European Union Essay

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Table of Contents Title | Page # | Political Profile | 4 | Economic Profile | 7 | Major Indutsry | 10 | EU’s Trade Involvement | 14 | Growth Forecast | 16 | Continuing Risk | 18 | Work Cited List | 21 | Introduction The European Union is a trade organization that was established at the end of the Second World War. The EU consists of 27 member states and is the largest exporter and importer of goods and services across the world. The union has developed into a single market with a common currency called the Euro. Currently, the European Union has experienced a great deal of adversity towards their economy. The immense and uncontrolled spending of governments in the European Union, huge debt, inflation and more has created a massive risk the continuing growth of the European Union. The European Union has been spending money that they don’t have by borrowing heavily. At the same time economic growth in many of the European countries has slowed down significantly. The bond ratings agencies have started to look down on the government debt of these troubled countries, which has reduced the value of the bonds that investor’s hold and simultaneously driven up interest rates making it expensive for these countries to borrow additional funds in order to pay their current expenses. This situation has resulted in the need for a series of fiscal bailouts to prevent these countries from failing to pay their debts or getting into an even worse situation. Economic problems in these EU countries will eventually affect markets across the globe if actions are not taken to help stabilize the situation. Political Profile The government of the European Union was first founded on November 1st, 1993. The major political parties in the European parliament are European People's Party-European Democrats, Socialist Group, Group of the Alliance of Liberals and

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