European Union

Last Updated: March 2007

Official Name:
European Union (EU)

Editor’s note: The information in this article was compiled from Fact Sheets and releases made available through the Bureau of European and Eurasian Affairs of the U.S. Department of State in 2006.

PROFILE

HISTORY

MAJOR INSTITUTIONS

ECONOMIC OVERVIEW: January 12, 2006

2006 U.S.-EU SUMMIT: June 21, 2006; Vienna, Austria

PROFILE

The European Union (EU) is one of the United States’strongest strategic partners, with the importance of the relationship reflected in our close cooperation on regional crises and conflicts, our extensive collaboration on a wide range of global challenges, from counter-terrorism to nonproliferation, and our deep trade and investment relations.

Geography

Area: 3,976,372 sq km; less than one-half the size of the United States. Cities: Capital, Brussels, Belgium (European Commission, EU Council); Strasbourg, France (most European Parliament plenary sessions); Luxembourg City, Luxembourg (European Court of Justice).

Terrain: Mainly flat along the Baltic and Atlantic coasts; mountainous in the central and southern areas.

Climate: Cold temperate; potentially subarctic to temperate in the north; mild, wet winters, and hot, dry summers in the south.

People

Nationality: EU (Every person holding the nationality of a Member State is a citizen of the Union. Citizenship of the Union complements and does not replace national citizenship. This provision currently applies to Austrian, Belgian, British, Cypriot, Czech, Danish, Dutch, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Luxembourg, Maltese, Polish, Portuguese, Slovak, Slovenian, Spanish, and Swedish citizens).

Population: 457,030,418 (July 2005 est.).

Religion: Roman Catholic, Protestant, Orthodox Christian, Muslim, Jewish.

Language: Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Gaelic (Irish—from 2007), Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Slovak, Slovene, Spanish, Swedish; note—only official languages of the European Union are listed.

Health: total: 10.1 births/1,000 population; 10 deaths/1000 population; male: 75.1 years; female: 81.6 years (July 2005 est.).

Unemployment: 8.6% (July 2005 est.).

Government

Type: Supranational/mixed inter-governmental.

Founded: November 1, 1993 (Treaty on European Union (Maastricht Treaty) establishing the EU entered into force). (Belgium, France, Germany, Italy, Luxembourg and the Netherlands signed the Treaty of Rome on March 25, 1957, see History.)

Member States: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, UK; note—Canary Islands (Spain), Azores and Madeira (Portugal), and French Guyana, Guadeloupe, Martinique and Reunion (France), which are legally part of EU Member States, are sometimes listed separately as territories forming part of the EU.

Branches: Executive, European Commission; legislative, EU Council, European Parliament; judicial, Court of Justice of the European Communities, Court of First Instance.

Major Political Parties (in European Parliament): Group of the Alliance of Liberals and Democrats for Europe (ALDE); Independence/Democracy Group (IND/DEM); Group of Greens/European Free Alliance (Greens/EFA); Socialist Group (Party of European Socialists -PES); Confederal Group of the European United Left-Nordic Green Left (EUL/NGL); European People’s Party-European Democrats (EPP-ED); Union for Europe of the Nations Group (UEN).

Suffrage: Determined by national legislation in the individual Member States.

Economy

GDP (2004): $11.65 trillion.

Annual Growth Rate (2004): 2.4%.

Per Capita Income (2004): $26,900.

Inflation Rate: 2.1% (2004 est.).

Natural Resources: Iron ore, arable land, natural gas, petroleum, coal, copper, lead, zinc, hydropower, uranium, potash, fish.

Agriculture: Products: wheat, barley, oilseeds, sugar beets, wine, grapes, dairy products, cattle, sheep, pigs, poultry, fish.

Industry: Type: ferrous and non-ferrous metal production and processing, metal products, petroleum, coal, cement, chemicals, pharmaceuticals, aerospace, rail transportation equipment, passenger and commercial vehicles, construction equipment, industrial equipment, shipbuilding, electrical power equipment, machine tools and automated manufacturing systems, electronics and telecommunications equipment, fishing, food and beverage processing, furniture, paper, textiles, tourism, media, financial services.

Trade (2003): Exports: machinery, motor vehicles, aircraft, plastics, pharmaceuticals and other chemicals, fuels, iron and steel, nonferrous metals, wood pulp and paper products, textiles, meat, dairy products, fish, alcoholic beverages. Major markets, U.S., China, Japan, Switzerland. Imports: machinery, vehicles, aircraft, plastics, crude oil, chemicals, textiles, metals, foodstuffs, clothing. Major suppliers: U.S., China, Japan and Switzerland.

HISTORY

Following World War II, traditional European rivals sought to solidify peace by bringing their nations together under a common institutional structure. Influenced by his compatriot Jean Monnet, French Foreign Minister Robert Schuman officially tabled a plan on May 9, 1950 to pool French and German coal and steel production under an organization that would be open to other European countries. German Chancellor Konrad Adenauer supported this proposal, and six founding countries, Belgium, France, Germany, Italy, Luxembourg and the Netherlands, took an early step toward European integration by establishing the European Coal and Steel Community (ECSC) the following year.

After failing to establish a European Defense Community in the 1950s, the six countries then decided to set up a common market. With the entry into force of the Treaty of Rome in 1957, they created the European Economic Community (EEC), with an objective of liberating the movement of goods, capital, workers and services. (The European Atomic Energy Community (EURATOM) was also established at this time.) The Treaty of Rome established the basic institutions and decision-making mechanisms still in place in today’s European Union. As of July 1, 1968, the EEC abolished customs duties between Member States on manufactured goods. New policies, including a common agricultural policy (CAP) and a common trade policy, were in place by the end of the 1960s.

The success of the European integration project during a period of steady economic growth in the 1960s set the stage for a first enlargement, the accession of the UK, Ireland and Denmark, in 1973. Further “deepening” of European integration followed: the Community acquired executive authority in social, regional, and environment policies. The benefits of economic convergence became more evident in the context of the 1970s energy crisis and financial turmoil, which led to the launch of the European Monetary System in 1979. In the same year, the first direct elections to the European Parliament (EP) took place. Previously, delegates from national parliaments had represented their country’s legislative bodies at the EP in Strasbourg, France.

The Community further expanded southward with the accession of Greece (1981, the second enlargement), followed by Spain and Portugal (1986, the third enlargement). These accessions led the EEC to adopt “structural programs” in order to reduce economic and social disparities among its regions.

During the 1960s and 1970s, the Community began to assert itself on the international scene with the conclusion of agreements with southern Mediterranean countries. Starting in 1963, the EEC signed four successive Lome Conventions, which guaranteed trading advantages and development aid for Member States’ former colonies in Africa, the Caribbean, and the Pacific (ACP).

World recession and internal disputes over Member States’ financial burdens gave way, from 1985 onward, to renewed efforts for economic integration, enshrined in the 1985 “Single European Act” (SEA) and marked by the 1992 “Single Market Project.” The SEA set January 1, 1993 as the date by which an internal single market was to be established and, by extending the practice of majority voting rather than unanimity in the EU Council, gave Community institutions the means of adopting the 300 Community-wide Directives required to abolish the remaining barriers and obstacles to intra-Community trade. In 1995, the Community entered into the “Barcelona” partnership with twelve southern Mediterranean countries. The partnership, reinforced by agreements on social, cultural, and human cooperation, was intended to lead to a free-trade area.

The collapse of the Berlin Wall and German unification prompted Member States to negotiate the 1992 Treaty on European Union (the “Maastricht Treaty”). In addition to establishing the European Union, the Maastricht Treaty set an ambitious program of further integration: establishment of Economic and Monetary Union (EMU) by 1999 (part of the “First or Community Pillar”), setting up of a Common Foreign and Security Policy (CFSP) (“Second Pillar”); and cooperation on Justice and Home Affairs (JHA) (“Third Pillar”). Shortly thereafter, in 1995, Austria, Finland and Sweden joined the EU, the fourth enlargement.

Signed in 1997 and entering into force on May 1, 1999, the Amsterdam Treaty partially streamlined the EU institutional structure. Its most significant effects were: (1) to transfer aspects of Justice and Home Affairs policy to the Community Pillar, enabling the Commission to propose decisions to be taken by the EU Council by qualified majority voting instead of by consensus, and (2) to establish a High Representative for the CFSP (who also serves as Secretary-General of the Council Secretariat). Ten countries in Central and Eastern Europe and Cyprus began accession procedures in 1997, followed by Malta. The prospect of eastward enlargement raised significant resource concerns and prompted the adoption in March 1999 of the “Agenda 2000” package, which covered amendments to the CAP and EU structural policies, as well as a budgetary framework through 2006.

In May 1998, EU heads of government officially designated eleven Member States eligible to adopt a single currency. Greece initially did not qualify, and Sweden, the UK and Denmark “opted out.” On January 1, 1999, the euro became the official currency of the EU, and the European Central Bank (ECB) put euro notes and coins into circulation on January 1, 2002. Today, twelve countries use the euro: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

Streamlining the size and procedures of EU institutions to make the expanded EU more efficient was also an aim of the 2003 Treaty of Nice. A year later, in May 2004, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia, and Slovenia joined the EU, bringing total membership to 25. Candidate countries currently include Bulgaria and Romania (scheduled to accede to the EU on January 1, 2007), as well as Turkey and Croatia.

In October 2004, Member States signed an EU Constitutional Treaty in Rome, intending that it take effect on November 1, 2006. French and Dutch voters rejected the treaty through referenda in 2005, thereby suspending the ratification process.

MAJOR INSTITUTIONS

The European Commission

The role and responsibilities of the European Commission place it at the center of the EU’s decision-making process. Acting as the EU’s policy and executive engine, the Commission is composed of 25 Commissioners, one from each Member State and is supported by a substantial staff located primarily in Brussels, Belgium. In matters relating to economic integration (“First or Community Pillar”), only the Commission has the right to propose legislation for approval by the EU Council and European Parliament. As “guardian of the Treaties,” the Commission ensures that EU laws are applied and upheld throughout the EU, prosecuting Member States and other institutions for failing to follow treaty precepts or otherwise apply Community law. The Commission has full authority to enforce Community competition policy, and its policing of implementation of Community legislation preserves the integrity of the EU single market. The Commission likewise manages and develops the Common Agriculture Policy (CAP), implements the budget, and represents the European Community in its areas of competence, notably including international trade negotiations.

The Commission President is appointed by agreement of the EU heads of government and is subject to approval by the European Parliament. Commissioners serve for a renewable five-year term. New Commissioners are identified by Member State governments in consultation with the President-designate of the Commission and are normally put in place at the beginning of the term of the Commission President. The entire Commission must be confirmed as a collective whole by the European Parliament before its formal appointment by common accord of EU governments.

The European Council

The European Council brings together EU heads of government and the President of the European Commission; foreign ministers of Member States also participate. Finance ministers are normally included when the leaders discuss questions related to EMU and the economy. The European Council meets at least twice a year, usually quarterly, at the end of each Presidency, to review major EU projects, set guidelines for policies and provide necessary guidance. The Presidency of the Council rotates every six months among EU Member States (January-June; July- December). Its role has become increasingly important with the expansion of EU responsibilities and competencies. The Presidency organizes and presides over the meetings of the European Council and EU Council (ministerial) meetings, drafts compromises, and seeks solutions to problems submitted to the European Council.

Council of Ministers

The Council of Ministers of the European Union (the “EU Council”) is the body in which representatives of the individual Member State governments, usually ministers, legislate for the EU, set its political objectives, coordinate national policies and resolve differences among their governments and with other EU bodies. Legally speaking, there is only one Council, but it meets in nine different formations, depending on the matters on its agenda. Foreign ministers usually meet at least once a month in the General Affairs and External Relations Council (GAERC), which deals with major foreign policy issues and plays a coordinating role. Ministers for the Economy and Finance (ECO-FIN) and ministers responsible for agriculture also hold monthly meetings. Ministers for Justice and Home Affairs (JHA) hold regular meetings to coordinate policies within their competence.

The Council holds formal sessions in its Brussels headquarters, except in April, June and October, when all sessions take place in Luxembourg. Most formations of the Council also meet informally (tasking no legally binding decisions) in the country holding the EU Presidency, usually once in the course of the Presidency’s six-month term. The most prominent of these informal meetings is the so-called “Gymnich” meeting of foreign ministers, named for a town in Germany where the first such meeting took place.

The Council takes most decisions under the Community Pillar by qualified majority voting (QMV) but endeavors to reach the broadest possible consensus before approving legislation. Unanimity is required for a number of specific areas related to economic integration (e.g. taxation), constitutional matters such as amendments to the treaties, the launching of a new common policy, the accession of a new Member State, and matters falling within the EU’s Common Foreign and Security Policy, European Security and Defense Policy, and aspects of law enforcement and judicial cooperation. The number of votes cast by each Member State when the EU Council votes by qualified majority voting was determined by the Nice Treaty and roughly correlates to the size of its population.

The European Parliament

Members of the European Parliament are directly elected by EU citizens for five-year terms; elections follow national election procedures. Members do not sit in national delegations; rather, they sit in groups according to political affiliation (including Socialists, Christian-Democrats/Conservatives, Liberals, Greens, etc.).

Parliament’s powers have gradually grown with the entry into force of the Single European Act (1986), the Maastricht Treaty (1993) and the Treaty of Amsterdam (1999). Parliament shares decision-making power on an equal footing with the Council in many areas under the Community Pillar to which the “co-decision procedure” applies. The European Parliament is one of the two branches with budgetary authority, the Council is the other. The signature of the EP president brings the overall EU budget into effect.

The European Parliament also plays a role in the process of selecting the President and other members of the Commission. The European Council’s nomination of the President is subject to approval by the Parliament. The EP holds U.S.-style public hearings of Commission nominees before taking a formal vote to approve the nomination of the Commission as a body. Parliament has the power to censure the Commission, but the Treaties do not allow for the dismissal of individual Commissioners by Parliament.

The European Court of Justice

The European Court of Justice (ECJ) ensures uniform interpretation and application of both the Treaties establishing the European Communities and the secondary legislation and other law adopted under their authority. To enable it to carry out that task, the Court has wide jurisdiction to hear various types of cases. For example, the Court has the authority to hear and issue binding judgments in lawsuits that seek to annul a law adopted by the EU, to compel an EU institution to act, or to require that a Member State comply with EU law. The ECJ may issue clarifications of EU law (in response to a request for a preliminary ruling from any Member State court) and hears appeals on legal questions arising out of cases at the Court of First Instance. The ECJ currently has 25 justices and eight advocates-general, who are appointed by common accord of the governments of the Member States and who hold office for six-year renewable terms.

ECONOMIC OVERVIEW: January 12, 2006

The 25-nation European Union (EU), with 460 million residents, is the world’s largest economic area. EU aggregate GDP was $12.86 trillion in 2004, and per capita GDP averaged $28,000, with wide divergences across member states. Buoyed by a robust global expansion, with growth over 5%, EU GDP expanded 2.5% in 2004. EU GDP growth slowed to around 1.6% for 2005, but is projected to strengthen to 2.1% in 2006. Corresponding growth for the 12-nation Euro Area was 2.0% in 2004, around 1.2% in 2005, and a projected 1.8% in 2006.

Drivers of growth include rising domestic demand--including private investment--and exports. EU inflation ticked up from 2.1% in 2004 to 2.3% in 2005 and a projected 2.2% in 2006, mostly due to energy price hikes. Manufacturing is strengthening slightly and unemployment is dipping from 9.0% in 2004 to 8.5% in 2005 and 2006.

EU economies are among the world’s most advanced and diverse. Key sectors include metals production and processing, petroleum, coal, cement, chemicals, pharmaceuticals, aerospace, rail equipment, vehicles, construction and industrial equipment, shipbuilding, electrical equipment, machine tools, manufacturing systems, electronics, communications, food/beverage processing, tourism, media, and financial services. Agricultural products include wheat, barley, oilseeds, sugar beets, wine, grapes, dairy products, cattle, sheep, pigs, and poultry.

The EU is the world’s leading trader; goods and services exports were about $4.97 trillion, and imports about $4.81 trillion, in 2005. Goods exports include machinery, vehicles, aircraft, plastics, pharmaceuticals, fuels, metals, pulp and paper, textiles, meat, and dairy products. Imported goods include machinery, vehicles, aircraft, plastics, crude oil, chemicals, textiles, metals, and food. Leading EU trading partners are the U.S., China, Japan, and Switzerland.

Though wealthy, Europe faces short-and long-term risks to its prosperity. Near term threats include possible new oil price shocks, a disorderly correction of global imbalances, a H5N1 influenza pandemic, or abrupt cooling of housing markets in the UK, Ireland, and Spain. Longer term, growth in Europe’s large economies is tepid at best, though countries such as Ireland and new Central European EU states are more vigorous. Unemployment remains high, labor market flexibility is low, and a rapidly aging population means fewer workers and higher social benefits. In response to these challenges, in 2000 the EU committed to a ten-year reform plan, the Lisbon Agenda, aimed at transforming the EU into a faster-growing, competitive, knowledge-based economy. Key reform targets include the labor and product markets.

Failure to make significant progress toward these goals has left Europe’s large economies with lagging competitiveness, stagnant productivity and anemic growth, and struggling to respond to the rise of China and India and to meet other challenges of globalization. If EU states do not reform, innovate and raise productivity, living standards will fall in the future. Successful reform is vital for the EU and global prosperity, since the EU is and will remain a key engine of world economic growth.

2006 U.S.-EU SUMMIT: June 21, 2006; Vienna, Austria

In June 2006, President Bush met with the leadership of the European Union, Austrian Chancellor and European Council President Wolfgang Schüssel and European Commission President José Barroso. The leaders spoke about concrete actions the U.S. and EU can take to:

• Promote the Advance of Freedom and Democracy Around the World;
• Advance Cooperation to Secure the U.S. Homeland and the World;
• Promote Transatlantic Economic Integration and Energy Security; and
• Promoting the Advance of Freedom and Democracy Around the World.

The U.S. and EU renewed the commitment to promoting peace, democracy, and freedom worldwide, and agreed on concrete actions in support of the shared goal of advancing freedom from Europe’s doorsteps to the Broader Middle East, Africa, Latin America and beyond. President Bush and his EU counterparts agreed to redouble their efforts to assist the Iraqi Government in enhancing security, economic reform and the political process.

In the pursuit of a lasting peace in the Middle East, the Quartet, of which the U.S. and EU are members, remains committed to President Bush’s vision of two states, Israel and Palestine, living side-by-side in peace and security. They are also working through the Quartet to ensure that humanitarian assistance reaches the neediest Palestinians.

In Africa, the U.S. and EU are key supporters of the African Union’s efforts to bring peace and stability to Darfur, Sudan, and have taken measures to address the political crises in Cote D’ Ivoire, Mauritania and Zimbabwe. They are also exploring avenues to bring peace to war-torn Somalia. Their efforts also support democracy, free markets and economic integration in partnership with African states and leaders. The U.S. and EU recognize the need for democratic change in Cuba, and urge the Cuban government to take rapid steps to improve the deteriorating human rights situation on the island. The U.S. and EU are united in support of continued UN involvement in Haiti, where the situation is still fragile. The U.S. and EU remain committed to advancing a vision of a Europe whole, free and at peace. They will work together to support the consolidation of democracy and free markets in Ukraine, Georgia and Moldova. The U.S. and EU will continue their joint actions to support the democratic aspirations of the people of Belarus, Europe’s last dictator-ship. Since the fraudulent Belarussians presidential elections in March 2006, the United States and EU have imposed coordinated travel restrictions and financial sanctions against the Lukashenka regime, targeting those implicated in undermining democratic processes, human rights abuses and public corruption. They will also maintain their support for Belarussians civil society and independent media.

Advancing Cooperation to Secure the U.S. Homeland and the World

Protecting citizens from the global threats of terrorism and the proliferation of weapons of mass destruction (WMD) remains one of the highest priorities for the United States and the European Union. The past year has seen significant progress in implementing the framework for joint efforts set out in the 2004 and 2005 U.S.-EU summits.

Fight Against Global Terrorism. In their efforts to combat terror, the U.S. and EU have worked together to promote effective global standards that will ensure the safety of their citizens by securing international borders and transportation, developing biometric standards, and preventing terrorist financing and radicalization and recruitment into terrorism. In the next year the U.S. and EU planned to work together to:

• Improve lost and stolen passport data sharing with Interpol;
• Coordinate implementation of biometric standards;
• Expand cooperation on terrorism finance issues;
• Strengthen law enforcement cooperation;

• Pursue ratifications of the U.S.-EU Extradition and Mutual Legal Assistance Agreements and bilateral protocols with EU Member States;
• Push for agreement on a Comprehensive Convention on International Terrorism at the UN; and,
• Coordinate efforts to counter radicalization and recruitment of terrorists.

Preventing WMD Proliferation. The United States and the EU will deepen cooperation on preventing the proliferation of WMD. They have agreed to work together to find a way to restrict the spread of enrichment and reprocessing (ENR) technology and to support multilateral mechanisms for reliable fuel supply assurances for states that have chosen not to pursue ENR. They have committed to:

• Establishing effective export control regimes, backed by criminal sanctions;
• Working to identify, control, and interdict WMD and missile related proliferation shipments and assisting others to do the same; and,
• Stopping the financing of proliferation activities by identifying, tracking, seizing, or freezing assets associated with proliferation trade.

Over the past year U.S.-EU cooperation on Iran has reached a new level. They have worked closely together at every stage of the ongoing attempts to address the question of Iran’s nuclear program. They have agreed on a set of far-reaching proposals as a basis for discussion with Iran and believe that they offer Iran the chance to reach a negotiated agreement based on cooperation, if Iran is willing to make that choice. The United States has made clear that it is prepared to join the negotiations should Iran resume full and verifiable suspension of all enrichment related and reprocessing activities as required by the IAEA. The U.S. and EU have agreed that if Iran decides not to engage in negotiations, further steps would be taken in the Security Council.

All EU members have endorsed the Proliferation Security Initiative Statement of Interdiction Principles. The U.S. and EU committed to seeking stronger enforcement of nuclear nonproliferation obligations, including making the IAEA Additional Protocol a new standard for nuclear supply, creating a new IAEA committee to focus on safeguards and verification, and declaring that states under investigation should not participate in IAEA compliance decisions.

Promoting Transatlantic Economic Integration

The strong economic relationship the United States and the European Union enjoy has created millions of jobs on both sides of the Atlantic. Leaders have agreed to continue the advancement of the 2005 Summit Economic Initiative to further promote economic integration and growth by cooperating in the areas of regulation, innovation and technology policy, competitive financial markets, energy, and enhanced trade, travel and security.

U.S. and EU leaders endorsed joint efforts to promote effective enforcement in third countries and cooperation with the private sector to reduce global piracy and counterfeiting. The U.S. and EU will pursue a strong, results-oriented Action Strategy for the Enforcement of Intellectual Property Rights (IPR) to strengthen border enforcement of IPR; encourage strengthened enforcement of IPR in third countries, including through technical assistance; and expand cooperation with, and contributions from, private industry.

Promoting Energy Security. The disruptions of Hurricanes Katrina and Rita last fall, the Ukraine-Russia gas crisis in January, and the strong pace of global economic growth in the past several years have raised the urgency of joint action on energy security and related issues.

President Bush and his EU counterparts today adopted a set of Principles to promote energy security worldwide. In addition, they agreed to work together to diversify energy sources and supplies; secure energy infrastructure; promote market-based energy security policies that ensure private competition, transparency, respect for contracts, and non-discriminatory trade, transit and access; speed development of new lower-pollution and lower-carbon technologies; and accelerate investment in more efficient, cleaner use of fossil sources and renewable sources in order to cut air pollution harmful to human health and natural resources.

This program will include numerous actions, such as supporting maintenance and improvement of pipeline infrastructure; providing technical assistance to improve energy regulatory frameworks in third countries; and cooperation on development of biofuels, clean diesels and plug-in hybrids, and others. These efforts will benefit not only the U.S. and EU but energy consumers, markets and producers worldwide. Raising global energy security will increase political and economic stability and help protect the global environment. The imperative of working together to improve energy security is matched by the need to act with resolve to address the serious and closely linked challenges of climate change and air pollution. To help ensure the global economy is powered in a sustainable manner, the U.S. and EU will work together to advance the development and deployment of existing and transformational technologies that are cleaner and more efficient, producing energy with significantly lower emissions. Since 2001, the U.S. has dedicated over $29 billion to climate change programs, more than any other nation. President Bush’s approach to this close cooperation with the EU on energy and climate issues draws upon the best scientific research, harnesses the power of markets, fosters the creativity of entrepreneurs, and works with the developing world to meet shared aspirations for our people, our economy, and our environment.