The overall size of the EU economy in 1995, including the three new member states that joined the Union on January 1, 1995 was $7.1 trillion. Private consumption accounts for 63% of the EU's Gross Domestic Product, while gross fixed capital formation contributes 20.3 percent and government consumption adds an additional 17 percent (Hoover, 1995).
In terms of the distribution of economic activity, Germany has by far the largest economy, accounting for 29% of the EU's GDP, followed by France (18%), Italy (13%), and the United Kingdom (13 percent). Per capita income for the EU as a whole is about $21,748, ranging from over 180 percent of the average in Luxembourg to less than 70 percent in Spain, Greece and Portugal (Hoover, 1995).
Stagnation, Growth and the Economic Union
As stated in the introduction, in the first half of the 1980s, prior to the single-market program, the economies of the soon to be Economic Union countries experienced a surge in investment. Stagnation had reduced European competitiveness in the 1970s and the increasing inability of the European Community to function effectively and resolve problems led member governments to conclude that increased cooperation would be necessary to increase economic efficiency and competitiveness (Calingaert, 1988).
The European Community Commission published a white paper on "Completing the Internal Market" in June of 1985. This paper was a detailed plan for the removal of mo