The Nobel Peace Prize was awarded to the European Union for promoting peace, democracy and human rights over six decades since the end of World War II, however the award comes at a time when the EU is struggling with its biggest debt crisis.
The Norwegian prize committee said the EU was being honored Friday for six decades of contributions "to the advancement of peace and reconciliation, democracy and human rights in Europe."
"The stabilizing part played by the European Union has helped to transform a once-torn Europe from a continent of war to a continent of peace," Nobel committee chairman Thorbjoern Jagland said, according to Reuters.
"It is indeed a great honor for all the 500 million citizens of Europe, for all the member states, for all the European institutions - this Nobel Prize for peace," European Commission President Jose Manuel Barroso said. "It is justified recognition for a unique project that works for the benefit of its citizens and also for the benefit of the world."
However, the EU's financial disarray is threatening the euro, the common currency used by 17 of its members, and even the structure of the union itself. The debt crisis is also fueling the rise of extremist movements such as Golden Dawn in Greece, which opponents brand as neo-Nazi.
"We do not have a position on how to solve these problems, but we send a very strong message that we should keep in mind why we got this Europe after World War II," Nobel committee chairman Thorbjoern Jagland told The Associated Press.
The announcement was met with mixed reactions in debt-ridden countries like Spain and Greece, where many blame Germany and other northern EU neighbors for the painful austerity measures like higher taxes and job cuts they have endured to salvage their floundering economies.
No word was offered as to how the European Union planned on using the $1.2 million prize money.
