THE GROUP 4

Sanchit Abrol C001

EUROPEAN
Tanuj Gulati C022
Sumit Jakhar C026
Shubham Kakrania C029
Akshay Kumar C035
Parul Relia C045

UNION
EU Timeline
Evolution of a trade bloc

Free trade

Customs union

Common market

Economic union
 Design/Structure of EU and Euro

Common external
European Council A commercial policy

Overview of EU policies and the A B Free trade among

interdependences between the EU and B members

its Member States

Harmonised
Responsible for steering the strategy C economic policies
through annual overall assessments of
progress at EU and national level C D D
Free factor mobility
within the market

The EU Commission

Produces an annual growth survey and
assesses country reports and stability /
convergence programs
Issues country specific policy
recommendations and, if necessary,
policy warnings to Member State
Turmoil on international currency markets between 1968 and
1969 threatened the common price system of the common
agricultural policy, a pillar of the EU.
Euro coins and banknotes were launched on 1 January 2002 and
the biggest cash changeover in history took place in 12 EU
countries
 Advantages Disadvantages
Jobs Interest Rates are

1
Free trade and removal of non-tariff barriers have not suitable for the
helped reduce costs and prices for consumers.
Increased trade to the EU creates jobs and higher
whole Eurozone
income.
Limits Fiscal Policy
Trade Boost
2 Trade within the EU has
increased 30% since 1992 Lack of incentives

No scope for
Cutting bureaucracy
devaluation
3
Removal of customs barriers mean 60 million
customs clearance documents per year no longer
need to be completed, cutting bureaucracy and
reducing costs and delivery times

Migration
4 According to the European Commission, more
than 15 million EU citizens have moved to other
EU countries to work or to enjoy their retirement.
 Advantages of Migration
Migrants accounted for 70% of the increase in the workforce in Europe over the
past ten years.
Advantages
Cheap Labour : Migrants often do many unskilled jobs for a very little wage.
Skilled migrants are also often happy to give their services for little salary.
Some immigrants are highly skilled and talented, and they contribute to
knowledge and production for the well-being of all in that country.
Migrants contribute more in taxes and social contributions than they receive
in benefits. Labour migrants have the most positive impact on the public
purse.
Migrants contribute significantly to labour-market flexibility, notably in
Europe.
Migration boosts the working-age population.
 Impact of formation of EU on GDP from 1992-2007

Name % change
The overall boost in GDP from 1992-
2007 of the countries that joined the Slovakia 600%
EU was over $8 trillion Romania 576%
Significantly, the countries that Czech Republic 480%
showed the most positive change in Latvia 460%
their GDP were the smaller member Estonia 425%
states, who got easy access to capital, Poland 406%
labour and currency stability by
joining the EU.
Ireland 380%
Lithuania 333%
 Design of EU and Euro responsible for Greece crisis?

Monetary policy is fixed for all the

members of the EU. The fiscal policy is
independent for each member nation.

Greece: Spending on Social Welfare as per cent of GDP

30.00%
27%
26% 26% 26%
25.00% 24%

20%
20.00% 18%
17%
15% 16%
15.00%

10%
10.00%

5.00%

0.00%
1980 1985 1990 1995 2000 2005 2010 2013 2014 2015 2016
 BREXIT Impact on UK and EU

Impact on the European Union

Businesses find it costly to relocate
The UK is less attractive as a gateway to
Foreign Direct investment from UK and there is a risk the
Europe, as a base for corporate HQs and
Investment UK attempts to undercut EU on standard to
as a location for investment from Europe
attract FDI

The UK gains flexibility over industrial There could be a weakening of competition

Industrial Policy
Impact on the United Kingdom
policy, but loses the benefits from scale policy, lesser collaboration in education and
and influence in some areas research

Some countries are affected by the impact

Immigration is tightened, damaging
on remittances or diverted migration, with
Immigration competiveness, particularly of London, but
the extent of political contagion is a big
how much depends on the Brexit Model
unknown

EU trade matters more for the UK than UK

Regulatory divergence grows over time
Trade within trade for the EU, but some states with big
increasing the cost of trade, impacting on
Europe volume and the UK place in supply chains
bilateral surpluses feel a macro chill from
Brexit
 Future of EU
Positives
Economic sanctions over
Russia
Nuclear deal with Iran
Steps to reduce
macroeconomic imbalances
through frameworks such as
Stability and Growth Pact and
European Stability Mechanism
Rise of nationalism in member
states
Deteriorating geo-political
environment
EUs unpopularity with both
National governments and
their voters
Because of Syrian refugee
crisis, the concept of EU is
driven by political motives
Negatives
rather than economic motives
THANK
YOU