Because : 

(i) Economic Influence : 

• Three times larger share in World trade than the US. 

• Its currency Euro can pose a threat to the dominance of US Dollar. 

• The EU functions as an important bloc in World Trade Organisation (WTO). 

(ii) Political Influence : 

• Two members of the E U, Britain and France hold permanent seats in Security Council to influence UN policies. 

• The EU also includes various non-permanent members of UNSC. 

• The European Union plays an influential role in diplomacy and negotiations except military force i.e. EU’s dialogue with China on Human Rights and environmental degradation is remarkable. 

(iii) Military Influence : 

• The EU’s combined armed forces are second largest in world. 

• Its total military expenditure is second to the US. 

• Its two important members—Britain and France also experience nuclear arsenals of 550 nuclear warheads. 

• The EU is world’s second most important source of space and communication technology