The course presents the European position in the global economy. It reviews issues of international trade flows and capital flows between the European economies and the major partners. The course deals with the policies of the European Union, that of the World Trade Organization and of the IMF. It presents the economic relations between Europe and the United States. It analyzes the external economic policy issues of the European Union. The formation of economic competitiveness between the leading nations is an integral part of the program. The course illustrates the role of the multinational companies it deals with the current issues of the international capital flows. It helps understand the current trends of globalization and of de-globalization their effects on the European Union and on the European economy. It analyzes the reasons of the recent global crisis and that of the euro crisis. The course puts a special emphasis on the economic environment in the new EU member countries. It applies the instruments and methods of international economic policy.