European Economic Community

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. It aimed to foster trade and economic cooperation among Western European nations, laying the groundwork for the future European Union. The EEC played a crucial role in rebuilding Europe after World War II by enhancing economic stability and facilitating migration as countries sought workers for their growing industries.

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.
2. One of the main goals of the EEC was to eliminate trade barriers among member countries, fostering an environment of economic growth and interdependence.
3. The EEC introduced common policies in agriculture, transport, and regional development to enhance cooperation and ensure equal competition among members.
4. The EEC's success in promoting economic stability led to increased migration within Europe as workers moved to regions with better job opportunities.
5. The EEC eventually paved the way for deeper political integration, culminating in the establishment of the European Union in 1993 with the Maastricht Treaty.

Review Questions

• How did the formation of the European Economic Community contribute to economic stability in post-war Europe?
  • The formation of the European Economic Community significantly contributed to economic stability in post-war Europe by creating a common market that encouraged trade among member states. By eliminating tariffs and reducing trade barriers, countries could freely exchange goods and services, which spurred economic growth and recovery after the devastation of World War II. The collaboration fostered by the EEC also helped stabilize currencies and created a framework for future economic cooperation across Europe.
• Discuss how the EEC influenced migration patterns within Europe in the decades following its establishment.
  • The EEC influenced migration patterns within Europe by fostering economic growth and creating job opportunities in member countries. As industries expanded due to increased trade and investment facilitated by the common market, there was a demand for labor. This demand encouraged workers from less economically developed regions to migrate to countries like Germany and France, where jobs were plentiful. Thus, the EEC not only stimulated economies but also shaped demographic trends across Europe.
• 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 on European integration are profound, as it laid the foundational structures that would eventually evolve into the European Union. The economic cooperation fostered by the EEC not only enhanced trade but also built trust among member states, paving the way for deeper political integration. The transition from the EEC to the EU marked a shift towards not just economic collaboration but also political unity, influencing policies on everything from immigration to environmental protection. This transformation has significantly shaped contemporary Europe’s political landscape and its approach to global issues.

Related terms

Common Market:

A type of trade bloc that allows for the free movement of goods, services, capital, and labor among member states, aiming to create a unified economic space.

Treaty of Rome:

The founding treaty of the EEC signed in 1957, which established the community and outlined its goals of economic integration and cooperation.

European Union:

An economic and political union of member states in Europe that evolved from the EEC, expanding its scope beyond economic collaboration to include political and social dimensions.