Economy - overview:
Internally, the EU has abolished trade barriers, adopted a common currency, and is striving toward convergence of living standards. Internationally, the EU aims to bolster Europe's trade position and its political and economic power. Because of the great differences in per capita income among member states (from $7,000 to $78,000) and in national attitudes toward issues like inflation, debt, and foreign trade, the EU faces difficulties in devising and enforcing common policies. In the wake of the global economic crisis, the European Commission projected that the EU's economy would shrink by 4% in 2009 and 0.1% in 2010. The EU has recovered from the crisis faster than expected, however, and the Commission estimates 2010 growth at 1.8%. Significant risks to growth nevertheless remain, including, high official debts and deficits, aging populations, over-regulation of non-financial businesses, and doubts about the sustainability of European Economic and Monetary Union (EMU). In June 2010, prompted by the Greek financial crisis, the EU and the IMF set up a $1 trillion bailout fund to rescue any EMU member in danger of default, but it has not calmed market jitters that have diminished the value of the euro. Eleven established EU member states introduced the euro as their common currency on 1 January 1999 (Greece did so two years later), but the UK and Denmark have 'opt-outs' that allow them to keep their national currencies, and Sweden has not taken the steps needed to participate. Between 2004 and 2007, the EU admitted 12 countries that are, in general, less advanced economically than the other 15. Of the 12 most recent member states, only Slovenia (1 January 2007), Cyprus and Malta (1 January 2008), Slovakia (1 January 2009), and Estonia (1 January 2011) have adopted the euro; the remaining states other than the UK and Denmark are legally required to adopt the currency upon meeting EU's fiscal and monetary convergence criteria.
GDP (purchasing power parity):
$14.89 trillion (2010 est.) country comparison to the world: 1 $14.64 trillion (2009 est.)
$15.27 trillion (2008 est.)
note: data are in 2010 US dollars
GDP (official exchange rate):
$15.9 trillion (2010 est.)
GDP - real growth rate:
1.7% (2010 est.) country comparison to the world: 160 -4% (2009 est.)