EU Economy Dissertation Example | Topics and Well Written Essays - 3000 words

EU Economy - Dissertation Example This paper therefore seeks to help Britain in coming up with a valid decision as to whether they should leave the EU or stay. It will therefore address the current economic climate of the EU and bring out in an unbiased way the good and the bad. It will also look at the improvements in the EU economy in the later years, and come up with a conclusion on the future of the European Union. It is therefore left upon Britain to make a decision whether to stay or leave. Improvement of the European Union situation through the joining of successor states The European Union has grown hugely since the 27 countries joined. It has become a major trading block with a GDP higher than the USA. The GDP in 2012 was 12.894 trillion euros as compared to the USA which had a GDP of 16.566 trillion dollars. This was achieved when twelve new countries joined in 2004 and 2007. The union is now seeking to sustain economic growth by investing in research energy transport and to reduce further environmental imp acts on the European economy (Europa, 2012) Due to the enlargement of the European Union and the countries joining the European Monetary Union it has currently become the world’s largest exporter and the second largest importer. It enables and is responsible for 20% the world exports and imports. The EU currently accounts for two thirds of the EU trading since EU trades among the EU countries. Apart from EU other trading partners are USA and China. The United States is EU’s largest trader followed by China. Despite these achievements EU’s unemployment through the years has increased which now stands at 12% (Orlandi, 2012). Over the years employment in agriculture and industry has reduced while employment has increased in the service and commercial sectors. Infrastructure in the EU is at good standards and it is at per with other first world countries. Road is the main means of transport with three quarters goods and people transported through EU’s roads. Research and development is also one of the main things that EU majorly invests in, this is a strategy to make it more competitive. The investment in research and development is not at per with US and Japan but the EU intends to do bring it at per. The EU depends on imports for more than 50% of its energy needs. It is trying to use energy more efficiently and is striving to use renewable energy for 20% of its energy needs by 2020. Some of the energy needs it’s going to use include wind, sun (Europa, 2013). The EU has been facing a recession like the rest of the world but now it is surely and slowly coming out of it. This is especially seen in its financial markets where risk premia has decreased especially for sovereigns and banks (Mody, 2012). This year has also seen investors regaining confidence in the integrity of the euro. The EU and its member states have also seen to reign in public debt to a sustainable level and have put up post adjustment strategies to enable constr uctive adjustments of the various economic sectors (Cuerpo, 2013). The combination of weak public finances, fragile banks and poor macroeconomic policies that had riddled the first half of 2012 have been dealt with. They are now at a better position that in 2012. This changes although cannot be witnessed in the short term, but some changes can be seen. The EU has also tried to shift resources from sectors that