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Evaluate the role of the EU institutions in the decision making process of the European Union - Leaving Cert Business - Question 3 - 2019
Question 3
Evaluate the role of the EU institutions in the decision making process of the European Union. In January 2019 the Euro celebrated its 20th anniversary. Explain th... show full transcript
Worked Solution & Example Answer:Evaluate the role of the EU institutions in the decision making process of the European Union - Leaving Cert Business - Question 3 - 2019
Step 1
Evaluate the role of the EU institutions in the decision making process of the European Union.
Answer
The European Commission is the executive body of the EU. It plays a crucial role in proposing legislation, which is then discussed and passed by both the Council of the European Union and the European Parliament. This entails a collaborative approach where the Commission proposes regulations and directives that need to be implemented effectively.
The European Parliament serves to scrutinize and amend proposals put forward by the Commission. It also has equal footing with the Council in making decisions, particularly in cases concerning the budget and policies of the EU.
The Council of the European Union, on the other hand, functions as the main decision-making body, where representatives from member states come together to negotiate and adopt laws. The interaction among these institutions ensures a balanced and democratic process in EU governance, fostering cooperation and unity among member states.
Step 2
Explain the reasons why an Irish business may choose to trade with other businesses in the Eurozone.
Answer
With the adoption of the Euro, businesses within the Eurozone benefit from reduced transaction costs associated with currency exchange. This stability in currency facilitates smoother trade operations between Irish businesses and their counterparts elsewhere in the Eurozone.
The Euro promotes price transparency, making it easier for businesses to compare prices and conduct market research across different countries. This can lead to more informed decision-making and potential cost savings.
Moreover, trading within the Eurozone allows Irish businesses to access a larger market, potentially enhancing their competitiveness and operational efficiency. Lastly, the elimination of currency exchange rate fluctuations reduces uncertainty, enabling businesses to make better long-term planning decisions.