<P> The competencies of the European Union stem from the original Coal and Steel Community , which had as its goal an integrated market . The original competencies were regulatory in nature , restricted to matters of maintaining a healthy business environment . Rulings were confined to laws covering trade , currency , and competition . Increases in the number of EU competencies result from a process known as functional spillover . Functional spillover resulted in , first , the integration of banking and insurance industries to manage finance and investment . The size of the bureaucracies increased , requiring modifications to the treaty system as the scope of competencies integrated more and more functions . While member states hold their sovereignty inviolate , they remain within a system to which they have delegated the tasks of managing the marketplace . These tasks have expanded to include the competencies of free movement of persons , employment , transportation , and environmental regulation . </P>
<P> The competencies of the European Union stem from the original Coal and Steel Community , which had as its goal an integrated market . The original competencies were regulatory in nature , restricted to matters of maintaining a healthy business environment . Rulings were confined to laws covering trade , currency , and competition . Increases in the number of EU competencies result from a process known as functional spillover . Functional spillover resulted in , first , the integration of banking and insurance industries to manage finance and investment . The size of the bureaucracies increased , requiring modifications to the treaty system as the scope of competencies integrated more and more functions . While member states hold their sovereignty inviolate , they remain within a system to which they have delegated the tasks of managing the marketplace . These tasks have expanded to include the competencies of free movement of persons , employment , transportation , and environmental regulation . </P>
the european union is an example of a regional organization primarily focused on
the european union is an example of a regional organization primarily focused on
an integrated market
an integrated market