Get the facts on the EU

Since the Euro is definitely a major player in the forex market, it couldn’t hurt to learn some basic facts about the economy it represents, i.e. the European Union.

The European Union was built out of the framework of the old European Community and was officially established in 1993. The union as a whole is today the largest economy in the world with 30% of the global gross product, although the US still holds the top slot for largest national GDP.

The concept behind the original European Community was to establish a single economic market by agreeing on a system of standardized laws and practices. With the foundation of the EU this became a reality, along with Europe becoming a united political power. This policy mandates that there be no tariffs and border controls between member states. With these internal trade obstacles removed, the EU became the largest exporter in the world. It also didn’t hurt to have a single currency in the Eurozone states, which eliminated the headache of currency exchange.

Similarly to the US, the EU is a post industrialized economy which means that most of the GDP is brought in by the service sector. The other major industry in Europe, thanks to its long and glorified history, is tourism, with France topping the list as the number one tourist destination in the world.

It’s not however all good news for the EU, as it seems that serious concerns are now arising over the unions dependency on imported energy. The Europeans are currently trying to overcome the problem by implementing infrastructures for alternative energy production.

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