INTRODUCTIONEurope is the sixth largest continent in size and the third largest in population. It consists of 50 countries.

It is bordered by Mediterranean sea to the south, Atlantic ocean to the west, Arctic ocean to the north and Asia to the east.

It has area of 10,180,000 km2.

Population density of 72.9/km2

It has single Currency ,i.e. euro

Russia is by far largest by both area and population while Vatican city is the smallest.

The climate of Europe varies from subtropical to polar.

It has been home to some of the earth’s greatest civilisation and also to the birth of democracy.

To promote greater cooperation and further integrate their economies and, Europeans sought to minimize the variability of their exchange rates In 1979, the European Monetary System (EMS) linked EU member currencies to the Deutschemark in a fixed-rate regimeIn 1992 Maastricht Treaty, EU members agreed to create a common currency (the euro) managed by a single authority, the European Central Bank (ECB)

History Of Europe

Geopolitics is a method of studying Foreign Policy to understand, explain and predict international political behavior through the study of the relationship among politics and geography demography, and economics, especially with respect to the foreign policy of a nation .

Geopolitics Of Europe

Geopolitics of srategiclocationGeographical proximities

Regionalism

Demographic dimension

Recent case is of Ukraine- Russia unrest.• Until recently, the greatest risks to European stability

were internal. The euro-zone debt crisis triggered tensions between and within member states that at various times looked likely to lead to serious social unrest and even a breakup of the currency union.

• Instead, the most pressing threats to European stability are now external.

• The shooting down of Malaysia Airlines Flight 17 with 298 people on board has dramatically raised the stakes in the war between the government of Ukraine and the pro-Russia separatists in the Donetsk region on the EU's eastern border. If Russian involvement is proved, calls for a far tougher European response than has so far been contemplated will surely be impossible to resist

History Of European Union European integration:● Initiated in Western Europe in aftermath of World War II. ●context marked by politicaland economic reconstruction, beginning of Cold War. Three Communities created in 1950s:●European Coaland Steel Community (ECSC), ●European Atomic EnergyCommunity (Euratom) and● European EconomicCommunity (EEC), with six member states.

From 6 (1951) founding members to 28(2015) membersFounding members are Belguim ,France ,Italy ,Luxembourg , Germany and the Netherland

Working Of EUThree main institutions are responsible for the day-to-day running of the European union.

The European Commission:

To propose new EU laws;

To manage and implement EU policies and the budget

The council for europeanunion.

To conclude international agreements between the EU and other countries

To coordinate cooperation between national courts and police forces in criminal matters.

The European Parliament:

▪To pass EU laws, jointly with the Council, in many policy areas;▪To approve or reject the budget proposed

by the Council.

Benign environment gave way to the Great Recession in 2008 which shook confidence in lending to the periphery

As their debts mounted, foreign banks became doubtful that peripheral countries could repay, which forced interest rates higher—a vicious circle

Crisis followed with the economic turmoil in PIIGS countries.

P – Portugal

I – Ireland

I – Italy

G – Greece

S - Spain

European Sovereign Debt Crisis

Failure of PIIGS nation in repayment of Public Debt.

Dominance by strong countries in European trade

TRILLEMADemocracy – Sovereignty – Globalization

Possible Causes of Crisis

European Free Trade Association – EFTA

European Economic Area – EEA

EFTAs Free Trade Agreements

Bilateral Free Trade Agreements

Termination of Agreements

Issues that require specific attention in the negotiations

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VARIOUS TYPES OF AGREEMENT

First generation EFTA Free Trade Agreements (FTAs) establish a free trade area between the partner countries by:

providing for free trade in industrial goods, including fish and other marine products;

liberalising trade in processed agricultural products; including trade disciplines; andestablishing rules on customs and origin matters.Trade in basic agricultural products is covered by bilateral

agreements between the individual EFTA States and the partner country, which form part of the instruments establishing the free trade area.

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What is in an EFTA Free Trade Agreement?

Second generation elements:

Intellectual Property Rights

Services

Investment

Government Procurement

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What is in an EFTA Free Trade Agreement? (2)

EUROPE & INDIA

The EU and India are committed to further increase their trade flows in both goods and services as well as bilateral investment and access to public procurement through the Free Trade Agreement negotiations that were launched in 2007

India is an important trade partner for the EU and an emerging global economic power. The country combines a sizable and growing market of more than 1 billion people.

The value of EU-India trade grew from €28.6 billion in 2003 to €72.7 billion in 2013.

EU investment stock in India grew substantially reaching €41.8 billion in 2012.

Trade in commercial services quadrupled in the past decade, increasing from €5.2billion in 2002 to €22.7 billion in 2012.

Trade picture

European Industries

AUTOMOTIVE

The report states that almost 34 percent of vehicles in the world are manufactured in Europe.

The EU has a share of 7.6 percent in the manufacturing sector. Its automotive industry offers direct employment to more than two million people.

The big names in the European automotive industry are Volkswagen, Mercedes-Benz, Aston Martin, BMW, Ferrari, Jaguar and Lamborghini.

AEROSPACE

France and the UK are the leading employment providers in the aerospace industry. Spanning over 4 million employees, a majority of them are absorbed in aircraft technology, while the remaining employees are recruited in space and missile programs.

Chemicals European industry is a global leader in the production of chemicals. It comprises 27 percent of the world's total production, with Germany as its leader, followed by France, Italy and the UK. Small to medium sized companies dominate the production of chemicals.

Major chemical products include:

petrochemicals

polymers

fine chemicals

Defense

The European defense industry generates employment for 770,000 people. The defense industry

includes: space aeronautics electronics military vehicles ships armory

Biotechnology

European industry is known to be generating annual revenue of $23.3 billion. The EU 2005 report reveals that almost 20 percent of the medicines and 50 percent of the drugs come from the biotech industry. Pioneers in the biotechnology industry are the MEDICON Valley and the Munich region.

Food

European industry dominates the food industry as its largest importer and second largest exporter in the world. Its most popular destination is the US, followed by Japan, Switzerland and Russia.

European industry faces the challenge of tackling scarcity of skilled employees so that it continues to sustain its share in global trade.

Country Imports Exports Total

EU 1798 1683 3481

US 1817 1203 3020

China 1415 1594 3009

Japan 689 621 1311

Biggest importer and exporter

Destination of EU exports: % of EU exports:

United states 16.5

Switzerland 10

China(excl. Hong Kong) 8.5

Russia 7

Destination of EU exports

Origin of EU imports % of EU Imports

China 16.5

Russia 12.5

Switzerland 11.5

United states 5.5

Origin of EU Imports

Problems Faced By European Exporters?

Import tariffs and quotas

Discriminatory regulations and standards

How EU addresses these problems?

EU addresses these problems with the help of TWO main instruments

{A}: the market access Partnership

{B}: the market access Database

1: the EUROPEAN COMMISSION monitors and assists affected EU industries.

2: closely monitors the development of trade defense investigations initiated by non-EU countries

3: EU publishes statistics concerning ongoing investigations & measures in force

4: advices & assists EU national authorities

5: promotes discipline & seeks to make non-EU countries comply with their WTO obligations.

EU trade defense POLICY

0 20 40 60 80 100

INDIA

CHINA

USA

TURKEY

BRAZIL

PAKISTAN

Series 3

Series 2

Series 1

Trade defense measures against EU

EU IMPORTS tariffs are lowest in the world

The most open to developing countries

2/3 of EU imports are raw materials

FACTS about EU imports

The European Central Bank (ECB) is the central bank for the euro and administers monetary policy of the Eurozone.

It consists of 19 EU member states and is one of the largest currency areas in the world.

The capital stock of the bank is owned by the central banks of all 28 EU member states.

Banking in Europe

Major Banks in Europe

Ireland

Bank of Ireland

Allied Irish Banks

Danske Bank

Ulster Bank

Spain

Bankia

BBVA

Caixabank

Santander

UK

Barclays

HSBC

Lloyds Banking Group

Royal Bank of Scotland Group

The environmental problems in Europe are complicated owing to the complexities resulting from the industrial Revolution. Various problems that are related with environment are:

HARMFUL CHEMICALS: In Europe, the chemical industries, which contribute to the pollution are growing at an ever-increasing pace and are cause of concern.

AIR POLLUTION:World’s largest and most industrialisedcountries are in Europe. Country with the worst air pollution is UK.Word smog was first used in 1905 to describe air in London.40% of greenhouse gases and 70% of total air pollutants are generated by thr vehicles.

Environmental issues

ACID RAINS : the problem of acid rain has affected most of the European nations and Greece is among the worst hit . It has caused destructions of crop , damaged the ancient monuments ,affected the lakes. 25% of total forest cover in Austria is damaged due to acid rains.

ENDANGERED SPECIES : According to a report by the International Union for Conservation of Nature and Natural Resources(IUCN),in a period of just 4 years(from 2002 to 2006),5 species of mammals,7 fish species,8 bird species,22 invertebrate species have become endangered.

Human Rights Of Europe• The Government Signatory Hereto, being

members of the Council of Europe , considering the universal declaration of human rights proclaimed by the General Assembly of the United Nations 10th Dec, 1948.Have agreed as follows:-

• Article 1- Obligation to respect human rights • SECTION –I Right and freedoms • Article 2- Right to life• Article 3 –Prohibition of torture• Article4- Prohibition of slavery &forced labour• Article5- Right to liberty & security • Article 6- Right to a fair trail

& so on….

Labor Laws

Labour Law mediates the relationship between workers ,employers, trade unions & the government . Collectively labour laws relates to the tripartite relationship between employee , employer and union . Individual labour law concerns employees’ right at work and through the contract for work .

Employment standards are social norms for the minimum acceptable conditions under which employees or contractor are allowed to work.

THANK YOU

Prepared By: Midhat Rehman

Rakhshanda Parveen

Chhaya Singh

Mahek Tahoor

Anshul Aggarwal