THE EUROPEAN UNION

The main purpose of this report is to extend the reader’s knowledge about the European Union and explain how this Union works.

The main content of this report is , what the European Union is, what the European Union do, how the European Union is organized , which are the main goals , and a little bit about the economic systems.

The results of my internet survey about the European Union suggest that the European Union is a political and economical association which is integrated by 27 democratical european countries.

The European Union was created to bring peace, stability, prosperity, and freedom to its 498 millions of citizens and makes a lawful world.

I discovered the following; the European Union is integrated by three main decision- making bodies m which have a lot of responsibilities.

Firstly, the European parliament which represents the citizens from Europe, Secondly, the council of the commission, which represents all the national government of the 27 countries , finally the European commission which represents the common interest of Europe.

Solidarity and innovation are the principal purposes of the EU´s activities; the EU´s annual budget is over 120 billions of pounds. This budget is invested in the regional and social development, agriculture, research and energy.

Talking about economy and money, the information obtained in the survey shows that, economist have identified four types of economic systems which are: traditional, command or controlled, market or capitalist and mixed.

Several countries have different economic systems; it depends on beliefs, religions, government, etc. But each of them, must answer the following questions:

• What goods and services should be produced?
• Who should produce them?
• How should they be produced?
• Who should be able to use them?

In the traditional, the economy decisions are based on customs, beliefs and religion. People hunt their own food and move on to another place, where there is more food, “things are done in the way they have always been done”.

Command or controlled: the government controls all business and makes all decisions. They decide who will use the resources, how, and everything.

The market system or capitalism is the most common nowadays. People decide all about their goods and services, also the economic decisions are made in the market.

People can decide if they want to be the seller or the costumer, they may take, refuse or change their jobs. Capitalism is based on the law of supply and demand.

Finally, the mixed system has some characteristics of the command and market systems. For example, EU tends the market system, but they have some laws that regulate some business. In China, they follow the command system, but they have some free areas, in which foreign trade can make business without interruption of the local government.

In conclusion, I think that these kind of organizations are very important, because they can regulate a lot of problems that sometimes exist between the countries.

The improvement in the benefits and challenges in European countries is really good, and the social responsibility that the European commission has is amazing.