EEC: European Economic Community

The European Economic Community (EEC) was an economic organization aimed at facilitating economic integration among its member states.

The European Economic Community (EEC), commonly referred to as the Common Market, was an economic organization established to foster economic integration among its member states. The core objective of the EEC was to create a common market and customs union among the six founding countries: Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany.

Formation and Historical Context

Treaty of Rome

The EEC was established by the Treaty of Rome, signed on March 25, 1957, and it came into effect on January 1, 1958. This treaty laid down the foundational principles of the organization, emphasizing the elimination of trade barriers and the promotion of free movement of goods, services, capital, and labor among member states.

Timeline of Expansion

Over time, the EEC expanded with new member countries joining:

• 1973: United Kingdom, Denmark, and Ireland.
• 1981: Greece.
• 1986: Spain and Portugal.
• 1995: Austria, Finland, and Sweden.

Transition to the European Union

The EEC played a pivotal role in the evolution of what is now known as the European Union (EU). In 1993, the Treaty of Maastricht reorganized the structure of the European Communities, creating the EU and subsuming the EEC within it, which was then termed simply the “European Community” (EC). The EC eventually became one element of the EU’s broader framework.

Economic Integration

Common Market

The primary achievement of the EEC was the establishment of a Common Market, allowing for:

• Free movement of goods: Elimination of tariffs, quotas, and other barriers to trade among member countries.
• Free movement of services: Enabling businesses and professionals to provide services across member states without restriction.
• Free movement of capital: Facilitating cross-border investments and financial transactions.
• Free movement of labor: Allowing workers to move freely between member states to seek employment.

Customs Union

A notable feature of the EEC was the creation of a Customs Union, setting a common external tariff on goods imported from non-member countries, fostering competitive equality within the Common Market.

Applicability and Impact

Economic Growth

The EEC significantly contributed to the economic growth and stability of its member states. By the 1970s and 1980s, the economic policies of the EEC had created one of the largest and most stable markets in the world.

Political Cooperation

Beyond economic integration, the EEC also facilitated closer political cooperation between member states, laying the groundwork for the broader political objectives realized through the EU.

Related Terms

• European Union (EU): The EU is the political and economic successor to the EEC, representing a more integrated and expansive union of European countries.
• Treaty of Rome: The foundational treaty that established the EEC, key to understanding its legal and operational framework.
• Single European Act: An amendment to the Treaty of Rome, aimed at creating a single internal market within the EEC.
• Maastricht Treaty: The treaty that established the EU and integrated the EEC within its broader framework.

FAQs

What was the main goal of the EEC?

The main goal of the EEC was to achieve economic integration and create a common market among its member states, promoting free movement of goods, services, capital, and labor.

How did the EEC evolve into the EU?

The EEC evolved into the EU through the integration of its policies and expansion of its membership, culminating in the Treaty of Maastricht in 1993, which formally established the EU.

What countries were the founding members of the EEC?

The founding members were Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany.

References

1. “Treaty establishing the European Economic Community.” European Union. https://europa.eu/european-union/law/treaties_en
2. Dedman, Martin. “The Origins and Development of the European Union 1945-2008: A History of European Integration.” Routledge, 2009.
3. Keohane, Robert O., and Joseph S. Nye. “Power and Interdependence: World Politics in Transition.” Little, Brown & Co., 1977.

Summary

The European Economic Community (EEC) was an instrumental economic organization in post-war Europe, fostering economic cooperation and integration among its member states. Laid down by the Treaty of Rome, the EEC’s legacy continues as it forms the economic bedrock upon which the contemporary European Union was built. With its common market and customs union, the EEC contributed significantly to regional stability and growth, demonstrating the power of collective economic action.