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Thursday, May 12, 2011

The European Union: Questions and Answers


Kristin Archick
Specialist in European Affairs

Derek E. Mix
Analyst in European Affairs


The European Union (EU) is an economic and political partnership that represents a unique form of cooperation among its 27 member states. The Union is the latest stage of a process of integration begun after World War II to promote peace, stability, and economic prosperity in Europe. The United States has strongly supported the EU and its progenitors as a means to foster democratic states and robust trading partners.

The EU has been built through a series of binding treaties, and EU member states have committed to a process of integration by harmonizing laws and adopting common policies on an extensive range of issues. For most economic and social issues, EU member states have largely pooled their national sovereignty, and EU decision making has a supranational quality. Decisions in other areas, such as foreign policy, require unanimous consensus among member states.

EU member states work together through common institutions to set policy and to promote their collective interests. The three main institutions of the EU are the European Commission, which upholds the common interest of the Union as a whole and functions as the EU’s executive; the Council of the European Union (also known as the Council of Ministers), which represents the national governments; and the directly elected European Parliament, which represents the citizens of the EU. The Lisbon Treaty, which took effect in December 2009, is the EU’s latest attempt to reform its governing institutions and decision-making processes in order to enable an enlarged EU to function more effectively. The Lisbon Treaty also seeks to give the EU a stronger voice in the foreign policy realm and to increase democratic transparency within the EU.

The EU has a strong common trade policy and has been developing a Common Foreign and Security Policy (CFSP) to make it a more coherent actor on the world stage. It has also been seeking to build a Common Security and Defense Policy (CSDP) in order to improve its military capabilities. Although some shortcomings exist in EU-NATO relations, the two institutions continue to seek a more cooperative and complementary relationship. Over the last decade especially, the EU has been working to forge common internal security measures in the Justice and Home Affairs (JHA) field, including by boosting police and judicial cooperation and enhancing the Union’s ability to combat terrorism and other cross-border crimes.

The United States and the EU have an extensive and dynamic political partnership and share a large, mutually beneficial trade and investment relationship. The global financial crisis has challenged both sides to forge a common response. The United States and the EU have a number of lingering trade disputes, but have led the push to liberalize world trade, and have sought to reduce non-tariff and regulatory barriers in the transatlantic marketplace.

This report provides a brief overview of these issues, many of which may be of interest to the 112
th Congress. For more information, also see CRS Report RS21618, The European Union’s Reform Process: The Lisbon Treaty, by Kristin Archick and Derek E. Mix; CRS Report R41088, The European Union: Leadership Changes Resulting from the Lisbon Treaty; by Derek E. Mix, and CRS Report RS21998, The European Parliament, by Kristin Archick and Derek E. Mix.


Date of Report: May 4, 2011
Number of Pages: 12
Order Number: RS21372
Price: $29.95

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