Economics

European Community

Published Apr 28, 2024

Definition of European Community

The European Community (EC) refers to an organizational framework that was primarily aimed at fostering economic cooperation among its member countries. Originating from the European Coal and Steel Community (ECSC) in 1951 and evolving through the establishment of the European Economic Community (EEC) in 1957, the EC was ultimately integrated into the European Union (EU) with the signing of the Maastricht Treaty in 1993. The EC encompassed a wide range of policies, including economic, environmental, and social policy, within a single institutional framework.

Evolution and Role

The EC played a crucial role in shaping the landscape of European integration. It served as the basis for the creation of a single market, allowing for the free movement of goods, services, capital, and people among the member states. This framework not only facilitated trade and economic growth but also aimed to harmonize regulations and promote common policies across various sectors. The European Community was instrumental in establishing a customs union and laying the groundwork for economic and monetary union, which eventually led to the introduction of the euro as a common currency among participating EU member states.

Transition to the European Union

The Maastricht Treaty marks a significant milestone in the history of the EC as it rebranded the European Economic Community (EEC) to simply the European Community as part of a broader process that established the European Union. This transition expanded the scope of cooperation beyond economic policies to include foreign and security policy, justice, and home affairs, signifying a move towards a more integrated and diversified union. The EC, as such, became one of the three pillars of the EU, specifically focusing on economic aspects until its absorption into the EU’s wider framework under the Treaty of Lisbon in 2009.

Impact on Member Countries

The European Community had a profound impact on its member countries, driving not only economic integration but also political cooperation. By standardizing laws and regulations, removing trade barriers, and encouraging mobility, the EC significantly contributed to the stabilization and growth of the European economy. It also played a key role in environmental protection, research and development, and social policy, showcasing a dedication to not only economic prosperity but also to improving the quality of life for its citizens.

Frequently Asked Questions (FAQ)

What was the difference between the European Economic Community (EEC) and the European Community (EC)?

The EEC was primarily focused on economic integration among the six founding European countries. With the Maastricht Treaty, the EEC was expanded and renamed the European Community to reflect a broader scope that included not only economic but also social and environmental cooperation. This renaming signified the transition towards a more comprehensive integration effort, which eventually led to the establishment of the European Union.

How did the European Community contribute to the creation of the single European market?

The European Community played a central role in establishing the single European market by promoting the four freedoms: the free movement of goods, services, capital, and labor across member states. It worked towards harmonizing regulations, standards, and procedures across countries to reduce barriers to trade and investment, paving the way for a more integrated and efficient European market.

Why was the European Community integrated into the European Union?

The integration of the European Community into the European Union under the Treaty of Lisbon was part of a broader effort to streamline and strengthen the collective governance structures of the member states. This move aimed to enhance policy coherence, increase efficiency, and simplify the legal framework governing the wide array of policies and initiatives undertaken at the European level. By consolidating the EC’s functions and policies into the EU, the member states sought to create a more robust and cohesive entity capable of addressing contemporary challenges more effectively.

What happened to the European Community after the Treaty of Lisbon?

After the Treaty of Lisbon came into effect in 2009, the European Community was fully integrated into the European Union’s framework. The treaty abolished the three-pillar system, under which the EC operated as one pillar, and instead established a consolidated legal entity in the form of the EU. This reform aimed to simplify the EU’s operations and make it more understandable to its citizens and the international community, marking the end of the European Community as a distinct entity within the broader structure of European integration.