The European Union has been awarded the Nobel Peace Prize (Reuters)

Awarded with the 2012 Nobel Peace Prize in Oslo, the EU is to join straightaway the Club of the most controversial laureates.

The EU was awarded for its "successful struggle for peace, reconciliation, democracy and human rights," the Chair of the Nobel Committee Secretary Thorbjørn Jagland said.

However EU's nomination had a strong political character, recognised by Jagland, who said the award was a message against the increasing nationalistic spirit spreading across Europe that is endangering the Union's grounds.

"We should do everything we can to secure what we have achieved," Jagland said.

"Deeply touched honoured that the EU has won the Nobel Peace Prize. Reconciliation is what the EU is about. It can serve as inspiration," tweeted the Martin Schulz, the German president of the European Parliament.

"The European Union has played a vital role in healing the wounds of history and promoting peace, reconciliation and cooperation across Europe," said Nato secretary Anders Fogh Rasmussen.

"It is a great honour for the whole of the EU, all 500 million citizens, to be awarded the 2012 Nobel Peace prize," wrote the President of the EU Commission Jose Manuel Barroso.

The award highlighted the division between the growing Euro-sceptic movements and Europhiles across the continent. .

"I think it's an absolute disgrace. I think it brings the Nobel Prize into total disrepute," said Nigel Farage, head of Britain's UK Independence Party.

"Like most people, I greeted the EU's Nobel Peace Prize with delighted laughter. First Al Gore, then Obama, now this. Parody is redundant," tweeted British conservative MEP Daniel Hannan. US President Barak Obama was awarded the prestigious prize in 2009, while former US Democratic presidential candidate Al Gore won the Nobel in 2007.

"Nobel prize for the EU. At a time Brussels and all of Europe is collapsing in misery. What next? An Oscar for Van Rompuy?" commented Dutch right wing politician Geert Wilders, referring to Herman Van Rompuy, president of the European Council.

Former UK Labour shadow Foreign Secretary David Milliband shifted the focus on the struggling European economic situation.

"The EU certainly won't be getting the Nobel Prize for Economics! Time to ditch austerity and embrace reform," he tweeted.

The Nobel Prize was established by the last will of Swedish chemist Alfred Nobel in 1895 and the Peace award was meant to be dedicated to "the person who shall have done the most or the best work for fraternity between nations, for the abolition or reduction of standing armies and for the holding and promotion of peace congresses".