123000 The effects of globalization on the European Union are diverse. But the future growth and sustainability of the EU is dependent on globalization. The reforms influenced by globalization in the European countries not only make the Union more transparent and effective but also help the European Union to establish itself as a strong global actor. The challenges faced in the global including the European Union like economic integration, economic migration, humanitarian crises, failing states, energy security, climate change, terrorism etc. are interdependent. The European Union identifies the importance of globalization and the impacts of the phenomenon on the various aspects of the economy. Therefore, it should focus on effective management of the globalization process in order to meet the arising challenges and prevent any backlash from the phenomenon. The effective management of globalization and its rules would help the European Union to act as global actor in the true sense. The internal policies and the association with the international organizations can help the Union in managing the process of globalization in the region and control its effects and impacts to a large extent.