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European Economic Community

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The European Economic Community, often called the EEC, was a regional organization built to foster economic integration. It was established by the Treaty of Rome on March 25, 1957. The main goal was to create a common market and a customs union. This allowed member states to work closely on trade and economic policy.

Expansion of the European Communities 1973-1992
Expansion of the European Communities 1973-1992

Over many decades, the EEC evolved into the European Community (EC) and eventually became part of the European Union (EU). Today, the institutions that once ran the EEC are part of the wider EU framework. This transition occurred formally through the Treaty of Lisbon in 2009.

The mechanism of the EEC relied on bringing different national economies under shared rules. The founding members included Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. These nations sought to create an internal market. By 1993, this internal market was complete. It allowed for the free movement of goods, capital, services, and people.

Luxembourg0080
Luxembourg0080

This process meant that barriers to trade between member countries were removed. In 1994, the European Economic Area (EEA) agreement further expanded this market. This agreement included 15 countries, mostly from the European Free Trade Association.

There were several distinct communities working together during the early years. The EEC worked alongside the European Coal and Steel Community (ECSC) and the European Atomic Energy Community (EURATOM). The ECSC had been created earlier in 1951 via the Treaty of Paris. It used supranationalism, which means shared authority, to help the economy and prevent war. The 1965 Merger Treaty eventually combined the institutions of these groups. From 1967 onward, they were collectively known as the European Communities.

De Gaulle-OWI
De Gaulle-OWI

The history of the EEC is a story of negotiation and changing ideas. After the ECSC, leaders like Jean Monnet looked for ways to integrate through economics rather than politics. Following the 1955 Messina Conference, Paul-Henri Spaak prepared a report on customs unions. His work, known as the Spaak Report, became a cornerstone for the Treaty of Rome. Early years saw significant milestones, such as setting common prices for agricultural products in 1962.

Bundesarchiv B 145 Bild-F023908-0002, Straßburg, Tagung des Europarates
Bundesarchiv B 145 Bild-F023908-0002, Straßburg, Tagung des Europarates

These steps helped move Europe toward a more united economic system.

However, the path to unity faced major political challenges and crises. French President Charles de Gaulle often opposed supranationalism. He feared that central institutions would challenge national sovereignty. In 1965, he triggered the "empty chair crisis" by withdrawing French representatives. This was a protest against new voting rules. Eventually, the 1966 Luxembourg compromise allowed members to use a veto on matters of national interest.

De Gaulle-OWI
De Gaulle-OWI

This agreement helped resolve the tension between shared power and national control.

Enlargement changed the scale and influence of the community over time. While some applications were blocked by vetoes, others succeeded through careful negotiation. Denmark, Ireland, and the United Kingdom joined on January 1, 1973.

Enlargement of the European Union 77
Enlargement of the European Union 77

Later, Greece joined in 1981 after restoring its democracy. Spain and Portugal followed in 1986. In 1979, the first direct elections for the European Parliament were held. This allowed the Parliament to become a much more active and full-time political body.

Bundesarchiv B 145 Bild-F023908-0002, Straßburg, Tagung des Europarates
Bundesarchiv B 145 Bild-F023908-0002, Straßburg, Tagung des Europarates

The EEC's legacy is tied to the modern European Union. In 1993, the Maastricht Treaty renamed the EEC to the European Community. This change reflected that the group now covered much more than just economic policy. It became one of the three pillars of the newly formed European Union.

Expansion of the European Communities 1973-1992
Expansion of the European Communities 1973-1992

The transition from a simple economic group to a complex political union changed how Europe functions. The EEC provided the foundation for the interconnected systems of trade and law seen in Europe today.

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