Objective of European Union
1:Elimination of custom duties among member states.
2:Elimination of
obstacles to the free flow of import and export of goods and
services among member
nations
3:Free movement of capital and people within
the block.
4:Acceptance of common
agricultural policies , transport policies,
health and safety regulations
and educational degrees.
5:Common measures for consumer protection.
6:Common laws to maintain competition
throughout the community and to fight monopolies or illegal cartels.
7:Regional funds
to encourage the economic development of
certain countries.
8:Greater monetary and fiscal co-ordination among member
states and certain common
monetary and fiscal policies.
Function
of European Union:
1: Internal
Market:
Two of the
original core objectives of the European Economic Community were the
development of a common market, subsequently renamed the single market, and a
customs union between its member states. The single market involves the free
circulation of goods, capital, people and services within the EU,[ and
the customs union involves the application of a common external tariff on all
goods entering the market. Once goods have been admitted into the market they
cannot be subjected to customs duties, discriminatory taxes or import quotas,
as they travel internally.
2: Competition:
The EU operates a
competition policy intended to ensure undistorted competition within the single
market. The Commission as the competition regulator for the single market is
responsible for antitrust issues, approving mergers, breaking up cartels,
working for economic liberalisation and preventing state aid.
3:Monetary
union:
The euro is designed
to help build a single market by, for example: easing travel of citizens and
goods, eliminating exchange rate problems, providing price transparency,
creating a single financial market, price stability and low interest rates, and
providing a currency used internationally and protected against shocks by the
large amount of internal trade within the euro zone. Since its launch the euro
has become the second reserve currency in the world with a quarter of foreign
exchanges reserves being in euro. The euro, and the monetary policies of those
who have adopted it in agreement with the EU, are under the control of the
European Central Bank (ECB).
4:Financial
supervision:
The European System of
Financial Supervisors is an institutional architecture of the EU's framework of
financial supervision composed by three authorities: the European Banking
Authority, the European Insurance and Occupational Pensions Authority and the European
Securities and Markets Authority. The aim of this financial control system is
to ensure the economic stability of the EU.
5:Energy:
The EU has had
legislative power in the area of energy policy for most of its existence; this
has its roots in the original European Coal and Steel Community. The EU has
some key points in its energy policy: increase competition in the internal
market, encourage investment and boost interconnections between electricity
grids; diversify energy resources with better systems to respond to a crisis;
use existing energy supplies more efficiently while increasing use of renewable
energy; and finally increase funding for new energy technologies.
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