Posted: September 22nd, 2016

Produce a profile of the EU as a trading bloc and discuss its importance to member states.

LO4: Be able to develop an action plan for a specific UK company (Wonga) wishing to trade within the EU.
Read the case study below and further research, complete the questions that follow.

A Slap Down of Italy and France Over Budget

“France and Italy pressed for an easing of budget restrictions to stimulate growth and cut unemployment in Europe, but won no concession from the German Chancellor Angela Merkel, who insisted that countries had to move faster on reforms.

The difference over budgetary policy overshadowed the Milan meeting of EU leaders on how to create jobs, as the multi-year budget plans of both France and Italy seemed likely to be rejected by the European Commission because of their fiscal backsliding.
While government leaders and EU officials agreed on the need to tackle record youth unemployment, which has exceeded 40 per cent in several Eurozone countries, they seemed no closer on the policy prescriptions.

Responding to a prior call by Hollande for Germany to exploit its trade surplus and balanced budget to adopt more expansionary policies, Angela Merkel said her country had already taken steps to boost domestic demand by 15bn Euros” (City AM 10 Oct.2014)

Tasks
1) Produce a profile of the EU as a trading bloc and discuss its importance to member states.
(This provides evidence for assessment criteria 4.1)

2) Evaluate the significance of:

a) Linguistics,
b) Cultural,
c) Logistical and
d) Environmental barriers to EU operations; and
e) Briefly, explain how these factors may influence as barriers to the national budgets of the member states.
(This provides evidence for assessment criteria 4.2)

3) Carry out an audit of possible EU funding streams that may be available and relevant directives to support companies in France or Italy during their financial situation in the case study.

(This provides evidence for assessment criteria 4.3)

4) Produce an action plan which lists the actions necessary for Wonga to begin an investment venture in EU.

(This provides evidence for assessment criteria 4.4)