European Economic Community

Published Apr 28, 2024

Definition of the European Economic Community

The European Economic Community (EEC) was established by the Treaty of Rome in 1957 as a way to foster economic integration among its six founding members: Belgium, Germany (then West Germany), France, Italy, Luxembourg, and the Netherlands. The main aim of the EEC was to create a common market, allowing for the free movement of goods, services, capital, and labor. This concept of integration was intended to increase economic prosperity and contribute to closer political relations among the member states.

Evolution and Expansion

Over the years, the EEC underwent significant changes and expansions. More countries joined, broadening its scope and influence across Europe. A critical moment in its history was the Single European Act of 1986, which set the stage for the completion of the single market. This act was a major step towards deeper integration, reducing the remaining barriers to free movement within the Community.

The Maastricht Treaty and Transition to the European Union

The EEC evolved into the European Union (EU) with the Maastricht Treaty, which came into force on November 1, 1993. This treaty introduced European citizenship, allowing citizens to move freely across member states and participate in European politics. The EU expanded the objectives of the EEC, focusing not only on economic integration but also on political union, with the establishment of the Common Foreign and Security Policy (CFSP) and cooperation in the areas of justice and home affairs.

Economic Impact of the EEC

The creation of the EEC and its evolution into the EU brought fundamental changes to the economic landscape of Europe. It facilitated the largest and one of the most significant free trade areas in the world. Businesses could operate more efficiently within a larger market, leading to increased competition, innovation, and economies of scale. Consumers benefited from a wider variety of goods and services at lower prices. Moreover, the cohesion policies and structural funds aimed at reducing economic disparities between regions have contributed to raising the standard of living in less developed areas.

Why the European Economic Community Matters

The EEC represents a critical chapter in the history of European integration. Its establishment marked the beginning of a new era of economic cooperation, which had profound implications for the economic development, political landscape, and social fabric of Europe. The EEC’s transition to the EU has not only expanded its scope beyond economic matters but also created a political entity that plays a significant role on the global stage. Today, the EU continues to work towards deeper integration among its members while facing challenges such as Brexit, economic disparities, and political disagreements.

Frequently Asked Questions (FAQ)

What were the main objectives of the EEC when it was founded?

The main objectives of the EEC were to promote economic integration among its member states, including the establishment of a common market and customs union, to foster economic growth and improve living standards, and to lay the groundwork for further political integration.

How did the EEC contribute to the economic growth of Europe?

The EEC contributed to Europe’s economic growth by eliminating tariffs and other trade barriers, encouraging free trade and competition, promoting labor mobility, and stimulating investment. This economic integration helped increase efficiency, lower costs, and expand markets for businesses, which in turn led to higher productivity and economic growth.

What were the major steps in the evolution from the EEC to the EU?

The evolution from the EEC to the EU involved several major steps, including the expansion of membership, the deepening of economic integration with the creation of the single market through the Single European Act, and the establishment of a political union with the Maastricht Treaty. These steps expanded the scope of cooperation beyond economics to include foreign policy, justice, and home affairs, thereby transforming the EEC into the more politically integrated entity now known as the European Union.

What challenges did the EEC face during its existence?

During its existence, the EEC faced several challenges, including negotiating the scope and pace of economic integration, dealing with the economic disparities among member states, managing the expansion to include new member countries, and addressing broader political, social, and environmental issues that required collective action beyond national borders.

The EEC’s story is a testament to the complexities and challenges of regional integration but also to its potential to transform economies and societies. Its legacy lives on in the European Union, a remarkable political and economic entity that continues to evolve in response to new challenges and opportunities.