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TL;DR: The Key Points
- The EU is a free trade area and economic/political union made up of 27 independent countries. The UK was a member until it left the European Union in 2020 (“Brexit”).
- As well as free trade, EU citizens have certain rights covering all member states. This includes being able to move freely between all member states to live, study or work (“free movement”).
- While all EU member states are independent countries, the EU shares control in certain policy areas (i.e. farming, the single market). It also acts as a currency union for countries that use the euro.
- The EU Commission acts like a “government”, while the European Parliament is responsible for making EU laws. The European Council – made up of the heads of government of member states – also helps set EU policies.
The European Union (EU) is the largest trading bloc in the world, with 27 member states.
As the EU has expanded, it’s taken on some of the things you would normally associate with a country. These include a parliament, flag, anthem, government, common policies (on things like agriculture, science, fisheries and defence) and currency.
What exactly is the European Union?
Also known as the European Economic Area (EEA) – which includes member states of the European Free Trade Association (EFTA).
It’s a way for member states to trade goods and move money across borders without restrictions as long as all members agree to apply the same rules. This means similar products in different member states meet the same standards. One of the downsides is that these rules are often very technical and nitpicky.
20 EU member states share the euro currency, which is administered by the European Central Bank (ECB) in Frankfurt. The ECB sets the monetary policy for eurozone members. This includes setting interest rates and controlling both inflation and money supply. The ECB also reviews the national budgets of eurozone states.
EU citizens can move freely between member states to live, work or visit without visas or work permits; the only exception is Ireland. EU citizens are also entitled to certain health and welfare benefits, though some restrictions remain (some public sector and national security jobs can be reserved for full nationals, for example).
The EU has allowed countries that were once rivals (even enemies) to put their differences aside and work together for each other’s benefit. The EU’s treaties and agreements guarantee human rights, as well as extra social and workplace protections.
All EU member states are independent countries, though the EU had some exclusive control over certain policy areas. The EU Parliament, EU Council and EU Commission represent both national and all-European interests. This sharing of powers and responsibilities between independent countries and the EU is unique (more on this shortly).
A Brief History of the European Union
1952 – The European Coal & Steel Community establishes a free market for coal and steel between member states (Italy, France, West Germany, Belgium, Luxembourg, Netherlands).
1957-58 – The Treaty of Rome transformed the European Coal & Steel Community into a full customs union and free trade area called the European Economic Community (often called the “Common Market”). The European Parliament is established.
1967 – The Treaty of Brussels establishes the European Commission as the main executive and decision-making body.
1970 – The European Parliament is granted control over the budget.
1979 – Members of the European Parliament (MEPs) are directly elected for the first time. Before this point, MEPs were appointed by their respective national parliaments.
1985 – The Schengen Agreement results in border controls between most member states being eliminated over several years – although the UK and Ireland opt-out. The flag of Europe becomes the bloc’s official symbol. Greenland – which is and remains a self-governing territory of Denmark – leaves the EU.
1987 – The Single Market Act removes some of the last remaining trade barriers, creating the single market as we know it today. Goods, services, money and people can begin to move freely between member states.
1992 – The Maastricht Treaty outlines steps towards a single European currency and re-branded the bloc as the “European Union”. The European Parliament was granted a greater say in decision-making and is handed extra powers to propose and pass EU laws.
1999 – The Treaty of Amsterdam expands the EU’s powers in certain areas. The euro currency is introduced in 11 member states (gradually expanding to 20), becoming the “eurozone”.
2004 – 10 new member states join the EU, many of which are from the former Soviet-dominated Eastern Europe. The Treaty of Lisbon overhauls the previous treaties and how EU laws were made. It also outlines the formal steps needed for a member state to leave the EU.
2007-11 – A sovereign debt crisis affects several eurozone states, particularly Portugal, Italy, Ireland, Greece and Spain (dubbed “PIIGS”). Austerity measures imposed by the EU in exchange for bailouts prove extremely unpopular, particularly in Greece.
2016 – The UK votes “Leave” in an EU referendum – the first full member state to do so.
2019-20 – The terms of the UK’s Withdrawal Agreement are finalised and the UK formally leaves the EU in January 2020.
2020-2021 – The EU puts together a €750 billion package (NextGen EU) to support member states recovering economically from the Covid-19 pandemic. They also agree a “Green New Deal” to cut greenhouse gas emissions to 1990 levels by 2050.
2022 – The EU imposes sanctions on Russia following its full-scale invasion of Ukraine. Ukrainian refugees can enter the EU without going through the EU’s standard asylum procedure. The Digital Markets Act is introduced as an attempt by the EU to regulate “Big Tech”.
2024 – The EU Parliament passes a law governing the use of AI, banning its use in certain situations.
2025 – The re-election of Donald Trump as US President increases the chances of a trade war between the EU and United States, while the EU proposes a massive defence re-armament package in light of a foreign policy pivot by the US away from NATO allies.
What powers does the EU have?
The powers of the EU are called “competences”1.
- The Customs Union.
- Competition rules needed for the single market to work.
- Monetary/currency policy for EU member states that use the euro as their currency.
- Marine conservation under the Common Fisheries Policy (i.e. deciding how many fish and which species fishing vessels are allowed to catch).
- The Common Agricultural Policy (i.e. subsidies for farmers).
- International trade agreements.
- The single/internal market.
- Social policy (if agreed as part of EU treaties); an obvious example would be working hours.
- Regional development (i.e. what was previously called Objective One, used to support regions that economically under-perform).
- Agriculture and fisheries policy more generally.
- The environment and energy (there’s a separate agency tied to the EU dedicated to nuclear power, Euratom).
- Consumer protection (i.e. your rights when you buy something).
- Transport.
- Freedoms, security and justice; the EU has its own Charter of Fundamental Rights that all member states are expected to follow.
- Public health.
- Scientific research, including space policy.
- The Common Foreign & Defence Policy.
There are also policy areas the EU may get involved in to support member states – but ultimately member states have full control. These include things like tourism, education, industrial policy and culture.
How is the EU run?
The equivalent of the EU’s “government” and is responsible for the day-to-day running of the EU itself. Each member state nominates a commissioner and each commissioner is given a specific policy responsibility (much like a Cabinet member). The Commission also proposes new EU laws.
720 Members of the European Parliament (MEPs) are directly elected every five years by proportional representation. The EU Parliament sets the EU’s budget, debates and approves EU laws and questions and scrutinises the EU Commission. They also decide whether to approve or reject nominees for the EU Commission.
This body is made up of the heads of government of each member state. It meets four times a year to set the policy agenda for the EU as a whole, as well as agreeing any changes to the EU’s treaties. The Presidency of the European Council rotates every six months among the member states. It also acts as a second chamber to the European Parliament and they nominate people to act as the EU Commission’s President.
This shouldn’t be confused with the Council of Europe, which is a completely separate body.
This confusingly-named body does the same thing as the European Council but it’s made up of government ministers in particular policy areas rather than the heads of government. The goal is to make sure EU laws are introduced smoothly in member states.
An advisory body made up of representatives from local, regional and state/devolved governments. The CoR can’t make any binding decisions but can help the EU decide how EU laws are applied at a local level.
Makes judgements on cases/disputes around EU laws and ultimately decides what EU laws mean in practice. Each member state appoints a judge.
Manages the euro currency and acts as the central bank for EU member states that use the euro. Within the eurozone, the ECB: sets interest rates, manages foreign exchange reserves, sets targets for inflation, issues euro banknotes (and sets guidelines for coins) and has a general responsibility to ensure the EU’s economy is stable.
Jointly owned by all EU member states it offers loans and investments for projects that support the EU’s policies. An example would be investment in Swansea University’s Bay Campus. The separate European Investment Fund offers funding to businesses.
Monitors EU accounts and ensures value for/best use of money and that any money has been spent legally.
Acts as the copyright agency for 18 EU member states.
A cross-border police agency that operates across EU member states, similar to Interpol. It mainly focuses on serious and organised crime.
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Treaty on the Functioning of the European Union (1957, later revised), Articles 2-6.
Mistral OpenOrca was used to come up with prompts/ideas for the TL;DR summary.
