The Treaty of Rome and the Birth of the European Economic Community (EEC): A Comprehensive Exploration
The Treaty of Rome and the Birth of the European Economic Community (EEC): A Comprehensive Exploration
Introduction
The Treaty of Rome, signed in 1957, marks a critical moment in European history. While the earlier European Coal and Steel Community (ECSC) was the first institutional step toward integration, the Treaty of Rome went further—it created the European Economic Community (EEC), a common market that laid the structural foundation for what would eventually become the European Union (EU). By establishing a customs union and aiming for the gradual integration of the economies of its member states, the EEC treaty was both a bold political statement and a visionary economic blueprint.
This essay provides a detailed discussion on the Treaty of Rome and the birth of the EEC. We will examine the historical background, political motivations, negotiating processes, treaty contents, institutional structure, initial implementation, achievements, criticisms, and long-term legacy of the Treaty of Rome and the EEC.
---
1. Historical Background and Context
1.1 The Post-War European Landscape
Europe in the 1940s and early 1950s was reeling from the devastating consequences of World War II. Economies were shattered, infrastructure destroyed, and the continent was politically fragmented. The rise of the Cold War added further pressure on Western European nations to cooperate economically and militarily to counterbalance the influence of the Soviet Union.
1.2 The European Coal and Steel Community (ECSC)
The ECSC, created by the Treaty of Paris in 1951, was a success in many ways. It brought together France, West Germany, Italy, Belgium, the Netherlands, and Luxembourg—the Six—for the joint management of coal and steel production. The ECSC was a prototype for supranational cooperation, showing that nations could pool sovereignty in strategic areas.
Yet, the ECSC was limited in scope. It addressed only two economic sectors and did not encompass wider economic integration. Leaders realized that to secure Europe’s economic recovery and political unity, a broader and more ambitious treaty was needed.
1.3 The Failure of the European Defence Community (EDC)
In 1954, the proposed European Defence Community, which would have created a joint European army, was rejected by the French Parliament. This rejection was a significant blow to political integration. However, it also reinforced the idea that economic integration could serve as a more acceptable, gradual path toward unity.
---
2. The Road to the Treaty of Rome
2.1 The Messina Conference (1955)
In June 1955, foreign ministers of the ECSC states met in Messina, Italy, to consider new forms of cooperation. The conference produced the Messina Declaration, which called for the creation of a common European market and the integration of atomic energy.
A working committee led by Belgian Foreign Minister Paul-Henri Spaak was tasked with exploring these ideas. The Spaak Report, delivered in 1956, laid the intellectual and policy groundwork for a new treaty.
2.2 The Intergovernmental Conference and Negotiations
Negotiations among the Six proceeded through the Intergovernmental Conference on the Common Market and Euratom, held in Brussels. There were intense debates on issues such as the role of supranational institutions, agricultural policy, competition rules, and trade liberalization.
Despite differing national interests—such as France’s emphasis on agriculture and Germany’s push for industrial trade—consensus was reached.
---
3. The Treaty of Rome: Signing and Structure
3.1 Signing and Ratification
The Treaty of Rome was signed on 25 March 1957 in the Capitoline Hill in Rome by the six ECSC members. It entered into force on 1 January 1958 after ratification by all six national parliaments.
There were actually two treaties:
1. Treaty Establishing the European Economic Community (EEC)
2. Treaty Establishing the European Atomic Energy Community (Euratom)
Together, they are known as the Treaties of Rome.
3.2 Key Objectives of the EEC Treaty
The EEC Treaty aimed to:
Establish a common market
Eliminate tariffs and quotas
Ensure the free movement of goods, services, capital, and people
Implement common policies in agriculture, transport, and competition
Promote economic and social cohesion
Harmonize social and labor policies
Create supranational institutions for governance
---
4. Institutional Framework of the EEC
4.1 The Commission
The Commission of the EEC was the executive body. It proposed legislation, enforced treaty provisions, and managed day-to-day operations. Commissioners were expected to act in the interest of the Community, not national governments.
4.2 The Council of Ministers
The Council represented member state governments and held legislative and decision-making powers. Depending on the issue, decisions required either unanimity or qualified majority.
4.3 The Parliamentary Assembly
This was a consultative body composed of members appointed by national parliaments. Though initially weak, it was the precursor to the European Parliament.
4.4 The Court of Justice
The European Court of Justice (ECJ) ensured uniform interpretation of the treaty and legal accountability. It could rule on disputes between institutions or member states.
---
5. The Common Market and Customs Union
5.1 Customs Union and Tariff Elimination
A central aim was to eliminate internal trade barriers. The treaty established a 12- to 15-year transition period for phasing out tariffs and quotas between member states. A Common External Tariff (CET) was also adopted for trade with non-member countries.
By 1968, the customs union was fully operational, ahead of schedule.
5.2 Free Movement of Factors of Production
The Treaty of Rome committed to:
Free movement of goods: No tariffs or restrictions
Free movement of people: Right to work and live in any member state
Free movement of services: Firms could operate across borders
Free movement of capital: Investment and currency exchange liberalized
These principles would take decades to fully implement, but the foundation was set.
---
6. Common Policies
6.1 Common Agricultural Policy (CAP)
France was particularly interested in protecting its agricultural sector. The EEC agreed to create the Common Agricultural Policy (CAP) to stabilize markets, ensure food security, and provide fair living standards for farmers.
CAP became one of the most complex and controversial EEC policies due to subsidies and budgetary costs.
6.2 Common Transport Policy
The EEC aimed to create a unified transport network, harmonizing regulations on railways, road traffic, and inland waterways. This policy was slow to develop due to national resistance.
6.3 Competition Policy
The Treaty established rules to prevent monopolies, cartels, and abuse of dominant positions. The Commission was tasked with enforcing fair competition.
---
7. Early Implementation and Progress
7.1 Economic Growth and Trade
The EEC’s formation coincided with the post-war economic boom known as the “Trente Glorieuses” (Thirty Glorious Years). Trade among member states surged, and industrial output rose.
Between 1958 and 1970:
Intra-EEC trade quadrupled
Real GDP growth averaged 4–5% annually
Employment and wages increased significantly
7.2 Enlargement Prospects
The EEC’s success attracted interest from other nations. The UK, Ireland, Denmark, and Norway applied in the early 1960s, though French President Charles de Gaulle vetoed UK entry twice.
---
8. Political and Economic Impact
8.1 Franco-German Axis
The EEC solidified the Franco-German partnership, turning former adversaries into collaborators. Their joint leadership would drive future integration.
8.2 Economic Integration
The EEC created an unprecedented level of economic integration among sovereign states. The customs union and growing policy harmonization encouraged investment, innovation, and mobility.
8.3 Institutional Precedent
The Treaty of Rome set a model for institutional design that would evolve into the European Union’s structure. It introduced legal principles such as direct effect and supremacy of EU law, later affirmed by the ECJ.
---
9. Criticisms and Challenges
9.1 Democratic Deficit
The EEC was often criticized for lacking democratic legitimacy. The Parliamentary Assembly was weak, and most decisions were made by appointed officials and national ministers.
9.2 Uneven Development
Benefits of integration were not evenly spread. Wealthier industrial regions advanced faster than poorer rural areas, creating economic disparities.
9.3 Agricultural Subsidies and CAP
CAP consumed a large portion of the budget and led to overproduction, inefficiency, and disputes. It was politically sensitive and difficult to reform.
9.4 External Trade Relations
The CET and EEC’s trade policies were sometimes seen as protectionist, especially by former colonies and developing countries. The EEC negotiated preferential agreements, but criticisms of “Fortress Europe” persisted.
---
10. Legacy and Transformation
10.1 Treaty of Maastricht and EU Formation
The EEC evolved over decades. The Treaty of Maastricht (1992) transformed the EEC into the European Union, with broader competencies including foreign policy, justice, and monetary union.
10.2 Euro and Economic and Monetary Union (EMU)
Building on the EEC’s economic integration, the EU introduced a single currency, the euro, adopted by many member states starting in 1999.
10.3 Expansion
From the original six, the EEC/European Union expanded to 27 members. The Treaty of Rome laid the groundwork for inclusive enlargement.
10.4 Deepening and Widening
The EEC’s framework enabled the EU to deepen cooperation in areas like the single market, environment, consumer protection, digital policy, and human rights.
---
Conclusion
The Treaty of Rome and the creation of the European Economic Community stand as monumental achievements in post-war diplomacy and institutional innovation. Born from a vision of peace, prosperity, and unity, the EEC catalyzed the transformation of a war-torn continent into a dynamic economic and political union.
By establishing a customs union, committing to the free movement of goods and people, and building robust institutions, the Treaty of Rome laid the cornerstone of European integration. Despite its flaws and criticisms, the EEC was a resounding success, both economically and symbolically. It inspired future generations of Europeans to pursue deeper cooperation and solidarity.
As Europe faces new challenges in the 21st century—from climate change to migration to global competition—the legacy of the Treaty of Rome reminds us of the power of unity, the potential of shared institutions, and the enduring value of peace through cooperation.
Comments