Although primarily a trade alliance the European Union also is a social alliance. It was set up in 1951, and was originally a group of six countries. These countries could see the benefits of greater co-operation and did not want the repetition of the conditions that led to the second world war. It has grown into an alliance of 15 countries with other countries applying to join.

People disagree about the usefulness of the E.U.
People who are in favour of the E.U. put forward the following advantages

• Free trade (no tariffs or quotas) benefits industries as they have a larger market to sell their goods to
• Greater co-operation between countries should prevent the outbreak of war between members
• Greater cultural understanding results from freedom to travel within the E.U.
• The E.U. has a greater influence on world events than the individual countries could have
• European Union regional development funding has improved conditions in the poorer countries and areas

People who are not in favour of the E.U. give the following disadvantages

• Goods cost more to import from non-E.U. countries due to tariffs
• E.U. funded schemes, such as the Common Agricultural Policy, are expensive, inefficient and sometimes corrupt
• Whereas some areas are net receivers, some richer countries are net donors, that is they have to spend give money to the poorer countries. Germany is a net donor and Greece is a net receiver
• It reduces the political independence of each country - decisions are taken for all countries by the European Parliament