European Economic Community (EEC)

Definition

The European Economic Community (EEC) was an international organization established in 1957 to promote economic integration among its member states through a common market and customs union. The EEC aimed to foster economic cooperation, prevent conflict, and lay the groundwork for political unity in post-war Europe, ultimately evolving into the European Union (EU).

5 Must Know Facts For Your Next Test

1. The EEC was founded by six countries: Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany.
2. One of the key achievements of the EEC was the creation of a customs union, which eliminated tariffs on goods traded between member states.
3. The EEC facilitated economic growth and stability in Western Europe during the 1960s and 1970s, significantly contributing to post-war recovery efforts.
4. The EEC also laid the foundation for further political cooperation through initiatives like the Single European Act in 1986, which aimed to create a single market by 1992.
5. The EEC gradually expanded to include more countries and ultimately evolved into the European Union in 1993 with the signing of the Maastricht Treaty.

Review Questions

• How did the establishment of the EEC contribute to economic recovery in post-war Europe?
  • The establishment of the EEC played a significant role in the economic recovery of post-war Europe by promoting trade and cooperation among member states. By creating a customs union that eliminated tariffs and established a common market, countries could trade more freely, boosting their economies. This collaboration not only fostered growth but also helped to stabilize relationships between former adversaries, promoting peace and unity in a region recovering from war.
• Evaluate the impact of the EEC on European integration efforts compared to earlier attempts at cooperation.
  • The EEC marked a significant shift towards deeper integration compared to earlier efforts like the Organisation for European Economic Co-operation (OEEC). While the OEEC focused primarily on economic aid and reconstruction after World War II, the EEC aimed for more comprehensive economic integration through a common market and customs union. This new approach laid the groundwork for political collaboration and ultimately led to the formation of the European Union, demonstrating how economic ties can enhance broader political unity.
• Analyze how the evolution of the EEC into the European Union reflects broader changes in global politics and economics since its inception.
  • The evolution of the EEC into the European Union illustrates significant shifts in global politics and economics since its inception. Originally focused on economic cooperation among a few countries to prevent conflict after World War II, the EEC's transformation into the EU reflects increasing globalization and interdependence. The EU not only encompasses economic integration but also addresses political, social, and environmental issues on a larger scale. As Europe faced challenges such as migration, financial crises, and geopolitical tensions, this evolution highlights how regional organizations adapt to meet new realities while striving for unity and stability in an increasingly interconnected world.

Related terms

Treaty of Rome: The agreement signed in 1957 that established the EEC, laying out its goals and framework for economic integration among member states.

Common Market: An economic arrangement that allows for free movement of goods, services, capital, and labor among member countries, which was a fundamental aspect of the EEC.

European Union (EU): A political and economic union formed in 1993 that evolved from the EEC, aimed at deeper integration among European nations beyond just economic cooperation.