The European Union has evolved over time from an economic union to an increasingly political one. The EU has began to act more as a nation state. While the attempts to have a Constitution for the EU have failed, it has its own flag, anthem, foundation date (1 Nov. 1993), and currency (Euro). It also has some form of a common foreign and security policy in its dealings with other nations. The European Union has tried to expand areas of cooperation while acquiring new members, especially from the erstwhile Soviet Bloc. The process has not proved easy, for people in many countries are not very enthusiastic in giving the EU powers that were exercised by the government of their country. There are also reservations about including some new countries within the EU.

The EU has economic, political and diplomatic, and military influence. The EU is the world’s biggest economy with a GDP of more than $12 trillion in 2005. It was more than $16 trillion in 2016. Its currency can pose a threat to the dominance of the US dollar. Its share of world trade is three times larger than that of the US allowing it to be more assertive in trade disputes with the US and China. Its economic power gives it influence over its nearest neighbours as well as in Asia and Africa.