European common market

European Common Market was the informal name for the European Economic Community (EEC), established by the Treaty of Rome on March 25, 1957. Six founding nations signed the treaty: Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany. The agreement entered into force on January 1, 1958, creating an integrated economic zone that would evolve into today's European Union.

The Common Market represented a revolutionary approach to European integration. Rather than pursuing political unity directly, its architects chose economic cooperation as the path toward lasting peace.

Historical Background

World War II left Europe devastated. Political leaders sought mechanisms to prevent future conflicts, particularly between France and Germany. Jean Monnet, a French civil servant and diplomat, conceived the initial framework for European cooperation. Robert Schuman, French Foreign Minister, announced the plan publicly on May 9, 1950^[1].

The Schuman Declaration proposed integrating French and German coal and steel industries under a common authority. This led to the European Coal and Steel Community (ECSC), established by the Treaty of Paris in 1951. The ECSC proved successful enough to inspire broader economic integration.

In 1955, the Messina Conference revived integration efforts following setbacks on defense cooperation. Paul-Henri Spaak of Belgium led negotiations at the Val Duchesse conference center during 1956. These discussions produced the Treaty of Rome.

Founding Fathers

Several statesmen shaped the Common Market's creation:

• Jean Monnet (1888-1979) - First president of the ECSC High Authority. Founded the Action Committee for the United States of Europe in 1955.
• Robert Schuman (1886-1963) - French Foreign Minister who launched European integration with his 1950 declaration.
• Konrad Adenauer (1876-1967) - West German Chancellor who championed Franco-German reconciliation.
• Alcide De Gasperi (1881-1954) - Italian Prime Minister and advocate for European unity.

These leaders shared Christian Democratic political orientations and believed that economic ties would make war impossible among member states.

Key Features

The Treaty of Rome established several mechanisms^[2]:

Customs Union - Member states eliminated tariffs and quotas on trade with each other. A common external tariff applied to imports from non-member countries.

Four Freedoms - The treaty guaranteed free movement of:

• Goods
• Services
• Capital
• People (labor)

Common Policies - The Community developed shared approaches to agriculture, transportation, and competition.

Institutions - The treaty created the European Commission (executive body), Council of Ministers (legislative authority), European Parliament (advisory assembly), and Court of Justice (judicial body).

Evolution Over Time

The Common Market expanded through successive enlargements:

• 1973 - Denmark, Ireland, and United Kingdom joined
• 1981 - Greece acceded
• 1986 - Spain and Portugal became members

The Maastricht Treaty of 1992 transformed the European Community into the European Union. That treaty removed "economic" from the organization's name, signaling broader ambitions. The Treaty of Lisbon (2009) renamed the founding document the "Treaty on the Functioning of the European Union."

Economic Impact

Trade among member states increased dramatically after 1958. Industries restructured to serve continental rather than national markets. Investment flowed across borders as companies established operations in multiple countries.

The Common Market contributed to rapid economic growth during the 1960s. France and Germany experienced their "economic miracles" partly due to integration benefits. Living standards rose across Western Europe.

Agricultural Policy

The Common Agricultural Policy (CAP) became the most controversial Common Market program. Launched in 1962, CAP guaranteed farmers minimum prices for key products. The system created surpluses and consumed most of the Community budget. Reform efforts continued for decades.

CAP demonstrated both the promise and difficulties of common policies. Integrating different national approaches required compromise and produced outcomes that satisfied no one completely.

Legacy

The European Common Market proved that economic integration could succeed on a continental scale. It inspired similar arrangements worldwide, including ASEAN in Southeast Asia and Mercosur in South America.

The original six members now belong to a union of 27 nations (following British withdrawal in 2020). The single market remains the EU's most significant achievement, enabling economic activity across a zone of 450 million people.

{{{Concept}}} Primary topic {{{list1}}} Related topics {{{list2}}} Methods and techniques {{{list3}}}

References

• European Parliament (2024). Treaty of Rome
• EUR-Lex (2024). Treaty of Rome (EEC)
• Britannica (2024). Treaty of Rome
• CVCE (2024). Treaty establishing the European Economic Community

Footnotes

[1] May 9 is now celebrated as Europe Day in EU member states.
[2] Full implementation of the four freedoms took decades. The single market program of 1992 completed many remaining gaps.