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THE CURRENT ECONOMICAL, SOCIAL AND CULTURAL SITUATION IN THE EU By the German Erasmus+ Team Erasmus +

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THE CURRENT ECONOMICAL, SOCIAL AND

CULTURAL SITUATION IN THE EU

By the German Erasmus+ Team

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1. INTRODUCTION TO THE EU

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• Day of foundation: 1.11.1993 in Netherlands

• Reasons: working together in peace for a better economic and political system, a united and successful Europe, stop wars

• Political criteria: democracy, human rights, no discrimination • Economy: functioning market economy to be able to compete in the EU internal market

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Foundation countries: • Belgium

• Germany

• France

• Luxembourg

• Netherlands

2. Expansion of the EU and connected countries

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2. Expansion of the EU

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Member countries of the EU (09.02.2015):

Belgium, Bulgaria, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Austria, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Czech Republic, Hungary, United Kingdom, Cyprus, Croatia, Sweden

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What advantages did the countries see in their membership?

• They hoped it would give them more prosperity and a better life

2. Expansion of the EU and connected countries

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3. THE Institutions

OF THE EU

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The seven elements of the European Union are: • European Parliament • European Council • Council of the European Union • European Commission

• Court of Justice of the European Union

• European Central Bank

• European Court of Auditors

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2. Expansion of the EU and connected countries

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4. THE EUROSYSTEM

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The European system of central banks: • Primary objective: maintaining price stability

• Not all states joined the Euro -> ESCB can not be used as monetary authority

• For this reason, the Eurosystem was introduced

What is the Eurosystem?

• Composed of the national central banks of all states that have introduced the Euro and the European Central Bank

• The institution in charge of those tasks which in principle had to be managed by the ESCB • ESCB can’t handle those tasks because not all states have the Euro

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Tasks and aims of the Eurosystem: • Price stability

• Supporting general economic policies

• Acting with the principles of an open market economy

• Financial stability and integration

• Improving monetary and financial cooperation

• Holding and managing the foreign reserves of member states

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5. THE EUROPEAN ECONOMIC

POLICY

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The EU-Internal market: • Common market of the 28 EU member states

• Exists under this name since the 1st of January 1993

• Biggest jointly market worldwide

• There are four basic freedoms: Freedom of goods, persons, services and capital • It’s a free trade zone, that means no duties

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• Free trade zone, which includes the EU-internal market and three members of the European free trade association (Liechtenstein, Iceland and Norway)

• Involves 31 countries

• Provides also for the four basic freedoms

• In the EEA, half of the global trade takes place

510 Million inhabitants

The European Economic Area (EEA):

The EEA The EU-Internal market

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Comparison between the EEA and the EU-internal market: • The EEA has got 31 member states, the internal market 28 from the EU

• Both have the same four principals

• Both areas are free trade zones with no duties

• Both are powerful economic zones

• The EEA is an extension of the EU-Internal Market • 80% of the rules of the EEA are like the rules of the internal market

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Broad guidelines for economic policies:

• Are important for the coordination of the member state‘s economic policy

• Adopted by the council in the form of a non-legally binding recommendation

• A surveillance mechanism which aims to ensure that Member States comply with them

• The commission is responsible for providing the council with information on the economic development of each of the member states

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The guidelines: • Smart, achievable and sustainable and inclusive growth. macroeconomic equilibrium

• Stability and Growth Pact = control of its budget deficit in its budget imbalances must renovate homes, reducing public debts

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What happens if the member states don’t follow the guidelines?

• First the member states get a warning from the commission

• Next the Council can send suggestions to the states

• The suggestions can be made public

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• To take measures to eliminate macroeconomic imbalances, equity markets balances households and corporate sector

• Member States whose currency is the euro, reduce macroeconomic imbalances in the euro area; large and persistent differences in their current accounts and other macroeconomic imbalances common concern, measures reducing imbalances

2. Expansion of the EU and connected countries

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6. EUROPE 2020

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Main targets: • Employment: 75% of all 20 to 64 year-olds • Finances: 3% of the gross domestic product (GDP) should be invested in development and research

• Climate change: reducing heat-trapping gas by 20 % (in comparison to 1990)

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• Energy: increasing the amount of renewable energies to 20% and raising the energy efficiency by 20%

• Education: enhancing the amount of people with finished A-levels • Fight against poverty and social exclusion: the count of people affected by poverty or exclusion will be decreased by 20 million people

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Priorities: • Intelligent and sustainable growth

• Investing in education, research, innovation

• Orientation to carbon-low economy and environmental-friendly technologies

• Fighting poverty and creating workplaces

• Solid and effective system of economic control

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• Sustainable public finances are important to achieve the economic policy

• government wants to promote the long-term growth • invest more in education, research and infrastructure

• European economy has improved in recent years

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• The German government wants to use the good economic situation to strengthen its base

• In the next years they want to achieve four goals: Ø Better investment and innovation policy

Ø improve participation opportunities and increase participatory justice

Ø lead the energy revolution to succeed Ø the economic and monetary union in Europe stabilize and deepen

2. Expansion of the EU and connected countries

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7. The current situation in the

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Spain overview: • Industrial Production Index (IPI): -0,1%

• The annual rate of the IPI stands at 0,0% in the series adjusted for the seasonal and calendar effect, and at -0,1% in the annual series. • Unemployment rate rose from 23.67 percent in the third quarter of 2014 up to 23.70 percent in the fourth quarter of 2014

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Finland Overview: • Finland has a highly industrialized, largely free-market economy

• The Finnish economy is in it’s third consecutive year of contraction

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Poland overview: • Economic growth slowed considerably in 2012 and 2013

• Unemployment rate in Poland increased to 11.5 percent in December of 2014 • A year earlier the unemployment rate was 13.4 percent

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8. CULTURAL DIFFERENCES

AND COMMONALITIES

BETWEEN THE COUNTRIES OF

EUROPE

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Common art history: • Artists like Picasso and da Vinci are popular in every country in the EU. Religion: • Sunday is the day of rest in all countries

• Common Christian holidays

• Some Christmas songs are popular everywhere Ø only in different languages

• Religious liberty in all countries

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Food: • We have the same farmland (that the same things can be grown)

• The same fruits and vegetables

• Mostly the same eating habits

Beverages: • Alcohol is allowed in every country

• No big differences between the beverages (only some prefer tea, some coffee or other drinks)

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Common history: • World wars

• Conflicts

• Common structure of the EU

Humanistic background: • Every country has Human rights

• Respect • No discrimination or racisim

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Fashion and clothing: • Clothing looks alike

• No fogging by clothing

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Main differences: • Most countries are catholic, some are protestantic • Intolerance of other religions in Hungary

• Turkey doesn‘t advocate women at work and other religions

Ø bad conditions for joining EU

• Biggest alcohol consume in Luxembourg

• Income in eastern Europe is much less than in western Europe

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Main commonalities:

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WE HOPE YOU LIKED THE

PRESENTATION

Sources: 1. - 3. Introduction, expansion , institutions of the EU

• http://en.wikipedia.org/wiki/File:Political_System_of_the_European_Union.svg Retrieved 8 January 2015

4. Eurosystem

• Bundesbank: http://www.bundesbank.de/Navigation/DE/Bundesbank/Eurosystem/eurosystem.html, Retrieved 8 January 2015 • Europäische Zentralbank: https://www.ecb.europa.eu/ecb/orga/escb/html/index.de.html, Retrieved 8 January 2015 • EU-Info Deutschland: http://www.eu-info.de/euro-waehrungsunion/5009/5251/5252/, Retrieved 8 January 2015 • Wikipedia: • http://de.wikipedia.org/wiki/Eurosystem, Retrieved 8 January 2015 http://en.wikipedia.org/wiki/Eurosystem, Retrieved 8 January 2015 http://de.wikipedia.org/wiki/Europ%C3%A4isches_System_der_Zentralbanken, Retrieved 8 January 2015

5. + 6. Europe 2020 / 7. current situation

• http://www.tradingeconomics.com/spain/unemployment-rate, Retrieved 8 January 2015

• http://www.tradingeconomics.com/finland/unemployment-rate, Retrieved 8 January 2015

• http://www.classbrain.com/art_cr/publish/finland_economy.shtml, Retrieved 8 January 2015

• http://www.tradingeconomics.com/poland/unemployment-rate, Retrieved 8 January 2015

8. Cultural differences

• 1 http://www.domradio.de/themen/weltkirche/2014-05-20/statistiken-hohe-religionszugehoerigkeit-der-eu, Retrieved 8 January 2015 • 2 http://www.nohatespeechmovement.org/hate-speech-watch/focus/islamophobia-and-

religious-intolerance, Retrieved 8 January 2015 • http://www.polsoz.fu-berlin.de/soziologie/arbeitsbereiche/makrosoziologie/projekte/

proj_laender_eu.html zugriff vom 8.01.215, Retrieved 8 January 2015 • http://www.academia.edu/1469893/Religious_Intolerance_after_the_Patent_of_Toleration_1781_The_case_of_the_Hungaria

n_Lutherans , Retrieved 8 January 2015