European Union economic
European Union economic
9th May 1951, six Western-Europe countries (Belgium, Italy, Luxembourg, Netherlands,
France and Germany) signed a treaty to run their heavy industries coal and steel under a
common management. From this economic cooperation agreement, European Union has grown
up. For today, the aim of this union has made 180º turn but the reason why more and more
countries are joining it is still same to rise the economy.
So how does it work? European Union is functioning like an independent country. It
collects taxes to reach its objectives. Taxes are collected mainly from member countries GDP
(1,1% of countries budget) but as well the import duties on good bought into EU. Also, every
member country is paying 0,1%-0,33% of their VAT (value added tax). It is the way how EU gets
its budget which is about 120 billion per year. This money is spent mainly to improve
agriculture (direct aid, export refunds, sto...