Organizational Review of European Union Thesis

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A reduction in farm subsidies is stated to be necessary in order to improve access to market along with Common Agricultural Policy reforms, which should be "de-linked from production." Finally, stated as a requirement is that of a commitment for a 20% reduction in greenhouse gas emissions, which may be achieved "through market mechanisms..." (OECD, 2007) the OECD additionally states that structural reforms are required in addressing the challenges that the EU faces and while there is an improvement in terms of the economic prospects of the EU, "there is no room for complacency." (OECD, 2007) the OECD survey relates that the EU has the potential to play a critical role in the provision of solid conditional framework and the ongoing enhancement of the internal market in the EU.

The provision of the single market includes the wider range of goods access for consumers as well as a wider range of services. Moreover, the business sector of the EU has increased its competitiveness, which has resulted in the lowering of prices and has served to drive "innovation, entrepreneurship and growth." (OECD, 2007) Needed at this time according to the OECD is "a fresh impetus." (OECD, 2007) the energy markets require a tighter linking as well as opening up to competition, which would serve to lower prices and secure energy supplies.

The OECD relates that the adoption f the electricity direction in 2003 provided for customers to have choice in who supplies their energy. There has been identified in the energy markets what are termed to be "serious malfunctions" with "vertically integrated energy giants" having the capacity to "treat competitors unfairly and shut out potential entrants.

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" (OECD, 2007) Additionally, market concentration in the energy markets is high and prices are able to fall under the control of "dominant firms." (OECD, 2007)

Enabling market integration in the EU are the euro and Financial Services Action Plan and in fact, the United States has been "overtaken...[by]...Europe...in some segments of global markets. Capital flows are largely unimpeded and most wholesale markets are well-integrated." (OECD, 2007) Further agricultural reform is stated to be "desirable because of the economic benefits resulting for Europeans." Presently imports from the countries that are the poorest have been liberalized however, export opportunities continue to be reduced for other countries." (OECD, 2007)

Finally, it is related that cohesion policy in the EU which has as its aim the reduction of regional disparities and to encourage economic convergence has thus far bee "patchy: regional disparities are not falling...the budget is too small to make a real dent in income gaps..." (OECD, 2007) Therefore, the challenge that presents is the realization of the "maximum benefits from the available funds by making sure member states focus on activities that will spark sustainable growth such as education, research and important infrastructure projects." (OECD, 2007)

SUMMARY & CONCLUSION

It is certain that the EU has a number of things to address in terms of policy and directives issues in EU countries relating to market and trade issues however, it is certain that the EU has furthered positive market activity and growth and that the benefits far outweigh the limitations of the organizational capacity of the EU......

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