9.2 The Treaty of Rome and the formation of the EEC

The Treaty of Rome in 1957 marked a pivotal moment in European integration. Six nations joined forces to create the European Economic Community, aiming to boost trade and cooperation. This laid the groundwork for a unified economic bloc.

The EEC introduced key concepts like the Common Market and Customs Union. It also established the "Four Freedoms" - free movement of goods, services, capital, and people. These principles shaped the future of European economic integration.

Establishment of the EEC

Treaty of Rome and EEC Formation

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• Treaty of Rome signed on March 25, 1957 by six founding members (France, West Germany, Italy, Netherlands, Belgium, Luxembourg)
• Created European Economic Community (EEC) aimed at economic integration and cooperation
• EEC officially established on January 1, 1958 marking the beginning of European integration
• Common Market concept introduced to facilitate trade and economic growth among member states
• Customs Union eliminated internal tariffs and established common external tariff for non-member countries
• Treaty set 12-year transition period for full implementation of Common Market provisions

Economic Integration Mechanisms

• Removal of trade barriers between member states promoted free movement of goods
• Harmonization of economic policies encouraged closer cooperation and coordination
• Common Agricultural Policy (CAP) established to support farmers and ensure food security
• European Social Fund created to improve employment opportunities and worker mobility
• European Investment Bank founded to provide loans for projects furthering European integration
• Euratom treaty signed alongside EEC treaty to promote peaceful use of nuclear energy

Core Principles

Four Freedoms as Foundational Pillars

• Free movement of goods allowed unrestricted trade across member state borders
• Free movement of services enabled companies to offer services in any member country
• Free movement of capital facilitated investment and financial transactions across borders
• Free movement of people granted EU citizens right to live and work in any member state
• Four Freedoms aimed to create a single, integrated European market
• Implementation of Four Freedoms required extensive legal and regulatory harmonization

Economic and Social Objectives

• Promotion of balanced and sustainable economic development across member states
• Raising standard of living and quality of life for European citizens
• Fostering closer relations between member states to build European unity
• Gradual convergence of economic policies to reduce disparities between regions
• Establishment of common commercial policy for trade with non-member countries
• Development of competition policy to ensure fair market practices within the EEC

Governing Institutions

Executive and Legislative Bodies

• European Commission served as executive body proposing and enforcing legislation
  • Composed of commissioners appointed by member states
  • Responsible for day-to-day operations of the EEC
• Council of Ministers acted as main decision-making body representing member state interests
  • Composed of government ministers from each member state
  • Held legislative power and coordinated economic policies
• European Parliament initially served advisory role with limited powers
  • Members initially appointed by national parliaments, later directly elected
  • Gradually gained more legislative and budgetary powers over time

Judicial and Advisory Institutions

• European Court of Justice ensured uniform interpretation and application of EEC law
  • Composed of judges appointed by member states
  • Issued binding rulings on disputes between member states, institutions, and individuals
• Economic and Social Committee established as advisory body representing civil society
  • Composed of representatives from various economic and social interest groups
  • Provided opinions on proposed legislation and policies
• Committee of Permanent Representatives (COREPER) prepared work for Council of Ministers
  • Composed of member state ambassadors to the EEC
  • Played crucial role in negotiations and decision-making processes