European Economic Community

Definition

The European Economic Community (EEC) was a regional organization established in 1957 to promote economic integration among its member states, primarily aiming to create a common market. The EEC played a crucial role in shaping post-war Europe, as it facilitated the removal of trade barriers and fostered economic cooperation, ultimately laying the groundwork for the modern European Union. Through its focus on economic collaboration, the EEC helped to reinforce political alliances and stability in a continent divided by ideological differences.

5 Must Know Facts For Your Next Test

1. The EEC was founded by six countries: Belgium, France, Germany, Italy, Luxembourg, and the Netherlands.
2. One of the EEC's main goals was to create a customs union, eliminating tariffs on goods traded between member states.
3. The EEC expanded its membership over time, eventually paving the way for greater European integration with the establishment of the European Union in 1993.
4. The EEC's establishment marked a significant shift towards economic collaboration in Europe after World War II, promoting peace and stability in a region previously ravaged by conflict.
5. The common policies initiated by the EEC influenced various sectors, including agriculture and regional development, affecting both member states and their economies.

Review Questions

• How did the establishment of the European Economic Community contribute to economic integration in post-war Europe?
  • The establishment of the European Economic Community (EEC) significantly contributed to economic integration in post-war Europe by promoting the removal of trade barriers and fostering cooperation among member states. By creating a common market, the EEC enabled free movement of goods and services, enhancing trade relationships and economic interdependence. This economic collaboration was crucial for rebuilding war-torn economies and laid the foundation for long-term political stability across the continent.
• Discuss how the EEC's creation impacted political alliances during the Cold War period.
  • The creation of the EEC had a profound impact on political alliances during the Cold War by strengthening ties among Western European nations in opposition to Soviet influence. The EEC fostered economic collaboration that transcended national boundaries, creating a platform for political unity against communism. As countries collaborated economically through the EEC, they also formed stronger political alliances that contributed to NATO's objectives and helped maintain stability in Western Europe amid rising tensions with Eastern Bloc countries.
• Evaluate how the principles established by the European Economic Community influenced the evolution of the European Union.
  • The principles established by the European Economic Community set a precedent for deeper integration among European nations that eventually led to the formation of the European Union (EU). The focus on economic cooperation within the EEC paved the way for broader agreements encompassing not just trade but also political collaboration and social policies. This evolution illustrates how initial economic partnerships can develop into comprehensive unions that address a wide range of issues, ultimately shaping modern Europe’s governance structure and enhancing collective decision-making processes.

Related terms

Common Market: A type of trade bloc that allows for the free movement of goods, services, capital, and labor among its member countries.

Treaty of Rome: The founding treaty of the EEC, signed in 1957, which established the community and set the framework for economic integration among its member states.

European Union:

A political and economic union formed in 1993 that expanded upon the principles of the EEC, incorporating wider aspects of cooperation beyond just economic matters.