European Union: Trade, Expansion, and Inter-Regional Initiatives
Inter-Regional Initiatives
European regions can establish relationships and undertake joint initiatives across national borders. Catalonia participates in two such initiatives:
1) Four Motors of Europe
Established in 1988, this initiative includes Baden-Württemberg, Catalonia, Rhone-Alps, and Lombardy. It aims to promote a shared vision in economic, technological, and cultural aspects, acting as a regional pressure group within EU institutions.
2) Euroregion
Formed in 1989, this initiative involves Roussillon, Languedoc, and Midi-Pyrénées. It focuses on promoting activities in agriculture, fisheries, tourism, and culture. The Euroregion seeks to defend the common interests of these three regions and strengthen socioeconomic ties between northern and southern Catalonia across the Pyrenees.
Foreign Trade in the European Union
Economic Europeanism
In response to economic and cultural globalization, a desire to preserve distinct identities emerged, particularly in Japan and the USA. This movement, known as Europeanism, gained momentum after World War II. The EU, with its 376 million inhabitants, stands as a major economic and commercial power, forming one of the three pillars of a global system characterized by free-market economies and pluralistic parliamentary democracies.
Foreign Trade in Goods
The EU’s average import and export ratio is 9% relative to GDP, compared to 7% for the USA and 6% for Japan. The EU’s trade with the rest of the world is shaped by a complex network of geopolitical and historical factors, including international agreements. The EU represents a significant bloc in the global exchange of goods and services.
Most of the EU’s merchandise trade occurs with developed countries. However, the EU’s merchandise trade balance with the rest of the world is in deficit, as the surplus in industrial products is insufficient to offset the deficit in energy products and raw materials.
Foreign Trade in Services
The economic significance of services is growing compared to merchandise trade. The volume of economic transactions conducted by EU companies in transportation, insurance, tourism, etc., outside the EU’s territory is equivalent to only one-third of the volume of goods transactions. However, the balance in services is positive for Europe. This has two key advantages:
- It helps offset the deficit in goods exchange.
- Depending on the type of service, it supports European technological development and competitiveness in the global market.
The EU faces challenges in the maritime transport sector, given its dependence on goods exchange. However, it enjoys surpluses in air transport and tourism. Conversely, the audiovisual sector faces a significant deficit due to strong competition from the US industry.
Another example is the research and development (R&D) sector, where the EU has a negative balance, as European companies often pay more for patents than they receive.
Expansion of the European Union
Political stability and economic strength are key factors motivating states to apply for EU membership. Unification is seen as a catalyst for peace, political stability, and economic and social progress on the continent. However, the accession process remains complex, requiring substantial investments and time.
Criteria for Membership
Any state seeking EU membership must embrace the principles of freedom, democracy, respect for human rights and fundamental freedoms, and the rule of law. The political criterion requires institutional stability and a commitment to these democratic principles.
Economically, candidate countries must have a functioning market economy and the capacity to cope with free-market competition. Prior to joining, candidate countries often sign agreements with the EU and receive financial support through programs like PHARE.
The accession process can be lengthy and challenging. Turkey, for example, signed a prior agreement in 1993 but did not apply for membership until 1987, with negotiations starting only in 2004.
The Latest Additions to the European Union
In May 2004, Poland, Hungary, the Slovak Republic, Slovenia, Estonia, Lithuania, Latvia, Cyprus, and Malta joined the EU. Bulgaria and Romania followed in 2007. With 27 member states, the European Parliament expanded from 626 to 738 members.