How the EU is shaping the business world
The European Union (EU) is not only a political and economic union of 27 member states, but also a major player in the global business arena. The EU has a single market that allows the free movement of goods, services, capital and people within its borders, as well as a common currency, the euro, that is used by 19 of its members. The EU also has a set of rules and standards that aim to ensure fair competition, consumer protection, environmental sustainability and social responsibility for businesses operating in or with the EU.
One of the main objectives of the EU is to create a level playing field for businesses in the internal market, while also promoting innovation and competitiveness. To achieve this, the EU has harmonised some aspects of company law, such as disclosure requirements, takeover bids, mergers and divisions, financial reporting and accounting. The EU has also adopted directives and regulations on specific sectors or issues, such as data protection, digital services, taxation, competition, state aid, public procurement and trade.
The EU is constantly updating and adapting its rules and standards to reflect the changing needs and challenges of the business world. For example, in 2019, the EU adopted a company law package that aims to make it easier for companies to operate across borders within the EU, by introducing new digital tools and procedures for company registration, online filing of documents and information, cross-border conversions, mergers and divisions. The package also includes measures to protect the interests of employees, shareholders and creditors in cross-border operations.
Another example is the European Green Deal, which is the EU's ambitious plan to make Europe the first climate-neutral continent by 2050. The Green Deal sets out a roadmap for transforming the EU's economy and society, with actions in areas such as energy, transport, industry, agriculture, biodiversity and circular economy. The Green Deal also involves mobilising public and private investment to support green innovation and create new business opportunities.
The EU is not only shaping the business world within its borders, but also beyond them. The EU is one of the largest trading blocs in the world, with a market of over 450 million consumers and a GDP of around 15 trillion euros. The EU has trade agreements with over 70 countries and regions around the world, covering almost a third of global trade. These agreements provide preferential access for EU businesses to foreign markets, while also ensuring that trade is fair and sustainable.
The EU is also a global leader in setting standards and norms for products and services, such as food safety, environmental protection, consumer rights and data privacy. These standards often become benchmarks for other countries or regions, creating a positive spillover effect for EU businesses. For example, the General Data Protection Regulation (GDPR), which came into force in 2018, is considered one of the most comprehensive and strict data protection laws in the world. It gives individuals more control over their personal data and imposes obligations and sanctions on data controllers and processors. The GDPR has inspired similar legislation in countries such as Brazil, Japan and South Korea.
The EU is throwing its weight around the business world by creating a single market that fosters innovation and competitiveness, by adopting rules and standards that ensure fair and sustainable business practices, and by engaging in trade and cooperation with partners across the globe. The EU is not only a union of states, but also a union of values that aims to promote democracy, human rights, social justice and environmental protection through its policies and actions.
Sources:
- https://commission.europa.eu/business-economy-euro/doing-business-eu_en
- https://www.europarl.europa.eu/factsheets/en/sheet/35/company-law
- https://european-union.europa.eu/priorities-and-actions/actions-topic/business-and-industry_en