Common Market

Common Market: The Foundation of the European Union

The Common Market, a term used to describe the early stages of the European Union (EU), refers to the economic integration of European nations that began with the establishment of the European Economic Community (EEC) in 1957. Created by the Treaty of Rome, the EEC aimed to foster economic cooperation and remove barriers to trade among its member states. Over time, the Common Market evolved into the European Union, becoming a powerful political and economic bloc with global influence.

Origins of the Common Market

1. The Treaty of Rome (1957):
   • Signed by six founding members: Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany.
   • Established the EEC to create a customs union, eliminate trade barriers, and promote economic integration.
2. Goals of the Common Market:
   • Economic Growth: Encourage free trade among member states to boost economic performance.
   • Peace and Stability: Foster cooperation to prevent conflicts in a region historically plagued by wars.
   • Political Unity: Lay the groundwork for deeper political integration in Europe.

Features of the Common Market

1. Customs Union:
   • Eliminated tariffs and quotas on goods traded between member states.
   • Established a common external tariff for trade with non-member countries.
2. Free Movement:
   • Allowed the free movement of goods, services, capital, and labor among member states, a principle later expanded under the EU.
3. Common Policies:
   • Implemented shared policies in areas such as agriculture (Common Agricultural Policy), trade, and competition.
4. Supranational Institutions:
   • Created bodies like the European Commission and the European Parliament to oversee and coordinate policies.

Evolution Into the European Union

1. Expansion of Membership:
   • The EEC grew from its original six members to include countries like the United Kingdom, Denmark, Greece, Spain, and Portugal by the 1980s.
2. Maastricht Treaty (1993):
   • Formed the European Union (EU), expanding the EEC’s scope to include political and social integration.
   • Introduced the concept of European citizenship and laid the groundwork for the euro currency.
3. Further Integration:
   • The EU deepened integration through treaties like Amsterdam (1997), Nice (2001), and Lisbon (2007), enhancing its decision-making processes and global influence.

Economic and Political Importance

1. Economic Impact:
   • The Common Market facilitated economic growth and trade, making Europe one of the world’s largest and most integrated economic regions.
   • The creation of the euro currency further streamlined commerce and investment.
2. Political Influence:
   • The EU became a key player in international diplomacy, trade negotiations, and global governance.
   • Promoted democratic values, human rights, and regional stability within and beyond Europe.

Challenges and Criticism

1. Economic Disparities:
   • Integration created uneven benefits, with wealthier nations often gaining more than poorer ones.
2. Sovereignty Concerns:
   • Critics argue that supranational decision-making undermines national sovereignty.
3. Brexit and Euroscepticism:
   • The United Kingdom’s exit from the EU highlighted tensions over the perceived loss of national control and disagreements over policies like immigration.

Conclusion

The Common Market was a transformative initiative that laid the foundation for the European Union. By promoting economic cooperation and integration, it fostered peace and prosperity in Europe and set a model for regional collaboration. Despite its challenges, the Common Market’s legacy endures as a cornerstone of modern European identity.

Related Entries

• European Economic Community
• European Union
• OECD
• Organization for European Economic Cooperation
• EU