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- <text id=93CT1933>
- <link 90TT1702>
- <link 89TT2439>
- <link 89TT2438>
- <link 89TT1744>
- <title>
- The European Economic Community:Profile And History
- </title>
- <history>
- Compact ALMANAC--World Organizations
- </history>
- <article>
- <source>CIA World Factbook</source>
- <hdr>
- The European Economic Community
- Profile and History
- </hdr>
- <body>
- <p>Background
- </p>
- <p>Headquarters: Brussels, Belgium.
- </p>
- <p>Established: As three distinct European communities: On
- April 18, 1951, (effective July 23, 1952), when the European Coal
- and Steel Community (ECSC) Treaty was signed in Paris, and on
- March 25, 1957, (effective January 1, 1958), when the treaties for
- the European Atomic Energy Community (EURATOM) and the European
- Economic Community (EEC) were signed in Rome. The ECSC was
- created to integrate coal and steel production, EURATOM to develop
- common uses of nuclear energy among member nations, and the EEC
- to merge separate national markets into a single market with
- common economic policies. The Single European Act, signed in
- February 1986, (effective July 1, 1987), amends these treaties by
- establishing specific provisions for completion of the single market
- by January 1, 1993, and for intensifying cooperation among member
- states in the areas of economic and monetary union, promotion of
- research and technological development, improvement of the
- environment, and social policy. The act also institutionalizes
- cooperation in the field of foreign policy.
- </p>
- <p>Purposes: To build foundations for peace through economic
- and political cooperation and to create a federation of Europe.
- </p>
- <p>Members: The Six--Belgium, Germany, France, Italy,
- Luxembourg, Netherlands. The Nine--in 1973, Denmark, Ireland, and
- the United Kingdom joined the Six. The Ten--in 1981, Greece joined
- the Nine. The Twelve--Spain and Portugal joined the Ten on January
- 1, 1986. In 1990, the Laender (states) of the former German
- Democratic Republic entered the Community as part of a unified
- Germany.
- </p>
- <p>Official Languages: Danish, Dutch, English, French, German,
- Greek, Italian, Portuguese, and Spanish.
- </p>
- <p>Population (1990): 345 million.
- </p>
- <p>Gross Domestic Product (GDP) (1990): $6 trillion.
- </p>
- <p>Average Per Capita GDP (1990): $17,400.
- </p>
- <p>Organization
- </p>
- <p>Principal Organs: Council of Ministers, Commission,
- Parliament, Court of Justice.
- </p>
- <p>Principal Areas of Community Responsibility: Internal and
- external trade, agriculture, monetary coordination, common trade
- and commercial policies, development assistance, science and
- research, the environment, common social policies, European
- political cooperation.
- </p>
- <p>Budget (1992): $86 billion, financed by customs duties and
- agricultural levies, a 1.4% value-added tax collected on the goods
- and services consumed in member countries, and a percentage
- contribution based on each country's gross domestic product.
- </p>
- <p>TradeImports (1991): From non-EC countries-- $812
- billion. From US--$103 billion (24% of US exports).Exports (1991):
- To non-EC countries--$522 billion. To US--$86 billion (16% of EC
- external exports).
- </p>
- <p>EC and US Officials
- Commission President: Jacques Delors, France.US Representative to
- the EC: Ambassador James F. Dobbins, 40 Boulevard du Regent, B-
- 1000, Brussels, Belgium; Tel. 32-2-513-4450.EC Representative to
- the US: Ambassador Andreas Van Agt, 2100 M St., NW, Suite 707,
- Washington, DC 20037; Tel. 202-862-9500.
- </p>
- <p>History
- </p>
- <p>History
- Peaceful union of European countries had been a dream for centuries,
- but not until the period following World War II did the process of
- economic and political integration begin. After the economic chaos
- of the war, governments sought ways to rebuild their economies and
- avoid future conflict. The Brussels Pact of 1948 created the first
- post-war European intergovernmental organization. The United
- Kingdom, France, Belgium, Netherlands, and Luxembourg agreed to
- establish a common defense system and to consult on economic and
- cultural matters. Since governments remained reluctant to cede
- authority to a supranational body, the organization was based on
- cooperation rather than on formal integration. The military aspects
- of the pact were soon overshadowed by the creation in 1949 of the
- North Atlantic Treaty Organization (NATO), an expanded military
- alliance including the United States and Canada. In the political
- sphere, the Council of Europe--organized the same year by the five
- members of the Brussels Pact with Ire-land, Denmark, Norway, Italy,
- and Sweden--had as its goal greater European unity and the
- protection of human rights. However, all decisions were made by
- unanimous agreement, which weakened the Council.
- </p>
- <p>In May 1950, French Foreign Minister Robert Schuman proposed that
- French and German coal and steel production be managed by a
- common authority within an institution open to other European
- countries. Ratified by the Governments of France, the Federal
- Republic of Germany, Italy, Belgium, Netherlands, and Luxembourg
- (the Six), the European Coal and Steel Community began functioning
- in 1952. It was the first international organization with an
- integrated federal governing body, the ECSC High Authority.
- Members of the High Authority were independent of national
- governments, and decisions were binding on member states. A long-
- term objective of both Schuman and ECSC President Jean Monnet was
- to establish a structure for the eventual political unification of
- Europe through economic integration.
- </p>
- <p>With Europe's immediate defense problem met by NATO, efforts were
- concentrated on economic questions. Under the direction of Belgian
- Foreign Minister Paul Henri Spaak, the foreign ministers of the Six
- met to discuss proposals for an integrated economic system and a
- common structure for the development of nuclear energy. In 1957,
- the Six agreed to establish the European Economic Community (the
- EEC or Common Market) and the European Atomic Energy Community
- (EURATOM). The two treaties formally establishing the new
- communities to work with the ECSC were signed by the Six in Rome
- on March 25, 1957. The EEC and EURATOM began operating on January
- 1, 1958. The wide-reaching EEC was given less supranational
- authority than the ECSC, although economic union was viewed as a
- prerequisite for eventual political integration.
- </p>
- <p>In 1973, the United Kingdom, Denmark, and Ireland were admitted,
- creating the EC Nine. The Government of Norway also had agreed to
- accession, but membership was rejected in a referendum. Greece
- joined the Community in 1981, and Spain and Portugal became
- members in 1986, creating the EC Twelve. In 1990, the five states
- of the former German Democratic Republic entered the Community as
- part of a united Germany.
- </p>
- <p>The primary aim of the Paris and Rome treaties establishing the
- European Communities was to remove the economic barriers that
- divided the member countries as the first steps toward political
- unity. To accomplish this, the treaties called for members to
- establish a common market, a common customs tariff, and common
- economic, agricultural, transport, and nuclear policies. The
- institutions and policies established by the treaties provided a
- framework within which the 12 EC members agreed to integrate
- their economies and eventually consider forming a political union.
- </p>
- <p>Source: U.S. Department of State, Bureau of Public Affairs,
- April 1993.
- </p>
- </body>
- </article>
- </text>
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