Eu Membership Advantages And Disadvantages To Uk Economy Economics Essay

Eu Membership Advantages And Disadvantages To Uk sparing Economics EssayCreating a train playing subject for backing wind crossways atomic publication 63 requires harmonised legislation in some(prenominal) an(prenominal) atomic number 18as of prevail and life, from social policies to health and safety legislation to the regulation of advertising. What looks f blood line to approximately flock seem heavy-handed to former(a)s. Getting the right balance demands aeonian constructive engagement. Successive British governments engender had little doubt that the make headways to the UK economy outweigh any problems, and make it important to continue to push front our role in the EU.The EU has cemented tranquility between European nations subsequently centuries of involution. It has used that peace to build the gravidst genius merchandiseplace in the create ball, bringing corkinger prosperity to alone subdivision states (including the UK). When the whole of Eu rope speaks together we see more than than clout on the world stage. sounding out in the world today we squeeze out see sound growing economies such as China and America, both feed millions of inhabitants and cockeyed currencies. With the EU pieceship in place and more joining the UK entrust stand a greater chance against these two large forces. We be stronger in throw negotiations if we negotiate as one stintingal bloc, and diplomatical initiatives, designed to improve our security, cornerstoneful be more effective with the hurt of European partners.As well as economic profits joining countries together in union with each other forget hold many political benefits. Its founding is a step towards European integration, to pr heretoforet war in the union. Its a well known f human activity that countries that trade effectively together dont betroth war on each other, this meat peace throughout Europe and beyond (we hope). Nato and the alliance with the fall in St ates remains the insure of defence for most European countries.Access to EU bloodlines excess funds and grants be avail commensurate to businesses in prep atomic number 18 to improve economic welf ar in high unemployment and divest areas. The European Social Fund departs funds for vocational training, helping to create theorises. The programmes work through top spending on transport and other infrastructure, and on training plurality and helping them learn raw(a) skills. Several parts of the UK have benefited from these funds, including Union Ireland, the broad(prenominal)lands and Islands of Scotland, Cornwall and the Scilly Isles, Merseyside, South Yorkshire, and West Wales and the Valleys.Freedom to trade and workThe whizz European merchandise is the worlds largest free trade area. Europes businesses enjoy a home commercial-gradeise of 490 million people, selling goods and assistances without tariffs or other trade restrictions, and to parkland safety standards. The market has created more hawkish services, greater choice and light prices, supporting wealth and job creation. It has lowered business costs, and opened novel opportunities. 67% of UK trade is within the EU (compared to 16% for the USA), and the UK benefits from inward practicement funds from companies within the EU.For many it has in addition increased the burden of red tape. such(prenominal) regulation is one of the areas where Britain is looking for improved performance. The delegacys snap off regulation schedule is starting to see results, assessing the impact of naked as a jaybird regulations, simplifying and even cancelling exist ones. nigh whitethorn argue that the main benefit of the EU is free trade. just about argue back that the UK could retain the benefits, even if it left. For example, Switzerland is not in EU except benefits from EU trade.Co-ordinated economic policiesThe EU leaves a forum where constituent countries can share best practice and lea rn from others experiences helping to moderate that European businesses can contest effectively in global markets underdeveloped the right infrastructure for a successful modern economy.Although some whitethorn favour the brand-new infrastructures others shape them less appealing or find them-selves less suited to the change. Like the UK government favours adopting the Euro in principle, only when leave behind only join when the economic conditions are right. Others alleviate disagree the Euro should be adopted at all.Freedom, security and justiceEU process countries are working together to create an area of granting immunity, security and justice across Europe. All of the member countries, except the UK and Ireland, have agreed to scrap their redact controls with each other. They allow citizens to travel freely without checks at the internal ensnares. The UK and Ireland have a right to choose whether to sign up to EU laws on b regularise controls, immigration and asylu m. The UK and Ireland play a proactive role with other member states in working to tackle illegal immigration and deprave of the asylum system.Increased Immigration as a single market requires free apparent movement of labor. This has led to an in bleed of immigrants from Eastern Europe this has set(p) a strain on housing and other amenities in the UK.Common Agricultural insurance policy ( thug)The CAP has been remedyed, but arguably it still is an inefficient method of subsidizing the declining agricultural sector. For a long time the EU has maintained target prices for agricultural goods above the market price this has respective(a) disadvantagesHigher prices for consumersHigher Tariffs on Imports required, this has been a stumbling block to tradeHigh prices encouraged oversupply. EU had to buy surplus that was created.Expensive for EU Taxpayer. CAP budget accounts for nearly 50% of total EU budget. It costs UK 14 billion per year.The CAP alone is 50% of the EU budget, and c osts the UK 14 billion per year, with most of this money going to French farmers. The EU subsidises farmers, but penalises them for growing too a good deal which leads to higher(prenominal) food prices. The UK has a relatively small but efficient agricultural sector in that respectfore it benefits the least(prenominal) from CAP.Higher Utility Prices and EU LawEU law allows strange companies to buy UK utility companies, who then s sanction to over bang us. The EUs high renew adequate to(p) capacity targets result cost British families 750 in higher cogency prices. Water bills are similarly rising by 20%, because of new EU regulations. Laws organism obligate on UK businesses and citizens from decisions made in Brussels, which may benefit some member states but have a oppose impact on the UK.Action on the environmentOn the environment, it is full of life to work together to tackle serious common problems that cross internal borders, such as pollution. The EU is strongly committed to sustain equal maturement and the Kyoto agreement on tackling climate change. Action to tackle environmental problems can create jobs and benefit the economy, for example by encouraging companies to make renewable-energy technologies resembling solar panels, hydrogen cells and wind turbines. This testament help make the EU a leader in a growing global market.seek one area of economic activity in the UK which EU social station has and does affect.The Carphone warehouse (CPW) was founded in 1989 to bring mobile services to consumers. They have openhanded from a handful of stores operating exclusively in the UK, to a European-wide computer program of over 1500 stores in 10 countries. The EU gives the UK get to to the worlds largest single market consisting of 27 countries with over 490 million authorisation customers.CPW care all UK businesses presently have access to trade freely in all of the 27 member states. Thanks to the EUs free trade area and a usance dut y union the whizz market whole works for businesses by ensuring that everyone is competing on a direct playing field and able to move resources freely amongst member states. The EU promotes free trade among member states while acting as a protectionist bloc against the rest of the world.The customs union of the EUEstablishes a free trade area between states.Erects common external tariffs to charge on imports from non-member countries.Free trade areas have been achieved by the elimination of trade restrictions. Many businesses like CPW have found this to open doors into new markets. governing body figures in fact show trade within the EU has move by 30% since 1992. Without out these areas many businesses including CPW would not be able to trade goods and services with the rest of Europe (or do so as easily). As well as free trade the common market also means complete mobility of funds and cut into. A British citizen has the freedom to work in any of the European countries and v icar versa. For CPW this provides the skills of compass required to compete efficiently and the probability to gain EU funds if necessary.The absence of border bureaucracy has cut delivery times and decrease costs. Before the frontiers came down, the revenue system alone required 60 million customs headway documents annually these are no longer adopted. For CPW and traders alike it means there is no need to submit any tax declarations or customs declarations at all.Increase in trade and increase in competition, these factors get innovation and better efficiency between firms. This in turn not only benefits the consumer but improves infrastructures and communication. With IT and telecommunications improved and more accessible CPW is able to vivify up distribution times for example. The increase of common standards for equipment means being able to invest and operate in distant EU countries is fitting easier and less risky.Firms that learn to compete more effectively can bene fit from economies of scale.Open trade policy makes EU firms match the world bestStable exchange rates cement the internal market.Internal market linguistic overtops embody a high aim of environmental protection.Basic workplace rights, allow for bring economic prosperity accompanied by better living and working conditions.(this however is argued y some people to be bad for business).The road haulage market is being liberalised by eliminating bureaucratic red-tape. Shipping services between member countries are also to be provided on equal terms and as competition on air routes increases the result should be lower fares. For CPW the transportation of goods from one country to some other has be nonplus easier and cheaper.Lower fares could benefit businesses in bundles of ways, through tightend costs in flights for business meetings or travelling to and from premises in the EU, reduced costs in transporting goods from one country to another and service businesses could benefit from more people travelling (tourists) due to cheaper flights. Banks and securities houses are able to provide banking and enthronisation services anywhere in the EU allowing for legion(predicate) opportunities for suppuration and intricacy.Elimination of trade restrictions covers the following areasPhysical barriers (e.g. customs inspections) on goods and services have been removed for most products. Companies have had to adjust to new VAT regimes as a consequence.Technical standards (e.g. for quality and safety) should be harmonised.Governments should not discriminate between EU companies in awarding public works contracts.Telecommunications should be subject to greater competitionIt should be possible to provide financial services in any country.It should be free movement of capital within the communityProfessional qualifications awarded in one member state should be recognised in others.The EU is at victorious a co-ordinated stand on matters related to consumer protectionAl l of these factors present towards a level playing ground making it fair and competitive for business to run. In all, a mutual recognition principle means that in most cases companies can do business across the EU by complying with the rules in their home Member State. contend how EU institutions can benefit a UK nerve.EU institutions can benefit UK businesses in many ways their main aim is to ensure that everyone is competing on a level playing field. In order to achieve this level playing field the countries that make up the EU remain independent sovereign nations but share in the decision making process and work together to make sure legislation and regulation is carried out. The EUs decision-making process in prevalent and the co-decision procedure in particular involve three main institutionsThe European fantan (EP), which represents the EUs citizens and is directly elected by them.The Council of the European Union, which represents the individual member states.The European Commission, which seeks to uphold the interests of the Union as a whole.This institutional triangle produces the policies and laws that apply throughout the EU. In principle, it is the Commission that proposes new laws, but it is the Parliament and Council that adopt them.The Commission and the member states allow for then implement them, and the Commission ensures that the laws are properly taken on board.Two other institutions have a vital part to play the Court of Justice upholds the rule of European law, and the Court of Auditors checks the financing of the Unions activities.The powers and responsibilities of these institutions are laid down in the Treaties, which are the foundation of everything the EU does. They also lay down the rules and procedures that the EU institutions must follow. The Treaties are agreed by the presidents and/or prime ministers of all the EU countries, and ratified by their parliaments.It is The European Commission that acts as an executive director of the EU. The commission is first and foremost the guardian of the treatise. It is an impartial body which sees to it that the treaties, and decisions base on them, are correctly applied. It can initiate infringement legal proceeding against any member state and may, if necessary refer matters to the European appeal of Justice. It can also impose fines on individuals or companies, notably when they act in b win of the commissions completion rules.The main tasks of the commission are to examine that community rules and principles of the common market are observed.Make policy proposals to the council of ministers obligate the execution of instrument of legislationAdminister Community expenditureEU op face PolicyThe purpose of the EU Competition Policy is to defend the SEM Single European Market, eliminating restrictive practices.Stifling competition (EU has rules to prevent this)Collusion by price fixing and cartels (article 81)Miss allocation of resourcesProtects inefficient firmsReduces technical developmentBarriers to entry of new firmsTo prevent the abuse of a dominant position (article 82)To regulate acquisitions and mergers (European Merger Control Regulation 1989)Restrict state aid to Indigenous firmsGovernments shouldnt be bailing out lame duck businessesState aid Commission can prohibit if it adversely affects the EUEnsures governments do not unfairly favour their own national businessesThe EU Social PolicyThe aim of the EU Social Policy is to create a level playing field and covers legislation that coversEqual opportunities for men and womenWorking conditions health and safety at work(All of this contributes to the harmonisation of working rights and employment conditions)The European Social FundWas setup to invest in high unemployment and deprived areas, to provide funding for vocational training and help create jobs. Businesses are able to funding to invest in deprived areas and may be eligible for further grants from governments.ConclusionT his means that in most cases thank to the EU institutions companies can do business across the EU by complying with the rules in their home Member State. This saves time and also creates a nose out of standardisation in which all competition is not stifled by one country having an advantage and all domestic competition is seen as fair.Explore the drawing card of EU membership to authorization membersThe further elaboration of the EU benefits be member states. With each previous enlargement the EU has emerged stronger, more confident and more capable of acting on the world stage. Importantly, an enlarged EU give help us tackle threats which cannot be confined by geographical borders, from climate change and organised crime, to the fight against terrorism. Close cooperation with our neighbours is a major force for dealing with such challenges. Whilst this explains how the existing states have benefited it should also highlight the benefits of further unity. Potential members will benefit in the same way.Who are the candidate members?Croatia misfireFormer Yugoslav Republic of MacedoniaFurther enlargement enhances economic efficiency, drives innovation, provides funding and a level playing field for business. For example, by increase its internal market Turkey will improve their ability to meet the challenges and opportunities presented by globalisation.Many of the newer members of the EU have economies with much lower costs, making them attractive sources of production for businesses in this country potential candidates will be in same feature or will benefit from work. If they join many workers from their states will surveil to work in the UK where wages will more than likely be higher, as well they will have access to the rest of the EUs states. For their economies membership to the EU is a means of stability growth.An enlarged EU also invites wider and richer cultural discussion and creativity. An exciting example of this is Enlarge your Vision the 20 10 early days Journalist Award launched by the ECs directorate general for Enlargement.ConclusionThe attraction of EU membership to potential countries can in fact be placed into two main partsEconomicsSecurity.To conclude this, it can be seen that there are many advantages for a nation to constrain a member of the European Union. This is supported by the Cecchini report, which gives a deepen of evidence to believe that there is a significant increase in gross domestic product as a result of the common market produced by the integration of EU Countries. Obvious outcomes of a rise in gross domestic product will increase the standard of living in these EU countries.Discuss the possible enlargement of the EU and the factors impacting on such possible Enlargement. whatsoever European country which respects the principles of liberty, democracy, respect for human rights and fundamental freedoms, and the rule of law may apply to become a member of the Union. The pact on European Union sets out these conditions.Next in order to apply they need to fulfil the economic and political conditions known as the Copenhagen criteria, according to which a potential member mustBe a stable democracy, respecting human rights, the rule of law and the protection of minoritiesHave a functioning market economyAdopt the common rules, standards and policies that make up the body of EU lawThe EU will assist potential countries in taking on EU laws and then they will provide a range of financial assistance to improve their infrastructure and economy.The potential benefits and problems of enlarging the EU are likely to come from many directions. Ranging from the beneficial outcomes of increasing economies of scale, to the potential danger that poorer EU nations will have to receive large budgets from existing EU nations. In addition, the EU must be able to integrate new members it needs to ensure that its institutions and decision-making processes remain effective and accountable it nee ds to be in a position, as it enlarges, to continue maturation and implementing common policies in all areas and it needs to be in a position to continue financing its policies in a sustainable manner. other key component of integration is harmonization of key areas of policy involving coordination of policies on business and competition regulation, environmental policies, taxation, and fiscal and monetary policies.The threats to existing members are as followsExisting members are afraid that their markets will be swamped by cheap imports from these countries. The markets which are most at risk are politically sensitive markets, such as agriculture and textiles, where the EU has traditionally imposed high tariff barriers to protect domestic industries.There is a idolise that the contributions of rich countries to the EU budget would rise considerably following enlargement. If much poorer countries join the community, and regional and CAP payments are maintained. It is inevitable that there will be large budget transfers to the new members, paid for by existing members.Some countries fear that enlargement will delay plans to move towards even greater economic and political union. It would be difficult, for instance to implement a single currency in 1999 if in that year three countries fall in the Union.Movements of labour and capital can also pose problems. There is a fear that capital would move to newly joined cheap labour countries whilst workers would move in large numbers from these countries to existing member countries, attracted by much higher wages .These points indicate large potential problems of new members joining the EU. The main one possibly being the inability for nations to reach Total Economic Integration. The reason behind this may lie in the fact that assorted economies in the EU will require different monetary and fiscal policies. While countries like the UK may need higher interest in order for people to save money and reduce consumpt ion in order to wane inflation, a country like Hungary would require a lower interest rate in order to increase consumer expenditure and increase aggregate demand, hence increasing GDP. These problems are likely to cause conflict among policies. It is also shown that the UK, France and Germany have a coarse advantage in terms of GDP in comparison to the Czech Republic and Hungary (potential EU members). This causes concern regarding the requirement for a convergence in economies within the EU regarding monetary policy.In June 2008, the French President Nicola Sarkozy and German Chancellor Angela Merkel said that the EU cannot enlarge beyond 27 states without advance of the institution of the current Treaty of Nice rules. Such a reform would happen if the Lisbon Treaty comes into force.Assess how enlargement of the EU may affect UK business in general and a specific organisation in particular.In this part of essay we will investigate how expansion of the EU will affect Carphone War ehouse in the future.The enlargement willBring down barriers to trade and business. UK companies will benefit from access to the largest single market for trade and investment in the world.Benefit UK consumers, giving them access to a wider range of goods and services at lower prices.Encourage GDP growth in both the candidate countries and the present EU 15. contract institutional changes within the EU itself.It also concludes thatThe success of enlargement depends upon candidates being properly prepared so that they enhance the single market. Effective implementation of single market rules is vital and will help the candidates compete in the EU.Extending the single market will not just increase the number and scope of opportunities it will also simplify doing business, as candidates introduce EU legislation and practices. This aim is reflected in the EU position that any rebirth periods granted to the candidates on entry should be exceptional.EU-funded pre-accession programmes off er real commercial opportunities for UK firms.As their economies grow and their consumers become more prosperous, the candidate countries offer great opportunities for UK trade and investment. Market liberalisation in areas such as telecoms and energy should also accelerate this process.The potential benefits and problems of enlarging the EU are likely to come from many directions. There are three main aspects of enlargement we will be looking atCommercial opportunitiesCheaper labours forceInvestment.Commercial opportunitiesAs CPW is a UK organisation and already well established they will be faced with a lot of commercial opportunities by expansion of the EU. With more countries added to the EU they will of course be able to reach more customers.The immediate goal of the 1957 treaty of Rome was the establishment of a single or common market. If Turkey becomes a member state of the EU, they need cancel obvious barriers to trade such as tariffs or duties firstly. Then, it also should removal non-tariffs barriers which should also be integrated with current of the EUs policy. Therefore, the products of British companies will go into new and big market easier than before. They also can invest into new member states in which will have a lot of new investment opportunities. Therefore, now we can say the expansion of the EU into Eastern Europe can increase export opportunities for British companies.Cheaper labour forceFor British companies including CPW labour force will be cheaper. As the UK has a high living standard more and more cheaper job seekers, who are living poor Eastern Europe nations, will flow into British labour market. This means CPW can hire workers with low wage requirements. This will allow them then to reduce working costs so the can increase their products competitive advantage.InvestmentAccess to more investment. The United Kingdom is still one of the most important financial centres in the world,The integration of the Central and Eastern Europe an countries into the European Union is a win situation The integration will increase wealth and prosperity in the new Member States and will stimulate economic growth in the current member states. An extra 100 million consumers will be part of the Internal Market. The remaining tariff barriers between the countries will be removed. Legal and technical trade barriers will vanish. The possibilities for trade and investment will be further enhanced and the expected high economic growth rates will radically enhance the purchasing powers of consumers in the candidate countries. Increasing trade will be a of import contribution to the functioning of the enlarged the EU and the economic development of the sinless continent.The enlargement has special significance for the United Kingdom. For the new members, accession to the EU implies great potential for increased trade and cooperation. This is a golden opportunity for British companies. During the last 10 years many British exporters a nd investors have secured strongholds in these markets, increasing exports dramatically. The present research shows, however, that the current level of trade only scratches the surface and that British trade with the new member countries can be multiplied many times over.