation which created an informal consultation process between member states with the aim of forming common foreign policies. It was not, however, until 1987 when European Political Cooperation was introduced on a formal basis by the
Single European Act. EPC was renamed as the
Common Foreign and Security Policy (CFSP) by the
Maastricht Treaty.
[106]
The aims of the CFSP are to promote both the EU's own interests and those of the
international community as a whole, including the furtherance of international co-operation, respect for human rights, democracy, and the rule of law.
[107] The CFSP requires unanimity among the member states on the appropriate policy to follow on any particular issue. The unanimity and difficult issues treated under the CFSP makes disagreements, such as those which occurred over the
war in Iraq,
[108] not uncommon.
Besides the emerging international policy of the European Union, the international influence of the EU is also felt through
enlargement. The perceived benefits of becoming a member of the EU act as an incentive for both political and economic reform in states wishing to fulfil the EU's accession criteria, and are considered an important factor contributing to the reform of European formerly Communist countries.
[112] This influence on the internal affairs of other countries is generally referred to as "
soft power", as opposed to military "hard power".
[113]
[edit]Military
The European Union does not have one unified military. The predecessors of the European Union were not devised as a strong military alliance because
NATO was largely seen as appropriate and sufficient for defence purposes.
[114] 21 EU members are members of NATO
[115] while the remaining member states follow policies of
neutrality.
[116] The
Western European Union, a military alliance with a mutual defence clause, was disbanded in 2010 as its role had been transferred to the EU.
[117]
According to the
Stockholm International Peace Research Institute (SIPRI), France spent more than €44 billion ($61bn) on defence in 2010, placing it third in the world after the US and China, while the United Kingdom spent almost £39 billion ($57bn), the fourth largest.
[118] Together, France and the United Kingdom account for 45 per cent of Europe's defence budget, 50 per cent of its military capacity and 70 per cent of all spending in military research and development.
[119] In 2000, the United Kingdom, France, Spain, and Germany accounted for 97% of the total military research budget of the then 15 EU member states.
[120]
Following the
Kosovo War in 1999, the
European Council agreed that "the Union must have the capacity for autonomous action, backed by credible military forces, the means to decide to use them, and the readiness to do so, in order to respond to international crises without prejudice to actions by NATO". To that end, a number of efforts were made to increase the EU's military capability, notably the
Helsinki Headline Goal process. After much discussion, the most concrete result was the
EU Battlegroups initiative, each of which is planned to be able to deploy quickly about 1500 personnel.
[121]
[edit]Humanitarian aid

Collectively, the EU is the largest contributor of
foreign aid in the world.
Humanitarian aid is financed directly by the budget (70%) as part of the financial instruments for external action and also by the
European Development Fund (30%).
[127] The EU's external action financing is divided into 'geographic' instruments and 'thematic' instruments.
[127] The 'geographic' instruments provide aid through the
Development Cooperation Instrument (DCI, €16.9 billion, 2007–2013), which must spend 95% of its budget on
overseas development assistance (ODA), and from the
European Neighbourhood and Partnership Instrument (ENPI), which contains some relevant programmes.
[127] The European Development Fund (EDF, €22.7 bn, 2008–2013) is made up of voluntary contributions by member states, but there is pressure to merge the EDF into the budget-financed instruments to encourage increased contributions to match the 0.7% target and allow the
European Parliament greater oversight.
[127]
The EU's aid has previously been criticised by the
eurosceptic think-tank
Open Europe for being inefficient, mis-targeted and linked to economic objectives.
[128] Furthermore, some charities such as
ActionAid have claimed European governments have inflated the amount they have spent on aid by incorrectly including money spent on debt relief, foreign students, and refugees. Under the de-inflated figures, the EU as a whole did not reach its internal aid target in 2006
[129] and is expected not to reach the international target of 0.7% of
gross national income until 2015.
[130]
However, four countries have reached the 0.7% target: Sweden, Luxembourg, the Netherlands and Denmark.
[126] In 2005 EU aid was 0.34% of the GNP which was higher than that of either the United States or Japan.
[131] The previous
Commissioner for Aid,
Louis Michel, has called for aid to be delivered more rapidly, to greater effect, and on humanitarian principles.
[132]
[edit]Economy
The ten largest economies in the world counting the EU as a single entity, by
GDP (2010)
[133]
Of the top 500 largest corporations measured by revenue (
Fortune Global 500 in 2010), 161 have their headquarters in the EU.
[139]In May 2007 unemployment in the EU stood at 7%
[140] while investment was at 21.4% of GDP, inflation at 2.2% and public deficit at −0.9% of GDP.
[141]
There is a significant variance for GDP (PPP) per capita within individual EU states, these range from €11,000 to €70,000 (about US$14,000 to US$90,000).
[142] The difference between the richest and poorest regions (271 NUTS-2 regions of the
Nomenclature of Territorial Units for Statistics) ranged, in 2009, from 27% of the EU27 average in the region of Severozapaden in Bulgaria, to 332% of the average in
Inner London in the United Kingdom. On the high end, Inner London has €78,000
PPP per capita, Luxembourg €62,500, and
Bruxelles-Cap €52,500, while the poorest regions, are
Severozapaden with €6,400 PPP per capita,
Nord-Est with €6,900 PPP per capita,
Severen tsentralenwith €6,900 and
Yuzhen tsentralen with €7,200.
[142] Structural Funds and Cohesion Funds are supporting the development of underdeveloped regions of the EU. Such regions are primarily located in the states of
central and
southern Europe.
[143][144] Several funds provide emergency aid, support for candidate members to transform their country to conform to the EU's standard (
Phare,
ISPA, and
SAPARD), and support to the
former USSR Commonwealth of Independent States (
TACIS). TACIS has now become part of the worldwide
EuropeAidprogramme. The EU
Seventh Framework Programme (FP7) sponsors research conducted by consortia from all EU members to work towards a single
European Research Area.
[145]
[edit]Internal market
Free movement of capital is intended to permit movement of investments such as property purchases and buying of shares between countries.
[147] Until the drive towards
Economic and Monetary Union the development of the capital provisions had been slow. Post-Maastricht there has been a rapidly developing corpus of ECJ judgements regarding this initially neglected freedom. The free movement of capital is unique insofar as it is granted equally to non-member states.
The free movement of persons means that
EU citizens can move freely between member states to live, work, study or retire in another country. This required the lowering of administrative formalities and recognition of professional qualifications of other states.
[148]
The free movement of services and of establishment allows self-employed persons to move between member states to provide services on a temporary or permanent basis. While services account for 60–70% of GDP, legislation in the area is not as developed as in other areas. This lacuna has been addressed by the recently passed
Directive on services in the internal market which aims to liberalise the cross border provision of services.
[149] According to the Treaty the provision of services is a residual freedom that only applies if no other freedom is being exercised.
[edit]Competition
The
Competition Commissioner, currently
Joaquín Almunia, is one of the most powerful positions in the Commission, notable for the ability to affect the commercial interests of trans-national corporations.
[151] For example, in 2001 the Commission for the first time prevented a merger between two companies based in the United States (
GE and
Honeywell) which had already been approved by their national authority.
[152] Another high profile case
against Microsoft, resulted in the Commission fining
Microsoft over €777 million following nine years of legal action.
[153]
[edit]Monetary union
The creation of a
European single currency became an official objective of the European Economic Community in 1969. However, it was only with the advent of the
Maastricht Treaty in 1993 that member states were legally bound to start the
monetary union no later than 1 January 1999. On this date the euro was duly
launched by eleven of the then 15 member states of the EU. It remained an accounting currency until 1 January 2002, when
euro notes and coins were issued and national currencies began to phase out in the eurozone, which by then consisted of 12 member states. The eurozone (constituted by the EU member states which have adopted the euro) has since grown to 17 countries, the most recent being Estonia which joined on 1 January 2011.
All other EU member states, except Denmark and the United Kingdom, are legally bound to join the euro
[154] when the
convergence criteria are met, however only a few countries have set target dates for accession. Sweden has circumvented the requirement to join the euro by not meeting the membership criteria.
[q]
The euro is designed to help build a single market by, for example: easing travel of citizens and goods, eliminating
exchange rate problems, providing price transparency, creating a single
financial market, price stability and low
interest rates, and providing a currency used internationally and protected against shocks by the large amount of internal trade within the eurozone. It is also intended as a political symbol of integration and stimulus for more.
[155] Since its launch the euro has become the second
reserve currency in the world with a quarter of foreign exchanges reserves being in euro.
[156] The euro, and the monetary policies of those who have adopted it in agreement with the EU, are under the control of the
European Central Bank (ECB).
[157]
The ECB is the central bank for the eurozone, and thus controls
monetary policy in that area with an agenda to maintain
price stability. It is at the centre of the
European System of Central Banks, which comprehends all EU national central banks and is controlled by its General Council, consisting of the
President of the ECB, who is appointed by the European Council, the Vice-President of the ECB, and the governors of the national central banks of all 27 EU member states.
[158]
[edit]Financial supervision
| EU energy production |
| 46% of total EU primary energy use |
| Nuclear energy[r] | 29.3% |
| Coal & lignite | 21.9% |
| Gas | 19.4% |
| Renewable energy | 14.6% |
| Oil | 13.4% |
| Other | 1.4% |
| Net imports of energy |
| 54% of total primary EU energy use |
| Oil & petroleum products | 60.2% |
| Gas | 26.4% |
| Other | 13.4% |
In 2006, the 27 member states of the EU had a gross inland energy consumption of 1,825 million tonnes of oil equivalent (toe).
[160] Around 46% of the energy consumed was produced within the member states while 54% was imported.
[160] In these statistics, nuclear energy is treated as
primary energy produced in the EU, regardless of the source of the uranium, of which less than 3% is produced in the EU.
[161]
The EU has had legislative power in the area of energy policy for most of its existence; this has its roots in the original
European Coal and Steel Community. The introduction of a mandatory and comprehensive European energy policy was approved at the meeting of the European Council in October 2005, and the first draft policy was published in January 2007.
[162]
The EU has five key points in its energy policy: increase competition in the
internal market, encourage investment and boost interconnections between electricity grids; diversify energy resources with better systems to respond to a crisis; establish a new treaty framework for energy co-operation with
Russia while improving relations with energy-rich states in
Central Asia[163] and
North Africa; use existing energy supplies more efficiently while increasing use of renewable energy; and finally increase funding for new energy technologies.
[162]
[edit]Infrastructure
The developing European transport policies will increase the pressure on the environment in many regions by the increased transport network. In the pre-2004 EU members, the major problem in transport deals with congestion and pollution. After the recent enlargement, the new states that joined since 2004 added the problem of solving accessibility to the transport agenda.
[168] The
Polish road network in particular was in poor condition: at Poland's accession to the EU, 4,600 roads needed to be upgraded to EU standards, demanding approximately €17 billion.
[169][not in citation given]
The
Galileo positioning system is another EU infrastructure project. Galileo is a proposed
Satellite navigation system, to be built by the EU and launched by the
European Space Agency (ESA), and is to be operational by 2012. The Galileo project was launched partly to reduce the EU's dependency on the US-operated
Global Positioning System, but also to give more complete global coverage and allow for far greater accuracy, given the aged nature of the GPS system.
[170] It has been criticised by some due to costs, delays, and their perception of redundancy given the existence of the GPS system.
[171]
[edit]Agriculture

EU farms are supported by the
CAP, the largest
budgetary expenditure. (Vineyard in Spain)
The
Common Agricultural Policy (CAP) is one of the oldest policies of the European Community, and was one of its core aims.
[172] The policy has the objectives of increasing agricultural production, providing certainty in food supplies, ensuring a high quality of life for farmers, stabilising markets, and ensuring reasonable prices for consumers.
[s] It was, until recently, operated by a system of subsidies and market intervention. Until the 1990s, the policy accounted for over 60% of the then
European Community's annual budget, and still accounts for around 34%.
[173]
The policy's
price controls and market interventions led to considerable overproduction, resulting in so-called
butter mountains and
wine lakes. These were
intervention stores of produce bought up by the Community to maintain minimum price levels. In order to dispose of surplus stores, they were often sold on the world market at prices considerably below Community guaranteed prices, or farmers were offered subsidies (amounting to the difference between the Community and world prices) to export their produce outside the Community. This system has been criticised for under-cutting farmers outside of Europe, especially those in the
developing world.
[174]
The overproduction has also been criticised for encouraging environmentally unfriendly intensive farming methods.
[174] Supporters of CAP say that the economic support which it gives to farmers provides them with a reasonable standard of living, in what would otherwise be an economically unviable way of life. However, the EU's small farmers receive only 8% of CAP's available subsidies.
[174]
Since the beginning of the 1990s, the CAP has been subject to a series of reforms. Initially these reforms included the introduction of
set-aside in 1988, where a proportion of farm land was deliberately withdrawn from production, milk quotas (by the McSharry reforms in 1992) and, more recently, the 'de-coupling' (or disassociation) of the money farmers receive from the EU and the amount they produce (by the Fischler reforms in 2004). Agriculture expenditure will move away from subsidy payments linked to specific produce, toward direct payments based on farm size. This is intended to allow the market to dictate production levels, while maintaining agricultural income levels.
[172] One of these reforms entailed the abolition of the EU's sugar regime, which previously divided the sugar market between member states and certain African-Caribbean nations with a privileged relationship with the EU.
[142]
[edit]Education and science
Education and science are areas where the EU's role is limited to supporting national governments. In education, the policy was mainly developed in the 1980s in programmes supporting exchanges and mobility. The most visible of these has been the
Erasmus Programme, a university exchange programme which began in 1987. In its first 20 years it has supported international exchange opportunities for well over 1.5 million university and college students and has become a symbol of European student life.
[175]
There are now similar programmes for school pupils and teachers, for trainees in
vocational education and training, and for adult learners in the
Lifelong Learning Programme 2007–2013. These programmes are designed to encourage a wider knowledge of other countries and to spread good practices in the education and training fields across the EU.
[176] Through its support of the
Bologna process the EU is supporting comparable standards and compatible degrees across Europe.
[edit]Health care
Health care in the EU is provided through a wide range of different systems run at the national level. The systems are primarily
publicly fundedthrough taxation (universal health care). Private funding for health care may represent personal contributions towards meeting the non-taxpayer refunded portion of health care or may reflect totally private (non-subsidised) health care either paid out of pocket or met by some form of personal or employer funded insurance.
All EU and many other European countries offer their citizens a free
European Health Insurance Card which, on a reciprocal basis, provides insurance for emergency medical treatment insurance when visiting other participating European countries.
[182] A directive on cross-border healthcare aims at promoting cooperation on health care between member states and facilitating access to safe and high-quality cross-border healthcare for European patients.
[183][184][185]
[edit]Demographics
On 23 October 2010, the combined population of all 27 member states was forecast at 501,064,211 as of 1 January 2010.
[5]
Population of the 5 largest cities in the EU[186]
| Berlin | 3,410,000 | 3,815 | 9,880 | 3,761,000 | 4,971,331 | 4,325,000 |
| London | 7,512,400 | 4,761 | 12,330 | 9,332,000 | 11,917,000 | 12,500,000 |
| Madrid | 3,228,359 | 5,198 | 13,460 | 4,990,000 | 5,804,829 | 6,500,000 |
| Paris | 2,153,600 | 24,672 | 63,900 | 9,928,000 | 11,089,124 | 12,089,098 |
| Rome | 2,708,395 | 2,105 | 5,450 | 2,867,000 | 3,457,690 | 3,300,000 |
The EU is home to more
global citiesthan any other region in the world.
[188] It contains 16 cities with populations of over one million, the largest being London.
Besides many large cities, the EU also includes several densely populated regions that have no single core but have emerged from the connection of several cites and now encompass large
metropolitan areas. The largest are
Rhine-Ruhr having approximately 11.5 million inhabitants (
Cologne,
Dortmund,
Düsseldorf et al.),
Randstad approx. 7 million (
Amsterdam,
Rotterdam,
The Hague,
Utrecht et al.),
Frankfurt/Rhine-Main approx. 5.8 million (
Frankfurt,
Wiesbaden et al.), the
Flemish diamond approx. 5.5 million (urban area in between
Antwerp,
Brussels,
Leuven and
Ghent), the
Øresund Region approx. 3.7 million (
Copenhagen, Denmark and
Malmö, Sweden), and the
Upper Silesian Industrial Regionapprox. 3.5 million (
Katowice,
Sosnowiec et al.)
[189]
In 2010, 47.3 million people lived in the EU, who were born outside their resident country. This corresponds to 9.4% of the total EU population. Of these, 31.4 million (6.3%) were born outside the EU and 16.0 million (3.2%) were born in another EU member state. The largest absolute numbers of people born outside the EU were in Germany (6.4 million), France (5.1 million), the United Kingdom (4.7 million), Spain (4.1 million), Italy (3.2 million), and the Netherlands (1.4 million).
[190]
[edit]Languages
Among the many languages and dialects used in the EU, it has 23
official and
working languages:
Bulgarian,
Czech,
Danish,
Dutch,
English,
Estonian,
Finnish,
French,
German,
Greek,
Hungarian,
Italian,
Irish,
Latvian,
Lithuanian,
Maltese,
Polish,
Portuguese,
Romanian,
Slovak,
Slovene,
Spanish, and
Swedish.
[193][194] Important documents, such as legislation, are translated into every official language. The European Parliament provides translation into all languages for documents and its plenary sessions.
[195] Some institutions use only a handful of languages as internal working languages.
[196] Catalan,
Galician,
Basque,
Scottish Gaelic and
Welsh are not official languages of the EU but have semi-official status in that official translations of the treaties are made into them and citizens of the EU have the right to correspond with the institutions using them.
Language policy is the responsibility of member states, but EU institutions promote the learning of other languages.
[t][197] English is the most spoken language in the EU and is spoken by 51% of the EU population counting both native and non-native speakers.
[198] German is the most widely spoken mother tongue (about 88.7 million people as of 2006). 56% of EU citizens are able to engage in a conversation in a language other than their mother tongue.
[199] Most official languages of the EU belong to the
Indo-European language family, except Estonian, Finnish, and Hungarian, which belong to the
Uralic language family, and Maltese, which is an
Afroasiatic language. Most EU official languages are written in the
Latin alphabet except Bulgarian, written in
Cyrillic, and Greek, written in the
Greek alphabet.
[200]
Besides the 23 official languages, there are about 150
regional and
minority languages, spoken by up to 50 million people.
[200] Of these, only the Spanish regional languages (that is, Catalan, Galician, and the non-Indo-European Basque), Scottish Gaelic, and Welsh
[201] can be used by citizens in communication with the main European institutions.
[202] Although EU programmes can support regional and minority languages, the protection of
linguistic rights is a matter for the individual member states. The
European Charter for Regional or Minority Languages ratified by most EU states provides general guidelines that states can follow to protect their linguistic heritage.
[edit]Religion

The percentage of Europeans in each member state who believe in "a God".
[203]
The preamble to the
Treaty on European Union mentions the "cultural, religious and humanist inheritance of Europe".
[204] Discussion over the draft texts of the European Constitution and later the Treaty of Lisbon included proposals to mention Christianity or "God" or both, in the preamble of the text, but the idea faced opposition and was dropped.
[205]
Eurostat's
Eurobarometer opinion polls showed in 2005 that 52% of EU citizens believed in a god, 27% in "some sort of spirit or life force", and 18% had no form of belief.
[203] Many countries have experienced falling church attendance and membership in recent years.
[208] The countries where the fewest people reported a religious belief were Estonia (16%) and the Czech Republic (19%).
[203] The most religious countries are Malta (95%; predominantly Roman Catholic), and Cyprus and Romania both with about 90% of the citizens believing in God (both predominantly Orthodox). Across the EU, belief was higher among women, increased with age, those with religious upbringing, those who left school at 15 with a basic education, and those "positioning themselves on the right of the political scale (57%)."
[203]
[edit]Culture and sport
Sport is mainly the responsibility of an individual member states or other international organisations rather than that of the EU. However, there are some EU policies that have had an impact on sport, such as the free movement of workers which was at the core of the
Bosman ruling, which prohibited national football leagues from imposing quotas on foreign players with European citizenship.
[214] The Treaty of Lisbon requires any application of economic rules to take into account the specific nature of sport and its structures based on voluntary activity.
[215] This followed lobbying by governing organisations such as the
International Olympic Committee and
FIFA, due to objections over the applications of free market principles to sport which led to an increasing gap between rich and poor clubs.
[216] The EU does fund a program for Israeli, Jordanian, Irish and British football coaches, as part of the Football 4 Peace project.
[217]
[edit]See also