European Union: Origins and Expansion 1950-2007
The European Union: Origins and Evolution
During the 20th century, two World Wars (1914-1918 and 1939-1945) occurred in less than 30 years, with Europe as their main stage. These wars left many European countries financially ruined, with long-lasting consequences for their populations. Many small European countries required American aid (the Marshall Plan) for reconstruction. Some European leaders recognized the necessity of uniting to compete with major superpowers (the U.S., USSR, and later Japan) and to overcome disputes between victors and vanquished, preventing another world war. The European Union was formed to compete with these superpowers.
The European Coal and Steel Community (ECSC, 1950) and the Western European Union (WEU, 1954), a European military alliance, were early steps. Over time, the Union has proven useful in advancing the comprehensive development of different nations. It has helped mitigate differences between the formerly underdeveloped agricultural Eastern Europe and the thriving, developed Western Europe, particularly after the fall of the Berlin Wall on November 9, 1989. This event allowed for the reunification of Germany and the integration of various Central and Eastern European countries into the Union.
Treaty of Rome: Birth of the EEC (1957)
On March 25, 1957, six countries (France, Germany, Italy, Belgium, the Netherlands, and Luxembourg) signed the Treaty of Rome. This treaty established the European Economic Community (EEC), known as the Common Market, and the European Atomic Energy Community (EURATOM). The Second World War had recently ended, and suspicions still lingered among countries. In response to the EEC, England and other countries formed the European Free Trade Association (EFTA, 1960).
In 1965, the ECSC, EURATOM, and the EEC merged. A historic agreement on the Customs Union came into effect in 1968, eliminating tariffs between member countries and adopting a common external tariff for products from third countries. By then, a Common Agricultural Policy (CAP) was in place to create a single market for agricultural products, along with a policy of financial solidarity through the European Agricultural Guidance and Guarantee Fund (EAGGF). Other key instruments include the Common Fisheries Policy (1976), the European Regional Development Fund (ERDF, 1975), and the European Central Bank (1998). A common policy on economic fluctuation bands reduced their currencies to 2.25%.
Expansions of the Union
- 1973: The Europe of Six became Nine with the accession of Denmark, Ireland, and the UK, after overcoming mistrust and disagreements with France. Norway did not join, as its citizens rejected membership in a referendum.
- 1981: Greece became the tenth member state.
- 1986: Spain and Portugal joined, creating the Europe of Twelve.
- 1995: Austria, Finland, and Sweden joined, forming the Europe of Fifteen.
- 2004: The accession process, started in 1998, culminated with Cyprus, Malta, Hungary, Poland, the Czech Republic, Slovakia, Slovenia, Estonia, Latvia, and Lithuania joining, creating the EU-25.
- 2007: Romania and Bulgaria joined, forming the current EU-27.
On January 1, 1999, the Euro was adopted as the official currency. On October 30, 2004, in the same room in the Roman Capitol where the Treaty of Rome was signed, leaders of all member states signed the first European Constitution. Europe Day is celebrated on May 9th, commemorating the 1950 speech by then-French Foreign Minister Robert Schuman.