There are various economic benefits a country would gain by joining the European Union. First, it would benefit from advantages of single market being offered by EU. Currently, EU is the largest single market in the world with harmonization of regulations and standards that ensure free circulation of goods and services. This enhances the availability of market for a country’s goods and services and also creates room for competitive imports that would further improve efficiency in the home industries. Secondly, when a country joins EU, it would benefit from the use of common Euro currency. EU has a large number of members thereby increasing on the value of the currency. Consequently, traveling within and outside EU would be easy since Euro is an internationally recognized currency. In addition, a country within EU jurisdiction would be able to avoid fluctuation in exchange rate since it would be using the same currency as other EU members. This would create stability in importation and exportation of goods and services thereby eliminating the risk of a fluctuating currency that would have increased the cost of production. A case in point is the current credit crunch that has affected most economies whose currency fluctuated leading to instability in the economy. However, countries within the Union kept on enjoying the benefit of strong currency. Third, greater transparency in prices enhances healthy competition within the members’ States thus increasing efficiency that would further reduce on the prices of goods and services. In addition, borrowers and savers would benefit since they would have wider financial market to choose from within the EU. Rational investors would therefore invest in a financially liquid market to rip greater benefits (Center for Economic Policy Research).
Despite all the advantages of joining EU, some countries may choose not join for various reasons. First, a country that believes it is a sovereign State capable of formulating its own laws and policies would shy away from this Union. This is because, once a country joins the Union, it has to abide by the rules and regulation governing the Union thereby loosing its sovereignty. A case in point is the refusal by Britain that considers itself an independent and economically powerful nation to join EU for fear of loosing it sovereignty. Secondly, countries enjoying lower cost of trading with countries that are not members of EU would shy away from the Union for fear of trade diversion. When a country joins the Union, it would be force to trade with countries within the Union even if the cost is high. Consequently, a country enjoying low cost trade with other countries would opt not to join the Union to avoid unnecessary cost in trade. Third, a country may choose not join the Union due to the trade restriction that the Union imposes to the members (Marks).
European Union has a bright future especially with the incorporation of many countries there by increasing their market size and strengthening Euro against other major currencies. However, as countries continue to join without much restriction, cultural dilution would arise. EU allows free movement of labor and Capital from one county to another. Therefore, this implies that there would be cultural diversity in each country especially in countries that would be offering more friendly services and remunerations. As labor moves from one area to another, they carry with them their cultural practices thus influencing the natives’ culture. In the long run, there would be cultural confusion and conflict that would lead to an end to various cultural practices. Religion, is likely to be shared among all the members within the Union and the incorporation of Turkey, an Islamic nation, it is likely that the religion of Islam would be adopted through intermarriages and through other ways. Considering Muslim practice of Jihad, it is likely that terrorism would be practice in EU membership hence compromising the lives of many innocent Civilians.
Work Cited
Center for Economic Policy Research. The Costs and Benefits of EU. 2009. Web.
Future of European Union. 2009. Web.
Marks, Denton. ECONOMIC INTEGRATION AS BLESSING AND CURSE: ISSUES FOR THE TRANSITION ECONOMIES. University of Wisconsin-Whitewater. 2009. Web.