European union in the globalised world

Abstract

The European Union (EU) as a regional entity is embedded in the process of globalisation. Since the entry into force of the Lisbon Treaty on 1 December 2009 the EU has increasingly emancipated itself from a “political dwarf” to a political “global player”. Although Europe’s supremacy in world trade slowly begins to crumble, the EU is still a “world trade superpower.” The euro has become the second most important reserve currency since its introduction in 2002. The EU maintains an extensive network of bilateral free trade agreements (EU’s “spaghetti bowl”). To shield against the dangers of globalisation, the EU runs several strategies. Firstly, due to the continuing enlargement the EU’s internal market is getting larger, which is equivalent to an implicit foreclosure of third countries. This immunisation effect is reinforced by the expansion of the euro zone. Secondly, the EU’s competition and anti-dumping policies are very effective in ensuring fair competition in the EU internal market. Losers of the globalisation get support from EU’s globalisation fund.