The EU — What It Is, What It Is Not

A Brief History in Stages

The EU did not emerge from a single grand plan but rather developed in several steps over seventy years. The most important stages:

• 1951 — European Coal and Steel Community (EGKS). Six states — France, West Germany, Italy, Belgium, the Netherlands, and Luxembourg — placed coal and steel production under a common authority. Economic interdependence as peace policy after two world wars.
• 1957 — Treaty of Rome, EWG. The European Economic Community expanded cooperation to include a common market, customs union, agricultural policy, and transport policy.
• 1985 — Schengen Agreement. Five states decided to dismantle their internal borders. Schengen was later incorporated into EU law but continues to operate with its own geometry (Norway, Iceland, Switzerland included; Ireland not).
• 1993 — Treaty of Maastricht. The communities became the European Union. Three pillars: the internal market, Common Foreign and Security Policy, and Justice and Home Affairs. Union citizenship was created.
• 1999/2002 — Euro. The common currency first came as an accounting unit, then as cash. Today, 20 out of 27 EU states are Euro members.
• 2004/2007/2013 — Eastern Enlargements. The EU grew in three steps from 15 to 28 member states — with Poland, Czech Republic, Hungary, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Malta, Cyprus (2004), Bulgaria and Romania (2007), Croatia (2013).
• 2009 — Treaty of Lisbon. Current contractual basis. Consolidates the pillar structure, strengthens the European Parliament, creates the office of the High Representative for Foreign and Security Policy.
• 2020 — Brexit. The United Kingdom left the EU as the first member state. Currently: 27 member states.

What the EU Is

At its core, the EU is a treaty framework: member states have mutually assured each other to create common rules in certain policy areas — and to transfer sovereignty rights to common institutions in certain areas.

The most important structures that have emerged from this are:

The Single Market — the world's largest unified economic area, with the four fundamental freedoms: free movement of goods, services, capital, and persons. "Freedom of movement" initially applies only to Union citizens. Third-country nationals only benefit from mobility rights within the EU after several years of residence.

The Schengen Area — the passport-free travel area. It only partially overlaps with the EU: Ireland is an EU member but not a Schengen member; Norway, Iceland, Switzerland, and Liechtenstein are Schengen members but not EU members. With a Schengen visa, you can travel through all 29 Schengen states.

The Economic and Monetary Union — common monetary policy through the European Central Bank, common currency Euro for 20 out of 27 member states. Taxes and national budgets remain national.

Union Citizenship — anyone who is a citizen of an EU state is automatically also a Union citizen. This comes with rights: to live, work, study, vote in municipal and European elections, and receive consular protection abroad in any other EU state.

Its Own Legal System — the EU issues regulations (directly applicable in all member states) and directives (to be transposed into national law). The European Court of Justice (EuGH) in Luxembourg oversees the interpretation. EU law takes precedence over national law in the areas where the EU is competent.

Common Foreign Trade Policy — the member states negotiate trade agreements with third countries jointly, represented by the Commission.

What the EU Is Not

At least as important as what the EU is, is what it is not — because many expectations with which migrants arrive are often dashed here.

• Not a federal state. The EU has no constitution, no president with executive power, no common tax system. Member states remain sovereign — they have only committed to cooperate in certain areas.
• No uniform tax system. Income tax, VAT rates, social security contributions — all national. If you change your place of residence, you start anew from a tax perspective.
• No uniform social security system. Pensions, unemployment benefits, health insurance are organized nationally. There are coordination rules (Regulation (EC) 883/2004) that prevent someone from losing all claims when they move within the EU — but no common system.
• No uniform education system. Schools, universities, curricula, school leaving certificates, university admissions — all under national jurisdiction. Recognition of foreign qualifications is handled by national authorities, not by Brussels.
• No uniform healthcare system. Hospital structures, care, patient rights — national.
• No uniform housing market or tenancy law. Rent controls, property rights, real estate agent fees, protection against dismissal — all different everywhere.
• No military alliance. Defense is primarily handled through NATO, which most EU states — but not all (Austria, Ireland, Malta, Cyprus; until 2023 also Sweden and Finland) — are members of. The EU is expanding a Common Security and Defense Policy, but it is not an alliance in the NATO sense.
• No fully unified foreign policy. The EU speaks with one voice on many issues — but sanctions decisions or the recognition of states require unanimity, making them politically fragile.
• No uniform residence permit for third-country nationals. If you come from a non-EU country, you apply for your residence permit nationally — see our article Entry to Europe for more details.

What This Means for Young Migrants

In everyday life, this means you will never experience the EU as a unified entity. You will always deal with the state where you currently reside — with its authorities, language, bureaucracy, recognition rules, tax system, housing market.

The EU is in the background, in harmonized minimum standards that make your life easier if you know them:

• Study and research are regulated across the EU under the same minimum standards by the REST Directive (EU) 2016/801.
• Highly qualified employment is handled through the EU Blue Card, available in every member state (with different salary thresholds).
• Regulated professions (doctor, architect, nurse, lawyer) are facilitated for recognition through the Professional Qualifications Directive 2005/36/EC — though primarily for Union citizens; for third-country nationals, it applies only to a limited extent.
• Anti-discrimination is regulated across the EU to minimum standards: prohibition of discrimination based on origin, religion, gender, age, and sexual orientation in working life (Directive 2000/43/EC, Directive 2000/78/EC).
• If you have lived legally in an EU state for five years, you can apply for the status of long-term resident (Directive 2003/109/EC). This status makes mobility between EU states easier.

And nationally, it remains:

• How you apply for and extend your residence permit
• What language test you need
• How much you pay in taxes and contributions
• Where you are insured for health
• Which school or university accepts you
• What social benefits you can claim
• What happens if you become unemployed

The Institutions — Very Briefly

Anyone reading EU legal texts constantly stumbles over four institutions. Here in one sentence what they do:

• European Commission (Brussels): the executive. Proposes laws, enforces them, represents the EU externally. Led by the Commission president (currently Ursula von der Leyen, as of 2026).
• Council of the European Union (often referred to as the "Council of Ministers"): represents the national governments. Decides on laws together with the Parliament.
• European Parliament (Strasbourg/Brussels): directly elected by Union citizens every five years. Decides on laws together with the Council.
• European Court of Justice (Luxembourg): oversees the uniform application of EU law. Decides what the treaties mean in case of dispute.

In addition, there is the European Council (the heads of state and government, setting political guidelines — not to be confused with the Council of the EU or the Council of Europe, which is a different organization outside the EU) and the European Central Bank (Frankfurt, responsible for the monetary policy of the Eurozone).

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Those who come with clear expectations — "the EU will take care of it" or "in Europe it's the same everywhere" — are often disappointed. Those who understand that the EU is a network of harmonized rules and national differences can use the system for themselves: deliberately search for countries whose national regulations fit their own life situation, and rely on the few, but stable, EU minimum standards.