European Union

Question 1

What are the common values of the EU?

Answer 1

Respect for human dignity, freedom, democracy, rule of law, human rights, non-discrimination, tolerance, justice and solidarity

Question 2

What are the four freedoms:

Answer 2

free movement of goods, service, people and capital

Question 3

Aim of the EU?

Answer 3

to promote peace, its vaules and the well-being of its people

Question 4

Explain the 1950s in EU history

Answer 4

It was the period of post-war reconstruction

The Schuman declaration on the 9th of may 1950, proposed to united the coal and steel industry of france and Germany

Later developed to the European Coal and Steel Community with six members, france, germany, belgium, Italy, Luxemburg and the netherlands

1957 –> Rome Treaties, European Economic Community and Euratom

Question 5

Explain the 1960s in EU history

Answer 5

The time for laying the groundwork:

European Free Trade association (EFTA) and the Common Agriculture Policy was created

Abolition of custom duties

Question 6

Explain the 1970s in EU history

Answer 6

Time of expansion, Denmark, Ireland and the UK joined

The first election of the European Parliament

Question 7

Explain the 1980s in EU history

Answer 7

Southern countries joined, Spain, Greece and Portugal

The newly reunified Germany joins, east now apart of the union.

The Rome Treaty was remodified to the Single European Act

Question 8

Explain the 1990s in EU history

Answer 8

Maastricht Treaty - the single european market

finland, sweden and austria joins

Amsterdam treaty in 1999

Question 9

Explain the 2000s in EU history

Answer 9

12 countries introduce the euro in 2002

Central and eastern countries join, now 28 members

UK leaves in 2020, 27 members in total

Question 10

Explain the features of the European Parliament

Answer 10

705 members elected by universal suffrage, election every 5 years

Legislative power with the council

Monitors the budget of the EU

Question 11

Explain the features of the European Council

Answer 11

Council consists of the heads of states, and the president of the Commission

Provides the EU with political guidance and defines the political direction and priorities

Question 12

Explain the features of the Council of the European Union

Answer 12

Co-legislative with the parliament

consist of ministers from the member states, chosen according to the agenda of the council

Rotating presidency each month

Question 13

Explain the features of the European Commission

Answer 13

Proposes and implements laws

27 commissioners, one from each member, and the President Ursula von der Leyen, and also vice-presidents

Question 14

Other important EU institutions and bodies:

Answer 14

• European court of Justice
• European Central Bank
• European Investment Bank
• European Economic and
  Social committee
• European Committee of the
  Regions

Question 15

Why was the EU created?

Answer 15

The EU was created in the aftermath of WWII. The
first steps were to foster economic cooperation:
countries that trade with one another are
economically interdependent and will thus avoid
conflict.

Question 16

What was the Maastricht treaty?

Answer 16

• In 1993, the Maastricht Treaty was signed, replacing the EC with the European Union (EU).
• Maastricht Treaty established:
  – Common Foreign and Security Policy

– Coordinated policy on asylum, immigration, drugs, and terrorism

– EU citizenship, which allowed people to travel freely throughout the EU

– Established a timetable for an economic and monetary
union

– Specified the economic and budgetary criteria which would determine when countries were ready to join

Question 17

What doe the stars in the EU flag symbolize?

Answer 17

unity, solidarity and harmoy

Question 18

What is the EU motto?

Answer 18

United in diversity

signifies how europeans have come together, in the form of the EU, to work for peace and prosperity

Question 19

Political component of the EU?

Answer 19

The EU actively promotes human rights and
democracy and has the most ambitious emission reduction targets for fighting climate change in the world

Thanks to the abolition of border controls between EU countries, it is now possible for people to travel freely within most of the EU. It has also become much easier to live and work in another EU country.

Question 20

What is the European Monetary Union?

Answer 20

The Economic and Monetary Union involves the coordination of economic and fiscal policies, a common monetary policy and the euro as the common currency

Launched in 1999, entered into force in 2002

Question 21

Advantages of a single currency in the EU?

Answer 21

Eliminating fluctuating exchange rates and exchange costs

Because it is easier for companies to conduct cross-border trade and the economy is more stable, the economy grows and consumers have more choice

encourages people to travel and shop in other countries

A single currency also allows countries with
smaller economics to borrow more money

Question 22

Disadvantages to the single currency?

Answer 22

Not suited for the individual’s country

Larger economic fluctuations

Inability to devalue currency

Moral hazard in the legislation and execution of government budgets

loss of economic identity

Question 23

What is monetary policy?

Answer 23

The term “monetary policy” refers to what a central bank does to influence the amount of money and credit in the economy

Question 24

What is inflation?

Answer 24

sustained increase in the general level of prices, which is equivalent to a decline in the value of money

if the supply of money and credit increases too fast, the result can be inflation

Question 25

Who manages monetary policy in the EU?

Answer 25

the European Central Bank, their goal is to maintain price stability and keep inflation lower

it also sets a number of key interest rates for the Euro area

The ECB does not interfere with each countries taxes

Question 26

What is the Eurozone crisis?

Answer 26

When countries with weaker economies joined the euro, they were allowed to borrow more money because they were viewed as a safe borrower. But, due to poor government planning, countries borrowed large sums of money to pay for projects, accumulating huge debts.

After the 2008 financial crisis, the slowdown made it clear that Greece had too much debt and would not be able to repay - this affected the entire eurozone

therefore all eurozone countries were seens as a credit risk and other countries would no lend money to the Eurozone

The problem of Greece also spread to portugal, ireland, spain and italy - their debts are held in the banks of Germany and france

Question 27

Solutions to the Eurozone crisis:

Answer 27

Germany could bailout the weaker economies

ECB can act as the lender of last resort bailout and print money - not worked well in the past.

ECB is afraid that by giving money to the indebted countries, they will cause inflation to skyrocket –which is counter to their stated mission of keeping inflation low