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|language = 23 official languages

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

 

The term is often confused with [[Europe]].  

As a set of institutions, the EU has more powers over its member states and their citizens than other international bodies; many of its competencies are supranational (above the member states) rather than intergovernmental (between them).  Despite having a legal personality and sovereignty in agreed areas, it is not regarded as a federation or state in its own right: rather, it stands somewhere between these two points. Fifteen member states use a common currency, the '''[[euro]]'''<ref>Five other states formally agree to use it, and four others use it without formal agreement.</ref>.   

As a set of institutions, the EU has more powers over its member states and their citizens than other international bodies; many of its competencies are supranational (above the member states) rather than intergovernmental (between them).  Despite having a legal personality and sovereignty in agreed areas, it is not regarded as a federation or state in its own right: rather, it stands somewhere between these two points. Fifteen member states use a common currency, the '''[[euro]]'''<ref>Five other states formally agree to use it, and four others use it without formal agreement.</ref>.   

===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 western member states 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, 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- and eastern-European member states with rapidly industrialising economies.

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.

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.

The collapse of the Berlin Wall and German unification prompted member states to negotiate the 1992 Treaty on European Union (the "Maastricht Treaty"). In addition to establishing the European Union, the Maastricht Treaty set an ambitious program of further integration: establishment of Economic and Monetary Union (EMU) by 1999 (part of the "First or 'Community' Pillar"), setting up of a Common Foreign and Security Policy (CFSP) ("Second Pillar"); and cooperation on Justice and Home Affairs (JHA) ("Third Pillar"). Shortly thereafter, in 1995, Austria, Finland and Sweden joined the EU &ndash; the fourth enlargement.  

The collapse of the Berlin Wall and German unification prompted member states to negotiate the 1992 Treaty on European Union (the "Maastricht Treaty"). In addition to establishing the European Union, the Maastricht Treaty set an ambitious program of further integration: establishment of Economic and Monetary Union (EMU) by 1999 (part of the "First or 'Community' Pillar"), setting up of a Common Foreign and Security Policy (CFSP) ("Second Pillar"); and cooperation on Justice and Home Affairs (JHA) ("Third Pillar"). Shortly thereafter, in 1995, Austria, Finland and Sweden joined the EU &ndash; the fourth enlargement.  

Signed in 1997 and entering into force on May 1, 1999, the '''Amsterdam Treaty''' partially streamlined the EU institutional structure. Its most significant effects were: (1) to transfer aspects of Justice and Home Affairs policy to the Community Pillar, enabling the Commission to propose decisions to be taken by the EU Council by qualified majority voting instead of by consensus, and (2) to establish a High Representative for the CFSP (who also serves as Secretary-General of the Council Secretariat). Ten countries in Central and Eastern Europe and Cyprus began accession procedures in 1997, followed by Malta. The prospect of eastward enlargement raised significant resource concerns and prompted the adoption in March 1999 of the "Agenda 2000" package, which covered amendments to the CAP and EU structural policies, as well as a budgetary framework through 2006.  

Signed in 1997 and entering into force on May 1, 1999, the '''Amsterdam Treaty''' partially streamlined the EU institutional structure. Its most significant effects were: (1) to transfer aspects of Justice and Home Affairs policy to the Community Pillar, enabling the Commission to propose decisions to be taken by the EU Council by qualified majority voting instead of by consensus, and (2) to establish a High Representative for the CFSP (who also serves as Secretary-General of the Council Secretariat). Ten countries in [[Central Europe]] and Cyprus began accession procedures in 1997, followed by Malta. The prospect of eastward enlargement raised significant resource concerns and prompted the adoption in March 1999 of the "Agenda 2000" package, which covered amendments to the CAP and EU structural policies, as well as a budgetary framework through 2006.  

In May 1998, EU heads of government officially designated eleven member states eligible to adopt a single currency. Britain 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 in 2002. Today, fifteen countries use the euro: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain.  

In May 1998, EU heads of government officially designated eleven member states eligible to adopt a single currency. Britain 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 in 2002. Today, fifteen countries use the euro: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia and Spain.  

===Expansion===

===Expansion===

In 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 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 [[Balkans|Balkan]] states.   

In October 2004, member states signed an EU Constitutional Treaty designed to replace all previous treaties. French and Dutch voters rejected the treaty through referendums in 2005, thereby suspending the ratification process. In 2007, a modified '''Treaty of Lisbon''' was agreed upon, which retains most of the reforms of the Constitution, but amends rather than replaces previous treaties.  

In October 2004, member states signed an EU Constitutional Treaty designed to replace all previous treaties. French and Dutch voters rejected the treaty through referendums in 2005, thereby suspending the ratification process. In 2007, a modified '''Treaty of Lisbon''' was agreed upon, which retains most of the reforms of the Constitution, but amends rather than replaces previous treaties.