European Union

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Political and economic grouping, comprising 25 countries (in 2004). The six original members – Belgium, France, (West) Germany, Italy, Luxembourg, and the Netherlands – were joined by the United Kingdom, Denmark, and the Republic of Ireland in 1973, Greece in 1981, Spain and Portugal in 1986, Austria, Finland, and Sweden in 1995, and Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic, and Slovenia in 2004. East Germany was incorporated on German reunification in 1990. The European Community (EC) preceded the EU, and comprised the European Coal and Steel Community (set up by the 1951 Treaty of Paris), the European Economic Community, and the European Atomic Energy Community (both set up by the 1957 Treaties of Rome). The EU superseded the EC in 1993, following intergovernmental arrangements for a common foreign and security policy and for increased cooperation on justice and home affairs policy issues set up by the Maastricht Treaty (1992). Other important agreements have been the Single European Act (1986), the Amsterdam Treaty (1997), and the Treaty of Nice (2000). The basic aims of these treaties have been the expansion of trade, the abolition of restrictive economic practices, the encouragement of free movement of capital and labour, and establishment of a closer union among European peoples.

The main consultative and decision-making institutions of the EU are the European Commission, the Council of the European Union (and the European Council), the European Parliament, the European Court of Justice and the Court of Auditors. Other important bodies include the Economic and Social Committee (including workers' and employers' representatives) and the Committee of the Regions. The European Investment Bank is the EU's financing institution, providing long-term loans for capital investment.

The most important policy areas of the EU include the common agricultural policy, economic and monetary union (and the creation of the single European currency or euro), the single European market, enlargement, security, and judicial and home affairs. The EU also agrees measures on environmental protection, regional development (through several structural funds), research, employment and social affairs, transport, and energy.

Budget revenue comes from levies on agricultural imports from non-member countries, customs duties, the proceeds of value-added tax receipts, and contributions from member states based on gross national product (the ‘own resources’ financing system). The United Kingdom gets an annual budget rebate (which has been in place since 1984).

Red symbolizes the brotherhood of man. Black represents the African people. Yellow stands for sunshine. Effective date: 9 October 1962. >>