European Union (EU)

What Is the European Union?

The European Union (EU) is a political and economic partnership made up of 27 countries across Europe. It was officially created in 1993 , though its roots go back much earlier. The EU’s headquarters are located in Brussels, Belgium , and it works through a system that includes three main governing bodies : the European Council , the European Parliament , and the European Commission .

One of the most well-known features of the EU is the euro , a shared currency used by 19 of its members . Known as the Eurozone , this group launched the euro in 1999 , with physical notes and coins entering circulation in 2002 . Today, more than 340 million people use the euro in their daily lives. The common currency has made cross-border trade and travel easier within the region.

Benefits of the EU

The EU allows people to travel freely across most of Europe without needing border checks. Citizens can also choose where they want to live, work, study, or retire within the EU — and they’re treated equally when it comes to jobs, taxes, and social benefits.

At the heart of the EU’s economy is the Single Market , which ensures the free movement of:

• Goods
• Services
• Capital (money)
• People

This open market makes life easier for businesses and consumers alike. The EU is also working to expand these benefits into areas like energy, research, and financial markets.

Origins of the EU

The idea behind the EU started after World War II , with the goal of preventing future conflicts by tying nations together economically. Leaders believed that if countries became economically interdependent, they’d be less likely to fight.

This led to the formation of the European Economic Community (EEC) in 1958 , initially formed by six founding members known as the "Inner Six" :
Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany.

The EEC itself grew out of an earlier organization — the European Coal and Steel Community , established in 1951. Over time, the EEC expanded and evolved into what we now know as the European Union , following the Maastricht Treaty in 1993 .

In 2009, the Treaty of Lisbon gave the EU even more authority, including the power to sign international agreements and strengthen border controls. Since then, 22 more countries have joined , making the EU one of the largest and most integrated economic regions in the world.

The UK left the EU on January 31, 2020 , in a move known as Brexit .

What Does the EU Do Now?

Originally focused on economics, the EU has grown to cover many other areas, including:

• Climate change
• Public health
• Foreign policy
• Security and justice
• Migration

Its core goals include promoting peace, building a strong and stable economy, encouraging innovation, protecting the environment, breaking down trade barriers, and supporting inclusive societies.

How Is the EU Governed?

The EU runs through seven key institutions , each playing a different role in governance:

• European Council – Made up of national leaders, it sets the overall direction and deals with urgent issues.
• European Commission (EC) – Acts as the EU’s main executive body, proposing laws, managing the budget, and representing the EU globally.
• European Parliament – The only institution directly elected by citizens, it helps pass laws and approves the budget.
• Council of the European Union – Also called the Council of Ministers , it works alongside the Parliament to approve legislation.
• Court of Justice of the European Union (CJEU) – Interprets EU laws and settles legal disputes.
• European Central Bank (ECB) – Manages the euro and sets monetary policy for the Eurozone.
• European Court of Auditors (ECA) – Reviews how EU funds are spent, ensuring transparency and accountability.

These institutions work together under a system of checks and balances , ensuring no single body holds too much power.

For example:

• The Commission proposes new laws , but both the Parliament and the Council of the EU must agree before they become real policy.
• The ECB oversees the euro and aims to keep prices stable.
• The ECA makes sure public money is used properly.

How Can Citizens Get Involved?

EU citizens aren’t just spectators — they can take part in the decision-making process by:

• Giving feedback on proposed policies
• Supporting or launching citizen-led initiatives
• Filing complaints about how EU laws are applied

EU Member Countries

The EU currently includes 27 member states , such as: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden.

As of 2021, the EU is home to over 440 million people , with France being the largest country by area and Malta the smallest.

The Schengen Area vs. the EU

It’s important to note that the EU and the Schengen Area are not the same . While the EU has 27 members, the Schengen Area allows visa-free travel between certain countries — some of which are not even EU members. This means people can move freely across borders within the zone, often without even showing a passport.

The Eurozone Explained

Also known as the Euro Area , the Eurozone includes the 19 EU countries that use the euro as their official currency. These countries follow a unified monetary policy set by the European Central Bank (ECB) .