The European Union

The European Union

Chapter 6, Lesson 2

Overview

 The origins of the European Union
 The countries that are members of

the European Union
 The political and economic structure

of the European Union
 The importance of the euro as a

world currency

Chapter 6, Lesson 2

The Origins of the European Union

 The European Union began in May 1950
with the Schuman Plan

 Put France and Germany’s coal and steel
industries under joint control

 If the two countries’ defense industries were
merged, they presumably couldn’t go to war
with each other

 The European Coal and Steel
Community established free trade
among its six members

Chapter 6, Lesson 2

The Origins of the European Union,

cont.

 In 1957 the Treaty of
Rome established
the European
Economic
Community (EEC) or
Common Market

 The Common
Market was
essentially a
customs union

Chapter 6, Lesson 2

R. Norman Matheny / © 1992 The
Christian Science Monitor

The Countries that Are
Members of the European Union

 The Common Market
began with six members

 France, Germany, Italy,
Belgium, the Netherlands,
Luxemburg

 Expanded in1973 with
Britain, Denmark, and
Ireland

 1980s: Greece, Spain, and
Portugal

Chapter 6, Lesson 2

Melanie Stetson Freeman / © 2004
The Christian Science Monitor

The Countries that Are Members
of the European Union, cont.

 In 1993 the Treaty of Maastricht came
into effect, changing the EC to the
European Union

 1995: Austria, Finland, and Sweden
 In 2004 the EU added 10 members:

 Czech Republic, Hungary, Poland, Slovakia,
Estonia, Latvia, Lithuania, Malta, Cyprus,
and Slovenia

 2007: Romania and Bulgaria

Chapter 6, Lesson 2

The Political and Economic
Structure of the European Union

 The European
Parliament

 Passes laws based on
proposals from the
European Commission

 The Council is the
EU’s main decision-
making body

 The European
Commission is the
EU’s executive organ

Chapter 6, Lesson 2

Andy Nelson / © 2000 The Christian
Science Monitor

The Political and Economic Structure
of the European Union, cont.

 The Court of Justice ensures that EU law is
interpreted and applied the same way in all
countries

 The European Central Bank (ECB) manages
the euro

 The European Investment Bank, another EU
bank, makes loans for many projects within the
EU

Chapter 6, Lesson 2

The Importance of the Euro as a
World Currency

 Sixteen countries
currently use the euro
as their currency

 People often refer to
this group as the “euro
zone”

 Using a common
currency means people
and businesses don’t
have to pay the cost of
exchanging money

Chapter 6, Lesson 2

Andy Nelson / © 2000 The Christian
Science Monitor

The Importance of the Euro as a
World Currency, cont.

 Some countries don’t
use the euro because
they haven’t yet met
the criteria to join

 The biggest EU
member outside the
euro area is Britain

 After the dollar, the
euro is the No. 2
reserve currency

Chapter 6, Lesson 2

Robert Harbison / © 1990 The
Christian Science Monitor

Review

 The European Union began on 9 May 1950 with
the Schuman Plan that put France and
Germany’s coal and steel industries under joint
control

 The European Coal and Steel Community
established free trade among its six members

 The Treaty of Rome that established the
European Economic Community (EEC) or
Common Market

 In 1993 the Treaty of Maastricht came into
effect, changing the EC to the European Union

Chapter 6, Lesson 2

Review, cont.

The Council is the EU’s main decision-
making body

The European Commission is the EU’s
executive organ

16 countries—the “euro zone”—currently
use the euro as their currency

Using the common currency means
people and businesses don’t have to pay
the cost of exchanging money

Chapter 6, Lesson 2

Summary

 The origins of the European Union
 The countries that are members of the

European Union
 The political and economic structure of

the European Union
 The importance of the euro as a world

currency

Chapter 6, Lesson 2