Advantages and Disadvantages of EU Membership

         The European Union or the EU,  was created in 1993 with the signing of the treaty of the European union popularly known as the Maastricht treaty. Although efforts had been made in the past to unify Europe as a whole the signing of the treaty implied that the original 12 member states had become economically integrated and would possess common policies in a number of areas(Online Encyclopedia, 2009). This economic integration signalled that there would be a common market with among member states with which to influence policies and create common ground for its member states to form allliances and benefit from one another.  Therefore, in theory, it can be said that  the EU was created with a view of producing a large federation, both politically and economically.

Numerous member states of the EU  benefit heavily from the union, these benefits are as follows:
  
* Funds :- there are major funds attributed to developing the union, socially, economically and regionally. These funds are classed under the group of Mainstream funding.
      The most substantial aid  for developmental projects involving productive investments is the European Regional Development Fund (ERDF). This is aimed at creating and maintaining jobs, improve developmental projoects in the regions and assist Small and Medium sized Enterprises (SME's).
        There is also the European Social Fund(ESF) which is beneficiary to human resource development and engaging widespread support for training and employment schemes at the national and regional level. Finally, the European Agricultural Guidance and Guarantee Fund (EAGGF) which is solely aimed at rural development (Tourism Unit, 1996) 

*Common Currency:- the creation and existence of the EURO as the common currency for member states with the exception of the United Kingdom has made business between countries easier to to carry out as there is no concern for exchange rates. This currency is presently the official currency of over 10 countries and it has removed diversification in business.

*Single Market:- Businesswise, this European single market has a population estimated at 500 million and with one registered european trademark, business is made easy and it also exposes SME's to economies of scale and export markets. For consumers, this free movement of goods and services across borders provides a wider range of commodities to choose from and with the registered Eupean trademark 'CE', consumers are more informed about  these products and are guaranteed a minimum standard. Finally, this single market gives individuals the right to live, work, or study in any other EU country. Hence studying abroad is made easy through the ERASMUS student foreign exchange programme. This creates a wider range of opportunities for individuals to choose from.(Great Britain. Department for Business, Innovation and Skills, 2012)

Although the EU has numerous benefits it is possesses a number of disadvantages:
*Cost:- according to (EconomicsHelp, 2012) the EU costs an estimated £6.4 to maintain, fund, and oversee. One of the factors which contibute to this is the large employee network. The EU has different organs and specialized ones with a large number of workers in numerous countries.

*Problems of the Euro:- the Eurozone; nations that tender the Euro as  main currency; has faced my obstacles especially in establishing interest rates across its member states. The reason for this being that the member nations do not all have the same growtth rate which makes it difficult for the European Central Bank (ECB) to set interest rate which will benefit all nations. This is one of the main factors contributing to the current Eurozone crisis. It is also believed to be a major reason why the UK refuses be part of the Eurozone.

*Net Migration:- the free movement of people, goods and services across Europe has resulted in some overcrowded cities in the UK and across Europe. Major cities such as London, Berlin and many others have become overcrowded and this is beginning to put pressure on available resources.

       
                                                                                                                                                              

 

                                                       European Union Countries(2009)

References:

1. EconomicsHelp(2012).Available at: http://www.economicshelp.org/europe/disadvantages-eu.html  (Accessed: 31 January 2012).
2. Encyclopedia of Management,(2009) European Union. Available at: http://www.encyclopedia.com/topic/European_Union.aspx (Accessed: 31 January 2012).
3. Google Images(2009) European Union Countries[Online]. Available at: http://www.europeword.com/blog/europe/the-european-union-countries-at-the-helm-of-global-affairs/ (Accessed: 1 February 2012).
4. Great Britain. Department for Business, Innovation and Skills (2012) Benefits and Achievments of EU Single Market. [Online]. Available at: http://webarchive.nationalarchives.gov.uk/+/http://www.bis.gov.uk/policies/europe/benefits-of-eu-embership (Accessed: 31 January 2012). 
5. Tourism Unit, (1996) Tourism and the European Union: A Practical Guide. Luxembourg: Office for official publications of the European communities.