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The European Union (EU) is a political and economic union of 27 member states that are located primarily in Europe. It has an area of 4,475,757 km2 (1,728,099 sq mi), and an estimated population of over 510 million. The EU has developed an internal single market through a standardized system of laws that apply in all member states. EU policies aim to ensure the free movement of people, goods, services, and capital within the internal market, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture, fisheries, and regional development. Within the Schengen Area, passport controls have been abolished. A monetary union was established in 1999 and came into full force in 2002, and is composed of 19 EU member states which use the euro currency.

The EU traces its origins from the European Coal and Steel Community (ECSC) and the European Economic Community (EEC), established, respectively, by the 1951 Treaty of Paris and 1957 Treaty of Rome. The original members of what came to be known as the European Communities, were the Inner Six; Belgium, France, Italy, Luxembourg, the Netherlands and West Germany. The Communities and its successors have grown in size by the accession of new member states and in power by the addition of policy areas to its remit. While no member state has left the EU or its antecedent organizations, the United Kingdom enacted the result of a membership referendum in June 2016 and is currently negotiating its withdrawal. The Maastricht Treaty established the European Union in 1993 and introduced European citizenship. The latest major amendment to the constitutional basis of the EU, the Treaty of Lisbon, came into force in 2009.

The European Union accumulated a higher portion of GDP as a form of foreign aid than any other economic union. Covering 7.3% of the world population, the EU in 2016 generated a nominal gross domestic product (GDP) of 16.477 trillion US dollars, constituting approximately 22.2% of global nominal GDP and 16.9% when measured in terms of purchasing power parity. Additionally, 27 out of 28 EU countries have a very high Human Development Index, according to the United Nations Development Program. In 2012, the EU was awarded the Nobel Peace Prize. Through the Common Foreign and Security Policy, the EU has developed a role in external relations and defense. The union maintains permanent diplomatic missions throughout the world and represents itself at the United Nations, the World Trade Organization, the G7, and the G20. Because of its global influence, the European Union has been described as an emerging superpower.

Background

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Main article: Ideas of European unity before 1945

A day will come when all nations on our continent will form a European brotherhood ... A day will come when we shall see ... the United States of America and the United States of Europe face to face, reaching out for each other across the seas.

Victor Hugo, International Peace Congress, 1849.

After the fall of Rome in 476, several European States claimed to be the successors (translatio imperii) of the defunct Empire. The Frankish Empire (481–843) of Charlemagne and the Holy Roman Empire (962–1806) were attempts to resurrect the Empire in the West. Later, the Russian Tsardom (1547–1721) in Eastern Europe claimed to be the Third Rome and inheritor of the Byzantine tradition after the fall of the second Rome, Constantinople, in 1453.

Ideals of European unity re-emerged during the 19th century after the fall of Napoléon's Empire (1804–1815) and the outcomes of the Congress of Vienna, in the writings of Wojciech Jastrzębowski, Giuseppe Mazzini or Theodore de Korwin Szymanowski. The term United States of Europe (French: États-Unis d'Europe) was famously used by Victor Hugo during a speech at the International Peace Congress held in Paris in 1849, when he favoured the creation of "a supreme, sovereign senate, which will be to Europe what parliament is to England".

One of the first to imagine of a modern union of the European nations was Richard Von Coudenhove-Kalergi, who wrote the Pan-Europa manifesto in 1923 and founded the Pan-Europa Movement. His ideas influenced Aristide Briand, who gave a speech in favor of a European Union in the League of Nations on 8 September 1929, and who in 1930 wrote a Memorandum on the Organization of a Regime of European Federal Union for the Government of France.

Preliminary (1945–57)

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Robert Schuman proposing the Coal and Steel Community on 9 May 1950.

After World War II, European integration was seen as an antidote to the extreme nationalism which had devastated the continent. In a speech delivered on 19 September 1946 at the University of Zürich, Switzerland, Winston Churchill postulated the emerging of a United States of Europe during the 20th century. The 1948 Hague Congress was a pivotal moment in European federal history, as it led to the creation of the European Movement International and of the College of Europe, where Europe's future leaders would live and study together. 1952 saw the creation of the European Coal and Steel Community, which was declared to be "a first step in the federation of Europe." The supporters of the Community included Alcide De Gasperi, Jean Monnet, Robert Schuman, and Paul-Henri Spaak. These men and others are officially credited as the Founding fathers of the European Union.

Treaty of Rome (1957–92)

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The continental territories of the member states of the European Union (European Communities pre-1993), coloured in order of accession.

In 1957, Belgium, France, Italy, Luxembourg, the Netherlands and West Germany signed the Treaty of Rome, which created the European Economic Community (EEC) and established a customs union. They also signed another pact creating the European Atomic Energy Community (Euratom) for co-operation in developing nuclear energy. Both treaties came into force in 1958.

The EEC and Euratom were created separately from the ECSC, although they shared the same courts and the Common Assembly. The EEC was headed by Walter Hallstein (Hallstein Commission) and Euratom was headed by Louis Armand (Armand Commission) and then Étienne Hirsch. Euratom was to integrate sectors in nuclear energy while the EEC would develop a customs union among members.

During the 1960s, tensions began to show, with France seeking to limit supranational power. Nevertheless, in 1965 an agreement was reached and on 1 July 1967 the Merger Treaty created a single set of institutions for the three communities, which were collectively referred to as the European Communities. Jean Rey presided over the first merged Commission (Rey Commission).

In 1989, the Iron Curtain fell, enabling the union to expand further (Berlin Wall pictured).

In 1973, the Communities were enlarged to include Denmark (including Greenland, which later left the Communities in 1985, following a dispute over fishing rights), Ireland, and the United Kingdom. Norway had negotiated to join at the same time, but Norwegian voters rejected membership in a referendum. In 1979, the first direct elections to the European Parliament were held.

Greece joined in 1981, Portugal and Spain following in 1986. In 1985, the Schengen Agreement paved the way for the creation of open borders without passport controls between most member states and some non-member states. In 1986, the European flag began to be used by the EEC and the Single European Act was signed.

In 1990, after the fall of the Eastern Bloc, the former East Germany became part of the Communities as part of a reunified Germany. A close fiscal integration with the introduction of the euro was not matched by institutional oversight making things more troubling. Attempts to solve the problems and to make the EU more efficient and coherent had limited success. With further enlargement planned to include the former communist states of Central and Eastern Europe, as well as Cyprus and Malta, the Copenhagen criteria for candidate members to join the EU were agreed upon in June 1993. The expansion of the EU introduced a new level of complexity and discord.

Maastricht Treaty (1992–2007)

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The Euro was introduced in 2002, replacing 12 national currencies. Seven countries have since joined.

The European Union was formally established when the Maastricht Treaty—whose main architects were Helmut Kohl and François Mitterrand—came into force on 1 November 1993. The treaty also gave the name European Community to the EEC, even if it was referred as such before the treaty. In 1995, Austria, Finland, and Sweden joined the EU.

In 2002, euro banknotes and coins replaced national currencies in 12 of the member states. Since then, the Euro zone has increased to encompass 19 countries. The euro currency became the second largest reserve currency in the world. In 2004, the EU saw its biggest enlargement to date when Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia joined the Union.