Essay about The European Economy

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The Europe economy is performing not as well as it should but still Europe is important trading and marketing region in the world. It has 20 per cent of the total trade in goods and 25 per cent of the total trade in services. The Europe is also the largest source of inward and outward FDI. Member states of European Union have some commons and differences. All member states have accepted a common legal framework, the economic structure is broadly similar, agriculture has declined = 2 % of GDP, industry has also declined = 20 % of GDP, services dominate = financial, business services, tourism, public services, all Member States have mixed economies with (some degree of) social protection and private owned companies trading
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The absence of powerful supranational and intergovernmental decision-making organization proved it difficult to make improvement on the more insubstantial barriers to free movement of goods, labor, services, and capital such as regulations, professional standards, relentless protectionist attitudes and different fiscal regimes. In 1973 and 1980 the oil crises resisted protectionist attitudes where they survived. The outcome was that during the 1970s and early 1980s, rise in the European Union member states started to insulate critically behind that of international competitors. Efforts to form a single market had limited success. Per se, in 1985 a White Paper was issued approved in the Single European Act of 1987 recognizing some 300 measures that would have to be dealt with to complete the Single Market and setting December 31, 1992 as the deadline for accomplishment. The new powers vested to the institutions of European Union by the Single European Act enable this goal achievable ($366685.htm).

The European Competitiveness Problems

A competitive market is in which products and companies are free to enter or to exit. The competitiveness problem is becoming a critical issue for national and international market. European markets are also facing competitiveness problems to some extent. The competitiveness difference between

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