Economic Integration has been the Most Concrete and Visible Essay

Economic Integration has been the Most Concrete and Visible Achievement of the EU Since its Creation - Essay Example The process of economic integration has been developed by the EU through involving the facet of political integration amid the member nations in order to establish a well-built monetary paradigm which could facilitate to strengthen the trade activities through considering efficient monetary guidelines (Seller, 2007). Political integration has been considered as the practice whereby countries pass over the desire as well as the ability to perform domestic and foreign guidelines of each other in an independent manner. This process is intended to strengthen decision making process of the nations rather than seeking mutual decision in terms of developing their new central organ. The term ‘political integration’ is also defined as a framework whereby the political leaders in different settings of national districts are influenced to alter their desired expectation as well as political activities to a well-structured new centre (Bache & et. al., 2011). Emphasizing upon the different practices and decisions of the EU in the context of monetary phenomenon, the major purpose of this report is to discuss the concept of economic integration in the EU. ... The process is intended to uphold lower prices both for the distributors and customers with the intention of enhancing the joint economic efficiency of the nations (Jovanovic, 2002). The concept of economic integration has been derived from Economic and Monetary Union (EMU) which had been taken by the European Council in the year 1991 and was preserved later under the treaty of EU. EMU has been recognized as an early step in terms of practicing the process of economic integration. The extent of economic integration can be segregated into six different steps which are designed to augment efficiency and empower the economic development of the states. In accordance with the economic integration process designed by the EU, the six major steps are namely the Preferential Trading Area, Free Trade Area, Customs Union, Single Market, Economic and Monetary Union as well as Complete Economic Integration (European Commission, 2012). Preferential Trading Area (PTA): Preferential trading areas (P TA) can be stated as certain areas, regions, states or nations among which the trade activities are conducted in a minimum custom barrier (Holden, 2003). Free Trade Area: It can be recognized as a group or collection of certain countries that appeal to maintain low trade policies as well as control mechanisms in terms of tariffs while performing trade activities amid each other. Free trade areas endorse the approving nations to freely execute trade activities of their products and/services so as to create economic efficiency of both the countries (Rodrigue, 2013). Customs Union (CU): The step tends to set widespread external tariffs between the member nations and