CH 4 IB

Question 1

European Union (EU)

Answer 1

political and economic organization of 28 (now) countries in Europe

Question 2

Since when does the Euro exist?

Answer 2

1999

Question 3

When did the most European counties start using the Euro?

Answer 3

2002

Question 4

What are the different states of integration in the EU?

Answer 4

free trade area
customs union
common market
economic union

Question 5

What was the EU started as? When?

Answer 5

As a free trade area in 1950.

Group of countries without trade barriers among themselves.

Question 6

2. stage of integration of the EU?

Answer 6

Customs union which imposes common external policies on non-participating countries.

Question 7

3. stage of integration of the EU?

Answer 7

Common market. Free movement of goods and people.

Question 8

4. stage of integration of the EU?

Answer 8

Economic union. The members of an economic union coordinate and harmonize economic policies.

Question 9

What do some members of the EU share?

Answer 9

A monetary union. This means they share a common currency and monetary policy.

Question 10

What is the EU not?

Answer 10

A political union. It is an association of sovereign nations.

Question 11

What was the EU based on in 1950?

Answer 11

The Schuman Plan.

The Schuman Declaration is the statement made by the French foreign minister Robert Schuman on 9 May 1950. It proposed to place French and German production of coal and steel under one common High Authority. This organization would be open to participation of Western European countries. This cooperation was to be designed in such a way as to create common interests between European countries which would lead to gradual political integration, a condition for the pacification of relations between them

Question 12

When was the EU founded and which treaty is important to note?

Answer 12

The treaty of Rome in 1957

Question 13

What is the Copenhagen Criteria?

Answer 13

The process of accepting new members in the EU

Question 14

Central and Eastern Europe (CEE)

Answer 14

countries east of the former Iron Curtain

Question 15

Comecon

Answer 15

pre-1990 trading bloc of the socialist countries.

Question 16

What did the Single European Act lead to?

Answer 16

basis for the European single market.

Question 17

What is the European single market?

Answer 17

EU’s term for its common market.

Common market. Free movement of goods and people.

Question 18

Four freedoms of the EU single market. (Aspects of the institutional framework for business in the EU)

Answer 18

Free movement of goods
Free movement of services
Free movement of capital
Free movement of people

Question 19

Free movement of goods in the EU and mutual recognition.

Answer 19

Sectors in the EU which are not subject to risks of environment, health…:

are regulated by mutual recognition which means that products recognized as legal in one country may be sold through the EU.

Question 20

Subsidiary principle of the EU

Answer 20

EU only takes action if it is more effective than actions taken at lower levels (national, regional or local).
Priority is decentralization.

Question 21

What are harmonized sectors in the EU?

Answer 21

sectors of the industry for which common rules exist to reduce the risk for customers.

These rules made by the EU are, however, costly and complex.

Question 22

Free movement of services

Answer 22

The single market for services is not a single market yet, even with harmonization.

Question 23

Free movement of capital

Answer 23

Every EU citizen should be able to conduct financial transactions in any EU country.

Question 24

Bologna Process

Answer 24

political process with the aim to harmonize European higher education

Question 25

Schengen Agreement

Answer 25

basis for passport-free travel

Question 26

Does EU competition policy regulate only businesses?

Answer 26

No, also governments! There are tight regulations on the state aid, which is financial support from the government to companies. (MNE's choosing an investment location would profit from such a subsidy competition)

Question 27

Which criteria has to be fulfilled by countries to join the Eurozone?

Answer 27

The Maastricht Criteria

Question 28

European Stability Mechanism (ESM)

Answer 28

fund to support member countries with difficulties raising money on the capital markets

Question 29

What is the optimum currency area?

Answer 29

Theory that establishes the criteria for the optimal size of an area sharing a common currency. Eurozone is probably too large!

Question 30

European Council

Answer 30

most important body for policymaking. An assembly of head of governments. Chaired by the President of the European Council.

Question 31

Council of the European Union

Answer 31

highest formal decision-making body. Ministers from the national governments.

Question 32

European Commission

Answer 32

EU's executive arm.

Question 33

What is the European Commission organized into?

Answer 33

Into departments. Directorate General (DG). Headed by a commissioner each.

Question 34

Who is the President of the Commission elected by?

Answer 34

The President of the Commission is nominated by the European Council. He is the head of the EU's executive.

Question 35

European Parliament

Answer 35

Directly elected representative of European citizens. Elected every 5 years. Monitors the growing EU bureaucracy and shares control over the EU budget.

Question 36

MEPs

Answer 36

Members of the European Parliament. Belong to one of the European parties and are directly elected by the citizens of the EU. By ME!!!

Question 37

Court of Justice

Answer 37

The EU's own judicial system. | Deals with cases taken up by the Commission and cases that are referred to by the courts of the member states.

Question 38

How many countries have the euro as a common currency?

Answer 38

23 (now)