The Global Economic System

Question 1

what is the SEM ?

Answer 1

Single European Market

-free trade among all member states in the European Union.

Question 2

name the member states of the EU !

Answer 2

austria, belgium, bulgaria, cyprus, czech republic, Denmark, estonia, Finland, france, germany, greece, hungary, ireland, italy, latvia, lithuania, luxembourg, malta, netherlands, poland, portugal, romania, slovakia, slovenia, spain, sweden, croatia , (UK)

Question 3

what are the objectives of the EU ?

Answer 3

• facilitate free trade of goods, services, labour and capital
• maintain peace and stability within all of Europe through a common economic policy.
• improve the standard of living and quality of life of citizens
• establish common values among citizens, such as democracy, equality and human rights
• strengthen, support and enlarge the EU

Question 4

why is the EU important?

Answer 4

1. PEACE AND STABILITY
2. LARGE OPEN MARKET
3. FREE TRADE AREA
4. HARMONISATION OF LAWS
5. FUNDING
6. SINGLE CURRENCY
7. PROTECTION
8. INWARD INVESTMENT
9. EU POLICIES

Question 5

Describe the European Commission !

Answer 5

Functions:

1. propose new laws for the European Union member states
2. enforce all EU laws
3. draft and manage EU budget
4. represent the EU internationally

power to:

1. bring individuals and organizations to the EU courts
2. impose fines on those who don’t follow EU regulations
3. reprimand states that don’t fulfil their obligations under EU law

Question 6

Describe the European Parliament !

Answer 6

functions:

1. legislative, budgetary, executive control
2. representing the citizens of Europe who have been elected to the parliament to represent their interests in discussions with other EU institutions
3. vetting and appointing the members of the commission
4. protecting the rights of the people of the EU member states
5. debating issues that are of concern to all member states (e.g. pollution, terrorism, drug trafficking, money laundering, refugees, waste disposal, consumer protection.)

Question 7

Describe the Council of Ministers!

Answer 7

…most powerful institution, main decision-making body of the EU, sets all the key economic and political objectives and decisions of the EU.

functions:

• approving and overseeing legislation
• co-ordinating policies
• concluding international agreements
• approving the EU budget

Question 8

Describe the European Court of Justice !

Answer 8

functions:

• enforcing laws
• enforcing EU policies
• passing judgement
• taking action where laws and policies are broken/ not implemented
• interpreting EU law
• ensuring the law is observed
• adjudicating on disputes
• writing laws

Question 9

Describe the European Court of Auditors !

Answer 9

functions:

1. implementing the EU budget
2. spot checks on member states to ensure the budget is used for the purpose intended.
3. preparing an annual budgetary report.

Question 10

Name 5 EU institutions !

Answer 10

1. the European Commission
2. the European Parliament
3. the council of ministers
4. the European court of justice
5. the European court of auditors

Question 11

what is the Common Agricultural Policy? (CAP)

Answer 11

… a common development plan for agriculture for all member states and accounts for over 45% of the EU budget.

it was introduced to make the EU self-sufficient in food and to improve farm incomes.

Question 12

what are the objectives of the Common Agricultural Policy (CAP) ?

Answer 12

1. fair and efficient standards of living for the agricultural community
2. a single market where all agricultural produce is allowed to move freely across the EU without any restrictions or barriers.
3. products from the EU are to be given preference over imported products
4. espenes and spending relating to the application of the CAP are borne by the EU budget
5. stabilise agricultural markets and regulate prices
6. reasonable prices and quality choice for consumers
7. grants to ensure quality of produce
8. a single farm payment or single payment scheme (SPS) for EU farmers, independent from production
9. respect of environmental, food safety, animal and plant health and animal welfare standards.

Question 13

what is the Common Fisheries Policy ? (CFP)

Answer 13

… a set of common rules that apply to the fishing industry in each EU member state.

it was officially introduced in 1973 and updated in 2003.

Question 14

what are the objectives of the Common Fisheries Policy ? (CFP)

Answer 14

1. prevent overfishing and preserve and ensure fish stocks into the future
2. EU decides what quantity (quota) of various types of fish can be caught by each member state in certain waters (TAC)
3. the CFP placed restrictions or bans on certain types of fishing
4. all fishing boats on EU waters must be licensed to fish
5. each member state agreed to reserve a 19km zone around its coast for its own fishing fleet.
6. member states are responsible for monitoring fishing activities and ensuring that all the rules and fisheries policy are applied
7. aims to safeguard the likelihood of those involved in the fishing industry and ensure the economic viability of the European fleets
8. aims to protect the marine environment in every manner
9. provides funding to protect and promote the fishing industry.

Question 15

describe the competition policy !

Answer 15

…also called monopolies commission

… the aim of the competition policy is that consumers get a choice of quality goods and services at reasonable prices.

… investigate and examine potential/ proposed merges/takeovers between companies.

Question 16

why is it good for the economy to promote competition?

Answer 16

more innovative products,
better after sale service,
better prices,
better products,
better standard of service,
increased research and development

Question 17

what are the objectives of the competition policy?

Answer 17

1. fair and free competition between firms in the SEM.
2. ensures better services and lower prices to consumers
3. eradicate cartels and prevents monopolies
4. mergers ,takeovers and strategic alliances must be approved by the relevant competition authority in each country.
5. the commission closely monitors how much aid member governments make available to state-owned or other businesses.

Question 18

what is the European structural policy?

Answer 18

… a fund put in place to develop areas that are seen as being underdeveloped.

recipients of this in the past have been southern Italy, the boarder in Ireland and western regions of Ireland, wallonia in Belgian …

building roads, grants to companies to set up there, funding to set up education facilities in these regions etc.

Question 19

what are the objectives of the European structural policy?

Answer 19

1. promoting the development and structural adjustment of regions whose development is lagging behind
2. conversion of declining industrial regions
3. combating long-term unemployment
4. integration of young people into working life
5. adjustment in production, processing and marketing structures in agriculture and forestry and development in rural areas.