Joining the EU is said to provide member states with a list of advantages. These will include membership at the different European financial institutions. Generally, there are several European Financial Institutions. The European Central Bank (ECB) maintains the Euro's purchasing power and price stability. The European Investment Bank (EIB) raises funds for capital projects to the EU's objectives. The European Investment Fund (EIF) handles venture capital and serves as the guarantee agency of the EU. Reading this reference will help you understand some of the benefits of joining the EU. How would member states be affected if they decided to leave the union?
Non-monetary benefits of EU membership
Environmental protection
The protection of the environment is a policy area where benefits of EU common action are evident, given
its cross-border nature. Water and air pollution do not stop at borders, thus harmonised standards and
common rules are beneficial for all actors and avoid freeriding. EU directives on air pollution date decades
back: Council Directive 88/609/EEC set limits on the emissions of sulphur dioxide and oxides of nitrogen. As
shown in Figure 2, the emissions of these and other major pollutants have fallen dramatically since 1990.
Member States that do not respect pollution limits can face infringement procedures and be legally
pursued by the ECJ, which may result in financial sanctions. Recently, the Court has ruled that "France has
systematically and persistently exceeded the annual limit value for nitrogen dioxide since 1 January 2010". While technological advance helps the shift towards cleaner practices, the incentive provided by legal limits
on emissions is of significant importance. As shown by the existence of infringement procedures, it is
uncertain whether Member States would have drastically reduced emissions of pollutants if it were not for
EU legal limits. Similarly, EU regulation provides a strong incentive, as well as financial assistance, to
countries wishing to join the EU to ameliorate their air quality and strengthen their environmental
institutions.
Figure 2. Improving air quality in the EU