The European Union
Explain the role of the European Commission in the legislative process of the European Union
The European Commission is responsible for the day-to-day management of the EU. One commissioner from each member state is appointed, with specific areas of responsibility such as finance or agriculture. It has the exclusive right to propose new laws and ensures they align with EU objectives.
Explain the function of the co-decision process within the EU.
The co-decision process, also known as the ordinary legislative procedure, ensures that both the European Parliament and the Council of the European Union must agree on legislation before it can be adopted. This process promotes democratic accountability, as the European Parliament is directly elected by EU citizens.
Discuss the advantages and disadvantages of the Common Agricultural Policy (CAP) for European businesses.
Advantages:
Encourages a self-sustaining economy within the EU by reducing reliance on agricultural imports.
Supports rural economies and ensures a stable food supply within the EU.
Disadvantages:
CAP is one of the EU's most costly policies, which has an opportunity cost, particularly regarding potential investments in healthcare or other sectors.
By providing subsidies, it can lead to overproduction and inefficiencies, distorting market competition and sometimes leading to trade conflicts with non-EU countries.
Evaluate the impact of the European Central Bank (ECB) on financial institutions within the EU.
The European Central Bank (ECB) formulates and implements the EU’s monetary policy, managing key economic factors such as interest rates, lending rules, and the euro's value. Its role in controlling financial institutions, including banks and insurance companies, is crucial in maintaining economic stability.
Explain the importance of the Competition Policy for the EU.
It ensures better prices, increased quality, and a wider variety of choices, as no single company can dominate the market.
It can restrict the growth of large corporations by limiting mergers or acquisitions that might otherwise allow them to dominate market sectors.
Large businesses may face reduced global competitiveness if restricted from expanding within the EU.
Assess the benefits of the EU’s common market for businesses.
Benefits:
Increased Market Access: Businesses can sell goods and services across the EU without facing tariffs or quotas, expanding their customer base.
Lower Costs: Simplified documentation and harmonized laws across the EU reduce the complexity and costs of operating in multiple countries.
Assess the potential drawbacks of the EU Single Market for businesses
Drawbacks:
Regulatory Complexity: Despite harmonization efforts, businesses still need to comply with some national regulations and market nuances, which can complicate operations.
Competition: Businesses face increased competition from companies across the EU, which may reduce profitability, particularly for smaller firms that struggle to compete with larger multinationals.