Given below are two statements:

Statement I: The European Union has evolved over time from an economic union to an increasingly political one. The EU started to act more as a nation state, it has its own flag, founding date and currency.

Statement II: The EU has economic, political and diplomatic and military influence. The EU is the world's second biggest economy with a GDP of more than $ 17 trillion in 2016.

In the light of the above statements, choose the most appropriate answer from the options given below:

Both Statement I and Statement II are correct

The correct answer is Option (1) → Both Statement I and Statement II are correct

Given statements:

Statement I: The European Union has evolved over time from an economic union to an increasingly political one. The EU started to act more as a nation state, it has its own flag, founding date and currency.

Statement II: The EU has economic, political and diplomatic and military influence. The EU is the world's second biggest economy with a GDP of more than $ 17 trillion in 2016.

EXPLANATION:

The European Union has evolved over time from aneconomic union to an increasingly political one. The EU has started to act more as a nation state. While the attempts to have a Constitution for the EU have failed, it has its own flag, anthem, founding date, and currency. It also has some form of a common foreign and security policy in its dealings with other nations. The European Union has tried to expand areas of cooperation while acquiring new members, especially from the erstwhile Soviet bloc.

The EU has economic, political and diplomatic, and military influence. The EU is the world’s second biggest economy with a GDP of more than $17 trillion in 2016, next to that of the United States of America. Its currency, the euro, can pose a threat to the dominance of the US dollar. Its share of world trade is much larger than that of the United States allowing it to be more assertive in trade disputes with the US and China. Its economic power gives it influence over its closest neighbours as well as in Asia and Africa.