The European Union is known for it is the largest economy globally. Europe’s economy consists of people exceeding 665 million in the various states. The wealth of these states vary, but the poorest are much better than other continents regarding GDP or the standards of living. Europe’s economy has been reinforced by the creation of the European Union. As a union, the different counties have a single market; single currency used, similar Agricultural and Fisheries policies.
The living standards of people is a dependent factor of the stability or thriving economy of a state. As a result, there ought to be prosperous investments in various sectors of the economy. This article will discuss Europe’s economic system today.
After many years of unproductiveness, Europe’s economic system looks much better and is improving. For instance, it has an advanced financial department. Many European states are financial centers, and London is the largest. The use of common currency has had a significant impact in the society because the various people are making investments and can deposit the money in the available European banks.
Also, the Agricultural sector is well developed and is still developing. The Common Agricultural Policy assists farmers in lowering the prices of their products and subsidizing their products hence making the products stand out in the market. As a result of this, products from the developing countries are seen as competitive in Europe as well as their home market. The Common Fisheries Policy has various rules which help in the protection of the environment. Also on the fishery sector, there are subsidies and price guarantees
Europe has been prospering in the manufacturing industry. However, because of increased wage level and production charges, Europe is experiencing problems of deindustrialization and offshoring in manufacturing sectors. Consequently, manufacturing has become less significant and people are moving to regions with lower labor costs. In the 21st century, the Central and Eastern Europe have caught up because of the European Common Market. Earlier, its manufacturing sector had fallen after communism fell and the start of the market economy.
The transportation of goods in Europe and the neighboring states is faster because of the developed transport networks. The increase in the number of people after the industrial revolution and Europe’s fragmentation has enabled the cooperation in Europe and other developing countries. Organizations such as European Union among others has allowed people to cross borders of Europe without any tension and with so much freedom.
This sector has advanced that most of the distance travel in Europe is through the air or at times rail. It is the cheapest method, but due to the increase in air transport, it has led to overcrowding and environmental problems.
Even though Europe’s economy is an admirable one due to its prosperity; it is also faced by challenges. One of the major problems is the economy’s instability due to the global financial and the debt crises it is involved in. The UK and the population are no longer interested in the European Union and some of the values represented. Reports indicate that the UK has voted to leave the Union.