The word economics relates to the management of the material resources of the community. [1] The process of thinking called ‘political economics’ has to do with the arrangements found in collective society, to allow, guide, limit or to stimulate economic activates amongst its members with the purpose of the abatement of human wants and needs. As a consideration, political economics embraces the laws and practices which govern production, exchange and distribution in society. Wealth creation is its basic aim. As resources are limited, the earth being a finite planet, this has to be managed for the benefit of the group as an entirety.  The European experience particularly from the Treaty of Rome (1957) onwards created the European Economic Community with its political and economic inter-relationships on many levels, which has through the years created a wealthy peaceful European environment. The Economic Community was from the very beginning a political activity and now most certainly so in the form of the European Union. Some still see only the economic advantage of the European community and are unable to see its political aspects and tend to hold back on any further developments; others appreciate the larger idea of a political economic union and encourage its development to even higher levels of integration.  The macroeconomic elements of the modern science of political economics is dived into two broad areas of consideration, – monetary policy as exercised by banks and – fiscal policy by the taxing authorities of a specific country.    In modern European economies, with few exceptions monetary and fiscal policies are conducted separately with the thinking that an independent banking system is more desirable conducting monetary affairs without a close relationship to the political government. Fiscal policy which is the government’s direct control of the economic activity with fundamentally taxes and direct job creation elements and momentary policy with has to do with interest rates, money and bank activities. Here we will be introducing themes that relate to political economic happenings in Europe.


[1] Latin oeconomia, Greek oikomiaoikos means house, nomos a law, in effect the laws of the house.

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