An Analysis of the EU Economy and Retailing Industry Dynamics

This report provides a comprehensive overview of the European Union's economy, exploring its structure, policies, and impact on various sectors, particularly the retail industry. It examines the historical context of the EU, including the formation of the European Single Market and the Maastricht Treaty, and analyzes key economic indicators such as GDP, employment rates, and the role of the European Central Bank. The report delves into the retail sector, highlighting the rise of online shopping, the challenges faced by consumers, and the measures taken by the EU to address these issues. It also discusses the importance of renewable energy, the impact of legislation on textiles and clothing, and the application of economic theories to trade and policy-making. The report concludes by emphasizing the need for the EU to adapt to changing economic landscapes and make strategic decisions to foster growth and stability in the retail industry and the broader economy. This report is a valuable resource for students seeking insights into the complexities of the EU economy and its implications for businesses and consumers.

EU Economy

Table of Contents
INTRODUCTION...........................................................................................................................1
REFERENCES..............................................................................................................................15
Books and Journals...................................................................................................................15

INTRODUCTION
European Union is a combination of 28 different countries those who operates their
functioning in a united economic and political block way. In the structure of European Union
nineteen countries use Euro as their official currency. Main motive to form EU is to end warfare
in between European countries that was stated with World War 2 and emerged as a single
European political entity (Blomsma and Brennan, 2017). The European Single Market
offer freedoms in free flow movement of services, money, services and goods. Origin of
European Union was began with the coal and steel community in which there were only six
members those are, Luxembourg, France, Belgium, Italy and Netherlands and become
community of European Economic in the year 1957 within the Treaty of Rome. Just after the
formation EU early focus was in removal of customs barriers and on agricultural policy. In the
year 1973 EU expanded by adding Ireland, Greece, Spain and Denmark in its member list which
emerged its power by raising EU gross domestic product. European Central Bank and EU faced
lot of struggle as its growth and debts ratios were drastically collapsing in Spain, Portugal,
Ireland and Greece. Both Ireland and Greece got financial bailout in the year 2009 accompanied
with Portugal who received its bailout in 2011. In order to overcome this situation EU rotates
multiple rounds so to decrease interest rate and various economic stimulus but all these attempts
failed to solve the raised issues and problems. As after the Crises situation moved towards
stagnation government of U.K announced a referendum whether to remain as a part of EU
structure on 23 June 2016. In this present report, impact of EU decisions on retailing industry has
been effectively mentioned.
European Union framed a treaty which is formally known as Maastricht Treaty. This
treaty is a international agreement which is responsible to create European Union. This treat was
duly signed by leaders of 12 different nation including Italy, France, Netherlands, Belgium,
Greece, Spain, Luxembourg West Germany and Portugal (Bonviu, 2014). The Maastricht
Treaty was then forced from 1 November 1993. This treaty impacted several areas, in which one
the major area was citizenship. In this citizens got the right of citizenship of member state and
enable them to run for
parliament elections in European Union irrespective of their nationality. Along with this,
economy policy is one of the areas which have been impacted by this treaty. For this European
Economic and Monetary Union (EMU) effectively combined their functions and work in a
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cohesive economic system with other members of Union states to initiate euro adopting as a
national currency. In EU structure there is an arrangement in between different types of
European countries which is done in a system named European Monetary System. In this, there
is a link of currencies in between various European countries as to stabilize exchange rates.
Main motive of European Monetary System is to brace inflation rate while measuring and
stopping wider fluctuations in exchange rates within the economic structure of European
countries (Crippa and et. al, 2016).
EU economy operates their functions as a single market having 28 different countries, EU
is one of the largest world trading power. EU economic policy mainly focuses on creating
various job opportunities while increasing market growth. In order to strengthen its market
stability EU focuses on utilizing its financial resources in a smarter way as to remove any kind of
obstacles in investment policies. Along with this, EU economic policy effectively targeted an
area to provide proper visibility and appropriate technological assistance as to make investments
in new projects. EU economy is much bigger than economy of US in in the context of overall
amount to goods and services produced (De Lucia and Bartlett, 2014). As per the data
report published in the year 2017 it has been observed that, EU GDP was about €15.3 trillion
with having 64% total trade done. European Union holds 6.9% of total world's population and
are third largest international trade global players. By the year 2016 EU countries bagged second
position in terms of global exports and imports of goods which amount their overall rate of
exports to 15.6%. Employment rate in
European Union is taking on a basis of estimated proportion of working age population which
indicates labour market trend. Global economic crises and turbulence in Euro zone impacted
employment rate by raising it over next few years.
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Unemployment rate In European Union extracted in a percentage base by taking overall
number of individuals being unemployed in labour force. Mentioned below there is a chart that
shows overall rate of unemployment within EU countries (Ebell and Warren, 2016).
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In context with Retail industry in EU economy, Online shopping is one of the most
popular way which steadfastly growing its roots by becoming leading mode of product and
services buying and selling way for young internet users(Enste, 2018). As technology is
taking important place in every individual life young internet users mostly prefer online
shopping mode to buy products like, medicine, food, groceries, films, telecom services,
electronic equipments, tickets, clothes etc. . There is a chart that showcases those products and
services that are most popular online bought product.
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There are several problems encountered by internet users while making purchase through
the medium of online shopping. For this it is important for EU governance structure to form a
strong legislative system in order to manage and control internet tariff rates in order to resolve e-
buyers problems and issues while ordering any products and services (Gregson and et. al,
2015). Mentioned below there is a graph that shows numerous problems that usually takes
place when conducting online purchases:
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In order to resolve this issues and problems EU can improve its governance structure by making
directive decision. Countries within EU structure by taking advantages of regulatory decisions in
relation with, tariff and transportation can further strengthen its productivity of relating industry.
As per according to the graph, it has been seen that 10 % population of EU countries suffered
from slow speed of delivery (Gruber, Hätönen and Koutroumpis, 2014). For this it is
important for countries performing their functions within EU structure to strengthen its
transportation system. As effective and smooth transport system plays a key essential role for
both EU businesses and public. Authoritative bodies of EU are required to frame efficient
transport policy as to not only maximise companies productivity but also to ensure safe and clean
travelling environment throughout Europe.
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There are three charts mentioned below that shows fragmentation of inland transport system in
which trains, trolleybuses, coaches and buses are included of each and every EU country. Along
with these rates of air passenger transportation rates and sea passenger transport rates are
included.
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Countries within EU governance can include usage of renewable energy in their business
operations as to lower down the level of wastage while ensuring healthy living environment for
individuals. European Union by creating more democratic strategies in related to use renewable
energy sources can potentially save their necessary investments (Haas and et. al, 2015). In
context with retailing industry, it is important for those business organisations to utilize
renewable sources like, hydro power, solar power, tidal power, bio fuels, wind power,
geothermal waste as to benefits population within EU by lowering down emissions of
greenhouses gas. In addition with this, renewable source of energy benefits retail industry to
strengthen their production and manufacturing functions by having lower level dependency on
various fossil fuels such as oils and gas. Mentioned below there is chart depicts raise in the
margin of utilization of renewable energy sources by countries in EU
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Retail sector is considered as largest sector in economy of EU with around 3.6 million people are
working within this sector. This sector is altering dynamically with enhancement of multi-
channel retailing and e-commerce (Haughton, 2014). This has lead organisations to perform
effectively. This is the major reason Commission is assisting EU countries and different
operators to tackle challenges by acknowledging accumulation of certain restrictions within retail
sector. Moreover, there are certain areas in which EU countries can make significant
improvements. This includes facilitating retail establishment. It is necessary for retailers to set
up their own new shop within market by which they can surrogate innovation and productivity.
EU countries can decline risk of public policy interests like security of customers and
environment and town & country planning, this can be attained by enhancing conformity with
services directive. Furthermore, local, regional and national authorities are inspired to eliminate
undue burdens, devising procedures of retail establishment transparent, shorter and simpler.
Decreasing restrictions associated with everyday operations of shop. This will create burden
on businesses and their productivity will be affected, this is the explanation why Commission has
determined practices on sales discounts and promotions, opening hours of shop, specific retail
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