Measuring the Effectiveness of Integration of European Union by Comparing Economic Progress Made by Some Member States Using DEA
Tanmaya Shekhar (Y6502)
The European Union (EU) is an economic and political union of 27 member states, located primarily in Europe. It was established by the Treaty of Maastricht on 1 November 1993, upon the foundations of the pre-existing European Economic Community. With almost 500 million citizens, the EU combined generates an estimated 30% share (US$18.4 trillion in 2008) of the nominal gross world product. The EU has developed a single market through a standardised system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital. It maintains common policies on trade, agriculture, fisheries, and regional development. Sixteen member states have adopted a common currency, the euro. To join the EU, a country must meet the Copenhagen criteria, defined at the 1993 Copenhagen European Council. These require a stable democracy which respects human rights and the rule of law; a functioning market economy capable of competition within the EU; and the acceptance of the obligations of membership, including EU law. European Union was created with a promise of peace and prosperity in terms of higher GDP growth rates through free market trade within the union, lower inflation through monetary policy coordination and lower budgetary deficits, lower currency volatility through single currency, promotion of democratic institutions through respect for human rights and peace on borders of the participating nations. The purpose of the study is to determine the effectiveness of the European Union (EU) trading bloc in delivering on its promise of peace and prosperity by tracking the progress made by participating nations on the economic issues. For the European Union to continue to exist and expand in the future, it is important that the economic and non-economic...