by Paul Lines

Created on: June 28, 2006   Last Updated: October 03, 2010

The original objective of the formation of the European Union was to improve conditions for trade, both within the member states and to create a regional bloc that would become more competitive within the expanding global environment. However, since its inception, the number of member states has expanded considerably, following the inclusion of countries from the former Soviet bloc, and the objectives have been expanded to include political as well as commercial control of these states. These developments have served to fuel the debate as to whether the formation of the EU was a good idea in the first place. To be fair, in attempting to address this debate it is important to first assess the benefits and disadvantages that result from membership of the EU.

* Advantages

From a trade aspect, being a member of the EU has a number of advantages. This is especially the case as a result of the growth of the size of multinational corporations following the advances in globalisation. A number of these corporations have achieved a economic position and power that is greater than many small and emerging countries, including those within the EU. being protected by a regional economic force therefore provides these countries with the ability to ensure that such corporations cannot create economic damage through the manipulation of competitive forces within their industry sectors.

Another issue that many of the individual European countries have been experiencing, including the UK and Germany which were formerly strong economic entities is that their position in world politics and economic power has been diminished, not only in relation to the US but also in relation to the rapidly expanding economies in Asia, predominantly India and China. Perhaps it was felt that the only effective voice in global commerce was by creating a regional bloc that could compete at the same level as these dominant world powers.

The final advantage was brought sharply to life with the onset of the 2007 financial crisis. Many of the smaller member states in the EU, including Greece, would have found themselves in an impossible and disasterous position had they not been able to rely upon the support of the EU. With this assistance many of these countries would have been left to the mercy of the international financial markets, which would have created far a far deeper crisis for their national economy and their population.

* Disadvantages

Perhaps the most important disadvantage

• 1
• 2
• Next Page >>