The European Union: BREXIT

2/1/25

Overview

Gradually created in the wake of World War II, the European Union was formed to provide a unified trading bloc for Western Europe.  As the EU has grown, it has faced obstacles, such as the addition of Central and Eastern European countries and BREXIT, the first and only withdrawal of a nation from the Union. Join Active Minds as we explore the historical roots of the formation of the EU as well as the issues that challenge its future.

Key Lecture Points

  • The European Union is one of the largest economic markets in the world and a key American ally and trading partner. The evolution of the EU from a regional economic agreement of 6 countries to today’s organization of 27 countries is unprecedented. For this number of nation states to give up any measure of sovereignty to a supranational entity is unique and presents serious challenges, particularly during times of economic and political instability.
  • Nearly a decade ago, the EU faced a sovereign debt crisis that destabilized the integrated economy of the subset of nations that use the Euro as their currency. This “Eurozone” crisis toppled governments in Greece, Italy and Spain, collapsed banks across the zone and pushed two of Europe's biggest economies (Spain and Italy) to the brink of financial collapse. This caused some observers to posit that it had expanded too quickly, incorporating countries with less developed economies that could destabilize the stronger ones.
  • Overcoming this crisis required financial bailouts and strict austerity measures to be put in place, strategies that triggered resentment on the part of many EU citizens. Nonetheless, the Eurozone held, and its resilience seemed to prove that this European experiment could be carefully managed on a collective basis and survive.
  • A new threat to the EU emerged in 2016 when British voters elected to leave, in a referendum engineered by right-wing groups calling for a “Brexit” The 52% of UK voters who opted to leave cited the billions of pounds Britain contributes to the EU each year, the desire to retain British sovereignty, and concerns about the large number of citizens from other EU countries living and working in Britain.
  • More recently, June 2024 European Parliamentary elections alarmed many supporters of the EU. Right-wing political parties, many of them skeptical of, if not completely opposed to, the powers that EU institutions possess gained seats in the EU Parliament at the expense of center- and left-wing parties, threatening the consensus-based nature of the EU in favor of more nationalist political rhetoric.

Discussion Questions

  • What are the benefits and the disadvantages of a single European currency?
  • How has the EU benefited the citizens of its member nations? What has been the down-side?
  • Have you traveled to Europe? What nations did you find most intriguing, and why?
  • Do you think the EU should expand to include Ukraine? Why or why not?

More to Explore

Books For Further Reading

  • Bradford, Anu. The Brussels Effect: How the European Union Rules the World. Oxford University Press. 2020. 404 pages. EU remains an influential superpower that shapes the world in its image. By promulgating regulations that shape the international business environment, elevating standards worldwide, and leading to a notable Europeanization of many important aspects of global commerce, the EU has managed to shape policy in areas such as data privacy, consumer health and safety, environmental protection, antitrust, and online hate speech.
  • Menon, Anand, Erik Jones, Stephen Weatherill. The Oxford Handbook of the European Union. 2014. 893 pages. Complete overview of the EU for diplomats, scholars, and students.
  • Marsh, David. The Euro: The Politics of the New Global Economy. Yale University Press. 2009. 352 pages. Comprehensive political and economic account of the birth and development of the euro - the world’s second largest reserve currency.