‘The role of government in creating the business climate’ At its inception in 1957, the European Union was known as the European Economic Community. It was created by the Treaty of Rome by six countries known as the Core Six – Belgium, Luxembourg, The Netherlands, Germany, Italy and France. It’s main mission being creating a common – tariff free market in favour of easier and more profitable trade. The European Union consists of The Council of Ministers, European Parliament, European Commission and The European Court of Justice. Britain joined the EU in 1973, however it was never fully committed to the European project. The EU now consists of 28 member states, however that is due to increase with the potential of more countries joining amongst which are Turkey and Ukraine. European Government:
How the European government does affect UK business?
The EU has a big impact on business in the UK. Thanks to the EU Britain is able to trade their goods and services such as cars and banking with other countries in the EU without tariffs. This enables swifter and more profitable trade. As well as that, the EU helps the UK trade their goods and services outside the EU because it is the second largest trade bloc in the world, competing with the USA and China. The EU has supranational policy making power on trade for all member state, including the UK. This means that whatever the EU decides on trade, the UK has to follow. Additionally, the EU imposes working conditions and minimum wage on their member states. However, the EU does not control employment in the UK. Employment policy making in the EU is inter-governmental, this means that member states can choose whether they want to follow the policy or not. This allows the UK government to remain in control of employment in the UK. For example is it the UK government that decide on taxation levels.
Why is it good to do business in Europe?
It is good to do business in Europe for two main reasons. Firstly, there is a common market. This allows countries to trade free of tariffs which increases their income as they don’t need to pay the expenses...