Presented By, Santhosh G.K Divya Mohit Tharani Raja A.P Jack Shreyesh Suhas
Europe is traditionally reckoned as one of seven continents. Europe is
the world's second-smallest continent by surface area, covering about
10,180,000 square kilometres (3,930,000 sq mi) or 2% of the Earth's surface and about 6.8% of its land area. Physiographically, however, it is the north-western peninsula of the larger landmass known
as Eurasia. Asia occupies the eastern bulk of this continuous landmass (the Suez Canal separating Asia and Africa) and all share a common continental shelf.
Europe's eastern frontier is delineated by the Ural Mountains in Russia. The south-east boundary with Asia is not universally defined. Most commonly the Ural or, alternatively, the Emba River serve as possible boundaries. The boundary continues to the Caspian Sea on to the Black Sea and the Sea of Marmara conclude the Asian boundary. The Mediterranean Sea to the south separates Europe from Africa. The western boundary is the Atlantic Ocean; Iceland. The mainland Europe, is generally included in Europe for cultural reasons.
London has a milder climate. London winters are warmer and summers are cooler than those in the middle of North America. . London is on an island in the Atlantic Ocean. Currents in the Atlantic affect the climate of London and much of Western Europe. Air blowing over Western Europe from off the North Atlantic Drift usually keeps winter temperatures warmer. In summer, ocean breezes cool those parts of Western Europe near the coast. Ocean currents have less effect on places farther from the coast. Berlin,
a city in Germany, is located at about the same latitude as London, but
Berlin is farther from the ocean. As a result, Berlin winters are somewhat cooler.
Although Europe is the second smallest continent, it ranks second to Asia in population. Western Europe is a crowded continent. France has a population density of 263 persons per square mile. Germany has a population density of 571 per square mile. The small country of the Netherlands has the highest population density, with 1,040 persons per square mile. Most Western Europeans live in cities and towns. Paris, the capital city of France, has a population density of 19,893 persons per square mile. France's city-dwellers make up 77 percent of its population. . Even in the country of Sweden, which has a low population density of 49 persons per square mile, 85 percent of the people live in cities. In most Western European countries, the capital cities are also the largest cities. Rome is the largest city in Italy, Paris is the largest in France, and London the largest in England.
Operating as a single market, the EU is a major world trading power. A monetary union, the eurozone, uses a single currency, the Euro, comprising 27 member states. The EU is seeking to sustain economic growth by investing in transport, energy and research – while minimising the impact of further economic development on the environment. GDP (nominal)2010 (IMF) estimate Total$16,242 trillion - Per capita$32,537
Trade: With just 7% of the world’s population, the EU's trade with the rest of the world accounts for around 20% of global exports and imports. The EU is the world’s biggest exporter and the secondbiggest importer. Around two thirds of EU countries’ total trade is done with other EU countries. The United States is the EU’s most important trading partner, followed by China. In 2005, the EU accounted for 18.1% of world exports and 18.9% of imports. Employment: Over the past 50 years, employment in agriculture and industry has fallen, while more and more people now have a job in the service sector. Unemployment has increased in the wake of the recent economic and financial crisis and now stands at 7.5% in the EU.
Real GDP growth
GDP - composition by sector
Tackling the crisis together The EU has taken a coordinated response to the current financial and economic crisis since it began in October 2008. National governments, the European Central Bank (ECB) and the Commission have been working together to protect savings, maintain a flow of affordable credit for businesses and households and put in place a better financial governance system worldwide. The aim is not just to restore stability, but to create the conditions for a re-launch of growth and job creation. So far, EU governments have pumped more than €2 trillion into the rescue effort. EU leaders coordinated interventions, supporting banks and allowing guarantees for lending. The EU also increased national guarantees for individuals’ savings accounts to a minimum of €50 000.
Financial supervision The European System of Financial Supervisors is an institutional architecture of the EU's framework of financial supervision composed by three authorities: the European Banking Authority, theEuropean Insurance and Occupational Pensions Authority and the European Securities and Markets Authority. To complement this framework, there is also a European Systemic Risk Board under the responsibility of the ECB. The aim of this financial control system is to ensure the economic stability of the EU.
The primary legislation, or treaties, are effectively the constitutional law of the European Union. They are created by governments from all EU Member States acting by consensus. They lay down the basic policies of the Union, establish its institutional structure, legislative procedures, and the powers of the Union.
Direct effect European Union law which can be directly enforced by courts in member states is said to have direct effect. European treaty articles, regulations and decisions can have direct effect, but only if they are sufficiently clear and unconditional, and there may be no scope for member states to exercise discretion in implementation. Supremacy doctrine The European Court of Justice held that in situations where there is a conflict between the laws of member states and European Union law, European Union law prevails, because "a subsequent unilateral act incompatible with the concept of the Community cannot prevail". However, according to the 1993 Maastricht Accord the European Union does not prevent member states from maintaining or introducing more stringent laws on working conditions, social policy, consumer protection and the environment, so long as these laws are comply with the Treaty of Rome, which has relevant provisions in these areas.
Proportionality The legal concept of proportionality is recognised one of the general principles of European Union law by the European Court of Justice since the 1950s. It states that "the individual should not have his freedom of action limited beyond the degree necessary in the public interest". Legal certainty The concept of legal certainty is recognised one of the general principles of European Union law by the European Court of Justice since the 1960s. It means that the law must be certain, in that it is clear and precise, and its legal implications foreseeable, specially when applied to financial obligations.
Fundamental rights "Respect for fundamental rights form an integral part of the general principles of law protected by the Court of Justice. The protection of such rights, whilst inspired by the constitutional traditions common to the member states, must be ensured within the framework of the structure and objectives of the Community." The Charter of Fundamental Rights None of the original treaties establishing the European Union mention protection for fundamental rights. It was not envisaged for European Union measures, that is legislative and administrative actions by European Union institutions, to be subject to human rights. At the time the only concern was that member states should be prevented from violating human rights, hence the establishment of theEuropean Convention on Human Rights in 1950 and the establishment of the European Court of Human Rights.
The politics of Europe deals with the continually evolving politics within the continent. It is a topic far more detailed than other continents due to a number of factors including the long history of nation states in the region as well as the modern day trend towards increased political unity amongst the European states. The current politics of Europe can be traced back to historical events within the continent. Likewise geography, economy and culture have contributed to the current political make-up of Europe. Modern European politics is dominated by the European Union
Despite vastly improved relations between Russia and the Western European states since the end of the cold war, recently tensions have risen over the spread of "Western" organizations, particularly the EU and NATO, eastwards into former USSR states.
GUAM Organization for Democracy and Economic Development is a regional organization of four CIS states: Georgia, Ukraine, Azerbaijan, and Moldova. The group was created as a way of countering the influence of Russia in the area, and it has received backing and encouragement from the United States. Though at one point it was generally considered to have stagnated, recent developments have caused speculation on the possible revival of the organization.
The Commonwealth of Independent States (CIS) is a confederation consisting of 12 of the 15 states of the former Soviet Union, (the exceptions being the three Baltic states). Although the CIS has few supranational powers, it is more than a purely symbolic organization and possesses coordinating powers in the realm of trade, finance, lawmaking and security. The most significant issue for the CIS is the establishment of a full-fledged free trade zone / economic union between the member states, launched in 2005. It has also promoted cooperation on democratization and cross-border crime prevention.
The culture of Europe might better be described as a series of overlapping cultures. Whether it is a question of North as opposed to South; West as opposed to East; Orthodoxism as opposed toProtestantism as opposed to Catholicism; many have claimed to identify cultural fault lines across the continent. There are many cultural innovations and movements, often at odds with each other, such as Christian proselytism or Humanism. Thus the question of "common culture" or "common values" is far more complex than it seems to be.
The foundation of European culture was laid by the Greeks, strengthened by the Romans, stabilized by Christianity, reformed and modernized by the fifteenthcentury Renaissance and Reformation and globalized by successive European empires between the sixteenth and twentieth centuries. Thus the European Culture developed into a very complex phenomenon of wider range of philosophy, Christian and secular humanism, rational way of life and logical thinking developed through a long age of change and formation with the experiments of enlightenment, naturalism, romanticism, scien ce,democracy, and socialism. Because of its global connection, the European culture grew with an all-inclusive urge to adopt, adapt and ultimately influence other trends of culture.
Individualism is most important Work comes first Social life Large number of population over large geographical area Tradition is not as important Unity among diversity Strict environmental laws
After currency standardization $1.952 trillion in 2007
Ranked first across the globe in terms of export volumes.
Trade fell in 2009 by EUR billion 577.4 to EUR billion 2 294.1 Exports fell by 16 % to EUR billion 1 094.4 Imports fell by 23 % to EUR billion 1 199.7 Exports in Jan 2010 was 81.6 bn Imports fell by more than exports, leading overall reduction trade deficit of over EUR 150 billion, almost 60%.
The main commodities exported are: Machinery Motor vehicles Aircraft Plastics Pharmaceuticals and other chemicals Fuels Iron and steel Nonferrous metals Wood pulp and paper products Textiles Meat Dairy products Fish Alcoholic beverages
Germany remains the largest player in terms of European trade, while the UK remains a financial hub for most activities in Europe.
International trade amounts to 3,764 billion USD as per 2001 Trade deficit for January 2010 extra-EU27 was a 22.5 bn euro deficit, compared with -28.0 bn in January 2009
Companies most prone to be effected TATA STEEL Earns 60% of its revenue Sluggish demand: increase of procurement cost
Hindalco After take over of Novelis 32% of its consolidated revenues from euro 12 facilities and 1 recycling plant
Before economic crisis, it contributed some 17.1% of GDP and accounted for some 22 million jobs (2007).
EU exports have expanded by 4.7% p.a. over 2000-2008,
substantially faster than the growth of industrial production. Despite
intensified international competition, the European trade performance has held up notably well compared to the US and the Japanese performance. In some sectors, and despite the appearance of new major global players such as China, the EU increased its share of world exports between 1996 and 2006, notably in chemicals, pharmaceuticals, and motor vehicles. In other sectors,
the EU has better resisted the challenge of China than the US and
Japan, particularly in metal products and electrical machinery.
The process of globalisation has exposed numerous subsectors much more to exchange-rate volatility,
especially for those industries that mainly compete on
costs as opposed to quality or service.
The need to benefit from the opportunities of new international markets and respond to intensified global competition; the key role of the Single Market and better regulation; the importance of technology and
innovation and in particular of key new technologies and ICT;
The need to improve energy and resource efficiency and to make the transition to a low carbon economy; the importance of the supply of raw materials; the need to manage restructuring and ensure adequate access to finance;
The shortage of adequate skills in the workforce and the need to ensure
skill transitions from professions with declining demands to emerging
The increased role of business services;
The importance of a favourable entrepreneurial and business
environment, especially for SMEs;
The need to respond to the emerging societal challenges such as
demographic change and the requirements of improved health and
The impact on manufacturing employment has also been serious with a
decline in the number of jobs by some 9.9% in the fourth quarter 2009
compared to the peak of employment in the third quarter of 2008.
The output of the technology-intensive investment goods, such as
mechanical and electrical engineering and ICT, has fallen substantially
as a consequence of the downturn with output initially falling some 2030% below its peak
According to surveys, capacity usage in these industries in the fourth
quarter of 2009 was some 10-20% below average capacity utilization rates.
The situation of the automotive sector is somewhat special. The sector initially faced a
40% collapse in output, before the implementation at national level of
scrapping schemes helped stabilize consumer demand. Output however is still some 25% below its peak and there is evidence of serious overcapacity
The creation of the single market and the corresponding increase in trade
and general economic activity transformed the EU into a major trading
power. The EU is trying to sustain economic growth by investing in transport, energy and research, while also seeking to minimise the environmental impact of further economic development.
The availability of mezzanine financing for SMEs has suffered, in many
cases, due to its heavy reliance on securitisation. Sectors characterised by
long delays between the start and the completion of work, such as shipbuilding, aeronautics or the construction sector suffered from malfunctioning financial markets. The sharp fall in demand coupled with longer payment delays on receivables and an increase in enterprise insolvencies have only made matters worse for companies' liquidity situation. Member State governments and central banks intervened forcefully in late 2008 and 2009 to stem the fall in lending.
Euro area loans to non-financial enterprises have contracted over the last
year by some 2.5%, with
short-term credit contracting by 12.5%
The EU's strong overall performance is due to an upgrading of the quality
of its exports, combined with the ability of EU companies to sell products
at premium prices because of quality, branding and related services, i.e. its focus on producing products with high value-added. EU trade in this production segment represents 30% of world market for these products (as much as USA and Japan combined) and half of EU exports.
The EU is the world's biggest investor and the principal host of foreign
direct investment. When intra-EU stocks are excluded, the EU owned 36%
and hosted 29% of world investment stocks in 2008.9At the end of 2006, cumulative EU FDI stock in the rest of the world is valued at € 3.3 trillion, whilst cumulative FDI by the rest of the world in the EU was € 2.4 trillion.10 Industry sectors in Europe differ greatly in their degree of internationalisation.
Within manufacturing, the petroleum, chemical, rubber and plastic
products, metal products, motor vehicles, and other transport equipment
represent the highest concentration of outward stocks. The EU is a net investor in all manufacturing industries except in textiles and woodworking sectors11. However, in business services inward investments exceed EU investment in the rest of the world.
Investment in research and innovation is crucial to European industry’s
ability to remain globally competitive. The 2009 "EU Industrial R&D
Investment Scoreboard" analyses information on the top 1000 EU companies and the top 1000 non-EU companies ranked by their investments in research and development (R&D). The Scoreboard shows that corporate investment in R&D continued to grow in 2008 albeit at a lower pace than in the previous year.
In the EU 49% of the R&D investment takes place in medium-high R&D-
intensity sectors (mainly automobiles and parts, electronic and electrical
equipment, chemicals, aerospace and defence).