Important Issues Facing The European Union Today Economics Essay

Important Issues Facing The atomic number 63an unification at once Economics EssayThe European Union is an integration of European states that encompasses divergent histories, institutions, governmental systems and economies. At present the EU boasts 27 member countries with a combined population of over 500 meg. The creation of a whizz currency, the euro, has led these citizens to depend heavily on the union for the success of their single economies. Furthermore, many others nations out with EU jurisdiction rely on the EU for trade, finance and investment aid. Political historians much(prenominal) as Leonard (2005) have advocated that the EU has been in a state of crisis since its inception. However, despite such(prenominal) problems, the EU has emerged as a strong, steady and powerful force in the worldwide political atomic number 18na.The dawn of the 21st century has brought with it fresh challenges for the EU to transmitress. Many of these abridges were describe by EU President Jose Manuel Barroso in a speech at the European Parliament in 2007. Barroso cited economic reforms, unemployment, social justice and mode change as cosmos matters of pressing concern (2007). This essay serves to cozy up these problems and explain why they be the most important issues facing the European Union today.One of the study problems facing the EU is the ever increase levels of unemployment affecting the majority of the member states. Barroso (2007) stated that close to 20 million EU citizens were classed as unemployed. More worryingly, Barroso stressed that many of those out of give way were of a younger demographic. Modigliani (2005) warned that such rates of unemployment canister become to resources being wasted, a decline in siding and thus a spillage in savings and investment deep down the economy. Modigliani also hastened to add that unemployment levels can lead to complicated and long-standing social problems as individuals affected can arouse despondent and discouraged by the lack of job opportunities. Therefore, unemployment is an important issue impinging on all of the EU states.Bertola (2000) alluded to labour market place involvement rates, wage inequality, employment dispersion across EU regions and market murder as being the major causes of high unemployment levels within the EU. Labour market performance is guided by government and institutional policies in the EU which in turn control minimum wages, taxation and unemployment benefits. Room (2006) and Barroso (2007) argue that although there are many ways to reduce unemployment, such as wage differentiation and geographical mobility, such measures could alter the economic and political equilibrium currently in place in the EU. Additionally, Wallstrom (2007) is quick to pourboire out that although the elimination of unemployment subsidies across the EU states would reduce unemployment levels, it would in consequent increase the poverty and iniquity rates thus leading to speed levels of social exclusion. As a result, these repercussions have raised alarming concerns for twain public and politicians alike as the EU struggles to implement a political program of reform to address the situation. Access to the member states products, capital and labour resources could volunteer economic efficiency but the levels of regulation required would prove extremely hard to sustain.In response to the suppuration problems with unemployment, the EU Commission has proposed any(prenominal) measures designed to tackle the issue. These include a revamp of the member states developing and job strategies as well as increasing investment on research and ontogenesis. It is hoped that this in turn would lead to increased economic output and thus the creation of jobs in the process. However, Wallstrom (2007) argues this could prove a difficult delegate given the heterogeneous social and economic structures of the EU member states. Additionally, the prost ration of the world economy in 2008 has lead to a global street corner and has seen employment levels in the EU increase dramatically. The Employment in Europe Report (2009) estimated unemployment levels in Europe would break the10% mark in 2010 and would insure to surface.The issue of climate change has come to the fore spectacularly in the 21st century and is some other important issue facing the European Union. Changes in climate variations are occurring around the globe raising old(prenominal) concerns about the stability of the planets ecosystem. According to Schroter (2005) these deviations may have a range affect on levels of food production and water supplies. For example, Berkhout (2005) noted harvest home hardship within a country can impact the wrong of certain food commodities in the EU ascribable to imports. Brandt (2001) explains that these growing concerns lead to the implementation of the Kyoto communications protocol an environmentally friendly form _or_ system of government sancti wizardd via the fall in Nations Framework Convention on Climate Change designed to pose greenhouse gas emissions under control in 1997.In the spend of 2003, a heat wave engulfed much of Europe resulting in land temperatures being recorded. Beniston (2004) stated that the heat wave bore a comparison to the type of temperatures anticipated by the end of the 21 century. Beniston (2004) concluded that due to an enhanced atmospheric concentration of greenhouse gas, summer temperatures could be anticipate to increase by 4 degrees celsius on average. According to Christiansen Wettestad (2003), the EU generates one of the highest levels of greenhouse gas emissions and accounts for 25% of the worlds production. Brandt (2001) states the EU expects that there will be a 0.8% increase in CO2 emissions annually. Furthermore, the EU faces additional problems with its failure to persuade its members to adopt the carbon tax due to the many rules and regulations integrate in the policy (Christiansen Wettestad, 2003).The use of fossil fuels is another factor that leads to global warming and can have a detrimental long limit affect on the climate. Kruger Pizer (2004) cite that increased emission levels due to the development of the transport sector have led to further issues for the EU to address. These substantive growths in emission output can have a send off impact on allowance prices if the EU tested to meet Kyoto protocol targets by using offset purchases.The growing carbon market is another area of concern for the European Union. Howse Eliason (2008) argue that it is crucial levels of carbon whole tone are monitored in install to reduce emissions in the air. According to Kruger et al. (2007) the European Union launched an emissions trading program in 2005 with the aim of meeting the Kyoto Protocol targets for tackling climate change. However, the complexity of the European Union Emissions Trading System (EU ETS) is do the mem ber states to experience various political and economic challenges as they attempt to meet the targets set by the Kyoto Protocol.Howse Eliason (2008) cite that an investigation carried out by the Financial Times concluded that a number of companies operating within EU boundaries receive unjust carbon credits and that this is causing an inequitable subsidy distribution in EU states. Howse Eliason, (2008) claim this is an issue because the results do not coincide with emissions reduction. Therefore, the EU needs to contemplate strategies to regulate such outcomes.The issue of security is another obstacle facing the European Union. Kicinger (2004) writes that international terrors to security present far greater problems than those posed internally. To put it simply, this is because these threats cannot be predicted. One such threat is terrorist act. Wallstrom (2007) argues that although Europes policy of passport-free travel is beneficial for stage business and tourism, it allo ws cross-border terrorists and criminals freedom of access within the member states. Terrorism is a major issue because innocent peoples lives are at stake. Schilder Hauschild (2004) note that EU states are also used as a base to plan and devise terrorist attacks. These criminals deploy state of the art resources, have well maintained networks and are capable of resorting to horrific levels of violence. Kicinger (2004) writes that Al Qaeda an Islamist fundamental group create in the late 1980s and renowned for its terrorist activities housed logistical cells in the EU member states of the United Kingdom, Germany, Italy and Spain. Therefore, the concentrated effort of the EU to tackle such problems is crucial.Another security concern for the EU is the technological advancements in in advance(p) arms. This puts the current security measures in place by the EU in question. Flow of trade and investment within the European states has given rise to the prosperity of the EUs inhabitan ts. However, in spite of the advantages that free trade has brought, it has also heightened the threat of internal terrorism. Europe is now a playground for organised crime and is rife with drug trafficking, illegal immigrants and prostitution (Schilder Hauschild, 2004).Cross-border and neighboring threats also add to the security concerns of the European Union. Disputes in Kashmir and the Korean Peninsula as detailed by Schilder Hauschild (2004) affected the EU member states both directly and indirectly. The European Union Commission has pledged to combat the security threat and via foreign policy and crisis management initiatives have made provisions for security. According to Barroso (2007), these include securing borders with member states and with international countries more effectively. Moreover, the EU is attempting to forge policies and agreements with their transatlantic partners in order to minimise any threats posed to security although this is proving a difficult ass ign to achieve.In conclusion, since its formation in 1993, the European Union has served to address a great number of important issues. These issues are not solely confined to the borders of EU but are commonly dealt with throughout the world. This essay has highlighted the EUs growing problems with unemployment levels, focused on the pearls of climate change and has detailed the threat of terrorism to the EUs stability. These are just a few of the important issues facing the European Union today.