The Most Important Issues Facing the European Union - Essay Example

WHAT ARE THE MOST IMPORTANT ISSUES FACING THE EUROPEAN UNION TODAY AND WHY? Introduction The European Union is an integration of many different s within Europe that have different histories, institutions, political system and economies. Almost 450 citizens in the European countries depend on European Union for its economy (Leonard, 2005). In addition to this, other countries such as Africa, Middle East and Soviet Union depend on European Union for its trade, finance and investment aid. Many historians as stated by Leonard (2005) have said that European Union has been in crisis state since its inception. But even with the crisis, European Union has emerged strong and steady in the global arena. But in the 21st century European Union again faces issues due to the global downturn. Issues Faced by European Union The European Union today has to face many challenges and issues not just from internal sources but external as well. Many issues were discussed by Barroso (2007) in a speech at the European Parliament. Most of these issues were regarding economic reforms, jobs, social justice, innovation and climate change. The most important issues European Union faces in this century are as follows: Unemployment A biggest problem faced not just by the European Union but by the globally economies is of unemployment. According to Barroso (2007) European Union has over 20 million unemployed people most of which are young people. According to Modigliani (2005) such rates of unemployment can lead of wastage of resources, loss of output, and loss in savings and investment in the country. In addition to this, unemployment can be discouraging and degrading for people with long run consequences for young people and social tension (Modigliani, 2005). For this reason, unemployment is an important issue for the EU countries. Bertola (2000) argued that behind an unemployment rate there are many reasons which include labor market participation rates, wage inequality, employment dispersion across regions and market performance. The labor market performance is guided by government and institutional policies in the European Union which control minimum wages, taxation and unemployment benefits (Bertola, 2000). The European Union countries issue an unemployment benefit rate ranging from according to Bertola (2000) 60% to 90% of their previous wages. Room (2006) and Barroso (2007) argue that there are although many ways to reduce unemployment such as wage differentiation and geographical mobility (Bertola, 2000), such measures could alter the economic and political equilibrium currently in place in the European Union. Elimination of unemployment subsidies across European Union countries could reduce unemployment but will increase the poverty rate and crime rate which is referred as social exclusion (Wallstrom, 2007). All these repercussions have caused alarming concerns for public and politicians alike in the European countries as they try to find some reform that could lower the rate of unemployment with minimum repercussions on the economy and social life of the people. Access to the member countries products and capital and labor could provide economic efficiency but the levels of regulation will become hard to sustain. In response to the growing unemployment problems, EU Commission has proposed some measures such coordinating all the countries growth and job strategies; investing in research and development to 3% which can enable creation of products and thus creation of jobs in the process (Wallstrom, 2007; Barroso, 2007). This can be a difficult task to achieve given the heterogeneous social and economic structures of the European Union countries. Climate Control Changes due to climate variations are arising around the globe raising the concerns about ecosystem alterations which includes food production and water supply (Schroter,). For example as noted by (Berkhout, 2005) harvest failure in some parts of the country can impact the food commodities price in European Union due to imports. For the implementation of environmental friendly policies a step taken by world economies was the Kyoto Protocol to bring the greenhouse gas emissions under control (Brandt, 2001). Beniston (2004) stated that the heat wave in 2003 that affected most of the European countries may be more intense in the 21st century. Summer temperatures due to enhanced atmospheric concentration of greenhouse gas can rise by 4’C on an average with increase in the heat wave frequency (Beniston, 2004). According to Christiansen & Wettestad (2003), EU is one of the largest greenhouse gas emitter in the world accounting for 25% emissions. In addition to this, EU expects that there will be a 0.8% increase in CO2 emissions annually (Brandt, 2001). One of the issues that EU face in addition to the gas emissions is failure of adoption of carbon tax by many members of the European Union due to many rules and regulations incorporated in the policy (Christiansen & Wettestad, 2003). Use of fossil fuels adds to the global warming that can have long term affects on the climate and overall life globally. Kruger & Pizer (2004) points out that emission increase due to transport sector raises another issue for EU trading system. The growth in emission can impact the allowance prices if the government, according to Kruger & Pizer (2004), tries to meet the Kyoto targets by using offset purchases. Another issue of concern is the growing carbon market in European Union which needs to be monitored to reduce emissions in the air (Howse & Eliason, 2008). If the carbon market is not controlled then the emissions can result in drastic climatic changes adding to global warming. According to Kruger et al. (2007) European Union launched an emissions trading program in 2005 to meet the Kyoto targets for controlling climate change. But the EU Emissions Trading System (EU ETS) is complex that is causing member European Union countries to face political and economical challenges in meeting the Kyoto targets (Kruger et al. 2007). Howse & Eliason (2008) states investigation of Financial Times which found that many companies in EU receive carbon credits due to efficiency gains from which they have already benefitted is causing unfair subsidy distribution in EU countries. This is an issue because these companies’ results do not coincide with emissions reduction (Howse & Eliason, 2008). European Union needs to devise strategies to regulate such issues. Security Another issue faced by the European Union is threat of security. According to Kicinger (2004) internal threats to EU are less important when compared with the external threats that it faces. This is because these threats cannot be predicted. One such threat is terrorism. According to Wallstrom (2007) and Barrosa (2007), Europe’s policy with passport-free travel is although great for business and tourism but this policy is providing prospects for cross-border criminals and terrorists. Terrorism is an issue because lives are at risk; there are large costs of keeping a check on it which if not handled properly can pose a threat to the European Union. According to Schilder & Hauschild (2004) European Union countries are also base and target for terrorists’ attacks. The terrorists are have well maintained resources, networks and can use unlimited violence. Reports have said that Al Qaeda’s logistical cells have been uncovered in European Union countries of UK, Germany, Italy and Spain (Schilder & Hauschild, 2004; Kicinger, 2004). This makes concentrated efforts of European Union to tackle such problems crucial. Another security concern is the technological advancements in weapons such as guns and missiles which could add instability to the security measures undertaken by EU. Flow of trade and investment within the European countries and with the world has given rise to prosperity to people. In spite of the advantages that trade has brought, it has brought internal threats as well. Europe is now used a proper base for organized crime such as trafficking in drugs, illegal migrants, women and weapons as well (Schilder & Hauschild, 2004). Cross border and neighboring threats can also add to the security concerns of the European Union. Problems in Kashmir, Great Lakes and Korean Peninsula as described by Schilder & Hauschild (2004) also affect the European countries directly and indirectly. European Union Commission has committed itself to many treaties and provisions to counter the security threat. Foreign policy and crisis management have provisions for security such as securing borders with member states and with international countries more effectively (Barroso, 2007). In addition to this, European Union is trying to forge policies with transatlantic partners for minimization of security threats which is a difficult task to achieve. Conclusion The issues discussed above are not only faced by European Union but are faced by many other countries on global scale. The impact of these issues on the European Union is great because it is one of the leading economies in the world. Many countries such as European Union are tackling these issues at various levels given their capacity. As the European Union enters the 21st century, it has certain goals and objectives on how to deal with the issues it faces. To tackle unemployment, labor mobility between member countries is considered, different measures are being taken to achieve Kyoto targets and most of all strengthening relations internally and externally to end terrorism and other security threats. BIBLIOGRAPHY Barroso, J. (2007). ‘Debate on the informal Council in Lisbon’ Speech at European Parliament. Beniston, M. (2004). The 2003 heat wave in Europe: A shape of things to come? Geophysical Research Letters, Vol. 31, Berkhout, F. (2005). ‘Rationales for adaptation in EU climate change policies’ Climate Policy, Vol.5 (3). Bertola, G. (2000). Europe’s Unemployment Problems. Economics of the European Union, 2nd edition, Oxford University Press Brandt, U. (2001). ‘Hot air in Kyoto, cold air in The Hague’ Department of Environmental and Business Economics IME Working Paper 22/01 ISSN 1399-3224 Christiansen, A. & Wettestad, J. (2003). ‘The EU as a frontrunner on greenhouse gas emissions trading: how did it happen and will the EU succeed?’ Climate Policy 3 pg 3–18 Howse, R. & Eliason, A. (2008).‘Domestic and International Strategies to Address Climate Change: An Overview of the WTO Legal Issues’ International Trade Regulation And The Mitigation Of Climate Change, Bigdeli, Cottier, Nartova (eds.), Cambridge University Press Kicinger, A. (2004). ‘International Migration as a Non-Traditional Security Threat and the EU Responses to this Phenomenon,’ CEFMR Working Paper. ISBN 83-920313-6-9 Kruger, J. & Pizer, W. (2004) ‘The EU Emissions Trading Directive: Opportunities and Potential Pitfalls.’ Resources for the Future: Discussion Paper. 04-24 Kruger, J., Oates, W. & Pizer, W. (2007). ‘Decentralization in the EU Emissions Trading Scheme and Lessons for Global Policy.’ Review of Environmental Economics and Policy Vol. 1(1):112-133 Leonards, M. (2005). ‘Why Europe will run the 21st century.’ Harper Collins Publisher. ISBN 0-00-719531-1 Modigliani, F. (2005). The Collected Papers of Franco Modigliani. Massachusetts Institute of Technology. Vol.6. ISBN 0-262-13150-1 Room, G. , (2006) "Challenges Facing the EU: Scope for a Coherent Response" Paper Presented at the Annual Meeting of the American Political Science Association, Marriott, Loews Philadelphia, and the Pennsylvania Convention Center, Philadelphia, PA Online from http://www.allacademic.com/meta/p151309_index.html Schilder, K. & Hauschild, T. (2004) ‘Civilian Perspective or Security Strategy?’ Friedrich-Ebert-Stiftung. ISBN: 3-937383-31-X Schroter, D. Ecosystem Service Supply and Vulnerability to Global Change in Europe. Science 310, 1333. Wallstrom, M. (2007). ‘Doing the job together? The EU, the US and the challenge facing us today’ Lecture at the John Hopkins University Read More