Economy of the European Union

http://www.all-laptopfan.com/,http://www.all-keyboard.com/ The economy of the European Union generates a GDP of over €12.894 trillion (US$16.566 trillion in 2012)^[1] according to Eurostat, which makes it the largest economy in the world. The European Union (EU) economy consists of an Internal Market and the EU is represented as a unified entity in the World Trade Organization (WTO). FUJITSU LifeBook A6030 CPU Fan The official currency of the European Union is the euro used in all its documents and policies. The Stability and Growth Pact sets out the fiscal criteria to maintain for stability and (economic) convergence. The euro is also the most widely used currency in the EU, which is in use in 17 member states known as the Eurozone. SONY Vaio VGN-FS115Z CPU Fan All other member states, apart from Denmark and the United Kingdom, which have special opt-outs, have committed to changing over to the euro once they have fulfilled the requirements needed to do so. Also, Sweden can effectively opt out by choosing when or whether to join the European Exchange Rate Mechanism, which is the preliminary step towards joining. HP 532617-001 CPU Fan The remaining states are committed to join the Euro through their Treaties of Accession. Below is a table showing, respectively, the GDP and the GDP (PPP) per capita for the European Union and for each of its member states, sorted by GDP (PPP). This can be used as a rough gauge to the relative standards of living among member states, with Luxembourg the highest and Bulgaria the lowest. ACER Aspire 5730Z CPU Fan Eurostat, based in Luxembourg, is the Official Statistical Office of the European Communities releasing yearly GDP figures for the member states as well as the EU as a whole, which are regularly updated, supporting this way a measure of wealth and a base for the European Union's budgetary and economic policies. Figures are stated in euro. HP G56-126NR CPU Fan Economic performance varies from state to state. The Growth and Stability Pact governs fiscal policy with the European Union. It applies to all member states, with specific rules which apply to the eurozone members that stipulate that each state's deficit must not exceed 3% of GDP and its public debt must not exceed 60% of GDP. HP Pavilion dv7-6166nr CPU Fan However, many larger members have consistently run deficits substantially in excess of 3%, and the eurozone as a whole has a debt percentage exceeding 60% (see below). The following table shows information relating to the member states of the European Union, ordered according to the 'Size' of their economies. FUJITSU Lifebook A3210 CPU Fan (NB: Were the table ordered according to 'GDP per capita' this would perhaps better reflect the strength of an individual economy. But this is not how such tables are commonly structured.) The colours denote how a member state is performing relative to the rest of the European Union, above average (green) or below average (red). DELL Precision M6400 CPU Fan The smallest and greatest values in each column are emphasised. The data for GDP and GDP per capita (PPP) are based on the World Economic Outlook, October 2013 (International Monetary Fund). The EU's share of Gross world product (GWP) is stable at around one fifth.^[15] Compaq Presario CQ60-615DX CPU Fan The twelve new member states of the European Union have enjoyed a higher average percentage growth rate than their elder members of the EU. Slovakia has the highest GDP growth in the period 2005–2011 among all countries of the European Union (See Tatra Tiger). Notably the Baltic states have achieved massive GDP growth, with Latviatopping 11%, close to China, HP Pavilion dv2660se CPU Fan the world leader at 9% on average for the past 25 years (though these gains have been in great part cancelled by the late-2000's recession). Reasons for this massive growth include government commitments to stable monetary policy, export-oriented trade policies, low flat-tax rates and the utilisation of relatively cheap labour. Toshiba Satellite L500-1XC CPU Fan For the last year (2011), Estoniahad the highest GDP growth from all the states in EU (7,6%). The current map of EU growth is one of huge regional variation, with the larger economies suffering from stagnant growth and the new nations enjoying sustained, robust economic growth. DELL GM0503PEB1-8 (L2.M) CPU Fan Although EU27 GDP is on the increase, the percentage of Gross world product is decreasing due to the emergence of economic powers such as China, India and Brazil. In the medium to long term, the EU will be looking forward to increase GDP growth in Italy and the UK to stabilise growth in European Union states. This is to ensure sustained economic prosperity. HP Pavilion dv7-1098eo CPU Fan The European Union has large coal, oil, and natural gas reserves. There are six oil producers in the European Union, primarily in North Sea oilfields. The United Kingdom by far is the largest producer, however Denmark, Germany, Italy, Romania and the Netherlands all produce oil. If it is treated as a single unit, which is not conventional in the oil markets, Toshiba Satellite A205-S5804 CPU Fan the European Union is the seventh largest producer of oil in the world, producing 3,424,000 (2001)barrels a day. It is also the world's second largest consumer of oil, consuming much more than it can produce, at 14,590,000 (2001) barrels a day. Much of the difference comes from Russia and the Caspian Sea basin. HP Pavilion dv7-1240us CPU Fan All countries in the EU have committed to the Kyoto Protocol, and the European Union is one of its biggest proponents. The European Commission published proposals for the first comprehensive EU energy policy on 10 January 2007. The European Union is the largest exporter in the world^[18] and as of 2008 the largest importer of goods and services.^[19]  DELL yy529 CPU Fan Internal trade between the member states is aided by the removal of barriers to trade such as tariffs and border controls. In the eurozone, trade is helped by not having any currency differences to deal with amongst most members.^[20] The European Union Association Agreement does something similar for a much larger range of countries, Toshiba Qosmio G40-10E CPU Fan partly as a so-called soft approach ('a carrot instead of a stick') to influence the politics in those countries. The European Union represents all its members at the World Trade Organization (WTO), and acts on behalf of member states in any disputes. When the EU negotiates trade related agreement outside the WTO framework, the subsequent agreement must be approved by each individual EU member. SONY Vaio VGN-CR407E CPU Fan The seasonally adjusted unemployment rate in the European Union (EU27) in March 2009 was 8.3% compared to 6.7% in March 2008. The Eurozone (EA16) unemployment figure for January 2009 was 8.2% compared to 7.3% in January 2008.^[23] The unemployment rate (EU25) had previously declined in prior years from 8.9% in March 2005 to 8.4% in March 2006 to 7.3% in March 2007.^[24] HP Pavilion dv6-1101au CPU Fan The rate varies widely by member state. There has been a steep upturn in the unemployment rate since 2008 due to the worldwide credit crunch and following recession. The countries within the EU which were most affected were Spain, Ireland and the Baltic countries with the unemployment rate doubling or in case of the Baltic countries nearly tripling. HP Pavilion dv7-3190ev CPU Fan By comparison in March 2009 the United States had an unemployment rate of 8.6% (2008: 5.1; 2007: 4.4; 2006: 4.7) which was higher than the EU-27's unemployment rate but lower than the EU-16 Eurozone rate of 8.9%. Japan's unemployment rate remained comparatively steady at 4.4% (2008: 3.9; 2007: 4.0; 2006: 4.1).^[ HP Pavilion dv7-1157cl CPU Fan The following tables show the current unemployment rate of all Member States for March 2009 with comparisons to March 2008, 2007, 2006 and 2005 and comparisons to the United States and Japan: The agricultural sector is supported by subsidies from the European Union in the form of the Common Agricultural Policy (CAP). HP COMPAQ NX9420 CPU Fan This currently represents 40–50% of the EU's total spending. It used to guarantee a minimum price for farmers in the EU. This is criticised as a form of protectionism, inhibiting trade, and damaging developing countries; one of the most vocal opponents is the UK, the third largest economy within the bloc, HP Mini 110-1110ET CPU Fan which has repeatedly refused to give up the annual UK rebateunless the CAP undergoes significant reform; France, the biggest beneficiary of the CAP and the bloc's second largest economy, is its most vocal proponent. The European Union is a major tourist destination, attracting visitors from outside of the Union and citizens travelling inside it. HP Pavilion dv7-1157cl CPU Fan Internal tourism is made more convenient for the citizens of some EU member states by the Schengen treaty and the Euro. All citizens of the European Union are entitled to travel to any member state without the need of a visa. France is the world's number one tourist destination for international visitors, followed by Spain, HP Pavilion dv6-3163eo CPU Fan Italy and the United Kingdom at 2nd, fifth and sixth spots respectively. It is worth noting however a significant proportion of international visitors to EU countries are from other member states. London, the capital of the United Kingdom is also the world's most visited city and the highest in tourism receipts, before Paris. HP Pavilion dv9740us CPU Fan The European Union's member states are the birthplace of many of the world's largest leading multinational companies, and home to its global headquarters. Among these are distinguished companies ranked first in the world within their industry/sector, like Allianz, which is the largest financial service provider in the world by revenue; ACER Aspire 4743 CPU Fan WPP plc which is the world's largest advertising agency by revenue; Airbus, which is the world's largest aircraft manufacturer;^[28]Air France-KLM, which is the largest airline company in the world in terms of total operating revenues; Amorim, which is the world's largest cork-processing and cork producer company; ArcelorMittal, HP Pavilion dv6-2170us CPU Fan which is the largest steel company in the world; Inditex which is the biggest fashion group in the world; Groupe Danone, which has the world leadership in the dairy products market. Anheuser-Busch InBev is the largest beer company in the world; L'Oréal Group, which is the world's largest cosmetics and beauty company; Toshiba Satellite L675-S7018 CPU Fan LVMH, which is the world's largest luxury goods conglomerate; Nokia Corporation, which is the world's largest manufacturer of mobile telephones; Royal Dutch Shell, which is one of the largest energy corporations in the world; and Stora Enso, which is the world's largest pulp and paper manufacturer in terms of production capacity, ASUS F80Q CPU Fan in terms of banking and finance the EU has some of the worlds largest notably HSBC and Grupo Santander, the largest bank in Europe in terms of Market Capitalisation. Many other European companies rank among the world's largest companies in terms of turnover, profit, market share, number of employees or other major indicators. ACER TravelMate 4200 CPU Fan A considerable number of EU-based companies are ranked among the worlds' top-ten within their sector of activity. Europe is also home to many prestigious car companies such as Audi, Mercedes, Jaguar Land Rover, Volkswagen, BMW group as well as volume manufacturers such as Fiat, PSA group and Renault. HP 434678-001 CPU Fan To date, one of the most commonly used measures of income inequality is the Gini index. The Gini coefficient measures income inequality on a scale from 0 to 1. On this scale 0 represents perfect equality with everyone having exactly the same income and 1 represents perfect inequality with one person having all income. HP G70-120EA CPU Fan According to the UN (UN), Gini index ratings for countries range from 0.247 in Denmark to 0.743 in Namibia. Most post-industrial nations had a Gini coefficient in the range 0.25 to 0.40. In 2005 the Gini index for the EU was estimated at 0.31^[29] and as a comparison the USA had 0.463. Comparing the richest areas of the EU can be a difficult task. Toshiba Satellite A300-034 CPU Fan This is because the NUTS 1 & 2 regions are not homogenous, some of them being very large regions, such as NUTS-1 Hesse (21,100 km²) or NUTS-1 Île-de-France (12,011 km²), whilst other NUTS regions are much smaller, for example NUTS-1 Hamburg(755 km²) or NUTS-1 Greater London (1,580 km²).HP 606609-001 CPU Fan An extreme example is Finland, which is divided for historical reasons into mainland Finland with 5.3 million inhabitants and Åland, an autonomous archipelago with a population of 27,000, or about the population of a small Finnish city. One problem with this data is that some areas, including Greater London, Compaq Presario CQ60-301sl CPU Fan are subject to a large number of commuters coming into the area, thereby artificially inflating the figures. It has the effect of raising GDP but not altering the number of people living in the area, inflating the GDP per capita figure. Similar problems can be produced by a large number of tourists visiting the area. TOSHIBA Satellite L300 CPU Fan The data is used to define regions that are supported with financial aid in programs such as the European Regional Development Fund. The decision to delineate a Nomenclature of Territorial Units for Statistics (NUTS) region is to a large extent arbitrary (i.e. not based on objective and uniform criteria across Europe), and is decided at European level (See also: Regions of the European Union). ASUS Eee PC 701 CPU Fan The 10 NUTS-1 and NUTS-2 regions with the highest GDP per capita are almost all, except two, in the first fifteen member states: Prague and Bratislava are the only ones in the 12 new member states that joined in May 2004 and January 2007.^[31] The leading regions in the ranking of NUTS-2 regional GDP per inhabitant in 2008 were Inner London in the United Kingdom (343% of the average), Compaq Presario CQ60-305sa CPU Fan the Grand Duchy of Luxembourg (279%) and Bruxelles/Brussels in Belgium (216%). Figures for these three regions, however, are artificially inflated by the commuters who do not reside in these regions ("Net commuter inflows in these regions push up production to a level that could not be achieved by the resident active population on its own. HP 637607-001 CPU Fan The result is that GDP per inhabitant appears to be overestimated in these regions and underestimated in regions with commuter outflows."^[32]). Another example of artificial inflation is Groningen. The calculated GDP per capita is very high due to the large natural gas reserves in this region. However, Groningen is in fact one of the poorest parts in the Netherlands. HP Pavilion dv7-3067nr CPU Fan Among the 40 NUTS-2 regions exceeding the 125% level, ten were in Germany, five in the Netherlands, four each in Austria and United Kingdom, three each in Spain and Italy, two each in Belgium and Finland, one each in the Czech Republic, Denmark, Ireland, France, Slovakia and Sweden, as well as the Grand Duchy of Luxembourg. HP Pavilion dv5-1210ez CPU Fan The NUTS Regulation lays down a minimum population size of 3 million and a maximum size of 7 million for the average NUTS-1 region, whereas a minimum of 800,000 and a maximum of 3 million for NUTS-2 regions ¹ [23]. This definition, however, is not respected by Eurostat. E.g.: the région of Île-de-France, Compaq Presario CQ50-211nr CPU Fan with 11.6 million inhabitants, is treated as a NUTS-2 region, while thestate Free Hanseatic City of Bremen, with only 664,000 inhabitants, is treated as a NUTS-1 region. The twenty lowest regions in the ranking in 2008 were all in Bulgaria, Romania, Poland and Hungary, with the lowest figures recorded in Severozapaden in Bulgaria (27% of the average), HP G56-114SA CPU Fan followed by Nord-Est (29%) in Romania, Severen tsentralen in Bulgaria (29%) and Yuzhen tsentralen in Bulgaria (31%). Among the 64 regions below the 75% level, fifteen were in Poland, seven each in the Czech republic and Romania, six each in Bulgaria and Hungary, four each in Italy and Portugal, three each in Greece, SONY Vaio VGN-CR21Z/N CPU Fan France (all overseas departments) and Slovakia, two in the United Kingdom, one in Spain, as well as Estonia, Latvia and Lithuania. The European Union has a budget to pay for policies carried out at European level (such as agriculture, assistance to poorer regions, trans-European networks, research, HP Pavilion dv7-4060eo CPU Fan some overseas development aid) and for its administration, including a parliament,executive branch, and judiciary that are distinct from those of the member states. These arms administer the application of treaties, laws and agreements between the member states and their expenditure on common policies throughout the Union. Some 5% of expenditure is on administration, 95% on policies. Toshiba Satellite M70-252 CPU Fan To pay for this, the EU had an agreed budget of €120.7 billion for the year 2007 and €864.3 billion for the period 2007–2013,^[1]representing 1.10% and 1.05% of the EU-27's GNI forecast for the respective periods. The three core European Union institutions that are officially designated with responsibility for setting a budget are: Toshiba Satellite A100-455 CPU Fan the Council of the European Union, with ministers from each Member State; the European Commission, as the EU's day-to-day executive and administration; and the European Parliament directly elected by citizens. In practice, negotiations tend to be dominated by national interests, which is evident in the Council, where unanimous agreement of all member states is required. HP Pavilion dv5-2112br CPU Fan The annual budget is adopted by a procedure involving a proposal from the European Commission, which must be adopted (usually after amendment) by the European Parliament and the Council. It must remain within ceilings determined in advance by the Multiannual Financial Framework, laid down for a seven-year period by the Council (requiring the unanimous approval of every Member State) with the assent of the Parliament. DELL BFB0505HA CPU Fan The budget for a year is determined in advance, but final calculations of payments required from each member state are not completed until after the budget year is over and information about revenue and expenditure is available. The UK rebate is one of the last elements of the budget to be calculated (though it is estimated in advance) as it depends upon the balance of all EU revenue to and from the UK. HP Pavilion dv6-3299en CPU Fan The European Court of Auditors is the fifth institution of the European Union (EU). It was established in 1975 in Luxembourg to audit the accounts of EU institutions. Despite its name, the court has no judicial functions. It is rather a professional external investigatory audit agency. SONY Vaio VGN-NW11Z/T CPU Fan The primary role of the court is to externally check if the budget of the European Union has been implemented correctly, in that EU funds have been spent legally and with sound management. In doing so, the court checks the paperwork of all persons handling any income or expenditure of the union and carries out spot checks. Toshiba Satellite L550-20W CPU Fan The court is bound to report any problems in the court's reports for the attention of other states and institutions, these reports include its general annual report as well as specific and special reports on certain bodies and issues.^[2] The court's decision is the basis for the European Commission decisions, for example: HP Pavilion dv7-4183sf CPU Fan when the court found problems in the management of EU funds in the regions of England, the commission suspended funds to those regions and prepared to fine those who did not come back up to acceptable standards.^[3] In this role the court has to remain independent yet remain in touch with the other institutions, HP Pavilion dv7-3190ev CPU Fan for example a key role is the presentation of the court's annual report to the European Parliament. It is based on this report that the parliament makes its decision on whether or not to sign off the European Commission's handling of the budget for that year. The court, if satisfied, HP KSB06105HA CPU Fan also sends assurances to the council and parliament that the taxpayers money is being properly used and the court must be consulted before the adoption of any legislation with financial implications but the opinion is never binding. Traditional own resources^[5] are taxes raised on behalf of the EU as a whole, HP G62-244CA CPU Fan principally import duties on goods brought into the EU. These are collected by the state where import occurs and passed on to the EU. States are allowed to keep a proportion of the revenue to cover administration (25%). The European Commission operates a system of inspectors to investigate the collection of these taxes in member states and ensure compliance with the rules. HP Pavilion dv7-3190ei CPU Fan The effect of a state failing to collect these taxes is that other states will have to contribute more to the budget, so there is a potential conflict of interest on the part of the collecting authorities. Countries are liable to make good any loss of revenue due to their own administrative failure. HP G62-244CA CPU Fan VAT based own resources^[5] are taxes on EU citizens derived as a proportion of VAT levied in each member country. VAT rates and exemptions vary in different countries, so a formula is used to create the 'harmonised tax base', upon which the EU charge is levied. The starting point for calculations is the total VAT raised in a country. ASUS A6000R CPU Fan This is then adjusted using a weighted average of VAT rates applying in that country, producing the intermediate tax base. Further adjustments are made where there is a derogation from the VAT directive allowing certain goods to be zero-rated. The tax base is capped, such that it may not be greater than 50% of a country's Gross national income (GNI). HP Pavilion dv7-6011sg CPU Fan The EU applies a call-up rate to the tax base, generally of 0.33%, but this is varied for some countries. For 2007–2013 the rate proposed for Austria is 0.225%, and Germany 0.15%, the Netherlands and Sweden 0.1%. Countries are required to make an account of VAT revenues to the EU before July after the end of the budget year. Toshiba Satellite L300D-01P CPU Fan The EU examines the submission for accuracy, including control visits by officials from the Directorate-General for Budget and Directorate-General for Taxation, and reports back to the country concerned. The country may then respond to any issues raised in the report, and negotiations continue until both sides are satisfied, Compaq Presario CQ60-409CA CPU Fan or the matter may be referred to theEuropean Court of Justice for a final ruling. The Advisory committee on own resources, which has representatives from each member state, also receives and discusses the reports. In 2006, nine countries were inspected by controllers, including 5 new member states who were participating in the procedure for the first time. HP Mini 110-3010sf CPU Fan It is anticipated that 11 countries will be visited in 2007. The EU may be working on figures for three years at any one time.GNI based own resources^[5] currently forms the largest contribution to EU funding. A simple multiplier is applied to the calculated GNI for the country concerned. Toshiba Satellite L645D-S4056 CPU Fan This is the last recourse for raising funding for a budget year, so the actual figure is adjusted within predetermined limits to obtain the budget total required. Revenue is currently capped at 1.23% of Gross national income in the European Union as a whole.^[6] GNI for own resource purposes is calculated by national accountants according to Toshiba Satellite M70-142 CPU Fan European law governing the sources and methods to compile GNI and the transmission of GNI data and related methodological information to the Commission (Eurostat). Basic information must be provided by the countries concerned toEurostat before 22 September following the budget year concerned. DELL Inspiron E1505 CPU Fan Eurostat carries out information visits to the National Statistical Institutes forming part of the European Statistical System. Based on assessment reports by Eurostat, the Directorate-General for Budget (DG BUDG) of the Commission may notify to the Permanent HP 532613-001 CPU Fan Representative of the Member State concerned required corrections and improvements in the form of reservations on the country's GNI data. Payments are made monthly by member states to the commission. Own resources payments are made monthly as they are collected, but monthly instalments of VAT and GNI based returns are based upon the budget estimates made for that year, subject to later correction. HP Envy 14-1080eo CPU Fan Most of the EU budget is used for agricultural and regional support, while the administration only accounts for 6–7%. In the 2006 budget, the largest single expenditure item was due to the Common Agricultural Policy (CAP), with its direct aid, export refunds, storage and rural development and support and subsidies, ACER TravelMate 5230 CPU Fan which accounted for around 46.7% of the total budget. By 2013, the share of traditional CAP spending is projected to decrease significantly to 32%.