IMAT Reading Skills and General Knowledge · Politics, Economics and Society
The European Union, the Euro and International Organisations
Who does what in the EU, which countries use the euro, and the seats, roles and acronyms of the UN agencies, NATO, the financial institutions and the human rights bodies.
Why this matters
This is the most asked theme in the chapter's Cambridge papers: UN Security Council members, the UN's stated purposes, WHO's headquarters, the letters in OPEC and FAO, NATO's founders, UNESCO, the WTO, the euro and which EU body is directly elected.
Concept 1 of 5: The institutions of the European Union
The EU has its own law-making system. The Commission proposes laws, and two bodies must agree to pass them: the Parliament, which represents citizens, and the Council of the EU, which represents national governments. The European Council of leaders sets the general direction but does not make laws.
Definition
- The European Parliament is the only EU institution directly elected by citizens (every 5 years, since 1979).
- The European Commission is the EU's executive: it proposes laws and enforces the treaties. One commissioner per member state.
- The Council of the European Union (ministers, by policy area) and the European Council (heads of state or government) are different bodies. The Council of Europe is not an EU body at all.
- The ordinary legislative procedure: Commission proposes, Parliament and Council adopt.
| Institution | Who sits in it | How chosen | Seat |
|---|---|---|---|
| European Parliament | Members of the European Parliament (720 elected in 2024) | Direct election by citizens every 5 years | Strasbourg (plenary sessions); also Brussels and Luxembourg |
| European Council | Heads of state or government, its President and the Commission President | Members by office; its President chosen for 2.5 years | Brussels |
| Council of the European Union | One minister per member state | Members by office; the presidency rotates every 6 months | Brussels |
| European Commission | One commissioner per member state | President proposed by the European Council and elected by Parliament; 5-year term | Brussels |
| Court of Justice of the EU | One judge per member state | Appointed by the governments for 6 years | Luxembourg |
| European Central Bank | Executive Board and euro-area central bank governors | Appointed | Frankfurt |
Practice this conceptself-check · 3 quick reps
Three councils, only two of them in the EU
The European Council (leaders) and the Council of the European Union (ministers) are both EU institutions. The Council of Europe, in Strasbourg, is a separate organisation of 46 states that runs the European Court of Human Rights.
Concept 2 of 5: The euro and EU membership
The euro is the currency of most, but not all, EU members. A country must meet economic tests to join, and two members have chosen to stay out. Knowing the original twelve and the later joiners answers most euro questions.
Definition
- The euro was launched for banks and markets on 1 January 1999; notes and coins arrived on 1 January 2002 in 12 countries.
- Monetary policy for the euro area is set by the European Central Bank in Frankfurt.
- Maastricht convergence criteria: government deficit at most 3% of GDP, public debt at most 60% of GDP, low inflation, low long-term interest rates and a stable exchange rate.
- Denmark has a legal opt-out from the euro; Sweden stays out by not joining the exchange-rate mechanism.
| Group | Countries | Remember |
|---|---|---|
| Euro notes and coins from 1 January 2002 | Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain | Twelve countries; Greece had joined in 2001 |
| Later members | Slovenia 2007, Cyprus and Malta 2008, Slovakia 2009, Estonia 2011, Latvia 2014, Lithuania 2015, Croatia 2023, Bulgaria 2026 | 21 euro countries in 2026 |
| EU members outside the euro (2026) | Czechia, Denmark, Hungary, Poland, Romania, Sweden | Each keeps its own currency |
| Non-EU users of the euro | Andorra, Monaco, San Marino and Vatican City by agreement; Montenegro and Kosovo on their own | Not members of the euro area's decisions |
| EU membership | 27 states since the United Kingdom left on 31 January 2020 | Norway, Switzerland and Iceland are not EU members |
Practice this conceptself-check · 3 quick reps
EU member does not mean euro user
Sweden, Denmark, Poland, Hungary, Czechia and Romania are EU members with their own currencies (the krona, krone, złoty, forint, koruna and leu). Meanwhile some non-EU microstates use the euro. Check both lists.
Concept 3 of 5: The United Nations and its agencies
The UN was founded in 1945 to prevent another world war. Its Security Council can take binding decisions on peace and war, but any of its five permanent members can block them with a veto. Around it sit specialised agencies, each with its own job and headquarters city.
Definition
- The UN Charter was signed in San Francisco in June 1945; the UN came into being on 24 October 1945. Headquarters: New York. 193 member states.
- Its purposes (Charter, article 1): to maintain international peace and security; to develop friendly relations among nations; to achieve international co-operation on economic, social, cultural and humanitarian problems and human rights; to be a centre for harmonizing the actions of nations.
- Security Council: 15 members, of which 5 permanent with a veto: China, France, Russia, the United Kingdom, the USA; 10 elected for two years.
- The International Court of Justice (The Hague) settles disputes between states.
| Agency | Full name | Headquarters | Role |
|---|---|---|---|
| WHO | World Health Organization (1948) | Geneva | International public health; World Health Day is 7 April |
| UNESCO | UN Educational, Scientific and Cultural Organization | Paris | Education, science, culture; keeps the World Heritage List |
| UNICEF | UN Children's Fund | New York | Children's health, education and rights |
| FAO | Food and Agriculture Organization | Rome | Fights hunger; Rome also hosts the World Food Programme and IFAD |
| UNHCR | UN High Commissioner for Refugees | Geneva | Protects refugees |
| ILO | International Labour Organization (1919) | Geneva | Labour standards and workers' rights |
| IAEA | International Atomic Energy Agency | Vienna | Peaceful use of nuclear energy |
Practice this conceptself-check · 3 quick reps
Promoting trade is not one of the UN's stated purposes
Article 1 of the Charter lists peace and security, friendly relations, international co-operation and harmonizing nations' actions. Rules of international trade belong to a separate organisation, the WTO.
Big economies are not automatically permanent members
The five permanent members are the main victors of 1945: China, France, Russia, the UK and the USA. Japan, Germany, India and Brazil are not permanent members, though they have campaigned for seats.
Concept 4 of 5: NATO, the Bretton Woods institutions and other organisations
Most of these organisations were created between 1944 and 1961 to rebuild and protect the Western world after the war: a military alliance, institutions for money and development, and clubs of rich or oil-producing countries. Learn the acronym, the founding date and the seat.
Definition
- Bretton Woods (USA, 1944) created the IMF and the World Bank, both in Washington DC.
- NATO's Article 5: an armed attack on one member is an attack on all.
- NATO founders (1949): USA, Canada, United Kingdom, France, Italy, Belgium, Netherlands, Luxembourg, Denmark, Norway, Iceland, Portugal. West Germany joined in 1955; there were 32 members in 2024.
- G7: Canada, France, Germany, Italy, Japan, the UK and the USA.
| Organisation | Founded and seat | Role |
|---|---|---|
| NATO (North Atlantic Treaty Organization) | 1949; Brussels | Military alliance for collective defence |
| IMF (International Monetary Fund) | 1944; Washington DC | Short-term loans to countries in balance-of-payments crises; watches exchange rates |
| World Bank | 1944; Washington DC | Long-term loans for development and reducing poverty |
| WTO (World Trade Organization) | 1995, replacing GATT (1947); Geneva | Sets and enforces the rules of trade between nations; settles trade disputes |
| OECD (Organisation for Economic Co-operation and Development) | 1961; Paris | Policy research among advanced economies; runs the PISA school tests |
| OPEC (Organization of the Petroleum Exporting Countries) | 1960 in Baghdad; Vienna | Coordinates oil production among producers |
| Council of Europe | 1949; Strasbourg | Human rights and democracy; not part of the EU |
Practice this conceptself-check · 3 quick reps
IMF, World Bank and WTO do different jobs
The IMF lends to stabilise a country's finances in a crisis; the World Bank lends for long-term development; the WTO makes and enforces trade rules and has no money to lend. Options swap the three.
Concept 5 of 5: Human rights texts and non-governmental organisations
After the Second World War, states wrote down the rights every person has, first as a declaration and then as binding treaties. Alongside governments, private non-governmental organisations (NGOs) campaign for those rights or deliver aid, and several have won the Nobel Peace Prize.
Definition
- The Universal Declaration of Human Rights (UDHR) was adopted by the UN General Assembly in Paris on 10 December 1948 (now Human Rights Day). It is a declaration, not a binding treaty.
- The European Convention on Human Rights (1950) is binding and enforced by the European Court of Human Rights in Strasbourg.
- An NGO is an organisation independent of government. Amnesty International opposes the death penalty in all cases, on human-rights grounds (the right to life, the ban on cruel punishment, the risk of executing the innocent), not religious ones.
| Body or text | Date and place | What it is |
|---|---|---|
| Universal Declaration of Human Rights | 10 December 1948, Paris | 30 articles of basic rights, adopted by the UN |
| European Convention on Human Rights | 1950, Council of Europe | Binding treaty; enforced by the court in Strasbourg |
| International Committee of the Red Cross | 1863, Geneva; founder Henry Dunant | Neutral help to victims of war; guardian of the Geneva Conventions; Dunant shared the first Nobel Peace Prize (1901) |
| Amnesty International | 1961, London | Human rights campaigns; against torture and the death penalty |
| Médecins Sans Frontières | 1971, Paris | Independent medical aid in wars and disasters; Nobel Peace Prize 1999 |
| Greenpeace | 1971, Vancouver | Environmental campaigns |
| Emergency | 1994, Milan; founder Gino Strada | Free surgery and care for victims of war |
Practice this conceptself-check · 3 quick reps
The UDHR is a declaration, not a treaty
The Universal Declaration of 1948 states rights but does not bind states by itself. Binding obligations come from later treaties such as the European Convention (1950) and the UN covenants of 1966.
Summary — formulas & gotchas at a glance
A revision cheat-sheet for the formulas and gotchas above. Click any concept name to jump back to its full explanation.
Reference tables (5)
The institutions of the European Union6 rows
| Institution | Who sits in it | How chosen | Seat |
|---|---|---|---|
| European Parliament | Members of the European Parliament (720 elected in 2024) | Direct election by citizens every 5 years | Strasbourg (plenary sessions); also Brussels and Luxembourg |
| European Council | Heads of state or government, its President and the Commission President | Members by office; its President chosen for 2.5 years | Brussels |
| Council of the European Union | One minister per member state | Members by office; the presidency rotates every 6 months | Brussels |
| European Commission | One commissioner per member state | President proposed by the European Council and elected by Parliament; 5-year term | Brussels |
| Court of Justice of the EU | One judge per member state | Appointed by the governments for 6 years | Luxembourg |
| European Central Bank | Executive Board and euro-area central bank governors | Appointed | Frankfurt |
The euro and EU membership5 rows
| Group | Countries | Remember |
|---|---|---|
| Euro notes and coins from 1 January 2002 | Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain | Twelve countries; Greece had joined in 2001 |
| Later members | Slovenia 2007, Cyprus and Malta 2008, Slovakia 2009, Estonia 2011, Latvia 2014, Lithuania 2015, Croatia 2023, Bulgaria 2026 | 21 euro countries in 2026 |
| EU members outside the euro (2026) | Czechia, Denmark, Hungary, Poland, Romania, Sweden | Each keeps its own currency |
| Non-EU users of the euro | Andorra, Monaco, San Marino and Vatican City by agreement; Montenegro and Kosovo on their own | Not members of the euro area's decisions |
| EU membership | 27 states since the United Kingdom left on 31 January 2020 | Norway, Switzerland and Iceland are not EU members |
The United Nations and its agencies7 rows
| Agency | Full name | Headquarters | Role |
|---|---|---|---|
| WHO | World Health Organization (1948) | Geneva | International public health; World Health Day is 7 April |
| UNESCO | UN Educational, Scientific and Cultural Organization | Paris | Education, science, culture; keeps the World Heritage List |
| UNICEF | UN Children's Fund | New York | Children's health, education and rights |
| FAO | Food and Agriculture Organization | Rome | Fights hunger; Rome also hosts the World Food Programme and IFAD |
| UNHCR | UN High Commissioner for Refugees | Geneva | Protects refugees |
| ILO | International Labour Organization (1919) | Geneva | Labour standards and workers' rights |
| IAEA | International Atomic Energy Agency | Vienna | Peaceful use of nuclear energy |
NATO, the Bretton Woods institutions and other organisations7 rows
| Organisation | Founded and seat | Role |
|---|---|---|
| NATO (North Atlantic Treaty Organization) | 1949; Brussels | Military alliance for collective defence |
| IMF (International Monetary Fund) | 1944; Washington DC | Short-term loans to countries in balance-of-payments crises; watches exchange rates |
| World Bank | 1944; Washington DC | Long-term loans for development and reducing poverty |
| WTO (World Trade Organization) | 1995, replacing GATT (1947); Geneva | Sets and enforces the rules of trade between nations; settles trade disputes |
| OECD (Organisation for Economic Co-operation and Development) | 1961; Paris | Policy research among advanced economies; runs the PISA school tests |
| OPEC (Organization of the Petroleum Exporting Countries) | 1960 in Baghdad; Vienna | Coordinates oil production among producers |
| Council of Europe | 1949; Strasbourg | Human rights and democracy; not part of the EU |
Human rights texts and non-governmental organisations7 rows
| Body or text | Date and place | What it is |
|---|---|---|
| Universal Declaration of Human Rights | 10 December 1948, Paris | 30 articles of basic rights, adopted by the UN |
| European Convention on Human Rights | 1950, Council of Europe | Binding treaty; enforced by the court in Strasbourg |
| International Committee of the Red Cross | 1863, Geneva; founder Henry Dunant | Neutral help to victims of war; guardian of the Geneva Conventions; Dunant shared the first Nobel Peace Prize (1901) |
| Amnesty International | 1961, London | Human rights campaigns; against torture and the death penalty |
| Médecins Sans Frontières | 1971, Paris | Independent medical aid in wars and disasters; Nobel Peace Prize 1999 |
| Greenpeace | 1971, Vancouver | Environmental campaigns |
| Emergency | 1994, Milan; founder Gino Strada | Free surgery and care for victims of war |
Watch out for (6)
- Three councils, only two of them in the EU→ The institutions of the European Union
- EU member does not mean euro user→ The euro and EU membership
- Promoting trade is not one of the UN's stated purposes→ The United Nations and its agencies
- Big economies are not automatically permanent members→ The United Nations and its agencies
- IMF, World Bank and WTO do different jobs→ NATO, the Bretton Woods institutions and other organisations
- The UDHR is a declaration, not a treaty→ Human rights texts and non-governmental organisations
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