European Business The European Union (EU) is a political and economic entity and confederation composed of 27 member states located in Europe. Its origin can be traced back to the European Steel and Coal Community (ECSC) and the European Economic Community (EEC), formed by six nations in 1958 after the Rome Treaty of 1957…
The most important institutions of EU are the Council of the European Union, European Commission, and the Court of Justice of the European Union, European Council and the European Central bank. These institutions play a vital role in ensuring that the policies and matters affecting the EU member states are taken care of (Nelson et al. 2012 P.1-5). Apart from the growth of EU member states, the Union has also undergone a number of significant changes since its formation in 1957. The most important changes, which have been witnessed, are the Single European Act of February 1986 and the Maastricht Treaty of February 1992, which led to the establishment of the Euro. The objective of this paper is to explore the importance of the Single European Act of February 1986 and the Maastricht Treaty of February 1992 and their impacts on the UK economy and business. The Current Problems in the Eurozone and the Response of EU Institutions The Eurozone has faced a lot of challenges over the recent years. For instance, what begun as a debt crisis in Greece towards the end of 2009 has evolved as a big economic crisis in Eurozone, which has threatened the economic stability in Europe and the world at large. In fact, some economic analyst views the Eurozone as the biggest threat to the economy of the United States according to Nelson et al. (2012 p.1). At least four major problems related to economic challenges have been identified with the Eurozone. These include weakness in the European banking system, high levels of debts and public deficit in Eurozone nations, persistent trade imbalances within Eurozone and the economic recession as well as high rates of unemployment in Eurozone countries. High level of public debts in Eurozone countries (periphery) The problem of high level of debts in some Eurozone countries has raised a lot of concerns as to whether these countries will default on these debts. These concerns arose after high debt levels in some countries in Eurozone periphery increased immediately after joining the eurozone over the past decade followed by the global financial meltdown of 2008-2009, which further strained the public finance. As a result, the worst affected countries such as Ireland, Greece and Portugal had to be bailed out by the Eurozone governments and IMF in order to pay off these debts. However, even after the bailout, a country like Greece is still seeking for ‘haicuts’(losses on bonds held by private creditors. Portugal is also argued to be considering restructuring its debt. Italy and Spain are also grappling with the problems of debts, which have seen many investors becoming increasingly nervous (Nelson et al. 2012 p.2-4). Secondly, weakness in the Eurozone banking system is raising a lot of concerns about the levels of public debts. The ongoing concerns regarding the crisis have triggered capital flight from banks among some Eurozone nations, and some banks are now reported to be experiencing a lot of difficulties to borrow in capital markets. Furthermore, analysts argue that European banks have insufficient capital to absorb losses on their holdings of autonomous bonds in case any of the Eurozone country defaults (Nelson et al. 2012 p.2-4). The third problem experienced by the Eurozone concerns lack of growth and high unemployment in Eurozone member states. For instance, A survey conducted by the IMF in January 2012 downgraded the ...
Cite this document
(“European Business Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.net/other/10581-european-business
(European Business Essay Example | Topics and Well Written Essays - 1500 Words)
“European Business Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.net/other/10581-european-business.
European Union was established for the welfare of the member countries. The standard of living of the people varies between them. This is the important difference to strike the correct balance for the many problems that confront the EU. Immigration is one such volatile issue.
Federal approach to government enhances the unity amongst the provinces. It provides a way to communicate nationalism more strongly than the autonomous units operating in complete isolation. True union in terms of federal approach can be described by a hypothetical name termed by writers and researchers as United States of Europe (USE).
Looking at the overall EU business exports, the following figure shows a major reduction in proportion of businesses that exported in 2006. This was mainly because of the weakened export opportunities within the EU. Poland was the only country which showed no change in export patterns which is reflected in the benefits it received in its run-up for the EU accession (Thornton 2006).
In fact, the crisis has augmented the gap between the resilient core and susceptible peripheral member countries. This paper shall discuss how the institutional structure of the Eurozone got agreed, in such a way that it became unprepared, to meet the challenges posed by the recession since 2008.
(England (which had incorporated Wales in the 16th century) and Scotland have had the same monarch since 1603, when James VI of Scotland succeeded to the English crown as James I; the kingdoms were formally united by the Act of Union in 1707. An Act of Parliament joined Great Britain and Ireland in 1801, but the Irish Free State (later the Republic of Ireland) broke away in 1921.
It has created enormous opportunities for competitive Business enterprises.
Like other Businesses Greeting cards Business and related services have tremendous opportunities to grow and expand in the lucrative single market of EU. Burton International Ltd.
Of these advantages, one of the most important advantage can be termed as the economic aid and nurturing of the member states. Though there are, like always, twos sides of this coin too, most argue that the economic integration has
BOP encompasses goods, services and income, transfers such as, gifts and pension as well as financial claims and liabilities. BOP is, thus, an important tool for formulating national and international economic policy (Economics.Help, 2014).
The UK has faced a
d certain comparative advantages as well as absolute advantages for the countries that further contribute to the economic development of individual economy within the union. It has been driven with the objective to retain these comparative benefits in the global platform that EU
14 Pages(3500 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic European Business for FREE!