EUROPE – What makes the EU tick?

The EU was not always as big  as it is today. When European countries started to cooperate economically in 1951, only Belgium, Germany, France, Italy, Luxembourg and the Netherlands participated.

Over time, more and more countries decided to join. The union reached its current size of 28 member countries with the accession of Croatia on 1 July 2013.

The creation of the single market and the corresponding increase in trade and general economic activit 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 minimize the environmental impact of further economic development.

The EU's economy — measured in terms of the goods and services it produces (GDP) — is now bigger than the US's: EU GDP in 2012: €12 945 402 million.

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.

Around two-thirds of EU countries’ total trade is done with other EU countries.

Trade has been hit by the  global recession, but the EU remains the world’s largest player accounting for 16.4% of global imports in 2011. The EU is followed by the United States with 15.5% of all imports, and China with 11.9%. The  EU was also the biggest exporter, accounting for 15.4% of all exports -  compared with 13.4% for China and the 10.5% for the United States.

The EU's also has a unique institutional set-up:

• the EU's broad priorities are set by the European Council, which brings together national and EU-level leaders
• directly elected MEPs represent European citizens in the European Parliament
• the interests of the EU as a whole are promoted by the European Commission, whose members are appointed by national governments
• governments defend their own country's national interests in the Council of the European Union.

The European Council sets the EU's overall political direction – but has no powers to pass laws.

Led by its President – currently Herman Van Rompuy – and comprising national heads of state or government and the President of the Commission, it meets for a few days at a time at least every 6 months.

Law making: There are 3 main institutions involved in EU legislation:

• the European Parliament, which represents the EU’s citizens and is directly elected by them;
• the Council of the European Union, which represents the governments of the individual member countries. 
• The Presidency of the Council is shared by the member states on a  rotating basis.
• the European Commission, which represents the interests of the Union as a whole.

Together, these three institutions produce through the "Ordinary Legislative Procedure" (ex "co-decision") the policies and laws that apply throughout the EU.

In principle, the Commission proposes new laws, and the Parliament and Council adopt them. The Commission and the member countries then implement them, and the Commission ensures that the laws are properly applied and implemented.

Read more: EUROPA and the European project