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, social, 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. Today, the EU is composed of 28 member states, including most of the formerly communist countries of Central and Eastern Europe. This book provides a brief history of the EU and the major challenges currently confronting the EU as an institution. It also discusses the potential implications both for the EU itself and for U.S.-EU relations; examines the evolution of U.S.-EU counterterrorism cooperation; provides background on U.S. and EU data protection policies and the Safe Harbor Agreement; explores the implications for U.S. firms of Safe Harbor’s invalidation and the role of the proposed Judicial Redress Act in helping to ameliorate U.S.-EU tensions on data privacy and protection issues; and examines the Small Business Act for Europe’s various provisions and the major programs the European Commission has implemented to achieve the act’s objectives.