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A unified organization of 27 member countries, with authority over their political, economic, and social policies

The European Union (EU) is a unified international organization that governs the economic, political, and social policies of 27 member states. Originally formed with the desire to achieve peace in Europe, current EU policies are tailored to ensure the free movement of people, goods, services, and capital among its member states.

The European Union was built with the aim of ending frequent wars among neighboring countries following the Second World War. In 1951, the European Coal and Steel Community (ECSC) started uniting nations to achieve peace.

The six founding countries of the EU are:

The Treaty of Rome was signed in 1957, creating the European Economic Community, or a common market. It was followed by a period of economic growth a result of lowering trade restrictions among member states.

The EU experienced continued expansion ever since, with the fall of communism and the Berlin Wall supporting a closer-knit Europe. In 1993, the Single Market agreement was completed, allowing four types of freedoms the movement of goods, services, people, and money.

As more members joined the EU, it grew from a community of six member states to 27 member states.

To be a part of the EU, applicant countries must meet certain conditions, known as the Copenhagen criteria. The key criteria are listed below:

Following the exit of the United Kingdom in early 2020, there are now 27 remaining member states of the EU.

The European Union oversees three main institutions that are involved in legislation:

The European Parliament is elected by the EUs citizens and is responsible for law-making, supervision, and budget establishment.

Represents the governments of each of the EUs member states, with one minister from each state. Responsible for coordinating policies, adopting EU laws, and voicing the opinion of member states.

The EUs politically independent executive arm, responsible for proposing and enforcing legislation, managing policies, allocating budgets, and representing the EU internationally.

The EU is the largest trading power and the largest single-market area in the world. In 2019, the EU posted a GDP of $15.59 trillion, only behind the United States in terms of economic size.

Free trade within the EU was one of the unions foundational rules. Trade among member states is completely free, allowing the exchange of goods and services across borders without any tariffs or quotas.

Besides free trade among member states, the EU also promotes the concept of open economies in foreign trade. The EU also signed several trade agreements with a number of countries, including:

With each trade agreement, the EU aims to either cut or remove tariffs, making the cross-border flow of goods and services easier for exporters and importers.

The EUs top 10 trading partners:

In 2019, the EUs five largest exports were:

The EUs five biggest imports were:

In addition, countries in the EU are the largest importers of cocoa beans, which explains the Netherlands and Germanys prowess in the chocolate industry and the high per-capita chocolate consumption across Europe.

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European Union - Overview, History, Membership, Insitutions