Myths and facts about EU budget and external cooperation
Currently, when EU institutions are working on the new financial framework 2014-2020, let's take a look how the EU budget makes Europe count in the world.
The EU is the largest trading bloc worldwide. The overall value of EU trade (exports and imports of goods, services and foreign direct investments) is worth about €3.5 trillion per year (2010). EU trade policy works to create growth and jobs for European companies by making it easier for EU companies to do business across the globe. Trade policy connects Europe to the main sources and regions of global growth. More than 36 million jobs in Europe depend directly on our trade with the rest of the world. EU trade policy over the next 5 years aims to add around €150 billion to our economy. Increased trade offers a greater variety of goods, at lower prices to consumers. The gains for the average consumer are estimated at around €600 per year.
A single trade policy (including trade in goods, services and foreign investment) at EU level works because the 27 member states of the European Union share a single market and a single external border meaning that the EU trades as a single bloc with foreign countries. Both in the World Trade Organization, where the rules of international trade are agreed and enforced, and with individual trading partners, EU Member States speak and negotiate major trade deals 'with one voice' by the European Trade Commissioner.
Emerging economies are increasing their share of world growth. By 2015, 90% of world growth will be generated outside Europe, with a third from China alone. Developing and emerging countries are likely to account for nearly 60% of world GDP by 2030, compared to less than 50% today. The EU has maintained its 17.5% share in world trade on average over the last decade despite the rise of emerging economies.
The EU-South Korea Free Trade Agreement enters into force on 1 July: It marks a significant milestone in EU-South Korea trade relations with the entry into force of the Free Trade Agreement (FTA) that will bring €850 million in savings to EU exporters on day one. This is the most ambitious trade deal ever negotiated by the EU and its first with an Asian country. The FTA is expected to create new trade in goods and services for the EU worth €19.1 billion, and to more than double EU-South Korea bilateral trade in the next 20 years compared to a scenario without the agreement.