European Community (EC)

The European Community (EC) was a regional organization which aimed to bring about economic integration among its member states. Created by the Treaty of Rome in 1957, the EC was part of three pillars making up the European Union (EU), the others being the European Coal and Steel Community (ECSC) and the European Atomic Energy Community (Euratom). The EC provided an umbrella under which the member states could integrate their economies, set common standards, and establish uniform policies in various sectors such as trade, agriculture, and regional development. With the Treaty of Maastricht in 1993, the European Community became fully integrated into the European Union and was thereafter referred to as the European Community pillar of the EU.

Origins and Establishment

The origins of the European Community can be traced back to the aftermath of World War II, when there was a strong desire to ensure lasting peace and stability in Europe. The founding nations—France, West Germany, Italy, Belgium, Luxembourg, and the Netherlands—signed the Treaty of Rome on March 25, 1957. This treaty established two key institutions: the European Economic Community (EEC) and the European Atomic Energy Community (Euratom).

The primary objective of the EEC was to create a common market allowing for the free movement of goods, services, capital, and people among the member states. Euratom aimed to coordinate the member states’ nuclear energy policies for peaceful purposes. The ECSC, established earlier by the Treaty of Paris in 1951, was intended to oversee and regulate the coal and steel industries among its member states.

Key Institutions

The European Commission

The European Commission functions as the executive body of the EC, responsible for initiating legislation, implementing decisions, and upholding the EU treaties. It operates independently of member states and serves the interests of the entire community. Comprising one Commissioner from each member state, the Commission is led by a President.

The Council of the European Union

Also known as the Council of Ministers, this body represents the member states’ governments. It shares legislative powers with the European Parliament and plays a crucial role in coordinating broad economic policies, setting the EC’s budget, and defining foreign and security policy. The presidency of the Council rotates among member states every six months.

The European Parliament

Elected by citizens of the member states, the European Parliament represents the people of Europe. It has powers of legislative amendment, budgetary authority, and supervision over other EC institutions. Its members serve five-year terms.

The European Court of Justice

The judicial arm of the EC, the European Court of Justice, ensures that Community law is interpreted and applied consistently across member states. It resolves disputes between member states, institutions, businesses, and individuals.

Policies and Achievements

Economic Integration

One of the EC’s primary achievements was the creation of a customs union, which eliminated tariffs among member states and established a common external tariff against non-member countries. This facilitated increased trade and economic cooperation. In 1992, the Single European Act further enhanced the EC’s economic integration by aiming to establish a single internal market by December 31, 1992.

Common Agricultural Policy (CAP)

The CAP was designed to standardize agricultural policy across the member states, ensuring stable prices, sufficient food supplies, and a fair standard of living for farmers. It involved subsidy programs and mechanisms to control production to prevent market surpluses.

Cohesion Policy

The EC also sought to reduce economic disparities between richer and poorer regions through its cohesion policy. Financial instruments such as the European Regional Development Fund and the Social Fund were established to support infrastructure, job creation, and social inclusion.

Environmental Policy

From the late 1970s onward, the EC became increasingly involved in environmental protection, passing legislation on pollution control, waste management, and preserving biodiversity. The Single European Act of 1987 formally included environmental protection as a Community responsibility.

Foreign Trade and External Relations

The EC negotiated trade agreements and represented its members in international trade organizations such as the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO). Through a unified policy, the EC could leverage greater influence in global trade negotiations.

The Euro and Economic and Monetary Union (EMU)

One of the most ambitious initiatives of the EC was the creation of the Economic and Monetary Union (EMU) and the introduction of a single currency, the euro. The Maastricht Treaty set out the criteria for membership in the eurozone, including limits on inflation, debt, and deficits. The euro was officially launched on January 1, 1999, initially for electronic transactions, and then as cash in 2002.

Challenges and Criticisms

Democratic Deficit

Critics argued that the EC suffered from a “democratic deficit,” pointing out that key decisions were often made by unelected officials in the European Commission and that the European Parliament had limited powers compared to national parliaments.

Sovereignty Concerns

Some member states were concerned about the loss of national sovereignty as more policy areas were transferred to the EC. This often led to tensions between national governments and EC institutions.

Economic Inequality

Despite cohesion policies, significant economic disparities persisted between member states and regions. Critics contended that the benefits of economic integration were not evenly distributed.

Bureaucracy and Inefficiency

The EC was sometimes accused of being overly bureaucratic and inefficient, with complex decision-making processes and regulations that were difficult to enforce uniformly across diverse member states.

Transition to the European Union

The Treaty of Maastricht, signed in 1992 and effective from 1993, marked a significant transition by establishing the European Union (EU) and subsuming the European Community into it as the first pillar. The EU was built upon three pillars:

The European Communities (including the EC, ECSC, and Euratom).
Common Foreign and Security Policy (CFSP).
Police and Judicial Cooperation in Criminal Matters (PJCCM).

Under the Treaty of Lisbon in 2009, the pillar structure was abolished, and the EU’s legal personality was consolidated, bringing an end to the distinct existence of the European Community.

Conclusion

The European Community played a seminal role in the integration of Europe, laying the groundwork for the European Union. Through its policies on economic integration, agriculture, regional development, and beyond, the EC fostered closer ties among European nations and contributed to peace and stability in the region. While it faced challenges and criticisms, its legacy endures in the form of the EU, which continues to build on the foundational work of the EC in creating a more integrated and cohesive Europe.