The European Union (often shortened to the E.U.) is a political and economic union of 28 member states in Europe.

The E.U’s origins date back to a drive towards greater European integration after World War 2, to safeguard against the extreme forms of nationalism that devastated the continent during that conflict. The European Economic Community (EEC) formed in the 1950s between France, Belgium, Italy, Luxembourg, the Netherlands and West Germany with an aim to bring about economic integration and a common market (the first move towards an eventual single market).

New member states sequentially joined the six-country EEC over the coming decades (Denmark, the UK and Ireland first coming on board in the 1970s) and its remit began to grow, the directly-elected European Parliament being set up for oversight purposes in 1979.

More European countries joined the EEC in the 1980s and 1990s and the Maastricht Treaty formally established the European Union in 1993 and introduced European Citizenship. The E.U has subsequently developed a single market across much of the continent through a standardised system of laws applicable to all member states. Within the borderless ‘Schengen Area’ (currently 22 of the E.U’s 28 states), passport controls have now been abolished. The E.U aims to ensure the free movement of people, goods, services and capital throughout the entire continent and maintain common policies on trade, agriculture, fisheries, and regional development.

Monetary union complete with a common currency (the Euro) was established in 1999 and came into force in 2002 – as of February 2015, 19 member states use the Euro as their legal tender.

The E.U has developed a Common Foreign and Security Policy and maintains permanent diplomatic missions throughout the world. There are no combined European armed forces – when the predecessor bodies of the E.U were established, military union was not a consideration. As of today, 22 E.U member stares are also members of the North Atlantic Treaty Organisation (NATO) for defence purposes.

The Lisbon Treaty of 2009 amended the constitutional basis of the E.U, merging various strands into a single legal entity and establishing a permanent President of the European Council. Future member states must meet certain criteria to join the E.U including a stable democracy that represents human rights and the rule of law, a functioning market economy and acceptance of E.U law (for example, abolition of the death penalty is a condition of membership).

Institutions within the E.U structures include the European Commission (which initiates legislation), the European Parliament (which passes legislation and is elected every five years by European citizens), European Council (meets four times a year and sets direction for the E.U), E.U Court of Justice (interprets the application of E.U law) and European Central Bank (governs monetary policy).

With a combined population of over 500 million people, the E.U represents around 7.5% of the world’s population, with about three times that percentage in terms of wealth generation. In 2012, the E.U generated 23% of global nominal gross domestic product (GDP) – the highest in the world if it were to be treated as a single country.

In 2012, the E.U was awarded the Nobel Peace Prize for having “for over six decades contributed to the advancement of peace and reconciliation, democracy and human rights in Europe”, going on to note that “the dreadful suffering in World War 2 demonstrated the need for a new Europe…..today war between Germany and France is unthinkable. This shows how, through well-aimed efforts and by building up mutual confidence, historical enemies can become close partners.” Critics felt that such a lofty prize for what can still (at times) be an inefficient organisation was too much but, for all its flaws and bureaucracy, the establishment of the E.U has revolutionised a continent that was for centuries at war with itself.

To learn more about the past, present and future of the continent itself, jump to Chapter 75: Europe – content to follow

To learn more about one of the European Union’s key freedoms, jump to Chapter 76: Freedom of Movement – content to follow

Although some saw it as contentious for the E.U to win it, to learn more about the origins and effects of the Nobel Peace Prize, jump to Chapter 77: Nobel Peace Prize – content to follow

To learn more about the economic and social benefits (and pitfalls) of one market, jump to Chapter 78: Single Market – content to follow