Solution

The facts mentioned below make the European Union a highly influential regional organisation :
1. It has its own flag, anthem, founding date and currency.

2. It has forum of a foreign and security policy in its dealings with other nations.

3. The EU is the world’s biggest economy with a GDP of more than $12 trillion in 2005 slightly larger than that of the United States.

4. Its currency, the euro, poses a threat to the dominance of the US dollar.

5. Its share of world trade is three times larger than that of the United States. Its economic power gives it influence over its closest neighbours as well as in Asia and Africa.

6. It role as an important bloc in international economic organisations such as the World Trade Organisation.

7. It has political and diplomatic influence. Two members of EU–Britain and France-are permanent members of UN Security Council. Some of its members are non-permanent members of UN Security Council. Its use of diplomacy, economic investments and negotiations rather than coercion have been more effective in dialogue with China on human rights and environmental degradation.

8. Its military power is the second largest in the world. Britain and France have nuclear arsenals.

9. It is the world’s second most important source of space and communication technology.

Thus, as supranational organisation, the EU is able to intervene in economic, political and social areas of the world.