Legal Definitions - European Community

The European Community (EC) was the primary and most significant of the three "pillars" that formed the European Union (EU) from 1993 until 2009. Essentially, the European Community represented the economic and social integration aspects of what is now the European Union. It evolved from the European Economic Community (EEC), established in 1957, and focused on creating a single market, free movement of goods, services, capital, and people among member states, and common policies in areas like agriculture and competition.

When the Treaty of Maastricht established the European Union in 1993, it incorporated the European Community as its core pillar, alongside two new pillars focusing on common foreign and security policy, and justice and home affairs. The EC pillar was unique because its decisions were often made through a supranational process, meaning member states delegated some sovereignty to common institutions, and its laws were directly binding on member states. In 2009, with the Treaty of Lisbon, the European Community formally ceased to exist as a separate entity, and its functions and legal personality were fully absorbed into the broader European Union framework.

Here are some examples illustrating the European Community:

• Example 1: Cross-Border Trade Without Tariffs

  Imagine a Spanish company in the late 1980s wanting to export olive oil to Germany. Under the rules of the European Community, this company would not face tariffs (import taxes) or quotas (limits on quantity) when selling its products in Germany. This was a direct result of the EC's objective to create a single market, eliminating barriers to trade between member states. The EC's legal framework ensured that goods could move freely, fostering economic integration and competition across the participating nations.

• Example 2: Harmonized Product Standards

  Consider a manufacturer of children's toys in Italy in the early 1990s. Before the full integration of the EU, the European Community worked to establish common safety standards for products like toys across its member states. This meant that once a toy met the EC's harmonized safety requirements, it could be sold in any EC country without needing to comply with a different set of national rules in each individual market. This facilitated trade and ensured a consistent level of consumer protection throughout the Community, demonstrating the EC's role in regulatory alignment.

• Example 3: Competition Law Enforcement

  In the mid-1990s, the European Community's competition authorities might have investigated a suspected cartel among several major telecommunications companies operating across France, Belgium, and the Netherlands. The EC had the power to impose fines and demand changes in business practices if these companies were found to be illegally colluding to fix prices or divide markets. This enforcement action illustrates the EC's role in maintaining fair competition within its single market, preventing monopolies and ensuring a level playing field for businesses and consumers across member states.