EU should enlargement Essay Example | Topics and Well Written Essays - 3000 words

EU should enlargement - Essay Example It is worth mentioning that EU has initiated significant steps towards developing Common Foreign and Security Policy (CFSP) in order to develop the economies at large. It has been noted that seventeen out of 27 EU members belong to Economic and Monetary Union (EMU). These seventeen member states of EU have firmly agreed to coordinate their respective economic along with monetary policies by using single currency i.e. Euro. EMU participants also share central bank which is regarded as the European Central Bank (ECB) as well as common monetary policy for preserving financial stability. It is worth mentioning that these member states do not share fiscal policy and possesses sole right over regulating their national taxation and spending (Gros &Thygesen, 1998). Thus this paper intends to discuss the economic implications of EU’s enlargement process and makes arguments for its enlargements. Policy Position The member states of EU functions collectively through focusing upon buildin g common institutions in order to set effective policies and promote their combined interest. Since the formation of the EU, the different EU member states have progressively and radically committed towards harmonizing various laws and adopting joint policies emphasising on various relevant issues. Additionally, EU member states have agreed to cooperate almost in all the fields, however decisions related with economic and social policies requires unanimous agreement of all the 27 EU countries. In the recent past years, the EU member states have witnessed radical economic challenges. The Euro zone crisis that occurred during the year 2009-2010 has drastic economic impact on the EU member States (Archick, 2013). More specifically, the crisis has resulted in imposing significant impact on the actual and potential economic growth of the EU member states. The impact of the crisis was also visible on the labour market and employment (European Communities, 2007). Accordingly, the labour ma rket in the EU member states has considerably weakened. This impact has created an urge for forming an effective structural reform concerning economic policies of the EU. The EU possesses a common external trade policy which implies that the trade policy is exclusively governed by EU and no member states are liable to negotiate its own international trade agreement. Undoubtedly, it can be stated that EU’s trade policy is one of the well-integrated policies throughout the globe. The trade policies of EU provide free movements of goods and capital within different EU member States. With the free movements of goods, the EU aimed at eliminating one member state from importing goods at cheaper prices owing to the lower tariff and again re-exporting the items to another member state at relatively higher tariff. The common trade policy was further extended to include trade in services as