France and its EU union
What is the positive of belonging to the Europe?
One of the main benefits granted by the European Union is the creation of trade causing costs and prices to fall gradually so that all citizens of nations enjoy and have accessibility to products because each country can specialize to exploit their advantagescomparative. In case this not only benefits France but all the members of the European Union.
Another benefit is the reduction of direct costs, this is about the elimination of interior customs, which charge for passing products or merchandise by removing administrative and bureaucratic payments, delays and technical regulations. The euro has meant elimination of costs and risks of the exchange rate, and a guarantee of moderate inflation.
The benefits are more for the economic part because it is a market that is too wide constituted by around 450 million consumers allows companies to develop their scale economies, reducing average costs. Something more that causes is that the innovation and rationalization of production increases.
One of the things that the European Union most helps is the development of new global impact activities for example Aerospace, Airbus, Hydroelectric. Part of belonging is that more and more structural reforms are created to apply the best forms of government.
What is the negative of belonging to the Europe?
One of the main disadvantages for France is excessive regional concentration where there is only one unique internal market tends to attract capital and work to its geographical center. Companies are located near the center of their markets and their sources of supply.
This causes the development of the power of monopolies and oligopolies to do not allow the free movement of capital generated by gigantic companies with great power to raise prices.
This is why the European Commission applies an antitrust competence policy that prohibits monopolies, but there are still oligopolys in many sectors: energy, hydrocarbons, transport, banking, automotive.
A visible disadvantage is trade deviation since European exports and imports deviate from America to Europe. Although by eliminating customs, trade is created inside the union, on the other hand, when there is an external tariff, sometimes high, trade from abroad is distorted. The European Commission, for this reason, signs commercial association treaties with developing countries so that they can sell their products within the Union.
France has lost its sovereignty in foreign, monetary and exchange policy and must harmonize its fiscal policy. The Bank of France is linked much more to the European Central Bank, than to the State itself.
Through the previous views, the pros and cons of the European Union show us. As we have always seen, you can find opinions that favor and oppose this interest and affect different population groups. The EU is no exception, because we can pay attention. Although it has many benefits for the economy, there are also opinions that oppose the impact on the economies of some countries that make up the EU. For example, recent economic crises in Spain and Greece. Some of the EU policies do not have their preference for these economies, but since some the country is harmful to other countries and provides enormous benefits, especially for potential economies.
In general, there are always different points of view when talking about economics and we assume risks and interests. Although for such an important module, the advantages exceed disadvantages.
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