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Currently the European Community comprises of 15 nations - Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden and United Kingdom. Historical Development of EC: The genesis of the idea of European Community can be traced back to the post second world war years when after the great hole cost, the European nations felt concerned about their shattered economies and collective security. Leading European statesmen expressed it openly that a United Europe was the only way for tackling the economic and defense problems of the European nations. Sir Winston Churchill the British Prime Minister on March 5, 1946 suggested that the safety of the world requires a new unity in Europe from which no nation should be permanently outcast. Surely we should work with a conscious purpose for a grand unification of Europe within the structure of the United Nations. Later on Chancellor Adenauer of West Germany too pointed out that economic unity offered the most solid and resistant basis of political unity. The emergence of Soviet Union as a super power and the mounting danger of territorial expansion of USSR threatened the European democracies. It was under these circumstances that George Marshall, Secretary of State of US in June 1947 propounded the Marshall plan which aimed at saving western Europe from the growing influence of communism, by giving economic assistance to European States. Through Marshall Plan USA channelised billions of dollars to the nations of Europe to revitalize their economy. The European Coal Steel Community (Schuman Plan): French Foreign Minister Robert Schuman, in May 1950 proposed a European Coal and Steel Community (ECSC). The main purpose of Schuman Plan was to create a single market for coal and steel for all European nations who were willing to join it. As a result of long negotiations the six countries namely Belgium, France, Italy, Luxembourg, Netherlands and West Germany on April 18, 1951, signed convention, which was ratified in 1952. The ESCS went into operation in 1953. It consisted of a High Authority (assisted by a consultative committee), a Common Assembly, a special council and a court of justice. The High Authority consisting of nine members could take decisions, make recommendations, make levies on enterprises, control production, impose fine and regulate investment. The consultative committee attached to the High Authority consisted of 30 to 51 members. It advised the High Authority when it was called upon to do so. The Parliamentary Assembly comprised of 78 representatives of which Germany, France and Italy contributed 18 each, Belgium and Netherlands sent 10 each and Luxembourg sent four. The assembly worked under a president and considered reports submitted by High Authority. The council consisted of six representatives one each from the member states. The council held regular meetings and fixed salaries and allowances of the officials of ECSC. The court comprised of seven judges appointed for six years. The court was authorised to assess damages against the community. European Common Market (ECN): The experiment of European Coal and Steel Community (ECSC) proved successful and its success convinced the six member states that the base of their economic and political cooperation should be broadened further. Consequently the six nations in 1955 decided to form European Economic Community (EEC) and on March 25, 1957 signed treaties at Rome, which established European Economic Community (EEC) and European Atomic Energy Community (EURATOM). The ECSC was affiliated to the European Economic Community. The ECM aimed at the adoption of a common trade policy, abolition of tariff restrictions on imports and exports, allowing free movement of persons, goods and capital within ECM and creation of a European Investment Fund. Organs of ECM: The European Common Market functioned through the following four main bodies. (i) The Executive Commission: The Executive Commission consisted of nine members. It was the main administrative body of ECM. The commission negotiated tariff with non-member nations, preserved competition and implemented treaty regulations and general policies of the common market. In addition the commission was required to submit its policies and programs to the council of ministers. The commission discharged its main functions through various directorates. (ii) The Council of Ministers: The Council of Ministers consisted of six representatives one each from the member states. Each nation was allocated votes according to their economic position. France, Italy and West Germany had four votes each, Belgium and Netherlands had two votes each whereas Luxembourg had one vote. The Council of Ministers was the chief policy making body. It had the authority to accept or reject the budget of ECM. (iii) The Parliamentary Assembly: The assembly consisted of 142 members who were elected by and from the legislatures of the member states. To the 142 members assembly France, Germany and Italy contributed 18 each, Belgium and Holland 14 each and Luxembourg 6 members. It functioned as the Assembly of EEC, ECSC and EURATOM and in this respect was called the European Parliament. The assembly discussed the annual reports of the executive commission. (iv) The Court of Justice: The court of justice consisted of seven judges. Its main function was to interpret the treaties. It also mediated between the countries. All the member nations were bound to obey the decisions of the court. In addition to the above four main organs the ECM had the following other agencies and institutions: (3) The Overseas Territories Development Fund. (4) Three Consultative Committees (The Economic and Social Committee, The Monetary Committee, The Transport Committee) Entry of Great Britain into ECM: In spite of the success of the ECM Great Britain hesitated to join it. It was due to the reason that Britain feared that her entry into ECM would affect her trade relations with Commonwealth nations, adversely influence her foreign policy and change the position of her agriculture. Consequently instead of joining ECM Great Britain on May 3, 1960 created European Free Trade Association (EFTA), which included Iceland, Liechtenstein, Norway, Switzerland and Britain. The purpose of EFTA was to provide an alternative of ECM to Britain. However this mechanism did not produce the desired results and on July 31, 1961 Great Britain formally applied for the membership of ECM. Soon afterwards Denmark and Ireland also followed suit. Britain's application for entry became an issue of great controversy both within and outside the ECM. The smaller nations of Europe, which were already suspicious of intentions of France and West Germany, felt concerned about Britain's future role. United States was in favor of Britain's entry because she believed that the presence of Britain in ECM would check anti-liberal and anti-democratic forces in Europe. France and West Germany opposed Great Britain because they suspected her close relationship with the USA. President De Gaulle of France proved to be the greatest opponent of Britain's entry into ECM. He contended that as Britain had her own overseas commerce and trade therefore she must confine herself within the Commonwealth. France vetoed entry of Great Britain into ECM in 1963 and in 1967. De Gaulle's death in 1969 changed the situation in favor of Britain. At this stage three nations Denmark, Ireland and Britain applied for the membership of ECM. In March 1970 the Council of EC approved the entry of these countries into ECM. Later on the treaties of accession signed on January 22, 1972 in Brussels granted membership to Britain, Denmark and Ireland, thus raising the membership of ECM from six to nine. The inclusion of these three nations made the ECM the largest trading power of the world because their entry raised the population to 260 million, farming land to 95 million hectares and the GNP to 654000 million dollars. Later on Greece in 1981 and Spain and Portugal in 1986 joined the ECM. Thus the total number of the members of common market became twelve. The Maastricht Treaty (1991): The ECM went a step further in December 1991 when the heads of its twelve member states held a conference in Maastricht (Netherlands) and signed a treaty to forge a complete political and financial unity among European nations. They agreed to achieve unity like the United States of America by creating the European Political Union (EPU), Economic and Monetary Union (EMU) and European Commission (EC). Through EPU the signatories wanted to adopt a common defense and foreign policy. Similarly the EMU aimed at establishing a central bank and a joint currency by 1999. The European Commission was to be formed in order to harmonize sectors of health, education and agriculture. European Union (EU): After the Maastricht Treaty (1991) the ECM got transformed into European Union or European Community because its 12 members states were brought politically and financially closer through common fiscal policy; a common central bank, Common Agricultural Policy (CAP) and proposed single currency. Later the strength of European Union increased to 15 when Austria, Sweden and Finland too entered its fold as regular members. The European Union is the collective name of the EEC, the ECSC and EURATOM. In 1997 it consisted of the following 15 full members Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and United Kingdom. Norway was scheduled to join EU in 1995 but the people of Norway through a referendum held in November 1994 voted against the membership. The EU functions through the following main organs that previously belonged to ECM. Progress of EU after the Maastricht Treaty: Since the signing of the Maastricht Treaty in 1991 the European Union has come a long way in the spheres of European Monetary Union and the European political Union. The European Council and European Parliament have been instrumental, in bridging the gaps between the member states by adopting common foreign policies, laying foundations of common defense policy and sorting out the differences among members hindering the launching of a common single currency by 1999. The United Europe has emerged as a great political and economic power. Its GDP has surpassed the GDPs of USA and Japan. It enjoys the strength of about 40% of the entire trade of the world. Economic Monetary Union is the other cherished goal of the EU. Amidst unseen fears of losing sovereignty and haunted by peculiar apprehensions the European nations are progressing gradually but surely towards their target. In a nutshell: (http://www.ecd.org.cn/ecd-china/comm.htm) The European Commission, assisted by a European civil service, is the EU policy engine and manages most of the EU common policies. It proposes legislation, and ensures that the provisions of the EU treaties and the decisions of the institutions are properly implemented. It has investigative powers, and can take legal action against persons, companies, or member states that violate EU rules. It manages the budget and represents the Union in international trade negotiations.1 Bibliography: 1. Retrieved from the World Wide Web on August 01, 2001 http://www.ecd.org.cn/ecd-china/comm.htm Word Count: 1874
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