European Economic Community

The European Economic Community(EEC) was a regional organisation which aimed to bring about economic integration among its
member states. It was created by the Treaty of Rome of 1957.[2] Upon the formation of the European Union (EU) in 1993, the EEC
European Economic Community
was incorporated and renamed as the European Community (EC). In 2009 the EC's institutions were absorbed into the EU's wider
European Community
framework and the community ceased to exist. 1958–1993/2009

The Community's initial aim was to bring about economic integration, including a common market and customs union, among its six
founding members: Belgium, France, Italy, Luxembourg, the Netherlands and West Germany. It gained a common set of institutions
along with the European Coal and Steel Community(ECSC) and the European Atomic Energy Community (EURATOM) as one of the
European Communitiesunder the 1965 Merger Treaty (Treaty of Brussels). In 1993, a complete single market was achieved, known as
the internal market, which allowed for the free movement of goods, capital, services, and people within the EEC. In 1994, the internal Emblem (1986) [1]
market was formalised by the EEA agreement. This agreement also extended the internal market to include most of the member states
Anthem: "Ode to Joy" (orchestral)
of the European Free Trade Association, forming the European Economic Areacovering 15 countries.

Upon the entry into force of the Maastricht Treaty in 1993, the EEC was renamed the European Community to reflect that it covered a
wider range than economic policy. This was also when the three European Communities, including the EC, were collectively made to
constitute the first of the three pillars of the European Union, which the treaty also founded. The EC existed in this form until it was
abolished by the 2009 Treaty of Lisbon, which incorporated the EC's institutions into the EU's wider framework and provided that the
EU would "replace and succeed the European Community".

The EEC was also known as the Common Market in the English-speaking countries and sometimes referred to as the European
Community even before it was officially renamed as such in 1993.

Contents
History EEC in 1993
Background Status Economic union
Creation and early years
Capital Brussels
Enlargement and elections
Toward Maastricht Luxembourg
European Community Strasbourg²

Aims and achievements Common languages 9 (1993)

Members Commission
Institutions President
Background • 1958–1967 Walter Hallstein
Council • 1967–1970 Jean Rey
Commission • 1973–1977 François-Xavier
Parliament Ortoli
Court • 1977–1981 Roy Jenkins
Auditors • 1981–1985 Gaston Thorn
• 1985–1993 Jacques Delors
Policy areas
Legislature Council of Ministers
See also
European Parliament
EU evolution timeline
Notes and references
Historical era Cold War
Notes • Treaty signed 25 March 1957
References • Established 1 January 1958
• European 1 July 1967
Further reading
Communities
External links • Single market 1 January 1993
• Communities 1 November 1993
become a pillar of
the EU
History • Pillar abolished 1 December 2009
Currency 13 currencies
Background
Succeeded by
In 1951, the Treaty of Paris was signed, creating the European Coal and Steel Community (ECSC). This was an international
European Union
community based on supranationalism and international law, designed to help the economy of Europe and prevent future war by
integrating its members. Today part of European Union
In the aim of creating a federal Europe two further communities were proposed: a European Defence Community and a European ¹ The information in this infobox covers the
Political Community. While the treaty for the latter was being drawn up by the Common Assembly, the ECSC parliamentary chamber, EEC's time as an independent organisation. It
does not give details of post-1993 operation
the proposed defense community was rejected by the French Parliament. ECSC President Jean Monnet, a leading figure behind the within the EU as that is explained in greater
communities, resigned from the High Authority in protest and began work on alternative communities, based on economic integration length in the European Union and European
rather than political integration.[3] After the Messina Conference in 1955, Paul Henri Spaak was given the task to prepare a report on Communities articles.
² De facto only, these cities hosted the main
the idea of a customs union. The so-called Spaak Report of the Spaak Committee formed the cornerstone of the intergovernmental
institutions but were not titled as capitals.
negotiations at Val Duchesse conference centre in 1956.[4] Together with the Ohlin Report the Spaak Report would provide the basis
for the Treaty of Rome.

In 1956, Paul Henri Spaak led the Intergovernmental Conference on the Common Market and Euratom at the Val Duchesse conference centre, which prepared for the Treaty of Rome in 1957. The
conference led to the signature, on 25 March 1957, of theTreaty of Rome establishing a European Economic Community
.
Creation and early years
The resulting communities were the European Economic Community (EEC) and the European Atomic Energy Community (EURATOM or sometimes EAEC). These were markedly less
supranational than the previous communities, due to protests from some countries that their sovereignty was being infringed (however there would still be concerns with the behaviour of the
Hallstein Commission). The first formal meeting of the Hallstein Commission was held on 16 January 1958 at the Chateau de Val-Duchesse. The EEC (direct ancestor of the modern Community)
was to create a customs union while Euratom would promote co-operation in thenuclear power sphere. The EEC rapidly became the most important of these and expanded its activities. One of the
first important accomplishments of the EEC was the establishment (1962) of common price levels for agricultural products. In 1968, internal tariffs (tariffs on trade between member nations) were
removed on certain products.

Another crisis was triggered in regard to proposals for the financing of the Common Agricultural Policy, which came into force in 1962. The
transitional period whereby decisions were made by unanimity had come to an end, and majority-voting in the Council had taken effect. Then-
French President Charles de Gaulle's opposition to supranationalism and fear of the other members challenging the CAP led to an "empty chair
policy" whereby French representatives were withdrawn from the European institutions until the French veto was reinstated. Eventually, a
compromise was reached with the Luxembourg compromise on 29 January 1966 whereby a gentlemen's agreement permitted members to use a
veto on areas of national interest.[5][6]

On 1 July 1967 when the Merger Treaty came into operation, combining the institutions of the ECSC and Euratom into that of the EEC, they
already shared a Parliamentary Assembly and Courts. Collectively they were known as the European Communities. The Communities still had
independent personalities although were increasingly integrated. Future treaties granted the community new powers beyond simple economic
matters which had achieved a high level of integration. As it got closer to the goal of political integration and a peaceful and united Europe, what
Mikhail Gorbachev described as a Common European Home.

Enlargement and elections

The 1960s saw the first attempts at enlargement. In 1961, Denmark, Ireland, Norway and the United Kingdom applied to join the three
Communities. However, President Charles de Gaulle saw British membership as aTrojan horse for U.S. influence and vetoed membership, and the
French President Charles de Gaulle
applications of all four countries were suspended. Greece became the first country to join the EC in 1961 as an associate member, however its
vetoed British membership, held
[7]
membership was suspended in 1967 after the Colonels coup d'état. back the development of
Parliament's powers and was at the
A year later, in February 1962, Spain attempted to join the European Communities. However, because Francoist Spain was not a democracy, all
centre of the 'empty chair crisis' of
members rejected the request in 1964. 1965

The four countries resubmitted their applications on 11 May 1967 and with Georges Pompidou succeeding Charles de Gaulle as French president
in 1969, the veto was lifted. Negotiations began in 1970 under the pro-European government of Edward Heath, who had to deal with disagreements relating to the Common Agricultural Policy
and the UK's relationship with the Commonwealth of Nations. Nevertheless, two years later the accession treaties were signed so that Denmark, Ireland and the UK joined the Community
effective 1 January 1973. The Norwegian peoplehad finally rejected membership in a referendum on 25 September 1972.[8]

The Treaties of Rome had stated that the European Parliament must be directly elected, however this required the Council to agree on a common voting system first. The Council procrastinated on
the issue and the Parliament remained appointed,[9] French President Charles de Gaulle was particularly active in blocking the development of the Parliament, with it only being granted Budgetary
powers following his resignation.

Parliament pressured for agreement and on 20 September 1976 the Council agreed part of the necessary instruments for election, deferring details on electoral systems which remain varied to this
day.[9] During the tenure of President Jenkins, in June 1979, the elections were held in all the then-members (see European Parliament election, 1979).[10] The new Parliament, galvanised by
[9]
direct election and new powers, started working full-time and became more active than the previous assemblies.

Shortly after its election, the Parliament proposed that the Community adopt the flag of Europe design used by the Council of Europe. The European Council in 1984 appointed an ad hoc
committee for this purpose.[11] The European Council in 1985 largely followed the Committee's recommendations, but as the adoption of a flag was strongly reminiscent of a national flag
[1]
representing statehood, was controversial, the "flag of Europe" design was adopted only with the status of a "logo" or "emblem".

The European Council, or European summit, had developed since the 1960s as an informal meeting of the Council at the level of heads of state. It had originated from then-French President
Charles de Gaulle's resentment at the domination of supranational institutions (e.g. the Commission) over the integration process. It was mentioned in the treaties for the first time in the Single
European Act (see below).[12]

Toward Maastricht
Greece re-applied to join the community on 12 June 1975, following the restoration of democracy, and joined on 1 January 1981.[13] Following on
from Greece, and after their own democratic restoration, Spain and Portugal applied to the communities in 1977 and joined together on 1 January
1986.[14] In 1987 Turkey formally applied to join the Community and began the longest application process for any country
.

With the prospect of further enlargement, and a desire to increase areas of co-operation, the Single European Act was signed by the foreign
ministers on the 17 and 28 February 1986 in Luxembourg and the Hague respectively. In a single document it dealt with reform of institutions,
extension of powers, foreign policy cooperation and the single market. It came into force on 1 July 1987.[15] The act was followed by work on
what would be the Maastricht Treaty, which was agreed on 10 December 1991, signed the following year and coming into force on 1 November
1993 establishing the European Union, and paving the way for theEuropean Monetary Union.
Enlargement, 1957 to 2013
Community enlargement
European Community
Since 1995
The EU absorbed the European Communities as one of its three pillars. The EEC's areas of activities were enlarged and were renamed the
European Community, continuing to follow the supranational structure of the EEC. The EEC institutions became those of the EU, however the
Court, Parliament and Commission had only limited input in the new pillars, as they worked on a more intergovernmental system than the European Communities. This was reflected in the names
of the institutions, the Council was formally the "Council of theEuropean Union" while the Commission was formally the "Commission of theEuropean Communities".

However, after the Treaty of Maastricht, Parliament gained a much bigger role. Maastricht brought in the codecision procedure, which gave it equal legislative power with the Council on
Community matters. Hence, with the greater powers of the supranational institutions and the operation of Qualified Majority Voting in the Council, the Community pillar could be described as a
far more federal method of decision making.
The Treaty of Amsterdam transferred responsibility for free movement of persons (e.g., visas, illegal immigration, asylum) from the Justice and Home Affairs (JHA) pillar to the European
Community (JHA was renamedPolice and Judicial Co-operation in Criminal Matters(PJCC) as a result).[16] Both Amsterdam and the Treaty of Nice also extended codecision procedure to nearly
all policy areas, giving Parliament equal power to the Council in the Community
.

In 2002, the Treaty of Paris which established the ECSC expired, having reached its 50-year limit (as the first treaty, it was the only one with a limit). No attempt was made to renew its mandate;
instead, the Treaty of Nice transferred certain of its elements to theTreaty of Rome and hence its work continued as part of the EC area of the European Community's remit.

After the entry into force of the Treaty of Lisbon in 2009 the pillar structure ceased to exist. The European Community, together with its legal personality, was absorbed into the newly
consolidated European Union which merged in the other two pillars (however Euratom remained distinct). This was originally proposed under the European Constitution but that treaty failed
ratification in 2005.

Aims and achievements

The main aim of the EEC, as stated in its preamble, was to "preserve peace and liberty and to lay the foundations of an ever closer union among the peoples of Europe". Calling for balanced
[17]
economic growth, this was to be accomplished through:

1. The establishment of acustoms union with a common external tariff

2. Common policies for agriculture, transport and trade, including standardization (for example, the CE marking designates standards compliance)
3. Enlargement of the EECto the rest of Europe
For the customs union, the treaty provided for a 10% reduction in custom duties and up to 20% of global import quotas. Progress on the customs union proceeded much faster than the twelve years
planned. However, France faced some setbacks due to theirwar with Algeria.[18]

Members
The six states that founded the EEC and the other two Communities were known as the "inner six" (the "outer seven" were those countries who formed the European Free Trade Association). The
six were France, West Germany, Italy and the three Benelux countries: Belgium, the Netherlands and Luxembourg. The first enlargement was in 1973, with the accession of Denmark, Ireland and
the United Kingdom. Greece, Spain and Portugal joined in the 1980s. The former East Germany became part of the EEC upon German reunification in 1990. Following the creation of the EU in
1993, it has enlarged to include an additional sixteen countries by 2013.

Population
Flag State Accession Language(s) Currency
(1990)[19]
Dutch, French and
Belgium 25 March 1957 Belgian franc[20] 10,016,000
German

France 25 March 1957 French French franc 56,718,000

West
25 March 1957 German German mark 63,254,000[21]
Germany/Germany[note 1]

Italy 25 March 1957 Italian Italian lira 56,762,700

French, German and Luxembourgish

Luxembourg 25 March 1957 384,400
Luxembourgish franc[20]

Netherlands 25 March 1957 Dutch and Frisian Dutch guilder 14,892,300

Denmark 1 January 1973 Danish Danish krone 5,146,500

Ireland 1 January 1973 Irish and English Irish pound 3,521,000 Founding members of EEC

United Kingdom[22] 1 January 1973 English Pound sterling 57,681,000 Later members of EEC

Greece 1 January 1981 Greek Greek drachma 10,120,000

Portuguese
Portugal 1 January 1986 Portuguese 9,862,500
escudo

Spain 1 January 1986 Spanish[note 2] Spanish peseta 38,993,800

Member states are represented in some form in each institution. The Council is also composed of one national minister who represents their national government. Each state also has a right to one
European Commissioner each, although in the European Commission they are not supposed to represent their national interest but that of the Community. Prior to 2004, the larger members
(France, Germany, Italy and the United Kingdom) have had two Commissioners. In the European Parliament, members are allocated a set number seats related to their population, however these
(since 1979) have been directly elected and they sit according to political allegiance, not national origin. Most other institutions, including the European Court of Justice, have some form of
national division of its members.

Institutions
There were three political institutions which held the executive and legislative power of the EEC, plus one judicial institution and a fifth body created in 1975. These institutions (except for the
auditors) were created in 1957 by the EEC but from 1967 onwards they applied to all three Communities. The Council represents governments, the Parliament represents citizens and the
Commission represents the European interest.[23] Essentially, the Council, Parliament or another party place a request for legislation to the Commission. The Commission then drafts this and
presents it to the Council for approval and the Parliament for an opinion (in some cases it had a veto, depending upon the legislative procedure in use). The Commission's duty is to ensure it is
implemented by dealing with the day-to-day running of the Union and taking others to Court if they fail to comply.[23] After the Maastricht Treaty in 1993, these institutions became those of the
European Union, though limited in some areas due to the pillar structure. Despite this, Parliament in particular has gained more power over legislation and security of the Commission. The Court
was the highest authority in the law, settling legal disputes in the Community,while the Auditors had no power but to investigate.

Background
The EEC inherited some of the Institutions of the ECSC in that the Common Assembly and Court of Justice of the ECSC had their authority extended to the EEC and Euratom in the same role.
However the EEC, and Euratom, had different executive bodies to the ECSC. In place of the ECSC's Council of Ministers was the Council of the European Economic Community, and in place of
the High Authority was the Commission of the European Communities.
There was greater difference between these than name: the French government of the day had grown suspicious of the supranational power of the
High Authority and sought to curb its powers in favour of the intergovernmental style Council. Hence the Council had a greater executive role in
the running of the EEC than was the situation in the ECSC. By virtue of the Merger Treaty in 1967, the executives of the ECSC and Euratom were
merged with that of the EEC, creating a single institutional structure governing the three separate Communities. From here on, the term European
Communities were used for the institutions (for example, from Commission of the European Economic Community to the Commission of the
European Communities).[24][25][26]

Council
The High Authority had more
The Council of the European Communities was a body holding legislative and executive powers and was thus the main decision making body of
executive powers than the
the Community. Its Presidency rotated between the member states every six months and it is related to the European Council, which was an
Commission which replaced it
[27]
informal gathering of national leaders (started in 1961) on the same basis as the Council.

The Council was composed of one national minister from each member state. However the Council met in various forms depending upon the
topic. For example, if agriculture was being discussed, the Council would be composed of each national minister for agriculture. They represented their
governments and were accountable to their national political systems. Votes were taken either by majority (with votes allocated according to population) or
unanimity. In these various forms they share some legislative and budgetary power of the Parliament.[27] Since the 1960s the Council also began to meet
informally at the level of national leaders; theseEuropean summits followed the same presidency system and secretariat as the Council but was not a formal
formation of it.

Commission
The Commission of the European Communities was the executive arm of the community, drafting Community law, dealing with the day to running of the
Community and upholding the treaties. It was designed to be independent, representing the Community interest, but was composed of national
representatives (two from each of the larger states, one from the smaller states). One of its members was the President, appointed by the Council, who
chaired the body and represented it.
President Jacques Delors
the last EEC Commission
President.
Parliament
Under the Community, the European Parliament (formerly the European Parliamentary Assembly) had an advisory role to the Council and
Commission. There were a number of Community legislative procedures, at first there was only the consultation procedure, which meant
Parliament had to be consulted, although it was often ignored. The Single European Act gave Parliament more power, with the assent procedure
giving it a right to veto proposals and thecooperation proceduregiving it equal power with the Council if the Council was not unanimous.

In 1970 and 1975, the Budgetary treaties gave Parliament power over the Community budget. The Parliament's members, up-until 1980 were
national MPs serving part-time in the Parliament. The Treaties of Rome had required elections to be held once the Council had decided on a voting
system, but this did not happen and elections were delayed until 1979 (see European Parliament election, 1979). After that, Parliament was elected
every five years. In the following 20 years, it gradually won co-decision powers with the Council over the adoption of legislation, the right to
The European Parliament held its
approve or reject the appointment of the Commission President and the Commission as a whole, and the right to approve or reject international
first elections in 1979, slowly gaining
agreements entered into by the Community. more influence over Community
decision making.

Court
The Court of Justice of the European Communities was the highest court of on matters of Community law and was composed of one judge per state with a president elected from among them. Its
role was to ensure that Community law was applied in the same way across all states and to settle legal disputes between institutions or states. It became a powerful institution as Community law
overrides national law.

Auditors
The fifth institution is the European Court of Auditors, which despite its name had no judicial powers like the Court of Justice. Instead, it ensured that taxpayer funds from the Community budget
have been correctly spent. The court provided an audit report for each financial year to the Council and Parliament and gives opinions and proposals on financial legislation and anti-fraud actions.
[28]
It is the only institution not mentioned in the original treaties, having been set up in 1975.

Policy areas
[16]
At the time of its abolition, the European Community pillar covered the following areas;

Asylum policy Economic and monetary union Immigration policy

Border control Education and Culture Research
Common Agricultural Policy Employment Schengen treaty
Common Fisheries Policy Environmental law Social policy
Competition EU Citizenship Trade policy
Consumer protection Healthcare Trans-European Networks
Customs Union and Single market

See also
Economy of the European Union
Brussels and the European Union
Delors Commission
European Commission
European Customs Information Portal (ECIP)
European Institutions in Strasbourg
 History of the European Communities (1958-1972)
History of the European Communities (1973-1993)
Location of European Union institutions
Snake in the tunnel

EU evolution timeline
Signed: 1947 1948 1951 1954 1957 1965 1975 1986 1985+90 1992 1997 2001 2007
In force: 1947 1948 1952 1955 1958 1967 1976 1987 1995 1993 1999 2003 2009
Document : Dunkirk Brussels Paris Modified Rome Merger Council Single Schengen Maastricht Amsterdam Nice Lisbon
Treaty Treaty Treaty Brussels Treaty & Treaty Agreement European Treaty & Treaty (TEU) Treaty Treaty Treaty
Treaty EURATOM on TREVI Act Convention
Content: (est. (founded (founded (protocol (founded (merging the (founded (amended: (founded (amended: (amended: (amended with (abolished
alliance) WU) ECSC) amending EEC and legislative & TREVI) EURATOM, Schengen) EURATOM, EURATOM, focus on the 3 pillars
WU to EURATOM) administrative ECSC, (implemented ECSC, and EEC ECSC, EC to institutional and WEU by
become bodies of the EEC)+ Schengen) to transform it also contain changes: amending:
WEU) 3 European (founded into EC) + Schengen, and EURATOM, EURATOM,
communities) EPC) (founded: TEU where ECSC, EC and EC=>TFEU,
JHA+CFSP) PJCC replaced TEU) and TEU)
JHA) (founded EU
as an overall
legal unit with
Charter of
Fundamental
Rights ,
and reformed
governance
structures &
decision
procedures)
Three pillars of the European Union:
European Communities
(with a single Commission & Council)
European Atomic Energy Community (EURATOM)
European Coal and Steel Community (ECSC) Treaty expired in 2002
European Economic Community (EEC) European Community (EC)
Schengen Rules
Terrorism, Radicalism, Extremism Justice and Police and Judicial Co-
and Violence Internationally Home Affairs operation in Criminal European
(TREVI) (JHA) Matters (PJCC) Union (EU)
European Political Common Foreign and Security Policy
Cooperation (EPC) (CFSP)
Franco- Western Union
British (WU) Western European Union (WEU)
alliance Treaty terminated in 2011

Notes and references

Notes
1. German reunification took place in 1990
2. And recognised regional languages:Aranese, Galician, Basque and Catalan

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21. Including East Germany: 80,274,200
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70703155822/http://europa.eu/institutions/inst/council/index_en.htm) . Europa (web
portal). Archived from the original (http://europa.eu/institutions/inst/council/index_e
n.htm) on 3 July 2007. Retrieved 25 June 2007.
28. "Institutions: Court of Auditors"(https://web.archive.org/web/20091222001147/htt
p://europa.eu/institutions/inst/auditors/index_en.htm) . Europa (web portal).
Archived from the original (http://europa.eu/institutions/inst/auditors/index_en.htm)
on 22 December 2009. Retrieved 25 June 2007.

Further reading
Acocella, Nicola (1992), ‘Trade and direct investment within the EC: The impact of strategic considerations’, in: Cantwell, John (ed.), M
‘ ultinational investment in modern
Europe’, E. Elgar, Cheltenham, ISBN 978-1-8527-8421-8.
Balassa, Bela (1962). The Theory of Economic Integration
Eichengreen, Barry (1992). "European Economic Community". In David R. Henderson (ed.). Concise Encyclopedia of Economics(1st ed.). Library of Economics and Liberty.
OCLC 317650570, 50016270, 163149563
Hallstein, Walter (1962). A New Path to Peaceful Union
Milward, Alan S. (1992).The European Rescue of the Nation-State
Monnet, Jean (1959). Prospect for a New Europe
Moravcsik, Andrew (1998).The Choice for Europe. Social Purpose and State Power from Messina to Maastricht
[1]
Ludlow, N. Piers (2006). The European Community and the Crises of the 1960s. Negotiating the Gaullist Challenge
[2]
Spaak, Paul-Henri (1971).The Continuing Battle: Memories of a European
Warlouzet, Laurent (2018).Governing Europe in a Globalizing World. Neoliberalism and its Alternatives following the 1973 Oil Crisis
[3]

External links
European Union website
Documents of the European Economic Community are consultable at theHistorical Archives of the EUin Florence
Treaty establishing the European Economic Communityon CVCE website
History of the Rome Treaties on CVCE website
Papers of J. Robert Schaetzel, ambassador to European Economic Community, 1966–1972, Dwight D. Eisenhower Presidential Library
European Customs Information Portal (ECIP)

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