Legal Definitions - European Economic Community

The European Economic Community (EEC) was an international organization established in 1957 by the Treaty of Rome. Its primary objective was to foster economic integration among its member states by creating a common market. This common market aimed to ensure the free movement of goods, services, capital, and people across national borders within the community, effectively removing tariffs and other trade barriers. The EEC was a foundational precursor to the modern European Union (EU), evolving into the European Community (EC) in 1993 and subsequently forming the core of the EU.

Here are some examples illustrating the impact and purpose of the European Economic Community:

• Example 1: Free Movement of Goods

  Imagine a textile manufacturer based in Italy in the 1970s. Before the EEC, exporting their fabrics to France might have involved significant tariffs, complex customs declarations, and varying national product standards, making cross-border trade cumbersome and expensive. Under the EEC's common market principles, these tariffs were progressively eliminated, and efforts were made to harmonize product standards. This meant the Italian manufacturer could sell their textiles in France with much greater ease and at a more competitive price, almost as if they were selling within Italy itself.

  This example demonstrates how the EEC aimed to boost trade and economic growth by removing barriers to the free movement of goods between member states, creating a larger, more integrated market for businesses.

• Example 2: Free Movement of Workers

  Consider a skilled engineer from the Netherlands in the 1980s who wished to pursue a job opportunity at a growing technology company in West Germany. Prior to the EEC's establishment and its commitment to the free movement of persons, this engineer would likely have faced significant bureaucratic hurdles, including the need for work permits and potentially complex immigration procedures. However, as a citizen of an EEC member state, the engineer could generally move to West Germany, seek employment, and take up residence without needing a special work visa, enjoying similar rights to German citizens in the labor market.

  This illustrates the EEC's principle of allowing citizens of member countries to live and work freely across the community, enabling a more flexible labor market and promoting cultural exchange.

• Example 3: Common Agricultural Policy (CAP)

  In the 1960s, farmers across countries like France, Germany, and Belgium faced different national agricultural policies, subsidies, and market prices, leading to inconsistencies and potential disadvantages. The EEC established the Common Agricultural Policy (CAP) to create a unified agricultural market. This meant that the price of wheat, for instance, would be broadly similar across member states, supported by common subsidies and market interventions. A French dairy farmer would operate under the same overarching policy framework as a German dairy farmer, ensuring stable food supplies and fair incomes for farmers across the community.

  This example highlights how the EEC went beyond merely removing trade barriers to implement common policies that integrated specific economic sectors, aiming for stability and shared prosperity across its member states.