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|capital = Brussels, Luxembourg, Strasbourg

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|government =Sui generis supranationalism

|government =Sui generis supranationalism

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|language = 23 Official languages

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|president = José Manuel Barroso (Commission) Hans-Gert Pöttering (Parliament)

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|area         =1,669,807 sq mi

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|pop         =495,128,529 (2007)

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|gdp-year =$14,518 billion (2007)

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The '''European Union (EU)''' is a legal and economic union of 27 [[Europe|European]] nations. It was formed in 1993 with the ratification of the [[Maastricht Treaty]], though its predecessor, the European Economic Community, was founded in 1957.

The '''European Union (EU)''' is a legal and economic union of 27 [[Europe|European]] nations. It was formed in 1993 with the ratification of the [[Maastricht Treaty]], though its predecessor, the European Economic Community, was founded in 1957.

As an institution, the EU has more powers over its member states and their citizens than is the case with most international bodies; 13 of its member states also use a common [[currency]], the [[Euro]]. It is not, however, generally regarded as a federation or state in its own right. Rather, it stands somewhere between these two points.

As an institution, the EU has more powers over its member states and their citizens than is the case with most international bodies; 15 of its member states also use a common [[currency]], the [[euro]]. It is not, however, generally regarded as a federation or state in its own right. Rather, it stands somewhere between these two points.

==Structure==

==Structure==

===The European Commission===

===The European Commission===

The role and responsibilities of the European Commission place it at the center of the EU's decision-making process. Acting as the EU’s policy and executive engine, the Commission is composed of 25 Commissioners, one from each Member State and is supported by a substantial staff located primarily in Brussels, Belgium. In matters relating to economic integration ("First or ‘Community’ Pillar"), only the Commission has the right to propose legislation for approval by the EU Council and European Parliament. As "guardian of the Treaties," the Commission ensures that EU laws are applied and upheld throughout the EU, prosecuting Member States and other institutions for failing to follow treaty precepts or otherwise apply Community law. The Commission has full authority to enforce Community competition policy, and its policing of implementation of Community legislation preserves the integrity of the EU single market. The Commission likewise manages and develops the Common Agriculture Policy (CAP), implements the budget, and represents the European Community in its areas of competence, notably including international trade negotiations.  

The role and responsibilities of the European Commission place it at the center of the EU's decision-making process. Acting as the EU’s policy and executive engine, the Commission is composed of 27 Commissioners, one from each state, and is supported by a substantial staff located primarily in Brussels, Belgium. In matters relating to economic integration ("First or ‘Community’ Pillar"), only the Commission has the right to propose legislation for approval by the EU Council and European Parliament. As "guardian of the Treaties," the Commission ensures that EU laws are applied and upheld throughout the EU, prosecuting Member States and other institutions for failing to follow treaty precepts or otherwise apply Community law. The Commission has full authority to enforce Community competition policy, and its policing of implementation of Community legislation preserves the integrity of the EU single market. The Commission likewise manages and develops the Common Agriculture Policy (CAP), implements the budget, and represents the European Community in its areas of competence, notably including international trade negotiations.  

The Commission President is appointed by agreement of the EU heads of government and is subject to approval by the European Parliament. Commissioners serve for a renewable five-year term. New Commissioners are identified by Member State governments in consultation with the President-designate of the Commission and are normally put in place at the beginning of the term of the Commission President. The entire Commission must be confirmed as a collective whole by the European Parliament before its formal appointment by common accord of EU governments.  

The Commission President is appointed by agreement of the EU heads of government and is subject to approval by the European Parliament. Commissioners serve for a renewable five-year term. New Commissioners are identified by Member State governments in consultation with the President-designate of the Commission and are normally put in place at the beginning of the term of the Commission President. The entire Commission must be confirmed as a collective whole by the European Parliament before its formal appointment by common accord of EU governments.  

===The European Council===

===The European Council===

The European Council brings together EU heads of government and the President of the European Commission; foreign ministers of Member States also participate. Finance ministers are normally included when the leaders discuss questions related to EMU and the economy. The European Council meets at least twice a year, usually quarterly, at the end of each Presidency, to review major EU projects, set guidelines for policies and provide necessary guidance. The Presidency of the Council rotates every six months among EU Member States (January-June; July- December). Its role has become increasingly important with the expansion of EU responsibilities and competencies. The Presidency organizes and presides over the meetings of the European Council and EU Council (ministerial) meetings, drafts compromises, and seeks solutions to problems submitted to the European Council.  

The European Council brings together EU heads of government and the President of the European Commission; foreign ministers of Member States also participate. Finance ministers are normally included when the leaders discuss questions related to the euro and the economy. The European Council meets at least twice a year, usually quarterly, at the end of each Presidency, to review major EU projects, set guidelines for policies and provide necessary guidance. The Presidency of the Council rotates every six months among EU Member States (January-June; July- December). Its role has become increasingly important with the expansion of EU responsibilities and competencies. The Presidency organizes and presides over the meetings of the European Council and EU Council (ministerial) meetings, drafts compromises, and seeks solutions to problems submitted to the European Council.  

===Council of Ministers===

===Council of Ministers===

===The European Parliament===

===The European Parliament===

Members of the European Parliament are directly elected by EU citizens for five-year terms; elections follow national election procedures. Members do not sit in national delegations; rather, they sit in groups according to political affiliation (including Socialists, Christian-Democrats/Conservatives, Liberals, Greens, etc.).  

Members of the European Parliament are directly elected by all EU citizens for five-year terms; elections follow national election procedures. Members do not sit in national delegations; rather, they sit in groups according to political affiliation (including Socialists, Christian-Democrats/Conservatives, Liberals, Greens, etc.).  

Parliament's powers have gradually grown with the entry into force of the Single European Act (1986), the Maastricht Treaty (1993) and the Treaty of Amsterdam (1999). Parliament shares decision-making power on an equal footing with the Council in many areas under the Community Pillar to which the "co-decision procedure" applies. The European Parliament is one of the two branches with budgetary authority – the Council is the other. The signature of the EP president brings the overall EU budget into effect.  

Parliament's powers have gradually grown with the entry into force of the Single European Act (1986), the Maastricht Treaty (1993) and the Treaty of Amsterdam (1999). Parliament shares decision-making power on an equal footing with the Council in many areas under the Community Pillar to which the "co-decision procedure" applies. The European Parliament is one of the two branches with budgetary authority – the Council is the other. The signature of the EP president brings the overall EU budget into effect.  

===The European Court of Justice===

===The European Court of Justice===

The European Court of Justice (ECJ) ensures uniform interpretation and application of both the Treaties establishing the European Communities and the secondary legislation and other law adopted under their authority. To enable it to carry out that task, the Court has wide jurisdiction to hear various types of cases. For example, the Court has the authority to hear and issue binding judgments in lawsuits that seek to annul a law adopted by the EU, to compel an EU institution to act, or to require that a Member State comply with EU law. The ECJ may issue clarifications of EU law (in response to a request for a preliminary ruling from any Member State court) and hears appeals on legal questions arising out of cases at the Court of First Instance. The ECJ currently has 25 justices and eight advocates-general, who are appointed by common accord of the governments of the Member States and who hold office for six-year renewable terms.  

The European Court of Justice (ECJ) ensures uniform interpretation and application of both the Treaties establishing the European Communities and the secondary legislation and other law adopted under their authority. To enable it to carry out that task, the Court has wide jurisdiction to hear various types of cases. For example, the Court has the authority to hear and issue binding judgments in lawsuits that seek to annul a law adopted by the EU, to compel an EU institution to act, or to require that a Member State comply with EU law. The ECJ may issue clarifications of EU law (in response to a request for a preliminary ruling from any Member State court) and hears appeals on legal questions arising out of cases at the Court of First Instance. The ECJ currently has 27 justices and eight advocates-general, who are appointed by common accord of the governments of the Member States and who hold office for six-year renewable terms.  

==Sovereignty==

==Sovereignty==

The member states of the European Union fall under the jurisdiction of the European Court of Justice. Similar to Federal Law trumping State Law in United States politics, the EU member states are obligated to follow the laws set forth by the European Court of Justice. This system of government takes sovereignty from the nation, and rests it in the EU court of Justice. Some political theorists argue that the EU is thus the death of the Nation. By the rules of The Treaty of Westphalia, nations are defined by their rite of Self-Sovereignty.

The member states of the European Union fall under the jurisdiction of the European Court of Justice. Similar to Federal Law trumping State Law in United States politics, the EU member states are obligated to follow the laws set forth by the European Court of Justice. This system of government takes sovereignty from the nation, and rests it in the EU court of Justice. Some political theorists argue that the EU is thus the death of the nation, as by the rules of the Treaty of Westphalia, nations are defined by their rite of self-sovereignty.

==Economy==

==Economy==

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 labor move freely between Member States (with some exceptions), businesses in all Member States are increasingly subject to common basic rules, and twelve of the 25 Member States use a common currency, the euro. The twelve 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, labor, and capital, and to promote the overall convergence of living standards. Internationally, the EU aims to strengthen Europe’s trade position and capitalize 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 labor move freely between Member States (with some exceptions), businesses in all Member States are increasingly subject to common basic rules, and fifteen of the 27 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''. 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, labor, and capital, and to promote the overall convergence of living standards. Internationally, the EU aims to strengthen Europe’s trade position and capitalize 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 2004 GDP of $12.1 trillion; however, growth in many of the EU’s Member States in the recent past has been slow. Between 2001 and 2003, the overall growth rate dropped from 1.8 percent to 1.0 percent. The EU economy staged a modest, short-lived recovery in 2004, but forecasters expect growth to remain below two percent in 2005 and 2006. Within the Euro area, growth varies as much as 4.5 percentage points between the fastest and slowest-growing economies. In 2005, many of the EU’s largest economies, including Germany, France and Italy, will grow by less than two percent. Outside the Euro area, 2005 growth is forecast to remain strong, particularly in the Central and Eastern European countries that joined the EU in May 2004.  

The EU is the world’s largest economic area (the U.S. is second) with a 2007 GDP of $16.6 trillion; however, growth in many western Member States in the recent past has been slow compared to those in the east. Between 2001 and 2003, the overall growth rate dropped from 1.8 percent to 1.0 percent. The EU economy staged a,short-lived recovery in 2004 of 2.4%, but 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, many of the EU’s largest economies, including Germany, France and Italy, grew by less than two percent. Outside the euro area, growth remains strong, particularly in the Central and Eastern European countries that joined the EU in May 2004.

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 labor 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 Euro area unemployment at 8.6 percent, generous social programs continue to strain national economies. 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 labor 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 labor 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, generous social programs continue to strain national economies. 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 labor market flexibility, provide incentives to work and increase investment in human capital.  

===Fiscal and Monetary Policy===

===Fiscal and Monetary Policy===

Introduced in 1999, the Euro is currently the official currency of twelve of the 25 EU Member States. United Kingdom, Denmark and Sweden chose to retain their national currencies, and newer EU members have yet to adopt the Euro. Prior to the Euro's launch in 1999, national currency exchange rates of countries intending to join the Euro were fixed within an Exchange Rate Mechanism. Following the January 2002 introduction of Euro notes and coins into general circulation, national currencies were removed from circulation. Each of the Euro area countries agreed to abide by a shared fiscal policy rule book known as the Stability and Growth Pact (SGP). This agreement generally obliges national governments to limit government budget deficits to 3 percent of GDP and established a target debt-to-GDP ratio of below sixty percent. Although enforcement actions have been forgiving – France and Germany, for example, avoided sanctions despite missing SGP targets – countries violating the SGP are technically subject to sanctions by the European Commission. As of March 2005, national governments have been granted budget leeway to achieve structural reforms and to combat prolonged stagnation, negative growth or other factors, such as the cost of German reunification or state pensions. The revised standards still require deficits to remain close to the targets; they may only temporarily exceed the three percent limit. The ten Member States that joined the EU in May 2004 may adopt the Euro after complying with the SGP targets and meeting other applicable criteria.  

Introduced in 1999, the euro is currently the official currency of fifteen of the 27 EU Member States. United Kingdom, Denmark and Sweden chose to retain their national currencies, and newer EU members have yet to adopt the Euro. Prior to the Euro's launch in 1999, national currency exchange rates of countries intending to join the Euro were fixed within an Exchange Rate Mechanism. Following the January 2002 introduction of Euro notes and coins into general circulation, national currencies were removed from circulation. Each of the Euro area countries agreed to abide by a shared fiscal policy rule book known as the Stability and Growth Pact (SGP). This agreement generally obliges national governments to limit government budget deficits to 3 percent of GDP and established a target debt-to-GDP ratio of below sixty percent. Although enforcement actions have been forgiving – France and Germany, for example, avoided sanctions despite missing SGP targets – countries violating the SGP are technically subject to sanctions by the European Commission. As of March 2005, national governments have been granted budget leeway to achieve structural reforms and to combat prolonged stagnation, negative growth or other factors, such as the cost of German reunification or state pensions. The revised standards still require deficits to remain close to the targets; they may only temporarily exceed the three percent limit. The ten Member States that joined the EU in May 2004 may adopt the Euro after complying with the SGP targets and meeting other applicable criteria.  

The Euro area’s monetary policy is set by the European Central Bank (ECB), which must devise a monetary policy to accommodate a wide range of domestic policies and economic conditions within Euro area Member States. The Treaties require that the ECB’s primary objective be to maintain price stability (i.e., to keep inflation low). Euro-area national governments have sometimes criticized the ECB for guarding against inflation at the expense of interest rate flexibility that could enable struggling economies to gain traction. The ECB’s consistent overnight interest rate of two percent has been credited with creating favorable conditions for growth in Spain and Ireland, but has been blamed for hindering growth in France, Germany, Italy, and Portugal.  

The Euro area’s monetary policy is set by the European Central Bank (ECB), which must devise a monetary policy to accommodate a wide range of domestic policies and economic conditions within Euro area Member States. The Treaties require that the ECB’s primary objective be to maintain price stability (i.e., to keep inflation low). Euro-area national governments have sometimes criticized the ECB for guarding against inflation at the expense of interest rate flexibility that could enable struggling economies to gain traction. The ECB’s consistent overnight interest rate of two percent has been credited with creating favorable conditions for growth in Spain and Ireland, but has been blamed for hindering growth in France, Germany, Italy, and Portugal.  

In May 1998, EU heads of government officially designated eleven Member States eligible to adopt a single currency. Greece initially did not qualify, and Sweden, the UK and Denmark "opted out." On January 1, 1999, the Euro became the official currency of the EU, and the European Central Bank (ECB) put euro notes and coins into circulation on January 1, 2002. Today, twelve countries use the euro: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.  

In May 1998, EU heads of government officially designated eleven Member States eligible to adopt a single currency. Greece initially did not qualify, and Sweden, the UK and Denmark "opted out." On January 1, 1999, the Euro became the official currency of the EU, and the European Central Bank (ECB) put euro notes and coins into circulation on January 1, 2002. Today, twelve countries use the euro: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.  

Streamlining the size and procedures of EU institutions to make the expanded EU more efficient was also an aim of the 2003 Treaty of Nice. A year later, in May 2004, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia joined the EU, bringing total membership to 25. Candidate countries currently include Bulgaria and Romania (scheduled to accede to the EU on January 1, 2007), as well as Turkey and Croatia.  

Streamlining the size and procedures of EU institutions to make the expanded EU more efficient was also an aim of the 2003 Treaty of Nice. A year later, in May 2004, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia joined the EU, and in 2007 Bulgaria and Romania acceded, bringing total membership to 27. Candidate countries currently include Turkey, FYR Macedonia and Croatia, and potential candidates include the rest of the Western Balkan states.

In October 2004, Member States signed an EU Constitutional Treaty in Rome, intending that it take effect on November 1, 2006. French and Dutch voters rejected the treaty through referendums in 2005, thereby suspending the ratification process.  

In October 2004, Member States signed an EU Constitutional Treaty in Rome, intending that it take effect on November 1, 2006. French and Dutch voters rejected the treaty through referendums in 2005, thereby suspending the ratification process.