Archive:Economy and finance statistics introduced
The European Union (EU) is active in a wide range of policy areas, but economic policies have traditionally played a dominant role. Starting from a rather narrow focus on introducing common policies for coal and steel, atomic energy and agriculture as well as the creation of a custom union over 50 years ago, European economic policies progressively extended their scope to a multitude of domains.
Since 1993 the European Single Market has strongly enhanced the possibilities for people, goods, services and money to move around the EU as freely as within a single country. These freedoms, foreseen from the outset of the EC in the Treaty establishing the European Economic Community of 1957 have been designed: to allow individuals the right to live, work, study or retire in another Member State; to increase competition leading to lower prices, provide a wider choice of products to buy, while ensuring higher levels of protection
for consumers; and to make it easier and cheaper for businesses to interact across borders.
The start of economic and monetary union (EMU) in 1999 has given economic and market integration further stimulus. The elimination of exchange risk for a large number of cross-border transactions and the associated increase in price transparency resulted not only in a substantial increase of intra-area trade flows but also intra-area foreign direct investment ). The euro has also become a symbol for Europe, and the number of countries that adopted it increased from the original 11 to 16 countries at the beginning of 2010.
Fostering economic and social progress, with constant improvements in living and working conditions has been a key objective of European policies. While the stated goal of the Lisbon Strategy in 2000 was to make the EU the ‘most competitive (…) economy in the world’, its re-launch after a 2005 mid-term review focused more specifically on growth and employment. Reforms agreed in the context of Lisbon delivered tangible benefits, including increased employment, a more dynamic business environment, and more choice for consumers (3). However, the global financial and economic crisis that hit the EU in 2008, caused a severe economic downturn and job losses in most EU Member States.
In response to the crisis, EU Member States agreed on a joint recovery plan to boost demand and restore confidence (4). Its measures specifically aim to keep people in work and support public investment in areas such as infrastructure, innovation, new skills for the workforce, energy efficiency and clean technologies. The new EU 2020 Strategy will not only be designed to support a full recovery from the crisis but also to address Europe’s structural challenges – globalisation, climate change and an ageing population – by helping it move towards a greener, more sustainable, and more innovative economy.
As the design, implementation and monitoring of EU policies require indicators to analyse the current economic situation, this chapter comments upon key indicators from various areas, such as national accounts, government finance, exchange rates and interest rates, consumer prices, the balance of payments with respect to the current account and foreign direct investment, as well development aid.
Economic and social progress and constant improvements in living and working conditions are fundamental objectives for the European Union. Over the last five decades, policy-makers have strived to improve economic integration by removing barriers to the free movement of goods, services, money and people with the goal of creating more jobs and economic growth. Much has been achieved, such as the customs union, followed by the single market and, more recently, economic and monetary union.
According to a European Commission policy overview, the single market has created several million new jobs since 1993 and generated more than EUR 800 billion in extra wealth, through abolishing tariffs and quotas, as well as technical and administrative obstacles to free trade.
It is now easier to travel across the EU’s internal frontiers and citizens and businesses are able to order a wide range of products from all over the EU with confidence. The creation of the single market has increased incentives to liberalize previously protected national monopolies for utilities, such as telecommunications, electricity, gas and water. As a result, many households and enterprises across Europe are increasingly able to choose who supplies them with utility services. However, there remain some areas, for example in relation to financial services and transportation, where separate national markets still exist.
In 1986, the EU signed the Single European Act. The chief objective of this act was to add new momentum to the process of constructing and completing the internal market. Since 1993, the European single market has strongly enhanced the possibilities for people, goods, services and money to move around Europe as freely as within a single country. These freedoms, foreseen from the outset of the European undertaking in the Treaty establishing the European Economic Community of 1957 have been designed to:
- allow individuals the right to live, work, study or retire in another Member State;
- increase competition leading to lower prices, a wider choice of things to buy and higher levels of protection for consumers;
- make it easier and cheaper for businesses to interact across borders.
In March 2000, EU heads of state and government agreed the Lisbon Strategy, designed to stimulate growth and create more and better jobs. In 2005, the Council of Ministers and European Parliament of the EU adopted the ’Integrated guidelines package’ which was a road map for spurring growth and creating jobs in a socially cohesive and environmentally responsible EU during the period 2005 to 2008. This package represents a comprehensive strategy of macroeconomic, microeconomic and employment policies. Under the package, Member States draw up national reform programmes, using the tax and social welfare policy mix they think best suits their own national circumstances.
To help European and national policy-makers and other stakeholders, Eurostat collects and collates a very wide range of economic and financial data that, for example, monitor activity in the single market or track progress towards the attainment of the Lisbon Strategy objectives.
Further Eurostat information
Dedicated sections
- National accounts (including GDP)
- ESA 95 Input-Output tables
- European sector accounts
- Government finance statistics
- Financial accounts
- Exchange rates
- Interest rates
- Monetary and other financial statistics
- Harmonized Indices of Consumer Prices (HICP)
- Purchasing power parities (PPPs)
- Balance of payments
See also
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