Author Archive: Michael Garstecki

The economic role of the European Union today

Free Trade Agreements with the USA, sanctions against Russia ?

In March 2014, after years of conflicts between Russia and Ukraine, the Russian government started a covert invasion of the Crimean Peninsula, which lead to economic sanctions from the EU. This was quite a critical measure, since 30% of the EU’s gas is imported from Russia (by companies like GAZPROM), half of which go through Ukrainian pipelines. Also, there was a world-wide price increase of grain feared, since Russia produces lots of its famous Winter Wheat.

On the other hand, also in March ’14, the European Commission proposed a free trade agreement between the USA and the EU, called the “Transatlantic Trade and Investment Partnership” ( abbrev.: TTIP ). This contract is expected to be finished – and signed – somewhat around the end of this year. It’s purpose is to reduce tolls and to increase the amount of money which flows between said two economic trading zones in the form of cash bonds, services and material goods.

Both of the above mentioned measures can influence the economy of the whole world very much, showing that the decisions the EU takes are quite important.