European Union Economic Evolution and Social Challenges

Demographic and Social Challenges in the EU

The challenges of the EU's aging population are significant; birth rates in the EU are falling while life expectancy increases daily. Consequently, the working population must support a growing number of pensioners. EU countries are currently changing their systems of social protection. Furthermore, much of the population growth and unemployment trends in the EU are attributed to immigration.

Global Competitiveness and Environment

The emergence of developing economies in the global market, characterized by much lower production costs, requires measures to maintain the competitiveness of enterprises and employment. Efforts have focused on improving the skills of the workforce and implementing new technologies. Environmental protection measures are much greater than they were a few decades ago. Regarding climate change and global warming, according to the Kyoto Protocol, the EU aimed to reduce its overall emissions of greenhouse gases by 8% between 2008 and 2012.

European Union Economic Power

Since the 2004 enlargement, the European Union's economic power has grown significantly; its GDP exceeds that of the U.S. At least 60% of this GDP is generated by the services sector. However, significant differences remain between the wealthy West and poorer regions. Trade with the rest of the world accounts for approximately one-fifth of both imports and exports. Trade between member countries represents two-thirds of all trade. The EU stands as the world's leading exporter and the second-largest importer.

The Historical Origins of Europeanism

Europeanism experienced a remarkable boom starting in the late nineteenth century, supported by Universal Congresses and the Hague Conferences. A major breakthrough occurred after the First World War, which highlighted the need to move towards a supranational union. European governments recognized that the future of Europe required collaboration between states. Thus, many entrepreneurs and financiers supported the Pan-European Union movement, founded in Vienna in the early 1920s.

Creation of the ECSC and Council of Europe

The European movement revived strongly after the Second World War. The Hague Congress in 1948 brought together supporters of continental unification and the creation of the Council of Europe. One of the first results of this institution was the European Convention on Human Rights (1950). In 1951, the European Coal and Steel Community (ECSC) was created. The member countries included:

• France
• West Germany
• Belgium
• Italy
• Luxembourg
• The Netherlands

These nations agreed to the free movement of goods and delegated management to a common body.

The Treaty of Rome and the EEC

On March 25, 1957, the six ECSC members signed the Treaty of Rome, which established the European Economic Community (EEC) and the European Atomic Energy Community (EURATOM). The goal was to develop a common economic policy with exclusive competence in transport, agriculture, and foreign trade. This led to the Common Agricultural Policy (CAP) and the improvement of transport networks. As an alternative to the EEC, the European Free Trade Association (EFTA) emerged in 1960, focusing strictly on a free trade area.