It created the common market, the single European currency (the euro) and encourages co-operation on social policy, the environment and justice and home affairs (for example in combating terrorism).

The Union’s work is based on subsidiarity, which means that decisions should be taken at the closest level possible to the people. So while decisions on the health service are best taken at national level or perhaps regional level (as in Wales), environmental policy is better decided at EU level because the effects of pollution do not respect national borders. This means that the EU does not interfere unnecessarily in people’s daily lives.

More information on the EU can be found at the EU's official website.

What does the European Union do for Wales?

The EU’s regional policy consists of making payments from its budget to disadvantaged regions to boost development. Between 2000 and 2006 it paid out 213 million euro. There are three objectives: Objective 1, which is used to help regions where the GDP is less than 75 per cent of the EU average, and includes parts of West Wales and the Valleys, while Objective 2 and 3 help less disadvantaged areas.

How does the European Union work?

The EU is made up of three institutions:

• the Council of the European Union, which represents the member states and is the main decision-making institution;
• the European Parliament, which represents the people;
• the European Commission, a politically independent body that upholds the collective European interest.

What is the European Parliament?

The European Parliament is one of the EU's three main decision-making bodies, and the only one that is directly elected by the people of the EU. It has 732 members, called MEPs (Members of the European Parliament) of whom 78 come from the UK and four from Wales. The Parliament examines proposals for new EU laws and can vote to change, approve or reject them. The Parliament also has the final say in approving the EU's annual budget and they also monitor how that money is spent. For more information on the Parliament visit the Parliament's official website or the office of the Parliament in the UK.

Who is my MEP?

Since 1999 the European elections have been decided under a proportional representation system, meaning that votes are reflected in the seats distributed. Wales is one constituency, so Jonathan Evans is your Conservative representative, no matter where you live in Wales.

When will the next European Elections be held?

June 2009. The responsibility for setting the date in Wales lies with the National Assembly for Wales.

How much do MEPs earn?

British MEPs have the same income as Members of Parliament, as the salaries of MEPs are set by the House of Commons, MEPs do not have any vote in their own remuneration.

The A-Z of the European Union (from BBC Online)

If you don’t know your EMU from your ERM, look at this handy guide to terms commonly used in discussion of the EU.