Benefits of EU Membership
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?
The benefits of EU membership are not measured by net operating balances
Key Findings
National operating budgetary balances (OBBs) do not take into account all of the economic and nonmonetary benefits that Member States gain from EU membership. In many policy areas with crossborder characteristics and demand for critical mass, common action at the EU level may lead to better results than fragmented national initiatives.
Several studies show that the Single Market has increased employment and growth. The effect of the Single Market deepening since 1990 has been quantified by 3.6 million new jobs. Additionally, EU GDP would be 8.7% lower if there had been no Single Market integration. The average EU citizen gains €840 more per year thanks to the Single Market. While all EU citizens benefit from income gains thanks to the Single Market, these effects are higher for Western Europeans in absolute terms. Relative to GDP, gains and losses are more similar.
Beyond direct gains in GDP, income and employment, the EU produces a range of less quantifiable yet arguably more important benefits. The Single Market – and indeed the EU – is not just concerned with business. It also puts in place regulations protecting workers, consumers and the environment. For example, the presence of air pollutants has fallen dramatically since 1990, partly thanks to EU regulation limiting their emissions.
Member States have access to information-sharing systems that help deal with cross-border issues, including food alerts, health hazards and criminal prosecution. Thanks to the market power of the EU, Member States are able to negotiate trade agreements
that lead to employment creation and growth, as well as promote the EU values of human rights and environmental protection. The EU framework has historically helped to promote political stability, international ties, and democratic and liberal values.
Source: European Parliament,
https://www.europarl.europa.eu/RegData/etudes/BRIE/2020/648145/IPOL_BRI(2020)648145_EN.pdf