Free «EU Gross Domestic Product» UK Essay Paper
Table of Contents
There have been tremendous growths in the EU GDP since the enactment of the Single European Act back in 1986. This is revealed in the way the member countries’ economies have grown to make the EU among the greatest economy with a very high purchasing power. This cannot be compared to years before when trade barriers hindered the movement of goods, capital and people on the market. Before the SEA in 1986, the GDP of most countries in Europe was very low. Their growth rates were minimal and they could not be where they are today without the utilisation of the benefits that an integrated market carries with it. For example, the economic power of Spain grew by a tremendous margin from 1986 to 2008. Its GDP saw a steady rise during this period peaking only in 2008 because of the economic crisis that affected the status of the economies of different countries throughout the world. However, an analysis of this country’s GDP have rose to make it a nations among the top five with the largest GDP in the world. On the other hand, there are till signs that this economy still has opportunities of growing even more than it is at the moment (Harryvan and Harst 260).
There has also been a rise in Foreign Direct Investment that has been attributed to Single European Market. Many countries has recorded in their data that there has been an increase in the amount of Foreign Direct Investments in their respective economies since the introduction of the Single European Market. This has been associated with lessening of the trade laws and regulations in the member countries in this Europe. This has increased the overall Foreign Direct Investments in the whole of Europe and to be specific in the EU territories. This was mainly from Japanese and American firms (Harryvan and Harst 22).
As a result of this, there has been an increased competition among industries, a factor that has led to the embracing of efficiency as a way of conducing business in these economies. Without efficiency, one cannot be able to challenge the competition that arises from similar players in the market. On the other hand, there has been a creation of many job opportunities as businesses challenges each other in their quest of possess a bigger share in the market. As people are empowered economically, this has increased their GDP per capita and made most of them to live above the poverty line by a substantive margin. It important to note that this growth would not have been attained had it not been for the working together of the economies in Europe to help each other to grow (Harryvan and Harst 260).
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Alternatively, it would have taken a longer period for these economies to be where they are today. Therefore, their achievements lies in the fact they have work together as a team, something that can be emulated by other economies in other parts of the world. According to Cecchini Report, there are various barriers that raise the cost of doing business in the market, thus raising the overall cost of doing business. However, the coming together of the European countries has been able to eliminate some of these barriers such as the customs levy and other charges that are incurred when business is being done on two different levels, i.e. operating in markets that have different trade laws and regulations is very expensive (Harryvan and Harst 238).
Is it true that wherever you are located in the EU, it is a truly integrated market? The answer to this question is contained in the journey that the united countries have taken over the years to be where they are today. While there are still several areas that are yet to be covered in the vision of the Single European Market, this market one of the most integrated markets in the world, considering that it is a market that comprises of 27 countries and have been faced by many challenges such as language and governance system barriers. The elimination of most of the trade barriers reveals how this market is integrated everywhere throughout the EU.
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