Business

“European Union” A Successful Business Experiment

5
(1)

What is the European Union?

Europe a dream destination for every student and tourist. Have you ever wondered why we call European countries as a single identity? here we are talking about one of the most successful business ventures of the world’s economic history. So what is the European Union?

It binds 27 European countries together to have a successful business; travel trade; economic policies and much more economic and social ventures together. This friendship is helpful for these countries to have a successful economic superiority in the world; which is making them one of the most powerful countries in the world. These 27 countries once were the most rival nations in the history; mostly they were in the state of war; then what are the reasons that these countries have become such good friends; that today there are no boundaries and borders between these countries. Today, in order to travel between these countries; citizens do not need any kind of specific visa or permissions. Any European citizen can do business, travel job everything without any sanctions within these countries. The fun fact is everything that happened in less than 100 years.

Importance

European Union was made in order to help these 27 countries. It is not only this but this organization is also helping 500 million people and doing work for their betterment. It is called one of the most successful business venture.

History

Europe was never like it is in today’s date. The story of the European Union started back in 70 years right after the end of “World War II”. In the 20th Century greatest wars actually centred in Europe. It means Europe was serving as a battlefield for all the other countries in the World Wars. The WW-II almost destroyed the whole of Europe. Due to the WW-II, the superpower status for Britain and France overthrown. Germany destroyed and split into two parts “West Germany and East Germany”. Along with east Germany major parts of East Europe overtaken by the communist Soviet Union. From the Soviet Russia major Western European countries were facing threat; they wanted to move out from the worst situation caused by the WW-II; they also wanted to get economically successful and stable.

European Leaders meeting in 1964
European Leaders meeting in 1964

Europe step towards success

Europe wanted to get successful again; so they took 2 major and most important moves to get their powerful status back:

  1. The first move was that Europe joined the American lobby; so signed a treaty named “North Atlantic Treaty Organization” or simply NATO. It solved the first major issue and problem which Western Europe was facing against the communist Soviet Union.
  2. The second important move was to create harmony, peace and unity between the countries and to overcome the economic; social loss and deficit happened in the WW-II. They made stepping stone by making many agreements between each European nation; so that opportunity could have given to each country to grow their economy. Even the differences between big and small countries have also vanished. The rights and power of each country were totally the same. This interesting story of a community which with time formed into today’s European Union.

Winston Churchill’s Vision towards European Union

European Union actually established under the vision of Sir Winston Churchill; who at the time of WW-II was the Prime Minister of Britain. He was famous for his strong will. He took charismatic decisions against Nazi Germany at the time of war; through his powerful war decisions and policies which made Britain successful in the WW-II. In 1964, Churchill was not the Prime Minister; but the whole of Europe accepted him as a great leader and politician.

Churchill delivering his speech
Churchill delivering his speech

On 19th of September 1946, Churchill gave a historic speech at the University of Zurich Switzerland, where he stated and gave an idea of “ United States of Europe”, in order to give Europeans a message to turn their back from the horrors of past and urging them to look into the future in a united way make an organization of United States of Europe in which the individual power of each European country dissolves and a collective and united organization could rise and help Europe to get their superpower status back. This vision of Churchill favoured and liked by almost every European leader and they made a collective plan for this organization.

Role of France towards European Union

Because France and Germany highly effected by the WW-II so they both tried hard to stop any future wars. So, France took the first step towards the vision of Churchill. The French Foreign Minister Robert Schuman proposed a declaration named as “Schuman’s Declaration” in 1950, it proposed that each European nation should give their economic production like steel, iron, coal to individual authority. The main reason for making this authority was that in future any budget of these countries could not be used for the war. This declaration liked by majority Western European nations and became ready to be a part of this authority. So, in 1951 a “Treaty of Paris” signed in which France, Germany, Belgium, Italy, the Netherlands including Luxembourg.

Charles de gaulle
Charles de gaulle

Coal & Steel Community (CSC)

In 1952, according to this treaty a European Coal and Steel Community “CSC” established. This community also formed a higher authority which controlled the prices of natural resources and had the power to punished and fined any company going against their policies.

Success Of CSC

After the establishment this community, within 2 years these member countries were doing trades without any sanctions also making profits from their economic policies.

European Economic Community (EEC)

Due to the success of CSC in the sector of natural resources in 1957, another organization made named “European Economic Community (EEC)”. This organization also contains the same 6 countries Which were the members of CSC. According to EEC, these countries along with the trade of natural resources started doing trade in all respects. EEC ensured the member countries that they will introduce a collective policy in the industry department. It ensured that no country will make any such policy which will be productive for its own economy but has a bad impact on the other member country’s economy. But all the member countries industries could work on an equal level and pace so that they could make an equal profit. So, EEC made a collective market for the member countries and this made an economical boast towards the member countries.

Success of EEC and Britain’s Entry

Due to the success of EEC other European countries started working hard to be a part of this organization. Britain especially was trying really hard to be a part of this organization. Britain gave application for becoming the part of EEC in 1963 and 1966 but the most troublesome hurdle in the Britain’s way to EEC was France. Charles de Gaulle, who was the President of France at that time and in WW-II, Britain was the country which gave hostage to him and supported him militarily as well, was against the membership of Britain in the EEC. De Gaulle thinks that Britain has most closed relations with America and if Britain became the member of EEC than it will serve as an American agent in between the members of the treaty and this will effect the unity of other member European countries.

Britain’s Way to EEC

In 1969, after the end of De Gaulle’s regime the way of Britain in becoming the member of EEC became smooth and in 1973 Britain along with Demark and Ireland became a member of this community. This time France did not veto the application of Britain for becoming a part of EEC. In 1981, Greece and in 1986 Spain and Portugal became the member of this community. In 1990 when the East Germany gets independence than this part also became the member of EEC.

After the end of Soviet Union

After the split of Soviet Union, more and more European Countries wanted to be a part of this community so due to this a new treaty and organization has to be formed. So, in 1992 a new organization along with its new policies was formed to ease the way for other European nations to join this organization.

Formation of European Union (EU)

In 1992 in a city of Netherlands this new organization was formed named European Community (EC). This organization has a huge power to control the economic and social policies of its member countries. This community was now a part of the whole organization of European Union. After making some changes after 1st November 1993, this community start operating, and the European Union came to establish. This was one of the biggest steppingstone of Europe towards economic, social and cultural success. In this treaty it was agreed that the foreign and security policies of all the member countries will be the same and all the countries will support each other in the internal policies and affairs as well. European Union will safely guard the education, health and other rights of each European citizen (Consumer Protection). All member countries will accept and follow the rules and policies made by the EU.

European Union Flag
European Union Flag

Some Policies by European Union

One of the most important policy of the European Union was to give all the member countries citizen same European citizenship under the hood of EU. Which makes easier for the citizen of each countries to travel to any member country and work without any especial visa of requirement. Not only this they can gave vote in any of the EU country and can even run the election of any EU country regardless of their nationalities.

Formation of Euro by European Union

One of the most important policy made by European Union was the collective currency Euro. This was made so that the rate of fluctuation of Euro could not affect the economy of the member countries and the trade and economic market. But one of the most usual misconception about the Euro that it is used by all the EU members.

on This currency is not pushed on any member country, it depends the country’s will to accept the Euro in fact the standard of getting this currency as a user is also really difficult to get. The member countries who wanted to get Euro as a standard currency it is must that their annual budget deficit should be less than 3% of the GDP, government loan should be less than 60% of the GDP and long term inflation rate should also be less than 2% of the GDP and some other policies without which no country could qualify for the Euro. This is the reason that in 27 European members only 19 have Euro as a currency. Britain, which officially left the EU in January 2020, also did not take Euro as their official currency by their own will.

Conclusion of EU

In this way, Europe changes their fate from the state of war to become an economic superpower again. Now the point to be noted here is that if Europe can do that by making European Union regardless of their inherited rivalries than why not we can do that in our region and what advantages we could get after doing that and is that possible. The answer to this question is inside yourself.

How useful was this post?

Click on a star to rate it!

Average rating 5 / 5. Vote count: 1

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Click to comment

Most Popular

To Top