<<–2/”>a href=”https://exam.pscnotes.com/5653-2/”>h2>EEC: European Economic Community
Origins and Formation
The European Economic Community (EEC), commonly known as the Common Market, was established by the Treaty of Rome, signed on March 25, 1957, by Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. The EEC was a significant step towards European integration, building upon the success of the European Coal and Steel Community (ECSC) established in 1951.
The Treaty of Rome aimed to create a single market for goods, Services, capital, and labor within the member states. It also sought to promote economic Growth and stability through cooperation and coordination of economic policies.
Key Objectives and Principles
The EEC’s primary objectives were:
- Free movement of goods: Eliminating tariffs and other barriers to trade between member states.
- Free movement of services: Facilitating the cross-border provision of services.
- Free movement of capital: Allowing capital to flow freely between member states.
- Free movement of labor: Enabling workers to move freely between member states.
- Common agricultural policy: Coordinating agricultural policies to ensure fair prices and stable markets.
- Competition policy: Ensuring fair competition within the single market.
- Regional policy: Supporting the development of less developed regions.
The EEC operated on the principles of:
- Supranationalism: The Community had its own institutions with independent powers, such as the European Commission and the European Court of Justice.
- Intergovernmentalism: Member states retained significant influence over decision-making, particularly in areas of Foreign Policy and defense.
- Subsidiarity: Decisions should be taken at the lowest possible level of government.
Institutions of the EEC
The EEC had several key institutions:
- European Commission: Responsible for proposing legislation, implementing Community policies, and enforcing Community law.
- Council of Ministers: Composed of ministers from each member state, responsible for adopting legislation and coordinating national policies.
- European Parliament: Elected by citizens of member states, responsible for scrutinizing legislation and approving the Community budget.
- European Court of Justice: Responsible for interpreting Community law and ensuring its uniform application.
Expansion and Evolution
The EEC expanded significantly over the years, with new members joining in 1973 (Denmark, Ireland, and the United Kingdom), 1981 (Greece), 1986 (Spain and Portugal), and 1995 (Austria, Finland, and Sweden).
The EEC also evolved over time, with the creation of the Single European Act in 1985, which aimed to complete the single market by 1993. This led to the establishment of the European Union (EU) in 1993, which incorporated the EEC and expanded its scope to include political cooperation and other areas.
Achievements and Challenges
The EEC achieved significant success in promoting economic growth and integration within Europe. It helped to reduce trade barriers, foster economic cooperation, and create a single market for goods, services, capital, and labor.
However, the EEC also faced challenges, including:
- Agricultural policy: The Common Agricultural Policy (CAP) was criticized for being expensive and inefficient.
- Regional disparities: The EEC struggled to address the economic disparities between member states.
- Political integration: The EEC’s limited political integration was a source of tension and debate.
Table 1: EEC Expansion
| Year | New Member States |
|---|---|
| 1957 | Belgium, France, Italy, Luxembourg, Netherlands, West Germany |
| 1973 | Denmark, Ireland, United Kingdom |
| 1981 | Greece |
| 1986 | Spain, Portugal |
| 1995 | Austria, Finland, Sweden |
Table 2: EEC Institutions
| Institution | Role |
|---|---|
| European Commission | Proposing legislation, implementing Community policies, enforcing Community law |
| Council of Ministers | Adopting legislation, coordinating national policies |
| European Parliament | Scrutinizing legislation, approving the Community budget |
| European Court of Justice | Interpreting Community law, ensuring its uniform application |
Frequently Asked Questions
Q: What is the difference between the EEC and the EU?
A: The EEC was a regional economic organization focused on creating a single market. The EU is a broader political and Economic Union that encompasses the EEC and expands its scope to include political cooperation, foreign policy, and other areas.
Q: What were the main benefits of the EEC?
A: The EEC promoted economic growth, reduced trade barriers, fostered economic cooperation, and created a single market for goods, services, capital, and labor.
Q: What were the main challenges faced by the EEC?
A: The EEC faced challenges with its agricultural policy, regional disparities, and limited political integration.
Q: What is the legacy of the EEC?
A: The EEC laid the foundation for the European Union and its single market, which has become a major force in the global Economy. It also demonstrated the potential of regional integration for promoting economic growth and cooperation.