An Evaluation of the Success of the European Union (Economics Module)

This report provides an evaluation of the European Union's success, focusing on its core objectives and achievements since its formation. The report begins by outlining the EU's primary goals, including promoting peace, creating a single market, and fostering economic integration among its member nations. It then analyzes the EU's success in achieving these objectives, highlighting the establishment of a common area without borders, the free movement of goods, capital, people, and services, and the creation of the Euro as a common currency. The report discusses the advantages of the Euro, such as economic stability and reduced exchange costs, as well as the disadvantages, including the loss of fiscal and monetary policy control by individual member states. The analysis also includes the impact of the EU on global economic growth and the challenges it faces, such as migration issues. The report concludes by acknowledging the EU's progress while emphasizing the need for ongoing efforts to address existing challenges and further enhance its achievements.

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AN EVALUATION OF THE SUCCESS OF THE EUROPEAN UNION
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Introduction
The European Union refers to an economic and political union which is made up of 28 nations
which are all located in the Europe Region. The current estimated population of the European
Union is about 513 million people. The European Union was formed during the year 1993
although it traces its origin from the year 1951 when the “European Coal and Steel Community
(ECSC) and the European Economic Community (ECC)” were formed (Urwin 2014, p.49). The
major goal of the EU is to ensure peaceful coexistence among its member countries. The other
objectives include formation of a common area for Europeans which has no borders amongst
them, formation of a single market for the Europeans, development based on science and
technology among the member nations, sustainability and stability in development, social
exclusion prevention, solidarity among the member nations, creation of a common foreign and
security policy and the respect for nation’s cultural practices including languages. This report has
analyzed the success of the European Union based on its objectives for formation.
Discussion
The European Union has been successful in fulfilling its primary objective of promoting peace
among its member countries (Freire and Simão 2013, p.175). The European region has not been
free from war but the member nations have remained peaceful since the formation of the
European Union and armed conflicts among them have not been witnessed. Peace has been
maintained through various economic partnerships established by the European Union among its
member nations. The European Union has ensured cooperation among its member nations
through diplomatic negotiations among them which are carried out in an efficient rule-based
manner. For instance, during the year 2017, 92 days were set for European Union member

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nations’ ministers' meeting in which joint policies were made and peaceful coexistence was
strengthened. This shows that the European Union has been successful in maintaining peace and
good results are anticipated in the future.
The European Union has been successful in creating a common area for all Europeans without
boundaries. Europeans have been able to move freely across the member nations of the European
Union. European Union citizens can study and work anywhere in the European Union. They also
have the right to living anywhere they wish in the member nations of the European Union.
European Union protects the rights of the integration process through the “European Union
Charter of Fundamental Rights”.
The European Union has also been successful in creating a single market among its member
nations. The single market created has enabled free movement of goods, capital, people and
services across the European member nations (Messerlin 2011, p.410). The price for goods and
services has been maintained low for the member countries through the elimination of custom
taxes charges among the member nations. This has fostered economic growth of the European
Union and today its gross domestic product is more than $17 trillion though less compared to
that of the United States which is above $20 trillion (Liñán and Fernandez-Serrano 2014, p.685).
It contributes much towards the world economic growth accounting for more than 30 percent of
the World’s total gross domestic product.
The European Union has also been successful in creating a common currency Euro, although it’s
only used by 19 countries out of the 28 nations comprising the union (Streeck 2015, p.5). Euro is
the secondly widely used currency after the U.S Dollar in the whole world. Britain did accept the

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use of the Euro and cling to its pound. Although the Euro is maintained stable, it has various
merits and demerits as explained.
The membership into the Euro as a single currency has highly benefited businesses and
consumers of the member nations. The European economic stability has been maintained by its
stable Euro currency. The member state governments, businesses, and consumers have been able
to budget their future with great certainty due to the Euro’s stability. Businesses in the European
Union have also been able to avoid the exchange costs of currencies as they use the same
currency in investing in many European nations. The single stable currency has also attracted
many businesses globally to invest in member states hence improving foreign direct investment
among the member nations (De Sousa and Lochard 2011, p.553).
Despite the many merits of Euro single membership, the state members also face various
demerits. The member states are deprived their rights over their fiscal and monetary policies
which they could use to control their various economic indicators such as inflation, exchange
rates and interest rates (Bordo, Jonung and Markiewicz 2013, p.449). The Euro policies may
have different effects on various member states depending on the economic situation being faced
by each state. Some may be affected negatively but they have no rights to adjust accordingly as
they lack fiscal and monetary policy rights for their nation. Also, the member states must incur
transition costs as they move into the single currency such as acquiring new vending machines
and the withdrawal and issuance of new currencies’ costs.
Conclusion
The European Union has been successful in achieving its purpose but still much needs to be
done. For instance, it has been able to maintain peaceful coexistence among its member nations

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as its primary purpose but it is still experiencing various problems such as the migration ones.
The European Union should consider eliminating various challenges it is experiencing but so far
it’s moving towards the right direction.

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References
Bordo, M.D., Jonung, L. and Markiewicz, A., 2013. A fiscal union for the euro: Some lessons
from history. CESifo Economic Studies, 59(3), pp.449-488.
De Sousa, J. and Lochard, J., 2011. Does the single currency affect foreign direct
investment?. The Scandinavian Journal of Economics, 113(3), pp.553-578.
Freire, M.R. and Simão, L., 2013. “From words to deeds”: European Union democracy
promotion in Armenia. East European Politics, 29(2), pp.175-189.
Liñán, F. and Fernandez-Serrano, J., 2014. National culture, entrepreneurship and economic
development: different patterns across the European Union. Small Business Economics, 42(4),
pp.685-701.
Messerlin, P.A., 2011. The European Union single market in goods: between mutual recognition
and harmonization. Australian Journal of International Affairs, 65(4), pp.410-435.
Streeck, W., 2015. Why the euro divides Europe. New Left Review, (95), pp.5-26.
Urwin, D.W., 2014. The community of Europe: A history of European integration since 1945.
Routledge, 60(3), pp.49-60.