EUROPEAN UNION

EU
 • CONTENTS

• 1. INTRODUCTION
• 1.1Member state at the European Union
• 1.2 Expansion of European union
• 2 EVOLUTIONS AND DEVELOPMENT OF EUROPEAN UNION
• 2.1 Major treaties
• 2.2 European steel and coal community
• 2.3 European economic community
• 2.4 Atomic energy community
• 2.5 European free trade association
• 2.6 European Union
• 2.7 Euro Zone
• 2.8 Future united Europe
• 3. ORGANIGATION OF EUROPEAN UNION
• 3.1 European parliament
• 3.2 European council
• 3.3 European commission
• 3.4 Court of Justice
• 3.5 Central Bank
• 3.6 Court of Auditors
• 3.7 Different Agencies
• 4 Trade: Export and Import
• 4.1 Merchandise trade
• 4.2 Trade of goods and services
• 5 European Union Crises
• 5.1 Reformation process
• 6 European Union:FOREIGN AFFAIRS
• 7 Conclusions
 • GROUP MEMBERS
• 1 Ashvini kumar

• 2 Jitendra saini

• 3 Sweta borthakur

• 4 Suraj ram

• 5 Vijay thalor

• 6 Vikash Gaurav

• 7 Vipin Chandra lal

 INTRODUCTION
• The European Union (EU) is a family of democratic European countries,
committed to working together for peace and prosperity
• It is not a State intended to replace existing states, but it does represent a
greater compromise of sovereignty than any other international
organization.

• The EU is unique; its Member States have set up common institutions to

which they delegate some of their sovereignty so that decisions on specific
matters of joint interest can be made democratically at European level.
• This pooling of sovereignty is also called "European integration
• Economic Integration:Economic integration is the unification of
economic policies between different states through the partial or full
abolition of tariff and non-tariff restrictions on trade taking place among
them prior to their integration
 Member Stats
Name Capital Accession Population[59] Area (km2)

Austria Vienna 1 Jan 1995 8,451,900 83,855

Belgium Brussels Founder 11,161,600 30,528

Bulgaria Sofia 1 Jan 2007 7,284,600 110,994

Croatia Zagreb 1 Jul 2013 4,262,100 56,594

Cyprus Nicosia 1 May 2004 865,900 9,251

Czech Republic Prague 1 May 2004 10,516,100 78,866

Denmark Copenhagen 1 Jan 1973 5,602,600 43,075

Estonia Tallinn 1 May 2004 1,324,800 45,227

Finland Helsinki 1 Jan 1995 5,426,700 338,424

France Paris Founder 65,633,200 674,843

Germany Berlin Founder[d] 80,523,700 357,021

Greece Athens 1 Jan 1981 11,062,500 131,990

Hungary Budapest 1 May 2004 9,908,800 93,030

Ireland Dublin 1 Jan 1973 4,591,100 70,273

Italy Rome Founder 59,685,200 301,338

Latvia Riga 1 May 2004 2,023,800 64,589

Lithuania Vilnius 1 May 2004 2,971,900 65,200

Luxembourg Luxembourg Founder 537,000 2,586.4

Malta Valletta 1 May 2004 421,400 316

Netherlands Amsterdam Founder 16,779,600 41,543

Poland Warsaw 1 May 2004 38,533,300 312,685

Portugal Lisbon 1 Jan 1986 10,487,300 92,390

Romania Bucharest 1 Jan 2007 20,057,500 238,391

Slovakia Bratislava 1 May 2004 5,410,800 49,035

Slovenia Ljubljana 1 May 2004 2,058,800 20,273

Spain Madrid 1 Jan 1986 46,704,300 504,030

Sweden Stockholm 1 Jan 1995 9,555,900 449,964

United Kingdom London 1 Jan 1973 63,730,100 243,610

 Expansion of European Union
Founding member states in 1951 1st Enlargement in 1973

Belgium, France, Germany, Italy, New member states : Denmark, Ireland

Luxembourg, Netherlands and the United Kingdom.
 2nd Enlargement in 3rd Enlargement in
1981..... 1986

New member state: Greece New member states: Spain and

Portugal.
 4th Enlargement in 5th Enlargement in 2004.....
1995.....

New member states: Austria, New member states: Czech Republic,

Finland and Sweden Cyprus, Estonia, Latvia, Lithuania,
Hungary, Malta, Poland, Slovenia and
Slovakia
 6th Enlargement in 2007.....

New member states: Bulgaria and Romania

EVOLUTION AND DEVELOPMENT OF EUROPEAN
UNOIN
 EVOLUTION OF EURPEAN UNION
 The idea of creating a unified Europe was not a new one. In the 9th
Century, the Frankish emperor Charlemagne dominated much of Europe.
 At the beginning of the 19th century, Napoleon Bonaparte attempted to
control most of Europe. In the 1930’s, Adolph Hitler intended to conquer
all of Europe. The key words here are dominated, control, and conquer.
 At the end of World War II, it finally became apparent that violence and
hatred could not unify Europe.
 Already in 1921, the governments of the Luxemburg and Belgium had the
idea that if they could work together economically, and make trade
agreements, they would be more able to compete with larger countries.
 Finally, in 1948, The Benelux Customs Union was formed, which enabled
the free movement of goods, workers, services, and capital between the
countries.
 In 1958, the Benelux Treaty was signed, formally establishing the Benelux
countries as a free trade unit.
 2.1 MAJOR TREATIES :
There are some treaties than an Important roll in Formation of European
Union
i. The Treaty of Brussels
ii. The Treaty of Paris
iii. The London and Paris Conferences
iv. The Treaty of Rome
v. The Merger Treaty (or Brussels Treaty)
vi. The Schengen Agreement
vii. The Single European Act (SEA)
viii. The Maastricht Treaty
ix. The Amsterdam Treaty
x. The Treaty of Nice
 The Treaty of Brussels
i. The Treaty of Brussels was signed on 17 March 1948 between Belgium,
France, Luxembourg, the Netherlands and the United Kingdom, as an
expansion to the preceding year's defence pledge, the Dunkirk Treaty
signed between Britain and France.
ii. The Treaty of Brussels contained a mutual defence clause, it provided a
basis upon which the 1954 Paris Conference established the Western
European Union (WEU).
iii. It was terminated on 31 March 2010.
 The Treaty of Paris
i. The Treaty of Paris was signed on 18 April 1951 between France, West
Germany, Italy and the three Benelux countries (Belgium, Luxembourg,
and the Netherlands), establishing the European Coal and Steel
Community (ECSC), which subsequently became part of the European
Union.
ii. The treaty came into force on 23 July 1952 and expired on 23 July 2002,
exactly fifty years after it came into effect.
iii. The treaty was seen as producing diplomatic and economic stability in
western Europe after the Second World War. Some of the main enemies
during the war were now sharing production of coal and steel, the key-
resources which previously had been central to the war effort
iv. The Europe Declaration was signed by all the leaders present. It
declared that the Treaty had given birth to Europe. It emphasised that
the supranational principle was the foundation of the new democratic
organisation of Europe.
v. Formally the Treaty establishing the European Coal and Steel
Community
 The London and Paris Conferences
i. The London and Paris Conferences were two related conferences in
London and Paris in September–October 1954, that decided about full
sovereignty of West Germany, ending of its occupation, and its
admittance to NATO.
ii. Furthermore, both West Germany and Italy joined the Brussels Treaty.
The talks concluded with signing Paris Agreements (Paris Pacts, or Paris
Accords) on 23 October 1954.They went into force on 5 May 1955.
iii. The participating powers included France, the United Kingdom, Belgium.
Netherlands, Luxembourg, West Germany, Italy, Canada, the United
States.
 The Treaty of Rome
i. The Treaty of Rome, officially the Treaty establishing the European
Economic Community (TEEC), is an international agreement that led to
the founding of the European Economic Community (EEC) on 1 January
1958. It was signed on 25 March 1957 by Belgium, France, Italy,
Luxembourg, the Netherlands and West Germany.
ii. The word Economic was deleted from the treaty's name by the
Maastricht Treaty in 1993, and the treaty was repackaged as the Treaty
on the functioning of the European Union on the entry into force of the
Treaty of Lisbon in 2009.
iii. The TEEC proposed the progressive reduction of customs duties and the
establishment of a customs union. It proposed to create a common
market of goods, workers, services and capital within the EEC's member
states
iv. It also proposed the creation of common transport and agriculture
policies and a European social fund. It also established the European
Commission.
 The Merger Treaty
i. The Merger Treaty (or Brussels Treaty) was a European treaty which
combined the executive bodies of the European Coal and Steel
Community (ECSC), European Atomic Energy Community and the
European Economic Community (EEC) into a single institutional
structure.
ii. The treaty was signed in Brussels on 8 April 1965 and came into force on
1 July 1967. It set out that the Commission of the EEC and the Council of
the EEC should replace the Commission and Council of Euratom and the
High Authority and Council of the ECSC.
iii. Although each Community remained legally independent, they shared
common institutions (prior to this treaty, they already shared a
Parliamentary Assembly and Court of Justice) and were together known
as the European Communities.
iv. This treaty is regarded by some as the real beginning of the modern
European Union.
 The Schengen Agreement
i. The Schengen Agreement led to the creation of Europe's borderless
Schengen Area in 1995.
ii. The treaty was signed on 14 June 1985 between five of the then ten
member states of the European Economic Community near the town of
Schengen in Luxembourg. It proposed the gradual abolition of border checks
at the signatories' common borders.
iii. Measures proposed included reduced speed vehicle checks which allowed
vehicles to cross borders without stopping, allowing of residents in border
areas freedom to cross borders away from fixed checkpoints and the
harmonisation of visa policies.
iv. In 1990 the Agreement was supplemented by the Schengen Convention
which proposed the abolition of internal border controls and a common visa
policy.
v. It currently consists of 26 European countries covering a population of over
400 million people and an area of 4,312,099 square kilometres
 The Single European Act
i. The Single European Act (SEA) was the first major revision of the 1957
Treaty of Rome.
ii. The Act set the European Community an objective of establishing a
Single market by 31 December 1992, and codified European
Political Cooperation, the forerunner of the European Union's Common
Foreign and Security Policy. It was signed at Luxembourg on 17 February
1986 and at The Hague on 28 February 1986. It came into effect on 1 July
1987, under the Delores Commission.
iii. A core element of the SEA was to create a Single Market within the
European Community by 1992, a date by which, it was hoped, the
legislative reforms seen necessary would have been completed.
iv. The SEA intended to remove barriers and to increase harmonisation and
competitiveness among its countries.
 The Maastricht Treaty
i. The Maastricht Treaty was signed on 7 February 1992 by the members
of the European Community in Maastricht, Netherlands. On 9–10
December 1991, the same city hosted the European Council which
drafted the treaty.
ii. Upon its entry into force on 1 November 1993 during the Delores
Commission, it created the European Union and led to the creation of
the single European currency, the euro.
iii. The treaty led to the creation of the euro.
iv. One of the obligations of the treaty for the members was to keep
"sound fiscal policies, with debt limited to 60% of GDP and annual
deficits no greater than 3% of GDP.
v. The treaty also created what was commonly referred to as the pillar
structure of the European Union.
vi. The treaty established the three pillars of the European Union—the
European Community (EC) pillar, the Common Foreign and Security
Policy (CFSP) pillar, and the Justice and Home Affairs (JHA) pillar.
vii. The first pillar was where the EU's supra-national institutions—the
Commission, the European Parliament and the European Court of
Justice—had the most power and influence.
viii. The other two pillars were essentially more intergovernmental in nature
with decisions being made by committees composed of member states'
politicians and officials
 The Amsterdam Treaty
i. Treaty of Amsterdam amending the Treaty of the European Union, the
Treaties establishing the European Communities and certain related acts,
was signed on 2 October 1997, and entered into force on 1 May 1999.
ii. The Treaty of Amsterdam meant a greater emphasis on citizenship and
the rights of individuals, an attempt to achieve more democracy in the
shape of increased powers for the European Parliament, a new title on
employment, a Community area of freedom, security and justice, the
beginnings of a common foreign and security policy (CFSP) and the
reform of the institutions in the run-up to enlargement.
 The Treaty of Nice
i. The Treaty of Nice was signed by European leaders on 26 February 2001
and came into force on 1 February 2003.

ii. It amended the Maastricht Treaty and the Treaty of Rome.

iii. The Treaty of Nice reformed the institutional structure of the European
Union to withstand eastward expansion, a task which was originally
intended to have been done by the Amsterdam Treaty, but failed to be
addressed at the time.
iv. Proponents of the Treaty claimed it was a utilitarian adjustment to
cumbersome EU governing mechanisms and a required streamlining of
the decision-making process, necessary to facilitate enlargement of the
EU into Central and Eastern Europe.
v. The Treaty of Lisbon is an international agreement which amends the
two treaties which form the constitutional basis of the European Union
(EU).
vi. The Lisbon Treaty was signed by the EU member states on 13 December
2007, and entered into force on 1 December 2009. It amends the
Maastricht Treaty and the Treaty of Rome.
vii. Prominent changes included the move from unanimity to qualified
majority voting in several policy areas in the Council of Ministers, a
change in calculating such a majority to a new double majority, a more
powerful European Parliament forming a bicameral legislature alongside
the Council of ministers under the ordinary legislative procedure, a
consolidated legal personality for the EU and the creation of a long-term
President of the European Council and a High Representative of the
Union for Foreign Affairs and Security Policy.
viii. The Treaty also made the Union's bill of rights, the Charter of
Fundamental Rights, legally binding
 European Coal and Steel Community
• The European Coal and Steel Community (ECSC) was an international
organisation serving to unify European countries after the Second World War.
It was formally established by the Treaty of Paris (1951)

• Paris, signed in 1951, created the European Coal and Steel Community
(ECSC). It took effect in 1952, and eliminated tariffs and quotas on trade in
iron ore, coal, coke, and steel within the six-nation economic union. In
order to supervise the operations of the ECSC, the Treaty of Paris provided
for an executive council, a council of ministers, a common assembly, and a
court of justice.
 European Economic Community
i. The founders of the ECSC must have succeeded in gaining the trust and
confidence of its citizens, because in 1957 and 1958 two more treaties
were signed which greatly increased the areas of cooperation between
the six countries.
ii. These treaties were called the Rome Treaties, and created the European
Economic Community (Common Market) and the Euratom. Euratom was
created to promote the peaceful use of atomic energy, and the Common
Market gradually expanded free trade to include all other areas of the
member countries’ economies.
 European Free Trade Association
• Right after the Rome Treaties established the formation of the Common
Market, the United Kingdom, Norway, Sweden, Denmark, Switzerland,
Austria, and Portugal created the European Free Trade Association.
i. This organization relaxed tariffs on industrial products, but not agricultural
products, and was much less powerful than the Common Market.
ii. In 1973, three more countries from the EFTA joined the European
Community.
iii. This enlarged European Community was very successful in promoting
economic cooperation among its members, thereby increasing their
prosperity; however, much more remained to be accomplished before the
EC would have the political strength and influence on world affairs that the
European Union has today
 EURO: The Single Currency of the
Eurozone
EURO represents the consolidation and culmination of European Economic
Integration

It’s introduction on January 1, 1999, marked the final phase of Economic and
Monetary Union (EMU), a three-stage process that was launched in 1990 as
EU member states prepared for the 1992 single market
The Eurozone

• It is officially called the euro area

and is an economic and monetary
union (EMU) of 17 European
Union (EU) member states that
have adopted the euro (€) as their
common currency and sole legal
tender.
• The eurozone currently
consists of :
• Austria, Belgium,
Cyprus, Estonia, Finland,
• France, Germany, Greece, Irela
nd, Italy,
• Luxembourg, Malta, Netherla
nds, Portugal, Slovakia, Sloveni
a, and Spain
How the euro was created…
(a) The European monetary system
In 1971, the United States decided to abolish the
fixed link between the dollar
and the official price of gold, which had ensured
global monetary stability after
the Second World War. This put an end to the system
of fixed exchange rates.
The governors of the EEC countries’ central banks
decided to limit exchange rate
fluctuations between their currencies to no more
than 2.25 %, thus creating the
‘European monetary system’ (EMS), which came into
operation in March 1979.
b) From EMS to EMU
At the European Council in Madrid in June 1989,
EU leaders adopted a three-stage
plan for economic and monetary union (EMU).
This plan became part of the Maastricht Treaty on
European Union adopted by the European
Council in December, 1991
The Euro from 1999 to the Present

• 1999-2002: The Euro and the

previous national currencies were
concurrently used in participating
states
• 2002: The participating countries
had their previous national
currencies withdrawn
permanently as legal tender
• EU member states not yet using
the Euro as currency: Denmark,
Greece, Sweden, United Kingdom
ORGNAIGATION OF EUROPEAN UNION
 The European Parliament
i. This is the only body of the EU that is directly elected by the citizens of the
member countries.

EU PARLIAMENT, STRASBOURG
In 2003 there were 626 members of the EU Parliament; the 2004 enlargement
and accession of Bulgaria and Romania in 2007 has increased the number to 785.

iii. The number will reduce to 736 after the 2009 elections. Any citizen of the EU
may be a candidate and all citizens may vote. The elections to choose
Members of Parliament are held every five years, and the President of
Parliament is chosen every 2 1/2 years.
iv. The Parliament meets in Strasbourg every month and additional meetings
are also held in Brussels (see photos above). It works with the Council of the
European Union to pass laws and approve the budget. It also supervises the
European Commission and can vote to dismiss them, if necessary.
 The Council of the European Union
• The “Council” represents the individual countries, so each EU member
nation takes its turn at presiding over Council meetings for a period of six
months.

• At each meeting, at least one minister from each member country must
be present. Which ministers attend each meeting is determined by the
subject matter of the discussions
• The Council must work with the Parliament to pass new laws and approve
budgets
• The Council’s other duties include finalizing international agreements and
making decisions that involve international security. Council meetings are
held in both Brussels and Luxemburg.
 The European Commission
• This is the executive side of the “EU Institutions triangle” (see diagram
below) and it represents Europe, as a whole.
• There is one appointed commissioner from each member country, and
they serve for five years.
• They, and their president, must be approved by Parliament, and they can
be dismissed or censured by Parliament.

• The Commission proposes new laws, and makes sure that treaties and
other international agreements are upheld. It must monitor how EU
money is spent, and ensure that EU laws are followed.
• It functions independently from the EU member states, and it meets in
Brussels.
 The Court of Justice
• This is the “supreme court”, which makes sure that EU laws are correctly
interpreted.

EU COURT OF JUSTICE (Luxemburg)

•
It presides over disputes which involve member countries, EU institutions,
businesses and individuals
• The Court consists of one appointed judge from each member country,
and the judges serve for renewable terms of six years.
There are also eight advocates-general to assist the judges. The Court of
Justice is located in Luxemburg
 The Court of Auditors
The European Court of Auditors was established in Luxemburg in 1977, and
the European Monetary System was put into effect in 1979.

EU COURT OF AUDITORS

• This institution is also located in Luxemburg and consists of one member

from each EU country.
• The European Court of Auditors was established in Luxemburg in 1977,
and the European Monetary System was put into effect in 1979.
• These two organizations helped regulate the budgets and the currencies
of the EC countries.
• Also in 1979, the first direct election of members of the European
Parliament took place, and Madame Simone Veil was its President.
Gradually, progress was being made to unify the European economies
and direct representation was given to its citizens.
 The European Crisis

• In 1999,27 countries signed the Maastricht Treat adopting a

common currency the Euro.
• The European Central Bank was set up to adopt a unified
Monetary Policy, however the Fiscal Policy was not unified.
• Due to a unified monetary policy the borrowing of the
individual countries increased mammoth proportions .eg
Greece could now borrow at the same rate as a larger country
like Germany.
• This was possible because of heavy reliance on Germany in
case of credit default.
• Fiscal Deficit increased due to political overspending.
• Due to the availability of cheap credit countries like Ireland
and Spain were majorly affected by the BURST OF THE
HOUSING BUBBLE IN USA (fall of Lehman Brothers, AIG etc).
This had Global implications
• Complex, opaque and overpriced nature financial products
lead the banks reduce spending doubting the credit
worthiness of the banks
• Germany laid terms to EU countries for Austerity measures
leading to mass protests and change of Governments.
 Protesters in LONDON,27TH January
• Austerity measures did not balance budgets as it had
implications on productivity of citizens,affecting the tax
collected
 Growth Rate
GDP(%) 2010
Belgium -0.2
Germany 0.3
Ireland 0.1
Greece 0.1
Spain -1.0
France -0.2
Italy 0.1
Cyprus 0.7
Luxembourg 0.1
Malta 0.2
Netherlands -0.4
Austria -0.1
 Growth Rate

Portugal -0.8
Slovenia 0.7
Slovakia 0.7
Finland 0.2
Euro Area -0.1
Bulgaria 0.1
Czech Republic 0.3
Denmark 0.3
Estonia -0.8
Latvia -3.2
Lithuania -4.7
Hungary -0.3
Poland 0.8
Romania 0.8
Sweden 0.8
U.K 0.1
EU -0.1

Source:European Commission Spring Forecast

 Measures taken…

• Stability and Growth Pact

• Pact for the Euro(2011)
• European Financial Stability Mechanism
• Macroeconomic Imbalance Prrocedure
• Europe 2020
Towards Integration

FISICAL UNION

BANKIK UNION

DEEPER ECONOMIC
UNION
 IMPACT OF CRISIS
• The implications of the financial crisis was felt
worldwide but the importance of boundaries
cannot be negated because the effect of the
crisis was felt more In Eu than world over thus
the debate of Integration and Regionalism
comes forward.
 FOREIGN AFFAIRS
• The European Union has its own foreign and security policy, which has
developed gradually over many years and which enables it to speak – and act
– as one in world affairs. Acting together as the EU, the 27 member countries
have far greater weight and influence than if they act individually, following 27
different policies
• The EU’s common foreign and security policy has been further strengthened
by the 2009 Lisbon Treaty, which created the post of EU High Representative
for Foreign Affairs and Security Policy. At the same time, it created a European
Diplomatic Service – the European External Action Service (EEAS).
• The European Parliament confers full democratic legitimacy on the European
Union’s external action by ensuring it is based on the fundamental values of
democracy and the rule of law which lie at the heart of European integration.
The EU’s Parliamentary Committee on Foreign Affairs helps to formulate and
monitor a foreign policy that addresses the interests of the Union, the security
expectations of its citizens and the stability of its neighbours, and ensures that
it is coherent and effective.
 Peace and Security

• The role of the EU’s foreign and security policy is to preserve peace and
strengthen international security; to promote international cooperation;
and to develop and consolidate democracy, the rule of law and respect for
human rights and fundamental freedoms.
• The EU has sent peacekeeping missions to several of the world’s trouble
spots. In August 2008, the EU helped broker a ceasefire between Georgia
and Russia, deployed EU observers to monitor the situation (EU
monitoring mission in Georgia) and provided humanitarian aid to people
displaced by the fighting. The EU also has a leading role in the Balkans,
where it is funding assistance projects in seven countries to help them
build stable societies. In Kosovo, the EU deployed a 1900-strong police and
justice force (EULEX Kosovo) in December 2008 to help ensure law and
order.
 Diplomacy and Partnership

• The EU is a key player in international issues – from global warming to the

conflict in the Middle East. The EU’s common foreign and security policy is
based on diplomacy – backed where necessary by trade, aid and security
and defence – to resolve conflicts and bring about international
understanding.
• The Union is the largest donor of Development Aid Internationally and this
leaves it in a unique position to reach out in cooperation with developing
countries. It is also the world’s biggest trader, with the world’s second
currency, the Euro.
• The EU maintains partnerships with all the world’s key players – including
new ones – each with their own world views and interests.
 East European Ties:
• As with Russia, the EU is moving to strengthen ties with Georgia, Armenia,
Azerbaijan, Moldova, Ukraine and Belarus.
• The August 2008 Russia-Georgia war, which ended in an EU-brokered
ceasefire and the deployment of an EU monitoring mission in Georgia,
raised concerns over the region’s stability. The EU offers considerable
funding for these countries, as well as the prospect of free-trade
agreements if they undertake political and economic reforms to
strengthen democracy. Since 1989 sweeping changes have occurred on
the EU’s eastern flank.
• Successive enlargements have brought greater geographic proximity with
their Eastern neighbours, while reforms supported by the European
Neighbourhood Policy (ENP) have brought these countries politically and
economically closer to the EU
The Eastern Partnership
• The Eastern Partnership is a project that was presented by the foreign
minister of Poland and Sweden at the EU’s General Affairs and External
Relations Council in Brussels on 26 May 2008. The Eastern Partnership was
inaugurated by the European Union in Prague on 7 May 2009.
• It is meant to provide an institutionalised forum for discussing visa
agreements, free trade deals, and strategic partnership agreements with
the EU’s eastern neighbours, while avoiding the controversial topic of
accession to the European Union.
• Its geographical scope is to consist of Armenia, Azerbaijan, Belarus,
Georgia, Moldova, and Ukraine. Unlike the Union for the Mediterranean,
the Eastern Partnership will not have its own secretariat, but would be
controlled directly by the European Commission.
Middle Eastern Ties:
• In the wake of the Arab Spring in 2011, the EU re-launched its European
neighbourhood policy to express its solidarity with those calling for
democracy. Designed to strengthen the EU’s relations with its neighbours
to the east and south, the policy offers political association, economic
integration and increased mobility.
• The re-launch promised more EU support for those neighbours committed
to political and economic reform, and more interaction with the people
living in these neighbouring countries.
• An EU-Tunisia Task Force is in place to coordinate European and
international support intended to help Tunisia as it makes the transition to
democracy and restarts its economy. A similar EU-Egypt Task Force was
launched in November 2012.
 Asia and Latin America:
• The EU is intensifying relations with regional groups, particularly in Asia
and Latin America. With its fast-developing Asian partners, the EU has
created ‘enhanced partnerships’ – agreements which balance the
economic, political, social and cultural elements of the relationships.
• The EU is deepening their strategic partnerships with China, India, Japan
and negotiations are well underway on new partnership and free trade
agreements with South Korea and with south-east Asian countries.
Regular and wide-ranging dialogue takes place, leading increasingly to
cooperation and convergence on global issues, regional security questions
as well as regulatory policy and other economic issues. Many agreements
in fields ranging from tourism to nuclear research are either in place or
under discussion.
• In 2004 India became one of the EU’s “Strategic Partners”. Since 2005, the
Joint Action Plan which was revised in 2008 is helping in realising the full
potential of this partnership in key areas of interest for India and the EU
 CONCLUSION
• The next five years will be unusually challenging for Europe, even in a best
case scenario. The global financial crisis is having wide-ranging and long
lasting effects
• Among the most serious of these is a threat to the existence of the euro,
the most ambitious project in the process of European integration.
Policymakers have come to terms with the fact that the survival of the
euro area cannot simply be taken for granted, but will depend on careful
management of stresses in the bond markets and weak banking systems,
reforms to fiscal governance and determination to tackle structural
problems.
• The limits of European solidarity will be tested in the coming years and it
is possible that the decades-long process of integration could go into
reverse