Advantages And Challenges Of The European Region

1138 Words 5 Pages
Topic: What are the competitive advantages and the major challenges of the countries in European Region?

Conventional wisdom has it that the European Region being one of the most integrated and developed regions in the world, which allocates all of its resources efficiently, has recently encountered several challenges which are, according to the reliable source such as the World Economic Forum (2015), fostering economic growth and innovation, youth unemployment and a worsening of the EU-Russia relations. Besides, apart from the problems in Europe, there are also some significant advantages which help European Region to remain compatible in the world arena nowadays successfully.
First of all, EU is presumably one of the strongest economic areas
…show more content…
It might be a good idea to distinguish between political, social, and economic spheres and challenges in these areas. Firstly, it may be useful to admit that the very political purpose and core values of the European Union are being undermined. As John Loughlin (2001) argues, there is evidence that the ‘core countries’ have successfully obtained enormous power during significant negotiations or the whole process of decision-making on the level of European Parliament. This does not necessarily imply that other countries lack legislative abilities, but does emphasize the empirical evidence of it. Secondly, the study carried out by Helma Lutz (2016) opens wide room for discussion of so-called ‘managed’ migration. Apparently, as the author of the book implies, ‘European states give priority to skilled workers’, thereby stripping women and children of their inborn rights. Finally, judging from the economic prospects, there is a possibility that economy of the EU may weaken because of financial constraints. For instance, the survey by Patrick Minford et al (2016), indicates that it takes considerable economic effort to fully conform to the economic realities of the EU. Consequently, it can possibly approve the phenomenon of Brexit from the economic perspective.
In conclusion, it is relevant to mention
…show more content…
Although, according to Graph 1 (see Appendix), it only accounts for 23% of nominal global GDP. Free trade and removal of non-tariff barriers have helped to reduce costs and prices for consumers. Similarly, increased trade to the EU created jobs and provided people with higher income. ONS Digital (2016) assumes that “in 2015 44% of the UK’s goods and services were exported to the EU”. The general trend, however, is that trade within the EU has altered drastically up to 30% since 1992 and continue to do so. What is more, removal of customs barriers meant that possibly around 60 million customs clearance documents per year were no longer needed to be completed as well as cutting bureaucracy has reduced costs at delivery times. Thus, Graph 2 (see Appendix) shows that the European Union has attracted great inward investment from outside of the EU (£106.5 billion), which has led to the successful implementation of the economic

Related Documents