Europe

The European Union is an economic association of 27 European democratic countries with a total population of 498 million and it was founded after the second world war trying to bring stability to the region.

HISTORY

Ancient Empires:

The history of Europe can be considered to have started from the ancient empires that include Ancient Greece, that went from 1100 b. C to 146 b. C. The greeks, nowadays, are thought to be the ones who invented philosophy, history and theater. Athens is known to be the first civilization that used the word Democracy and the first known writer, Homer, author of The Iliada and The Odissey, was greek. The world's main philosophers also were from the period of Greece, Socrates, Platon and Aristoteles.

The Roman Empire also belongs to these European ancient times. The city of Rome was founded in the year 753 b. C until the year 235 a. C where the empire started its fall to ultimately be divided into the Eastern Roman Empire, widely known as the Byzantine Empire, and the Western Roman Empire that was controlled by the Emperor Diocletian. The main legacy from the Roman Empire were the Latin languages adopted all over the regions they conquered, which later became the Romance or Romanic languages; and the Roman law.

The Middle Ages:

The middle ages started with the Byantine Empire centered on Constantinople, strategically located in a very important commercial route of the eastern mediterranean. Christianity was the dominant religion and, from there, spread allaround Europe and Asia. It was a very rich Empire, for which was the center of attraction for a lot of invaders. Many of them failed, but finally the Ottomans managed to control Constantinople.

Feudalism: was the political and economic structure prevailing in the Middle Age where the King was everything and the owner of every piece of land which, at the same time, was granted to noblemen in return for soldiers in wartimes. This system collapsed with the appearance of commerce and money, where more people were having access to economic resources, meaning more power within the kingdoms.

During this period, the Church played a very important role influencing the people's way of live and think followed by the period of crusades that took place from the 10th to the 14th century, seeking to recover the city of Jerusalem (Holy City), which was under the Turks' domain, and to gain more control over the commerce in minor Asia. Finally, 8 was the total number of crusades.

Modernity:

Renaissance is the name given to the period from the 15th until the 16th century when a cultural revitalisation took place and represented the moment where people had overcome very violent and dark years. The Reformation, on the other hand was aiming to change a lot of the customs of the Catholic church in western Europe and it was led by Martin Luther. Finally, during the 18th century, the Enlightenment period represented the time where reason was the primary source and legitimacy for authority.

Contemporary Period:

The industrial revolution meant an economic and social transformation that began in England in during the 19th century, and was soon spread all over western Europe and the United States, where new production methods were invented launching a series of changes.

The world wars in the 20th century were the result of the explosion of many European rivalries that ended up involving non-European countries. They were the most violent scenarios the world had ever seen. Finally, the Cold War which revealed an ideological bipolar world between capitalism and communism.

How did the EUROPEAN UNION start?

The creation of the European Coal and Steel Community (ECSC) was the first step to an economic and political union of the European countries after the most brutal war the world had ever seen. The founders were: Germany, Belgium, France, Italy, Luxembourg and the Netherlands. One of the main objectives for the creation of the ECSC was to have a strict control over war's most important materials and very abundant in Germany: the coal and the steel.

This process started to take place in the middle of the Cold war between the West and the East.

In 1957 the 6 founders sign the Treaty of Rome by which they constitute the European Economic Community (EEC) or the "common market". During the 60's Europe enjoys a period of economic growth, especially because of the benefits of their own free market. They also come up with a joint food production to guarantee the supply in every corner of the union.

The first enlargement of the Union takes place on the 1st of January, 1973 when Denmark, Ireland and the United Kingdom join the the first 6. The 1970 decade was very troubled starting with oil crisis, due to the Arab-Israeli war, and the end of the right wing dictatorships of Europe (Spain and Portugal) leading the way to a world economic, political and social downturn. In spite of this, the Union manages to create a regional policy money transfers for employment and infrastructure in the poorest areas. In 1979 the European Parliament is first elected through suffrage.

In 1981 Greece joins the union, as well as Spain and Portugal 5 years later. In 1986 the member countries sign the Single European Act, a 6 years program to eliminate obstacles for the free circulation of goods. And this is how single European market starts. In 1989 the Berlin wall is torn down and for the first time in 28 years both Germanies are reunited into a single country.

In 1993 the creation of the single market is culminated with the "4 freedoms": circulation of goods, services, people and capital. Also, in 1993 they sign the Treaty of Maastricht (or Treaty of the European Union). In 1995 there is another enlargement with Austria, Finland and Sweden. In 1999 they sign the Treaty of Amsterdam. During this decade, a series of agreements signed in Schengen allow citizens to travel around without showing their passports.

By the year 2002 the Euro is the new currency for a lot of European countries and in 2004 ten more countries join the Union: Czech Republic, Estonia, Latvia, Lithuania, Hungary, Poland, Slovenia, Slovakia, Cyprus and Malta and political borders between East and West Europe are basically overcome.

EUROPEAN MANAGEMENT STYLE

The diversity of the continent is reflected not only in every region's culture, but also in the management style. Therefore, a successful management style depends on the recognition of these differences because what works in a given region may not work in another.

Differences exist in legal systems, in corporate governance codes and in ownership orientation.

source: www.cartoonstock.com

References

- The History of the European Union. Available at:

http://europa.eu/abc/history/index_es.htm Accessed October 29th 2009

- Class presentation on Europe

- Class notes: Estudios de Área: Europa. Universidad EAFIT 2009-1