The European Union (EU) SS6CG5 The student will explain the structure of modern European governments. b. Describe the purpose of the European Union and the relationship between member nations. Vocabulary 1. European Union 2. Euro 3. Tariff 4. Gross Domestic Product (GDP) 5. currency 6. per capita Members of the EU Austria Belgium Bulgaria Cyprus Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom What is the purpose of the EU? • Its members can work together for advantages that would be out of their reach if each were working alone. • When more countries work together, they involve more people, more money, and more land area. • This makes smaller countries of the EU more competitive in the world market. Comparing the EU and the U.S.A EU United States Land Area (approximate square miles.) Population (approximate) 1,500,000 3,700,000 500,000,000 309,000,000 Gross Domestic Product (GDP) $14 trillion $13.5 trillion Gross Domestic Product per Capita (person) $28,213 $43,444 Currency “money” • Most members of the UN use the Euro. • The Euro is to the EU as the Dollar is to the USA. • What specific advantages do you think members of the EU have by sharing the same currency? Advantages • Trade between the countries become much easier and less expensive. • Citizens do not have to exchange currency to spend money in other EU countries. • Consumers and businesses can compare prices more readily, which stimulates competition. Other Advantages of the EU • • • • • Improved trade Education Farming Industry For example, there are no tariffs between countries in the EU. This make a large free-trade zone. • Citizens can live and work in any other UN nation. Limitations of the EU • The EU does not handle all the government business for the member countries. • Each country makes it own laws, has its own military, and elects its own leaders. • Do you think these points are an advantage or disadvantage? Vocabulary Review A. An economic and political 1. European grouping of countries in Europe. Union(EU) B. Total value of the goods and 2. tariff services produced by a country in 3. gross domestic a given time period product (GDP C. A fee imposed by the government 4. Euro on imported goods and services. 5. per capita D. The common unit of currency used by most EU countries E. For each person Questions • What is the purpose of the European Union?