Distinguish between the following: (i) 'Economic union' and 'political union'.

'Economic Union' and 'Political Union' Economic Union is created when countries enter into an economic agreement to remove barriers to trade and adopt common economic policies. An example is the European Union (EU). Political Union more advanced integration steps are typically accompanied by unification of economic policies (tax, social welfare benefits etc). Political union is the final stage in economic integration with more informal political link between the countries. The unification of West Germany and East Germany in 1990 is an example of total political union.