Overview

• A supranational political and economic union of European countries.
• Operates through common institutions, laws, and policies.
• Represents one of the deepest models of regional integration globally.
• Headquarters primarily in Brussels (institutions) and Luxembourg (courts).

Background

• Emerged after World War II to replace rivalry with cooperation and ensure lasting peace.
• Early integration focused on economic interdependence to prevent conflict.
• Key milestones include:
  • Treaty of Paris (1951): European Coal and Steel Community.
  • Treaty of Rome (1957): European Economic Community and Euratom.
  • Merger Treaty (1965): Unified institutional framework.
  • Schengen Agreement (1985): Passport-free travel.
  • Single European Act (1986): Completion of the single market.
  • Maastricht Treaty (1992): Formal creation of the EU, EU citizenship, CFSP.
  • Euro introduction (1999–2002): Economic and Monetary Union.
  • Lisbon Treaty (2007): Stronger democracy, efficiency, clarity.
• Expanded from six founding members to 27 countries.

Objectives

• Maintain peace, stability, and security across Europe.
• Uphold democracy, rule of law, human rights, equality, and freedom.
• Ensure free movement of goods, services, capital, and people.
• Promote sustainable development, social justice, and environmental protection.
• Support full employment, social cohesion, and innovation.
• Establish and manage an economic and monetary union, including the euro.
• Respect cultural and linguistic diversity while fostering European identity.

Membership

• Total members: 27 countries.
• Entry requires adherence to democratic norms, rule of law, and a functioning market economy.
• Eurozone: 21 members use the euro.
• Notable exit: United Kingdom left in 2020 (Brexit).

Institutional Structure

• European Council
  • Sets overall political direction and priorities.
  • Comprises heads of state or government.
• European Parliament
  • Directly elected body representing EU citizens.
  • Shares legislative and budgetary powers.
• Council of the European Union
  • Represents member state governments.
  • Co-legislates with the Parliament.
• European Commission
  • Executive arm proposing laws and enforcing treaties.
  • One Commissioner from each member state.
• Court of Justice of the European Union
  • Ensures uniform interpretation and application of EU law.
• European Central Bank
  • Manages monetary policy for euro-using states.
• European Court of Auditors
  • Oversees use of EU funds and financial accountability.

Powers and Functions

• Economic integration through the Single Market and Eurozone management.
• Trade policy with collective negotiation of global trade agreements.
• Legislative authority via regulations and directives binding on members.
• Common policies in agriculture, environment, climate, energy, transport, research.
• Freedom, security, and justice including Schengen cooperation.
• Foreign and security coordination through joint diplomatic positions.
• Budgetary role via cohesion funds and regional development support.
• Protection of values such as democracy, equality, and non-discrimination.

India–EU Strategic Cooperation

• Partnership evolved from aid-based ties to strategic and economic collaboration.
• Cooperation spans trade, climate action, maritime security, counter-terrorism, and technology.
• EU is among India’s largest trading partners.
• Engagement through EU–India Development Dialogue and trade negotiations.
• Shared commitment to a rules-based international order and sustainable development.

Key Challenges

• Security pressures from geopolitical conflicts and regional instability.
• Energy dependence and high costs amid global disruptions.
• Sluggish growth, rising public debt, and global competition.
• Climate neutrality and digital transition requiring large investments.
• Demographic ageing, migration pressures, and social cohesion concerns.
• Rising nationalism and Euroscepticism affecting unity.
• Consensus-based decision-making slowing rapid policy responses.