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Q: European Union ( Answered 5 out of 5 stars,   1 Comment )
Subject: European Union
Category: Reference, Education and News > Current Events
Asked by: isaact-ga
List Price: $50.00
Posted: 26 Sep 2005 10:52 PDT
Expires: 26 Oct 2005 10:52 PDT
Question ID: 572832
How has the European community changed as a result of the EU?

Request for Question Clarification by pafalafa-ga on 26 Sep 2005 12:24 PDT

We can probably direct you to online resources that discuss the
changes that have occuredd in Europe as a result of the EU.

Is that the sort of answer you are seeking?

If not, please let us know how we can best help you.


Clarification of Question by isaact-ga on 26 Sep 2005 13:45 PDT
In very broad terms, I was wondering if you could list, explain, and
provide some examples of the ways countries have changed as a result
of becoming part of the European Union. For example, how the euro has
made travel and trade easier between countries within Europe.
Subject: Re: European Union
Answered By: easterangel-ga on 26 Sep 2005 19:59 PDT
Rated:5 out of 5 stars
Hi! Thanks for the question.

I will provide some articles discussing the effects on a country level
on joining the EU and for the region as a whole. I highly recommend
that you read the links in their entirety to get a better picture of
the concepts discussed in the articles.



- ?It became necessary to reduce the excise tax on alcohol because the
free movement of products within the European Union prevents Finland
from restricting the amount of alcoholic beverages imported by private
individuals on trips abroad.?

- ?Together with the lifting of import restrictions, the Government
decided to reduce the excise tax on alcohol in domestic sales. This,
they decided, was the only way to ensure that the majority of
alcoholic beverages consumed in Finland are purchased in Alko and thus
to ensure that the government continues to receive some sort of income
from excise tax.?

- ??Finland was obliged to make a massive cut in the automobile tax to
prevent an influx of used cars mainly from Germany. Thus, the prices
of both new and used cars dropped at Finnish car dealerships.?

- ?With EU membership, Finnish farmers were suddenly obliged to make a
far greater portion of their income through direct aid per hectare or
per animal. The bureaucracy involved in applying for benefits has hit
many farmers particularly hard. Many reported having given up farming
because of getting fed up with filling in forms and having inspectors
visit their farms.?

- ?As the producer prices paid to farmers dropped, it was only natural
that consumer prices dropped too. During the first year of membership,
food prices decreased by about 10%. On the other hand, certain
products became more expensive. For example, joining the Union?s
curious banana regime brought about a considerable rise in the price
of bananas in Finnish shops.?

Please see the immediate link below for more.

?Finns and EU membership? by Matti Mörttinen, journalist, Aamulehti 


- ?Italy's particularly innovative approach to victims of trafficking
is reflected in article 18 of the Alien Law. This article provides for
issuing a special six-month residence permit that may be extended for
a year or more, as required. This special permit allows the holder
access to social and assistance services, study, as well as enrolment
with the national employment agency, while it can also be converted
into a regular two-year residence permit for study.?

- ?August 2003 gives specific competence to National Anti-Mafia
Directorate by considering trafficking as an activity equivalent to
Mafia-style crimes. This results in punishment and the possibility to
confiscate the assets of criminals in favour of a fund that benefits



- Survey showed that since joining the EU, prices of goods has risen
- The positive benefit were in the form of freedom of movement or travel.

?Worst effect of joining EU is price hikes say Latvians: poll? 


- ?Trade with other EU-25 countries accounts for about 71% of Austrian
imports and exports. Expanding trade and investment in the new EU
members of central and eastern Europe that joined the EU in May 2004
represent a major element of Austrian economic activity.?

- ?Although the big investment boom has waned, Austria still has the
potential to attract EU firms seeking convenient access to developing
markets in central and eastern Europe and the Balkan countries.?


- ?Before Austria joined the EU, competition policy was not one of the
most sophisticated areas of the Austrian judicial and economic system,
as deeply vested interests led to market segmentation and little
competition in certain sectors, such as the food processing industry
and utilities. EU membership was a deliberate decision of policymakers
to facilitate structural changes that led among other things to
greater efficiency, increased competitiveness and lower price
increases in Austria.?

- ?Over the past decades, Austria has thus become a leading small,
open economy in Europe. This positive economic performance is mirrored
by GDP per capita figures, where Austria ranks third in the EU, right
behind Luxembourg and Denmark.?

- ?At 4.5%, the unemployment rate is the third-lowest in the EU.?

?Austria after 10 years of EU membership - a review from a central
banking perspective? by Dr Klaus Liebscher, Governor of the Austrian
National Bank, at the Bulgarian National Bank, Sofia

EU Region in General:

- ??while countries with a higher level of development grew faster the
longer they were member of the EU, this effect is even more pronounced
when it comes to the subgroup of less advanced countries. This finding
can be interpreted as another indication for a catching-up process of
poorer towards richer countries in Europe in the sense that with two
countries entering the EU at the same point in time the growth bonus
is larger for the less advanced country.?

- ??the growth effect picked up by the regional integration variable
differs from that resulting from intensified trade and would relate to
the improvements in the transmission of technological knowledge among
the EU member states.?

- ?One argument that may as well be used to interpret the results
relies upon the assumption that financial help from the EU to
relatively poorer members actually does have an effect on long-term

- ??EU membership had a positive impact on growth, as due to
liberalization measures inherent to the integration process the size
of the government in EU member states has decreased rapidly in the
last decades.?

- ??stabilization of expectations in the context of the European
Exchange Rate Mechanism or the change in the institutional framework
due to European integration.?

?Working Paper 62 Growth, Convergence and EU Membership? by Jesús
Crespo-Cuaresma, Maria Antoinette Dimitz and Doris Ritzberger-Grünwald 

- ?The EU membership of Estonia, Latvia and Lithuania poses additional
challenges to the identities of different ethnic communities living in
these countries, especially to the identities of titular nations who
may feel reluctant to open up to significant influences from outside
after a somewhat similar period of Soviet impact has just ended.?

- ?At the same time young Estonians, Latvians, Lithuanians, Russians,
and representatives of other ethnic communities seem to embrace more
eagerly the new options provided by European integration and
globalization. Their eagerness is sometimes watched with concern by
older generations who regard it as irresponsible negligence towards
the identity which they have nourished and preserved for many

?Identity change in the Baltics: EU-zation, diversification, or both?? 

Here are some actions by the EU to ensure security among its members.

- EU led peacekeepers for defense: ?At that time (spring 2000),
however, the common feeling was that EU-led peacekeepers would be
deployed mainly, if not exclusively, "in and around Europe", most
notably in the Western Balkans. When they did so much further away,
for instance in East Timor, they acted under a UN flag.?

- ?On the other hand, new political and military bodies - the
Political and Security Committee, the EU Military Committee and the EU
Military Staff - were set up in Brussels to deal with the new tasks:
eventually, the PSC and its role in crisis management were also
incorporated in the 2000 Nice Treaty?

Building a European Security and Defence Policy: What are the
Priorities?? by Dr. Antonio Missiroli 


- ?A major benefit is the removal of bank transaction charges that
previously were a significant cost to both individuals and businesses
when exchanging from one national currency to another. Conversely,
banks suffered a corresponding reduction in profits with the loss of
this income.?

- ?A second effect of the common European currency is that differences
in prices?in particular in price levels?should decrease. Differences
in prices can trigger arbitrage, e.g. artificial trade in a commodity
between countries purely to exploit the price differential, which will
tend to equalise prices across the euro area. This should also result
in increased competition between companies, which should help to
contain inflation and which therefore will be beneficial to


Other benefits of the EU brought by the Single Market Strategy:

- Standardized products providing a level playing field for
manufacturers within the EU.

- Abolition of border controls cutting costs on businesses and a more
speedy physical movement of goods and people.

- Growth in employment

- Increased intra-EU trade.

- Cuts custom bureaucracy.

- Enabled UK companies to protect their trademarks.

- Ability of auto manufacturers to create new models were strengthened

- Improved trade relations in competing contracts for US Aerospace requirements.

- Easy access to trade within the pharmaceutical industry.

- Telephone charges have fallen: ?On average, business users have been
paying 30% less since 1992 and residential users are paying 16% less
in call charges and subscriptions.?

You can read more benefits in this next link.

?Welcome to the DTI's Website for Europe & World Trade? 

Search terms used:  
euro effects member countries
euro changes EU members studies

I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
Google Answers Researcher
isaact-ga rated this answer:5 out of 5 stars
Thank you, very informative :D

Subject: Re: European Union
From: easterangel-ga on 11 Oct 2005 19:08 PDT
You're welcome! :)

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