European Union: Constraints vs. Opportunities

Abstract

During the early 1980s, Europe suffered from slow economic growth. As a result of this stagnant growth pattern, the European Union created new economic policies and reforms, which eliminated tariffs and barriers among European member states, and set new rules for competition law. The European Union eliminated most regional trade barriers but was not able to achieve the same success with inter-regional barriers. While many supporters of European Union applauded the reform, several American companies claimed that Europe's new economic regulations pose disadvantages for American companies in form of a fortress. Constraints are the outcomes of different institutional regulations and protectionism. This study will present the arguments from both sides of the Atlantic and conclude that the opportunities created by the European Union outweigh the constraints for some non- European companies.