Changes

The institutions of the European Union were originally created to oversee the operation of the several economic communities that later became the Single European Market. Even as the EU's political integration has continued, the area of greatest integration has always been in the economic sphere: goods, capital, and labour move freely between member states (with exceptions for goods which pose a public health risk), businesses in all member states are increasingly subject to common basic rules, and fifteen of the 28 member states use a common currency, the euro. The rest of the states are legally obliged to adopt the euro when their economies meet strict ''Convergence Criteria'' (except the UK and Denmark, which negotiated opt-outs). The fifteen euro-area countries share a common monetary policy administered by the European Central Bank in Frankfurt, Germany. The EU strives to eliminate internal barriers to the free flow of goods, services, labour, and capital, and to promote the overall convergence of living standards. Internationally, the EU aims to strengthen Europe's trade position and capitalise on the political and economic leverage that a large, unified market brings.  

The institutions of the European Union were originally created to oversee the operation of the several economic communities that later became the Single European Market. Even as the EU's political integration has continued, the area of greatest integration has always been in the economic sphere: goods, capital, and labour move freely between member states (with exceptions for goods which pose a public health risk), businesses in all member states are increasingly subject to common basic rules, and fifteen of the 28 member states use a common currency, the euro. The rest of the states are legally obliged to adopt the euro when their economies meet strict ''Convergence Criteria'' (except the UK and Denmark, which negotiated opt-outs). The fifteen euro-area countries share a common monetary policy administered by the European Central Bank in Frankfurt, Germany. The EU strives to eliminate internal barriers to the free flow of goods, services, labour, and capital, and to promote the overall convergence of living standards. Internationally, the EU aims to strengthen Europe's trade position and capitalise on the political and economic leverage that a large, unified market brings.  

===Growth===

===Growth===

The EU is the world's largest economic area (the U.S. is second) with a 2007 GDP of $16.6 trillion. Growth in many member states has been slow; between 2001 and 2003, the overall growth rate dropped from 1.8 percent to 1.0 percent, then recovered in 2004 to 2.4%, fell to 1.8 percent in 2005, then rose to 2.8% in 2006 and 2.4% in 2007. Within the euro area, growth varies as much as 4.5 percentage points between the fastest and slowest-growing economies: in 2005, the economies of Germany, France and Italy, grew by less than two percent. Growth remains strong in the new [[Central Europe]]an member states with rapidly industrialising economies.

The EU was the world's largest economic area (the U.S. is second) with a 2007 GDP of $16.6 trillion. Growth in many member states has been slow; between 2001 and 2003, the overall growth rate dropped from 1.8 percent to 1.0 percent, then recovered in 2004 to 2.4%, fell to 1.8 percent in 2005, then rose to 2.8% in 2006 and 2.4% in 2007. Within the euro area, growth varies as much as 4.5 percentage points between the fastest and slowest-growing economies: in 2005, the economies of Germany, France and Italy, grew by less than two percent. Growth remains strong in the new [[Central Europe]]an member states with rapidly industrialising economies.

In spring 2000, the EU committed to a ten-year strategic goal of transforming the EU into a more competitive, knowledge-based economy capable of sustaining higher levels of growth. Focusing on labour market reform, macroeconomic and fiscal policy, and promotion of e-commerce and entrepreneurship, the EU's "Lisbon Agenda" was an attempt to stimulate growth while remaining committed to the EU social model. Some suggest that it has so far failed to achieve its goals in large part because national governments (which retain authority over employment policy, immigration, large public sector workforces, entitlement programs and pensions) have not completed the necessary reforms, with unemployment at 6.9 percent in 2007. The European Commission re-launched the Lisbon Agenda in March 2005, promising three percent growth and six million new jobs by 2010. The revamped strategy focuses on developing political consensus within member states to make the changes necessary to complete elimination of barriers in the internal market, reduce the regulatory burden on business, improve labour market flexibility, provide incentives to work and increase investment in human capital.

In spring 2000, the EU committed to a ten-year strategic goal of transforming the EU into a more competitive, knowledge-based economy capable of sustaining higher levels of growth. Focusing on labour market reform, macroeconomic and fiscal policy, and promotion of e-commerce and entrepreneurship, the EU's "Lisbon Agenda" was an attempt to stimulate growth while remaining committed to the EU social model. Some suggest that it has so far failed to achieve its goals in large part because national governments (which retain authority over employment policy, immigration, large public sector workforces, entitlement programs and pensions) have not completed the necessary reforms, with unemployment at 6.9 percent in 2007. The European Commission re-launched the Lisbon Agenda in March 2005, promising three percent growth and six million new jobs by 2010. The revamped strategy focuses on developing political consensus within member states to make the changes necessary to complete elimination of barriers in the internal market, reduce the regulatory burden on business, improve labour market flexibility, provide incentives to work and increase investment in human capital.