It is the latest stage in a process of European integration begun after World War II, initially by six Western European countries, to promote peace and economic recovery. The EU currently consists of 28 member states, including most of the formerly communist countries of Central and Eastern Europe (see map in the Appendix ). Over the years, member states have sought to harmonize laws and adopt common policies on an increasing number of issues. Currently, however, the EU faces a range of political and economic pressures—including successful populist, antiestablishment political parties in many EU countries—and multiple internal and external challenges, which have raised questions about the EU's future shape and character. Perhaps the most prominent challenge for the EU is the United Kingdom's (UK's) expected exit from the EU (known as "Brexit"). Today, the United States and the EU share a dynamic political partnership and a huge trade and investment relationship. Many in the EU are concerned about the future trajectory of U.S.-EU relations under the Trump Administration and about whether the United States will continue to be a reliable partner in the years ahead. President Trump's reported questioning of the EU's value and utility is largely unprecedented and in contrast to long-standing U.S. support for the European integration project. Some analysts suggest that managing relations with the United States under the Trump Administration has emerged as another, somewhat unexpected, challenge for the EU. At the same time, the EU hopes to preserve close U.S.-EU ties, and EU policymakers continue to seek to cooperate with the Trump Administration where possible on issues of common interest and concern. As a result, some EU countries have "opted out" of certain aspects of integration, including the eurozone and the Schengen area. At the same time, opinion polls indicate that a majority of EU citizens remain supportive of the EU. Democracy and Rule-of-Law Concerns

Concerns have grown over the last few years about what many EU officials and observers view as democratic backsliding in some member states, particularly Poland and Hungary. Although most experts consider a complete dissolution of the EU unlikely, advocates worry that for the first time in the EU's history, some aspects of integration could be stopped or reversed. Others contend that the multiple crises currently facing the EU could produce some beneficial reforms and ultimately transform the bloc into a more effective and cohesive entity. Regardless of a formal decision to move toward a multispeed EU, the EU appears to be pursuing greater integration in certain areas, with varying degrees of success. Issues for the United States

		U.S. Policy Considerations

The United States has resolutely supported the European integration project since its inception in the 1950s as a way to help keep European nationalism in check, promote political reconciliation and economic interdependence, and encourage stability and security on the European continent. Successive Administrations and many Members of Congress have long viewed the EU (and its predecessors) as fostering democratic allies and strong trading partners in Europe. Some U.S. policymakers, analysts, and Members of Congress have expressed concern that the various challenges currently facing the EU could have negative implications for the EU's ability to be a robust, effective U.S. partner. Many EU officials are uneasy with elements of the Trump Administration's "America First" foreign policy and with U.S. positions on a range of international challenges—including relations with Russia and China, the nuclear deal with Iran, the Middle East peace process, migration, and climate change.
The European Union (EU) is a unique partnership in which member states have pooled sovereignty in certain policy areas and harmonized laws on a wide range of economic and political issues. The EU is the latest stage in a process of European integration begun after World War II, initially by six Western European countries, to promote peace, security, and economic development. The EU currently consists of 28 member states, including most of the formerly communist countries of Central and Eastern Europe.
The EU is largely viewed as a cornerstone of European stability and prosperity. For much of the last decade, however, many EU countries have faced considerable economic difficulties. Despite an improved economic situation in the EU since 2017, economic pressures and societal changes have contributed to the rise of populist and antiestablishment political parties, at least some of which harbor anti-EU or "euroskeptic" sentiments. Such trends have complicated the EU's ability to deal with multiple internal and external challenges. Among the most prominent challenges are
the pending departure of the United Kingdom (UK) from the EU ("Brexit"); democracy and rule-of-law concerns in Poland, Hungary, and other EU members; migration and related societal integration concerns; a resurgent Russia; and a heightened terrorism threat.
Amid these difficult issues, some are questioning the future shape and character of the EU. Supporters of the EU worry that certain aspects of EU integration could be stopped or reversed. Others contend that the multiple crises could produce some beneficial reforms and ultimately transform the EU into a more effective, cohesive entity. Recently, considerable attention has focused on developing a "multispeed EU," in which some EU members could pursue greater integration in specified areas while others could opt out.
Successive U.S. Administrations and many Members of Congress have supported the European integration project since its inception, viewing it as crucial to European peace and security and as a way to foster strong U.S. allies and trading partners. Despite some tensions over the years, the United States and the EU share a dynamic political partnership on various foreign policy issues and an extensive trade and investment relationship. How the EU evolves in the years ahead may have strategic and economic repercussions for the United States.
At the same time, some EU leaders are concerned about President Trump's apparent skepticism of the EU and his reported assessment of the bloc as an economic competitor. Those of this view also worry that elements of the Trump Administration's "America First" foreign policy—such as the U.S. decision to withdraw from the 2015 multilateral nuclear deal with Iran—pit the United States against the EU. A number of European officials and analysts question whether traditional U.S. support for close U.S.-EU relations may be shifting and whether the United States will remain a reliable international partner. Some observers suggest that managing relations with the United States under the Trump Administration has emerged as another, somewhat unexpected, challenge for the EU. At the same time, many in the EU hope to preserve close U.S.-EU ties and EU policymakers continue to seek to cooperate with the Trump Administration where possible on issues of common interest and concern.
This report provides a brief history of the EU and the major challenges confronting the bloc. It also discusses the potential implications for the EU and for U.S.-EU relations. Also see CRS Report RS21372, The European Union: Questions and Answers, by Kristin Archick.