With respect to the first, the new Economic Union will provide a single financial and economic space, which, through a process of aggregation, should lead to the following advantages:   Economies of scale in production, distribution, marketing and public administration;    The spread of risk across a greater land space and a bigger population; and    Increased capacity to negotiate with third countries, groups of countries, regional and international institutions and foreign private investors.
The nature of an Economic Union is so complex, that is, involving a number of sovereign states, that it requires appropriate political arrangements and institutions to be successful.