The European Union

The European Union
University of Phoenix

The European Union
The banding together of nations to form an economic and political stable is not a new concept. However, the European Union is unique in that its members encompass most of the European continent. “The EU has delivered half a century of peace, stability and prosperity, helped raise living standards, and launched a single European currency, the euro” (European Union, n.d., para. 5). The European Union also maintains a strong relationship with the United States and other countries not located in Europe, fostering international ties. As the European Union faces an unprecedented financial crisis, the further integration of European countries is essential to its development and survival.
Purpose
Formed after World War II, “the first steps were to foster economic cooperation: the idea being that countries who trade with one another become economically interdependent and so more likely to avoid conflict” (European Union, n.d., para. 2). Initially, the EU only had six countries affiliated with it. Today, the EU boats 27 members. Everything the EU does is founded on treaties that are democratically created by the members of the union. Members are legally and morally bound to these treaties. Borders between nations in Europe have also been opened to promote free travel and make it easier for international work.
Financial Tools and Institutions
The primary financial institution of the European Union is the European Centralized Bank. “In accordance with Regulation ECB/2008/32 of 19 December 2008 concerning the balance sheet of the monetary financial institutions sector, the ECB maintains and regularly updates a list of Monetary Financial Institutions” (European Centralized Bank, n.d., para. 7). This list contains information on all investments made on behalf of the European Union by the ECB. Headquartered in Frankfurt, Germany, the ECB is the central bank for the euro and administers monetary policy for the...