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The European Union (abbreviation: EU) is a confederation of 28 member countries in Europe, started in 1957 as the European Economic Community (EEC). It has created a common economic area with Europe-wide laws allowing people to move and trade in other EU countries almost the same as they do in their own.
DEFINITION of 'European Union-EU'. A group of European countries that participates in the world economy as one economic unit and operates under one official currency, the euro.The EU's goal is to create a barrier-free trade zone and to enhance economic wealth by creating more efficiency within its marketplace. group of European countries that participates in the world economy as one economic unit and operates under one official currency, the euro. The EU's goal is to create a barrier-free trade zone and to enhance economic wealth by creating more efficiency within its marketplace.