Economy of the European Union

the European Union is the first economic power world with a Gross domestic product (GDP) of 14 420 billion US Dollars, in parity of nominal Foreign exchange rate is 29,89% of the world GDP in 2006. By using the method of purchasing power parity (PPP), the GDP is slightly lower than that of the the United States, for a quite higher population (492 million inhabitants).

GDP per capita in PPP rises with 27 270 $ in the European Union, against 41 400 $ in the United States in 2006.

The European Union is the first agricultural, industrial power and of service in the world. It still remains in 2007, the place privileged to make deals in front of the China and the United States.

Currency

Job market

In August 2007, the rate of Chômage is established to 6,8% of the active population (6,9% in the Euro area). It strongly varies between the various Member States and the European areas. The mobility of the workers is low between Member States, contrary to mobility between the federate States of the the United States, which returns the convergence of the more difficult Unemployment rate.

Economic outlooks

Weight of the EU in the worldwide economy

The European Union is the first economic power world in 2006 with 29,89% of the world GDP (the World Bank: Total GDP 2006). It is thus the first agricultural power (1st world importer and 2nd exporter) with the the United States, the first world power of services and the first industrial power of the world.

It is in the middle of the world exchanges while being:

the first business partner of the the United States,
the first business partner of the China,
the first business partner of the India,
the first training partner of the Russia,
the first training partner of the country composing the Mercosur,
the first training partner of the South Korea
the first training partner of the country composing OPEC

The share of the EU in the world gross domestic product tends to decrease, like that of the United States and the Japan, because of strong growth of some emergent Pays (BRIC inter alia). Nevertheless, the three pillars of the Triade (EU, ÉUA, Japan) represents always more than 65% of the world GDP in 2006.

Proof of its dynamism, European Union:

in 2006, attracted most of the world investments: 44% of the 947 billion € Direct investment abroad (IDE) world (UNCTAD, 2006).

Strategy of Lisbon

Seek

Community research

In 2007, the EU comes to obtain an European Council with research ( European Research Council , ERC) which was equipped with 7,5 billion euros and which has for single objective to select the projects very innovating.

Between 1996 and 2006, the EU published 2.571.961 articles scientific (scientific publications of projections in the newspapers or reviews whose international notoriety is recognized in the 21 major disciplines of sciences) that is to say 88% of the American quantity, 3,25 times more than Japan and 6 times more than China.

With regard to the publications of high-quality (publications the most quoted in the world scientific community), the EU published, over the same period, 29 309 articles is 54% of the American result, 5 times more than Japan and 13 times more than China.

Prestigious universities

According to the annual classification of the University of Shanghai, the Union occupies the second world rank for the universities most famous (research, publication, Fields medal, Nobel Prize…)

Growth rate of the Member States

The growth of the GDP is rather high in the new Convention country resulting from the widening of 2004, everywhere higher than the average of the EU, because of the beneficial effect on their economies of this adhesion. It exceeds 5% per annum for all except for Malta (of which the economy is liberalized since good more longtemp, even if this adhesion apermis to increase its activities clearly) and of the Hungary (whose liberalization of the economy is older than for the other old socialist countries, but which also profited from the beneficial effects of widening), and is particularly sharp in the Baltic States and in Slovakia. These countries draw to the top the average growth of the Union which is higher than that of the other large countries which weigh more in the GDP.

In the other Member States of the EU before widening, only the Luxembourg, the Finland and the Ireland draw their annual growth beyond 5%, because of their own performances, but also of certain local special fiscal advantages which attract the European or non-European capital. Contrary the Portugal and to a lesser extent the Italy (in spite of its important weight) do not manage to obtain the growth which would be necessary for them in the Union.

| |valign=" top" | |}

Trade

the European Union is the first world commercial power: 1st exporter and 2nd importer (except flow intra-EU).
Lors of the negotiations of OMC, the EU speaks with one voice in the person about the Police chief to the Trade about the European commission, currently Peter Mandelson (British nationality).

| |valign=" top" | |}

Principal business partners of the European Union

If the euro-American exchanges remain held, the year 2006 is remembered by:

the arrival of the China in the first place of the supplying countries of the EU in front of the United States!
the rise to power of the Turkey whose trade polarizes more and more around the EU.

| |valign=" top" | |}

Economic sectors

Primary sector

Agriculture

Fish

The sector related to fishing generates 3 to 5% of the GDP of the EU in 2006. Each year, 3,5 billion tons of goods and 350 million passengers forward by the 1 200 European ports. the EU has 40% of the world maritime fleet and dominates by this fact this sector.

Earth resources and of the basement

Richly equipped in coal, the EU is much less out of oil and other noble metals (Or,…) that its American competitors or Russian. France has in New Caledonia (out of the European Union) very great resources Nickel.

She has nevertheless of important oil-bearing fields (oil Brent) in the North Sea which are exploited mainly by the the United Kingdom, and some places of production of Natural gas. In both cases however, the European Union is still strongly dependant on the imports, in particular on the crude oil of the the Middle East and Iran, of gas of Russia and North Africa, as well as Uranium gross intended to be treated and used in its many nuclear plants.

The geothermic resources are exploited still too little, and almost unimportant in the total energy assessment. The aquiferous resources under-terraines normally intended for the consumption because of excellent quality, rather abundant but are very unequally distributed on the territory of the Union. They are too still largely used by agriculture and often contaminated by it in the areas of intensive agricultural production.

The renewal of these mineral resources is seriously affected today by the contamination of they, surface water also too largely used by the agriculture and industry, or reserved for the hydroelectric production (many stoppings). The Community management of water of the basins slopes on the other hand is very developed and is the increasingly severe monitoring object.

However, in certain areas, when the diversion and the treatment of river water (via a very important network of channels and aqueducts) cannot be enough, it is necessary to provide for the requirements out of water for consumption by maritime delivery, or desalination plants of sea water, two methods greedy in energy.

Secondary industry

It will be treated only principal industries.

Major industrial power, the Union confirms its domination with powerful industrial marks. Each year the Interbrand cabinet classifies the marks according to their power. The first European one is Nokia in 5th position with an estimate of 33 billion dollars.

Automobile

the EU is the first world producer of cars with 18,58 million vehicles is 27% of the worldwide production (2006, OICA). Germany produces 5,81 million vehicles, France 3,17, Spain 2,78.

It is the seat of some of the world independent groups of cars, in particular 5th (Renault-Nissan), 4th (Volkswagen), 6th (Daimler-Chrysler). Moreover, the European firms produce the most prestigious cars in the world (like Rolls-Royce, Bentley, Ferrari,…), and are the leaders in automobile technology (invention of the ABS by automobile equipment Bosch in 1973, ESP…). This European preponderance in automobile industry is explained partly by the birth of the car in Europe (see Histoire of the car).

The EU represents the first park of cars in the world with 225 million vehicles in 2006.

Aeronautical

One distinguishes the civil aeronautics and military.

In 2006, the EU is one two principal world producers of civil aircrafts thanks to EADS and her subsidiary companies Airbus and Eurocopter. Its main competitor is American Boeing. This industry is divided into Europe between production sites (Germany, the United Kingdom, Spain…) and sites of assembly (Hamburg and Toulouse). The Airbus client also makes live hundreds of industrial subcontractors.

The European Union occupies the second place in the military aviation. EADS competes with difficulty with its many American competitors (Boeing, Lockheed, Raytheon,…), whereas the American military budget only weighs with him 50% of the world budget.

Energy

Oil

Thanks to their old colonial possessions, the European powers had access quickly to the means-Eastern fields oil-bearing, which ensure them today, in spite of heavy concessions, a choice place in the landscape of world oil industry. The EU is the seat of three of the five majors of oil: BP (the United Kingdom), Shell (the United Kingdom and Netherlands) and Total SA (France). Moreover London the quotation of oil Brent ensures (of the the North Sea).

Nuclear

The EU lays out of the largest park of nuclear plants with the world (33,33% of the 436 nuclear reactors of the world,) the largest European park being the French park (59 nuclear plants). The French firm Areva is the world leader of the civilian nuclear thanks to the integral control of the nuclear cycle: installation, management, reprocessing. Moreover France accommodates from now on project ITER (International Thermonuclear Experimental Reactor) on the site of Cadarache. It lays out moreover (in collaboration with the Suisse) with CERN of largest and powerful particle accelerator with the world.

Renewable energies

the European Union is the principal energy producer renewable of the planet .

Admittedly, always third pollutant of the world after the China (6 200 million tons) and the the United States (5,8 billion tons of equivalent CO), the EU was the principal supportor of the Protocole of Kyōto, come into effect in 1994. If the American Federal state did not ratify it, some Federal states respect it with the image of the California.

The EU set up a system of quotation of the quotas of the CO emissions. Organization EU-ETS is thus the multinational organization of management of the rights to emit most important in the world. It started in 2005 and implies the 27 Member States of the European Union. The market Powernext Carbon (Paris, France) is the world reference in this field.

the EU accounts for 66% of the wind power installed in the world in 2006 (of which the greatest part produced with the Denmark which produces thus nearly 40% of its electric output) in front of the United States (16%), India (8%) and Japan (2%).

Technologies information and the communication

If the Union is outdistanced by the number of specialist companies in information technologies compared to the American firms (Microsoft, IBM, Apple, Sun, Intel,…), it occupies nevertheless the first world place in mobile telephony (Nokia is the first global manufacturer and the standard GSM is most widespread) and in the software packages of companies (German SAP is the first world editor).

In term of telecommunications, the Union is the world primary market for the use of Internet with 280 million users (28% of the worldwide market) (source World Internet Use Stat ), and the world primary market of mobile phone user with 666 million users ( The Mobile Phon , 2006) with a margin rate of more than 100%.

Tertiary sector

Tourism

The European Union is the first world tourist destination by receiving 54% of the 842 million international tourists (OMT, 2006).

The principal visited European countries are the France, the Spain and the Italy. The France is the first world tourist destination with 75 million visitors. The the United Kingdom, the Germany and the Austria are also all in the signal-ten. Germany only accounts for with it 10,64% of the 683 billion dollars of tourist expenditure in front of the the United States.

Intracommunity tourism is facilitated for the citizens of the Member States which adopted the Euro or which belong to the Espace Schengen. these-last are not obliged any more to have a passport or a visa to go in the adjoining country, the frontier check being completely removed between them. In addition, even if controls remain in the European Union out of the space of Shengen, that does not require any preliminary visa, any part of national identity being sufficient to travel almost everywhere in the European Union (except for some very reduced zones with specific statute, because of transborder agreements made necessary for practical reasons or certain always applicable historical treaties).

Finance departments

The EU is the seat of 6 of the ten plus world large banks (HSBC, Royal Bank off Scotland, BNP Paribas, Agricultural credit, Deutsche Bank…). She occupies a dominating place:

in the quotation of the companies (NYSE - Euronext = first world purse).
in the raw material quotation (Them = first place of quotation: coffee robusta, copper, lead, zinc, aluminum…).
in sophisticated financial creation and the product sales (derivative products…). General society is the world leader of the derivative products on actions.
in the management of fortune (tax shelters luxembougeois, Monegasque, Londoner…).

For the first time since 1914, the market cap of the European places (15 720 billion $US) exceeded those of the United States (15 640 billion $US).

Economies of the Member States

The economic performances vary from one State to another but the countries of the euro area must comply with the rules of the stability pact and growth.

The countries of old the Europe of the 15 have GDP per capita superiors with the average of the EU, excluded the Greece, the Portugal and the Spain (which is on the way to reach this average thanks to her strong growth).

The following table shows various related informations with the economic performances of the Member States. They are classified according to the size of their economies. The colors show the performances of a country compared to the remainder of the European Union, with the top of the average (green) or in lower part (red). Greatest and smaller values of each column are highlighted.

Regional variations

The comparison between different the areas from the European Union is a difficult task. Indeed, the areas as defined by the Nomenclature of statistical territorial units (NUTS) are not homogeneous: within the NUTS-1 (the first level, C. - with-D. the “great areas”), some of enters are very large (for example, the area of the Hesse (NUTS-1 of 21 100 km ²) or the Ile-de-France (NUTS-1 of 12 011 km ²)), whereas others are much smaller, for example the area of Hamburg (NUTS-1 of 755 km ²) or the Région of large London (NUTS-1 of 1 580 km ²).

A problem with these data is that certain zones, for example the Région of large London, are prone to a great number of daily travellers ( commuters ) coming in the zone to work there but not living there, which modifies the statistics artificially: GDP per capita is overestimated.

Areas NUTS-2 are subdivisions of areas NUTS-1.

The most prosperous areas

The 10 areas having the most GDP per capita all are located in the Member States of before the widening of the European Union of May 2004. The majority is located in the European Mégalopole.

| |valign=" top" | |}

The least rich areas

The Poland, although not having the weakest GDP per capita of all the Member States of the European Union, contains six of the ten poorest areas of the EU. The ten areas of tail of classification belong all to the new Member States which joined the EU in 2004.

The richest areas NUTS-2 and the more poor of each Member State (GDP PPP 2002)

See also: GDP of all areas NUTS-2 (2002)

See too

Notes and references of the article

Random links: