The European Union (EU) is a political and economic community of twenty-seven member states, located primarily in Europe. It was established in 1993 by the Treaty of Maastricht, adding new areas of policy to the existing European Community founded in 1957.
With almost 500 million citizens the EU is generating an estimated 30% share of the world's nominal gross domestic product (US$16.6 trillion) in 2007. The EU comprises a single market created by a system of laws which apply in all member states, guaranteeing the freedom of movement of people, goods, services and capital. Fifteen member states have adopted a common currency, the euro. Passport control between many members has been abolished under the Schengen Agreement. The EU maintains common trade and agricultural policies, and a regional development policy. It has developed a role in foreign and security policies, and in justice and home affairs. The EU represents its members in the World Trade Organization and attends at G8 summits and at the United Nations. Twenty-one EU countries are members of NATO.
EU functioning involves a hybrid of intergovernmentalism and supranationalism. In certain areas it depends upon agreement between the member states, an intergovernmental feature common to most international organisations. In economic areas it has established supranational bodies, able to make decisions without the agreement of members common to souvereign countries. Important institutions and bodies of the EU include the European Commission, the European Parliament, the Council of the European Union, the European Council, the European Court of Justice and the European Central Bank. EU citizens elect the Parliament every five years.