The history, structure and unique economic and political structure of the E.U
The implication of the E.U, (European Union), is a union that involves 27 states in Europe with political as well as economic motives. The members of the union have adopted a system of operation termed as supranational that involves independent institutions which involve in intergovernmental decision negotiations among its members. The EU is comprised of institutions such as European council, the Central Bank of Europe, European Parliament, European Commission and EU Court of Justice among others. The elections of the parliament are conducted by the citizens after a period of 5 years. The EU members Countries have created a potent European community to address political as well as economic issues affecting the members. The aspirations of the EU member states are the fulfillment of a common 21st Century mission (McCormick, John, 234).
Working together of the EU member nations in attempt to create a better quality of life and stronger economy
A lot of nations have opted to participate as members of European Union and this situation has complicated the EU governance. It is however notable that, continuous change is evident in as far as the structure of EU is concerned which in turn improves its effectiveness. The working of the European Union is further made more efficient through introduction of treaties as well as laws whose composition involves Councils that represents the national governments. The people are on the other hand represented by the European Parliament while the most important interests of Europe are catered by the European Commission (Sauga, Michae, 287).
There are specific treaties along with criteria that are important to the EU function and goals. Specific treaties deemed important for the functions of the EU are Treaty of Lisbon which was ratified to promote the element of democracy among the member states. The treaty also ensures awareness to climatic changes, fosters security and development of the members. There is also the Treaty of Maastricht which not only promotes unity but also fosters five main goals of development that revolve around the issues of economic and financial stability, enhanced trade efficiency, strengthened democratic process and social security. (McCormick, John, 234).
How does it compare with the U.S
Comparing economic elements such as the GDP, it is evident that the US has a higher GDP than the E U, the purchasing power of consumers in the US is much higher than that of the consumers in the European Union. The union also experience low labor productivity as compared to the US, however the EU beats the US on the issue of external deficit, the EU has well balance trade in exports and imports compared to the US that relies heavily on imports and distribution. The US has a high flexible labor market that has seen creation of more job opportunities since the 2008/2009 financial and economic crisis.
Strengths and weaknesses
The strengths of the union are mainly founded in the trade facet, for instance, the free movement of goods has enhanced the development of trade in the region. This has also been facilitated by the adoption of a common currency for international trade relations. Establishment of common trade standards through elimination of trade restrictions and tariffs are also some of its strengths. The weaknesses of the union include the following disputes of how to elevate capital stock, lack of legal settings for handling inter boundary defaults and lastly the union lacks proper ways of solving issues such debt crisis (Sauga, Michae, 287).
McCormick, John. The European Union: Politics and Policies. Westview Press. ISBN 978-0-8133-4202-3.2008.
Sauga, Michael. “Designing a Transfer Union to Save the Euro“, Der Spiegel. . ISBN 978-0-8133-4202-3. 2011