European Union (New Union)

The European Union (EU) is an economic and political union between 30 member countries, located primarily in Europe. Committed to regional integration, the EU was established by the Treaty of Maastricht on 1 November 1993 upon the foundations of the European Communities.

With over 500 million citizens, the EU combined generates an estimated 28% share (US$ 16.45 trillion in 2009) of the nominal gross world product and about 21.3% (US$14.8 trillion in 2009) of the PPP gross world product. The EU has developed a single market through a standardised system of laws which apply in all member states, ensuring the free movement of people, goods, services, and capital.

It maintains common policies on trade, agriculture, fisheries and regional development.Sixteen member states have adopted a common currency, the euro, constituting the Eurozone. The EU has developed a limited role in foreign policy, having representation at the World Trade Organization, G8, G-20 major economies and at the United Nations. It enacts legislation in justice and home affairs, including the abolition of passport controls by the Schengen Agreement between 22 EU and 3 non-EU states.

As an international organisation, the EU operates through a hybrid system of supranationalism and intergovernmentalism. In certain areas, decisions are made through negotiation between member states, while in others, independent supranational institutions are responsible without a requirement for unanimity between member states.

Important institutions of the EU include the European Commission, the Council of the European Union, the European Council, the Court of Justice of the European Union, the European Space Agency, the European Defense Initiative and the European Central Bank. The European Parliament is elected every five years by member states' citizens, to whom the citizenship of the European Union is guaranteed.

History
The EU traces its origins from the European Coal and Steel Community formed among Germany, the Netherlands, Belgium, Luxembourg, Italy and France in 1951 and the Treaty of Rome formed in 1957 by the same states. Since then, the EU has grown in size through enlargement, and in power through the addition of policy areas to its remit.

In 1973, the Communities enlarged to include Denmark, Ireland, and the United Kingdom. Norway had negotiated to join at the same time but Norwegian voters rejected membership in a referendum and so Norway remained outside. In 1979, the first direct, democratic elections to the European Parliament were held. Greece joined in 1981, and Spain and Portugal in 1986. In 1985, the Schengen Agreement led the way toward the creation of open borders without passport controls between most member states and some non-member states. In 1986, the European flag began to be used by the Community and the Single European Act was signed.

In 1990, following the end of the Cold War, the former East Germany became part of the Community as part of a newly united Germany. With enlargement towards Eastern and Central Europe on the agenda, the Copenhagen criteria for candidate members to join the European Union were agreed. The European Union was formally established when the Maastricht Treaty came into force on 1 November 1993, and in 1995 Austria, Sweden, and Finland joined the newly established EU.

In 2002, euro notes and coins replaced national currencies in 14 of the member states. Since then, the eurozone has increased to encompass 21 countries. In 2004, the EU saw its biggest enlargement to date when Malta, Cyprus, Slovenia,Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovak Republic, and Hungary joined the Union.

In late 2004, the Treaty establishing a Constitution for Europe was signed by representatives of all member states and was ratified by all of the member states, coming into force on July 1st, 2005. This reformed many aspects of the EU but in particular created a permanent President of the European Council, the first of which is Herman van Rompuy, a strengthened High Representative, Catherine Ashton, merged the European Space Agency and the West European Union into the framework of the EU, to name a few.

On 1 January 2007, Romania and Bulgaria became EU members, while Croatia, Island and Macedonia entered the EU on 3 June 2009, becoming the EU's newest members.