Europe Government and Economics

2.1 The European Union

• History of unifying– 1948- Marshall Plan was used to rebuild Europe

after WWII– 1953- Common Market established to put down

trade barriers– 1992- European Union started to help trade,

stabilize governments and unify Europe

2.1 How have these united Europe

• Countries realized they could accomplish more if they worked together

• Trade became easier and less expensive• No restrictions or tariffs on imports and

exports• Common currency( Euro)• Promoted Democracy on the continent

2.2 Impact of the Euro

• Eurozone( 17 countries) was established were common currency would be used

• Euro– Common side- have same image and a number

value– National side(back) – have a design chosen by the

member nation

2.2 Economic Impact

• No fees for exchanging money• Made travel easier and less expensive• Increased tourism• Lowered fees for conducting business- trade

increased• Comparison shopping- buy the cheapest

products- competition developed

2.2 Political Benefits

• Unity among nations• Financial help- Greece and Ireland– Loans given to countries in financial difficulty– Stabilizes the economy , which stabilizes the

countries government. Less rebellions and political unrest

2.3 Democracy in Eastern Europe

• Challenges– Corrupt leaders– Civil wars( Yugoslavia)– Interference from Russia – Interference from Communist parties

2.3 Market Economy in Eastern Europe

• Challenges– Slow developing private businesses– Businesses aren't competitive– Rise in prices– unemployment

2.4 Europe: Changing Demographics

• Aging population – average age is rising and more people are retiring ….. Shortage of workers

• Workers are needed to pay taxes to pay for education and health care

• Guest workers and immigrants have filled the gap in most countries

2.4 Changing Demographics

• Reasons for immigration– Jobs and a better life– Escape poverty– Escape civil wars, political unrest and conflict– Escape unjust governments

• Challenges of immigration: Tensions– Competition for jobs– Illegal immigrants cause economic strain– Different cultural traditions and customs– Different religions and beliefs