European Union - EU

AAA

DEFINITION of 'European Union - EU'

A group of European countries that participates in the world economy as one economic unit and operates under one official currency, the euro. The EU's goal is to create a barrier-free trade zone and to enhance economic wealth by creating more efficiency within its marketplace.

INVESTOPEDIA EXPLAINS 'European Union - EU'

The current formalized incarnation of the European Union was created in 1993 with 12 initial members. Since then, many additional countries have since joined. The EU has become one of the largest producers in the world, in terms of GDP, and the euro has maintained a competitive value against the U.S. dollar.

EU and non-EU members must agree to many legal requirements in order to trade with the EU member states.

RELATED TERMS
  1. Retention Tax

    A mandatory tax placed on income that is earned on investments ...
  2. Grandfathered Bond

    A classification for bonds in the European Union that excludes ...
  3. Euro

    The official currency of the European Union's (EU) member states. ...
  4. Dow Jones STOXX 50

    A stock index representing 50 of the largest companies in Europe ...
  5. Markets in Financial Instruments ...

    A directive that aims to integrate the European Union's financial ...
  6. Dow Jones EURO STOXX 50

    A market capitalization-weighted stock index of 50 large, blue-chip ...
RELATED FAQS
  1. How does quantitative easing in the U.S. affect the bond market?

    It is not entirely understood just how much, or even in what direction, the Federal Reserve's quantitative easing, or QE, ... Read Full Answer >>
Related Articles
  1. Economics

    An Introduction To The PIIGS

    Learn which countries are included in the PIIGS and why they are grouped together.
  2. Options & Futures

    Getting Started In Forex Options

    Stocks are not the only securities underlying options. Learn how to use FOREX options for profit and hedging.
  3. Forex Education

    Get To Know The Major Central Banks

    The policies of these banks affect the currency market like nothing else. See what makes them tick.
  4. Bonds & Fixed Income

    6 Factors That Influence Exchange Rates

    Find out how a currency's relative value reflects a country's economic health and impacts your investment returns.
  5. Personal Finance

    Budget Travel: Europe's Cheapest Countries

    Even with a strong dollar, Europe is pricey. Head east and you'll find four EU countries that deliver scenery, adventures and culture at bargain rates.
  6. Economics

    Are Greece’s Worries Almost Over?

    Last week ended with the news that Greece and the European Union (EU) finance ministers struck a deal to temporarily extend the Greek bailout program.
  7. Economics

    Why Is Ukraine At War? A Russian Rivalry With West

    Huge power games which are being played behind the Ukrainian conflict are rooted in a previous revolution, a past Cold War, and an old Russia-West rivalry.
  8. Economics

    Axis and Allies: US And EU Sanctions Against North Korea

    A look at the sanctions imposed by United States and the European Union on North Korea, along with their effectiveness.
  9. Forex Strategies

    Is Now the Right Time to Invest in the Euro?

    The euro has been falling...does that mean it's now a bargain?
  10. Forex

    The Pros and Cons of a Weak Euro

    The lingering Eurozone crisis has caused the euro to decline against the U.S. dollar. Who are the real winners and losers if the ECB adopts Quantitative Easing?

You May Also Like

Hot Definitions
  1. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  2. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  5. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  6. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
Trading Center