4.2 Law and Public finance The European Union What is the EU? The (EU) is a family of 27 democratic European countries committed to working together for peace and prosperity. It is not a state intended existing states, but it works as a partnership of States having common institutions to which they delegate some of their so that decisions on specific matters of interest can be made democratically at European level. European Union to replace sovereignty joint From economic to political union The origins of the EU date back to the years following WWII, when some countries decided to work together to make peace and stability long-lasting. The first steps were economic cooperation: the idea was that if the countries could trade with one another more easily, they would improve their economic situation and thus reduce the possibility of new conflicts. The result was the foundation of the European Economic Community in 1958, originally with only six Member States. The Community gradually evolved into the current institution dealing with a of issues including not only economic growth and development aid, but also climate, environment, health, security, justice and migration. to foster range Milestones towards effective unity In 1985, the paved the way for what would become reality with the a few years later (1992): the single market. With old barriers gone, people, goods, services and money started moving around Europe as freely as within one country. Firms selling in the single market have access to more than 500 million consumers in the enlarged European Union; they can achieve economies and efficiencies of scale, which translate in turn into lower prices. The single market also provided a useful for European firms to expand into today’s globalised markets. Schengen Agreement Maastricht Treaty unrestricted springboard The European currency The euro was launched as an accounting currency and only for electronic payments in the financial market on 1st January 1999. Coins and banknotes started circulating three years later, on 1st January 2002. Since then, the new currency has been adopted in 19 of the 27 member states and has made it easier to travel and compare prices, thus stimulating growth and competitiveness. It has also strengthened Europe’s role in international organisations such as the International Monetary Fund and the World Bank. The euro has actually become a symbol of common identity, shared values and the success of European integration in bringing the peoples and nations of Europe together.