The European Economic Community (EEC): A Foundation for European Integration

The European Economic Community (EEC), often referred to as the European Common Market in English-speaking countries, was a pioneering regional organization established with the primary objective of fostering profound economic integration among its member states. Conceived in the aftermath of World War II, its creation stemmed from a desire to prevent future conflicts through economic interdependence and to promote prosperity across the continent. This ambitious endeavor officially came into being with the signing of the Treaty of Rome on March 25, 1957, by six founding nations.

Founding Principles and Initial Aims

The Treaty of Rome laid the groundwork for the EEC, initially focusing on two critical economic objectives: establishing a common market and forming a customs union. These foundational elements were designed to dismantle trade barriers and create a unified economic space among its six original members:

• Belgium
• France
• Italy
• Luxembourg
• The Netherlands
• West Germany (the Federal Republic of Germany)

A common market aimed to eliminate tariffs and quotas on goods traded between member states, while also removing obstacles to the free movement of capital, services, and people. The customs union went a step further, not only removing internal customs duties but also establishing a common external tariff for goods imported from outside the Community. This meant that all EEC member states would apply the same tariffs to goods from non-member countries, simplifying trade and strengthening the Community's collective bargaining power on the global stage.

Evolution of Institutions and the Single Market

Initially, the EEC existed alongside two other European communities: the European Coal and Steel Community (ECSC), established in 1951, and the European Atomic Energy Community (EURATOM), also formed in 1957. To streamline their administration, these three distinct organizations gained a common set of institutions, including the Commission, Council, Parliament, and Court of Justice, under the 1965 Merger Treaty, also known as the Treaty of Brussels. This consolidation marked a significant step towards greater integration.

A pivotal achievement for the EEC was the realization of a complete single market, formally known as the internal market, in 1993. This milestone was built upon the "four freedoms," ensuring:

• Free movement of goods: Products could be sold across borders without tariffs or national barriers.
• Free movement of capital: Funds could be invested and transferred freely between member states.
• Free movement of services: Businesses could offer services across borders without restriction.
• Free movement of people: Citizens could live, work, and study anywhere within the EEC territory.

This internal market was further formalized and expanded in 1994 through the Agreement on the European Economic Area (EEA). The EEA agreement extended the benefits of the single market to most member states of the European Free Trade Association (EFTA), specifically Iceland, Liechtenstein, and Norway (Switzerland opted not to join the EEA), creating a vast economic area encompassing 15 countries at that time, and significantly expanding economic cooperation beyond the EEC's direct membership.

From EEC to European Community (EC) and Absorption into the EU

The landscape of European integration dramatically shifted with the entry into force of the Maastricht Treaty (formally the Treaty on European Union) in November 1993. This transformative treaty marked the official birth of the European Union (EU) and introduced a new structure based on "three pillars":

1. The European Communities (encompassing the renamed EEC, ECSC, and EURATOM), handling economic, social, and environmental policies.
2. Common Foreign and Security Policy, coordinating external relations.
3. Justice and Home Affairs, addressing cooperation on crime and immigration.

Critically, the Maastricht Treaty renamed the European Economic Community to the European Community (EC). This change was more than symbolic; it reflected the fact that the organization's scope had expanded significantly beyond purely economic policy to include a wider range of political, social, and environmental issues. The EC, as the most prominent of the three European Communities, constituted the crucial "first pillar" of the newly formed European Union, providing its legal framework and supranational decision-making power in many areas.

The EC continued to exist in this form until its formal abolition by the Treaty of Lisbon, which came into effect on December 1, 2009. The Treaty of Lisbon streamlined the complex pillar structure of the EU and incorporated the institutions and legal personality of the European Community directly into the broader framework of the European Union. This strategic move meant that the European Union officially "replaced and succeeded the European Community," becoming a single, comprehensive legal entity. Consequently, the Union formally inherited all the rights, obligations, and institutions that previously belonged to the EC, cementing its position as the ultimate successor institution to the Community that began as the EEC.

Frequently Asked Questions About the EEC

What was the primary goal of the European Economic Community (EEC)?

The primary goal of the EEC was to achieve economic integration among its member states, specifically through the creation of a common market and a customs union, fostering peace and prosperity after World War II.

When was the EEC established and by what treaty?

The EEC was established on March 25, 1957, by the Treaty of Rome.

Who were the six founding members of the EEC?

The six founding members were Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany.

What is the difference between a "common market" and a "customs union"?

A common market eliminates internal trade barriers and allows for the free movement of goods, capital, services, and people. A customs union, in addition to these internal free trade principles, also establishes a common external tariff for goods imported from outside the union.

What were the "four freedoms" achieved by the single market?

The "four freedoms" were the free movement of goods, capital, services, and people within the EEC's internal market.

Why was the EEC renamed the European Community (EC)?

The EEC was renamed the European Community (EC) by the Maastricht Treaty in 1993 to reflect its expanded scope beyond purely economic policy, encompassing a wider range of social, environmental, and political issues within the newly formed European Union structure.

When did the European Community (EC) formally cease to exist?

The European Community (EC) formally ceased to exist on December 1, 2009, with the entry into force of the Treaty of Lisbon, which integrated its institutions directly into the broader European Union.

Is the European Union the direct successor to the European Economic Community?

Yes, the European Union is the direct and formal successor institution to the European Community (EC), which itself evolved from the European Economic Community (EEC). The Treaty of Lisbon explicitly stated that the EU would "replace and succeed the European Community."