By: Mahima Sharma, Research Analyst, GSDN

In a world increasingly defined by globalization, the European Union (EU) stands as a remarkable experiment in political and economic integration. Established in the wake of World War II, the EU was designed to foster cooperation among its member states, ensuring that the devastating conflicts of the past would not be repeated. Today, it comprises 27 nations, collectively representing over 449 million people and generating a significant portion of the global economy. The EU has successfully implemented policies that promote free movement, economic collaboration, and shared governance, earning accolades such as the Nobel Peace Prize in 2012 for its role in promoting peace and democracy across Europe.

However, as we delve into the question of whether the EU has been successful, it becomes evident that this union faces formidable challenges. From economic disparities among member states to rising nationalism and Euroscepticism, the EU’s unity and effectiveness are under scrutiny. Assessing its success is crucial not only for understanding its past accomplishments but also for shaping its future trajectory in a rapidly changing geopolitical landscape. Ultimately, while the EU has achieved significant successes in various areas, it grapples with challenges that question its overall effectiveness and sustainability as a cohesive entity.

Why EU Exists?

The European Union (EU) was formally established by the Maastricht Treaty, signed in 1992 and effective from November 1, 1993. This treaty marked a significant transformation of earlier European communities into a more integrated political and economic union. The EU’s foundation was built on three primary treaties: the Treaty of Paris (1951), which created the European Coal and Steel Community (ECSC), and the two Treaties of Rome (1957), which established the European Economic Community (EEC) and the European Atomic Energy Community (EURATOM). The Lisbon Treaty, which came into force in December 2009, further reformed these foundational treaties, enhancing the EU’s institutional framework and decision-making processes.

The key objectives of the EU, as outlined in the Lisbon Treaty, include promoting peace, its values, and the well-being of its peoples; establishing an area of freedom, security, and justice; promoting sustainable development based on balanced economic growth and price stability; and fostering economic, social, and territorial cohesion among member states.

The EU has experienced several significant milestones throughout its history. One of the most notable expansions occurred in 2004 when ten new countries joined the Union, marking the largest single enlargement in terms of both number of countries and population. This expansion was pivotal in promoting stability and prosperity in Eastern Europe following the end of the Cold War.

In recognition of its role in fostering peace and reconciliation across Europe, the EU was awarded the Nobel Peace Prize in 2012. This accolade underscored the Union’s contributions to transforming a continent historically plagued by conflict into one characterized by cooperation and unity.

What has EU accomplished?
The European Union has made remarkable strides in economic integration, most notably through the creation of the single market. Established to facilitate the free movement of goods, services, capital, and people, the single market has significantly impacted trade among member states. By removing tariffs and regulatory barriers, it has enabled a more competitive environment that fosters innovation and efficiency. The EU’s single market is now one of the largest and most open common markets in the world, allowing for extensive internal trade that surpasses external trade for many member states.

Post-accession economic growth has been particularly pronounced in Eastern European countries that joined the EU during the 2004 enlargement. These nations have benefited from increased foreign investment, access to larger markets, and EU funding aimed at enhancing infrastructure and economic stability. As a result, average GDP per capita in these countries has risen significantly, narrowing the income gap with their Western European counterparts.

One of the EU’s most significant achievements is its role in promoting peace and political stability across Europe. For over six decades, the EU has maintained a framework that encourages diplomatic dialogue and conflict resolution among member states. This unprecedented period of peace is often attributed to the economic interdependence fostered by EU membership, which discourages conflicts that could disrupt trade and cooperation.

Moreover, the EU actively contributes to global diplomatic efforts, positioning itself as a key player in international relations. Through initiatives such as humanitarian aid, peacekeeping missions, and trade negotiations, the EU seeks to promote stability not just within its borders but also in regions facing conflict or instability.

The EU has also made significant advancements in social progress, particularly concerning human rights and social justice. It has established frameworks that protect individual rights and promote equality across member states. Initiatives aimed at combating discrimination based on gender, race, or sexual orientation reflect the EU’s commitment to fostering an inclusive society.

Additionally, one of the hallmark achievements of the EU is the freedom of movement for its citizens. This principle allows individuals to live and work anywhere within member states without facing barriers—an opportunity that has enriched cultural exchange and economic dynamism across Europe. The ability to relocate for work or study has not only enhanced personal freedoms but has also contributed to a more integrated European identity.

Where it Lacks?

Despite the European Union’s achievements, significant economic disparities persist among its member states. Certain countries continue to grapple with ongoing economic challenges, exacerbated by the lingering effects of the COVID-19 pandemic, the energy crisis stemming from geopolitical tensions, and inflationary pressures. For instance, while some nations experience modest growth, others, particularly in Southern and Eastern Europe, face stagnation and high debt levels. The European Central Bank (ECB) has projected a growth rate of just above 1% for the euro area in 2025, highlighting a sluggish recovery compared to other global economies. The lack of coordination in national economic policies complicates efforts to address these disparities effectively, creating a paradox where a single currency exists alongside varied national fiscal strategies.

The rise of Euroscepticism and nationalist movements represents another significant challenge for the EU. In recent years, there has been a notable shift in public sentiment across several member states, with increasing support for parties that advocate for reduced EU influence and greater national sovereignty. This fragmentation complicates the EU’s ability to achieve consensus on critical issues, from immigration policy to economic reforms. Political uncertainty in major economies like France and Germany further exacerbates this issue, as internal divisions hinder collective decision-making.

As the geopolitical landscape evolves with the rise of global powers like China and India, the EU’s role on the world stage is increasingly scrutinized. The Union faces pressure to assert its influence amid shifting alliances and trade dynamics. The potential for renewed trade conflicts, particularly with the United States under changing administrations, poses risks to European economies that are heavily reliant on global trade networks.

EU – A Success or a Failure?

The European Union (EU) has been a significant force in shaping modern Europe, but its success is a topic of ongoing debate. Established to promote peace, stability, and economic cooperation among member states, the EU has achieved notable milestones since its inception. It has created one of the world’s largest single markets, facilitated the free movement of over 500 million people, and played a crucial role in advancing human rights and environmental standards. However, the EU also faces considerable challenges, including economic disparities among member states, rising Euroscepticism, and the complexities of global positioning amid shifting geopolitical dynamics.

Assessing the EU’s success is essential not only to understand its past achievements but also to evaluate its current relevance and future potential. While it has made significant strides in fostering economic integration and political stability, the EU must navigate significant hurdles that could undermine its effectiveness. Ultimately, while the EU has achieved substantial successes in various areas, it grapples with challenges that question its overall effectiveness and sustainability as a cohesive entity. As it moves forward, the Union must find innovative ways to reconcile these competing demands while ensuring that it remains a relevant and powerful entity on the global stage.