The European Union (EU) is an intergovernmental union of 25 European countries. These countries are known as member states. The European Union was established in 1992, the activities of the EU cover everything from public policy to health, economic policy to foreign affairs and defense. Due to the extent of its different powers in different areas, the EU may come together with a federation which would handle for example, monetary affairs, agriculture, trade and environmental policy.

A confederation would handle social and economic policy, and an international organization would handle foreign affairs. The union does not have the power to transfer powers from states onto itself. On October 29, 2004, European heads of government established a constitution for Europe. It’s still under debate because of the rejection of the constitution by France and the Netherlands.

I’m sure that this constitution drawn up by the EU must have been a very difficult task, as Europe is made up of many different languages and customs, further, it’s difficult to make one document appealing for all member countries’ governments. Many supporters of the European Union say that one of the main reasons for the constitution was for peace and democracy. They also claim that since some countries are no longer under dictatorships, there is a strong urge for democracy.

There was a need for reconstruction after World War II and that there was a need not to wage war with each other anymore. Hope for economic and political stability was strong. There are still some European countries that are not viewed as suitable for membership because of their economies. Also, there are countries that are still politically unstable. Most likely the EU will hold up over the next 20 years. The European Union is supported by several financial institutions, such as the European Central Bank, and the European Investment Bank.

The EU has no official capital and its institutions are located in several European cities, therefore many countries can contribute equally to these institutions. Keeping the EU together will be no easy task since decision making is made by so many different countries, like the constitution. The constitution has made it possible to have a single currency known as the Euro.

I feel that EU will work because it shares many similar characteristics with that of the U.S, such as a common constitution, but the states still have their own constitutions. Also, both use a common currency, like with the United States dollar. As we have in the United States there is now free movement of citizens to live and work anywhere in the EU provided they can support themselves. I think the EU will last longer than 20 years because the United States has worked this way since 1776.

The European Union has the largest economy in the world, the U.S. being the first. The economy of the EU is expected to grow over the next decade as more countries join the union. New joining members are usually poorer than the EU average, as the EU will then try to assist them to bring that country up to par.

It’s estimated that the EU will grow around 0.3 percent while other countries such as the United States will grow three times ad much at about 3.2 percent. The reason being the EU isn’t up to the United States standards as far as membership and GDP are concerned. The GDP growth will help achieve better standards with the EU, given time the next 20 years should prove well.