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The EU is the latest stage in a process of integration begun after World War II, initially by six Western European countries, to foster interdependence and make another war in Europe unthinkable. The EU currently consists of 28 member states, including most of the countries of Central and Eastern Europe, and has helped to promote peace, stability, and economic prosperity throughout the European continent.\nThe EU has been built through a series of binding treaties. Over the years, EU member states have sought to harmonize laws and adopt common policies on an increasing number of economic, social, and political issues. EU member states share a customs union; a single market in which capital, goods, services, and people move freely; a common trade policy; and a common agricultural policy. Nineteen EU member states use a common currency (the euro), and 22 member states participate in the Schengen area of free movement in which internal border controls have been eliminated. In addition, the EU has been developing a Common Foreign and Security Policy (CFSP), which includes a Common Security and Defense Policy (CSDP), and pursuing cooperation in the area of Justice and Home Affairs (JHA) to forge common internal security measures. Member states work together through several EU institutions to set policy and to promote their collective interests.\nIn recent years, however, the EU has faced a number of internal and external crises. Most notably, in a June 2016 public referendum, voters in the United Kingdom (UK) backed leaving the EU. The pending British exit from the EU (dubbed \u201cBrexit\u201d) comes amid multiple other challenges, including the rise of populist and to some extent anti-EU political parties, concerns about democratic backsliding in some member states (including Poland and Hungary), ongoing pressures related to migration, a heightened terrorism threat, and a resurgent Russia.\nThe United States has supported the European integration project since its inception in the 1950s as a means to prevent another catastrophic conflict on the European continent and foster democratic allies and strong trading partners. Today, the United States and the EU have a dynamic political partnership and share a huge trade and investment relationship. 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Concerns also linger in Brussels about the implications of the Trump Administration\u2019s \u201cAmerica First\u201d foreign policy and its positions on a range of international issues, including Russia, Iran, the Israeli-Palestinian conflict, climate change, and the role of multilateral institutions.\nThis report serves as a primer on the EU. Despite the UK\u2019s vote to leave the EU, the UK remains a full member of the bloc until it officially exits the EU (which is scheduled to occur by October 31, 2019, but may be further delayed). As such, this report largely addresses the EU and its institutions as they currently exist. It also briefly describes U.S.-EU political and economic relations that may be of interest in the 116th Congress. 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The EU is the latest stage in a process of integration begun after World War II, initially by six Western European countries, to foster interdependence and make another war in Europe unthinkable. The EU currently consists of 28 member states, including most of the countries of Central and Eastern Europe, and has helped to promote peace, stability, and economic prosperity throughout the European continent.\nThe EU has been built through a series of binding treaties. Over the years, EU member states have sought to harmonize laws and adopt common policies on an increasing number of economic, social, and political issues. EU member states share a customs union; a single market in which capital, goods, services, and people move freely; a common trade policy; and a common agricultural policy. Nineteen EU member states use a common currency (the euro), and 22 member states participate in the Schengen area of free movement in which internal border controls have been eliminated. In addition, the EU has been developing a Common Foreign and Security Policy (CFSP), which includes a Common Security and Defense Policy (CSDP), and pursuing cooperation in the area of Justice and Home Affairs (JHA) to forge common internal security measures. Member states work together through several EU institutions to set policy and to promote their collective interests.\nIn recent years, however, the EU has faced a number of internal and external crises. Most notably, in a June 2016 public referendum, voters in the United Kingdom (UK) backed leaving the EU. The looming British exit from the EU (dubbed \u201cBrexit\u201d) comes amid multiple other challenges, including the rise of populist and to some extent anti-EU political parties, concerns about democratic backsliding in some member states (including Poland and Hungary), an influx of refugees and migrants, a heightened terrorism threat, and a resurgent Russia.\nThe United States has supported the European integration project since its inception in the 1950s as a means to prevent another catastrophic conflict on the European continent and foster democratic allies and strong trading partners. Today, the United States and the EU have a dynamic political partnership and share a huge trade and investment relationship. Despite periodic tensions in U.S.-EU relations over the years, U.S. and EU policymakers alike have viewed the partnership as serving both sides\u2019 overall strategic and economic interests.\nEU leaders are anxious about the Trump Administration\u2019s commitment to the EU project, the transatlantic partnership, and free trade\u2014especially amid the Administration\u2019s imposition of tariffs on EU steel and aluminum products since June 2018. In mid-July 2018, President Trump reportedly called the EU a \u201cfoe\u201d on trade but subsequently reached an initial agreement with the EU later in the month aimed at de-escalating U.S.-EU tensions over trade and tariffs. 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The EU is the latest stage in a process of integration begun after World War II, initially by six Western European countries, to foster interdependence and make another war in Europe unthinkable. The EU currently consists of 28 member states, including most of the countries of Central and Eastern Europe, and has helped to promote peace, stability, and economic prosperity throughout the European continent.\nThe EU has been built through a series of binding treaties. Over the years, EU member states have sought to harmonize laws and adopt common policies on an increasing number of economic, social, and political issues. EU member states share a customs union; a single market in which capital, goods, services, and people move freely; a common trade policy; and a common agricultural policy. Nineteen EU member states use a common currency (the euro), and 22 member states participate in the Schengen area of free movement in which internal border controls have been eliminated. In addition, the EU has been developing a Common Foreign and Security Policy (CFSP), which includes a Common Security and Defense Policy (CSDP), and pursuing cooperation in the area of Justice and Home Affairs (JHA) to forge common internal security measures. Member states work together through several EU institutions to set policy and to promote their collective interests.\nIn recent years, however, the EU has faced a number of significant internal and external crises. Most notably, in a June 2016 public referendum, voters in the United Kingdom (UK) backed leaving the EU. This unprecedented decision by an EU member state could have substantial political, economic, and institutional implications for the EU. The looming British exit from the EU (dubbed \u201cBrexit\u201d) comes amid multiple other challenges, including the rise of populist and to some extent anti-EU political parties, ongoing migrant and refugee flows, a heightened terrorism threat, and a resurgent Russia.\nThe United States has supported the European integration project since its inception in the 1950s as a means to promote peace and prosperity in Europe, prevent another catastrophic conflict on the European continent, and help to foster democratic allies and strong trading partners. Today, the United States and the EU have a dynamic political partnership and share a huge trade and investment relationship. Some U.S. officials and Members of Congress have expressed concern that the many challenges currently confronting the EU\u2014including Brexit\u2014could have substantial repercussions for the EU\u2019s future and its ability to be a robust and effective U.S. partner in the years ahead. At the same time, some EU leaders are anxious about the Trump Administration\u2019s commitment to the EU project, the transatlantic partnership, and free trade. Uncertainty also lingers in Brussels about the implications of the Trump Administration\u2019s \u201cAmerica First\u201d foreign policy and its positions on a range of international issues, including Russia, Iran, the Israeli-Palestinian conflict, North Korea, global migration, and climate change.\nThis report serves as a primer on the EU. Despite the UK\u2019s vote to leave the EU, the UK remains a full member of the bloc until it completes withdrawal negotiations and officially exits the EU (expected to occur in March 2019). As such, this report largely addresses the EU and its institutions as they currently exist. It also briefly describes U.S.-EU political and economic relations that may be of interest in the 115th Congress. 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The EU is the latest stage in a process of integration begun after World War II, initially by six Western European countries, to foster interdependence and make another war in Europe unthinkable. The EU currently consists of 28 member states, including most of the countries of Central and Eastern Europe, and has helped to promote peace, stability, and economic prosperity throughout the European continent.\nThe EU has been built through a series of binding treaties. Over the years, EU member states have sought to harmonize laws and adopt common policies on an increasing number of economic, social, and political issues. EU member states share a customs union; a single market in which capital, goods, services, and people move freely; a common trade policy; and a common agricultural policy. Nineteen EU member states use a common currency (the euro), and 22 member states participate in the Schengen area of free movement in which internal border controls have been eliminated. In addition, the EU has been developing a Common Foreign and Security Policy (CFSP), which includes a Common Security and Defense Policy (CSDP), and pursuing cooperation in the area of Justice and Home Affairs (JHA) to forge common internal security measures. Member states work together through several EU institutions to set policy and to promote their collective interests.\nIn recent years, however, the EU has faced a number of significant internal and external crises. Most notably, in a June 2016 public referendum, voters in the United Kingdom (UK) backed leaving the EU. This unprecedented decision by an EU member state could have substantial political, economic, and institutional implications for the EU. The looming British exit from the EU (dubbed \u201cBrexit\u201d) comes amid multiple other challenges, including stagnant economic growth throughout much of Europe, the rise of populist and to some extent anti-EU political parties, increased migratory pressures, a heightened terrorism threat, and a resurgent Russia. \nThe United States has supported the European integration project since its inception in the 1950s as a means to promote peace and prosperity in Europe, prevent another catastrophic conflict on the European continent, and thus, in turn, help to foster democratic allies and strong trading partners. Today, the United States and the EU have a dynamic political partnership and share a huge trade and investment relationship. Although U.S.-EU tensions exist on certain issues (such as data protection and several long-standing trade disputes), some U.S. officials and Members of Congress are concerned that the many challenges currently confronting the EU\u2014including Brexit\u2014could have substantial repercussions for the EU\u2019s future and its ability to be a robust and effective U.S. partner in the years ahead. At the same time, some EU leaders are anxious about indications that the Trump Administration could diverge from traditionally held U.S. views on the importance of European integration, the transatlantic partnership, and free trade.\nThis report serves as a primer on the EU. Despite the UK\u2019s vote to leave the EU, the UK remains a full member of the bloc until it completes withdrawal negotiations, a process that has not yet begun and is expected to take at least two years. As such, this report largely addresses the EU and its institutions as they currently exist. It also briefly describes U.S.-EU political and economic relations that may be of interest in the 115th Congress. 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The EU is the latest stage in a process of integration begun after World War II, initially by six Western European countries, to foster interdependence and make another war in Europe unthinkable. The EU currently consists of 28 member states, including most of the countries of Central and Eastern Europe, and has helped to promote peace, stability, and economic prosperity throughout the European continent.\nThe EU has been built through a series of binding treaties. Over the years, EU member states have sought to harmonize laws and adopt common policies on an increasing number of economic, social, and political issues. EU member states share a customs union; a single market in which capital, goods, services, and people move freely; a common trade policy; and a common agricultural policy. Nineteen EU member states use a common currency (the euro), and 22 member states participate in the Schengen area of free movement in which internal border controls have been eliminated. In addition, the EU has been developing a Common Foreign and Security Policy (CFSP), which includes a Common Security and Defense Policy (CSDP), and pursuing cooperation in the area of Justice and Home Affairs (JHA) to forge common internal security measures. Member states work together through several EU institutions to set policy and to promote their collective interests.\nIn recent years, however, the EU has been confronted by a number of internal and external crises. Most notably, in a June 2016 public referendum, voters in the United Kingdom (UK) backed leaving the EU. This unprecedented decision by an EU member state could have substantial political, economic, and institutional implications for the EU. The looming British exit from the EU (dubbed \u201cBrexit\u201d) comes amid multiple other challenges, including stagnant economic growth throughout much of Europe, the rise of populist and to some extent anti-EU political parties, increased migratory pressures, a heightened terrorism threat, and a resurgent Russia. \nThe United States has strongly supported the European integration project since its inception in the 1950s as a means to foster democratic states and strong trading partners in Europe. Today, the United States and the EU have a dynamic political partnership and share a huge trade and investment relationship. Although U.S.-EU tensions exist on certain issues (such as data protection and several long-standing trade disputes), some U.S. officials and Members of Congress are concerned that the many challenges currently facing the EU\u2014including Brexit\u2014could have significant repercussions for the EU\u2019s future and its ability to be a robust and effective U.S. partner in the years ahead.\nThis report serves as a primer on the EU. Despite the UK\u2019s vote to leave the EU, the UK remains a full member of the bloc until it completes withdrawal negotiations, a process that has not yet begun and is expected to take at least two years. As such, this report largely addresses the EU and its institutions as they currently exist. It also briefly describes U.S.-EU political and economic relations that may be of interest in the 114th Congress. 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The Union is the latest stage in a process of integration begun after World War II, initially by six Western European countries, to foster interdependence and make another war in Europe unthinkable. Today, the EU is composed of 28 member states, including most of the countries of Central and Eastern Europe, and has helped to promote peace, stability, and economic prosperity throughout the European continent.\nThe EU has been built through a series of binding treaties, and over the years, EU member states have sought to harmonize laws and adopt common policies on an increasing number of economic, social, and political issues. EU member states share a customs union; a single market in which goods, people, and capital move freely; a common trade policy; and a common agricultural policy. Nineteen EU member states use a common currency (the euro), and 22 participate in the Schengen area of free movement in which internal border controls have been eliminated. In addition, the EU has been developing a Common Foreign and Security Policy (CFSP), which includes a Common Security and Defense Policy (CSDP), and pursuing cooperation in the area of Justice and Home Affairs (JHA) to forge common internal security measures.\nEU member states work together through several institutions to set policy and to promote their collective interests. Key EU institutions include the European Council, composed of EU Heads of State or Government, which acts as the strategic guide and driving force for EU policy; the European Commission, which upholds the common interest of the Union as a whole and functions as the EU\u2019s executive; the Council of the European Union (also known as the Council of Ministers), which represents the national governments; and the directly elected European Parliament, which represents the citizens of the EU.\nEU decisionmaking processes and the role played by the EU institutions vary depending on the subject under consideration. For most economic and social issues, EU member states have largely pooled their national sovereignty, and EU decisionmaking has a supranational quality. Decisions in other areas, such as foreign policy, require the unanimous consensus of all 28 member states. \nThe United States has strongly supported the European integration project since its inception as a means to foster democratic states and strong trading partners in Europe. The United States and the EU have a dynamic political partnership and share a huge trade and investment relationship. To expand and strengthen the transatlantic economy even further, the United States and the EU are pursuing a comprehensive free trade agreement, known as the Transatlantic Trade and Investment Partnership (T-TIP); both the United States and the EU hope to conclude negotiations in 2016.\nAt the same time, some U.S.-EU divisions exist on a range of issues. These include how best to manage relations with Russia, the Israeli-Palestinian conflict, climate change, and several long-standing trade disputes. Data privacy and data protection have also been key sticking points, with the differences in U.S. and EU approaches highlighted most recently by the October 2015 EU court judgment invalidating the U.S.-EU Safe Harbor Agreement that had permitted the transfer of personal data between European and U.S. companies since 2000. Many U.S. officials, including some Members of Congress, are also concerned that the multiple challenges currently facing the EU\u2014from the migration and refugee crisis to the upcoming UK referendum on EU membership to the rise of anti-EU populist political parties\u2014may have significant implications for the EU\u2019s future and its ability to be a robust and effective U.S. partner in the years ahead.\nThis report serves as a primer on the EU. 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