The European Union (EU) comprises 15 European countries joined in economic and political cooperation. The member countries are Austria, Belgium, Denmark, Finland France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the United Kingdom. While each country retains its independence and own political system, member states of the EU join together to establish policies they abide by for mutual benefit. Today, while the driving force of the European Union continues to be economic, its goals include issues of law, citizenship, and social justice.
The European Union has five main objectives: (1) to promote economic and social progress; (2) to assert the identity of the European Union on the international scene; (3) to introduce European citizenship; (4) to develop geographic area of freedom, security and justice; and (5) to maintain and build an established EU law (http://europa.eu.int/abc-en.htm).
Annual meetings take place between members of the EU’s governing bodies and U.S. government representatives. The United States and the European Union are interdependent on one another regarding trade and because of this have established a number of areas of cooperation and conflict.
Combined, the gross domestic product (GDP) of EU countries is equal to that of the North American countries (United States, Canada, and Mexico). The evolution and expansion of the EU created a fear of “fortress Europe,” with increased power and economic integration within the union and barriers to businesses outside of the union. The North American Free Trade Agreement (NAFTA) was, in part, a response to fears about the growing economic power of the EU. Though all countries in the EU and NAFTA are members of the World Trade Organization (WTO) there are continuing trade conflicts. Two of the more publicized disputes were the banana wars, preferential access to European markets for bananas from former European colonies, and the bovine growth hormone (bgh) restriction on U.S. meat exports to the EU. While trade disputes gain headlines in the news, historically the EU countries and the United States have been closely linked.
After World War II, there was a desire to integrate the economies of European countries in order to avoid another war in Europe. Leaders believed that by fostering cohesion among European nations through unified trade and economic policies, countries would be less likely to fight against one another. In the early 1950s, proposals for how to establish a united Europe were developed. In 1951 Belgium, France, Germany, Italy, Luxembourg, and the Netherlands signed the European Coal and Steel Community Treaty (ECSC), which came into effect on January 1, 1952. This treaty created an official body known as the High Authority that regulated coal and steel production, creating a single economic market for these products for all of the member countries. This group was extremely successful, and coal and steel trade increased dramatically, benefiting all six countries. Based on this success, the countries started working towards creating a common market for additional goods for mutual economic benefit.
In 1957 two treaties were signed by the six members of the ECSC, establishing the European Economic Community (EEC) and the European Atomic Energy Community (EAEC or EURATOM). The EEC established common markets for goods in addition to those already established for coal and steel. EURATOM established agreements regarding atomic and nuclear energy with regards to research. These treaties came into effect on January 1, 1958. In 1967 the members of these three treaties (the ECSC, the EEC, and the EAEC) established one governing authority known as the European Communities (EC) that had four divisions: the European Commission, the Council of the European Union, the European Parliament, and the European Court of Justice. The EC existed until 1993, when it was incorporated into what is now the European Union.
In 1973 Denmark, Ireland, and the United Kingdom officially joined the EC. In 1981 Greece joined, followed by Spain and Portugal in 1986.
Due to the success of the trade policies created by the EC and growing interest in establishing even more integration, the countries continued to work together to create a more unified governing structure. The Treaty on the European Union, more commonly known as the Maastricht Treaty, came into effect on November 1, 1993. The Maastricht Treaty essentially revised the original treaties that were effective under the EC and created the European Union, as it is known today. The treaty established what are termed the three pillars of the European Union. The first pillar incorporates the original three treaties, the second pillar created the Common Foreign and Security Policy, and the third pillar created the Justice and Home Affairs Policy. One of the most important outcomes of the Maastricht Treaty was the establishment of the European Monetary Institute (EMI), which, created a free trade zone known as the European Economic Area (EEA), effective January 1, 1994. In addition, the treaty included the plan to create a single currency and citizenship for all member countries. The United Kingdom and Denmark only agreed to the treaty once they had been exempted from some of its provisions.
Austria, Finland, and Sweden joined the EU in 1995. Any European country can join the EU provided it has a stable democratic government, a decent human-rights record, a functioning economy, and the ability to follow the membership requirements. Many Eastern European countries, such as Poland and the Czech Republic, are expected to join the EU in the coming years.
The EU’s structure is based on a democratic system to ensure that member states and citizens are represented fairly while at the same time the institutions work for the good of the whole union. There are five main governing bodies.

• The European Commission consists of 20 commissioners including the president of the union, Romano Prodi. The commission proposes legislation; implements directives, regulations, and the budget; and acts as the EU’s official representative.
  
• The European Council, also referred to as the Council of Ministers, is made up of representatives of each of the 15 member countries and is considered the EU’s main decision-making body. Council meetings cover various topics such as the environment, finance, and foreign affairs. The council enacts legislation for the union as a whole in conjunction with the European Parliament. In addition, the council makes decisions on foreign policy and deals with cooperation among member countries in criminal matters.
  
• The European Parliament is a political body whose members are elected by the citizens of the EU countries every five years. Representation in the Parliament is based on the population size of each member country. The Parliament deals with the legislative process, plays a role in the budget process, approves the nominations to the European Commission, and supervises the other governing bodies.
  
• The Court of Justice operates as the EU’s supreme court. The court makes decisions regarding treaty interpretations and is made up of one justice from each member country.
  
• The Court of Auditors oversees the management of the EU budget and controls expenditures.

There are additional governing bodies to support the five main branches of the EU.

• The Committee of Regions addresses issues of local identities and plays a role in decisions involving regional policies, the environment, and education.
  
• The Economic and Social Committee has 222 members and represents the views of organizations and groups that deal with topics such as labor and consumer rights.
  
• The European Central Bank handles the EU’s monetary policies.
  
• The European Investment Bank is the EU’s financial institution.
  
• The European Ombudsman handles complaints from EU citizens regarding the EU’s administration.

Common policies adopted by member countries have allowed for freer movement of both goods and people throughout member countries. For example, citizens of member countries now have EU passports rather than passports from their individual countries, allowing for freer travel. Common policies deal with topics such as agriculture, the environment, education, and transportation. The EU has established uniform foreign policies and plays an active role in distributing humanitarian aid. It collects revenue from the value-added tax (VAT), import duties, and contributions from each of the member countries.
The EU’s common currency, the euro, was introduced on January 1, 1999, and has been adopted by eleven countries: Austria, Belgium, Finland, France, Germany, Italy, Ireland, Luxembourg, the Netherlands, Portugal, and Spain. Denmark, Sweden, and the United Kingdom have not yet agreed to adopt the euro. On January 1, 2002, the euro became the official legal tender of participating states, and each country’s individual currency was permanently replaced by the common currency.