European Economic Community (EEC)

Definition

The European Economic Community (EEC) was an international organization created by the Treaty of Rome in 1957, aiming to foster economic integration among its member states through the establishment of a common market and customs union. The EEC sought to promote free trade, economic cooperation, and economic development among its members, paving the way for deeper political and social integration in Europe. Its formation represented a significant step in the broader process of European integration that began with earlier initiatives like the European Coal and Steel Community (ECSC) and Euratom.

5 Must Know Facts For Your Next Test

1. The EEC was officially established on January 1, 1958, with six founding members: Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany.
2. One of the primary goals of the EEC was to eliminate tariffs and establish a common external tariff against non-member countries, facilitating increased trade among member states.
3. The EEC also aimed to create common policies in agriculture and transport, further strengthening economic ties between its members.
4. The success of the EEC led to its evolution into the European Union (EU) with the Maastricht Treaty in 1992, broadening its scope beyond just economic cooperation.
5. The EEC's formation marked a shift from post-war recovery efforts towards long-term economic collaboration in Europe, setting the stage for later integration initiatives.

Review Questions

• How did the EEC build upon earlier efforts like the ECSC and Euratom in promoting European integration?
  • The EEC expanded on earlier efforts such as the ECSC and Euratom by establishing a broader economic framework that included a common market and customs union. While the ECSC focused on coal and steel production and Euratom on nuclear energy cooperation, the EEC aimed to integrate a wider range of industries and services. This approach not only facilitated free trade among member states but also set a precedent for future political and social integration within Europe.
• Analyze how the Treaty of Rome laid the foundation for the EEC's objectives and operations.
  • The Treaty of Rome was crucial in establishing the EEC as it outlined specific objectives aimed at fostering economic cooperation through free trade, a customs union, and common policies. It created institutional frameworks such as the European Commission and Council of Ministers, which were essential for implementing these goals. The treaty's emphasis on reducing tariffs and establishing a common external tariff reinforced member states' commitment to collaboration, allowing them to collectively address economic challenges.
• Evaluate the long-term impacts of the EEC on European integration and its transformation into the European Union.
  • The long-term impacts of the EEC were profound as it not only established foundational principles for economic cooperation but also paved the way for political integration among European nations. The success of the EEC demonstrated that collaborative efforts could lead to increased stability and prosperity in post-war Europe. This experience led to further integration efforts, culminating in the creation of the EU with broader political dimensions beyond just economic cooperation. The evolution from EEC to EU reflects a growing desire among member states to address not only economic but also social and political issues collectively.

Related terms

Common Market: An economic arrangement that allows for the free movement of goods, services, capital, and labor among member countries, facilitating economic cooperation and reducing trade barriers.

Customs Union: A trade agreement among countries that allows for free trade between member countries while imposing a common external tariff on non-member countries.

Treaty of Rome: The foundational treaty that established the EEC and Euratom in 1957, marking a pivotal moment in European integration by setting out the objectives for economic cooperation among member states.