Introduction

Abstract

The European Union (EU) is facing multiple challenges. These include difficulties in managing a single currency mechanism, an influx of refugees, a crisis in Ukraine, terrorist attacks, a stand-off in Catalonia, the rise of populism and the British exit from the EU. This chapter argues that despite these difficulties, the EU is still a major economy with a huge capacity to influence issues concerning global governance and climate change. As a major trade and investment partner of India, developments in Europe have significant implications for the Indian economy and India–EU ties. Although Free Trade Agreement negotiations are deadlocked, the strategic partnership is gaining momentum with an agreed Agenda for Action 2020. Areas of convergence include climate change, energy, the environment, counter-terrorism, maritime security, science and technology, development cooperation, migration and mobility, civil society links and dialogues on Asia and Africa.