European Economic Community

Definition

The European Economic Community (EEC) was a regional organization established in 1957 to promote economic integration and cooperation among its member states. It aimed to create a common market, enabling free movement of goods, services, capital, and labor, which would significantly shape the political and economic landscape of Europe in the post-World War II era.

5 Must Know Facts For Your Next Test

1. The EEC was established by six founding countries: Belgium, France, Germany, Italy, Luxembourg, and the Netherlands, marking a significant step towards European integration.
2. The primary goal of the EEC was to foster economic cooperation to prevent future conflicts in Europe by creating interdependence among nations.
3. The EEC's development contributed to the establishment of a customs union, eliminating tariffs on intra-community trade and implementing a common external tariff.
4. As the EEC expanded, it incorporated new member states, enhancing its influence and setting the stage for the eventual creation of the European Union.
5. The EEC played a key role in stimulating economic growth in Western Europe during the 1960s and 1970s, helping to stabilize post-war economies.

Review Questions

• How did the establishment of the European Economic Community influence political alignment in Europe after World War II?
  • The establishment of the European Economic Community significantly influenced political alignment by fostering closer ties among Western European nations. It created a platform for collaboration that transcended national interests and encouraged member states to work together economically. This cooperation not only aimed to enhance economic stability but also sought to prevent conflicts reminiscent of those that had led to two world wars, reshaping Europe’s political landscape into a more unified bloc against potential adversarial powers.
• Discuss the challenges faced by the European Economic Community during its early years and how these were addressed.
  • In its early years, the European Economic Community faced several challenges, including differing national interests among member states and economic disparities. To address these issues, the EEC implemented policies aimed at harmonizing regulations and reducing trade barriers. Additionally, the EEC sought to promote economic development in less prosperous regions through structural funds and investments. These strategies helped stabilize the community's growth and fostered a spirit of collaboration among member nations.
• Evaluate the impact of the European Economic Community on Cold War tensions and how it facilitated European integration amidst such challenges.
  • The European Economic Community played a crucial role in mitigating Cold War tensions by promoting economic cooperation as a means of strengthening Western Europe against Soviet influence. By fostering interdependence among member states through trade and economic policy coordination, the EEC created a buffer against external pressures. This process of integration not only solidified Western Europe's unity but also set a precedent for further collaborative efforts that would ultimately lead to the formation of the European Union, symbolizing a collective commitment to peace and stability during a time of geopolitical uncertainty.

Related terms

Common Market: A type of trade bloc that allows for free trade and the elimination of tariffs among member countries, facilitating economic cooperation and integration.

Treaty of Rome: The foundational treaty signed in 1957 that established the EEC, outlining its goals for economic integration among member states.

European Union: An economic and political union of European countries that evolved from the EEC, aiming for deeper integration beyond just economic cooperation.