European Union Economy: Unlocking Prosperity, Navigating the European Union Economy

By Fouad Sabry

What is European Union Economy

The economy of the European Union is the joint economy of the member states of the European Union (EU). It is the second largest economy in the world in nominal terms, after the United States, and the third largest at purchasing power parity (PPP), after China and the US. The European Union's GDP is estimated to be $19.35 trillion (nominal) in 2024 or $26.64 trillion (PPP), representing around one-sixth of the global economy. Germany has the biggest national GDP of all EU countries, followed by France and Italy.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: Economy of the European Union

Chapter 2: Economy of Bulgaria

Chapter 3: Economy of Croatia

Chapter 4: Economy of the Czech Republic

Chapter 5: Economy of Estonia

Chapter 6: Euro

Chapter 7: Economy of Hungary

Chapter 8: Economy of Latvia

Chapter 9: Economy of Malta

Chapter 10: Economy of Poland

Chapter 11: Economy of Romania

Chapter 12: Economy of Slovakia

Chapter 13: Economy of Slovenia

Chapter 14: Economy of Spain

Chapter 15: Economy of Belgium

Chapter 16: Economy of Austria

Chapter 17: Eurozone

Chapter 18: Economy of Europe

Chapter 19: Economy of Sweden

Chapter 20: European debt crisis

Chapter 21: Economy of Canada

(II) Answering the public top questions about european union economy.

(III) Real world examples for the usage of european union economy in many fields.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of European Union Economy.

• Language: English
• Publisher: One Billion Knowledgeable
• Release date: Apr 2, 2024

Book preview

Chapter 1: Economy of the European Union

The economy of the European Union consists of the combined economies of its member states (EU). It is the third biggest economy in nominal terms, after the United States and China, and the third largest in terms of purchasing power parity (PPP), behind the United States and China. In 2022, the European Union's nominal GDP is projected to reach around $16.6 trillion. Germany has the EU's largest GDP by a wide margin, followed by France and Italy.

Eurozone's inflation

After the United States dollar, the euro is the second biggest reserve currency and the second most traded currency in the world. Twenty of its 27 members use the euro, and it is the official or de facto currency in 26 countries, including the eurozone and six additional European nations.

The economy of the European Union is a mixed economy internal market based on the free market and progressive social models. It comprises, for example, a single internal market with free movement of commodities, services, capital, and labor.

The Eurozone or euro area (dark blue) represents 347 million people.

The euro is the world's second-largest reserve currency.

Beginning in 1999 with certain EU member states, twenty of the twenty-seven EU member states currently utilize the euro as their official currency in a currency union. The other eight nations maintained their own currency, with the option to join the euro in the future. Additionally, the euro is the most extensively used currency in the EU.

Since 1992, the Maastricht Treaty has established stringent economic and budgetary convergence requirements for governments adopting the euro. The Stability and Growth Pact has been in effect since 1997 to assure continued economic and budgetary stability and convergence.

Denmark is not a member of the eurozone owing to its particular opt-outs regarding the euro's subsequent adoption. Sweden, on the other hand, may essentially opt out by deciding when or not to join the European Exchange Rate Mechanism, the first step before membership. The remaining nations' Treaties of Accession obligate them to join the euro.

Beginning with Greece in 2009, five of the twenty eurozone governments have been afflicted by a sovereign debt crisis, which many refer to as the European debt crisis. All of these states initiated changes and received aid packages (Greece, Republic of Ireland, Portugal, Spain, Cyprus). Greece is the only country that has not recovered from its financial crisis as of 2015. Other non-Eurozone governments, such as Hungary, Romania, and Latvia, also had a financial crisis and implemented effective rescue schemes (the latter before it joined the eurozone).

The European Union has a long-term budget, referred to as Multiyear Financial Framework (MFF), of €1,082.5 billion for the period 2014–2020, comprising 1.02 percent of the GNI of the EU-28.

The services sector is by far the most significant sector in the European Union, accounting for 64.7% of GDP compared to the manufacturing industry's 23.8% of GDP and agriculture's 1.5% of GDP. Frankfurt and Luxembourg City will thereafter be the two major financial hubs remaining inside the EU.

In the European Investment Bank's Investment survey 2021, 58 percent of service sector enterprises anticipated COVID-19's long-term consequences.

The European Union provides subsidies to the agriculture industry under the Common Agricultural Policy (CAP).

In 2013 this represented approximately €45billion (less than 33% of the overall budget of €148 billion) of the EU's total spending.

The European Union is a significant tourism attraction, drawing tourists from outside the Union as well as Union inhabitants traveling inside the Union. The Schengen agreement and the euro make domestic tourism more convenient. All European Union citizens have the right to travel to any other member state without a visa.

Spain, Italy, and Germany follow France as the second, third, and fourth most popular tourist destinations worldwide, respectively. Notably, a significant number of overseas tourists to EU nations come from other member states.

Wind power stations in Cerová, Slovakia

The European Union possesses deposits of uranium, coal, crude oil, and natural gas. There are six oil producers in the European Union, the majority of which are located in the North Sea. While a part of the European Union, the United Kingdom was by far the greatest producer; Denmark, Germany, Italy, Romania, and the Netherlands all produce oil. In 2019, the European Union produced crude oil equal to 19,8 million tonnes (Mtoe). The EU is one of the greatest oil users, using far more than it can generate. In 2019, it used around 350 Mtoe and imported 96.8 percent of its oil. Russia, Iraq, Nigeria, Saudi Arabia, Kazakhstan, and Norway are the main suppliers. 66.1% of all oil used in 2019 is consumed by the transportation sector.

The member nations of the European Union are the birthplaces and headquarters of many of the world's top multinational corporations. These include Allianz and AXA, the two largest financial service providers in the world by revenue; WPP plc and Publicis, the two largest advertising agencies in the world by revenue; Amorim, the world's largest cork-processing and cork producer company; and ArcelorMittal, the world's largest steel company. SE Christian Dior

Numerous additional European corporations are among the world's greatest by revenue, profit, market share, number of workers or other significant indices.

Numerous EU-based corporations are listed among the world's top 10 in their respective industries.

Europe is also home to several prominent automobile manufacturers, such as Aston Martin, Automobiles Alpine, BMW, Bugatti, Ferrari, Jaguar, Lamborghini, Land Rover, Maserati, Mercedes-Benz, Porsche, Volvo, in addition to volume producers like Automobile Dacia, Citroën, Fiat, Opel, Peugeot, Renault, Seat, Volkswagen as well as.

33 percent of employment in Europe are held by businesses that have not undergone digital transformation. In addition, these businesses were less likely to educate their personnel during the COVID-19