MS: member states
ECB: European central bank
- Supranational organization corresponding to a federation of 27 MS
- Thelargest confederation existing in the world and developing many links in terms of legal and commercial activities.
- Based on the principal of a common market
- The main principal is to organize a freerelationship between the different MS.
The specificities of the common market are developed through a customs union, a common currency system under the control of the ECB, but also a commonagricultural policy and trade policy.
EU also means the possibility to move freely across the borders according to a common justice and a foreign policy.
With the Schengen agreement for an individual thereis the possibility to move and to set up without restriction in any EU country.
The treaty of Amsterdam has also established controls over the free circulation and restrictions for individuals withcriminal records (=casier judiciaire).
Finally the UE must be seen as a global market where not only individuals but also investors, firms, can develop:
o A dominant position giving toEU a commercial and economic strength.
We can also compare the EU system to the USA federation with the same organization and institutions.
The objective is to put the European and Americanmarkets on the same level and to develop a common policy between the two continents.
However, the development of the EU has been different from the USA and its history is developed through the followingelements
Chapter 1: European Community and European Union
a) European communities (EC)
1945: The main objective was to bring peace to Europe and to create a kind of global Union betweensome states.
1946: The English Prime Minister, Churchill, had the idea to set up the United States of Europe.
In the first place the idea was to control the principal elements of European energy...