The European Union, the world's largest economic bloc, has just taken a big step toward a single political community. Leaders of the 27 member countries agreed on a reform treaty that will take effect from 2009. The adoption of the new treaty is significant as it will replace the hitherto EU Constitution which has largely failed to earn the support of many member nations.
Once the new accord is endorsed by each nation, the EU will elect its own President with a two and a half years tenure extendable by one term. It will also have its own foreign minister with a five-year tenure. The union will emerge stronger and wield more influence in the international community politically and diplomatically. The EU is the largest single market in the world, surpassing the United States, with its gross domestic product reaching $14.3 trillion.
Despite its economic clout, the EU has been regarded as a ``dwarf'' politically and a ``bug'' militarily, largely outmaneuvered by the United States, Russia and China. But with the recent agreement, the EU nations are expected to try to raise their voice on various global issues such as climate change, energy, trade and investment. Now it is high time for the nation to keep a close watch on the move by the EU countries to properly brace for the changes in the new global climate.
The possible political integration will likely heighten the economic vitality of the nations. East European nations are set to join the union and add momentum to the old and sluggish West Europe with their vast markets and affluent human resources. The EU has recently proved its role as a buffer zone of the global economy by absorbing a considerable part of the shock resulting from the nosedive of U.S. dollars.
Despite the rosy prospects for the political union, the EU has yet to rise above various obstacles. Though many nations plan to deal with the issue through parliamentary endorsement, the United Kingdom is divided with the Conservative Party having called for a national referendum. Some nations, like Poland and Demark, are likely to face difficulties in passing the bill though their parliaments due to differing stances among political parties. But optimism prevails thus far as the EU leaders share the need to wrap up the issue as early as possible.
South Korea needs to seek ways of expanding trade with EU as a means to cope with the possible uncertainties that can result from shifts in major markets _ namely China and the United States. Companies need to explore more business chances in the newly emerging East European nations. It is possible that the future EU, as the richest club in the world, will take protectionist measures in areas of immigration, trade and investment. That is the reason why the Korean officials engaged in talks for a free trade agreement with the EU should take extreme care in their negotiations.