discuss the extent to which economic integration within the EU has been subordinated to the achievement of political objectives.

1 . Introduction

European politicians and bureaucrats have dreamt of economic and monetary integration of the national economies of Europe for nearly two decades . The idea of a powerful , united and affluent Europe , home to half a billion people , and responsible for nearly 20 of global GDP was a great motivator by itself . The advantages of being able to play a dominant role in world affairs with a currency strong enough to counter the US dollar were also equally attractive . The formation of the European Union in 1992 with the signing of the

Maastricht treaty marked the culmination of many years of effort by the conceptualizers and initiators of the pan Europe movement . One and a half eventful decades have now passed since that epochal day when heads of 15 major European countries decided to work together for the dignity , freedom and prosperity of all the people who lived in Europe . In this period , the movement for integration has met with some notable successes as well as great disappointments

A number of agreements and treaties , mainly those of Nice , Rome and Amsterdam followed Maastricht and progressively defined the extent of cooperation between the member nations of the European Union . Perhaps the biggest achievement of the EU until now has been the extremely successful introduction of the Euro , the single common currency adopted by 12 of the 15 members of the Union . Twelve nations , namely Austria Belgium , Finland , France , Germany , Greece , Ireland , Italy , Luxembourg Netherlands , Portugal , and Spain thus discarded their old currencies the marks , francs , guilders and drachmas and embraced the Euro . The value of the Euro had dipped sharply below its opening trade of 1 .18 against the US dollar after its introduction in 1999 , sending tremors of concern through global financial circles . It however recovered gradually over the next few years and now trades strongly at 1 .30 . The Euro has furthermore established itself , along with the sterling and the yen as alternative currencies to the dollar by the Central Banks of various national economies . The European Union has a number of other achievements to its credit . The Schenghen agreement paved the way for free bless travel between members of the EU and other treaties laid out the legislative powers of the EU in matters relating to customs trade , and fisheries . The Union now has a common single market , a currency that is common to 12 of the 27 members , a Common Agricultural Policy , a Common Fisheries Policy and a Common Foreign and Security Policy . This however does not mean that the extent of its powers is the same in all areas . The extent of powers varies greatly and differs from area to area . The focus is far stronger and more defined in the case of monetary affairs , agriculture , trade , environment , and economics

The working of the EU has however been dogged by disputes and discords political and economic , amongst its members . These disagreements , while always glossed over and covered up by the legal speak of member countries have...