The European Economic Community: 68 years of integration and cooperation
The European Economic Community (EEC) has come a long way since its inception in 1957. Established by the Treaty of Rome, the EEC aimed to create a common market among its six founding member states: Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands.
Over the past 68 years, the EEC has undergone significant transformations, expanded its membership, deepened integration, and navigated challenges.
The EEC's early years focused on establishing a common market characterised by the free movement of goods, services, and people. The community implemented various policies, including eliminating tariffs and quotas, to facilitate economic integration. This period also saw the establishment of key institutions, such as the European Commission, the European Council, and the European Parliament.
The EEC's membership expanded significantly over the years, with Denmark, Ireland, and the United Kingdom joining in 1973, followed by Greece in 1981, and Spain and Portugal in 1986. The community also deepened its integration through the introduction of the single market in 1993, which allowed for the free movement of goods, services, capital, and people.
In 1993, the EEC was rebranded as the European Union (EU) with the signing of the Maastricht Treaty. This marked a significant shift towards greater political and economic integration. The EU introduced a single currency, the euro, in 1999, which has been adopted by 19 member states.
The EU has also expanded its membership to include countries from Central and Eastern Europe, with the latest additions being Croatia in 2013 and the United Kingdom's departure in 2020.
Despite its successes, the EU has faced numerous challenges, including Brexit, in other words the United Kingdom's departure from the EU. This created uncertainty and posed significant economic and political challenges.
The Brexit referendum and transition phases had a substantial depressive effect on UK-EU trade, as there was a 10.5% decline in UK-EU trade. The transition phase had an even more pronounced impact, with a 15% decrease in UK-EU trade.
