Summary Lecture Notes Introduction to EU | YB1255 | Thomas More Hogeschool | 2025/26

R1059561 EU Business Topics Toufali Myriam


Introduction to the EU
Why should we study EU Business Topics?
 Still one of the regions in the world which creates the highest GDP.
 GDP = Gross domestic product (BBP) => producten + goederen op 1
jaar
 Europe is a melting pot of cultures, history, business, and industries that
however live “peacefully” together.
 Een melting pot = plaats waar veel verschillende culturen,
nationaliteiten, tradities en ideeën samenkomen en zich mengen.
 For most of Europeans the EU is their first “natural” market
 The EU is a wonderful (although not perfect) invention that has created lots
of opportunities, not only for European countries, but also for others.
Everybody today thinks of the EU as something “logical,” which has always been
there.
 When you were born, the EU already existed (most of you were probably
born in the EU)
 A lot of people have no idea at all how many advantages the EU offers
and that our ‘moderate wealth’ is largely thanks to the EU.
 It took many years, willingness, courage, and efforts of many people to get
where we are:
 Single Market: 1993
 a free market, no restrictions, you can move around
 Schengen: 1995
 no border controls, no customs, free travelling
 Single Currency: 1999/2002 (started 1992)
 no more worries about currency rates, and leftovers when visiting
the country.
 Free Roaming: 2017
 chatting in Europe as the same price in your home country
1st World War (1914-1918)
 few countries, but large ones
 2 blocks:
 GB, FR & Benelux Versu
 Germany-Austro-Hungarian Empire s
 1914:
 murder of the archduke Franz-Ferdinand by
Serbian nationalist
Consequences 1st world war
 Germany declares war on Serbia, afterwards on
Russia and France
 to get to France, Germany passes through Belgium, which gets also
involved.
 Great Britain, ally of Belgium, also enters the war.
 17 million deaths! (The Netherlands completely wiped out)
 4 empires disappear:
 German Empire,

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,R1059561 EU Business Topics Toufali Myriam


 Austro-Hungarian Empire,
 Ottoman Empire
 and the Russian Empire
 new (old) countries (re)appear.
2nd World War (1939/40-1945)
 a direct consequence of the 1st World War and the Treaty of Versailles
 Germany, Italy, Hungary, and Rumania against the others
2 World Wars:
 WW1: the “War to end all wars”
 WW2: the biggest conflict in human history
Postwar period (1945-2006)
 reconstruction
The cold war (1945-1989)
 Stalin increases his influence and power.
 Germany is split in two.
 Stalin refuses the Marshall plan.
 Europe is divided in 2 blocks, politically and economically.
May 9, 1950: “Schuman Declaration”
 proposal to put the production of steel and coal under a single command.
 necessary for the arms industry and therefore for war
 European awareness of the loss of its hegemony after the Second World
War to the benefit of the USA and the USSR
 ESCS = European Community of steel (= factory’s) and coal (=
energy) => start of the European image
Contemporary history of Europe:
 1957: Treaty of Rome, creating the EEC: European Economic Community
 1986: Creation of the Common Single Market = free movement of people,
goods, services, and capital
 1992: Treaty of the European Union (Maastricht), adding foreign and
security policy, and justice and interior and ... the Euro!
 2004-2005: Treaty of Nice
2007: Treaty of Lisbon
 More institutional power:
 more power for the parliament
 votes by qualified majority => is a conjurity based on conditions
 I need more, I need 55% (>,15) = 50 member states (Netherlands,
Ireland, Luxembourg => the small states) + 65% EU population
 2 conditions: 55% member states representing 65% of the
population.
 Democracy and rights: Brexit wasn’t even
 withdrawal procedure possible before
 Charter of Fundamental Rights becomes binding. 2007!?

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,R1059561 EU Business Topics Toufali Myriam


 Europe as a global actor:
 legal personality
 High representative of the EU for Foreign Affairs
2020:
 the UK leaves the European Union… it is the first time in the history of the
EU that a member country leaves …
 => what happens next?
What is the European Union?
 on MARCH 25th, 1957, six European countries signed the founding treaty
of a new sort of international club, today called: the European Union
 1957: EEC = founding members
 Belgium, France, The Netherlands, Luxembourg, Italy, Western
Germany => 6 countries signed the founding treaty
 2026: 69 years old
 economic and political union
 constituted in the post war period in order to, a.o., secure peace in
Europe.
What is the European Union?
 creation of a single market: 28 countries, 513 million people
 single market after Brexit: 27 countries, 447 million people
 creation of a single currency, the EURO: 21 countries, 358 million people
 was able to integrate both ex-dictatorship countries from the South and ex-
communist countries from the East.
 Dictatorship countries in Europe: Spain, Portugal, Greece
 Communist country: Poland
 high degree of economic freedom (goods & services, capital, people)
What is the EU and why should we bother?
Most EU-countries conduct
 For people/companies in the EU: the largest part of their
 one big single market export business with other
EU-members.
 (447 million people minus your own country)
 extremely easy to do business with other countries (no trade barriers)
 free movement of goods, capital, and people
 one common policy towards the external world
What are trade barriers?
 Trade barriers are rules or costs that make it harder for countries to trade
with each other.
 Examples: Import taxes on foreign products
What is the EU and why should we bother?
The EU, with a high
 For people/companies outside of the EU: average GDP/capita is
 one big single market (447 million people) considered as one of the
 same entry conditions from all sides (bv Congo, Thaiwan)
most interesting markets
 harmonization of laws and normatives for most outsiders.



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, R1059561 EU Business Topics Toufali Myriam


 collaboration programs between the EU and other “Unions” or
“blocks.”


What about the rest of Europe?
Today is of course very different:
 EFTA plays only a marginal role, and the EEC has evolved into the EU,
which now has a population of over 447 million in 27 countries.
 European Free Trade Association = EFTA
 Today, in terms of population and economic output, the EU is Europe.
 without the UK in the EU, of course it changes somewhat.
 The EU, as a Group, is expected to remain important:
 even without the UK, it is big in terms of GDP and purchasing power.
 it can become bigger...
 all the rest of Europe (excluding Eurasia) consists mostly of smaller
Eastern Europe countries with very low GDP/capita…
 …which are exactly the countries that want to enter the EU (Albania,
Montenegro, North-Macedonia and now Ukraine and Moldavia are
also official candidates)
2026:
 The EU is 69 years old.
 But … faces big troubles, both internal and external threats
What are some of the important challenges for the EU?
 Rise of populism/extreme right in Europe
 Far right parties get populism.
 Brexit – the never-ending story
 Started as a popularity contest
 How strong is the EU?
 War in Ukraine – how long can we stand it?
 Pressure from the East: Russia, Belarus, Turkey
 Pressure from the West: US turns its back on Europe.
 TACO = Trumps Always Chickens Out
 Turmoil and wars in Middle East and Africa
 Immigration (-crisis), energy crisis, climate change
 Inflation = Ur losing purchasing value, it is a criterion the ECB looks at.
 Recession?
 Recession: if the GDP income goes down, salary is going down
 Recession doesn’t last long (2 à 3 months), but recovery is very hard.
 EU expanding?
Challenges
 the EU has to “reinvent” itself in order to be able to survive.
 important restructuring is one of the main priorities.
 strong leadership is needed.
Symbols
 Princess Europe => ZEUS + Princess = Ninos (Zoontje)

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