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February 5, 2008 |  Print  Your Research  

Term Paper: EU Action and Global Economic Stability

Christian Andreas Morris: On balance the economic decisions of the EU benefit the world economy, despite the fact that some its policies could be interpreted as protectionist.

The development of such EU directives such as the Common Foreign and Security Policy (CFSP) have been the subject of international concern given that the EU as a whole now exceeds the economic strength of the US. However the concept of "fortress Europe" is largely untrue especially today.

The EU has done much to cut down its protectionist policies. Formerly the Common Agricultural Policy (CAP) represented a real barrier to developing countries. This system led to dumping in regions such as Africa undercutting the prices of their agricultural goods. This partially offset development aid from the EU. But the EU is doing much to decouple the subsidies from agricultural production, and basing them on new aspects such as environmental protection.

The EU has been of great benefit to its newer members, whilst also holding free trade agreements with a number of other states. The EU is actively encouraging the development of other regional organizations and is keen to develop free trade with other unions such as MERCOSUR. Ultimately the EU is an organization committed to the principle of democracy, economic development, and the improvement of social welfare worldwide.

 

 
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