EU ABC's

The modern European Union has its roots in the immediate aftermath of World War II which left continental Europe devastated and the United Kingdom profoundly weakened.  The European Coal and Steel Community was created in 1950 with the short term goal of accelerating economic recovery by creating a more efficient system for producing coal and steel, two of the most critical industries for reconstruction.  The five countries that initiated the organization agreed to ignore national boundaries, regulations, quotas and tariffs and treat coal and steel as single, integrated industries.  The long term goal of the originators was to transcend the nationalism that had led Europe into two global warts in the first half of the 20th Century.  More precisely, the intent was to bind the German economy so tightly to France and the rest of Europe, and to ultimately create a shared European identity, that war would become unthinkable.

The vision of short term economic gains leading to the long term development of a common European identity based on both tangible benefits and shared liberal democratic values has remained central.  The early success of the Coal and Steel Community led to the creation of the 9 member common market in 1956 and the gradual evolution of a true European economy and the creation of common political institutions that have become the modern European Union. 

Today’s EU has 28 members all of whom participate in a common economy and some pan-European political and legal institutions, and many of whom share the Euro as a common currency.

The most salient dimension of the EU’s economy is the free transit of goods, services, and people.  There are no tariffs (taxes on goods imported from other countries) and many national regulations on product safety, quality, and standards have been replaced by EU standards.

Licensing rules for occupations from acupuncturist to zookeeper have been standardized.  A barber from Sevilla can move to Berlin and open a shop as easily as if he were merely moving down the block.  A London bank can open a branch in Brussels or Lisbon or Prague under the same terms and conditions as a Belgian, Portugese or Czech bank. 

And people can move freely.  A citizen of an EU country does not need a visa or have to go through customs to for a vacation abroad or to settle permanently n a new country. 

The EU features a common currency, the euro, but not all its members are part of the system.  Some, like the UK, prefer to keep their own currency because it gives the national government greater control over its economy and a national currency is an important symbol of sovereignty and independence.  Others, particularly the newer Eastern European members, cannot meet the eurozone’s requirements for a balanced budget and fiscal policy.

At the political level, the EU has a rather complex governance structure, with some institutions representing the governments of its member states, others consisting of representatives elected by popular vote, and others enforcing and interpreting a common legal system.

The EU has a common foreign policy which is not always consonant with its individual members’ policies, a flag, and an anthem (Ode to Joy).  However, it fails the Frank Zappa test.  The late rock artist and leader of the Mothers of Invention insisted that a real country had to have a beer.  An airline or some atomic weapons were good, but a national beer was a necessity.  There are many, many excellent beers originating in the 28 member countries of the EU, but there is no European Union brew.