European integration began with the European Coal and Steel Community, founded by West Germany, France, Italy, Belgium, the Netherlands and Luxembourg. The main objectives of the association was to create a common economic space. In 1993, the European Union was established in transit through the economic union, which meant the integration of all other aspects of society.
Short
By 1993, the countries that are members of the EU, as the founders of the new organization, have long reached a high degree of economic integration, when the war between these states was impossible, due to its complete economic inexpediency. Citizens, goods, services and capital were already freely moving between countries, and the goal of the new union was to harmonize the political and monetary systems and create a supranational system of government.
The European Parliament, the European Council and the Commission have been given the powers that EU member statesdelegated authority to these institutions, including the rights of environmental protection measures, the development of industrial policy, research and development, and even partially questions of macroeconomics, budgetary and monetary policy. However, how to spend budget funds, the EU member states decide for themselves. All parties pay contributions to the common budget in accordance with their economic situation. The money builds roads, finances research, subsidizes environmental protection measures, and sometimes grants loans. Now there are 28 countries in the European Union and there are 22 non-EU countries in Europe.
He who pays more, he rules
Germany, as the richest country, pays the most, its contribution is more than 23 billion euros a year, a little more than 10 billion is returned back along with projects. Even though Germany is the EU's largest donor, many politicians, especially from poorer European countries, feel that the country has received disproportionately more benefits than the costs incurred. The poor EU countries, whose list has increased several times due to Eastern Europe, have a steady trade deficit with Germany.
The country is the largest exporter of goods, selling three times as much as France, the second largest exporter. Such a dominant economic position makes it possible for Germany to often dictate its terms in the EU not only in the economy, but also in politics, social and migration spheres. The work is of particular concern. German corporations in EU countries from Eastern Europe. For example, Volkswagen pays at its plants in the Czech Republic only a third of the wages it pays in Germany. This gave grounds to Czech politicians to declare that they are treated as second-class Europeans. The open migration policy caused a pan-European crisis last year and border guards even reappeared at some borders within Europe.
Brexit
The UK's difficult history of European integration is approaching another cycle of drifting away from continental Europe. In 2016, a little more than half of the citizens of the kingdom voted to leave the European Union, the main reason was the desire to reduce the flow of migrants into the country and not participate in financial assistance programs for poor EU countries.
The United Kingdom was accepted into the European community only the third time, the first attempts were blocked by its historical enemy France due to the fact that "some aspects of the economy make the UK incompatible with Europe." The UK is the second EU country in terms of gross domestic product after Germany, the third in terms of population and the first in terms of military spending. The country's contribution to the general budget is 13 billion euros, it received back about 7 billion.
And now, after 43 years in the European Union, the country begins difficult two-year negotiations to leave the European Union. During this time, the country needs to agree with the other twenty-seven countries that are part ofEU, on exit conditions and try to negotiate the maximum possible trade preferences in order to mitigate the consequences of the loss of free access to the European market. The economic impact is estimated by the Organization for Economic Cooperation and Development as a slowdown in economic growth of 3.2 percent of GDP by 2020.
Frexit is not expected
France, standing together with Germany at the origins of European integration, is still one of the main beneficiaries of the existence of a single European economic space. These two countries also have the most influence on the question - which countries are included in the EU and under what conditions. France receives significant preferences from foreign trade and especially from the location of enterprises in the poorer countries of the European Union.
French businesses in Eastern Europe earn an average of 10 billion in profits annually, while those based in Poland earn 25 billion. Largely because the workers there receive almost a third less than in France. In 1999, the state, along with 12 other countries, adopted the euro, but its economic and budgetary performance is lower than that of such countries in the euro area as Spain, Portugal, Greece, worse than that of the UK, Czech Republic, Denmark and Poland, which remained true to their national currency.
All is calm in the Kingdom of Denmark
The only country that joined the EU with only one of its three parts is the Kingdom of Denmark, a constitutional monarchy that includes threeregion - Denmark, the Faroe Islands and Greenland. In this trio, Denmark is responsible for defense, justice, police, monetary and foreign policy of the Kingdom, other issues within the broad autonomy of the regions decide themselves. Interestingly, the Faroe Islands, which have the status of a self-governing community of people in the kingdom, plays in European football tournaments as a separate country. Denmark, along with the UK, Ireland and Sweden, has retained its national currency.
Visegrad Four
Four Eastern European countries - Poland, the Czech Republic, Slovakia and Hungary - united first to better prepare for entry into the European Union. Now they are fighting together against the initiatives of the "big brothers", which, in their opinion, are discriminatory and aimed at reducing funding from the EU's general budget. Now the countries of Eastern Europe receive investments in the amount of 15-20% of GDP.
Poland received the biggest aid from the European Union - 100 billion euros until 2013 and from 2014 to 2020 will receive another 120 billion. The money was spent on the construction of roads and railways, broadband Internet, research and business support. Poland has become the most attractive country for foreign investors. The Poles also distinguished themselves by being the first to be sanctioned within the EU for violating European values.
Most of all, the countries of the Visegrad Group rallied in the fight against quotas for migrants from Africa and the Middle East, which they were supposed to take in. Hungary evenintroduced border controls at the borders with EU countries to stop illegal migration. Another idea that the four actively protest against is the "Europe of different speeds", that the "old" leading countries can move towards greater integration faster, and the rest will catch up as soon as they can. The Visegrad Group is unhappy that the question of which countries belong to the EU was decided practically without them, with the rapid expansion of European association to the East.
Former country neighbors
The B altic countries are already in their fourteenth year in the European Union, the result of membership is not very encouraging. The countries remain among the poorest in Europe. Agriculture and industry are going through hard times, unable to compete with the global corporations of old Europe. In addition, when joining the union, it was necessary not only to give up part of the political sovereignty, but also to eliminate entire industries, for example, Lithuania was left without nuclear energy, closing the Ignalina nuclear power plant, and Latvia abandoned the sugar industry. The population of countries is rapidly aging, young people leave to work in richer European countries and do not return back. But, probably, if the B altic countries could not join the EU, the situation would be much worse.
Greece has everything but money
The fact that Greece in the EU is not "all sugar", the whole world learned in 2015, when the financial crisis broke out in the country. Until that time, Greece received loans, in total they accumulated 320 billion euros, of which 240 were for assistance programs from the European Union. Union and the International Monetary Fund. And she quietly ate them up, and when she asked for financial assistance again, she received it only in exchange for comprehensive reforms - pension and tax, budgetary and banking spheres. This year, the country should complete the rescue program and external economic oversight. Greece has carried out reforms quite successfully and stabilized its financial system.
A little about the rest
The EU includes European countries, which are very conditionally divided into northern rich and southern poor regions. After joining the European Union, all these countries quite successfully carried out reforms and adapted to life according to common rules. We hear about the life of these countries in the European Union most often in connection with problems. For example, such as the banking crisis in Cyprus, although deoffshorization was successfully carried out there before, and now this Mediterranean country is no longer a paradise for tax fugitives. European Union countries with difficulties, but moving forward and together towards further integration.
