Flag description:

blue field with 12 five-pointed gold stars arranged in a circle in
the center, representing the union of the peoples of Europe; the
number of stars is fixed

Economy
European Union

Economy - overview:

Internally, the EU is attempting to lower trade barriers, adopt a
common currency, and move toward convergence of living standards.
Internationally, the EU aims to bolster Europe's trade position and
its political and economic power. Because of the great differences
in per capita income among member states (from $7,000 to $69,000)
and historic national animosities, the EU faces difficulties in
devising and enforcing common policies. For example, since 2003
Germany and France have flouted the member states' treaty obligation
to prevent their national budgets from running more than a 3%
deficit. In 2004 and 2007, the EU admitted 10 and two countries,
respectively, that are, in general, less advanced technologically
and economically than the other 15. Eleven established EU member
states introduced the euro as their common currency on 1 January
1999 (Greece did so two years later), but the UK, Sweden, and
Denmark chose not to participate. Of the 12 most recent member
states, only Slovenia (1 January 2007) and Cyprus and Malta (1
January 2008) have adopted the euro; the remaining nine are legally
required to adopt the currency upon meeting EU's fiscal and monetary
convergence criteria.

GDP (purchasing power parity):

$14.43 trillion (2007 est.)

GDP (official exchange rate):

$16.62 trillion (2007 est.)

GDP - real growth rate:

3% (2007 est.)

GDP - per capita (PPP):

$32,700 (2007 est.)

GDP - composition by sector:

agriculture: 2.1%
industry: 27.1%
services: 70.7% (2006 est.)

Labor force:

222.7 million (2006 est.)

Labor force - by occupation:

agriculture: 4.4%
industry: 27.1%
services: 67.1%
note: the remainder is in miscellaneous public and private sector
industries and services (2002 est.)

Unemployment rate:

8.5% (2006 est.)

Population below poverty line:

note - see individual country entries of member states

Household income or consumption by percentage share:

lowest 10%: 2.8%
highest 10%: 25.2% (2001 est.)

Distribution of family income - Gini index:

30.7 (2003 est.)

Investment (gross fixed):

21.5% of GDP (2006 est.)

Fiscal year:

NA

Inflation rate (consumer prices):

1.8% (2006 est.)