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The present global crisis is far away from being solved and EU is trying hard to manage a more realistic economic recovery plan. This textbook combines the comprehensive coverage of the key policy areas of the European Union with the analysis of the global crisis impact. The main problem is that the economic recovery process is very slow and EU is not yet able to find optimal solutions for its Member States. The economic environment is changing very fast and it is very difficult to find pertinent trends for the next few years. The main objective of this research is to overview the EU economy and to forecast its evolution. In order to reduce the gap between theory and reality, the authors combined a lucid overview of theories with illustrative data. This textbook intends to offer a sound understanding of economics and policies of the EU and it is address to students, researchers and professional policy makers alike, which are interested in the enormous changes taking place in the European economy.