Introduction
In the context of the expanding network core of international relations, the analysis of the foreign policy of individual state and regional alliances is becoming increasingly significant. The European Union (EU) is an economic and political association of 28 European states (Oatley, 2018, p.12). The Maastricht Treaty legally enshrined the alliance aimed at regional integration and the organization in 1992 on the principles of the European Communities (Bache et al., 2020, p. 98). It is essential to establish the role of the European Union as an Actor in the International Political Economy.
The EU as a Political Actor
It is crucial to mention that a common market has been created through a standardized system of laws across the Union. This guarantees the free movement of people, products, capital, and services, including the abolition of passport controls within the Schengen area, which includes both member states and other European countries (Bache et al., 2020). The Union adopts laws, directives, legislation, and regulations in the field of justice and internal affairs. It also develops common trade, agriculture, fisheries, and regional development policies (Oatley, 2018). As a subject of public international law, the Union has the authority to participate in international relations and international treaties. A common foreign and security policy has been established, which provides for a coordinated foreign and defense policy. Permanent EU diplomatic missions have been founded all over the world; there are missions to the United Nations, WTO, G8, and G20 (Oatley, 2018, p. 32). It is significant that EU delegations are headed by EU ambassadors, who represent the organization, not individual states. Therefore, the European Union is a full-fledged player in the international arena. This allows the European Union to conduct an independent policy in the international arena and develop economic relations.
The Influence of the EU as a Political Player on the Market
Since the founding of the EU, a single market has been established in the territory of all member states. Currently, the single currency is used by 19 states of the Union, forming the eurozone (Cohn & Hira, 2020, p. 74). The Union, considered a unified economy, produced a gross domestic product of 14.79 trillion international dollars in 2019, calculated in terms of purchasing power parity, which is more than 21% of world output (Cohn & Hira, 2020, p. 74). This ranks the Union’s economy first in the world in terms of nominal GDP and second in terms of GDP at purchasing power parity. In addition, the Union is the largest exporter and importer of goods and services and the most important trading partner of several major countries, such as China and India. The 161st of the world’s top 500 companies by revenue is headquartered in the EU (Cohn & Hira, 2020, p. 91). Thus, the European Union, adopting its legislation and adhering to approved principles, has a significant impact on the market and the economy. The joint activity of all member states leads to the fact that the EU forms the fundamental tendencies and policies of the market.
Conclusion
Thus, the organization possesses the attributes of a subject of international law, and the EU accounts for a significant part of world trade in goods. The prior economic engine of the EU is a single market, providing the unrestricted movement of goods, services, capital, and people within the European Union. Within the EU, citizens use the euro, which ensures the stability of the monetary unit. Therefore, the organization has a considerable effect on forming the global and European markets.
References
Bache, I., Bulmer, S., George, S., Parker, O., & Burns, C. (2020). Politics in the European union. Oxford University Press.
Cohn, T. H., & Hira, A. (2020). Global political economy: Theory and practice. Routledge.
Oatley, T. (2018). International political economy. Routledge.