Which of the following statements are true about the European Union?

A. The EU has economic, political and diplomatic influence
B. It functions as an important bloc in international economic organisations such as the WTO
C. The European Union is the Tenth largest economy in the world
D. Denmark and Sweden have accepted the Euro the common European currency
E. The Treaty of Maastricht was signed in 1994 to establish European Union

Choose the correct answer from the options given below:

A and B only

The correct answer is Option (1) - A and B only

A. The EU has economic, political and diplomatic influence
B. It functions as an important bloc in international economic organisations such as the WTO

The statements C, D and E are wrong as;

EU is the world’s second biggest economy.

Denmark and Sweden have resisted the Maastricht Treaty and the adoption of the euro, the common European currency.

The Treaty of Maastricht was signed on 7 February 1992 establishing the European Union (EU).

More about the European Union:

The collapse of the Soviet bloc put Europe on a fast track and resulted in the establishment of the European Union in 1992. The Treaty of Maastricht was signed on 7 February 1992 establishing the European Union (EU). The foundation was thus laid for a common foreign and security policy, cooperation on justice and home affairs, and the creation of a single currency. The European Union has evolved over time from an economic 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 process has not proved easy, for people in many countries are not very enthusiastic in giving the EU powers that were exercised by the government of their country. There are also reservations about including some new countries within the EU. 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. It also functions as an important bloc in international economic organisations such as the World Trade Organisation (WTO).

As a supranational organisation, the EU is able to intervene in economic, political and social areas. But in many areas its member states have their own foreign relations and defence policies that are often at odds with each other. Thus, Britain’s Prime Minister Tony Blair was America’s partner in the Iraq invasion, and many of the EU’s newer members made up the US-led ‘coalition of the willing’ whereas Germany and France opposed American policy. There is also a deep-seated ‘Euroskepticism’ in some part of Europe about the EU’s integrationist agenda. Thus, for example, Britain’s former prime minister, Margaret Thatcher, kept the UK out of the European Market. Denmark and Sweden have resisted the Maastricht Treaty and the adoption of the euro, the common European currency. This limits the ability of the EU to act in matters of foreign relations and defence.