Because :
(i) Economic Influence :
• Three times larger share in World trade than the US.
• Its currency Euro can pose a threat to the dominance of US Dollar.
• The EU functions as an important bloc in World Trade Organisation (WTO).
(ii) Political Influence :
• Two members of the E U, Britain and France hold permanent seats in Security Council to influence UN policies.
• The EU also includes various non-permanent members of UNSC.
• The European Union plays an influential role in diplomacy and negotiations except military force i.e. EU’s dialogue with China on Human Rights and environmental degradation is remarkable.
(iii) Military Influence :
• The EU’s combined armed forces are second largest in world.
• Its total military expenditure is second to the US.
• Its two important members—Britain and France also experience nuclear arsenals of 550 nuclear warheads.
• The EU is world’s second most important source of space and communication technology
